As we approach the end of another audit cycle, the findings from SALC’s 2025 internal audits provide a clear picture of how local councils across Suffolk are performing. 

The good news? Most councils continue to demonstrate sound governance and financial control, although a few recurring themes have emerged that still require attention.  

This year’s audits have highlighted several key trends which we have listed below. 

Don’t forget that the SALC team is available to support any council with outstanding recommendations from their audit and can help develop a clear action plan to address them.

Model Publication Scheme: a common misunderstanding

Several councils had adopted the ICO’s Model Publication Scheme policy but hadn’t created the actual publication scheme it requires. Councils need to remember that these two are not the same.  The ICO model is the framework, while each council must produce its own list of information it will publish and how it can be accessed. Reviewing this ensures compliance with the Freedom of Information Act and supports transparency.

Model Publication Scheme (framework) (available under the category Freedom of Information)

Template Publication scheme (available under the category Freedom of information)

CIL: identifying it correctly in reserves

In some cases, CIL income had been properly recorded and the return completed, but it hadn’t been shown as an earmarked reserve. This resulted in general reserves appearing higher than they were, requiring adjustments to clearly identify a CIL reserve in the accounts. It’s a small but important distinction. CIL funds must be ring-fenced for eligible projects, not included within general balances.

Model Council article - Community Infrastructure Levy

Terms of Reference for Committees: clarity matters

There was some confusion this year around what constitutes a committee. In a few cases, councils referred to “committee decisions” in full council minutes, but it turned out these were actually informal gatherings of councillors to discuss topics such as the budget or precept. It’s important to remember that if a group has delegated decision-making powers, it is a committee and must therefore be formally appointed, advertised, and minuted in accordance with the Local Government Act 1972. Clear terms of reference help avoid any misunderstanding and ensure transparency in decision-making.

Model Council article - Committees

Risk Assessment: keeping it current

Some councils had completed a risk assessment in previous years, but there was no evidence of an annual review during the audit year. Regularly reviewing and updating the assessment of risks facing the council is essential and it demonstrates active management of governance and financial risks and is a key part of the audit and accountability framework. A simple annual review and minute noting its approval can ensure ongoing compliance and good practice.

Internal Controls: evidence of review

While most councils had internal controls in place, there was often no evidence that these had been reviewed during the year. Assertion 5 of the Annual Governance Statement requires councils not only to have controls, but to formally review and record that review. Simply noting the approval of financial procedures or risk assessments in the minutes can provide the necessary evidence and demonstrate good governance.

Reserves: striking the right balance

Some councils were found to be holding general reserves in excess of their annual precept, with a limited understanding of how earmarked reserves should operate. General reserves should typically be maintained at between 3 and 12 months of net revenue expenditure, while earmarked reserves are used to set aside funds for specific, planned projects or commitments. Clear differentiation between the two supports transparency, sound financial planning, and compliance with audit expectations.

Model Council article - Reserves

Engagement of the Internal Auditor: formal approval required

In some cases, a letter of engagement with the internal auditor had been signed, but there was no record in the minutes showing that the council had formally approved the appointment. The appointment of the internal auditor must be agreed and minuted by the full council to demonstrate transparency and compliance with governance requirements. A simple resolution confirming the appointment each year provides clear evidence of due process.

Websites: getting it right

Many councils are still navigating the challenge of managing and maintaining their websites effectively. Key issues include unclear responsibilities, outdated content, and a lack of compliance with transparency requirements such as the Publication Scheme and accessibility standards.

A structured approach ensures your website meets legal requirements and remains a useful resource for residents. Regular updates and compliance also help demonstrate the new 2026 audit focus under Assertion 10, showing that the council is fulfilling its responsibilities for proper publication and accountability.

Model Council articles -  Assertion 10 - Overview of changes to the Practitioners' Guide 2025

Assertion 10 - getting to grips with the latest website accessibility regulations

Assertion 10 - update on data compliance