The Audit Committee of Aberdeenshire Council met on Wednesday 15 April 2026, addressing significant concerns regarding commercial and industrial lets, waste management, and the implementation of a new care management system. The committee also reviewed the council's financial sustainability in light of national pressures and the external auditor's annual plan.

Commercial and Industrial Lets Audit

The committee discussed a critical internal audit report on commercial and industrial lets, which identified significant control weaknesses and a limited assurance level. The audit highlighted issues with outdated procedures, missing documentation, and substantial failures in income recovery, including nearly £1 million in uncollected rent. Management acknowledged these findings, attributing some issues to staff vacancies and turnover, and outlined a plan for improvement over the next year. However, many councillors expressed a lack of assurance due to the recurring nature of these problems since a 2020 audit. Following extensive debate, the committee decided to refer the matter for further scrutiny to the Business Services Committee.

Waste Management Audit

An internal audit of waste management services found a moderate risk level and provided reasonable assurance over the council's approach. However, areas for enhancement were identified in the waste strategy, risk management, and stock management. The audit noted that the council's Waste Management Plan has been extended beyond its end date, risking a breach of legislative obligations. Management welcomed the findings and agreed to implement all recommendations to strengthen operations. The committee expressed assurance with the report.

Route Map 2030 and Beyond Audit

The committee reviewed the outcome of a scrutiny referral concerning the Route Map 2030 and Beyond audit. The Infrastructure Services Committee had previously concluded they were assured by the Stage 1 report and did not require a Stage 2 workshop. The Audit Committee acknowledged this decision and expressed assurance regarding the actions taken by the service.

Landscape Services Audit

An update was provided on the Stage 1 process for the internal audit report on Landscape Services. The Infrastructure Services Committee had previously expressed assurance and did not require a Stage 2 workshop. However, the Audit Committee noted that six out of twelve recommendations from the original audit remain open, with no recent updates from the service. Concerns were raised about the lack of communication and verification between the service and internal audit. After discussion, the committee agreed to defer a decision for one cycle to allow the service to liarense with internal audit and provide updated information in the standard audit format.

Care Management System Implementation

The committee reviewed the Stage 1 report on the implementation of the new Eclipse care management system. While all internal audit recommendations have been closed following improvements in governance and planning, the overall delivery risk remains high until key milestones are achieved. The project board, now comprising chief officers, has agreed to proceed with the Scottish Framework approach, focusing on core functionality. The committee expressed assurance regarding the progress and governance of the project, and therefore no Stage 2 workshop was deemed necessary.

Local Government in Scotland Financial Bulletin

The committee received a summary of Audit Scotland's Local Government in Scotland Financial Bulletin 2024/25 and its supplements, highlighting significant and structural financial pressures across local government. The bulletin reinforces the need for strong medium-term planning, clear savings delivery, and careful management of reserves and debt. Aberdeenshire Council's Medium-Term Financial Strategy reflects these challenges, with a projected cumulative financial gap of over £158 million by 2030/31. The committee noted the key messages and implications for the council's financial sustainability and the actions being taken to strengthen financial planning and reporting.

External Audit Annual Audit Plan 2025/26

The committee reviewed Grant Thornton's Annual Audit Plan for 2025/26. Key areas of focus for the audit include the valuation of land and buildings, pension liabilities, and management override of controls. Financial sustainability was identified as a significant wider-scope risk, aligning with the council's own medium-term financial strategy. The plan serves as a forward-looking assurance tool, highlighting areas for member scrutiny. The audit fee for 2025/26 was noted as £519,980, with an additional anticipated fee of £12,000 for the audit of charitable trusts.