The ESPO Finance and Audit Subcommittee meeting scheduled for 25 February 2026 was set to review key governance documents for internal audit, consider the annual internal audit plan for 2026-27, and receive an update on progress against the current year's internal audit plan. Discussions were also scheduled on ESPO's financial performance, budget, and risk review.

Global Internal Audit Standards in the UK Public Sector - Governance Documents

The subcommittee was scheduled to consider a report detailing important governance documents required for conformance with the Global Internal Audit Standards (GIAS) effective in the UK public sector from 1 April 2025. These documents include an Internal Audit Charter, a Code of Practice for the Governance of Internal Audit in Local Government, and an Internal Audit Strategy. The report outlined the work undertaken to develop these documents, adaptations for UK public sector requirements, and a self-assessment of ESPO's compliance. Recommendations included noting the work undertaken and delegating authority to the Consortium Treasurer to make minor changes to the documents. A report on the use of Artificial Intelligence (AI) was also to be brought to a future meeting.

Annual Internal Audit Plan 2026-27

The meeting was scheduled to consider the ESPO Internal Audit Plan for 2026-27. This plan is developed to support the achievement of ESPO's objectives and is aligned with the Corporate Risk Register and Business Strategy. The report detailed the planning methodology, which includes consultation with ESPO's leadership, evaluation of other assurance sources, and horizon scanning for emerging risks. The plan includes annual audits of key financial and IT systems, as well as thematic reviews such as cyber security, AI, and counter-fraud work. A contingency is retained for unforeseen events and advisory work. The subcommittee was asked to approve the proposed plan.

Internal Audit Service Progress Against the 2025-26 Internal Audit Plan

A summary of the work undertaken by Leicestershire County Council's Internal Audit Service (LCCIAS) for ESPO between 23 September 2025 and 26 January 2026 was scheduled for review. The report indicated that no high-importance recommendations had been identified to date, and all prior year work had been concluded. The progress update detailed the status of audits, including those with final reports issued, advisory work completed, and audits still in progress. The subcommittee was asked to note the progress and the absence of high-importance recommendations.

Financial Performance Update - 9 months to December 2025

The subcommittee was scheduled to receive an update on ESPO's financial performance for the nine months ending December 2025. Discussions were expected to cover expected surplus totals, financial forecasts, product margins, cost reductions, and international sales.

Budget 2026/27

Consideration was to be given to the budget for 2026/27. Discussions were anticipated to address challenges related to falling pupil numbers, competition, growth areas, digital supplies, own-brand product margins, quality control, member dividends, and warehouse capacity.

Risk Review

The meeting was scheduled to include an overview of ESPO's risk landscape. Discussions were expected to confirm whether there had been any changes to the risk profile, with a specific mention of the global supply chain having settled and its associated risk being reduced.