The Audit Committee of Durham County Council was scheduled to meet on Thursday 31 July 2025 to discuss several key items, including the Bishop Auckland Towns Fund, the council's Internal Audit Strategy, and the Annual Governance Statement. The committee was also expected to review the council's 'going concern status' and the statement of accounts for the year ended 31 March 2025.

Here's a summary of the topics that were scheduled for discussion:

Bishop Auckland Towns Fund

The Audit Committee was scheduled to receive a presentation on the Bishop Auckland Towns Fund, Future High Street Fund, and The Auckland Project (TAP) from the Corporate Director of Regeneration, Economy and Growth.

The presentation was intended to provide context for why a referral had been made, give an overview of the Subsidy Control framework, and outline the implications going forward.

The report pack included a table showing an overview of town investment, including:

• Stronger Town Fund
• Future High Street Fund
• Heritage Action Zone
• Levelling Up
• Restoring Your Railways
• 11 Arches
• The Auckland Project

The presentation also included an explanation of the Subsidy Control Act 2022, which applies to awards of financial assistance from public resources by a public authority that confers an economic advantage on one or more enterprises, is specific, and has an effect on competition or investment within the United Kingdom, trade between the United Kingdom and a country or territory outside the United Kingdom, or investment as between the United Kingdom and a country or territory outside the United Kingdom.

The council proposed to award up to £28 million to The Auckland Project towards the costs of delivering five interlinked projects within Bishop Auckland. A sixth project, Binchester Roman Fort and Eco Farm, would not involve the award of public funding but appeared to be enabled by the funding of the Projects.

The five projects were:

• Upgrading Kingsway Car Park;
• Creating a new access road in the grounds of Auckland Palace, leading up to two car parks;
• Opening the Market Place Hotel;
• Developing an artist's hub at 43 Market Place; and
• Upgrading Durham Dales Gateway Car Park.

The presentation stated that the referral had been cleared 28 March 2025 and was viewed as one of the most positive reports that the CMA have issued so far .

Internal Audit Strategy 2025/26

The Audit Committee was scheduled to review and approve the Internal Audit Strategy 2025-2029. According to the report pack, the strategy had been prepared taking into consideration the new Global Internal Auditing Standards (GIAS) in the UK Public Sector, and the CIPFA's Code of Practice for the Governance of Internal Audit in UK Local Government, which came into effect on 1 April 2025.

The report pack stated that the Global Internal Audit Standards (GIAS) in the UK Public Sector includes a mandatory requirement for the Chief Internal Auditor and Corporate Fraud Manager to develop and implement a strategy for internal audit that supports the strategic objectives and success of the organisation.

The proposed strategy set out a vision:

To be a trusted advisor and support service to senior management, providing independent and objective assurance, insight and challenge that contributes to informed decision-making, improved governance and enhanced organisational performance.

The strategy outlined five strategic objectives:

• To adopt a more agile and enhanced risk-based approach to planning and delivery.
• To provide an ongoing and robust programme of core assurance.
• To offer and provide high-quality insight, foresight and advice.
• To embrace new ways of working across the internal audit team, embracing new systems and processes to deliver a quality service that focuses on the most strategic issues.
• Foster a broader learning culture across the internal audit team to develop staff knowledge and awareness, particularly of the professional standards, and encourage personal growth.

The report pack also included a SWOT analysis¹ of the Internal Audit Service.

Annual Governance Statement: Actions Update

The Audit Committee was scheduled to receive an update on the progress being made in relation to the actions arising from the Council's Annual Governance Statement (AGS) for the year ended 31 March 2024.

The report pack stated that the Accounts and Audit (England) Regulations 2015 require the Council to prepare an AGS, which must accompany the annual Statement of Accounts. The AGS demonstrates how the Council complies with the principles of good governance.

The review of effectiveness of the Councils arrangements for 2023/24 concluded that six actions should be included in the plan of improvements to strengthen governance arrangements during 2024/25.

The report pack included a table showing the six improvement actions and the progress against each action. According to the table, four of the six actions had been completed, with substantial progress made against the other two.

Consideration of 'Going Concern Status'

The Audit Committee was scheduled to consider the 'Going Concern Status' for the Statement of Accounts for the year ended 31 March 2025.

The report pack stated that as part of the annual publication of the draft statement of financial accounts, Durham County Council is required to assess its status as a 'going concern' organisation, and whether it remains appropriate for the council's annual accounts to be prepared on that basis.

The report detailed the reasons for recommending that the council be considered as a going concern, including:

• The financial position of the council remains relatively robust.
• As at 31 March 2025 the council held general reserves of £31.156 million and reserves earmarked for specific future purposes of £168.679 million.
• Net assets at 31 March 2025 amounted to £1.219 billion.
• The council has been able to set a balanced budget for 2025/26 and has a clear plan in place to continue to deliver local services up to 2028/29 via its medium-term financial plan (MTFP) approved in February 2025.
• The council has in the last 16 years has successfully delivered savings of around £288 million to address budgetary shortfalls and has access to multiple income streams to fund its operational activities and is developing further plans to make savings in future years based on any changes to financial assumptions; and
• There are no significant financial, operating or other risks that would jeopardise the council's continuing operation.

Draft Annual Governance Statement 2024-25

The Audit Committee was scheduled to consider the Draft Annual Governance Statement (AGS) for 2024/25.

The report pack stated that the Accounts and Audit (England) Regulations 2015 require the Council to prepare an AGS, which must accompany the Statement of Accounts. The AGS demonstrates the Council's compliance with the principles of good governance.

The review of effectiveness for 2024/25 concluded that the Council's corporate governance arrangements in place during the year were fit for purpose in accordance with the governance framework. The review also concluded that seven actions should be included in the plan of improvements to strengthen governance arrangements during 2025/26.

The seven actions were:

• Implement the Poverty Strategy and Action Plan.
• Review the organisational approach to information governance.
• Transform service delivery through a locality-based approach and a series of service reviews.
• Deliver the Milburngate Development redevelopment project in Durham City.
• Deliver Aykley Heads Strategic Innovation District in Collaboration with Durham University and in partnership with MUSE.
• Address areas for development identified in the Care Quality Commission (CQC) assessment of the Council's adult social care duties under the Care Act 2022.
• Address low referral rates for statutory support and increasing complexity in demand for children's mental health.

Statement of Accounts for the year ended 31 March 2025

The Audit Committee was scheduled to consider the draft Statement of Accounts for the year ended 31 March 2025.

The report pack stated that each year the council is required by law to produce a detailed Statement of Financial Accounts which provides information to all stakeholders and explains in detail, how the council uses its resources, the net value of the council and an indication of its overall financial health.

The unaudited Statement of Accounts for Durham County Council for the financial year ended 31 March 2025 was authorised by the Responsible Finance Officer on 27 June 2025 and published on the council's website the same day.

The report pack also noted that the financial position of the council remains healthy, with net assets at 31 March 2025 amounting to £1.219 billion.