In the absence of the Chairman of the Committee (Councillor Sudra), the Chair was occupied by the Vice-Chairman (Councillor Steady).

The Committee is asked to note any apologies for absence and substitutions received from Members.

Apologies for absence were received from Councillors Keteca and Sudra with no substitutions appointed. Apologies were also received from Councillor Placey, who had appointed Councillor Goldman as her substitute.

It was noted that the External Auditors, Sarah McKeane and Jodie Preston had sent their apologies for absence.

To confirm and sign as a correct record, the minutes of the last meeting of the Committee, held on Thursday, 19 February 2026.

On behalf of Councillor Sudra, the Corporate Director (Finance & IT) reported that, during the previous meeting of the Committee (Minute 22 referred), Councillor Sudra had asked the External Auditor for their view on the A.2 report in relation to the self-assessment of the Council’s Internal Audit function. The External Auditor had confirmed at that time that they would provide a response to the Committee in due course.

It was unanimously RESOLVED that the Minutes of the meeting held on Thursday, 19 February 2025 be approved as a correct record and be signed by the Chairman, inclusive of the addition noted above.

Councillors are invited to declare any Disclosable Pecuniary Interests, Other Registerable Interests or Non-Registerable Interests, and the nature of it, in relation to any item on the agenda.

There were no declarations of interest made by Councillors in relation to any item on the agenda for this meeting.

Subject to providing two working days’ notice, a Member of the Committee may ask the Chairman of the Committee a question on any matter in relation to which the Council has powers or duties which affect the Tendring District and which falls within the terms of reference of the Committee.

On this occasion no Councillor had submitted notice of a question pursuant to Council Procedure Rule 38.

To provide a progress report on the Internal Audit function for the period January 2026 – February 2026 and to seek approval of the Audit Committee for the Internal Audit Strategy and Operational Plan 2026/27.

The Internal Audit Manager provided his periodic report on the Internal Audit function for the period January 2026 – February 2026 along with the Internal Audit Strategy and Operational Plan for 2026/27.

It was reported that a total of seven audits had been completed since the previous update in January 2026. Six audits were still in fieldwork, and one audit (Electoral Services) had been deferred due to the upcoming Essex County Council elections in May 2026. Six of the seven audits had received a satisfactory overall opinion of ‘Adequate’ or ‘Substantial’ Assurance. The Council Tax audit had received an overall opinion of ‘Improvement Required’.

The 2026/27 Operational Plan had been developed using a risk-based approach, informed by the Council’s Corporate Objectives and Corporate Risks, horizon scanning from other government bodies, and best value standards issued by the Ministry of Housing, Communities and Local Government (MHCLG). The plan had been shaped through engagement with Corporate/Assistant Directors, Heads of Service and service areas to identify activities that would benefit from independent review, including opportunities for efficiency improvements, enhanced use of technology, or areas that had not been subject to audit for a significant period due to their historically lower risk profile. Local Government Reorganisation (LGR) had been considered and with the now announced Government’s ‘minded to’ decision, audit days had been added to the audit plan specifically for LGR without an accurate understanding, as yet, of how those days would be allocated.

Members were reminded that it had been discussed at the previous meeting of the Committee (Minute 22 referred) as to the merits, risks and consequences in undertaking the five-year external assessment required under the Global Internal Audit Standards given the upcoming Local Government Reorganisation. Further understanding was required before reporting back to the Committee. It was highlighted that additional details would be provided to the June 2026 meeting of the Committee.

It was reported that the Accounts and Audit Regulations 2015 required that “a relevant authority must undertake an effective internal audit to evaluate the effectiveness of its risk management, control and governance processes, taking into account public sector internal auditing standards or guidance”.

Principle nine of the Global Internal Audit Standards had required the Internal Audit Manager to “Plan Strategically” and that therefore they must have implemented the following:-

·         The Chief Audit Executive (CAE) must develop and implement a strategy for the Internal Audit Function to support the strategic objectives and success of the organisation and align with the expectations of the board, senior management and other key stakeholders.

·         An internal audit strategy is a plan of action designed to chieve a long-term or overall objective. The internal audit strategy must include a vision, strategic objectives, and supporting initiatives for the internal audit function toward the fulfilment of the internal audit mandate.

·         The CAE must review the internal audit strategy with the board and senior management periodically.

To present to the Committee the progress on outstanding actions identified by the Committee along with general updates on other issues that fall within the responsibilities of the Committee.

Members were aware that a Table of Outstanding Issues was maintained and reported to each meeting of the Committee. This approach enabled the Committee to effectively monitor progress on issues and items that form part of its governance responsibilities.

It was reported that, given the relatively short period of time since the last update had been presented to the Committee on 19 February 2026, there had been no major updates against the general items, the Annual Governance Statement or External Audit recommendations that had usually been set out within the associated appendices. Therefore, those appendices had not been repeated within this report (A.2). However, work remained ongoing against all outstanding actions with timely information set out in the A.2 report where necessary.

In terms of the Annual Governance Statement Actions that had been regularly reported to the Committee, there were no required changes emerging from the recent external audit process, with the various activities having remained unchanged. Existing actions had therefore remained in progress with no major issues to raise at that time, with the usual and more detailed update planned to be presented to the Committee at its meeting that was currently programmed for June 2026.

The Committee heard that the review of the effectiveness of the Audit Committee was a key action included within the current Annual Governance Statement Action Plan and as planned, a review had been undertaken that had included both Officers and Members of the Committee, with the latest facilitated session held with Members on 5 March 2026.

The outcome of that work was currently being reviewed / collated and it was planned to present a summary of the outcomes along with an associated action plan to the June 2026 meeting of the Committee.

It was reported that similarly, the risk management review was also a key action included within the current Annual Governance Statement Plan.

Associated activities that had been undertaken to date, involving both Officers and Members had included:

1)    Training had been provided in terms of the Role of the Audit Committee that had been delivered by an external specialist trainer in January 2025.

2)    More targeting training had been delivered by an external specialist trainer in January 2026 based on challenging and revieing the Council’s current Corporate Risk Framework, register and approach.

3)    Following on from 2) above, a facilitated session had been held with Members on 5 March 2026 to review and consider potential changes to the Council’s approach.

It was highlighted that the training outlined in point 2) had covered a number of key areas including:

·         Benefits and characteristics of effective risk management

·         Audit Committee and other Members role in risk management

·         Risk registers

·         Appetite and tolerance

·         Assurance and challenge

·         Re-framing risk management

It was further reported that the session had also identified the characteristics of effective risk management along with a high-level view of what an assurance risk framework should ideally include, which was summarised as follows:

To present for approval the Audit Committee’s proposed work programme covering the period April 2026 to March 2027.

The Committee was presented with its draft work programme covering the period April 2026 to March 2027 which continued to reflect the significant element of regulatory / statutory activity required, along with other associated work, which fell within the responsibilities of the Audit Committee.

It was reported that the Audit Committee had a wide-ranging area of responsibility with statutory and regulatory functions making up a significant element of its work. The meetings of the Committee were scheduled around a quarterly basis subject to the work required of the Committee to support those statutory and regulatory timescales and deadlines. The Audit Committee’s work programme had therefore needed to take account of various demands whilst balancing a number of activities within the planned number of meetings scheduled for the year.

In addition to its statutory and regulatory duties, including consideration of the Statement of Accounts, Corporate Governance and Risk Management, the Committee was also required to review and scrutinise:

·         The work and performance of the Internal Audit function

·         The outcomes arising from the work of the Council’s External Auditor; and

·         Progress against audit recommendations and other matters identified by the Committee.

Appendix A to the report (A.3) set out the proposed items as ‘core’ and ‘supplementary’, with supplementary items being presented to the Committee as necessary and at appropriate points during the year.

It was noted that other matters, beyond those listed, might need to be brought before the Committee during the year. Given the ongoing statutory and regulatory workload and the range of activities already undertaken, any additional items would need to be considered against the proposed work programme and scheduled appropriately or included in future programmes following consultation with the Chairman of the Committee.

It was unanimously

RESOLVED that the Audit Committee Work Programme for 2026/27 be approved.

The Committee is asked to consider passing the following resolution:

“The under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during the consideration of Agenda Item 10 on th grounds that it involves likely disclosure of exempt information as defined in paragraph 7 of Part 1 of Schedule 12A, as amended, of the Act.”

It was moved by Councillor Steady, seconded by Councillor Morrison and;

RESOLVED that under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during the consideration of Agenda Item 9 on grounds that it involves the likely disclosure of exempt information as defined in paragraph 7 of Part 1 of Schedule 12A, as amended, of the Act.

To seek the necessary annual approval of the Council’s Risk Based Verification Policy.

RESOLVED that, following the annual review for 2026, the Risk Based Verification Policy, as set out in Appendix A to report B.1, be approved.