The Audit and Governance Committee of Gloucestershire County Council met on Thursday 24 September 2026. The committee was scheduled to review the Council's financial statements for the year ended 31 March 2026, including reports from external auditors KPMG. The committee was also scheduled to discuss the Annual Governance Statement, treasury management updates, and internal audit progress.

KPMG Audit Findings Report

The committee was scheduled to note the KPMG Audit Findings Report¹. This report detailed the external auditor's findings from the audit of the Council's financial statements for the year ended 31 March 2026. The report is available within the Public reports pack.

KPMG Annual Auditor's Report

The committee was also scheduled to note the KPMG Annual Auditor's Report². This report provides commentary on the Council's arrangements for securing economy, efficiency, and effectiveness in its use of resources and is required to be published on the Council's website. The report is available within the Public reports pack.

Annual Governance Statement

A key item on the agenda was the review of the Annual Governance Statement (AGS) for 2025/26³. This statutory document describes the Council's governance arrangements and outlines planned actions to enhance good governance. The AGS is signed by the Leader, Chief Executive, and Section 151 Officer and accompanies the Annual Statement of Accounts. The report indicated that the review concluded that the Council's governance arrangements remained fit for purpose during 2025/26, supporting effective decision-making, financial management, and oversight of risk and performance, while also identifying areas for further improvement in 2026/27.

Annual Statement of Accounts

The committee was asked to consider the Statement of Accounts for the year ended 31 March 2026⁴, including the Gloucestershire Pension Fund Accounts 2025/26. This consideration was subject to any final non-material amendments required to conclude the audit. The committee was also asked to consider delegating authority to the Chief Financial Officer, in consultation with the Chair, to approve the final audited Statement of Accounts once the audit was completed. Furthermore, authority was to be considered for delegation to the Deputy Chief Executive and Executive Director of Corporate Resources and the Chair of the Committee to sign letters of representation on behalf of the Council and the Gloucestershire Pension Fund. The draft Statement of Accounts can be found within the Public reports pack.

Annual Review of Local Government and Social Care Ombudsman Complaints

The committee was scheduled to review the handling of complaints referred to the Local Government and Social Care Ombudsman (LGSCO) during 2025/26⁵. The report aimed to consider the Council's performance in handling these escalated complaints and to note the steps being taken to implement the LGSCO's new complaint handling code. The report indicated that 26 complaints were upheld against the Council in 2025/26, with the majority relating to Education services, particularly those concerning Special Educational Needs and Disabilities (SEND). The LGSCO issued no Public Interest Reports about Gloucestershire County Council during the year.

Data Protection Officer Annual Report

The committee was scheduled to note the Data Protection Officer's Annual Report for 2025/2026⁶. This report provides an assessment of data protection compliance, highlights key risks and developments, and identifies priority areas for improvement. Key achievements included the adoption of a Data Ethics Statement and improvements to the Data Protection Impact Assessment (DPIA) process. Areas for further improvement included embedding data protection processes within the Local Government Reorganisation (LGR) programme and strengthening collaboration across information governance boards.

Treasury Management Update Report

An update on Treasury Management activities for the 2026/27 financial year to date was scheduled for review⁷. The report was to cover the current economic climate, borrowing strategy, investment review, and compliance with Prudential Indicators. The economic environment was described as volatile, with persistent inflationary pressures and uncertainty over monetary policy. The report noted that while borrowing interest payable remained in line with expectations, investment income was above expectations due to elevated interest rates. Security of capital remained GCC's primary investment objective, with a focus on high-quality counterparties and diversification. The report also indicated that GCC was approaching a point where long-term external borrowing might be needed to support the capital programme.

Internal Audit Activity Progress Report

The committee was to be informed of the progress made against the approved Internal Audit Plan for 2026-27⁸. The report summarised the assurance levels provided by completed audits, noting areas of good practice and key findings. Audits with Substantial assurance included Kinship Regulation 24 Arrangements and Structural Maintenance Contract – Tarmac Resurfacing. Several audits received Acceptable assurance, including those related to GFRS Occupational Health and Wellbeing and Home to School Transport DBS Checks. A Limited assurance opinion was given for the Care Homes, Nursing Homes, and External Home Care (Domiciliary) Providers audit. The report also detailed the number of open recommendations from previous years.

Draft Internal Audit Plan 2027-28

The committee was asked to note the draft Internal Audit Plan for 2027-28⁹, which reflects the Council's current risk profile and strategic priorities. The plan aims to provide assurance over key risk areas while remaining realistic and deliverable within available resources. The report indicated that the plan is a continuous process, with ongoing dialogue with stakeholders to ensure alignment with emerging risks and organisational developments.

Annual Health & Safety Report

The committee was scheduled to note the Safety, Health & Environment (SHE) Annual Report for 2025/26¹⁰. This report summarises the Council's health and safety performance, highlighting areas of good practice and progress. It indicated that reported incidents increased, particularly in libraries, Children's Services, and schools, which was attributed partly to improved reporting culture. The report noted that strategic health and safety risk remained low, with no HSE interventions. Key priorities for 2026/27 included strengthening corporate health and safety governance, improving risk assessment consistency, and implementing a new lone worker safety solution.

Audit and Governance Committee Work Plan

The committee was to review the proposed work plan for 2027¹¹. This plan outlines the reports scheduled for discussion at future meetings, covering external audit progress, treasury management, internal audit activity, annual reports on various governance matters, and the draft internal audit plan for the following year.