Annual Report and Accounts for 2025-26

Audit of accounts 

Proportion of accounts audit opinions delivered by the planned or statutory deadline.

Target: 100%

Performance audit 

Proportion of other key audit products delivered in accordance with the planned timetable for ensuring timely and impactful reporting.

Target: 90%

Quality

Number of reviewed audits that are delivered in accordance with expected quality standards.

Target: All audits sampled in the highest two audit quality categories.

Credibility

Proportion of stakeholders that consider us to be an independent and authoritative communicator on the governance and stewardship of public money and assets.

Target: At least 90%

Providing insight

Proportion of stakeholders who said that through our work, they gained useful insight that they would not have acquired otherwise.

Target: At least 80%

Driving improvement

Proportion of stakeholders who believe our work has led to improvements in the provision of public services.

Target: At least 80%

Savings identified

Value of potential savings, productivity gains and other financial benefits identified through our work.

Target: At least £30 million during 2023-2026

Case study 1: Supporting improved financial sustainability and reporting across local government

Over the course of 2025-26, we placed particular emphasis on looking closely at financial pressures in local government: 

• In July 2025 we published a report on Temporary Accommodation examining rising costs and demand, and how to improve the value for money of councils’ approaches.
• In January 2026 we published a report on Capital Planning in Councils, setting out ways for councils and the Welsh Government to better plan capital spending, and including a checklist setting out key aspects of effective capital planning.
• In early April 2026 we published a report on Additional Learning Needs support: a system under strain, highlighting significant increases in council spending.
• We progressed work on local government funding arrangements and on the value for money of services for looked after children, with findings due to be published in Summer 2026.
• We enhanced sector insight through our updated Local Government Financial Sustainability Data Tool. 

This body of work not only provided assurance on how councils were managing financial pressures but also highlighted areas of stronger and good practice to support shared learning and improvement.

Case study 2: No time to lose – lessons from our work under the Well-being of Future Generations Act 

In April 2025, we published a landmark report on how public bodies are implementing the Act, ten years on from it becoming law. Despite examples of positive impact, we found that the Act is not yet driving the system-wide change that was intended. Given the massive demand and financial pressures public bodies face, we stressed that accelerating progress under the Act starts with prioritising prevention. We made four strategic recommendations to the Welsh Government, focused on creating the conditions for progress.

The approach taken to our work under the Act helped strengthen the report’s coverage and impact. Our commentary was informed by around 200 separate audits, through which we drew connections between the Act’s sustainable development principle and value for money. This gave us more insight on whether public bodies are making the Act ‘real’ across their various functions.

We worked closely with the Future Generations Commissioner as he published his own report alongside ours. Shortly before publication, the Senedd’s Equality and Social Justice Committee launched a post-legislative inquiry into the Act. We provided oral and written evidence to aid the inquiry, and our report and follow up evidence featured prominently in the Committee’s report which endorsed our recommendations.

Beyond the Committee’s work, our report has shaped wider conversations around the Act and what can be learned; we continue to contribute to a diverse range of related networks and events, both in Wales and across the UK.

Good practice outputs

Proportion of stakeholders who rate our good practice outputs as useful or very useful.

Target: At least 90%

Website visits

Number of visits to our website where at least one action is performed, e.g. download a report, click on a video.

Target: 53,000 each year

Social media

Number of social media engagements, ie interactions with our posts such as a like, a comment, or share.

Target: 4,000 each year

Sharing audit learning

Number of instances where we present audit learning to external audiences.

Target: 50 each year

Case study 3: Improving writing standards to strengthen clarity, accessibility and impact

Over the past year, we have taken significant steps to improve how Audit Wales performance audit reports are written. We developed and introduced new writing standards to make reports clearer, more consistent and easier to read.

To support this change, we worked with a specialist business writing consultancy. Together, we delivered a focused training programme for around 70 performance audit staff. Feedback from the training was strong, with most participants reporting that they felt positive about using the new approach in their work. We also introduced simpler report templates and created an online Style Hub. This gives staff a one-stop-shop for guidance, examples and tools.

The early indications of impact appear to be promising. 92% of the 112 participants in our 2026 stakeholder survey agreed that Audit Wales reports are clear, accessible and easy to understand. 80% of those participants also agreed that our reports and other outputs are relevant and impactful. An internal review of recently written audit reports against our new quality standards also showed clear improvements in structure, tone and clarity.

Case study 4: Supporting good financial and corporate governance and service improvement in the NHS

Throughout 2025-26, we used various mechanisms to ensure intelligence from our NHS accounts and performance audit work was communicated effectively and used to inform learning and improved performance:

• Our checklist for Board members on cost savings arrangements highlighted good practice to help guide debate on opportunities for sustainable cost improvements.
• Our commentary on NHS finances following our accounts audits, and data tool update, helped stakeholders understand the overall scale of the financial challenge in the NHS and some of the underpinning trends.
• Our structured assessment work continued to comment on the effectiveness of corporate governance arrangements in the NHS bodies; we presented learning from different aspects of that work to the all-Wales Directors of Corporate Governance Peer Network.
• We participated in the inaugural all-Wales NHS corporate governance community of practice event, delivering a presentation on the learning from our audit work to a large audience.
• Our programme of local performance audit work provided insight on areas of national concern such as tackling the planned care waiting list backlog and urgent and emergency care pathways.
• Our planned care work has highlighted the need for more sustainable solutions and opportunities for efficiency savings.
• Our work on the huge impact of delayed discharges on the NHS pointed to where better management of urgent and emergency care demand is needed to improve the safety and efficiency of those services.

The value of potential savings identified through these last two areas of work, combined with those from our earlier examination of Cancer services, have made a significant contribution to the £46 million figure we reported against KPI 7 (Savings identified) for the period 2023-2026.

Employee engagement

Annual staff survey engagement index score.

Target: At least the benchmark median score for the latest Civil Service survey

Turnover

Proportion of employees who voluntarily leave Audit Wales per annum.

Target: Between 5% and 10%

Sickness absence

Proportion of total time lost due to sickness absence.

Target: Less than 4%

Financial balance

Variance in net expenditure from the budget set out in our Estimate.

Target: Underspend of less than 2% of budget

Cost savings

Value of in-year cost savings delivered across the business.

Target: £200,000 as set out in our 2025-26 Estimate

Greenhouse gas emissions

Total CO₂ equivalent emissions

Target: Less than 290 tonnes (50% reduction on a 2019-20 baseline)

Trainee success rate

Proportion of trainees achieving first-time passes in their Professional and Advanced level examinations with the Institute of Chartered Accountants in England and Wales.

Target: At least 90%

Case study 5: Using Artificial Intelligence to support a modern office

During 2025–26, Audit Wales began introducing Microsoft Copilot, an Artificial Intelligence (AI) tool, to support how our work is planned and delivered and to support personal productivity. The project initially engaged a diverse cohort of 50 colleagues in a structured pilot to test Copilot capabilities in audit and corporate contexts.

Copilot was used in a controlled and responsible way to assist staff with routine but time consuming tasks to improve efficiency, effectiveness and quality. For example, teams have used the tool to summarise background information from large volumes of documents, helping them prepare more quickly for audit planning discussions.

Another key area of use has been the transcription and summarisation of meetings. This helps ensure that important conversations are recorded accurately and consistently, supporting a clear and reliable audit trail. 

Our Data Analytics team has used AI to assist with coding, with colleagues reporting impactful efficiencies and improved quality. Using the tool has supported the team in developing their coding skills through the challenge and support AI brings.

Strong safeguards are in place to ensure Copilot is used appropriately. Clear guidance covers data protection, confidentiality, ethical use and the importance of outputs being reviewed by staff. The tool supports our work, but responsibility for outputs, conclusions and judgements always remains with our people.

Early feedback from participants highlights increased confidence in using digital tools and reduced administrative burden. In a staff survey, 77% of respondents were favourable overall about Copilot. By adopting AI in a controlled and ethical way, Audit Wales is enhancing and modernising our working practices and helping build digital capability across the organisation.

Case study 6: Upskilling our staff for the future

During the year, we introduced the CIPFA Certificate in Performance Audit Fundamentals to strengthen our training provision for new entrants to performance audit. The programme provides a strong grounding in public sector governance and introduces the principles of public sector audit, with a particular focus on performance audit.

We also nominated two colleagues to begin studying for CIPFA’s new Performance Audit Qualification (PfAQ). This professional pathway is designed to enhance public sector auditors’ analytical capability in response to increasingly complex policy challenges.

The PfAQ provides formal recognition that performance auditing requires the same rigour, independence, and adherence to international standards as the audit of accounts. To strengthen our existing audit of accounts graduate training
scheme, in 2025-26 we introduced an introductory performance audit element into each year of the programme. This ensures that graduate trainees develop relevant knowledge, skills and experience should they wish to pursue performance audit after qualification.

We are also enhancing the scheme through the implementation of the ICAEW Next Generation ACA, embedding modern technical capabilities and the wider softskill competencies required of today’s - and tomorrow’s - auditors. Alongside this, we are establishing a new Pathways Programme, offering two entry routes into the ACA qualification: an apprenticeship and a graduate degree route.