The Audit Committee of Hinckley and Bosworth Borough Council met on Wednesday 1 April 2026 to review the external and internal audit reports for the 2024/2025 financial year, and to discuss the draft Audit Committee Annual Report. The committee approved the financial statements and annual governance statement for 2024/2025, subject to the completion of the external audit, and delegated authority to the Chair to approve the final versions.

External Audit Draft Audit Completion Report and Letter of Representation

The committee received an overview of Azets' annual report for the year ended 31 March 2025. This report included their opinion on the financial statements, key findings, risk testing, and commentary on financial sustainability and governance. Concerns were raised regarding the capacity of the finance team to effectively engage with external audit processes. Officers confirmed that this capacity issue was being addressed by management and that the council's financial position would not impact the Community Governance review for a new Hinckley Town Council. The committee noted the report and the actions in place to address recommendations, acknowledging the positive movement in the Value for Money assessment since the previous report.

Statement of Accounts and Annual Governance Statement 2024-2025

An update was provided on the financial statements and Annual Governance Statement for 2024/2025, which were in the final stages of completion. The committee resolved to note and approve these statements for publication, subject to the finalisation of the external audit process. Delegated authority was granted to the Chair of the Audit Committee, Councillor DS Cope, to approve the final Statement of Accounts once the audit was completed.

Forvis Mazars - Draft Internal Audit Annual Report for 2024-2025

The committee was presented with the draft Internal Audit annual report for 2024/2025, which detailed audit findings, recommendations, and management responses. Officers confirmed that the outstanding draft report would be finalised once management responses were completed. The report was noted by the committee.

Service Level Budget Monitoring 2025/2026 Internal Audit Final Report

This report assessed the effectiveness of the control framework for service level budget monitoring within Hinckley and Bosworth Borough Council (HBBC). Officers confirmed that refresher training was being organised for budget holders on the budget process. The report was noted by the committee.

Internal Audit Progress Report

An update was provided on the delivery of the 2025/26 internal audit plan, with officers confirming that it would be delivered in line with the reporting cycles for that year. The report was noted by the committee.

Audit Committee Forward Plan

Members were updated on the ongoing work by the Scrutiny Commission regarding action planning and best practice guidance to align the work of both the Audit Committee and the Scrutiny Commission. This collaboration may lead to new items being proposed for future committee meetings. The forward plan was noted by the committee.

Audit Committee Annual Report 2024/2025 - Draft

The committee discussed the draft Audit Committee Annual Report for 2024/2025. The report highlights the positive Value for Money conclusion from external auditors, Azets, which was free from significant weaknesses, and the high level of assurance provided by the Head of Internal Audit for the Annual Governance Statement. The report also noted the ongoing challenges posed by the national backlog in audit completions, which had prevented an external audit opinion on the Council's Statement of Accounts for the year ended 31 March 2024. The committee's work in overseeing internal and external audits, risk management, and corporate governance was detailed, along with training undertaken by members. The report concluded with recommendations for the Council to note the committee's work and to recognise the value it adds.