The Combined Fire Authority for County Durham and Darlington Audit and Finance Committee meeting scheduled for Thursday 27 November 2025 was set to cover a range of financial and governance matters. Key discussions were expected to include the draft auditors' annual report, the audit strategy, and the internal audit charter. The committee was also scheduled to review financial outturns, budgets, and governance statements.

Draft Auditors Annual Report

The committee was scheduled to consider the draft Auditors Annual Report for the year ended 31 March 2025. This report, prepared by external auditors Forvis Mazars LLP, summarises their work for the Authority. The report outlines the auditors' opinion on the financial statements, their commentary on Value for Money (VFM) arrangements, and other reporting responsibilities. The report indicated that the audit of the financial statements was yet to be completed, and the auditors had not identified any significant weaknesses in the Authority's arrangements for securing economy, efficiency, and effectiveness in its use of resources.

Audit Strategy Memorandum

The Audit Strategy Memorandum for the year ended 31 March 2025, also from Forvis Mazars LLP, was scheduled for discussion. This document details the auditors' approach to the audit, including the significant audit risks and areas of key judgement they have identified. It also confirms the audit team and outlines the audit scope, approach, and timeline. The memorandum highlights the risk-based approach to the audit, focusing on areas susceptible to material misstatement. Significant risks identified included management override of controls, the valuation of land and buildings, and accounting for leases under IFRS 16.

Internal Audit Charter

A key item for discussion was the proposed Internal Audit Charter. This document defines the purpose, authority, and responsibility of the internal audit service, aligning with the Global Internal Auditing Standards (GIAS) and CIPFA's Code of Practice for the Governance of Internal Audit in UK Local Government. The charter establishes the internal audit function's mandate, reporting relationships, and scope of services, aiming to strengthen the organisation's governance, risk management, and internal controls. The report recommended that the committee agree to the proposed Internal Audit Charter.

Internal Audit Progress Report

The committee was to receive an update on the work undertaken by Internal Audit between 1 April 2025 and 31 March 2026. The Internal Audit Progress Report provides assurance on internal controls, highlights significant issues requiring improvement, and tracks progress on implementing audit recommendations. The report indicated that a number of reviews were in progress or planned, with several already completed and at draft or final report stage. No reports had been issued with a Limited Assurance Opinion, and no management responses to draft reports were overdue.

Annual Governance Statement 2024/25

The Annual Governance Statement (AGS) for 2024/25 was presented for approval. This statement outlines the Authority's approach to corporate governance, reflecting the principles of the Delivering Good Governance in Local Government framework. It identifies key governance risks and the Authority's arrangements for managing them. The AGS noted a Moderate overall assurance opinion from the Head of Internal Audit on the adequacy and effectiveness of internal controls, indicating sound systems with some areas for improvement. Significant governance issues identified for inclusion in the 2025/26 action plan included the impact of public sector spending reductions, assumptions underpinning the Medium-Term Financial Plan, and the impact of changes to the Firefighters Pension Scheme.

Corporate Governance Action Plan Update

An update on the Corporate Governance Action Plan was scheduled for review. This plan details the progress being made in relation to actions arising from the development of the Authority's corporate governance arrangements, as identified in the Annual Governance Statement. The plan is reviewed quarterly by the Service Leadership Team to ensure appropriate actions are taken to mitigate risks to effective governance.

Forecast of Outturn 2025/26

The committee was to receive an update on the Service's revenue and capital financial outturn position for 2025/26, based on expenditure and income up to 30 September 2025. The forecast indicated a projected underspend of £0.217 million on the revenue budget, offset by various overspends and underspends across different budget headings. The capital budget forecast showed an underspend of £1.200 million, primarily due to a change in the start date for the New Service Headquarters project.

Short-Term Investments and Long-Term Borrowing

An update on the performance of the Authority's short-term investments and long-term loans for the period ended 30 September 2025 was scheduled. The report detailed the interest earned on investments, which was above the budgeted amount, and the breakdown of invested funds. The outstanding principal balance for long-term loans was also provided.

2026/27 Budget and Medium-Term Financial Plan

The committee was to be advised on the timetable for the consideration and approval of the 2026/27 Budget and Medium-Term Financial Plan (MTFP). This report highlighted the financial pressures facing the Authority, including unfunded pay awards, inflation, and uncertainty around government funding, particularly the potential impact of the Fair Funding Review 2.0. The approved MTFP showed a balanced budget for 2025/26 but projected shortfalls in subsequent years. The report also outlined options to balance the budget, some of which could impact emergency response standards.

Other Business

The agenda also included items for Any Other Business.