The Audit Committee of Durham County Council met on Friday 29 May 2026 to discuss a range of financial and governance matters. Key topics included the governance arrangements for the Aykley Heads development, the external auditor's strategy, and the progress of internal audits across various council services.

Aykley Heads Company Governance Arrangements

A presentation was scheduled to cover the governance arrangements for the Aykley Heads development. This included an overview of the joint venture structure, key contracts, decision-making processes within the joint venture, and the protections and levers in place for the council. The ambition for the Aykley Heads development was outlined, aiming to create a transformational development of national significance, supporting up to 4,000 knowledge-intensive jobs and enhancing Durham's innovation economy. Phase 1 of the development was planned to provide 50,000 sq ft of space for startups and growing companies, with collaboration facilitated by Durham University. The demolition of County Hall was also scheduled to facilitate Phase 2 development, with a timeline for decanting, asbestos surveys, and demolition works.

Audit Strategy Memorandum - Durham County Council

The committee was scheduled to receive the Audit Strategy Memorandum from the external auditor, Forvis Mazars LLP, for the year ending 31 March 2026. This document outlines the planned scope and timing of the audit, including significant and enhanced audit risks. Key risks identified included management override of controls and the valuation of land and buildings, with planned responses detailed for each. The memorandum also covered materiality levels, proposed audit fees, and confirmed the auditor's independence. The framework for Value for Money work was also presented, focusing on financial sustainability, governance, and improving economy, efficiency, and effectiveness.

Draft Audit Strategy Memorandum - Durham County Council Pension Fund

A draft Audit Strategy Memorandum for the Durham County Council Pension Fund for the year ending 31 March 2026 was also scheduled for discussion. This report detailed the planned audit scope and timing, highlighting significant and enhanced audit risks, including management override of controls and the valuation of investments within level 3 of the fair value hierarchy. The memorandum also outlined proposed audit fees and confirmed the auditor's independence.

Internal Audit Progress Report for the Period Ended March 2026

An update on the work undertaken by Internal Audit for the period 1 April 2025 to 31 March 2026 was presented. The report detailed performance against the Internal Audit Plan, including the status of audits, final reports issued, and progress on implementing audit recommendations. Amendments to the Internal Audit Plan were also noted, with various audits deferred or cancelled due to resource implications or changes in service priorities. The report also provided an overview of customer satisfaction survey responses and the number of overdue actions.

Internal Audit Strategy, Charter and Plan 2026/2027

The committee was asked to approve the Internal Audit Strategy 2026-2030, the Internal Audit Charter, and the Internal Audit Plan for the period 1 April 2026 to 31 March 2027. The strategy and charter have been updated to align with the Global Internal Auditing Standards (GIAS) in the UK Public Sector. The annual plan outlines the proposed audit work, including assurance activities, grant certifications, and reactive advice, with an estimated 4,010 days allocated for delivery.

Other items scheduled for discussion included:

• Minutes of previous meetings: The minutes of the meetings held on 27 February 2026 and 26 March 2026 were to be reviewed.
• Declarations of interest: Members were to declare any interests.
• Internal Audit Strategy, Charter and Plan Report 2026/2027: This report detailed the proposed Internal Audit Strategy, Charter, and Plan for the upcoming financial year.
• 2025-26 Changes to the Code of Practice for Local Authorities in the UK and agreement of Accounting Policies for inclusion in the Statement of Accounts: This report summarised key accounting changes and sought approval for the Council's accounting policies for the 2025/26 Statement of Financial Accounts.
• Corporate Governance Review and Final Accounts Timetable for the Year Ended 31 March 2026: This report provided information on the timetable for completing the Statement of Accounts and key dates for the corporate governance review.
• Counter Fraud and Corruption Strategy 2026-2030: This strategy aimed to inform and support the Audit Committee and the new administration regarding the Council's approach to counter fraud and corruption.
• Corporate Fraud Response Plan and Sanctions Policy: A revised Fraud Response Plan and Corporate Fraud Sanction Policy were presented.
• Anti Money Laundering Policy: This policy aimed to remind members and officers of internal procedures to prevent the use of council services for money laundering.
• Confidential Reporting Policy: This policy outlined how employees could confidentially express concerns.
• Exclusion of the Public: A resolution was scheduled to exclude the public from the meeting for specific items containing exempt or confidential information.
• Internal Audit Progress Report for the Period Ended December 2025: This report provided an update on the work undertaken by Internal Audit.

The meeting was scheduled to take place in Committee Room 2, County Hall, Durham.