The Audit and Standards Committee of Sheffield City Council met on 18 September 2025 to discuss internal audit reports, value for money risk assessments, standards complaints and the committee's work programme. The committee was also scheduled to discuss the role of the Audit and Standards Committee and training.

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

Value for Money Risk Assessment

The committee was scheduled to review the Value for Money Risk Assessment 2024/25, presented by external auditors KPMG. The assessment considered whether there were any significant weaknesses in the council's arrangements to secure value for money, and looked at financial management, risk management and partnership working arrangements.

KPMG's report identified significant risks in the following areas:

• Financial Sustainability: KPMG identified three significant risks associated with financial sustainability, relating to medium term budget pressures, pressures on adult social care budgets, and equal value claims.
  • Medium Term Budget Pressures: There were concerns that transformation of services and finances may not be happening quickly enough to address budget deficits. KPMG planned to review project schedules to ensure robustness and alignment with service delivery and financial sustainability. The Future Sheffield Programme, a council-wide transformation project, was mentioned as key to delivering both modernisation and financial sustainability.
  • Adult Social Care Budget Pressures: Budget monitoring during 2024-25 identified overspends due to a spike in demand. KPMG planned to discuss arrangements with the Director of Adult Care and Wellbeing Service, review action plans, and benchmark spending against comparable councils.
  • Equal Value Claims: There was a risk of significant financial impact from resolving equal pay claims, potentially affecting future investments. KPMG planned to discuss progress in reviewing job roles and understanding funding for settlements.
• Improving Economy, Efficiency and Effectiveness: Two significant risks were identified in this area, relating to an Area Special Educational Needs and Disability (SEND) inspection, and compliance with the Children's Act regarding Family Time.
  • Area SEND Inspection: A joint Care Quality Commission (CQC) / Ofsted inspection of the Sheffield Local Area Partnership found widespread failings in services for children and young people with special educational needs and/or disabilities (SEND). KPMG planned to discuss the service's response to the inspection findings with the Strategic Director of Children's Services, review the action plan, and document implementation.
  • Family Time: Internal audit identified a risk that the council was not compliant with Section 37 of the Children's Act 1989, which gives courts the power to direct local authorities to allow contact between a child and a parent or relative. KPMG planned to discuss the service's response with the Strategic Director of Children's Services and review any plans in place.

KPMG also followed up on a significant weakness and associated recommendation raised in 2023/24 relating to social housing provision, after the council received a Housing Regulator Judgement in June 2024.

KPMG's report stated that their work was an iterative process, and their inquiries would remain ongoing up until their final annual auditor's report.

Internal Audit Fraud Report

The committee was scheduled to discuss the Internal Audit Annual Fraud Report 2024/25. The report was intended to inform the committee of the outcomes of work undertaken by Internal Audit on fraud and corruption during 2024/25, and the proposed work for 2025/26.

The report noted that the council has a stated position of zero tolerance to fraud. It also noted the Economic Crime and Corporate Transparency Act 2023, and in particular section 199, Failure to prevent Fraud Proportionate procedures for Large Organizations. The report included an initial assessment of the council's position against the six principles for developing procedures to prevent fraud, as outlined in guidance on the legislation:

1. Top-level commitment
2. Risk assessment
3. Proportionate risk-based prevention procedures
4. Due diligence
5. Communication
6. Monitoring and review

The report stated that Internal Audit had already undertaken an initial analysis of these areas and determined that the council has the appropriate controls in place.

The report also provided details of reactive work undertaken in 2024/25, including investigations into misuse of data and breaches of the Code of Conduct. It noted that the number of investigations remained constant from the previous year, but that cases were becoming more complex.

Other services across the council also identify and address fraud and theft. The report summarised work undertaken by Parking Services in relation to blue badge misuse, and by the Housing Fraud Team in relation to tenancy and right to buy fraud.

The report outlined the counter-fraud plan for 2025/26, which includes four pieces of pro-active work:

• Service Level Fraud Risk Registers
• Review of the processes for managing Housing Tenancy Fraud
• Bus lane enforcement write offs
• Housing Service Data systems access monitoring arrangements

The report also provided an update on the National Fraud Initiative (NFI), a biennial process where data is supplied from several council systems and is matched to data supplied from other councils and third parties.

The report included a checklist for Those Responsible for Governance , to provide the Audit and Standards Committee with assurance on the robustness of the council's counter fraud arrangements.

Interim Standards Complaints Report

The committee was scheduled to receive an Interim Standards Complaint Update Report, covering the period from January 2025 to August 2025. The report provided an update on the current position of standards complaints against Sheffield City Council Councillors, Co-opted members and Town/Parish Councillors.

The report included a table showing the number of complaints made in the period, and a breakdown of the findings:

The report noted that twenty complaints were received in total, compared to sixteen received in the same period in 2024.

Role of the Audit and Standards Committee and Training

The committee was scheduled to discuss a report outlining guidance documents available to support Local Authority Audit Committees, and to inform Audit Committee members of the resources and training available to assist them in their role.

The report referenced the Chartered Institute of Public Finance and Accountancy (CIPFA) Position Statement on Audit Committees for Local Government, which sets out the role and responsibilities of Audit Committees, together with principles for good practice.

The report proposed a programme of recommended training, including introductory training to cover the role of Audit Committees, and more specific courses on key responsibilities including risk management, and understanding financial statements.

Work Programme

The committee was scheduled to consider a report outlining the work programme for the remainder of the municipal year, and to identify any further items for inclusion.