The Audit Committee of Hertfordshire County Council was scheduled to meet on 4 December 2025 to discuss a range of topics, including the Hertfordshire Fire & Rescue Authority's annual statement of assurance, an update on the 2024/25 audit, and a mid-year report on treasury management. The committee was also expected to review risk management and internal audit progress, as well as set its future work programme.

Here's a summary of the key items on the agenda:

Hertfordshire Fire & Rescue Authority Annual Statement of Assurance

The Audit Committee was scheduled to consider the Hertfordshire Fire & Rescue Authority's (HFRA) annual Statement of Assurance (SoA). This statement is a requirement of the government's Fire and Rescue National Framework and provides assurances on financial, governance, and operational matters. The draft SoA for 2024/25 stated that it:

gives a true and fair view of the financial, governance and operational arrangements that Hertfordshire Fire and Rescue Authority had in place for the period 1 April 2024 to 31 March 2025.

The report recommended that the committee approve the draft Statement of Assurance for 2024/25.

4/25 Audit Update

The Audit Committee was scheduled to receive an update on the progress of the council's 2024/25 audit from KPMG, the external auditor, and the Director of Finance. According to the report, KPMG had substantially completed their audit procedures, and the council was in a good position to meet the statutory deadline of 27 February 2026. The council was anticipating an unqualified opinion on its accounts, which would be an improvement after disclaimed opinions in the previous two financial years.

Two audit misstatements requiring adjustments to the accounts were identified: one relating to a duplicated land asset and the addition of another asset, and another resulting from an updated pension valuation report. The report also noted that KPMG had made two new control recommendations, neither of which were given a high priority rating.

KPMG's assessment of the council's value for money arrangements reportedly found no significant weaknesses.

Pension Fund Audit

The committee was scheduled to discuss the draft audit report for the Hertfordshire Pension Fund for the year ended 31 March 2025. The report, prepared by KPMG, summarised the findings of their audit of the fund's financial statements.

The report identified one audit difference, relating to a £7.8 million increase in the fund due to updated financial statements from investment managers. It also noted two control deficiencies related to related party identification and journals below £500,000.

The committee was also scheduled to consider a response to the draft audit report from the Director of Finance, which addressed the control deficiencies identified by KPMG. The response indicated that the fund had taken steps to address these deficiencies, including enforcing a rule that all journals created by fund officers must be parked and posted by separate individuals, regardless of value.

Mid Year Report on the Treasury Management Service and Prudential Indicators 2025/26

The Audit Committee was scheduled to receive a mid-year report on the Treasury Management Service and Prudential Indicators for 2025/26. The report provided a summary of treasury management performance and activity for the period to 30 September 2025.

According to the report, the council's treasury investments earned £2.97 million in interest, representing a return of 4.43%. New long-term borrowing of £20.0 million was undertaken to fund the capital programme, and £100.4 million of loans from commercial banks were refinanced through loans from the Public Works Loan Board (PWLB).

The report also provided evidence of compliance with the Treasury Management, Performance, and Prudential Indicators.

Risk Management Update

The Director of Law & Governance was scheduled to present a risk management update to the Audit Committee. The report informed the committee of the corporate risks that had been agreed by the Strategic Management Board (SMB).

Since the previous report to the Audit Committee in October 2025, the total number of risks on the Corporate Risk Register (CRR) had reportedly reduced from 18 to 11. All risks had been assessed in line with the new 5 x 5 scoring methodology. In addition, all Corporate Risks had been reframed to reflect organisation-wide impact in line with the One-HCC ethos.

The report also noted that the corporate Health & Safety risk was being presented as a separate risk focus agenda item at the meeting.

Risk Focus Report – Health and Safety Corporate Risk

The Director of Law & Governance was scheduled to present a risk focus report on the corporate risk relating to health and safety. The report provided further information regarding the risk and associated controls recorded on the Hertfordshire County Council Corporate & Strategic Risk Register.

The report noted that the current overall risk score was 12 (significant), with a likelihood of 'Possible' (3) and an impact of 'High' (4), which is the target score. It also outlined the actions and controls being undertaken to mitigate this risk.

SIAS Internal Audit Progress Report

The Director of Law & Governance was scheduled to present an internal audit progress report from the Shared Internal Audit Service (SIAS). The report provided information on the delivery of the council's Internal Audit Plan as of 10 November 2025, including progress made, proposed amendments to the audit plan, and the implementation status of previously agreed recommendations.

As of 10 November 2025, 50% of the 2025/26 Internal Audit Plan days had been delivered, and 46% of the total planned projects had been completed to draft report stage. Two in-year amendments to the approved audit plan were proposed, relating to an increase in the budget for the Ombudsman Referrals audit and the cancellation of the planned assurance mapping work on Special Educational Needs.

SAFS Progress Report

The Audit Committee was scheduled to receive a progress report on the delivery of the council's Anti-Fraud Plan 2025/26 from the Director of Law and Governance. The report summarised anti-fraud activity undertaken by the council and the Shared Anti-Fraud Service (SAFS) to protect the council against the risk of fraud.

Between April and September 2025, 193 allegations of fraud had been received, and SAFS had 43 cases under investigation, with estimated losses of £1.4 million recorded in this caseload. The report also highlighted proactive work undertaken, including the National Fraud Initiative (NFI) exercise and engagement with students to raise awareness about money-muling.

Annual Governance Mid Year Update

The Director of Finance was scheduled to present a mid-year update on the Annual Governance Statement (AGS) for 2024/25. The report provided a high-level summary of the significant governance issues identified in the AGS and their status, with detailed updates contained in the main report.

The significant governance issues included local government reform, the disclaimer of the statement of accounts, an accelerated cause of concern, the May 2025 county council election results, the Local Government and Social Care Ombudsman, Lasting Power of Attorney, a CQC re-inspection, Department for Transport funding, the Annual Governance Statement, and internal audit recommendations.

Future Work Programme

The committee was expected to agree its future rolling work programme, with suggested items for February and March 2026.