The Audit Committee of Durham County Council met on Friday 31 July 2026 to review the council's financial statements and governance. The meeting agenda included consideration of the council's 'going concern' status, the draft Statement of Accounts for the year ended 31 March 2026, and the draft Annual Governance Statement for 2025/2026. Attendees also received updates on the external audit progress and the annual corporate fraud report.

Consideration of 'Going Concern Status' for the Statement of Accounts

The committee was scheduled to consider the 'going concern' status of Durham County Council for the Statement of Accounts for the year ended 31 March 2026. A report from the Corporate Director of Resources was provided, detailing the council's financial performance assessment and its ability to continue as a going concern. The report highlighted the council's robust financial position, including significant general and earmarked reserves, and a balanced budget for 2026/27 with a clear medium-term financial plan. It also noted the absence of significant financial, operating, or other risks that would jeopardise the council's continuing operation. The report recommended that the Audit Committee endorse the council's status as a going concern and note that the Statement of Accounts has been prepared on this basis.

Draft Statement of Accounts for the year ended 31 March 2026

The committee was presented with the draft unaudited Statement of Financial Accounts for the year ended 31 March 2026. This statement provides information on how the council uses its resources, its net worth, and its overall financial health. The report indicated that the council's financial position remained healthy, with a net worth of £1.183 billion at 31 March 2026, a decrease of £35 million from the previous year. The statement also detailed movements in general and earmarked reserves, noting an increase in both. Separate financial statements for the Durham County Council Pension Fund Accounts were also included, showing an increase in net assets to £4.052 billion. The report recommended that members consider the draft Statement of Accounts and note the arrangements for public inspection and the external audit.

Draft Annual Governance Statement 2025/2026

A report from the Corporate Director of Resources was scheduled for discussion regarding the Draft Annual Governance Statement for 2025/2026. This statement, prepared in accordance with the CIPFA/SOLACE Framework, demonstrates the council's compliance with good governance principles and outlines areas for improvement. The review of effectiveness concluded that the council's corporate governance arrangements for 2025-26 were fit for purpose. The statement identified eight governance improvement actions for 2026-27, including four carried forward from previous years and four new actions. Progress against these actions was to be reported. The report recommended that the Audit Committee approve the Annual Governance Statement and note the identified improvement actions and progress made.

External Audit Progress Update Report 2025/2026

The committee was scheduled to receive a verbal update from the External Auditor regarding the progress of the 2025/2026 external audit. The update was expected to confirm whether the audit plan was on track for delivery and if there were any significant issues or concerns at that early stage. The external auditors were on track to report back to the Audit Committee on 30 November 2026.

Annual Corporate Fraud Progress Report 2025/2026

The committee was scheduled to receive the Annual Corporate Fraud Progress Report for 2025/2026. This report provides an overview of the Corporate Fraud Team's activity and performance, demonstrating the council's commitment to protecting public funds and maintaining strong governance. The report was expected to detail the estimated value of fraud, overpayments, and error identified or prevented, as well as the number of investigations, sanctions, and partnership activities undertaken. It was also anticipated to outline the team's priorities for the upcoming year.

The meeting also included standard agenda items such as apologies for absence, the minutes of the previous meeting, and declarations of interest. Part B of the agenda included a report on the Annual Corporate Fraud Progress Report 2025/2026, which was considered exempt from public discussion.

The meeting was scheduled to take place on Friday 31 July 2026, with the information status of PENDINGCOUNCILPUBLICATION. Therefore, this summary reflects what was scheduled to be discussed, not what was actually discussed or decided.