This report presents the annual assurance report of the Chief Auditor required by the Accounts and Audit Regulations and the Public Sector Internal Audit Standards.

The Committee received a report setting out at Appendix 1 the Internal Audit and Investigations Annual Assurance Report of the Chief Auditor for 2025/26, as required by the Accounts and Audit regulations and the Public Sector Internal Audit Standards.  The report gave the Chief Auditor’s opinion on the overall adequacy and effectiveness of the organisation’s internal control environment, drawing attention to any issues particularly relevant to the preparation of the Annual Governance Statement.  It also summarised the audit work and key findings during the 2025/2026 financial year, gave details of third-party assurance, and summarised the performance of the Internal Audit function against its key performance indicators.

The report explained that, based on the work completed during the year, the Chief Auditor had concluded that, whilst no assurance could ever be absolute, ‘Reasonable Assurance’ could be placed on the adequacy and effectiveness of the Council’s internal control framework in 2025/26.  This reflected a position where the majority of controls were operating effectively, but where improvements were required to strengthen consistency, oversight and resilience across some service areas.  The basis for the assurance opinion was set out in section 2 of the Annual Assurance report and the key areas for improvement identified during the audit work were set out in section 4. 

The report stated 27% of audits had received limited or no assurance in 2025-26, compared to 18% in 2024/25 and 44% in 2023-24.  The report provided a comprehensive overview of internal audit activities conducted in 2025-26.  A total of 22 audits, four advisory reports, and two grant certifications had been completed.

The report stated that the audit programme had confirmed that many of the Council’s core systems were supported by effective governance and well?embedded controls. However, a minority of reviews had identified more significant weaknesses, particularly in relation to data quality, capacity pressures and the consistent application of controls.  Follow?up work had shown that progress was being made in addressing previously identified issues, although some areas continued to require sustained management attention.

External assurance broadly supported this position. While the Council’s overall governance arrangements were sound, inspection findings in certain high?risk services had highlighted that controls had not always been applied consistently in practice. This distinction between the design of controls and their effectiveness in operation was a key factor underpinning the Reasonable Assurance opinion.  Overall, the report demonstrated that the Council had a functioning and responsive governance framework, with clear areas of strength. Continued focus was required to ensure that improvements were embedded and that control arrangements operated consistently across all services.

Resolved:    

(1)       That the Internal Audit & Investigations Annual Assurance Report for 2025/26 be noted;

(2)       That the Chief Auditor’s Reasonable Assurance opinion in respect of the Council’s governance, risk management and internal control framework be noted.