The IJB Audit Committee is scheduled to meet on Wednesday 17 June 2026, with a key focus on reviewing the Aberdeenshire Health and Social Care Partnership's risk management activities and the progress of internal and external audits. The committee will also consider the unaudited annual accounts for the year ending 31 March 2026 and the external auditor's annual plan.

Aberdeenshire HSCP Risk & Assurance Group Update

The committee is set to receive an update on the work of the Aberdeenshire HSCP Risk & Assurance Group. This report will detail the current distribution of risks overseen by the group, progress made in reviewing and rationalising risk registers, and efforts to strengthen risk ownership and review scheduling. It will also outline remaining improvement actions and next steps. The Aberdeenshire Health and Social Care Partnership (HSCP) aims to maintain a standardised approach to managing financial, estate, and strategic risks within its risk registers. This report is provided in accordance with the Risk & Assurance Group's Terms of Reference, ensuring an effective interface with the Clinical and Adult Social Work Governance function. The number of risks has been reduced from 84 to 51 following a structured review. New risk registers have been created to align with the HSCP's leadership and management restructure. Work is also in progress to update guidance materials for staff on risk management and to map existing governance structures to the restructured leadership team. The group has maintained oversight of internal and external audit recommendations, with assurance provided that audit actions are progressing broadly in line with agreed timescales.

Internal Audit Update Report

An update on the progress of the Internal Audit plan will be presented to the committee. Internal Audit's primary role is to provide independent and objective assurance on the Integration Joint Board's (IJB) risk management, control, and governance processes. This involves a continuous rolling review and appraisal of internal controls, making recommendations for improvement where appropriate. The report will detail progress against the approved 2025/26 Internal Audit Plan and the follow-up of audit recommendations. The committee will be asked to comment on and agree the progress of the Internal Audit Plan and the progress made by management in implementing recommendations from Internal Audit reports.

Internal Audit Reports

The committee will review the outcomes of completed internal audits. Two reports are scheduled for discussion: Internal Audit Report 2626 – Care Home Governance, and Internal Audit Report 2621 – IJB Governance and Controls. The Care Home Governance report assessed the governance arrangements for care homes, with an overall net risk rating of 'Moderate' and a 'Reasonable' assurance assessment. Areas for enhancement identified include strategic planning, structure and risk management, and resource and performance management. The IJB Governance and Controls report also received a 'Moderate' net risk rating and 'Reasonable' assurance, highlighting areas for improvement in the governance framework, risk management, performance reporting, financial management and sustainability, budget monitoring, asset and resource management, and information governance.

Internal Audit Annual Report 2025/26

The committee will consider Internal Audit's Annual Report for 2025/26. This report provides a formal opinion on the adequacy and effectiveness of the Board's arrangements for governance, risk management, and internal control. The Chief Internal Auditor has confirmed organisational independence and no limitations to the scope of Internal Audit during the year. The report provides a narrative on key strategic and thematic findings from the assurance work undertaken, drawing out lessons learned, and an account of the assurance activities and resources of Internal Audit during the period. The overall opinion is that the IJB had an adequate and effective framework for governance, risk management and control for the year ended 31 March 2026, an improvement from the previous year.

External Audit - Annual Audit Plan 2025-26

The committee will discuss and note the External Annual Audit Plan for 2025-26. This plan is prepared in accordance with Audit Scotland's Code of Audit Practice and sets out the work required to support the auditor's opinions on the Integration Joint Board's financial statements and wider scope responsibilities. Significant risks identified include management override of controls and financial sustainability. The plan outlines the proposed audit procedures to address these risks.

IJB Annual Governance Statement 2025/26

The committee is asked to consider and approve the draft Annual Governance Statement for 2025/26. This statement describes the IJB's governance arrangements and assesses the effectiveness of its internal control system. It highlights significant governance issues and control challenges, actions taken, and key improvement activity, including financial recovery and longer-term financial planning. The statement concludes that governance arrangements are improving and provide a reasonable basis for future assurance, while recognising the need for continued delivery of financial recovery and stronger medium-term planning. The statement also takes account of the governance arrangements of partner bodies, NHS Grampian and Aberdeenshire Council.

IJB Unaudited Annual Accounts for the year to 31 March 2026

The committee will consider the unaudited Annual Accounts for the year to 31 March 2026. These accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom, International Financial Reporting Standards, and relevant statutory guidance. The accounts show total expenditure of £485.184 million against funding contributions and non-specific grant income of £496.919 million, resulting in a surplus on the provision of services of £11.735 million. The committee will be asked to agree that these unaudited accounts be submitted to the external auditor.

Update from Audit Scotland Publications

The committee will note findings from recent Audit Scotland publications, specifically the Integration Joint Boards Financial bulletin 2024/25 and Community health and social care: Performance 2025 . These reports highlight the critical financial position of IJBs, increasing cost pressures, and the need for realistic budget-setting and transparent reporting on savings. The performance report indicates rising demand, inconsistent performance information, and slow progress in shifting the balance of care. The committee is encouraged to use these national messages to inform its scrutiny of financial sustainability, performance, governance, and service redesign.