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, 23rd January 2026
10:00 AM
Friday, 23rd January 2026
10:00 AM
End:
Friday, 23rd January 2026
2:00 PM
Friday, 23rd January 2026
2:00 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
23 Jan 2026
23 Jan 2026
Location:
Mitchell Room - HCC
Mitchell Room - HCC
Meeting Attendees
Vice-Chairman
Councillor Tim Davies
Apologies
Committee Member
Councillor Stephen Parker
Present, as expected
Conservative Deputy
Councillor Ryan Brent
Not required
Chairman
Councillor Derek Mellor
Present, as expected
Committee Member
Councillor Mark Kemp-Gee
Present, as expected
Committee Member
Councillor Peter Latham
Hampshire County Council
Present, as expected
Committee Member
Councillor Malcolm Wallace
Apologies
Co-opted Member
Satinder Jas
Independent Co-opted Member
Present, as expected
Co-opted Member
Madhu Panue
Independent Co-opted Member
Apologies
Agenda
1
Apologies for absence
To receive any apologies for absence.
Minutes
Apologies were received from Councillors Malcolm Wallace and Tim Davies, as well as from the new independent co?opted member, Madhu Panue.
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 5 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 of interest were made at this meeting.
No declarations of interest were made at this meeting.
3
Minutes of previous meeting held on 25 September 2025
To confirm the minutes of the previous meeting held on 25 September 2025.
Attachments:
- Document Minutes Public Pack, 25/09/2025 Audit Committee 15 Jan 2026
Minutes
The minutes of the meeting were agreed as a correct record.
4
Deputations
To receive any deputations notified under Standing Order 12.
Minutes
The Committee received no deputations at this meeting.
5
Chairman's Announcements
To receive any announcements the Chairman may wish to make.
Minutes
The Chairman reported that he had been interviewed by the external assessor and provided comments regarding the Internal Audit function. He also mentioned that he had met with the Chief Internal Auditor, noting that this exercise had provided valuable insights into internal audit standards across the Council.
The Chairman had also attended a Local Government Association session for Audit Committee Chairs focusing on CIPFA guidance and sector developments.
He also provided an update on proposed training for members relating to fraud risk and cyber security. While acknowledging the rising sector wide challenges in these areas, it was noted that this would take place following the County Council’s elections.
The Chairman had also attended a Local Government Association session for Audit Committee Chairs focusing on CIPFA guidance and sector developments.
He also provided an update on proposed training for members relating to fraud risk and cyber security. While acknowledging the rising sector wide challenges in these areas, it was noted that this would take place following the County Council’s elections.
6
Information Compliance - Use of Regulated Investigatory Powers
To receive the quarterly update on the County Council’s use of regulated investigatory powers.
Attachments:
- Document 2 2026 January 2026 Audit Committee Regulation of Investigatory Powers Act (RIA) report Q2 15 Jan 2026
- Document 2i RIPA figures - Audit Committee - 2025-26 Q2 15 Jan 2026
Minutes
The Head of Trading Standards presented an overview of surveillance activity undertaken during Quarter 2 (July to September 2025). Members were informed that covert techniques continued to be used sparingly and only as a last resort, with all activity rigorously assessed for necessity and proportionality. It was noted that judicial approval being obtained and with reviews and cancellation on completion being recorded in the central register.
The report highlighted a targeted under-age test purchase operation involving the use of a covert camera. Of the four premises visited, two sold vaping products illegally to a minor. It also showed one application for communications data
Members welcomed the assurance that policies had been followed correctly and that governance arrangements remained sound. They were advised that emerging considerations relating to artificial intelligence might necessitate policy updates in the coming year.
RESOLVED:
That the Audit Committee received and noted the data and narrative regarding the County Council’s use of surveillance powers as set out in the report.
The report highlighted a targeted under-age test purchase operation involving the use of a covert camera. Of the four premises visited, two sold vaping products illegally to a minor. It also showed one application for communications data
Members welcomed the assurance that policies had been followed correctly and that governance arrangements remained sound. They were advised that emerging considerations relating to artificial intelligence might necessitate policy updates in the coming year.
RESOLVED:
That the Audit Committee received and noted the data and narrative regarding the County Council’s use of surveillance powers as set out in the report.
7
EXTERNAL AUDIT - HCC AUDIT RESULTS REPORT 2024/25
To receive and note the external auditors report for Hampshire County Council for the year ending 31 March 2025.
Attachments:
- Document 7 ExternalAuditReportHCC Cover Rpt 15 Jan 2026
- Document 7i Hampshire County Council Audit Results Report 2024-25 15 Jan 2026
Minutes
The External Auditors presented the Audit Results Report for Hampshire County Council for 2024/25.
The Committee received an extensive summary of progress, noting that the audit was substantially complete and that work continued to align with national guidance on clearing the audit backlog.
The auditors emphasised that, whilst a qualified opinion had been explored, the national approach set by the regulator made a disclaimer the most appropriate outcome this year. However, that the Council remained firmly on the prescribed improvement trajectory for restoring full audit assurance in future years and the auditor noted the Council’s engagement with the process.
Updates were provided on value for money work, with auditors confirming that no significant weaknesses in arrangements had been identified. Members questioned auditors on longstanding sector challenges, the status of reserves, and the timetable for transitioning from disclaimed to qualified and ultimately unqualified opinions, with query around the External Auditors’ discussions with management concerning the roadmap to restoring to full audit assurance. Members also asked about the impact on the scale fees for the audit. The auditors responded in detail and confirmed that the Council remained on track within the national framework.
Members asked officers about the audit observation on historic debt. It was confirmed that work is being undertaken on this area.
RESOLVED:
That the Audit Committee received and noted the Audit Results Report for Hampshire County Council for the year ending 31 March 2025.
The Committee received an extensive summary of progress, noting that the audit was substantially complete and that work continued to align with national guidance on clearing the audit backlog.
The auditors emphasised that, whilst a qualified opinion had been explored, the national approach set by the regulator made a disclaimer the most appropriate outcome this year. However, that the Council remained firmly on the prescribed improvement trajectory for restoring full audit assurance in future years and the auditor noted the Council’s engagement with the process.
Updates were provided on value for money work, with auditors confirming that no significant weaknesses in arrangements had been identified. Members questioned auditors on longstanding sector challenges, the status of reserves, and the timetable for transitioning from disclaimed to qualified and ultimately unqualified opinions, with query around the External Auditors’ discussions with management concerning the roadmap to restoring to full audit assurance. Members also asked about the impact on the scale fees for the audit. The auditors responded in detail and confirmed that the Council remained on track within the national framework.
Members asked officers about the audit observation on historic debt. It was confirmed that work is being undertaken on this area.
RESOLVED:
That the Audit Committee received and noted the Audit Results Report for Hampshire County Council for the year ending 31 March 2025.
8
External Audit: Hampshire Pension Fund Draft Audit Results Report 2024-25
To receive and note the external auditors draft report for Hampshire Pension Fund for the year ending 31 March 2025.
Attachments:
- Document 8 Audit Committee covering report - pension fund report 15 Jan 2026
- Document 8i Hampshire Pension Fund Audit Results Report 2024-25 15 Jan 2026
Minutes
The External Auditors introduced the final Audit Results Report for the Hampshire Pension Fund for 2024/25.
The auditor expects to issue an unqualified audit opinion.
It was confirmed that there were no issues of concern relating to management override, investment asset valuations, or control weaknesses. Members noted that further detailed work on membership data would be undertaken for the forthcoming triennial valuation cycle.
RESOLVED:
That the Audit Committee received and noted the draft audit results report for the Hampshire Pension Fund for the year ending 2024/25.
The auditor expects to issue an unqualified audit opinion.
It was confirmed that there were no issues of concern relating to management override, investment asset valuations, or control weaknesses. Members noted that further detailed work on membership data would be undertaken for the forthcoming triennial valuation cycle.
RESOLVED:
That the Audit Committee received and noted the draft audit results report for the Hampshire Pension Fund for the year ending 2024/25.
9
Internal Audit Progress Report
To consider a report of the Deputy Head of Southern Internal Audit Partnership outlining the Internal Audit Progress Report in accordance with the requirements of the Global Internal Audit Standards.
Attachments:
- Document 9 Internal Audit Progress Report - Cover Report 15 Jan 2026
- Document 9i Appendix A - Internal Audit Progress Report 15 Jan 2026
Minutes
The Deputy Head of the Southern Internal Audit Partnership presented the latest progress update on delivery of the 2025/26 audit plan.
Recruitment had strengthened Internal Audit’s capacity following a period of staff turnover, with additional specialist IT and data analytics resource now in place. It was noted that while some slippage had occurred earlier in the year, Internal Audit remained confident that the annual plan would be delivered.
Members noted adjustments to the plan and that only one management action was overdue, reflecting positive progress in implementation across directorates.
RESOLVED:
1. That the Audit Committee notes the Internal Audit Progress Report.
2. That the Committee approves the adjustments to the Internal Audit Plan 2025/26 as detailed in Section 8 of Appendix A.
Recruitment had strengthened Internal Audit’s capacity following a period of staff turnover, with additional specialist IT and data analytics resource now in place. It was noted that while some slippage had occurred earlier in the year, Internal Audit remained confident that the annual plan would be delivered.
Members noted adjustments to the plan and that only one management action was overdue, reflecting positive progress in implementation across directorates.
RESOLVED:
1. That the Audit Committee notes the Internal Audit Progress Report.
2. That the Committee approves the adjustments to the Internal Audit Plan 2025/26 as detailed in Section 8 of Appendix A.
10
Revised Internal Audit Plan 2025-26
To consider a report of the Deputy Head of Southern Internal Audit Partnership regarding the Revised Internal Audit Plan for 2025–2026.
Attachments:
- Document 10 Revised Internal Audit Plan 2025-26 - Cover Report 15 Jan 2026
- Document 10i Appendix A - Revised Internal Audit Plan 2025-26 15 Jan 2026
Minutes
The Committee considered the revised Internal Audit Plan for 2025/26, which reflected updated priorities, the incorporation of carried forward work from 2024/25, and discussions with senior management.
Members noted the scheduling of audits, the allocation of resources, and the need to target areas informed by previous assurance findings. Assurance was obtained that the internal audit function had not been adversely impacted by the Mutually Agreed Resignation Scheme the previous year and was sufficiently resourced.
Members also discussed the relationship between internal audit coverage and external inspection findings, sector wide financial challenges, and the impact of government funding changes on risk exposure. Officers confirmed that such issues were taken into account in planning and that external inspection outcomes were considered alongside internal assurance work.
Members were reminded that development of the Internal Audit Plan for 2026/27 had commenced and that they may submit any comments concerning audit coverage.
RESOLVED:
That the Audit Committee approves the Revised Internal Audit Plan 2025/26 (Appendix A).
Members noted the scheduling of audits, the allocation of resources, and the need to target areas informed by previous assurance findings. Assurance was obtained that the internal audit function had not been adversely impacted by the Mutually Agreed Resignation Scheme the previous year and was sufficiently resourced.
Members also discussed the relationship between internal audit coverage and external inspection findings, sector wide financial challenges, and the impact of government funding changes on risk exposure. Officers confirmed that such issues were taken into account in planning and that external inspection outcomes were considered alongside internal assurance work.
Members were reminded that development of the Internal Audit Plan for 2026/27 had commenced and that they may submit any comments concerning audit coverage.
RESOLVED:
That the Audit Committee approves the Revised Internal Audit Plan 2025/26 (Appendix A).
11
External Quality Assessment - Final Report
To consider a report of the Deputy Head of the Southern Internal Audit Partnership regarding the External Quality Assessment.
Attachments:
- Document 11 External Quality Assessment - Outcome - Cover Report 15 Jan 2026
- Document 11i Appendix A - SIAP External Quality Assessment Final Report 15 Jan 2026
- Document 11ii Appendix B - SIAP External Quality Assessment Action Plan 15 Jan 2026
Minutes
The Committee received a report from the Deputy Head of Southern Internal Audit Partnership presenting the findings of the recent External Quality Assessment (EQA) of the internal audit function. The assessment had reviewed compliance with the Global Internal Audit Standards introduced in April 2025.
The Committee noted the positive outcome and that an action plan had been developed for the areas identified for ongoing enhancement.
RESOLVED:
That the Audit Committee notes the report of the External Assessor following
the External Quality Assessment of the Southern Internal Audit Partnership
against the Global Internal Audit Standards in the UK Public Sector (Appendix
A) and the action plan developed against suggested opportunities for future
development (Appendix B).
The Committee noted the positive outcome and that an action plan had been developed for the areas identified for ongoing enhancement.
RESOLVED:
That the Audit Committee notes the report of the External Assessor following
the External Quality Assessment of the Southern Internal Audit Partnership
against the Global Internal Audit Standards in the UK Public Sector (Appendix
A) and the action plan developed against suggested opportunities for future
development (Appendix B).
12
2025/26 Mid Year Treasury Management Report
To consider a report of the Director of Corporate Operations giving an update on the treasury management activity in the first half of 2025/26.
Attachments:
- Document HCC mid-year Q2 TM report 2025-26 15 Jan 2026
Minutes
The Director of Corporate Operations presented the mid-year review of treasury management activity. The Committee noted the Council’s compliance with the Prudential Code, the management of borrowing and investments, and activity undertaken during the first half of the financial year.
Members noted that the Council had continued to balance its borrowing and investment needs while managing significant financial risks arising from inflation, economic uncertainty, and reducing reserves. Investment balances fell from £429m to £384.4m, driven largely by the planned use of internal resources, while borrowing decreased due to £2m of PWLB maturities being repaid at maturity.
RESOLVED:
That the Audit Committee notes the review of the treasury management activities in the first half of 2025/2026.
Members noted that the Council had continued to balance its borrowing and investment needs while managing significant financial risks arising from inflation, economic uncertainty, and reducing reserves. Investment balances fell from £429m to £384.4m, driven largely by the planned use of internal resources, while borrowing decreased due to £2m of PWLB maturities being repaid at maturity.
RESOLVED:
That the Audit Committee notes the review of the treasury management activities in the first half of 2025/2026.
13
Treasury Management Strategy Statement 2026/27 to 2028/29
To consider a report of the Director of Corporate Operations presenting the Treasury Management Strategy Statement for 2026/27 to 2028/29. This includes the Annual Investment Strategy for 2026/27.
Attachments:
- Document 13 202627 HCC TMSS Audit Committee 2026-01-23 15 Jan 2026
Minutes
The Committee considered the Treasury Management Strategy Statement for 2026/27 to 2028/29, including the Annual Investment Strategy for 2026/27.
Members noted the prudential indicators, borrowing strategy, and risk management approach and that the County Council aims to continue to hold a diversified investment portfolio, including investments in more secure and/or higher yielding asset classes.
Members queried the potential need for further borrowing to fund the capital programme. It was heard that the strategy anticipated borrowing but the County Council was waiting for an announcement from Central Government on the future treatment of Dedicated Schools Grant (DSG) deficits nationally. Members also questioned whether Local Government Reorganisation would require balances to be split and allocated and it was confirmed that is was expected that assets and liabilities would need to be allocated to successor organisations.
RESOLVED:
That the Audit Committee notes the following recommendations that have
been made to Cabinet:
· That the Treasury Management Strategy for 2026/27 (and the remainder of 2025/26) be approved.
· That authority is delegated to the Director of Corporate Operations to manage the County Council’s investments and borrowing according to the Treasury Management Strategy Statement as appropriate.
Members noted the prudential indicators, borrowing strategy, and risk management approach and that the County Council aims to continue to hold a diversified investment portfolio, including investments in more secure and/or higher yielding asset classes.
Members queried the potential need for further borrowing to fund the capital programme. It was heard that the strategy anticipated borrowing but the County Council was waiting for an announcement from Central Government on the future treatment of Dedicated Schools Grant (DSG) deficits nationally. Members also questioned whether Local Government Reorganisation would require balances to be split and allocated and it was confirmed that is was expected that assets and liabilities would need to be allocated to successor organisations.
RESOLVED:
That the Audit Committee notes the following recommendations that have
been made to Cabinet:
· That the Treasury Management Strategy for 2026/27 (and the remainder of 2025/26) be approved.
· That authority is delegated to the Director of Corporate Operations to manage the County Council’s investments and borrowing according to the Treasury Management Strategy Statement as appropriate.
14
Code of Corporate Governance Review
To consider a report of the Director of People and Organisation detailing a revised Code of Corporate Governance.
Attachments:
- Document 14 2026-01-13 - FINAL Audit Committee Report (23 Jan 2026) - COCG Review 2025 15 Jan 2026
- Document 14i 2026-01-13 - DRAFT Revised Code of Corporate Governance 2026 15 Jan 2026
- Document 14ii 2026-01-13 - DRAFT Revised Appendix to Code of Corporate Governance 2026 15 Jan 2026
Minutes
The Director of People and Organisation presented a revised Code of Corporate Governance. The Committee noted the updates to this document to reflect best practice and evolving organisational arrangements.
RESOLVED:
That the Audit Committee approves the revised Code of Corporate Governance as set out in Annex 1 to this Report
RESOLVED:
That the Audit Committee approves the revised Code of Corporate Governance as set out in Annex 1 to this Report
15
Annual Report of the Audit Committee
To consider a report of the Director of Corporate Operations outlining the Committee’s work over the last year to be presented to Full Council.
Attachments:
- Document 15 2025-26 Audit Committee Annual Report to County Council January 2026 15 Jan 2026
Minutes
The Committee received the annual report summarising the Committee’s work over the past year, prior to its submission to Full Council.
RESOLVED:
That the Audit Committee approve the Annual Report contained in Appendix 1 for presentation to the County Council
RESOLVED:
That the Audit Committee approve the Annual Report contained in Appendix 1 for presentation to the County Council
16
Corporate Risk Management Annual Report
To consider a report of the Director of People and Organisation outlining the County Council’s corporate risk framework and associated risk workstreams.
Attachments:
- Document 16 Audit Committee - Corporate Risk Management Annual Report 23.01.26 15 Jan 2026
Minutes
The Committee considered the annual report on the County Council’s corporate risk framework. Members reviewed key strategic risks and the work undertaken to strengthen risk management arrangements across the organisation.
RESOLVED:
That the Committee:
1. Notes the continued robust risk management arrangements in place across the organisation, including progress of key workstreams and improvement activities aimed at enhancing the organisations’ ability to respond to risks, learn from past incidents and build better future resilience.
2. Notes the new Corporate Risk Management Strategy 2025-28 (Appendix A) approved by Cabinet on 11 November 2025.
3. Notes the new Insurance Strategy 2025-28 (Appendix B) approved by Cabinet on 11 November 2025, as part of arrangements to include insurance within the Council's Risk Management processes.
4. Notes the contents of the County Council’s Corporate Strategic Risk Register set out in a separate Confidential report and the robust arrangements in place to manage these risks.
5. Notes the ‘reasonable’ assurance rating outcome of the Corporate Risk Management Audit completed in Q2 2025/26.
RESOLVED:
That the Committee:
1. Notes the continued robust risk management arrangements in place across the organisation, including progress of key workstreams and improvement activities aimed at enhancing the organisations’ ability to respond to risks, learn from past incidents and build better future resilience.
2. Notes the new Corporate Risk Management Strategy 2025-28 (Appendix A) approved by Cabinet on 11 November 2025.
3. Notes the new Insurance Strategy 2025-28 (Appendix B) approved by Cabinet on 11 November 2025, as part of arrangements to include insurance within the Council's Risk Management processes.
4. Notes the contents of the County Council’s Corporate Strategic Risk Register set out in a separate Confidential report and the robust arrangements in place to manage these risks.
5. Notes the ‘reasonable’ assurance rating outcome of the Corporate Risk Management Audit completed in Q2 2025/26.
17
Minutes of the Hampshire Pension Fund Panel and Board Meetings - 21 July and 5 September 2025 (Less Exempt)
To receive the non-exempt minutes of the Hampshire Pension Fund Panel and Board meeting held on 21 July and 5 September 2025.
Attachments:
- Document Minutes , 21/07/2025 Hampshire Pension Fund Panel and Board 15 Jan 2026
- Document Minutes , 05/09/2025 Hampshire Pension Fund Panel and Board 15 Jan 2026
Minutes
The Committee received and noted the non-exempt minutes of the Hampshire Pension Fund and Board meetings held on 21 July and 5 September 2025.
18
Exclusion of the Press and Public
To resolve that the public be excluded from the meeting during the following items 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 these items 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 and report.
Minutes
The press and public were excluded from the meeting during the following items 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.
19
Minutes of the Hampshire Pension Fund Panel and Board Meetings - 21 July and 5 September 2025 (Exempt)
To receive the exempt minutes of the Hampshire Pension Fund Panel and Board meetings held on 21 July and 5 September 2025.
Attachments:
- Document Minutes - Exempt 285, 21/07/2025 Hampshire Pension Fund Panel and Board, 05/09/2025 Hampshire Pension Fund Panel and Board 15 Jan 2026
- Document Minutes - Exempt 286, 21/07/2025 Hampshire Pension Fund Panel and Board, 05/09/2025 Hampshire Pension Fund Panel and Board 15 Jan 2026
- Document Minutes - Exempt 294, 05/09/2025 Hampshire Pension Fund Panel and Board 15 Jan 2026
20
Corporate Strategic Risk Register (EXEMPT)
To consider an exempt report of the Director of People and Organisation regarding the he key strategic corporate risks to the County Council that are held and monitored through the central corporate Risk Register system.
Attachments:
Previous Meetings
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