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'Safeguards Having to be Put in Place' as Council's New Audit Chief Found to be Married to Finance Director....

4 hours ago
3 min read
‘Keeping it in the family?’ — The appointment of Chief Finance Officer James Magog’s partner as Head of Internal Audit is unlikely to ease concerns over senior-level family connections and perceived conflicts of interest within Hartlepool Borough Council.
‘Keeping it in the family?’ — The appointment of Chief Finance Officer James Magog’s partner as Head of Internal Audit is unlikely to ease concerns over senior-level family connections and perceived conflicts of interest within Hartlepool Borough Council.

Hartlepool Borough Council Forced to put Significant Safeguards in Place After New Internal Audit Chief Revealed to Be Married to Finance Director…


15th September 2026


Hartlepool Borough Council has this week confirmed that its newly appointed Head of Internal Audit is married to the authority’s Director of Finance, IT and Digital, with safeguards now having to be put in place to address any potential conflicts of interest that may arise..


The unusual governance arrangement was disclosed in documents set to be presented to the council’s Audit and Governance Committee on 22nd of September.


The minutes record that the council’s former Principal Auditor had been appointed as the new Head of Internal Audit following a recruitment process following the retirement of the previous Head of Audit and Governance.


However, members are also set to be informed that the new Head of Internal Audit and the Director of Finance, IT and Digital are married.


According to the council, both its external auditor and the Chartered Institute of Public Finance and Accountancy (CIPFA) were said to have been consulted about the ‘arrangement’ with council documents stating that, following consultations and consideration of the Global Internal Audit Standards, mitigation measures have been introduced to prevent any potential conflict of interest.


Those arrangements will also remain under review, with the council saying commentary will be included within future Annual Governance Statements where required.


Independence is a key requirement


The disclosure comes as the same September committee papers set out new Global Internal Audit Standards governing how council audit functions should operate with those standards placing a considerable emphasis on the organisations independence of internal auditors.


Among the conditions presented to councillors is a requirement for Hartlepool Borough Council to establish a direct reporting relationship with the chief audit executive and ensure that Internal Audit has sufficient organisational authority to carry out its work without management interference.


They further require senior management and the Audit and Governance Committee to ensure Internal Audit is free from interference when deciding the scope of audits, carrying out investigations and communicating its findings.


Council says safeguards are in place


Familial employment within Hartlepool Borough Council has been a controversial issue for decades, with many feeling workers & family members are getting an unfair advantage when it comes to the Councils recruitment process, with the latest arrangement doing little to quell public fears that once again Hartlepool Borough Council’s employing those from within a small inner circle of family members, with its claimed that about a quarter of the councils overall workforce now consists of family members being employed.


The latest issue appears to have been recognised as a potential governance risk requiring formal safeguards having to be put in place which makes the recruitment of the chief finance officers partner ever more controversial.


Internal Audit has a significant role inside Hartlepool Borough Council. Its current plan includes scrutiny of fundamental council systems including salaries, debtors, creditors and risk management, with 69 areas of audit coverage planned during 2026/27. The service has a net annual budget of £229,976 and currently operates with five full-time-equivalent posts, according to the committee papers.


Arrangement to remain under scrutiny


The council papers fail to provide a complete & detailed breakdown of each safeguard that’s been imposed, however, its claimed the arrangements are expected to be kept under review and addressed through the council’s governance reporting where necessary.



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