The Audit Committee of Hinckley and Bosworth Borough Council met on Wednesday 16 September 2026 to review internal audit reports, progress on the build-back plan, and the committee's self-assessment. Key discussions included findings from the planning enforcement internal audit, the progress of the external auditor's build back plan to address historical audit issues, and the committee's own self-assessment and training needs.

Enforcement Action - Planning 2025/2026 - Internal Audit Final Report

An internal audit report on planning enforcement activity concluded that the council has a moderate assurance opinion in place, with four medium-priority and two low-priority recommendations identified. While the report noted that enforcement complaints were acknowledged within target timescales and cases were generally investigated and progressed effectively, several areas for improvement were highlighted.

One key finding was that formal enforcement decisions were not consistently supported by documented enforcement reports or retained decision rationale. While officers could generally explain the basis for their decisions, the supporting records were not always retained in an accessible way after a case was closed. The report recommended implementing a mandatory requirement for documented enforcement reports for all formal actions and ensuring approval evidence is retained. The management response indicated agreement to provide brief reports in their legal template when taking enforcement action and to use a template checklist for cases closed with no action.

The council's Planning Enforcement Policy and Protocol were found to be significantly out of date, not fully reflecting current practices and responsibilities. For example, timescales for complainant updates and case closures differed between the protocol and current practice. The recommendation was to finalise and approve an updated Local Enforcement Plan and review the Planning Enforcement Policy to align with current practice. Management agreed to this, noting that a draft Enforcement Plan was being reviewed.

The report also identified that the Uniform case management system is not fully optimised for effective case management and performance reporting. Officers currently rely on manual workarounds due to reporting functionality limitations. Recommendations included creating a Uniform Improvement log, investigating reporting issues, and arranging training. Management agreed to this, suggesting integration with the Housing Team's work on Uniform and aiming to revise Corporate KPIs in the next financial year.

Performance reporting was found to be not supported by a documented Key Performance Indicator (KPI) methodology. This led to variances between reported performance and recalculations due to undocumented judgement and exclusions. The recommendation was to develop and document a KPI methodology, introduce a mechanism to record exceptions, and review the KPI suite in the Planning Enforcement Protocol. Management agreed with this recommendation.

Finally, there was a lack of a clearly documented and consolidated delegated authority framework for formal enforcement action. While approvals were operating in practice, the arrangements had evolved over time rather than being consolidated into a single, accessible framework. Recommendations included consolidating delegated authority letters, documenting the Planning Manager's delegated authority, and integrating these into guidance. Management agreed these suggestions would improve the team's function.

Internal Audit Progress Report - September 2026

Charles Black, from internal auditors Forvis Mazars, presented the progress against the council's internal audit plan for the year. The delivery of the plan was reported to be on track, with no concerns regarding completion by March 2027.

The draft report for the car parks review had been issued to management, and the electoral registration review's fieldwork was complete, with the report being drafted. Follow-up work on previous recommendations was also underway, with a final report to be presented at the next committee meeting. No changes had been made to the agreed audit plan since April.

Councillor Robin Flemming raised a question about horizon scanning for future audits, particularly in light of recent announcements regarding Local Government Reorganisation (LGR). Julie Kenny, the Section 151 Officer, confirmed that it was business as usual until any definitive statements were made, and that the audit committee would have the opportunity to flag risks when drafting next year's plan.

Internal Audit Annual Report 2025/2026

Charles Black also presented the annual report for 2025/2026, which provides the Head of Internal Audit's opinion for the year. The overall opinion was moderate assurance, with all completed reviews receiving either substantial or moderate assurance. No limited or unsatisfactory opinions were issued, and no higher priority recommendations were raised throughout the year.

The original internal audit plan comprised 112 days, which was revised to 80 days after it was agreed that the workforce capacity review and IT audit were not required, and the business continuity review was deferred. All 80 days were delivered.

The report highlighted that this was the first year in a three-year benchmarking period where no limited assurance opinions were issued, and the number of recommendations raised had reduced compared to previous years. However, it was cautioned that year-on-year comparisons should be exercised with caution due to the risk-based nature of internal audit, meaning different areas are audited each year. The overall assurance picture was described as positive, indicating a positive direction of travel for governance and the control environment.

Councillor Richard Allen noted the positive trend shown in the graphs on page 39 and suggested it would be interesting to have a couple more years of data for further comparison.

Build Back Plan - Year Ended 31 March 2026

Helen Parks and Andrew Ferguson from external auditors Azets presented the build back plan, which addresses the backlog of work required to rebuild assurance following previous disclaimed audit opinions. The plan outlines the approach to achieving an unmodified (clean) audit opinion by March 2028.

The estimated fees for the build-back process were detailed, with £73,023 incurred in 2024/25 and an estimated £136,710 for 2025/26. This additional cost is attributed to the extensive work required to address prior year issues. The auditors explained that the fees are profiled differently due to the need for senior staff to undertake significant planning and risk assessment work, especially for a disclaimed audit.

The council's finance team is expected to provide significant support, including ensuring sufficient resources, providing good quality information, and making key officers available. The auditors committed to providing clear details of the scope of work, expectations for evidence, and regular progress updates.

The auditors' risk assessment concluded that the council is at the lower end of the risk spectrum for build back assurance, meaning less extensive procedures over income and expenditure transactions will be required. The plan includes work on balance sheet/non-reserves and CIES/reserves testing.

A significant portion of the discussion focused on the fees and the true cost to the taxpayer. Concerns were raised about the lack of transparency in displaying the full cost, including additional resources taken on by the council. Ashley Wilson, Assistant Director Finance & Audit, confirmed that the additional resource requested had gone through the budget setting process and that a summary of historical costs and additional fees would be compiled for transparency.

Questions were also raised about the council's ability to choose its external auditors and whether fees could be reclaimed for services not provided. It was explained that the council is part of a national framework for public sector audit appointments, which is generally more cost-effective. While it is difficult to opt out of this framework, the council had previously expressed views on the appointment of external auditors. The auditors confirmed they are awaiting a response from Ernst & Young regarding disputed fees.

Audit Committee Self Assessment Action Plan Update September 2026

Ashley Wilson presented an update on the Audit Committee's self-assessment action plan. The revised self-assessment showed an improved position, with key actions for 2026/27 including identifying training needs, reporting minutes to full council, and separately considering the Annual Governance Report.

Areas identified for training included final accounts, the relationship between audit and scrutiny, LGR and the Audit Committee, and the link between the Ethical Governance & Personnel Committee and the Audit Committee's responsibilities. The committee agreed to proceed with the suggested approach for the next meeting, which would involve bringing training needs to the committee for appropriate arrangements.

Discussions also touched upon the timing of training, particularly in advance of the May elections, and the potential for a standalone meeting to focus on the action plan and training needs. It was agreed to try and arrange a dedicated session within the next eight weeks, potentially via Teams, with times from 6 pm onwards.

Concerns were raised about ensuring new committee members are brought up to speed quickly, and it was agreed that training for new members would be part of the induction program. The committee also discussed the need to track progress on the action plan more effectively, with a suggestion to include the date of reassessment for current scores.

Forward Plan

The forward plan for the Audit Committee was presented for noting. The December meeting agenda was updated to reflect that the Head of Internal Audit opinion had already been presented to the current committee.