The Audit Committee of Lincolnshire County Council was scheduled to meet on 17 November 2025 to discuss a range of topics, including the high needs system for special educational needs and disabilities (SEND), the audit of accounts for both the council and its pension fund, risk management, financial regulations, and the committee's work programme. The meeting was also to include a review of the council's constitution.

High Needs System - SEND and Alternative Provision

The Audit Committee was scheduled to receive a report about the high needs system, SEND, and alternative provision within Lincolnshire. The report, presented by Martin Smith, Assistant Director Children's Education, was intended to provide an overview of the legal framework, processes, and procedures for managing SEND and alternative provision.

The report pack noted that a Local Area Partnership inspection in February 2025 found that arrangements in Lincolnshire led to inconsistent experiences and outcomes for children and young people with SEND. Strengths of the local area included:

• Clear governance and strategic oversight
• Active stakeholder engagement, including Parent and Carer Forum
• Improved equipment and wheelchair services
• Effective triage through a single point of access for the nursing services
• Specialist respiratory service has prevented hospital admissions
• Dynamic support register helps prevent mental health crises
• Attendance support aligns with national averages
• Positive post-16 outcomes for most young people
• Expanding Alternative Provision options and effective reintegration support
• Children's Centres provide valuable support
• Oversight of external commissioned placements ensure safety and quality

Areas for improvement were noted as:

• Improve EHCP¹ plan quality, personalization, and transition planning
• Reduce waiting times for Speech and Language Therapies and Neurodivergent Pathways
• Strengthen early identification and intervention in schools (relating to suspensions and permanent exclusions)
• Enhance communication with professionals and families
• Ensure accessibility of the local offer and services available

The report pack noted that demand for SEND services in Lincolnshire continues to rise, mirroring national trends. EHC Needs Assessment requests have increased from 1,258 in 2022 to 1,957 in 2024, with 1,418 already received in 2025. The report also included data on:

• EHCP cohort growth by year
• Primary needs and setting type
• Appeals and mediation
• Week 6 panel decisions
• INMS Placements
• Permanent exclusions and suspensions

The report pack stated that the High Needs Block is under significant pressure, forecasting an overspend of £25 million in 2025/26 on a budget of £141 million, which will result in Lincolnshire's Dedicated Schools Grant (DSG) going into a structural deficit for the first time.

The report pack also included details of the strategic approach to improvements, including:

• EHCP Banding Review
• Learner of Focus (LOF)
• EHCP Quality Assurance
• EHC Needs Assessment Requests
• Seeking support of the Integrated Care Board (ICB) to fund and improve the SALT and Neurodiversity assessment pathway offer
• Mitigations forecasting of interventions, services and impact of new delivery models

The report pack also included an update on the SENDAP Sufficiency Strategy, and noted that a new strategy, Better Belonging Lincolnshire: SEND Sufficiency, was in development.

The Executive Director for Children's Services asked the Audit Committee to review the contents of the report and seek assurances around local arrangements.

Update on the Audit of Accounts for Lincolnshire County Council and Lincolnshire Pension Fund 2024/25 & Proposed Audit Fees for 2025/26

The Audit Committee was scheduled to receive a report from Claire Welberry, Strategic Finance Lead, presenting the external auditors' draft Year End report for both Lincolnshire County Council and the Lincolnshire Pension Fund, as well as the proposed fee scale for the 2025/26 audit.

The report pack stated that the audits of the 2024/25 accounts were substantially complete for both Lincolnshire County Council and the Lincolnshire Pension Fund and were expected to conclude by the end of November 2025.

The report pack noted that uncorrected audit misstatements in the 2024/25 accounts, that exceed the threshold of £1.35 million, relate to:

• Cash and Cash Equivalents
• Fixed Asset additions funded through capital expenditure rather than as 'revenue expenditure funded under statute' (REFCUS)²

The report pack stated that in October 2025, Lincolnshire County Council was invited to respond to a consultation launched by the Public Sector Audit Appointments organisation (PSAA), on the proposed fee scale for the 2025/26 audits. The proposal is for the original 2024/25 audit fee to be uplifted for recent changes in audit requirements. There are no such changes for Lincolnshire County Council, but the Lincolnshire Pension Fund has been uplifted regarding ISA19 – Employee benefits. The 2025/26 fee scale also includes a contractual uplift for indexation of 2.8%.

The Executive Director of Resources recommended that the Audit Committee considers the information in this report and in the appendices and identifies any further information or actions that may be required.

Risk Management Progress Report

The Audit Committee was scheduled to receive a report from Kevin Lane, Principal Risk & Assurance Officer, providing an update on how the council's strategic risks are being managed.

The report pack stated that in line with the risk management strategy and to ensure effective monitoring, all the strategic risks have been reviewed with risk owners and assurances obtained relating to their management. As part of the review process, four risks have been de-escalated from the strategic risk register, to the appropriate directorate risk registers. These risks are:

• Outstanding debt
• Recruitment and retention
• Education travel
• Strategic contracts

The report pack noted that the market supply (children's) issue remains an occurring risk, with use of unregistered placements and a budget overspend, and that a new strategic board has been created to support mitigation of the issue. The report pack also noted that the high needs block risk, which was to be the subject of a deep dive review during this committee, scoring remains unchanged at this review.

The report pack stated that risk management activity has included the review and update to the risk appetite process, development of risk management e-learning tools and the first meeting of the Strategic Risk Group. Horizon scanning topics to watch, include cyber risks, changes to ICBs and their funding, current economic conditions and impacts of the immigration white paper due this year.

The report pack included the strategic risk register, which listed the following risks:

• Safeguarding Children
• Safeguarding Adults
• Resilience – Business Continuity
• Budget – LCC
• Market Supply Adults
• Local Government Reorganisation
• LFR Command and Control
• IT Infrastructure
• Extreme Weather
• High Needs Block

The report pack recommended that the Committee notes the status of the strategic risks facing the council seeking assurance over the adequacy of the council's governance of risk, and control environment, and makes recommendations on any further scrutiny requirements or actions, and the risk management activity and confirms if any further actions are required.

Review of the Financial Regulations

The Audit Committee was scheduled to receive a report from Michelle Grady, Assistant Director Finance, inviting the committee to consider several amendments to the council's financial regulations and consequent amendments to the budget definition within the constitution, and to recommend that such amendments are approved by full council.

The report pack stated that it is the responsibility of the Section 151 Officer³, to ensure the financial regulations support the financial governance of the council and that they are reviewed regularly to ensure they reflect any updated regulations, professional codes of practice and guidance supporting best practice.

The report pack detailed the amendments proposed to the financial regulations, ensuring they reflect regulatory and best practice changes, and the paragraphs in the regulations that have been changed. These are also included in the Financial Regulations (with tracked changes).

Changes made to financial regulations A, C and E relate to changes in accounting regulations, so are required to be applied by law. This also includes accounting codes of practice, which are based in law. Changes in financial regulation B and E reflect a change in reporting format and responsible officer to mirror current operations within the council. Financial Regulation B, proposes a simplification of language to assist the application of the authorisations required of virements[^5] of budget.

The report pack stated that to ensure consistency of application across the constitution it is proposed that consequential amendments are made to the budget definition within the constitution to reflect that the Treasury Management function will fall within the remit of full council. The proposed amendments are shown in Constitution Part2- Article 4 - budget definition.

The report pack recommended that the Committee considers the content of this report, endorses the proposals detailed and recommends that full council and the Leader of the Council, as appropriate, approves the amendments to the financial regulations and consequent amendments to the budget definition within constitution as detailed in the tracked changes in appendices A and B.

Audit Committee Work Programme

The Audit Committee was scheduled to consider its work programme. The report pack included the Audit Work Programme, which listed the core assurance activities currently scheduled for the work plan.

The report pack recommended that the Committee reviews and amends the Audit Committee's work plan ensuring it contains the assurance areas necessary to approve the Annual Governance Statement.