The Audit and Standards Committee of Melton Borough Council met on Tuesday 22 September 2026 to review progress on internal and external audits, and to discuss risk management. Key discussions included the progress of audits into housing allocations, elections transactions, and information requests, as well as the ongoing external audit for the 2025/26 financial year. The committee also reviewed the council's strategic risk register, noting several high-priority risks related to financial stability, service delivery capacity, and the implications of Local Government Reorganisation (LGR).

Internal Audit Progress Report

The committee received an update on the delivery of the Internal Audit plan for 2026/27. Three audit reports had been finalised since the last meeting.

The audit of Housing Allocations and Homelessness found improvements in the Housing Options service, with personalised housing plans now being regularly produced. However, some administrative errors and gaps in supporting documentation were identified. Supervisory checks had been paused due to a vacant management post, and the audit recommended their reinstatement. An improved assurance opinion was given, with Good for the control environment, Moderate for compliance, and Low for organisational impact.

An audit of Elections Transactions provided assurance over key financial controls for council and parliamentary elections. No areas of weakness were identified, though a recommendation was made to ensure a robust audit trail for parliamentary and PCC election transactions by logging them on the council's finance system and reconciling them to the bank account. This recommendation has been agreed. The assurance opinions were Good for control environment, compliance, and organisational impact.

The audit of Information Requests found that controls and processes for handling Freedom of Information (FOI) and Environmental Information Regulation (EIR) requests were well-established, with good use of the new case management system. Recommendations were made to update procedural guidance, revise internal review letter templates to include information about the right to complain to the Information Commissioner's Office, and re-establish the Information Governance working group. These recommendations have been agreed. The assurance opinions were Good for control environment, compliance, and organisational impact.

The report also highlighted that 27 agreed management actions were overdue for implementation, with one High priority action outstanding for over three months. This relates to asset management and health and safety duties for tenanted properties. An update provided indicated that 80% of the documentation for health and safety duties is complete, and 50% of overdue surveys and inspections have been completed. The estimated completion time for all actions is six months.

External Audit Progress Report

The committee received a progress report on the external audit for 2025/26 from Grant Thornton. While the draft accounts were published by the statutory deadline, the Annual Governance Statement had to be re-published due to omissions. Delays in receiving draft accounts and sample evidence have impacted the audit timeline, pushing the expected completion into mid-November and the Audit Findings Report to the November committee meeting.

The audit approach has not changed significantly from the initial plan, with materiality set at £865,000. Significant risks identified include management override of control, valuation of property, and the gross pension liability. Work is ongoing in these areas, with testing in progress for management override of control and property valuations. The assessment of the gross pension liability is still to be completed.

Progress on the value for money audit is good, with work largely complete. The Auditor's Annual Report is expected by the end of November.

Risk Management Update

The committee reviewed the updated Strategic Risk Register, which identifies 14 significant risks: 6 high and 8 medium. Key risks highlighted include:

• PL4 Continuity of waste collection and street cleansing services: The likelihood of this risk has increased due to staff resourcing issues and contractor disputes, although drainage works are progressing.
• PR4 Private sector housing: The likelihood of this risk has been reduced, with an action plan nearing completion and new roles in place.
• SG8 Capacity to deliver the new Vision 36 and the Corporate Delivery Plan: The impact of this risk has been reduced, but the likelihood has increased due to the inevitability of original priorities not being met given the upcoming Local Government Reorganisation (LGR). The corporate strategy is being reviewed to focus on key priorities during the transition.

The report also noted that the council is facing challenges in recruiting to certain technical posts, such as legal, planning, and environmental health, which is impacting capacity to deliver services and projects. The council is also reviewing its ICT strategy and has plans to implement privilege access management and proactive threat management technologies.

The committee noted the report and the updated Strategic Risk Register.

Code of Corporate Governance

This item was withdrawn from the agenda and will be presented at the next meeting. The report will explain amendments to the Code of Corporate Governance, which has been updated in line with new guidance.