The Audit and Governance Committee of Rushmoor Borough Council was scheduled to discuss a range of financial and operational reports. Key topics included updates on the council's risk assessment, internal audit progress, and corporate policies regarding surveillance powers. The committee was also set to review the annual ombudsman complaint letter and the council's financial statements.

Reserve Risk Assessment Update Report

The committee was scheduled to receive a report from Ernst & Young, the council's external auditors, detailing an update on the reserve risk assessment. This report outlines the procedures performed in respect of opening reserve balances, undertaken in response to prior-year disclaimed audit opinions and in accordance with guidance from the National Audit Office. The assessment aimed to identify the likelihood and potential magnitude of risks of material misstatement within reserves, and management's readiness to support the historical rebuild process. The report indicated that the risk of material misstatement was not uniform across all reserves, with certain reserves assessed as presenting a higher risk due to factors such as the size of balances, the degree of judgement required in accounting treatment, and reliance on complex statutory and capital accounting arrangements. The implications for the 2025/26 audit were also to be discussed, noting that pre-2023/24 gaps in assurance could not be sufficiently addressed within the 2025/26 audit to support progression towards qualified or unmodified audit opinions.

Internal Audit Progress Report

Southern Internal Audit Partnership was scheduled to present its progress report, outlining internal audit activity against the approved audit plan. This report, in line with Global Internal Audit Standards in the UK Public Sector, was intended to provide an overview of key updates pertinent to the committee's role in relation to internal audit. The report detailed the mandate for internal audit in local government as specified within The Accounts and Audit Regulations 2015, emphasizing the need for an effective internal audit to evaluate risk management, control, and governance processes. The progress report was to summarise ongoing confirmation of independence, significant issues, resourcing, and the status of live internal audit reports and management actions. The report also noted that there had been no new 'limited' or 'no' assurance opinion reports for the 2026/27 year to date.

Corporate Policy and Guidance on Surveillance and the Regulation of Investigatory Powers Act 2000

The committee was to consider a report from the Executive Head of Governance & Law updating members on the council's surveillance activities, both within and outside the scope of the Regulation of Investigatory Powers Act 2000 (RIPA). The report highlighted that most surveillance carried out by the council is overt and therefore outside the remit of RIPA. It noted that RIPA powers are used infrequently, and that the Investigatory Powers Commissioner's Office (IPCO) regularly reviews the council's policies and procedures. The report also detailed that a new Surveillance and RIPA & Investigatory Powers Act 2016 (IPA) as Amended by Investigatory Powers (Amendment) Act 2024 Policy and Guidance was being finalised to incorporate recent updates to the statutory framework. There had been no requests for RIPA authorisation via Legal Services since the last report in September 2025, and in April 2026, the IPCO confirmed satisfaction with the council's self-assessment response regarding RIPA compliance.

Annual Ombudsman Complaint Review Letter 2025/26

The committee was scheduled to receive the Monitoring Officer's report summarising the outcome and findings of the Annual Review Letter 2025/26 from the Local Government & Social Care Ombudsman (LGSCO). For the period 1 April 2025 to 31 March 2026, nine complaints concerning Rushmoor Borough Council were received by the LGSCO. Of these, five were outside the Ombudsman's jurisdiction or not yet ready for investigation, and three were closed without formal investigation. One complaint proceeded to investigation but was not upheld. Consequently, no further recommendations for service improvement were received from the LGSCO. The report concluded that the council was responding well to complaints and had a clean bill of health from the LGSCO.

Unaudited Statement of Accounts and Annual Governance Statement

The committee was to review the unaudited Statement of Accounts for 2025/26. The report indicated that the preparation of the Statement of Accounts and the audit scrutiny provided reassurance that the accounts gave a true and fair view of the council's financial position. Members' role in approval was to demonstrate ownership of the Statement of Accounts and confidence in the Chief Finance Officer and the accounting processes. The Accounts and Audit Regulations 2015 require the council to review the effectiveness of its internal control and prepare an annual governance statement for review and approval by the committee. An informal workshop was to be arranged to provide members with an overview of the Statement of Accounts and the findings of the External Auditor.

Annual Governance Statement

In conjunction with the Statement of Accounts, the committee was also scheduled to review the Annual Governance Statement for 2025/26. This statement sets out the procedure for its compilation and the committee's role in ensuring a meaningful review, confirming that it reflects the governance environment and any actions required for improvement. Members were to be satisfied that the statement demonstrated how governance supported the achievement of the council's objectives. During discussions, clarification was sought regarding a reference to the Corporate Governance Group being on hiatus, with advice that the group was on hold pending a review of its terms of reference. The use of procedural exemptions was also questioned, with a suggestion that their operation be reviewed through future Internal Audit work.

Status of the Financial Recovery Working Group

A verbal update was scheduled regarding the council's financial position and the arrangements for monitoring the delivery of the Budget Strategy. Members were to be informed that a Financial Recovery Working Group had been established to oversee actions required to return the budget to a balanced position, with the majority of these actions now completed. Following the announcement of Local Government Reorganisation (LGR), the council's financial strategy had shifted to maintaining service delivery and preparing for the new authority, ensuring financial sustainability until Vesting Day. Monthly budget monitoring reports were noted as the primary mechanism for managing financial risks. Concerns were to be expressed regarding ongoing financial risks, and the importance of regular Member oversight was to be emphasised. A proposal was to be supported for Cabinet to establish a politically balanced Member working group, meeting monthly, to review the council's financial management.