Audit Committee - 22 May 2026

At the meeting, Councillor Magowan was re-elected as Chairman and Councillor Boase as Vice Chairman of the Audit Committee. The committee approved the minutes of the previous meeting and established an Appointments Panel, comprising three committee members including the Chairman, to co-opt a second Independent Lay Member. Officers were asked to seek advice on whether the current Independent Lay Member could serve on the recruitment panel, with panel membership to be confirmed by the Chairman following expressions of interest.

The committee received presentations from three council-owned companies on their assurance arrangements. Cornwall Housing Limited reported that audit activity had been refined to focus on higher-risk areas, with strengthened pre-audit scoping and a forward plan prioritising damp, mould, and property standards compliance. Celtic Sea Power outlined its ISO 9001-based assurance framework, noting recent external certification with no non-conformities and a focus on cybersecurity as a key risk. Corserv Limited highlighted operational risks including health and safety, safeguarding, and airport operations, with assurance activities aligned to these areas. The committee noted that governance arrangements for all companies were considered robust, with external audit providing additional assurance where needed.

The committee considered the External Audit Plan for Cornwall Council for 2025/26 and the Cornwall Pension Fund Audit Plan for 2025/26. For the Council audit, significant risks included management override, asset valuation, pension liabilities, and revenue recognition. Auditors confirmed the Council was in a strong position to meet submission deadlines, though future deadlines were tightening. The Pension Fund audit identified valuation of complex investments and management override as significant risks, with materiality set at 2% of gross assets. The committee noted the audit plans and the positive progress in collaboration between internal and external audit functions.

The committee approved the draft Annual Governance Statement for 2025/26 for publication alongside the Statement of Accounts, with a final version to be brought back after external audit. The statement identified no significant weaknesses in most areas, but noted improvement actions relating to financial sustainability, governance of council-owned entities, and gifts and hospitality recording. The committee also received the Chief Internal Auditor’s annual report, which gave an overall opinion of reasonable assurance. Discussions highlighted resourcing pressures on internal audit, the need for clearer terminology in reporting, and ongoing risks around financial resilience and delivery of savings. The committee approved the Internal Audit Plan for 2026/27, along with updated policies on fraud, corruption, anti-money laundering, and whistleblowing. Finally, the committee approved its own Annual Report and Work Programme for 2026/27, with a self-assessment showing medium-to-high scores across most areas.