New Forest Borough Council
Councillors:
48
Wards:
28
Committees:
14
Meetings (2026):
65
Meetings (2025):
80
Meeting
Audit Committee - New Forest
Meeting Times
Scheduled Time
Start:
Friday, 26th June 2026
10:00 AM
Friday, 26th June 2026
10:00 AM
End:
Friday, 26th June 2026
2:00 PM
Friday, 26th June 2026
2:00 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
26 Jun 2026
26 Jun 2026
Location:
Council Chamber - Appletree Court, Beaulieu Road, Lyndhurst, SO43 7PA
Council Chamber - Appletree Court, Beaulieu Road, Lyndhurst, SO43 7PA
Meeting Attendees
Officer
Strategic Director of Corporate Resources (Section 151 Officer)
Alan Bethune
In attendance
Officer
Democratic Services Officer
Lee Ellis
Expected
Officer
Assistant Director - Finance
Paul Whittles
In attendance
Officer
Service Manager - Coastal
Steve Cook
Expected
Officer
Andrew Boutflower
Hampshire County Council
In attendance
Officer
Service Manager - Community Safety and Support
Brian Byrne
Expected
Officer
Interim Strategic Director of Place, Operations and Sustainability
Tracey Coleman
Expected
Officer
Assistant Director Transformation
Rebecca Drummond
In attendance
Officer
Gemma Farley
Hampshire County Council
Expected
Officer
ICT Operations Manager
Kim Gray
In attendance
Officer
Assistant Director for Place Development
Tim Guymer
Expected
Officer
Antony Harvey
Internal Audit, HCC
In attendance
Officer
Contract Relationship Officer
Charlotte Johnson
In attendance
Officer
Chief Operations Officer and Deputy Chief Executive
Richard Knott
In attendance
Officer
Jade Lakeland
Internal Audit, HCC
In attendance
Officer
Katie Lean
External Auditor
Expected
Officer
Simon Mathers
External Auditor
In attendance
Officer
Assistant Director Place Operations
Chris Noble
In attendance
Officer
Daniel O'Rourke
Hampshire County Council
In attendance
Officer
Chief Executive
Kate Ryan
Expected
Officer
Strategic Director Housing and Communities
Sophie Sajic
Expected
Officer
Service Manager - Revenues, Benefits and Customer Services
Ryan Stevens
In attendance
Officer
Assistant Director - Regeneration and Assets
Paul Thomas
Expected
Officer
Service Manager - Housing Maintenance Programmes and Servicing
Sophie Tuffin
In attendance
Officer
External Auditor
Rumana Rafiq Ullah
In attendance
Officer
Strategic Procurement Manager
Josie West
Expected
Officer
Service Manager – Legal and Information Governance
Amanda Wilson
Expected
Officer
Assistant Director - Strategy and Engagement
Matt Wisdom
In attendance
Public
Syed Shah
KPMG
In attendance
Agenda
0
Apologies
Apologies were received from Cllrs Kate Crisell, Jacqui England and Caroline Rackham.
Minutes
1
Minutes
To confirm the minutes of the meetings held on 27 March and 18 May 2026 as a correct record.
Minutes
That the minutes of the meetings held on 27 March and 18 May 2026 be signed by the Chairman as correct records.
2
Declarations of Interest
To note any declarations of interest made by members in connection with an agenda item. The nature of the interest must also be specified.
Members are asked to discuss any possible interests with Democratic Services prior to the meeting.
Members are asked to discuss any possible interests with Democratic Services prior to the meeting.
Minutes
No declarations of interest were made in connection with any agenda item.
3
Public Participation
To receive any public participation in accordance with the Council’s public participation scheme.
Minutes
There was no public participation at the meeting.
4
Housing Benefit Subsidy (Presentation)
To receive a presentation on the Housing Benefit Subsidy.
Attachments:
- Document Restricted enclosure 18 Jun 2026
- Document Housing Benefit Report 18 Jun 2026
Minutes
The Committee received a presentation on the annual Housing Benefit Subsidy Assurance Report from KPMG and the positive contents of the report were highlighted.
It was confirmed that the Council had minimal errors which were below the national average from other Local Authorities, and Members acknowledged the work of the Benefits Team for the positive feedback from KPMG.
RESOLVED:
That the presentation was noted.
It was confirmed that the Council had minimal errors which were below the national average from other Local Authorities, and Members acknowledged the work of the Benefits Team for the positive feedback from KPMG.
RESOLVED:
That the presentation was noted.
5
Code of Good Governance Review - Annual Report of the Monitoring Officer and Chief Finance Officer in Respect of 2025/26
To receive the Code of Good Governance Review - Annual Report of the Monitoring Officer and Chief Finance Officer in Respect of 2025/26.
Attachments:
- Document Report 18 Jun 2026
Minutes
The Committee considered the Code of Good Governance Review – Annual Report of the Monitoring Officer and Chief Finance Officer in respect of 2025/26.
A Committee member asked who had undertaken the quality assurance on the action plan. It was confirmed that the Statutory Officer Group undertook a regular review of actions, throughout the year. There would be individual governance arrangements depending upon the action and who would also be responsible for oversight. The Project Management Office would play a key role in assurance and progress. The Assistant Director – Strategy and Engagement agreed to review how the action plan could include the methods of assurance.
The Chairman requested an update on the resolution to the collective grievances. It was confirmed that the topic was subject to external legal advice and therefore, unable to provide detail at the meeting. The Strategic Director - Corporate Resources and S151 Officer would discuss the subject, outside of the meeting, with the Chairman.
RESOLVED:
That the Audit Committee noted the assessment carried out by the Monitoring Officer and Chief Finance Officer.
A Committee member asked who had undertaken the quality assurance on the action plan. It was confirmed that the Statutory Officer Group undertook a regular review of actions, throughout the year. There would be individual governance arrangements depending upon the action and who would also be responsible for oversight. The Project Management Office would play a key role in assurance and progress. The Assistant Director – Strategy and Engagement agreed to review how the action plan could include the methods of assurance.
The Chairman requested an update on the resolution to the collective grievances. It was confirmed that the topic was subject to external legal advice and therefore, unable to provide detail at the meeting. The Strategic Director - Corporate Resources and S151 Officer would discuss the subject, outside of the meeting, with the Chairman.
RESOLVED:
That the Audit Committee noted the assessment carried out by the Monitoring Officer and Chief Finance Officer.
6
Draft Annual Governance Statement 2025/26
To receive the draft Annual Governance Statement 2025/26.
Attachments:
- Document Report 18 Jun 2026
Minutes
The Committee considered the Draft Annual Governance Statement 2025/26. It was confirmed that the AGS took account of recent changes as made by CIPFA/SOLACE, and the committee were reminded that the AGS was a live document until the completion of the external audit.
RESOLVED:
The Audit Committee approved the draft Annual Governance Statement for the Financial Year ended 31 March 2026.
RESOLVED:
The Audit Committee approved the draft Annual Governance Statement for the Financial Year ended 31 March 2026.
7
Draft Annual Financial Report 2025/26
To receive the draft Annual Financial Report 2025/26.
Attachments:
- Document Report 18 Jun 2026
Minutes
The Committee considered the Draft Annual Financial Report 2025/26.
In response to a question regarding the reason for the change to the Property, Plant and Equipment Accounting Policy, it was confirmed that the Chartered Institute of Public Finance and Accountancy (CIPFA) had updated the codes and therefore the change to the Council policy was to bring it in line with the updated accounting standard.
RESOLVED:
That the Audit Committee:
1. Noted the draft Accounting Statements set out in Appendices 1 - 6 which were a summary of the Annual Financial Report that would be certified by the Responsible Financial (S151) Officer for the submission to the external auditor by the deadline of 30 June 2026; and
2. Approved changes to the Property, Plant and Equipment Accounting Policy.
In response to a question regarding the reason for the change to the Property, Plant and Equipment Accounting Policy, it was confirmed that the Chartered Institute of Public Finance and Accountancy (CIPFA) had updated the codes and therefore the change to the Council policy was to bring it in line with the updated accounting standard.
RESOLVED:
That the Audit Committee:
1. Noted the draft Accounting Statements set out in Appendices 1 - 6 which were a summary of the Annual Financial Report that would be certified by the Responsible Financial (S151) Officer for the submission to the external auditor by the deadline of 30 June 2026; and
2. Approved changes to the Property, Plant and Equipment Accounting Policy.
8
External Audit Plan for 2025/26
To receive the External Audit Plan for 2025/26.
Attachments:
- Document Report 18 Jun 2026
Minutes
The Committee received the External Audit Plan for 2025/26.
A Committee member asked whether the errors identified in the draft financial statement, due to the late implementation of IFRS 16, had been corrected. It was confirmed that the errors identified had been corrected as part of the audit of the previous financial statements. IFRS 16 had been implemented as a new standard and was now embedded in the Council’s processes. A recurrence of the previous issues not expected.
RESOLVED:
That the report was noted.
A Committee member asked whether the errors identified in the draft financial statement, due to the late implementation of IFRS 16, had been corrected. It was confirmed that the errors identified had been corrected as part of the audit of the previous financial statements. IFRS 16 had been implemented as a new standard and was now embedded in the Council’s processes. A recurrence of the previous issues not expected.
RESOLVED:
That the report was noted.
9
Internal Audit Annual Conclusion Report 2025-26
To receive the Internal Annual Audit Conclusion Report 2025/26.
Attachments:
- Document Report 18 Jun 2026
- Document Appendix 1 18 Jun 2026
Minutes
The Committee received the Annual Internal Audit Conclusion Report for 2025-26.
It was confirmed that firewall management and monitoring had been based on assurance controls. A remedial action plan had been put in place to address the findings, which had been completed. Discussion had taken place to arrange a further audit to ensure that the Council had met the controls and addressed the cause of the issues. In addition, to support the ICT disaster recovery and service continuity audit, a corporate exercise has been undertaken to understand the critical activities for the organisation under the business continuity work programme. The Internal Auditor had noted the capacity and capability of the business continuity plan and a significant test would be undertaken to test the Council’s disaster recovery plan, which would include other services business continuity plans.
The Chairman raised a question on the difference between the Target and Actual at the Performance Measures – Audits Delivered Within Agreed Timescales (% Year To Date). The Internal Auditor explained that it was the first year of those performance measurements being in place, with a benchmark established. The overriding performance measure was to deliver the Audit Plan.
The Chairman raised concern regarding the asset transfer procedure from the Council to Town and Parish Councils. It was requested that the Internal Auditor check that there was an agreed basis for the transfer of assets that everyone understood, as confusion had arisen.
RESOLVED:
That the report was noted.
It was confirmed that firewall management and monitoring had been based on assurance controls. A remedial action plan had been put in place to address the findings, which had been completed. Discussion had taken place to arrange a further audit to ensure that the Council had met the controls and addressed the cause of the issues. In addition, to support the ICT disaster recovery and service continuity audit, a corporate exercise has been undertaken to understand the critical activities for the organisation under the business continuity work programme. The Internal Auditor had noted the capacity and capability of the business continuity plan and a significant test would be undertaken to test the Council’s disaster recovery plan, which would include other services business continuity plans.
The Chairman raised a question on the difference between the Target and Actual at the Performance Measures – Audits Delivered Within Agreed Timescales (% Year To Date). The Internal Auditor explained that it was the first year of those performance measurements being in place, with a benchmark established. The overriding performance measure was to deliver the Audit Plan.
The Chairman raised concern regarding the asset transfer procedure from the Council to Town and Parish Councils. It was requested that the Internal Auditor check that there was an agreed basis for the transfer of assets that everyone understood, as confusion had arisen.
RESOLVED:
That the report was noted.
10
Treasury Management Outturn Report 2025/26 Treasury
To receive the Treasury Management Outturn Report 2025/26.
Attachments:
- Document Report 18 Jun 2026
Minutes
The Committee received the Treasury Management Outturn Report 2025/26.
It was confirmed that in accordance with the Capital Strategy, the Council had an annual borrowing requirement of £10m, the majority of which was to fund the housing capital program. New borrowing had been undertaken and the existing loan of £4.1m had been repaid, which left a net new borrowing position of +£5.9m.
The Chairman noted at Table 7 – Non-Treasury Investments that the annual rate of return contained within the Table was based on asset values not on asset acquisition costs. He felt that it should be based on asset acquisition cost. It was confirmed that the observation was correct and would need recasting based on the original asset acquisition cost value. Therefore, the table would need to be reviewed to include an additional column and then identify the rate of return on that value, as opposed to the revised asset value.
RESOLVED:
That the Audit Committee:
1. Approved the Treasury Management Outturn Report; and
2. Noted the treasury activity in 2025/26 as laid out in the report, including compliance with both the treasury management prudential indicators and relevant legislation and guidance.
It was confirmed that in accordance with the Capital Strategy, the Council had an annual borrowing requirement of £10m, the majority of which was to fund the housing capital program. New borrowing had been undertaken and the existing loan of £4.1m had been repaid, which left a net new borrowing position of +£5.9m.
The Chairman noted at Table 7 – Non-Treasury Investments that the annual rate of return contained within the Table was based on asset values not on asset acquisition costs. He felt that it should be based on asset acquisition cost. It was confirmed that the observation was correct and would need recasting based on the original asset acquisition cost value. Therefore, the table would need to be reviewed to include an additional column and then identify the rate of return on that value, as opposed to the revised asset value.
RESOLVED:
That the Audit Committee:
1. Approved the Treasury Management Outturn Report; and
2. Noted the treasury activity in 2025/26 as laid out in the report, including compliance with both the treasury management prudential indicators and relevant legislation and guidance.
11
Report of Bad Debts and Write Offs 2025/26
To receive the report of Bad Debts and Write Offs 2025/26.
Attachments:
- Document Report 18 Jun 2026
Minutes
The Committee considered the report of Bad Debts and Write Offs 2025/26.
RESOLVED:
That the report was noted.
RESOLVED:
That the report was noted.
12
Annual Fraud Report 2025/26
To receive the Annual Fraud Report 2025/26.
Attachments:
- Document Report 18 Jun 2026
Minutes
The Committee considered the Annual Fraud Report 2025/26.
It was confirmed that both fraud and error was relatively low at the Council.
RESOLVED:
That the report was noted.
It was confirmed that both fraud and error was relatively low at the Council.
RESOLVED:
That the report was noted.
13
Whistleblowing Policy
To receive the Whistleblowing Policy.
Attachments:
- Document Report 18 Jun 2026
- Document Appendix 1 18 Jun 2026
Minutes
The Committee considered the Whistleblowing Policy.
RESOLVED:
That the policy was agreed.
RESOLVED:
That the policy was agreed.
14
Procurement Contract Standing Orders, Breaches and Waivers 2025/26
To receive the Procurement Contract Standing Orders, Breaches and Waivers 2025/26.
Attachments:
- Document Report 18 Jun 2026
- Document Appendix 1 18 Jun 2026
Minutes
The Committee considered the Procurement Contract Standing Orders, Breaches and Waivers 2025/26 report.
It was confirmed that during the waste rollout there had been a need to react quicky due to circumstances during the phased rollout and this had been reflected within the report. Procurement plans were underway to resolve those issues.
A Committee member asked whether an additional £1m had been spent on the waste rollout. It was confirmed that there had not been an additional £1m spend on the waste rollout, the spend was included as this had been contracted through a waiver, as opposed to a formalised tender process.
RESOLVED:
That the report was noted.
It was confirmed that during the waste rollout there had been a need to react quicky due to circumstances during the phased rollout and this had been reflected within the report. Procurement plans were underway to resolve those issues.
A Committee member asked whether an additional £1m had been spent on the waste rollout. It was confirmed that there had not been an additional £1m spend on the waste rollout, the spend was included as this had been contracted through a waiver, as opposed to a formalised tender process.
RESOLVED:
That the report was noted.
15
Audit Committee Work Plan
To consider the Audit Committee’s Work Plan.
Attachments:
- Document Report 18 Jun 2026
Minutes
RESOLVED:
That the Work Programme was approved.
That the Work Programme was approved.
16
Any other items which the Chairman decides are urgent
Previous Meetings
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