The Audit and Governance Committee of Boston Council met on Tuesday 21 April 2026 to review the progress of internal and external audits, discuss accounting policies, and examine the council's risk management and treasury management activities. Key decisions included noting the internal audit progress report and approving the accounting policies for the upcoming financial year.

Internal Audit Progress Report

Claire Goodenough, Head of Internal Audit, presented the progress report for April 2026, detailing the work undertaken by the internal audit team. She confirmed that 100% of the agreed audit plan for the financial year had been completed. While most audits received positive feedback, one audit concerning the timeliness of reporting by a co-provider received a poor response. The report highlighted that one audit resulted in an insufficient control rating, necessitating an additional audit. Councillors raised concerns about the lack of operational detail available to answer specific questions regarding grant administration and the identification and monitoring of savings. It was agreed that these questions would be followed up and answers provided at the next meeting. The committee also discussed the availability of officers to answer questions arising from audit reports, with a commitment to ensure relevant personnel are present in future meetings.

Internal Audit Annual Plan 2026/2027

Claire Goodenough also presented the proposed internal audit plan for 2026/2027 for approval. The plan includes two thematic audits focusing on risk management and savings, building on the previous year's work. Councillor Ralph Pryke inquired about the inclusion of minutes from the Efficiency Board meetings in future audits, which was noted for follow-up. Councillor Anton Dani asked about the potential introduction of Key Performance Indicators (KPIs) for certain departments, similar to those implemented by Linkershire County Council. John Medler, representing the Senior Leadership Team, confirmed that a performance management framework with KPIs already exists and offered to share a copy of the relevant report.

External Audit Plan and Strategy for the Year Ending 31 March 2026

James Boyle from KPMG presented the external audit plan and strategy. He outlined the materiality levels for the audit, noting no significant changes from the previous year. The significant risks identified were the valuation of land and buildings, management override of controls, and the valuation of post-retirement benefit obligations. Mr. Boyle explained that the council would be implementing a five-year rolling programme for asset revaluations, with approximately 20% of assets to be valued each year. Councillor Jonathan Noble raised a point about the lack of a glossary for acronyms within the report, which Mr. Boyle agreed to address in future versions. The value for money risk assessment indicated no significant risks or weaknesses identified to date.

Accounting Policies 2025/26

Ellie Stacey, Head of Finance Delivery, presented the proposed accounting policies for the 2025/26 financial statements. The primary change this year relates to the valuation of property, plant, and equipment, where the council will now adopt a five-year rolling programme with annual indexation, as full annual revaluations are no longer permitted by the CIPFA Code of Practice. Councillor Jonathan Noble inquired about the rationale for this change, and Ms. Stacey explained it was to create a more efficient process. A discussion also arose regarding the reopening of the Local Government Pension Scheme to councillors, with confirmation that this would be possible from April 11th, though further details on implementation were still being worked through.

Regulation of Investigatory Powers Act (RIPA) 2000 - Annual Update

Christian Allen, Assistant Director – Regulatory, provided an update on the council's activities under the Regulation of Investigatory Powers Act (RIPA) 2000. He confirmed that there had been no RIPA-approved activity undertaken by the council in the past year, resulting in a nil return to the Investigatory Powers Commissioner's Office (IPCO). A partnership RIPA policy adopted in 2024 remains current. A new partnership Body Worn Video (BWV) policy has been introduced, and plans are in place to develop a new partnership CCTV policy for systems outside the public realm. Training for officers on RIPA is conducted on a three-year rolling cycle. Councillor Adam Cartwright raised concerns about the lack of mandatory use of body-worn cameras by enforcement officers, which Mr. Allen explained was discretionary and dependent on operational assessments.

Q3 Treasury Report 2025/26

Sean Howsam, Treasury and Investments Manager, presented the Q3 Treasury Report. He provided an economic update, noting a relatively flat economic performance and a decrease in interest rates. The report detailed the council's investment and borrowing activities, showing a favourable variance in investment income compared to the budget. The council's property fund investments had seen a decrease in value, with the M&G UK Property fund liquidating its assets. Councillor Jonathan Noble inquired about the temptation to invest more than £2 million in high-performing institutions, and Mr. Howsam explained that the council's investment criteria allowed for up to £5 million but aimed for a diversified spread. Concerns were raised about the management fees for property funds and the overall loss in value of these investments over time. Mr. Howsam assured the committee that property fund investments were under regular review.

Quarter 3 2025/26 Risk Report

Suzanne Rolfe, Assistant Director – Governance and Monitoring Officer, presented the Q3 Risk Report. The report detailed the council's strategic risks, with several identified as high risks, including budget, cyber incidents, infrastructure failure, the Environment Act, and the server room. Councillor Andy Izard raised a concern about the risk associated with battery energy storage systems (BESS) and their potential impact on civil contingency risks, which was noted for further review. Councillor Izard also questioned why the project to relocate or upgrade the server room had been halted, and it was explained that this was due to political tensions within the partnership, though the project has since recommenced and is now complete. Councillor Adam Cartwright asked for further explanation of the AI governance and oversight risk, noting its newness and the need for more detail in future reports. Councillor Carter Price expressed concerns about digital connectivity, particularly regarding the potential switch-off of landlines and the lack of mobile signal in rural areas.

Work Programme

The committee reviewed the work programme for the remainder of the current municipal year and the draft programme for 2026/27. Councillor James Cantwell inquired about the presentation of the CCTV policy update, which was confirmed to be included in the RIPA update in March 2027. Councillor Adam Cartwright noted that the dates for upcoming meetings were still unspecific and requested confirmation of the exact dates. Councillor Jonathan Noble raised concerns about a potential financial gap of £6.5 million pertaining to the medium-term financial strategy, as noted in a corporate peer challenge report. This was noted as an action point for further investigation and clarification.