Agenda and minutes

To note any apologies for absence from Members.

Apologies were received from Mr R Jones (co-opted member).

To provide an opportunity for Members and Officers to declare any disclosable pecuniary interests, other registerable interests, and non-registerable interests in any item on the agenda.

There were no declarations of interest.

To approve as a correct record the minutes of the meeting held on 4 December 2025.

The committee considered the minutes of the previous meeting held on 4 December 2025. The following was noted:

·       Officer Decision Record (ODR) Internal Audit Review: the committee noted that the new process had been launched as planned on 5 January 2026. A revised ODR template had been developed and was in use (single form as opposed to the previous three forms). Training was live and approx. 100 members of staff had been trained so far. Training and support for the new process was managed by Democratic Services. It was highlighted that further testing to revisit the Limited Assurance opinion would be undertaken in July/August 2026.

·       Risk Management Update (financial sustainability and Member highways budgets): the committee noted that the highways budget and capital programme were funded through prudential borrowing and projects were financed in the round, rather than on a project-by-project basis. Typical pothole and pathway repairs had an estimated economic life of 25–50 years, which aligned with the associated borrowing pay?back period.

·       Global Internal Audit Standards Self-Assessment / Internal Audit Charter: the committee noted that the external assessment report had been received and was with colleagues at other authorities for moderation however officers were confident that the council had conformed with the new public sector standards.

RESOLVED:

That the minutes of the meeting held on 4 December 2025 be agreed as a correct record and signed by the Chair.

In accordance with paragraphs 2.24 of the Council’s Committee Procedure Rules and Appendix on Public Speaking a total period of 15 minutes is allocated for members of the public to put questions to the committee on any matter relating to this agenda. Each member of the public will be allowed up to two minutes each to speak, and the Chair will have discretion to vary this where they consider it appropriate.

Members of the public wishing to speak are required to provide notice of this at least three clear working days’ in advance of the meeting and should include the question with that notice.

There were no registered speakers.

To receive an update on the committee action log.

The committee received an update on the action log. The following was noted:

• Committee Self-Assessment: this was being progressed and would be undertaken at the start of the 2026-27 municipal year to accommodate any changes to the membership of the committee. Initial conversations had taken place with the Local Government Association (LGA) around areas for support for the committee to self-assess itself against.

It was confirmed that written responses to questions asked by Members of the committee were published on the council’s website. The responses could be accessed on the Audit and Governance Committee pages, listed under the specific meeting at which each question was raised.

RESOLVED:

That the action log and updates provided be received and noted.

To consider a report setting out the final Annual Governance Statement.

The committee considered the Final Annual Governance Statement (AGS) for 2024/25, which must be approved alongside the Statement of Accounts in accordance with the Accounts and Audit Regulations 2015.

In presenting the report, officers highlighted that paragraph 5.38 of the Annual Governance Statement had omitted to include the Highways and Transport Committee and Economy and Growth Committee when referring to the statutory scrutiny role of the Service Committees. It was noted that the final Annual Governance Statement would be updated to rectify this error, with the revised wording set out below.

5.38 All service committees have oversight and scrutiny responsibilities, as set out in their terms of reference. Each of the service committees scrutinised quarterly performance scorecards and budget proposals for the 2024/25 period relevant to their area of focus.

5.39  The discharge of the Council’s responsibilities set out in section 19 of the Police and Justice Act 2006, section 244 of the National Health Service Act 2006, and section 9JA and 9JB of the Local Government Act 2000 in relation to flood risk management, is undertaken by the Scrutiny Committee.

The committee discussed the requirement for the AGS to be signed by the Leader, Deputy Leader and Acting Chief Executive once approved by the committee, and the powers of the Leader and Deputy Leader of the Council.

It was highlighted that the significant governance issue relating to ASDV Governance was proposed for removal due to substantial progress made. This was supported by the committee.

The committee debated the proposal to change the wording ‘resident led’ to ‘resident responsive’. The proposal was not carried, as the majority of the committee felt ‘resident led’ was appropriate, reflecting that members worked on behalf of residents and ensured they remained at the centre of decision?making.

Members highlighted that when the council moved from its previous Cabinet model form of governance there had been considerable debate and political campaigning around the benefit of change to a Committee System and that the proposed change back to a Cabinet system was being implemented outside of any election process. It was queried if this issue had been considered by the Constitution Committee. Officers committed to providing a written response.

RESOLVED (by majority):

That the Audit and Governance Committee

1.    Approve the Annual Governance Statement 2024/25, subject to the amendment to paragraph 5.38 and 5.39 being amended as set out in the above minute.

2.    Approve the removal of the significant governance issue relating to ASDV Governance from future versions of the Annual Governance Statement.

Report to follow.

The committee received the Final Statement of Accounts (SoA) for 2024/25 along with an update on the external audit undertaken by Ernst & Young (EY). EY had reviewed the draft accounts and proposed several amendments, including adjustments required by IFRS 16 (Leases) and additional disclosures to ensure full compliance with the CIPFA Code. These changes were agreed with officers and incorporated into the final statements.

The committee noted the reasons for the delay in the production of the report. A joint workshop would take place in March between finance and EY colleagues to prepare for the 2025-26 audit and lessons learnt from the 2024-25 audit process would be picked up and discussed at the workshop. The committee queried resource and the impact this may have had on the delay. It was clarified that there had previously been some resource issues within the finance team however a number of vacant posts had recently been successfully filled. Subject to approval at Full Council, there were proposals to add further capacity into the finance team.

RESOLVED:

That the Audit and Governance Committee

1.    Note the latest Statement of Accounts for 2024/25 (Appendix A) – reflecting the revisions as summarised in Appendix B.

Report to follow.

The committee received an update on the Audit of Accounts 2024/25 and noted EY’s Draft Audit Results Report, which confirmed that a disclaimed audit opinion would be issued due to continued evidence gaps, delays in financial reporting, and limitations of scope, particularly affecting the Comprehensive Income and Expenditure Statement.

Members were informed of significant weaknesses identified in governance, financial sustainability, and statutory financial reporting arrangements, alongside several high?risk control issues including reconciliations, PPE valuations, and IFRS 16 implementation. The committee also noted management responses, planned improvement actions, and the forthcoming joint assurance workshop with EY in March 2026.

The committee noted the uncorrected disclosure misstatement which related to the classification of Social Care Grants as non-ring-fenced grants. The council’s position was that Social Care Grant was a Section 31 Grant which was classified as a non-ringfenced grant (which formed part of Core Spending Power). The relevant adult and children’s social care budgets had seen growth, in excess, of these grants and as such the council had not adjusted for this item. The committee sought assurance that on this matter and agreed with the management response to leave this uncorrected.

The committee noted that 32 councillors and 8 senior officers had not provided declarations of interest and welcomed the update that a systematic solution would be implemented and would be captured through the council’s learning lounge portal. 

RESOLVED (unanimously):

That the Audit and Governance Committee

1.    Note the Draft Audit Results Report (Appendix A) for the year ending 31 March 2026.

2.    Note the management responses to the Audit Completion Report and the combined assurance workshop with EY and the Council that will take place in March 2026.

1.    Delegate to the Executive Director of Resources (S151 Officer), Ashley Hughes to:

a) Sign off the Statement of Accounts for 2024/25, and

b) Notify the Committee Members of the signed Accounts being published on the Council’s website.

To receive the audited financial statements of Ansa Environmental Services Ltd and Orbitas Bereavement Services Ltd for the year 2024/25. 

The committee received the audited financial statements for Ansa Environmental Services Ltd and Orbitas Bereavement Services Ltd for 2024/25, alongside the External Audit Findings Reports produced by Grant Thornton, who confirmed unqualified audit opinions for both companies.

The committee noted that no material changes had been required since the draft accounts were presented in July 2025 and that both company boards had formally approved and filed their accounts in November 2025. The committee received a summary of the auditors’ control findings.

The committee queried the profit figures for ANSA and Orbitas, both of which were reported as £210,608. It was queried if this was correct, or a typo. Officers agreed to refer this matter to Grant Thornton for a written response.

RESOLVED:

That the Audit and Governance Committee

To consider the committee Work Programme.

The committee considered the Work Programme. The following was noted:

• A draft Work Programme for the 2026-27 municipal year was being developed and would be shared with the committee as soon as possible.
• A report on External Borrowings to be added to the Work Programme.

RESOLVED:

That the Work Programme be noted.