Hampshire County Council
Councillors:
78
Wards:
76
Committees:
49
Meetings (2026):
57
Meetings (2025):
155
Meeting
Audit Committee - Hampshire
Meeting Times
Scheduled Time
Start:
Friday, 27th June 2025
10:00 AM
Friday, 27th June 2025
10:00 AM
End:
Friday, 27th June 2025
2:00 PM
Friday, 27th June 2025
2:00 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
27 Jun 2025
27 Jun 2025
Location:
Mitchell Room - HCC
Mitchell Room - HCC
Meeting Attendees
Committee Member
Committee Member
Conservative Group Vacancy
Expected
Agenda
1
Apologies for absence
To receive any apologies for absence.
Minutes
Apologies were received from Councillors Stuart Bailey and Steven Broomfield. Councillor Tom Thacker attended as the Conservative deputy.
2
Declarations of Interest
All Members who believe they have a Disclosable Pecuniary Interest in any matter to be considered at the meeting must declare that interest and, having regard to Part 3 Paragraph 1.5 of the County Council's Members’ Code of Conduct, leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore all Members with a Personal Interest in a matter being considered at the meeting should consider, having regard to Part 5, Paragraph 4 of the Code, whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, consider whether it is appropriate to leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with the Code.
Minutes
Members were mindful that where they believed they had a Disclosable Pecuniary Interest in any matter considered at the meeting they must declare that interest at the time of the relevant debate and, having regard to the circumstances described in Part 3, Paragraph 1.5 of the County Council's Members' Code of Conduct, leave the meeting while the matter was discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore Members were mindful that where they believed they had a Non-Pecuniary interest in a matter being considered at the meeting they considered whether such interest should be declared, and having regard to Part 5, Paragraph 2 of the Code, considered whether it was appropriate to leave the meeting whilst the matter was discussed, save for exercising any right to speak in accordance with the Code.
No declarations were made.
No declarations were made.
3
Minutes of previous meeting held on 5 March 2025
To confirm the minutes of the previous meeting held on 5 March 2025.
Attachments:
- Document Minutes Public Pack, 05/03/2025 Audit Committee 19 Jun 2025
Minutes
The minutes of the meeting held on 5 March 2025 were agreed as a correct record.
4
Deputations
To receive any deputations notified under Standing Order 12.
Minutes
There were no deputations on this occasion.
5
Chairman's Announcements
To receive any announcements the Chairman may wish to make.
Minutes
The Chairman welcomed Andrew Brittain to his first meeting having replaced Kevin Suter at Ernst and Young. The Chairman indicated he would write to Mr Suter expressing his gratitude for his service to this Committee.
He congratulated Councillor Stuart Bailey on his recent election to the County Council. In Councillor Bailey’s absence, the Chairman asked Councillor House to convey his best wishes. Congratulations were also offered to Andy Lowe who had recently been appointed the Director of Corporate Operations, following the retirement of Rob Carr.
Through the Chairman, the Director of Corporate Operations expressed his gratitude to members for completing the Training Survey. For those who had not yet responded, the Committee agreed to a two-week extension.
He congratulated Councillor Stuart Bailey on his recent election to the County Council. In Councillor Bailey’s absence, the Chairman asked Councillor House to convey his best wishes. Congratulations were also offered to Andy Lowe who had recently been appointed the Director of Corporate Operations, following the retirement of Rob Carr.
Through the Chairman, the Director of Corporate Operations expressed his gratitude to members for completing the Training Survey. For those who had not yet responded, the Committee agreed to a two-week extension.
6
Information Compliance - Use of Regulated Investigatory Powers Q4 and Annual Summary
To consider a report of the Director of Universal Services detailing the annual data for 2024/25 and provide a narrative regarding the County Council’s use of regulated investigatory powers in respect of Quarter 4 (January-March 2025).
Attachments:
- Document 6 2025-June 2025 - Audit Committee - Regulation of Investigatory Powers Act (RIPA) report Q4 19 Jun 2025
- Document 6i RIPA figures - Audit Committee - Q4 - 2024-2025 19 Jun 2025
Minutes
The Committee considered a report of the Director of Universal Services regarding use of Regulated Investigatory Powers for Q4 and Annual Summary (Item 6 in the Minute Book).
The Head of Trading Standards advised that there had been no use of its powers during Q4. However, it was anticipated that there would be a need to consider and authorise limited surveillance activities in future in respect of investigating the sale of vapes to young people. It was noted that the ban on single use vapes came into effect on 1 June 2025 and it was hoped that this would reduce the demand by young people as well as reducing the waste from disposable vapes.
Members were made aware that work was being carried out by the Information and Governance team to provide additional assurance that there was no unauthorised surveillance activity being conducted by other services within the Council. It was expected that details of this work would be brought to a future meeting.
RESOLVED:
That the Audit Committee received and noted the data/narrative regarding the County Council’s use of surveillance powers.
The Head of Trading Standards advised that there had been no use of its powers during Q4. However, it was anticipated that there would be a need to consider and authorise limited surveillance activities in future in respect of investigating the sale of vapes to young people. It was noted that the ban on single use vapes came into effect on 1 June 2025 and it was hoped that this would reduce the demand by young people as well as reducing the waste from disposable vapes.
Members were made aware that work was being carried out by the Information and Governance team to provide additional assurance that there was no unauthorised surveillance activity being conducted by other services within the Council. It was expected that details of this work would be brought to a future meeting.
RESOLVED:
That the Audit Committee received and noted the data/narrative regarding the County Council’s use of surveillance powers.
7
Annual Governance Statement
To consider a report of the Director of People and Organisation seeking approval of the Annual Governance Statement for 2024-25.
Attachments:
- Document 7 Annual Governance Statement Cover Report 24-25 19 Jun 2025
- Document 7i Annual Governance Statement 2024-25 Clean 19 Jun 2025
Minutes
The Committee considered a report of the Directors of People and Organisation and Corporate Operations and the Monitoring Officer regarding the Annual Governance Statement (Item 7 in the Minute Book).
It was reported that the draft Statement followed the format of previous Annual Governance Statements and that whilst the whole Statement had been reviewed, the most significant changes could be found in Paragraphs 3, 6 and 7. Members were made aware of the review process, the action plan, and the importance of continuous improvement.
During the discussion, it was confirmed that the Hampshire Pledge sets out the County Council’s commitments to residents to deliver quality essential public services and was part of the Strategic Plan for 2025.
Members confirmed their support for the Annual Governance Statement and it was therefore.
RESOLVED:
That the Audit Committee approve the 2024-25 Annual Governance Statement.
It was reported that the draft Statement followed the format of previous Annual Governance Statements and that whilst the whole Statement had been reviewed, the most significant changes could be found in Paragraphs 3, 6 and 7. Members were made aware of the review process, the action plan, and the importance of continuous improvement.
During the discussion, it was confirmed that the Hampshire Pledge sets out the County Council’s commitments to residents to deliver quality essential public services and was part of the Strategic Plan for 2025.
Members confirmed their support for the Annual Governance Statement and it was therefore.
RESOLVED:
That the Audit Committee approve the 2024-25 Annual Governance Statement.
8
Annual Internal Audit Conclusion Report
To consider a report of the Chief Internal Auditor detailing the Annual Internal Audit Conclusion for 2024-25 in accordance with the requirements of the Public Sector Internal Audit Standards.
Attachments:
- Document 8 Annual Internal Audit Conclusion 2024-25 - Cover Report 19 Jun 2025
- Document 8i Appendix A - Annual Internal Audit Conclusion Report 2024 -25 19 Jun 2025
Minutes
The Committee considered a report of the Chief Internal Auditor regarding the Annual Internal Audit Conclusion Report for 2024/24 (Item 8 in the Minute Book).
The Chief Internal Auditor presented the key findings of the report, noting that it continued to offer reasonable assurance across the organisation, based on a range of audit opinions. The majority of reviews concluded with reasonable assurance, with a number achieving substantial assurance, some limited, and one resulting in no assurance. It was acknowledged that these outcomes reflect the open and constructive planning discussions that have taken place across the directorates. It was noted that representatives from each of the Directorates were in attendance to respond to specific queries.
During questions, Members heard:
· Management actions had been taken regarding the “no” assurance review which included tighter record keeping and digitalisation of kept records. Members were assured that lessons had been learnt from this and had been applied across the Directorate. The management actions for this review would be monitored through to completion and reported in the regular progress reports. A follow up review will also be considered.
· 80% of the Plan had been delivered, the remainder of the audits for 2024 would carry forward and be incorporated within this year's annual conclusion. The delay was in part due some comprehensive complex reviews at the end of the year. Assessments of the Plan were regularly carried out to enable reviews to be carried out at the appropriate time.
RESOLVED:
That the Audit Committee noted the Annual Internal Audit Conclusion report for 2024-25.
The Chief Internal Auditor presented the key findings of the report, noting that it continued to offer reasonable assurance across the organisation, based on a range of audit opinions. The majority of reviews concluded with reasonable assurance, with a number achieving substantial assurance, some limited, and one resulting in no assurance. It was acknowledged that these outcomes reflect the open and constructive planning discussions that have taken place across the directorates. It was noted that representatives from each of the Directorates were in attendance to respond to specific queries.
During questions, Members heard:
· Management actions had been taken regarding the “no” assurance review which included tighter record keeping and digitalisation of kept records. Members were assured that lessons had been learnt from this and had been applied across the Directorate. The management actions for this review would be monitored through to completion and reported in the regular progress reports. A follow up review will also be considered.
· 80% of the Plan had been delivered, the remainder of the audits for 2024 would carry forward and be incorporated within this year's annual conclusion. The delay was in part due some comprehensive complex reviews at the end of the year. Assessments of the Plan were regularly carried out to enable reviews to be carried out at the appropriate time.
RESOLVED:
That the Audit Committee noted the Annual Internal Audit Conclusion report for 2024-25.
9
External Quality Assessment Arrangements
To consider a report of the Head of Southern Internal Audit Partnership providing an overview of the alternative options considered in commissioning an external assessor to undertake the pending independent assessment of the Southern Internal Audit Partnership against the Global Internal Audit Standards in the UK Public Sector.
Attachments:
- Document 9 External Quality Assessment 2025 - Cover Report 19 Jun 2025
Minutes
The Committee considered a report of the Chief Internal Auditor (Item 9 in the Minute Book) regarding the arrangements for the External Quality Assessment.
The Chief Internal Auditor outlined the key points within the report and confirmed that the Southern Internal Audit Partnership would compile a full self-assessment against the Global Internal Audit Standards in the UK Public Sector during July/August 2025 in preparedness for the external assessor. The assessor would complete its report which would be presented to the first meeting of this Committee in 2025.
RESOLVED:
That the Audit Committee notes arrangements for the pending external assessment of the Southern Internal Audit Partnership against the Global Internal Audit Standards in the UK Public Sector.
The Chief Internal Auditor outlined the key points within the report and confirmed that the Southern Internal Audit Partnership would compile a full self-assessment against the Global Internal Audit Standards in the UK Public Sector during July/August 2025 in preparedness for the external assessor. The assessor would complete its report which would be presented to the first meeting of this Committee in 2025.
RESOLVED:
That the Audit Committee notes arrangements for the pending external assessment of the Southern Internal Audit Partnership against the Global Internal Audit Standards in the UK Public Sector.
10
Internal Audit Strategy
To consider a report of the Head of Southern Internal Audit Partnership detailing the Internal Audit Strategy 2025–2028.
Attachments:
- Document 10 Internal Audit Strategy 2025-28 - Cover Report 19 Jun 2025
- Document 10i Appendix A - SIAP - Internal Audit Strategy 2025-28 19 Jun 2025
- Document 10ii Appendix B - Feedback & Prioritisation of Objectives 19 Jun 2025
Minutes
The Committee considered a report of the Chief Internal Auditor regarding the Internal Audit Strategy for 2025-2028 (Item 10 in the Minute Book).
The Chief Internal Auditor presented the report and in doing so informed members of the methodology used to confirm the objectives to be used in Southern Internal Audi Partnership’s (SIAP) Internal Audit Strategy.
It was confirmed that progress on the Strategy and its objectives would be presented to this Committee through SIAPs regular progress reports.
RESOLVED:
That the Committee notes the Internal Audit Strategy for 2025-28.
The Chief Internal Auditor presented the report and in doing so informed members of the methodology used to confirm the objectives to be used in Southern Internal Audi Partnership’s (SIAP) Internal Audit Strategy.
It was confirmed that progress on the Strategy and its objectives would be presented to this Committee through SIAPs regular progress reports.
RESOLVED:
That the Committee notes the Internal Audit Strategy for 2025-28.
11
EXTERNAL AUDIT: HCC AND PENSION FUND Annual Report for 2023/24
To receive the external auditor’s annual report for Hampshire County Council and Hampshire PensionFund for the year ending 31 March 2024.
Attachments:
- Document 11 Auditor's Annual Cover Report 2023.24 19 Jun 2025
- Document 11i HCC - LG Auditors Annual Report (AAR) 23-24 - FINAL 19 Jun 2025
Minutes
The Committee considered a report from Ernst and Young (EY) regarding the annual report for Hampshire County Council and the Hampshire Pension Fund for 2023/24 (Item 11 in the Minute Book).
It was confirmed that once the National Audit Office had completed and signed-off on the whole of government accounts, EY would be able to issue the audit certificate, which completes the audit responsibilities for that year.
RESOLVED:
That the Audit Committee receives and notes the External Auditor’s Annual Report for year ending 31 March 2024.
It was confirmed that once the National Audit Office had completed and signed-off on the whole of government accounts, EY would be able to issue the audit certificate, which completes the audit responsibilities for that year.
RESOLVED:
That the Audit Committee receives and notes the External Auditor’s Annual Report for year ending 31 March 2024.
12
EXTERNAL AUDIT: Hampshire County Council Provisional Audit Planning Report 2024/25
To receive the external auditors report for Hampshire County Council for the year ending 31 March 2025.
Attachments:
- Document 12 Provisional Audit Planning Cover Report 2024.25 19 Jun 2025
- Document 12i HCC 2024-25 Provisional Audit Planning Report 19 Jun 2025
Minutes
The Committee considered a report of the external auditors regarding the County Council’s provisional Audit Planning Report for the year ending 31 March 2025 (Item 12 in the Minute Book).
The Auditor highlighted the main areas of focus, including the implementation of IFRS 16, the management of accruals, and the introduction of group accounts for Manydown Garden Communities LLP.
During the presentation, it was confirmed that:
· The report was provisional as planning work was ongoing.
· Changes for 2024.25 were: IFRS 15/16, MOSAIC, and purchase of Manydown land.
· Value for Money was based on what arrangements were in place for delivering VFM.
RESOLVED:
That the Audit Committee receives and notes the Provisional Audit Planning Report for year ending 31 March 2025.
The Auditor highlighted the main areas of focus, including the implementation of IFRS 16, the management of accruals, and the introduction of group accounts for Manydown Garden Communities LLP.
During the presentation, it was confirmed that:
· The report was provisional as planning work was ongoing.
· Changes for 2024.25 were: IFRS 15/16, MOSAIC, and purchase of Manydown land.
· Value for Money was based on what arrangements were in place for delivering VFM.
RESOLVED:
That the Audit Committee receives and notes the Provisional Audit Planning Report for year ending 31 March 2025.
13
EXTERNAL AUDIT: Hampshire Pension Fund Provisional Audit Planning Report 2024/25
To receive the external auditors report for Hampshire Pension Fund for the year ending 31 March 2025.
Attachments:
- Document 13 Provisional Audit Planning HPF Cover Report 2024.25 19 Jun 2025
- Document 13i Hampshire Pension Fund - Provisional Audit Plan 24.25 19 Jun 2025
Minutes
The Committee considered a report from the external auditors on the provisional Audit Planning Report for the Hampshire Pension Fund for 2024/25 (Item 13 in the Minute Book).
Members discussed the audit timetable, the challenges of clearing backlogs, and the importance of timely financial reporting. During the discussion, the Director of Corporate Operations confirmed that the triennial evaluation of the Fund would undertake a climate assessment.
RESOLVED:
That the Audit Committee receives and notes the Provisional Audit Planning Report for Hampshire Pension Fund for year ending 31 March 2025.
Members discussed the audit timetable, the challenges of clearing backlogs, and the importance of timely financial reporting. During the discussion, the Director of Corporate Operations confirmed that the triennial evaluation of the Fund would undertake a climate assessment.
RESOLVED:
That the Audit Committee receives and notes the Provisional Audit Planning Report for Hampshire Pension Fund for year ending 31 March 2025.
14
Treasury Management Outturn report 2024/25
To consider a report of the Director of Corporate Operations giving an update on the performance of the treasury management function during 2024/25.
Attachments:
- Document 11 Audit Cttee - 27 June 2025 HCC TM Outturn Report 202425 19 Jun 2025
Minutes
The Committee considered a report of the Director of Corporate Operations regarding the Treasury Management Outturn report for 2024/25 (Item 14 in the Minute Book).
The Director reported on the performance of the treasury management function during 2024/25, including the effects of the decisions taken and the
transactions executed in the past year.
It was confirmed that all treasury activity had complied with the County Council’s Treasury Management Strategy and Investment Strategy for 2024/25 and all relevant statute, guidance and accounting standards. In addition, support in undertaking treasury management activities had been provided by the County Council’s treasury advisers, Arlingclose.
Since publication of this report, the County Council had been advised that the Dedicated Schools Grant deficit override had been extended by two years to the end of 2027/28, whilst ministers consult on reforms to the funding formulas which determine Council's government funding. The County Council would continue to communicate with the government regarding this issue.
During the discussion, the impact of the Dedicated Schools Grant deficit was also explained.
RESOLVED:
That the Audit Committee note the following recommendation being reported to Cabinet:
· That the outturn review of treasury management activities be noted.
The Director reported on the performance of the treasury management function during 2024/25, including the effects of the decisions taken and the
transactions executed in the past year.
It was confirmed that all treasury activity had complied with the County Council’s Treasury Management Strategy and Investment Strategy for 2024/25 and all relevant statute, guidance and accounting standards. In addition, support in undertaking treasury management activities had been provided by the County Council’s treasury advisers, Arlingclose.
Since publication of this report, the County Council had been advised that the Dedicated Schools Grant deficit override had been extended by two years to the end of 2027/28, whilst ministers consult on reforms to the funding formulas which determine Council's government funding. The County Council would continue to communicate with the government regarding this issue.
During the discussion, the impact of the Dedicated Schools Grant deficit was also explained.
RESOLVED:
That the Audit Committee note the following recommendation being reported to Cabinet:
· That the outturn review of treasury management activities be noted.
15
Minutes of the Hampshire Pension Fund Panel and Board Meeting - 25 February 2025 (Less Exempt)
To receive the non-exempt minutes of the Hampshire Pension Fund Panel and Board meeting held on 25 February 2025.
Attachments:
- Document Minutes Public Pack, 25/02/2025 Hampshire Pension Fund Panel and Board 19 Jun 2025
Minutes
The Committee received and noted the non-exempt minutes of the Hampshire Pension Fund and Board meeting held on 25 February 2025 (Item 15 in the Minute Book).
16
Exclusion of the Press and Public
To resolve that the public be excluded from the meeting during the following item of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during this item there would be disclosure to them of exempt information within Paragraphs 3 of Part 1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the cases, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the exempt minutes.
Minutes
The press and public were excluded from the meeting during the following item of business, as it was likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items there would have been disclosure to them of exempt information within Paragraphs 3 and 5 of Part I Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information, for the reasons set out in the minutes.
17
Minutes of the Hampshire Pension Fund Panel and Board Meeting Minutes of the Hampshire Pension Fund Panel and Board Meeting - 25 February 2025 (Exempt)
To receive the exempt minutes of the Hampshire Pension Fund Panel and Board meeting held on 25 February 2025.
Attachments:
- Document Minutes Private Pack, 25/02/2025 Hampshire Pension Fund Panel and Board 19 Jun 2025
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