The Governance and Audit Committee of South Holland Council is scheduled to meet on Thursday, 19 March 2026, to review the council's financial and governance arrangements. The meeting's agenda includes a discussion on the external audit plan, the council's accounting policies for the upcoming financial year, and an update on treasury management performance.

Indicative External Audit Plan and Strategy for the Year Ended 31 March 2026

The committee is scheduled to consider the Indicative External Audit Plan and Strategy for the year ending 31 March 2026. This report, provided by KPMG LLP¹, outlines the planned audit approach and scope for the upcoming financial year. It details the audit team, including Engagement Director James Boyle², and their approach to ensuring audit quality. The report also sets out materiality levels for the consolidated financial statements and identifies significant risks such as the valuation of land and buildings, management override of controls, and the valuation of post-retirement benefit obligations. The external auditors will also provide commentary on the council's arrangements for ensuring Value for Money³, covering financial sustainability, governance, and the economy, efficiency, and effectiveness of services.

Accounting Policies 2025/26

A review and agreement of the Accounting Policies for inclusion in the Financial Statements for 2025/26 is scheduled. This report, from Russell Stone⁴, Director of Finance (Section 151 Officer), explains that accounting policies are the specific principles, bases, conventions, rules, and practices applied by the council in preparing and presenting its financial statements. These policies are crucial for ensuring that the information presented is relevant and reliable, providing a true and fair view of the council's financial position. A significant change noted for 2025/26 relates to the valuation of property, plant, and equipment, where full annual revaluations will no longer be permitted under the Code of Practice on Local Authority Accounting⁵. Instead, the council will adopt a five-year rolling programme for revaluations, with annual indexation applied in the intervening years.

Q3 Treasury Report 2025/26

An update on Treasury Management performance and activity for the third quarter of 2025/26 is to be provided, aiming to ensure best practice is maintained. This report, from Russell Stone⁶ (Director of Finance/S151 Officer) and authored by Sean Howsam⁷, Treasury & Investments Manager (PSPSL)⁸, covers an economic update, interest rate forecasts, and a review of the Treasury Management Strategy Statement and Annual Investment Strategy. It will also detail the council's capital expenditure, prudential indicators⁹, investment portfolio, borrowing strategy, and compliance with treasury and prudential limits. The report highlights that treasury investments achieved an average rate of 4.611% for the year to date, with a favourable variance of £800,897 noted at Quarter 3 against the budget.

Quarter 3 Risk Report 2025/26

The committee will receive an update on the council's risk management as at the end of December 2025. This report, from John Medler¹⁰, Assistant Director – Governance, and authored by Corey Gooch¹¹, Business Intelligence and Change Manager, provides an overview of strategic, operational, partnership, fraud, and Housing Revenue Account (HRA)¹² risks. The report indicates that for South Holland's strategic risks, the Budget risk (SHDC14) and Local Government Reform (LGR) in Greater Lincolnshire (SHDC22) are currently rated as High (12 and 16 respectively) and are being Tolerated or managed within existing parameters. For the South and East Lincolnshire Councils Partnership (SELCP)¹³ risks, Funding (SELCP-07) and Staffing (SELCP-08) are rated as High (16 and 12 respectively) and are being Treated or managed.

Regulation of Investigatory Powers Act (RIPA) 2000 – Annual Update

An annual update on the Regulation of Investigatory Powers Act (RIPA) 2000 is scheduled. This report, from Christian Allen¹⁴, Assistant Director – Regulatory and Senior Responsible Officer (SRO) for RIPA, will advise members of any RIPA regulatory activity in the past 12 months. It will also outline any necessary work to ensure the partnership's arrangements remain compliant and provide assurance that legal obligations are effectively managed. The report notes that a nil return was submitted to the Investigatory Powers Commissioners Office (IPCO)¹⁵ for 2025, and the Partnership RIPA Policy, adopted in March 2024, remains up-to-date. A new Partnership Body Worn Video (BWV) Policy was also introduced last year, and plans are in place to develop a new Partnership CCTV Policy for non-public realm systems in 2026/27.

Internal Audit Annual Plan 2026/27

The committee is asked to consider and approve the annual plan of internal audit activity for 2026/27. This plan, from Claire Goodenough¹⁶, Head of Internal Audit for Lincolnshire County Council, is developed using various information sources and focuses on areas central to the council's evolving operating environment, including financial and governance arrangements, partnership alignment, and service transformation. Key audits planned include reviews of Risk Management training, Payroll controls, Waste Management change management, Procurement Act compliance, Savings accountability, GDPR compliance, HR Performance Management, Welland Homes¹⁷ governance, and follow-up reviews.

Internal Audit Progress Report – March 2026

A summary of internal audit activity as at March 2026 will be presented. This report, from the Head of Internal Audit – Lincolnshire County Council, provides a performance dashboard, analysis of live audit reviews, and details of completed reports. The report indicates that 81.55% of the 2025/26 audit plan is complete. Several audits have been finalised, including Identification and monitoring of savings, which received an Insufficient Controls rating, and ICT Cyber Security, which received an Adequate rating. The report also details overdue management actions, with 37 actions currently open, primarily rated as Medium risk.

Governance and Audit Committee Work Programme

The committee will review its Work Programme for 2025/26 and consider indicative items for 2026/27. This report, from Rhonda Booth¹⁸, Democratic Services Manager, and authored by Andrea Tait¹⁹, Democratic Services Officer, outlines the regular reports received by the committee, such as those from Internal and External Audit, and key finance items. It also includes ad-hoc items that may arise. The work programme aims to ensure the committee's activities remain relevant and up-to-date. An appendix details training undertaken by committee members since 2023 and suggests future training topics, including a discussion on the skills audit.