The Audit Committee of Hertfordshire Council met on Friday 3 October 2025 to discuss the council's risk management framework, the challenges facing the adult social care workforce, and the performance of the Shared Internal Audit Service. Key discussions included changes to the risk scoring matrix, the introduction of new risks, and the progress of internal audits.

Risk Management Update

The committee received an update on the council's corporate risks, noting that the number of identified corporate risks remained at 18. Changes were made to the risk scoring matrix, moving from a weighted system to a simpler 5x5 matrix. Two replacement risks were introduced: Risk of financial instability due to insufficient SEND funding (CSF0104), which replaced Insufficient funding of SEND (CSF0103), and a recruitment and retention risk (HR0021) that replaced the capacity/capability risk (CS0027). The scoring for the Ensuring delivery of the new Highways Service Maintenance Contract risk (ENVHH0006) was reduced from red to amber. The committee was informed that a risk focus report on health and safety would be presented in December, and a decision on a further risk focus report for March 2026 would be made at that time.

Risk Focus Report: Adult Social Care Workforce

A significant portion of the meeting was dedicated to the critical risk of workforce shortages in adult social care (ACSD0007/ACS17), currently assessed as red with a score of 32. Lucy Rush, Director of Practice and Quality for Adult Care Services, presented the report, highlighting national and local challenges including 165,000 vacancies across the sector nationally and approximately 2,200 vacancies in Hertfordshire. High turnover rates (20.6%) and the impact of increased National Insurance contributions on providers were discussed.

The council's mitigation strategies include working closely with the Hertfordshire Care Providers Association (HCPA) on recruitment and training initiatives, such as the Herts Good Care Recruitment Campaign, which has supported over 3,000 individuals into care roles. The Care Professional Academy aims to professionalise the sector, and the Good Care Project promotes care roles through marketing and community engagement. The council has also invested £155 million in care provider fees since 2019/20 to support sustainable pay rates.

However, challenges remain, including the recent cessation of new visas for care workers from overseas and the potential financial implications of the upcoming Fair Pay Agreement legislation. The committee noted the actions and controls in place to manage and reduce this risk.

Hertfordshire County Council - SIAS Annual Report

Darren Williams, Head of Shared Internal Audit Service (SIAS), presented the SIAS Annual Report for 2024/25. The report highlighted that SIAS delivered 95% of planned audit days and completed 91% of planned projects to draft report stage, exceeding targets. The service continues to focus on shared learning and managing the challenges of auditing in a changing environment, including the implementation of new Global Internal Audit Standards and the progression of devolution and local government reform. The report also detailed the success of the grow your own strategy for developing audit talent and positive customer feedback, with a 96% satisfactory or higher feedback rating. The committee was asked to note the report.

Hertfordshire County Council - SIAS Progress Report

Darren Williams also presented the SIAS Progress Report for 2025/26. As of 12 September 2025, 33% of the planned audit days had been delivered, and 27% of projects were at draft report stage. Eight assurance and consultancy projects and three grant certifications had been completed. No new limited assurance opinions were issued. One new high priority recommendation was made concerning the Access and Inclusion Teams and the Virtual School. The report detailed the implementation status of outstanding high and medium priority recommendations, with 33% of high priority recommendations and 54% of medium priority recommendations implemented. An in-year amendment to the audit plan was proposed to increase the budget for finalising schools audits. The committee was asked to note the progress report, the update on recommendations, and approve the proposed amendment to the audit plan.

Future Work Programme

The committee reviewed its future work programme, which includes the Annual Governance Statement Mid-Year update, reports on the Shared Anti-Fraud Service, SIAS, risk management, treasury management, and the HFRS Annual Statement of Assurance. The next meeting was scheduled for 4 December 2025.