The Audit Committee of Dacorum Borough Council was scheduled to meet on 17 September 2025. The agenda included the external auditor's year end report, a summary internal controls assurance report, a treasury management outturn report, and a strategic risk review. Councillor Terry Douris, Chair of the Audit Committee, was expected to chair the meeting.

External Audit Year End Report

The committee was scheduled to review the External Audit Year End Report 202425 v2. The report, produced by KPMG, the council's external auditors, presents observations arising from the audit of the council's 2024-25 published accounts. According to the report pack, the Audit Committee holds responsibility for overseeing the financial reporting process for Dacorum Borough Council.

The report covers:

• Headline audit findings
• Areas of audit risk and audit approach
• Observations on the quality and timelines of information prepared by management
• Value for Money arrangements
• Independence and ethical considerations relating to the external auditor
• Details of fees charged by the external auditor
• Details of audit misstatements
• Auditing developments

The report also identifies areas of audit testing that were still outstanding at the time of writing.

KPMG were expected to attend the meeting to present the report.

The report pack stated that the published accounts are an essential means by which the council demonstrates its stewardship of resources and accounts for its financial performance.

The report included a draft of KPMG's Year End Report to the Audit Committee. The purpose of the report was to communicate matters that are significant to the responsibility of those charged with oversight of the financial reporting process, as required by ISAs (UK)¹, and other matters coming to KPMG's attention during their audit work that they consider might be of interest.

The draft report stated that the audit was not yet complete, and that matters communicated in the report may change pending signature of the audit report.

The draft report identified the following significant audit risks:

• Valuation of land and buildings
• Valuation of investment property
• Valuation of post retirement benefit obligations
• Management override of controls

For each of these risks, the report detailed KPMG's response and findings. For example, regarding the valuation of land and buildings, the report stated that KPMG had:

critically assessed the independence, objectivity and expertise of Wilks Head & Eve, the valuers used in developing the valuation of the Council's properties at 31 March 2025

The report also included a summary of key accounting estimates and management judgements. KPMG's view of management judgement was that the valuation of land and buildings, including council dwellings, was 'cautious neutral', and that testing was ongoing.

The report also summarised KPMG's value for money risk assessment. It stated that KPMG's responsibility was to assess whether there were any significant weaknesses in the council's arrangements to secure value for money. The risk assessment considered financial sustainability, governance, and improving economy, efficiency and effectiveness. The report stated that, based on procedures performed, KPMG had not identified a significant risk associated with financial sustainability.

The report included a number of appendices, including a confirmation of independence, a summary of audit misstatements, and a review of Local Government Pension Scheme assumptions.

Summary Internal Controls Assurance Report

The committee was also scheduled to discuss the Summary Internal Controls Assurance SICA Report. The purpose of the SICA report is to provide an overview of the effectiveness of the council's internal control environment.

Treasury Management Outturn Report

The Treasury Management Outturn Report 2024-25 for Audit Committee was also scheduled for discussion. Treasury management refers to the management of the council's investments and cash flows.

Q1 Strategic Risk Review

The committee was also scheduled to undertake a review of strategic risks. Strategic risks are those that could affect the council's ability to achieve its objectives.

Other items

The agenda also included:

• Apologies for absence
• Declarations of interest
• Confirmation of the minutes from the previous meeting
• Public participation