The Governance and Audit Committee of Leicester City Council was scheduled to convene on Monday, 26 January 2026, to review updates on procurement, internal audit progress, and to consult on the upcoming internal audit work programme. The meeting's agenda focused on ensuring the council's financial and operational integrity through oversight of its audit and procurement functions.

Mid-Year Procurement Update

The committee was scheduled to receive a report from the Director of Finance, Amy Oliver, providing a mid-year update on procurement waivers for the 2025-26 financial year. This report was intended to address concerns previously raised by the committee regarding procurement procedures. It detailed that in the first half of 2025-26, there were 20 waivers totalling just under £4 million. Of these, 18 did not exceed legal thresholds, while two represented a greater risk and were undergoing competitive procurement. The report included a breakdown of waivers by department and reason, comparing them to the full previous year. Specific waivers over £50,000 were detailed, including those for washroom services, franking machines, security services, removal of illegal vehicles, provision of a record office, a Unit4 Cloud Project Management system, energy case studies at schools, roof coverings replacement at Allexton Nursery, LGR Professional Services, emergency works at Abbey Park Lake, dangerous buildings, minor adaptation services, and social care commissioning. The report also outlined financial, legal, equalities, and climate emergency implications, noting that while no direct equality or climate emergency implications arose, robust procurement procedures were essential for value for money and fraud reduction. The legal implications highlighted collaborative efforts to minimise waivers and the importance of justifying urgency and continuity in compliance with procurement law and the Council's duty of Best Value.

Internal Audit Progress Report

The Director of Finance was also scheduled to present the Internal Audit Progress Report for 2025-26. This report aimed to update the committee on the delivery of the internal audit work programme up to 6 January 2026 and outline plans for the remainder of the year. The report indicated that five audits had been finalised, and four were at the draft stage, with nine audits in progress. It also detailed the outcomes of the audit into the council's use of waivers during 2024-25, which concluded that while the council had a well-designed process, the volume and proportion of retrospective waivers remained higher than expected. The audit identified inconsistencies in how Form for Exemptions and Waivers (FEW) were completed and noted that four of the five highest value waivers reviewed were retrospective. The report recommended that the committee note the progress made and the plans for delivery. It also included information on the follow-up of agreed actions from previous audits, noting that 23 out of 33 actions followed up had been satisfactorily implemented, with no actions reported as overdue at the time of reporting.

Internal Audit Work Programme Consultation – 2026-27

The committee was set to engage in a consultation regarding the Internal Audit Work Programme for 2026-27. This report, presented by the Director of Finance, outlined the arrangements for developing the programme and sought the committee's views on priority areas for future audits. The consultation process involved engagement with the Governance and Audit Committee and senior council officers. The report highlighted the ongoing financial challenges facing Leicester City Council and other local authorities, necessitating a continued drive for savings and prudent financial management. It also noted other challenges such as legislative changes, cost and demand pressures in social care, and the housing crisis. The report detailed Veritau's 'opinion framework', which guides the development of the work programme by considering 11 key assurance areas, organisational risks from the strategic risk register, and the City Mayor's priorities. The committee was invited to provide its views on strategic risks, threats to achieving council priorities, and specific elements within the key assurance areas that warranted attention.

Action Tracker

Finally, the committee was scheduled to review the Action Tracker, which noted progress on actions agreed at previous meetings that were not reported elsewhere on the agenda. An action from the previous meeting concerning the Health and Safety Annual Report was noted, requiring a further breakdown of lone working information and an invitation to Trade Union representatives for a future meeting.