The Audit and Governance Committee of Boston Council met on Tuesday 21 April 2026 to review the progress of internal and external audits, discuss the council's risk management framework, and consider financial reports. Key decisions included noting the internal audit progress report, approving the accounting policies for the upcoming financial year, and reviewing the Q3 treasury report.

Internal Audit Progress Report

Claire Goodenough, Head of Internal Audit for Lincolnshire County Council, presented the Internal Audit Progress Report for April 2026. She confirmed that 100% of the agreed audit plan for the financial year had been completed, with the majority of audits receiving an adequate assurance rating. One audit, relating to the Identification and Monitoring of Savings, received an insufficient controls rating, prompting a repeat audit. Councillors raised concerns about the lack of operational detail available to answer specific questions arising from the audit reports, leading to an agreement to ensure relevant officers are present at future meetings to provide answers.

Internal Audit Annual Plan 2026/2027

Claire Goodenough also presented the proposed Internal Audit Annual Plan for 2026/2027. The plan includes thematic audits on risk management and savings, building on previous work. Councillor Adam Cartwright questioned whether minutes from the Efficiency Board meetings, which identify council savings, would be included in future audits. Claire Goodenough explained that the planning of audits is risk-based and that the specific timing for reviewing the Efficiency Board's minutes was not yet determined. Councillor Jonathan Noble raised the point that historically, the Section 151 Officer and finance portfolio holders attended these meetings, which seems to have changed. Councillor Carter Price suggested a pre-meeting to identify likely questions to ensure officers are prepared to answer them.

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 and identified three significant risks: the valuation of land and buildings, management override of controls, and the valuation of post-retirement benefit obligations. Mr. Boyle confirmed that no significant risks or weaknesses had been identified in the council's arrangements for financial sustainability, governance, or improving economy, efficiency, and effectiveness. 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.

Accounting Policies 2025/26

Ellie Stacey, Head of Finance Delivery, presented the proposed accounting policies for the 2025/26 financial year. The main change relates to the valuation of property, plant, and equipment, moving to 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 for efficiency. A discussion also arose regarding the reopening of the Local Government Pension Scheme to councillors, with confirmation that this would be implemented from April 11th. Councillor Stephen Woodliffe pointed out a minor error in the report, changing Her Majesty's Revenue and Customs to His Majesty's Revenue and Customs to reflect the current monarch.

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

Christian Allen, Assistant Director – Regulatory, provided an update on the council's activities regarding 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 policy for Body Worn Video has been introduced, and plans are in place to develop a new partnership CCTV policy. Councillor Jonathan Noble questioned why body cameras were not mandatory for enforcement officers, and Mr. Allen explained it was a discretionary decision based on evidential need and risk assessment.

Q3 Treasury Report 2025/26

Sean Howsam, Treasury and Investments Manager, presented the Q3 Treasury Report. He provided an economic update, noting a flat economic performance and a decrease in interest rates. The report detailed the council's investments and borrowing, showing a favourable variance in investment income compared to the budget. 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 per institution but aimed for a balanced spread. Concerns were raised about the performance of property fund investments, which have seen a decrease in value over time. Mr. Howsam acknowledged this and stated that the funds are under regular review.

Quarter 3 25/26 Risk Report

Suzanne Rolfe, Assistant Director – Governance and Monitoring Officer, presented the Q3 Risk Report. She highlighted several strategic risks, including Budget, Cyber Incident, and Environment Act, which were rated as high. Councillor Andy Izard raised a concern about the inclusion of Council Tax Fraud as a risk and asked if the collection of council tax and arrears was also assessed. Suzanne Rolfe confirmed that fraud is covered and that the detail is in the appendix, with a review currently underway. Councillor Jonathan Noble noted that council tax collection figures are available and are in the low 90s. Councillor Adam Cartwright inquired about the underlying risk of AI oversight, which Ms. Rolfe explained was related to the rapid adoption of AI and the need for governance. Councillor Carter Price raised concerns about digital connectivity, particularly in rural areas, and the potential impact of BT switching off landlines.

Work Programme

The committee reviewed the work programme for the current year and the draft for 2026/27. Councillor Adam Cartwright noted that specific meeting dates for the upcoming year were not yet available. Councillor Jonathan Noble raised concerns about the medium-term financial strategy, referencing a corporate peer challenge that identified a potential financial gap of £6.5 million. The committee agreed to investigate this further and seek clarification.

The meeting concluded with thanks to all attendees and a commitment to ensuring that officers are present at future meetings to answer questions arising from reports.