Agenda and draft minutes

To confirm the minutes of the previous meeting.

It was moved by Councillor Webber-Jones, seconded by Councillor Flemming and

                        RESOLVED – the minutes of the meeting held on 26 November                         2025 be confirmed as a correct record.

To receive verbally from members any disclosures which they are required to make in accordance with the Council’s code of conduct or in pursuance of Section 106 of the Local Government Finance Act 1992. This is in addition to the need for such disclosure to be also given when the relevant matter is reached on the agenda.

There were no interests declared at this meeting.

Report of Azets – External Auditor

Members were provided with an overview of Azets’ annual report for the year ended 31 March 2025 that covered their opinion on the financial statements including key findings and risk testing, Value For Money commentary on financial sustainability, and Governance and improving the economy for efficiency and effectiveness. Concerns were also raised around capacity within the finance team to respond effectively to external audit processes.

In response to questions from members, officers confirmed that:

-       The capacity issue had been raised and was being considered by management;

-       HBBC’s position regarding the accounts would not affect the Community Governance review for a new Hinckley Town Council and any transfer of budgets and services that would be required;

-       To get a clean opinion HBBC would need 3 years of clean balance sheets and the council’s position was currently where the external auditors confirmed they should be at this juncture.

Members acknowledged that a great deal of work had gone into this and asked about Local Government Reorganisation and how it would be affected if HBBC didn’t get a clean audit by the time the authority didn’t exist. The external auditor confirmed that they hadn’t yet been advised of the answer to this should the situation arise.

It was moved by Councillor Webber-Jones, seconded by Councillor Pendlebury and

                        RESOLVED –

(i)            The report and actions in place to address the recommendations made be noted;

(ii)          The positive movement since the last report that had found significant weakness in the Value for Money assessment be noted.

To present to members an update on the financial statements for 2024/25 and Annual Governance Statement that are currently being finalised

Members were presented with an update on the financial statements for 2024/2025 and Annual Governance Statement that were currently being finalised.

It was moved by Councillor Webber-Jones, seconded by Councillor Williams and

                    RESOLVED –

(i)              The Financial Statements and Annual Governance Statement for 2024/2025 subject to completion of the final element of external audit process be noted and approved for publication; and

(ii)             Delegated authority be given to the Chair of Audit Committee to approve the final 2024/25 Statement of Accounts once the audit is completed.

Report of the internal auditor

Members were presented with the Internal Audit 2024/25 annual draft report. and the audit findings in respect of each review, together with recommendations for action and the management responses were set out in the detailed report.

In response to questions from members, officers confirmed that the outstanding draft report would be completed once management responses had been completed.

It was moved by Councillor Lambert, seconded by Councillor Gibbens and

                        RESOLVED the report be noted.

Report from  Forvis Mazars – Internal Auditor

Members were presented with the Service Level budget Monitoring report for 2025/2026 that assessed the design and effectiveness of the control framework for service level budget monitoring within HBBC.

In response to questions from members, officers confirmed that:

-       Refresher training was in the process of being organised along with training for budget holders on the budget process.

It was moved by Councillor Webber-Jones, seconded by Councillor Williams and

                        RESOLVED – the report be noted.

Report of Forvis Mazars – Internal Auditor

Members were presented with an update on the current position of the delivery of the 2025/26 internal audit plan.

Officers confirmed this would be delivered in line with reporting cycles for 2025/26.

It was proposed by Councillor Webber-Jones, seconded by Councillor Williams and

                    RESOLVED – the report be noted.

Members to note the Forward Plan

Members were updated that currently work was being undertaken by the Scrutiny Commission on action planning and best practice guidance to ensure that the work of both Audit Committee and the Scrutiny Commission were aligned. Coming out of this work there may be an item to propose to bring to committee, which would need allocating to a meeting at an appropriate time.

Members noted the forward plan.