Report of: The Interim Group Finance Director (Section 151 Officer)

Purpose of the report: To seek approval of the Internal Audit Opinion 2025-2026.

Recommendation(s): That the Committee resolves to:

1.       Approve the Internal Audit Annual Opinion for 2025-2026.

The Audit and Governance Committee resolved to:

1.    Approve the Internal Audit Annual Opinion for 2026-2026.

The Group Finance Director had submitted a report to seek approval of the Internal Audit Opinion 2025-2026. 

Aaron Winter, Internal Auditor (BDO), Alistair Rush, Group Finance Director, and Jonathan Malton, Committee and Member Services Manager, were present to respond to questions. 

The Group Finance Director informed the Committee that the Council receives an annual opinion to provide assurance about the issues and themes that may emerge, as well as an overall view of the way in which the Council's internal control and governance framework functions.  

The Internal Auditor noted the report as a summary of the outcomes of all the work conducted for the last year. The Committee heard that the opinion had changed in the last year due to the introduction of the global internal audit standards in April 2025 and now includes the group position also, therefore providing a more holistic view of the Council and its subsidiaries. The Internal Auditor emphasised that the opinion for the year had been classed as generally satisfactory with improvements required in some areas, including purchase cards and client and commissioning work. The Committee understood that good governance across internal control and risk management had been identified with some improvements required in isolated areas. The Internal Auditor reminded the Committee that the plan is risk-focused, and some issues would be anticipated to arise, however the Internal Auditor is there to provide the Council support in identifying areas of good practice and improvement, but also to support the creation of effective action plans. 

The Chair invited questions from the Committee. 

Councillor Fry requested some clarity on the status of audit areas listed in appendix 2 and asked for a view on how this Council compares to other local authorities.  

The Internal Auditor clarified that the workstreams in question are complete and that this would be noted in the next iteration of the report. In relation to comparison with other local authorities, the Committee was informed that this Council sits consistently in line with comparable examples in terms of outcomes produced; similar themes such as LGR are also being focused on widely. 

The Chair, in relation to page 184, requested additional information on the findings related to purchase card transactions and specifically, what had been done to ensure it is no longer a significant issue.  

The Group Finance Director explained that regular reviews are undertaken into the use of purchase cards, and where inappropriate conduct is identified, the cards are suspended. Furthermore, the Committee heard that guidance is being reiterated to officers on how to use the purchase cards, noting they should only be required in exceptional circumstances when there is no appropriate alternative. The Group Finance Director emphasised that this topic features as part of his supervisory discussions with the Head of Operational Finance. 

Councillor Harley proposed, and Councillor Thorniley seconded, the recommendation. 

The Audit and Governance Committee resolved to:

1.    Approve the Internal Audit Annual Opinion for 2026-2026.