The Audit and Governance Committee of North West Leicestershire Council was scheduled to discuss a range of financial and operational matters, including draft accounting policies for 2025/26, standards and ethics reports, and updates on internal audit progress and strategy. The committee was also set to review the council's corporate risk register and consider the implications of local government reorganisation on accounts and audit.

Draft Accounting Policies 2025/26

The committee was scheduled to consider the draft accounting policies for the 2025/26 financial year, as presented by Anna Crouch, Head of Finance. These policies are a requirement of the Local Government Act 2003 and the Accounts and Audit (England) Regulations 2015, ensuring that the Statement of Accounts is produced in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Local Authority Accounting in the United Kingdom. The report highlighted significant changes in the 2025/26 Code that would impact the Council's accounting policies, including mandatory five-year cycles for Property, Plant, and Equipment (PPE) revaluations and the adoption of International Financial Reporting Standards (IFRS 17). The draft policies, detailed in Appendix A of the report, were subject to review by external auditors, Azets, and could be subject to change before final approval.

Standards and Ethics Report - Quarter 4

Rochelle Tapping, Interim Head of Legal and Support Services and Monitoring Officer, was scheduled to present the Standards and Ethics Report for Quarter 4 of 2025/26. This report provides information on the local determination of complaints and ethical indicators. It aims to enable the committee to track the number of complaints received by the Monitoring Officer each quarter, how they are dealt with, and identify any breaches of the Councillor Code of Conduct that might necessitate further targeted training. The report also includes oversight of quarterly data for Ethical Indicators, such as instances of concern regarding Modern Slavery, whistleblowing incidents, and the use of RIPA powers. The report indicated that four complaints were received in Quarter 4, with several ongoing from previous quarters. An Assessment Sub-committee meeting had taken place, referring one complaint for further action.

Local Government Reorganisation - Accounts and Audit Requirements

Anna Crouch, Head of Finance and Acting Section 151 Officer, was scheduled to present a report on the accounts and audit requirements arising from Local Government Reorganisation (LGR). The report, drawing on guidance from the Local Government Association (LGA), aimed to brief the committee on the implications for audit, governance, and financial reporting during the transition period. The LGA guidance emphasises that predecessor councils remain fully responsible for producing and publishing statutory accounts until dissolution, and that LGR does not alter statutory deadlines or audit requirements. The report highlighted the critical importance of timely audit completion for successor authorities and the role of audit committees in maintaining oversight of financial reporting and internal control throughout the transition.

Internal Audit Progress Report

Kerry Beavis, Audit Manager, was scheduled to present the Internal Audit Progress Report for Quarter 4 of 2025/26. This report informs the committee of progress against the 2025/26 Internal Audit Plan and highlights any significant control failings or weaknesses identified. The report indicated that three final audit reports had been issued since the last update, with extracts included in Appendix B. Appendix D detailed overdue and extended recommendations, excluding key financial systems recommendations which are monitored through a separate action plan. The report also noted that a full review of actions against recommendations had been carried out, with an update on progress shown in Appendix C.

Internal Audit Strategy

Kerry Beavis, Audit Manager, was also scheduled to present an update on the Internal Audit Strategy. This strategy identifies key initiatives to strengthen the Internal Audit service, align operations with Global Internal Audit Standards (GIAS) in the UK Public Sector, and support governance, risk management, and internal control. The report aimed to ensure the committee had transparent oversight of delivery against the strategy, noting areas of strong progress and where external factors had influenced timelines. Support was requested for remaining actions, such as the External Quality Assessment and the development of data analytics capability, which are essential for full GIAS alignment. Endorsement was also sought for ongoing modernisation initiatives, including the use of data analytics and AI tools.

Internal Audit Annual Plan

Kerry Beavis, Audit Manager, was scheduled to present the proposed Internal Audit Annual Plan for 2026/27. This plan is prepared on a risk-based assessment of the Council's activities and in consultation with the Corporate Leadership Team. Each audit assignment in the plan is aligned to the Corporate Risk Register and the Council's priority areas. The report noted that audits for three key financial systems (Benefits, Council Tax, and NNDR), provided by the Leicestershire Revenues and Benefits Partnership, would be undertaken by internal auditors at Hinckley and Bosworth Borough Council, with their reports to be reviewed and relied upon where appropriate. A contingency was included in the plan to mitigate resource risks and ensure delivery of priority work.

Internal Audit Charter and Mandate

Kerry Beavis, Audit Manager, was scheduled to present the Internal Audit Charter and Mandate for approval. This document formally defines the purpose, authority, and responsibilities of the internal audit activity, in accordance with Global Internal Audit Standards (GIAS) and the CIPFA Code of Practice for the Governance of Internal Audit in UK Local Government. The Charter outlines the internal audit function's commitment to GIAS, its mandate, scope of services, and reporting relationships, ensuring its independence and objectivity.

Corporate Risk Update

Kerry Beavis, Audit Manager, was scheduled to provide an update on the Council's Corporate Risk Register. The report presented the latest version of the register, reviewed by officers in March 2026, and highlighted updates regarding the full review of risk CR3, the inclusion of Local Government Reorganisation (LGR) considerations within relevant risk controls, and an update on mitigation actions for the risk associated with the Local Plan (CR20). Of the 17 active risks, one was categorised as red, seven as amber, and nine as green. The report noted that the Director of Resources acts as the lead for corporate risk, but this was temporarily managed by the Audit Manager during the transition period. The Audit Manager expressed satisfaction that the main risks and appropriate control measures were captured within the register.