The Charter Trustees for the City of Durham met to review the council's financial performance and governance for the 2025/26 financial year. Key discussions were scheduled around the Annual Governance Statement, the Revenue Outturn, and the Annual Return.

Annual Governance Statement 2025/26

A report was presented detailing the Annual Governance Statement (AGS) for the period April 2025 to March 2026. This statement is a requirement under the Accounts and Audit Regulations 2015 and outlines how the Charter Trustees comply with the requirements for the annual review of their system of internal control. The AGS is based on ten assertions relating to good governance, financial management, and internal control. Evidence was to be provided to demonstrate compliance with each assertion. The report noted that the annual Internal Audit report provided a Moderate overall assurance opinion on the adequacy and effectiveness of internal control operating across the Charter Trust in 2025/26. The report recommended that the content of the 2025/26 AGS be noted, and that the Chair and Treasurer approve and sign it as part of the consideration of the Annual Governance and Accountability Return 2025/26.

The report highlighted that the Charter Trustees are responsible for ensuring their business is conducted in accordance with the law and proper standards, and that public money is safeguarded. They operate under a Local Code of Corporate Governance consistent with the principles of the Chartered Institute of Public Finance and Accountancy (CIPFA) / Society of Local Authority Chief Executives (SOLACE) Framework – 'Delivering Good Governance in Local Government'. The AGS explains how the Charter Trustees comply with this code.

A significant issue noted was that the Charter Trustees failed to approve the 2024/25 AGAR in time to publish it by 1 July 2025. This meant they did not comply with Regulation 15 of the Accounts and Audit Regulations 2015, as the period for the exercise of public rights did not include the first 10 working days of July. Consequently, the Charter Trustees were required to answer 'No' to Assertion 4 of the Annual Governance Statement for 2025/26 and ensure proper provision for the exercise of public rights in 2026/27.

Additionally, the report indicated that the Charter Trust was not currently registered with the Information Commissioner's Office (ICO) as a Data Controller, a requirement for effective IT and data management. The Trust planned to take the necessary steps to complete this registration in 2026/27.

Revenue Outturn for the year ending 31 March 2026

This report provided information on the actual expenditure compared to the budget for the year ending 31 March 2026. It was scheduled to show that actual net expenditure was £66,290, representing an underspend of £5,270 (7.4%) against a budget of £71,560. The report detailed variances in specific budget headings, including transport, supplies and services, and support services. The underspend was attributed mainly to a net underspend on the Mayor's hospitality and an overachievement on ticket sales income for the Mayor's Civic Dinner. A donation of £3,000 was also received from the Durham City Freemen Charitable Trust for the purchase of new robes in 2026/27. The report recommended that the Charter Trustees note the outturn position for the year.

Annual Return for the year ended 31 March 2026

The meeting was scheduled to consider the Annual Governance and Accountability Return (AGAR) for the 2025/26 financial year. This return is a requirement for smaller relevant bodies in England with an annual turnover of £6.5 million or less. The AGAR comprises an Annual Internal Audit Report, Section 1 (Annual Governance Statement), and Section 2 (Accounting Statements). The report indicated that the fixed assets held by the Charter Trustees, primarily civic regalia and bequeathed assets, were valued at approximately £0.261 million. The recommendation was that the Charter Trustees approve the attached Annual Return (Sections 1 and 2) for the financial year ended 31 March 2026.

The Annual Internal Audit Report highlighted that Objective F, concerning cash payments, was Not covered as the trust does not maintain petty cash, with all transactions processed through the bank account. Objective O, relating to digital and data compliance, was marked as No because the Charter Trust had not met all eight required actions. Specifically, it did not fully comply with the Local Government Transparency Code 2015 by not publishing all individual expenditure items over £500, and it was not registered with the ICO as a Data Controller. Proposed actions included publishing expenditure items over £500 from 2026/27 and registering with the ICO.