Agenda and draft minutes
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Contact: Democratic Services
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Apologies To receive any apologies for absence.
The quorum for the Audit and Governance Committee is 3 members.
Additional documents: Minutes: Apologies were received from Councillors Tony Dale and Jon Waring and John Chesshire, an independent member of the Audit and Governance Committee.
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Substitute Members To note details of any substitution arrangements in place for the meeting. Additional documents: Minutes: There were no substitute Members. The Chair confirmed that the meeting was quorate. |
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Declarations of Interest To receive any declarations of interest from Members and Officers, relating to items to be considered at the meeting. Additional documents: Minutes: Councillor Len Wilkins made the Chair aware that he was a Member of the Council mentioned in Agenda Item 15. |
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To confirm the minutes of the meeting of the Committee held on 28 January 2025. Additional documents: Minutes: The minutes if the meeting held on 28 January 2025 were discussed.
There was a follow-up query regarding any potential statutory GDPR breaches. It was confirmed that no breaches had occurred.
Christopher Bass requested that his attendance record at the meeting be updated.
RESOLVED: That the Audit and Governance Committee APPROVE the minutes of the meeting held on 28 January 2025.
Voting record: For - 4, Against - 0, Abstentions - 0, Absent/Did not vote - 0 |
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Public Questions To deal with questions from the public within the open forum question and answer session of fifteen minutes in total. Questions or supplementary questions from each member of the public should be no longer than two minutes each and relate issues under the Committee’s remit. Additional documents: Minutes: There were no public questions. |
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Member Questions To deal with written questions by Members, relating to issues under the Committee’s remit, with the maximum length of oral supplementary questions at Committee being no longer than one minute. Responses to any supplementary questions will be dealt with in writing following the meeting. Additional documents: Minutes: There were no Member questions. |
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Risk Management Policy Summary/Purpose This report presents the latest version of the Council’s Risk and Opportunity Management Strategy.
Recommendation That the Audit and Governance Committee resolves to: 1. Approve the Risk and Opportunity Management Strategy. Additional documents: Minutes: The purpose of the report was to present the latest version of the Council’s Risk and Opportunity Management Strategy.
The Business Manager for Governance, Risk and Business Continuity introduced the item. It was noted that while there were minimal changes from the previous version, the document had been revised to reflect the current service structure following the transition of services. There had also been updates to clarify current roles and responsibilities within the Council.
In discussing the report, Members raised the following points:
The Deputy Chief Executive explained that given the current uncertainties, with the transfer of services from Publica and the prospect of local government reorganisation (LGR) in Gloucestershire, the agreed position had been to adopt a cautious approach. This view had been reached independently through discussions with the Chief Executive.
The Head of the Counter Fraud and Enforcement Unit explained that concerns would initially be raised with the Chief Finance Officer, unless he was implicated, in which case the matter would be escalated to the Chair of the Audit and Governance Committee. The Head of the Counter Fraud and Enforcement Unit confirmed their independence, reporting directly to the Committee while managing interactions based on the nature of the issue. Internal matters may involve HR, risk management, or finance teams and may require coordination with service managers across the Council. The Deputy Chief Executive Officer clarified that the Committee’s role was to assess whether the risk management process provided sufficient assurance, including challenging high-risk scores where mitigation appeared inadequate and ensuring that both operational and strategic risks were effectively managed.
RESOLVED: The Audit and Governance Committee APPROVED the Risk and Opportunity Management Strategy.
Voting record: For - 4, Against - 0, Abstentions - 0, Absent/Did not vote - 0 |
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Annual Governance Statement – Action Plan Update Summary/Purpose This report presents the Audit and Governance Committee with a progress update for the Annual Governance Action plan for 24/25.
Recommendation That the Audit and Governance Committee resolves to: 1. Note the progress updates.
Additional documents: Minutes: The purpose of the report was to present the Audit and Governance Committee with a progress update on the Annual Governance Action Plan for 2024/25.
The Business Manager for Governance, Risk and Business Continuity introduced the item and made the following points:
The Committee requested an update on the outstanding Peer Review actions. The Business Manager for Governance, Risk and Business Continuity reported positive feedback from the follow-up review, particularly in relation to governance. Highlights included the approval of the Committee’s new name and focus, member training, effective scrutiny and pre-decision engagement, and the valued contribution of the independent persons. A full report from the follow-up review was scheduled to be presented to Cabinet on 10 July. The committee expressed concerns regarding procurement, noting that although training was scheduled for the new financial year and a toolkit was in development, some staff remained untrained and without access to the necessary resources. This gap could affect compliance with new procurement requirements. The Business Manager for Governance, Risk and Business Continuity confirmed that the procurement team had completed all required training. An updated set of Contract Procedure Rules was approved by Council in March, and procurement colleagues had since been delivering a training programme for all decision-making managers, with sessions scheduled through June.
RESOLVED: The Audit and Governance Committee NOTED the progress updates. |
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Internal Audit Plan and Charter Summary/Purpose To present to the Audit and Governance Committee the Internal Audit Plan and Charter and Mandate for 2025/26 for consideration and approval.
Recommendation That the Audit and Governance Committee resolves to: 1. Approve the proposed Internal Audit Plan 2025/26 and Internal Audit Charter & Mandate. Additional documents:
Minutes: The purpose of the report was to present the Internal Audit Plan and Charter and Mandate for 2025/26 for consideration and approval.
The Committee raised concerns
about ensuring that high-risk areas, such as the Publica
transition, were prioritised early enough to support timely
decision-making and effective oversight. While the agile audit
approach allowed for responsiveness to emerging risks, it was noted
that key audits must not be delayed to the point of losing their
value.
The Committee sought
clarification on the lack of detail in the Internal Audit plan
regarding ICT audits. The Deputy Chief
Executive Officer acknowledged the need to outline the scope of
planned audits, while emphasising that excessive detail could risk
exposing potential cyber vulnerabilities.
RESOLVED: That the Audit and Governance Committee APPROVE the Internal Audit Plan 2025/26 and the Internal Audit Charter and Mandate.
Voting record: For - 4, Against - 0, Abstentions - 0, Absent/Did not vote - 0 |
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Internal Audit Progress Report Summary/Purpose To present a summary of the audit work concluded since the last meeting of this Committee.
Recommendation That the Audit and Governance Committee resolves to: 1. Note the report. Additional documents:
Minutes: The purpose of the report was to present a summary of the audit work concluded since the last Committee meeting.
In discussing the report, Members raised the following points:
RESOLVED: That the Audit and Governance Committee NOTED the Internal Audit Progress Report.
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Update on Government overhaul of local audit in England Summary/Purpose To provide a briefing on Local Audit Reform following the Government consultation response.
Recommendation To note the briefing note on Local Audit Reform. Additional documents: Minutes: The purpose of the briefing note was to provide an overview on the Government feedback on local audit reform.
The Independent Auditors, Bishop Fleming, reported that the government’s consultation on local audit reform had been prompted by widespread recognition that the system had been failing for several years. Many audits had been disclaimed, with firms facing significant backlogs due to complex council issues and limited audit capacity. While the proposed reforms were seen as necessary and broadly positive, it was acknowledged that implementation would be challenging, particularly in the context of wider local government reorganisation. The Committee welcomed the fact that action was being taken.
The Deputy Chief Executive Officer informed the Committee that around 1,000 public sector audits were currently without opinions, with a backstop date of 28 February 2025. Some councils had received significant audit bills despite not receiving formal opinions. In response, the government had announced reforms, including the creation of a new Local Audit Office to take on responsibilities for local audit, marking a shift from the previous model of oversight by a single regulator for both public and private sectors.
It was noted that audit fees had risen sharply in recent years to address under investment following the abolition of the Audit Commission, which had previously driven lower costs. Officers expressed support for higher audit fees if they resulted in timely, complete audits and welcomed the government’s efforts to stabilise the system, including consideration of in-house audit provision.
RESOLVED: That the Audit and Governance Committee NOTED the Government overhaul of local audit in England update.
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2024/25 External Audit Plan Summary/Purpose To receive the 2024/2025 Audit Plan from Bishop Fleming, the Council’s external auditors.
Recommendation That the Audit and Governance Committee resolves to: 1. Consider and note the 2024/2025 External Audit Plan. Additional documents: Minutes: The purpose of the report was to present the 2024/25 summary of the audit work concluded since the last committee meeting.
Alex Waller, Audit Partner at Bishop Fleming, introduced the report outlining the planned audit work for the year, in line with the Code of Audit Practice. The Plan was broadly consistent with previous years in terms of content and identified risks. Particular attention was drawn to the implementation of IFRS 16, a new accounting standard requiring finance leases to be recognised on the balance sheet.
The Committee noted ongoing sector-wide concerns regarding missed audit deadlines and statutory reporting timescales. Members requested an update on progress against the current schedule and any anticipated delivery challenges.
The Committee enquired about the audit fees for the previous year and the proposed fee relating to IFRS 16. The Deputy Chief Executive Officer and Chief Finance Officer confirmed that the previous year’s audit fee was £135,941 and that the current audit work had been approximately 10% below the revised scale fee. Any additional costs for the current year would depend on the scope of further work required, including verification of IFRS 16 assessments, IAS 19 considerations, and the outcome of the pension fund audit, which was conducted by separate auditors.
RESOLVED: The Audit and Governance Committee NOTED the External Audit Plan.
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CFEU Update Report (RIPA and IPA annual update) Summary/Purpose To provide the Committee with assurance over the counter fraud activities of the Council. Direct updates will continue to be provided biannually. Work streams are presented to the Committee detailing progress and results for consideration and comment as the body charged with governance in this area. The report also provides the annual update in relation to the Regulation of Investigatory Powers Act 2000 (RIPA), the Investigatory Powers Act 2016 (IPA) and the Council’s existing authorisation arrangements.
Recommendation That the Committee: 1. Considers and comments on the report. Additional documents: Minutes: The purpose of the report was to provide the Committee with assurance over the Council’s counter fraud activities, including an annual update on the Regulation of Investigatory Powers Act 2000 (RIPA), the Investigatory Powers Act 2016 (IPA), and the Council’s existing authorisation arrangements.
The Head of the Counter Fraud and Enforcement Unit highlighted the following points:
The Chair shared that the Chief Executive of the Public Sector Fraud Authority, Mark Fiesman, had visited and praised the Counter Fraud and Enforcement Unit (CFEU) for its effective operation on the Council’s behalf.
The Committee asked the Head of the Counter Fraud and Enforcement Unit whether she was assured that internal controls and whistleblowing systems were sufficient. The Head of Service expressed interest in including agency and contractor payroll data to strengthen delivery. The Committee was advised that internal measures ensured appropriate staff management and role fulfilment.
The Deputy Chief Executive Officer informed the Committee that the CFEU was responsible for the Council’s Anti-Fraud and Corruption Policy, focusing on fraud prevention and rigorous investigation, potentially leading to prosecution. The team also played an educational role, raising awareness among councillors and staff, particularly regarding procurement and cybersecurity risks. Training materials, such as the “Dodgy Dave” case, were used to illustrate how fraud can escalate across council operations.
RESOLVED: The Audit and Governance Committee NOTED the CFEU Update Report.
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Whistleblowing Policy Summary/Purpose To present the Audit and Governance Committee with an updated Whistle-Blowing Policy for approval. To update and replace the existing Whistle-Blowing Policy to highlight key legislation and the roles and responsibilities of Members, Officers and other parties.
Recommendation That the Committee resolves to: 1. Approve and adopt the Policy attached to this report. 2. Authorises the Monitoring Officer to approve future minor amendments to the Policy in consultation with the Counter Fraud and Enforcement Unit, Legal Services and the Leader of the Council. Additional documents:
Minutes:
The Committee highlighted that a key factor in the success of any whistleblowing policy was guaranteeing anonymity for whistle-blowers. It was noted that fear of reprisals or disbelief often prevented individuals from coming forward, especially in sensitive cases, and that providing absolute reassurance was essential to encourage disclosures.
The Committee asked whether there was assurance that the policy was being used and that staff felt informed and safe to speak up. The Head of Service confirmed that whistleblowing allegations had been received and were handled appropriately. A recent internal campaign had been launched to promote the policy and support staff in coming forward.
The Deputy Chief Executive Officer noted a minor but meaningful change in the whistleblowing policy, replacing the term “informer” with “whistle-blower.” This change was intended to reinforce a positive culture around whistleblowing, reassuring staff that raising concerns was a responsible and protected action and not an act of disloyalty. The update aimed to support a culture where whistleblowing was treated seriously and confidentially, reflecting the responsibility of all employees and managers.
RESOLVED: The Audit and Governance Committee APPROVED the recommendation to approve the Whistleblowing Policy and to authorises the Monitoring Officer to approve future minor amendments to the Policy in consultation with the Counter Fraud and Enforcement Unit, Legal Services and the Leader of the Council.
Voting record: For - 4, Against - 0, Abstentions - 0, Absent/Did not vote - 0
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Annual Standards Update Summary/Purpose To present the Audit and Governance Committee with standards updates and issues, including Code of Conduct Complaints for the year ending 31 March 2025.
Recommendations That Committee resolves to: 1. Note the update for the financial year 2024 - 2025. 2. Note the Committee on Standards in Public Life's response to the Government’s consultation: “Strengthening the standards and conduct framework for local authorities in England”.
Additional documents: Minutes: The Committee received an update on Code of Conduct complaints and related standards matters for the year ending 31 March 2025. Key points included:
The Committee discussed the adoption and application of the Code of Conduct across local councils. It was confirmed that all town and parish councils had been required to have a Code of Conduct since 2011 with no indication that any had failed to adopt one.
Concerns were raised about the lack of consistent induction or training for new or co-opted parish councillors. This was identified as a potential factor in the rise of conduct-related complaints.
The Committee noted that while all town and parish councils had adopted a Code of Conduct, many based on the National Association of Local Councils’ model, some may not have reviewed their codes in recent years. Members were encouraged to prompt local councils to review their codes, especially if not updated within the last three to four years.
RESOLVED: The Committee APPROVED the appointment of Cllrs Robbins, Mansilla, and Wilkins as members of the Standards Hearing Sub-Committee.
Voting record: For - 4, Against - 0, Abstentions - 0, Absent/Did not vote – 0 RESOLVED: The Audit and Governance Committee NOTED the update for the financial year 2024 – 2025 and the Committee on Standards in Public Life's response to the Government’s consultation: “Strengthening the standards and conduct framework for local authorities in England”.
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2024/25 Draft Accounting Policies Summary/Purpose This report presents the accounting policies to be included in the 2024/25 Statement of Accounts. This provides Members with the opportunity to review and approve the policies in advance of the preparation of the Statement of Accounts 2024/25. Approving the accounting policies in advance of the preparation of the accounts represents best practice.
Recommendations It is recommended that:
Additional documents:
Minutes: The Committee was informed of three key accounting changes since the previous year:
The Committee noted that, had the Council held a significant number of leases, assessment under IFRS 16 could have been complex and time-consuming due to the subjective judgment required to determine whether a lease conveyed the right to control the use of an identified asset.
The Deputy Chief Executive informed the Committee that most of the IFRS 16-related work involved reviewing contracts across the Council to identify potential leases. Following this review, only one qualifying lease had been identified. This lease would be recognised on the balance sheet under property, plant, and equipment, with a corresponding liability. The process was considered relatively straightforward in this case, though it was acknowledged that larger authorities might face more complexity.
The Committee sought confirmation that the new lease accounting rules (IFRS 16) and the extension of the pooled investment statutory override (IFRS 9) had been fully considered and reflected in the Council’s 2024/25 financial statements. The Chief Accountant confirmed that a thorough review had been undertaken to identify all relevant lease arrangements. The Deputy Chief Executive Officer informed the Committee that the statutory override for pooled fund investments had been flagged as a risk in the Medium-Term Financial Strategy for the past two years. Originally due to end on 31 March 2025, the override would have required the Council to recognise potential valuation losses in the 2024/25 accounts. To mitigate this, additional treasury income had been allocated to earmarked reserves. The recent extension of the override removed the immediate risk, allowing the accounts to be prepared without using reserves. It was noted that any new pooled fund investments would not be covered by the extension; however, there were no current plans to increase such holdings.
RESOLVED: The Audit and Governance Committee APPROVED the Draft Accounting Policy 2024/25.
Voting record: For - 4, Against - 0, Abstentions - 0, Absent/Did not vote - 0
The Committee noted that the following items were scheduled for the next meeting on 14 July:
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