Audit Committee minutes

Decided · A decision has been taken.

These are the minutes of the Audit Committee meeting held on 5 March 2026. p1

Members approved the minutes of the previous meeting, held on 23 February 2026, as a true record. p3

The Committee noted the Internal Audit Progress Report for Quarter 3, October to December 2025, and agreed to consider any further action needed on the issues it raised. p4p5

The Committee approved the Council's Internal Audit Strategy, Internal Audit Plan and Audit Charter for 2026/27. p6

The Committee resolved to recommend to Cabinet and full Council that the Council approve the Treasury Management Strategy, Minimum Revenue Provision Policy and Capital Strategy for 2026/27. p8

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• p1Audit Committee — minutes of the meeting on 05/03/2026
• p331. Declarations of interest None 32. Minutes of the last meeting RESOLVED – that the minutes of the meeting held on 23 rd February 2026 be approved as a true record.
• p433. Internal Audit Progress Report - Quarter 3 (October 2025 - December 2025) The Audit Manager explained the report is an update on all the audits completed in quarter 3. The team are still working towards a partial assurance opinion. There has been a follow up on the corporate credit card audit with support and guidance given. The HR recruitment and retention audit has been completed with a reasonable assurance given. The Cash and Bank audit has been given a partial assurance. The actions were implemented from the draft report, and this may have given a reasonable assurance by the time the report was finalised. Credit was given to Rita and the team. The temporary accommodation follow up remains partial. This is because there's a number of key policies that need to be fully implemented. With Counter fraud and investigation activities an investigation has taken place with a control report being completed. There has been an amendment to the annual plan to include a follow-up to the Declarations of Interests, Gifts and Hospitality. The KPI’s are mostly green with the aim for the audit plan to be green by the end of the month. Councillor Horn asked regarding a vacancy control process. The Audit Manager explained the vacancy control process checks weather the organisation has visibility over where all its vacancies are? The Chief finance Officer explained HR team have a system and finance have a system, and there are reconciliations between the two as part of budget setting. Councillor Sinden asked what was happening about the new governance arrangements for the Hasting Housing Company. The Audit Manager explained internal audit are looking at the governance arrangements from a control perspective providing support to the programme. The Chief Finance Officer explained that the Hasting Housing Company is being closed as per the Full Council decision. Thanks were given to Tony and Danny for their work around improving the governance.
• p5The Chair and the committee also gave their thanks. Councillor Horn asked regarding the investigation and if the process was review of deciding who gets placed where in temporary accommodation. The Audit Manager explained the focus was to set very clear and strategic objectives for an investigation. The Chief Finance Officer explained discussions are taking place to work with a fraud investigation team. The Chair asked regarding the lack of application process and due diligence checks when applying to become a Temporary Accommodation landlord. Mark explained that actions have been agreed for all the findings and high actions would be action tracked in the usual manner. The Chair asked regarding the Cash and Bank audit and a previous officer having access to a bank account. Mark explained the officer would not have been able to login to the account but were still visible due to an incomplete removal process. The Chief Finance Officer explained the login hardware had been returned when the member of staff had left the council. RESOLVED (unanimously) Note the report and consider any further action required in response to the issues raised. Reasons 1. To support the Committee’s responsibilities for assessing the effectiveness of the internal control environment and the effectiveness of the Internal Audit service. 2. To comply with the requirements set out in the Global Internal Audit Standards
• p634. Internal Audit Strategy, Internal Audit Plan and Audit Charter 2026/27 The Audit Manager introduced the report. The committee met informally and helped put together the audit plan which is good practice. The focus of this audit plan for this year remains on follow up reviews, key financial systems and other key governance areas. This has been presented to SLT and no issues were raised. Areas highlighted were Income charges, debtors, fleet management procurement arrangements, Members' allowances and expenses, proactive counter fraud work, continue to support major change programmes, transformation and shared services board. It is unknow how much of the plan will be deliverable due to LGR with the potential of moving to a support role. This would be discussed at the time with the committee. The Chair asked regarding LGR and if the move would be audited. The Chief Finance Officer explained that each council’s audit plan will be different. The general timelines with LGR are very tight and will impact officer capacity. Councillor Horn asked if discussions are taking with other local councils. The Chief Finance Officer explained that discussions have already started and once LGR plans and dates are confirmed then further discussions will take place. The Council are further ahead than some others due to meetings taking place with other councils over the last few years. The Audit Manager explained it will take some years for the different council systems to merge. Councillor Sinden asked regarding debtors and improvements being made over the last few years. The Audit Manager agreed the polices are improving and the follow up work are showing these improvements. The Chief Finance Officer highlighted the added value of the internal audit team. RESOLVED (unanimously) Approve the Council’s Internal Audit Strategy, Internal Audit Plan and Audit Charter for 2026/27. Reasons 1. To comply with the requirements set out in the 2024 Global Internal Audit Standards. 2.
• p835. Treasury Management Strategy and Capital Strategy 2026/27 The Chief Finance Officer gave an introduction and explained it is for the committee consider the Treasury Management Strategy, Annual Investment Strategy, Minimum Revenue Provision (MRP) Policy and Capital Strategy and make recommendations to full Council as appropriate. Councillor Sinden asked what impact an interest rate change of 1% will have. The Chief Finance Officer explained if you want to borrow then interest rates going up is not good. If you have money, then an increase of 1% is good. The Chair asked regarding Energy and it being unallocated. The Chief Finance Officer explained its regarding energy initiatives. The Chair asked regarding Community Municipal Investments. The Chief Finance Officer explained CMIs are seen as an accessible way for people to participate in supporting local Net Zero strategies who otherwise would be reluctant to engage in deliberative public forums. The Council is considering using a third party for this in the future if it goes ahead with it. RESOLVED (unanimously) That the Audit Committee recommends to Cabinet and full Council that: The Council approve the Treasury Management Strategy, Minimum Revenue The strategies listed are updated as necessary during 2026/27 in the light of changing and emerging risks and the Council’s evolving future expenditure plans. Reasons The Council seeks to minimise the costs of borrowing and maximise investment income whilst ensuring the security of its investments. The 2025/26 Budget included significant reductions in the Capital Programme to help the Council address its financial deficit including agreeing to asset sales, with the primary focus being on financial stability and addressing the housing crisis. The CIPFA Treasury Management Code of Practice, previously adopted by the Council, takes account of the more commercialised approach being adopted by councils and the enhanced levels of transparency required.