Here is a summary of the scheduled discussions for the Audit Committee meeting of Cornwall Council on 14 November 2025. The committee was expected to discuss annual reports from council-owned entities, an external audit report, an update on audit progress, and the Cornwall Pension Fund Audit Findings Report 2024-25. Members were also scheduled to review exemptions from contract procedure rules.

Cornwall Pension Fund Audit Findings Report 2024/25

The Audit Committee was scheduled to review the Cornwall Pension Fund Audit Findings Report 2024-25, which had been presented to the Pensions Committee the previous month. The report summarises the external auditor's approach to auditing the Pension Fund, and highlights any issues identified.

According to the report, the auditors' work was substantially complete, and they anticipated issuing an unmodified opinion on the financial statements. An unmodified opinion means that the auditor believes the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the entity in accordance with applicable accounting standards¹. However, the final audit opinion could not be issued until the audit of the Administering Authority (Cornwall Council) was complete. The report noted that the net assets of the Cornwall Pension Fund as at the end of March 2025 amounted to £2,525.902m.

The auditors identified a few key matters:

• The Brunel LGPS investment pool, in which the Cornwall Pension Fund holds a material proportion of its assets, will be restructured or merged with another pool by 31 March 2026, following a government decision.
• There was an estimation difference of £6.1 million in the valuation of Level 3 investments², which the auditors attributed to a timing variance.
• There was one control recommendation relating to authorisation of journals.

The auditors also made two recommendations for the Pension Fund:

• Management should implement controls to ensure journal approvals are performed and recorded within the financial system.
• Management should implement a process to retain evidence of all notification letters issued to new members.

Exemptions from Contract Procedure Rules

The committee was scheduled to review a report on Exemptions from Contract Procedure Rules. The Contract Procedure Rules set out how the council enters into and manages its contractual arrangements, and form part of the council's constitution. According to the report, the Exemption Process provides formal authorisation for departures from specific elements of the Contract Procedure Rules in exceptional circumstances.

The report included a list of exemptions approved between 1 April 2025 and 20 October 2025, including:

• A £130,000 exemption for Quality Checking and Co-production Lived Experience within the Sustainable and Connected Communities (S&CC) directorate.
• A £180,000 exemption for a Community Pharmacy Stop Smoking Project within the Communities and Public Protection (CWB) directorate.
• A £16,666 exemption for a Critical Mobilising System & Equipment Support SLA within the S&CC directorate.
• A £141,630 exemption for a Research Agreement on School Attendance in Cornwall within the Thriving Families and Future (TFF) directorate.
• A £119,631 exemption for an Annual Canvass Print Contract within the Customer Access and Business Support Services (CACS) directorate.
• A £439,886 exemption for the Provision of Concierge Services to Temporary Accommodation Sites within the Strategic Growth & Planning (SG&P) directorate.

The report stated that the total value of exemptions approved during this period was £1,027,813.

Audit Progress Update Report

The Audit Committee was scheduled to receive an Audit Progress Update Report. The report provided an update on the areas of work undertaken or planned by the External Auditor. The External Audit Plan was presented to the Audit Committee in April 2025 and set out the key areas of focus for the forthcoming year.

The report stated that the audit of the council's financial statements for the 2024/25 year was continuing, and that there were a number of accounting amendments likely to be made before the Audit Committee received the final audited version in January.

The report also detailed progress against the significant risks identified in the 2024/25 audit plan:

• Valuation of land and buildings, including council dwellings.
• Valuation of net pension fund liability.
• Management override of control.
• Consolidation of group accounts.
• Fraud in revenue recognition (rebutted for the council and so only relevant for the group).

Council Owned Entities Annual Shareholder and Member Reports 2024/25

The Audit Committee was scheduled to receive the annual shareholder and member reports for council-owned entities.