Test Valley Borough Council
Councillors:
43
Wards:
21
Committees:
17
Meetings (2026):
29
Meetings (2025):
92
Meeting
Audit Committee - Test Valley
Meeting Times
Scheduled Time
Start:
Monday, 23rd March 2026
5:30 PM
Monday, 23rd March 2026
5:30 PM
End:
Monday, 23rd March 2026
9:30 PM
Monday, 23rd March 2026
9:30 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
23 Mar 2026
23 Mar 2026
Location:
The Annexe, Crosfield Hall, Broadwater Road, Romsey, Hampshire, SO51 8GL
The Annexe, Crosfield Hall, Broadwater Road, Romsey, Hampshire, SO51 8GL
Meeting Attendees
Officer
Director of Finance and Revenues
Carl Whatley
Expected
Officer
Internal Audit Manager
Jan Balfour
Expected
Committee Member
Independent Member
Mark Catlow
Present, as expected
Agenda
1
Apologies
Minutes
There were no apologies received.
2
Public Participation
Minutes
There was no public participation.
3
Declarations of Interest
Minutes
There were no declarations of interest.
4
Urgent Items
Minutes
There were no urgent items brought to the Committee.
5
Minutes of the previous meeting
To approve the minutes of the meeting held on 15 December 2025.
Attachments:
- Document Minutes , 15/12/2025 Audit Committee 12 Mar 2026
Minutes
Councillor Jeffrey proposed and Councillor L Lashbrook seconded the motion that the minutes of the previous meeting were an accurate record. Upon being put to the vote the motion was carried.
Resolved:
That the minutes of the meeting held on 15 December 2026 were signed as a correct record.
Resolved:
That the minutes of the meeting held on 15 December 2026 were signed as a correct record.
6
Internal Audit Progress Report
To receive an update on work undertaken by the Internal Audit team in the 2025/26 year to date.
Attachments:
- Document 6) Internal Audit Progress Report 12 Mar 2026
- Document 6) Annex 1 IA Progress Report 12 Mar 2026
Minutes
The Internal Audit Manager introduced the Internal Audit Progress Report, which set out the Internal Audit coverage, findings, and performance for 2025/26 up to 28 February 2026, as well as the summary risk profiles for those areas reviewed. The scope of audits that are included within the plan enabled a continuing assurance opinion to be provided on the adequacy and effectiveness of the Council’s internal control framework, which also reflected the Council’s key priorities and objectives. A risk assessment ensured that the Corporate and Service risk registers, in consultation with all Directors of Service and Senior Management, informed the plan and that the audit resource required was matched against available resources. It was noted that as of 28 February 2026, progress on the planned 2025/26 Audit Plan was on target to deliver the plan.
Independent Member, Mark Catlow was pleased to see that the Council had secured a good practice in PCI and DSS Standards.
Councillor Hasselmann queried the remaining actions over outstanding debtors, and it was explained that it was an ongoing piece of work, which required collaboration with teams across the Council, however the actions were not considered a high risk as there was already a good debt recovery system in place.
Councillor Parker queried the relationship between the outstanding items and the cyber security risks. It was explained that most of the targets would be assessed by the next meeting of the committee.
Councillor Hasselmann proposed and Councillor Parker seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Internal Audit progress report was noted.
Independent Member, Mark Catlow was pleased to see that the Council had secured a good practice in PCI and DSS Standards.
Councillor Hasselmann queried the remaining actions over outstanding debtors, and it was explained that it was an ongoing piece of work, which required collaboration with teams across the Council, however the actions were not considered a high risk as there was already a good debt recovery system in place.
Councillor Parker queried the relationship between the outstanding items and the cyber security risks. It was explained that most of the targets would be assessed by the next meeting of the committee.
Councillor Hasselmann proposed and Councillor Parker seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Internal Audit progress report was noted.
7
Internal Audit Charter
To approve the Internal Audit Charter.
Attachments:
- Document 7) Audit Charter report 12 Mar 2026
- Document 7) TVBC - Internal Audit Charter 2026-27 12 Mar 2026
Minutes
The Head of the Southern Internal Audit Partnership introduced the Internal Audit Charter report, which informed the Committee that with effect from April 2026, the Council’s Internal Audit function would be delivered by Southern Internal Audit Partnership (SIAP). In preparation for this, the Head of SIAP set out the Audit Charter for the coming year. This set out the roles and responsibilities of the Chief Internal Auditor, senior management and the Audit Committee. The report sought approval of the updated Audit Charter.
It was explained to the Committee that the SIAP would report to the Committee through progress reports and that engagement with the committee members would largely take place through the Committee, however SIAP welcomed further engagement.
Councillor Parker asked whether the new charter was based on the same values as last year’s charter and it was stated that both documents should have been built on similar themes, which would have been grounded within legislation.
Councillor L Lashbrook proposed and Councillor Jeffrey seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Internal Audit Charter be approved.
It was explained to the Committee that the SIAP would report to the Committee through progress reports and that engagement with the committee members would largely take place through the Committee, however SIAP welcomed further engagement.
Councillor Parker asked whether the new charter was based on the same values as last year’s charter and it was stated that both documents should have been built on similar themes, which would have been grounded within legislation.
Councillor L Lashbrook proposed and Councillor Jeffrey seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Internal Audit Charter be approved.
8
Internal Audit Strategy
To review and seek approval of the Internal Audit Charter for 2026/27.
Attachments:
- Document 8) Audit Strategy report 12 Mar 2026
- Document 8) SIAP - Internal Audit Strategy 2025-28 12 Mar 2026
Minutes
The Head of the SIAP introduced the Internal Audit Strategy. It was noted that the ‘standards or guidance’ in relation to internal audit were outlined within the Global Internal Audit Standards (GIAS), Global Internal Audit Standards in the UK Public Sector and the Code of Practice for the Governance of Internal Audit in UK Local Government. It was stated that ‘The Standards’ required all internal audit providers to develop and maintain an ‘Internal Audit Strategy’, which was defined as ‘a plan of action designed to achieve a long-term or overall objective. The internal audit strategy must include a vision, strategic objectives, and supporting initiatives for the internal audit function. It was argued that the adoption of an internal audit strategy would help guide the internal audit function towards the fulfilment of the internal audit mandate.
Councillor Hasselmann proposed and Councillor Parker seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Internal Audit Strategy be noted.
Councillor Hasselmann proposed and Councillor Parker seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Internal Audit Strategy be noted.
9
Draft Internal Audit Annual Plan for 2026/27
To approve the Draft Internal Audit Plan 2026/27.
Attachments:
- Document 9) Internal Audit Plan 12 Mar 2026
- Document 9) TVBC - Internal Audit Plan 2026-27 12 Mar 2026
Minutes
The Head of the SIAP introduced the Draft Internal Audit Annual Plan for 2026/27. The scope of audits included within the plan enabled a continuing assurance opinion to be provided on the adequacy and effectiveness of the Council’s internal control framework, which reflected the Council’s key priorities and objectives. A risk assessment was conducted to ensure that the Corporate and Service risk registers, informed the plan and that the audit resource required was matched against planned resources. It was noted that the plan was based on the outcomes of consultation with all directors; a review of the Council’s Corporate Plan and Risk Register; and a consideration of wider risks known to affect other local authorities. The draft Annual Audit plan for 2026/27 was presented for approval.
The Committee discussed the 280 audit working days set out within the 2026/27 Audit Plan. It was explained that this provided enough scope and flexibility to thoroughly and effectively cover the planned audits. A new post had been established to take on the balance of work that was previously carried out by the internal audit team, including risk management and to follow up the implementation of actions arising from audits.
Mark Catlow queried the lack of timescales that accompanied the plan’s audit targets, and it was explained that implementing them was not practical until a detailed audit plan had been prepared. Furthermore, it was noted that all audits were completed in-line with their scope.
Councillor Parker raised concerns over future risks that had not been considered by the report, such as the increase in mandatory housing supply, Romsey Regeneration and Local Government Reorganisation. It was explained that because some of the risks were not internal, but external pressures, they were not something the plan could account for, however it meant that emphasis was put on the plan being fluid and additional contingency days were available for this eventuality. In regard to the Romsey Regeneration project, it was explained that this scheme was considered under project assurance.
Councillor Hasselmann asked why The Lights Theatre project had been included under ‘advice’ and not ‘assurance’ and it was noted that this was because it had already been audited as part of overall regeneration.
Councillor Hasselmann proposed and Councillor Kohli seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Draft Internal Audit Plan for 2026/27 be approved.
The Committee discussed the 280 audit working days set out within the 2026/27 Audit Plan. It was explained that this provided enough scope and flexibility to thoroughly and effectively cover the planned audits. A new post had been established to take on the balance of work that was previously carried out by the internal audit team, including risk management and to follow up the implementation of actions arising from audits.
Mark Catlow queried the lack of timescales that accompanied the plan’s audit targets, and it was explained that implementing them was not practical until a detailed audit plan had been prepared. Furthermore, it was noted that all audits were completed in-line with their scope.
Councillor Parker raised concerns over future risks that had not been considered by the report, such as the increase in mandatory housing supply, Romsey Regeneration and Local Government Reorganisation. It was explained that because some of the risks were not internal, but external pressures, they were not something the plan could account for, however it meant that emphasis was put on the plan being fluid and additional contingency days were available for this eventuality. In regard to the Romsey Regeneration project, it was explained that this scheme was considered under project assurance.
Councillor Hasselmann asked why The Lights Theatre project had been included under ‘advice’ and not ‘assurance’ and it was noted that this was because it had already been audited as part of overall regeneration.
Councillor Hasselmann proposed and Councillor Kohli seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Draft Internal Audit Plan for 2026/27 be approved.
10
Internal Audit - External Quality Assessment
To receive the results of Southern Internal Audit Partnership’s External Quality Assessment on compliance with Global Internal Audit Standards.
Attachments:
- Document 10) EQA report 12 Mar 2026
- Document 10) SIAP External Quality Assessment Review - Final Report - Annex 1 12 Mar 2026
- Document 10) SIAP External Quality Assessment - Action Plan - Annex 2 12 Mar 2026
Minutes
The Head of SIAP introduced the item on Internal Audit - External Quality Assessment. The report presented the outcomes of an external assessment of compliance with Global Internal Auditing Standards undertaken by SIAP. It was stated that the Council must seek an external audit at least once every five years to comply with legislation. No further action was required by the Council as a result of the report.
Councillor Hasselmann proposed and Councillor Brooks seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the External Quality Assessment of the Southern Internal Audit Partnership compliance with the Global Internal Auditing Standards in the UK Public Sector, as shown in Annex 1, be noted.
Councillor Hasselmann proposed and Councillor Brooks seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the External Quality Assessment of the Southern Internal Audit Partnership compliance with the Global Internal Auditing Standards in the UK Public Sector, as shown in Annex 1, be noted.
11
Accounting Policies 2025/26
This report presents the Accounting Policies for the Statement of Accounts 2025/26 for approval.
Attachments:
- Document 11) Accounting Policies report to Audit Cttee 12 Mar 2026
- Document 11) Annex - Accounting Policies 12 Mar 2026
Minutes
The Head of Finance introduced the item on the Accounting Policies 2025/26. The Council is required to produce and approve an Annual Statement of Accounts for each financial year in accordance with proper accounting practices.
Mark Catlow queried the potential challenges arising from future external auditing around the use of specific indices and whether the Council had liaised with the auditors to avoid any challenge. It was explained that in 2025-26 a full re-valuation would take place and indices would not be used until future years, which would give the Council an opportunity to learn from other Local Authorities during this period.
It was suggested that the Council could apply its own ‘materiality’ to help officers make better decisions when approving materiality and the inclusion of the estimates and significant accounting judgements made for the accounts. It was explained that the Council had a sound process when dealing with its judgements, which were considered on an annual basis. Officers were happy to including these items within the next report.
Councillor Hasselmann proposed and Councillor Parker seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Accounting Policies (Annex 1) to the Statement of Accounts 2025/26 be approved.
Mark Catlow queried the potential challenges arising from future external auditing around the use of specific indices and whether the Council had liaised with the auditors to avoid any challenge. It was explained that in 2025-26 a full re-valuation would take place and indices would not be used until future years, which would give the Council an opportunity to learn from other Local Authorities during this period.
It was suggested that the Council could apply its own ‘materiality’ to help officers make better decisions when approving materiality and the inclusion of the estimates and significant accounting judgements made for the accounts. It was explained that the Council had a sound process when dealing with its judgements, which were considered on an annual basis. Officers were happy to including these items within the next report.
Councillor Hasselmann proposed and Councillor Parker seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the Accounting Policies (Annex 1) to the Statement of Accounts 2025/26 be approved.
12
Corporate Risk Register - Update
To receive an update on the Corporate Risk Register.
Attachments:
- Document 12) Corporate Risk Register - update 12 Mar 2026
- Document 12) Corporate Risk Register ANNEX 1 12 Mar 2026
- Document Risk Register Dashboard 12 Mar 2026
Minutes
The Internal Audit Manager introduced the item on the Corporate Risk Register – Update, which summarised the key risks contained in the Council’s Corporate Risk Register. It was explained that maintaining up-to-date risk registers at both a Corporate and Service level would assist with the management of risks and monitoring of the actions to mitigate them. Furthermore, it was noted that no new risks had been added to the Corporate Risk Register and two risks were combined due to the overlap between them relating to the Corporate Plan and its associated projects.
It was expressed by the Committee that the dashboard had been useful in analysing the register.
Councillor Hasselmann proposed and Councillor L Lashbrook seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the updated Corporate Risk Register was noted.
It was expressed by the Committee that the dashboard had been useful in analysing the register.
Councillor Hasselmann proposed and Councillor L Lashbrook seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the updated Corporate Risk Register was noted.
13
Confidential Reporting Code for Employees
To receive the report on the Confidential Reporting Code for Employees.
Attachments:
- Document 14) Audit Committee Report -Whistleblowing- confidential reporting code March 2026 12 Mar 2026
- Document 14) Annex 1 - Part 5 - Confidential Reporting Code for Employees 12 Mar 2026
Minutes
The Director of Legal and Democratic and Monitoring Officer introduced the item on the Confidential Reporting Code for Employees and provided an update as to the use of the Council’s Confidential Reporting Code for Employees. Members were asked to note the content of the report.
Councillor Hasselmann proposed and Councillor Jeffrey seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the report of the Monitoring Officer on the Council’s Confidential Reporting Code for Employees was received.
Councillor Hasselmann proposed and Councillor Jeffrey seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
That the report of the Monitoring Officer on the Council’s Confidential Reporting Code for Employees was received.
14
Anti-fraud, Whistleblowing and Anti-Corruption Policies - Annual Update
To consider a review of the Anti-Fraud and Corruption policy, including Whistleblowing and the Anti-Bribery Policy.
Attachments:
- Document 14) Anti fraud and Corruption Policies - Annual Update Report 12 Mar 2026
- Document 14) Anti Fraud and Corruption Policy - Annual Update Annex 1 12 Mar 2026
- Document 14) Anti Bribery Policy updated Annex 2 12 Mar 2026
Minutes
The Internal Audit Manager introduced the item that provided an update on the Council’s Anti-Fraud & Corruption Policy (including Whistleblowing) which was annexed by an updated Anti-Bribery Policy. It was explained that the Anti-Bribery Policy, sets out the Council’s response to the Bribery Act 2010 which, was approved by Cabinet in 2012 and updated to reflect changes brought about by the Procurement Act 2023. These policies helped to protect the Council against fraud and corruption which could potentially lead to financial loss, bad publicity and loss of public confidence.
Councillor Hasselmann proposed and Councillor Parker seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
1. That the Anti-Fraud & Corruption Policy (including Whistleblowing) appended in Annex 1 was noted.
Recommended to Cabinet:
2. That the updated Anti-Bribery Policy provided in Annex 2 was approved
Councillor Hasselmann proposed and Councillor Parker seconded the motion as set out in the agenda. Upon being put to the vote the motion was carried.
Resolved:
1. That the Anti-Fraud & Corruption Policy (including Whistleblowing) appended in Annex 1 was noted.
Recommended to Cabinet:
2. That the updated Anti-Bribery Policy provided in Annex 2 was approved
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