Agenda item

(A report by Mark Harrison, Audit Manager – Lincolnshire County Council)

The Committee received the Internal Audit Annual Plan for the 2026/27 financial year, presented by the Head of Internal Audit and Risk, which set out the proposed programme of assurance and advisory work to be undertaken by Internal Audit. The report explained how the plan had been developed using a risk?based approach, informed by the Council’s strategic and operational risk registers, recent audit findings, emerging governance priorities, and consultation with Senior Leadership Team members.

Members were advised that the Plan had been structured to reflect both continuity and progression from previous years’ audit work, including the use of thematic audits delivered over more than one year where this was considered necessary to provide sufficient depth of assurance. The Committee was informed that particular emphasis had been placed on areas such as risk management, savings and efficiency delivery, workforce and performance management, compliance with new regulatory requirements, and governance arrangements across the partnership.

The Committee considered the contents of the proposed audit plan in detail. Discussion focused on the importance of ensuring that audits relating to savings delivery and efficiency programmes provided clear assurance over accountability, escalation arrangements and management oversight. Members noted that similar issues had arisen repeatedly in recent audit reports and emphasised the need for the audit plan to test not only the existence of processes, but also their effectiveness in practice.

Concerns were raised regarding governance arrangements within savings and efficiency workstreams, including the availability of documentation and records of decision?making. Members highlighted that, in previous years, questions had been raised about the absence of formally recorded minutes or outputs from efficiency?related boards or working groups. It was noted that the audit plan included provisions to revisit savings and efficiency governance, and Members stressed the importance of this work in the context of ongoing financial pressures.

The Committee also discussed the relationship between the Internal Audit Plan and the Council’s wider performance management framework. Questions were raised about whether the audit programme would adequately test how performance information was used to support decision?making and scrutiny. Officers confirmed that the Council operated a quarterly performance management framework and that Internal Audit would draw upon this intelligence where relevant. Members requested that further information on the performance reporting framework be shared to support their understanding of how performance assurance aligned with audit activity.

During debate, Members returned to concerns expressed under the previous agenda item regarding officer attendance at meetings. It was noted that the Internal Audit Plan set out a robust programme of work, but effective scrutiny of audit outcomes depended on the availability of senior officers with appropriate responsibility and knowledge to respond to Members’ questions. The Committee reiterated that this issue affected not only the progress report but also consideration of forward audit planning, as Members needed confidence that future findings would be fully explained and addressed.

Further discussion took place regarding the inclusion of management tasks within the audit plan, particularly those relating to the quality, preparation and presentation of reports. Members expressed frustration that, despite repeated discussions, committee reports often remained lengthy, technical and difficult to interrogate effectively. The Committee emphasised that improvements in report quality were essential to support meaningful scrutiny and governance assurance.

The Committee acknowledged the breadth of the proposed audit coverage and welcomed the continued emphasis on collaboration with senior leadership and alignment with the Council’s strategic risk profile. Members recognised the professional judgement applied in developing the Plan and agreed that, subject to the issues raised during discussion, it provided an appropriate basis for assurance activity during the forthcoming year.

Resolved:

That the Internal Audit Annual Plan for 2026/27 be noted.