To report progress on the external audit of the council’s 2025/26 draft financial statements.

The committee received an update on the progress of the external audit of the council’s 2025/26 draft financial statements. The following principal points were noted.

1. The draft accounts were published ahead of the statutory deadline, and the audit therefore had started earlier than planned.
2. Audit work was progressing in line with the agreed timetable, with no material errors or significant concerns identified to date.
3. Grant Thornton confirmed their intention to complete the audit in time for the audit findings report and audit opinion to be presented to the committee in September 2026, enabling publication of the audited accounts ahead of the statutory deadline.
4. Value for money work was ongoing, and no public enquiries had been received during the public inspection period for the accounts.

In response to questions, it was noted.

1. Grant Thornton advised that it had experience of both in-house and externally provided internal audit arrangements and had not observed any significant difference in the quality of work delivered, although it could not comment on potential cost implications.
2. The main audit change for 2025/26 related to revised requirements for the valuation of property, plant and equipment, including the use of indexation between cyclical valuations. It was explained that specialist external valuers provided the indices used by the council and noted that the changes were intended to reduce the audit burden across the sector. It was further noted that annual changes to the CIPFA code of practice may result in future amendments to accounting and audit requirements.
3. In relation to the transfer of the public realm contract from Balfour Beatty to M Group, it was confirmed that this would have no impact on the 2025/26 accounts, as the contract change took effect after the financial year-end.

The chairperson on behalf of the committee thanked the finance team and auditors for their work in preparing and progressing the accounts.

The committee noted the report.