The Governance, Audit, Risk Management and Standards Committee met to discuss the status of the 2025/26 audit, approve the internal audit plan for 2026/27, and review the corporate anti-fraud plan for the upcoming year. The committee noted the ongoing process to rebuild audit assurance following previous disclaimed opinions, approved the internal audit plan which includes the adoption of new global standards and the use of data analytics, and endorsed the corporate anti-fraud plan which focuses on proactive measures and collaboration.

Audit Status 2025/26

The committee received an update on the 2025/26 audit status, noting that the external auditors, Forvis Mazars, are in the process of rebuilding assurance following previous disclaimed opinions. It was explained that this process is expected to take several years, with an unmodified opinion anticipated for the 2027/28 accounts. The auditors anticipate issuing a qualified opinion for the 2025/26 and 2026/27 financial years, primarily due to a lack of assurance over prior year figures. This is not a reflection of wrongdoing by the council but rather a consequence of the backlog and resource issues faced by auditors in previous years. The auditors confirmed that the disclaimed opinion for 2024/25 was due to a lack of finalised guidance for rebuilding assurance, not a lack of council resources. The committee noted the audit plan and the projected timeline for regaining an unmodified audit opinion.

Internal Audit Plan 2026/27

The committee reviewed and approved the Internal Audit Annual Plan for 2026/27. This plan outlines 64 project reviews to be completed within the year, supported by 855 operational audit days. A significant aspect of the plan is the adoption of the new Global Internal Audit Standards (GIAS), which have led to updates in the Internal Audit Charter and Mandate. The plan incorporates a pilot use of data analytics, including AI, to enhance testing capabilities across various services such as Accounts Payable, Customer Contact, and Adult and Children's Services caseload management. The committee also discussed the organisational independence of the Internal Audit Service, noting that while it reports functionally to the committee, the Assistant Director Audit & Anti-Fraud's responsibility for the Corporate Anti-Fraud Team, Corporate Risk Management, and the Annual Governance Statement creates an impairment to full independence, which is mitigated by management assurance and oversight from the committee and external auditors.

Corporate Anti-Fraud Annual Plan 2026/27

The Corporate Anti-Fraud Annual Plan for 2026/27 was reviewed and approved. The plan emphasizes a proactive approach to tackling fraud, with increased focus on testing and collaboration. Key initiatives include a comprehensive fraud risk assessment, a review of the Corporate Anti-Fraud and Corruption Strategy, and coordination of the National Fraud Initiative data match exercise. The plan also addresses the new Failure to Prevent Fraud legislation introduced by the Economic Crime and Corporate Transparency Act 2023, aiming to raise awareness and ensure compliance. The Corporate Anti-Fraud Team, comprising six full-time equivalent staff, will continue to focus on high-risk areas, including tenancy fraud, housing needs, and adult social care financial assessments, with a new key performance indicator for issuing fraud reports within 10 working days of investigation completion.

GARMS Annual Report 2025/26

The committee reviewed and agreed to recommend the GARMS Annual Report for 2025/26 to be presented to the Full Council. The report details the committee's work throughout the year, including its oversight of governance, internal and external audit, risk management, and financial reporting. It highlights the committee's role in ensuring robust governance and control arrangements and notes the ongoing process of rebuilding audit assurance following previous disclaimed opinions. The report also confirms that the committee's terms of reference were reviewed and updated in April 2026.