The Audit and Governance Committee of West Northamptonshire Council was scheduled to convene on 2 June 2025 to address a range of topics, including internal audit progress, strategic risk management, and governance updates. The agenda included reviewing the committee's terms of reference, an external audit plan from Grant Thornton, and a discussion on the council's work programme. Additionally, the committee was expected to consider the exclusion of the press and public from certain discussions.

External Audit Plan

The Audit and Governance Committee was scheduled to look at the external audit plan prepared by Grant Thornton. The External Audit Plan - Grant Thornton included Grant Thornton's assessment of significant risks requiring special audit consideration. These included:

• Management override of controls
• Valuation of land and buildings and investment properties
• Valuation of council dwellings
• Valuation of the pension fund net liability
• Existence of Short-Term Debtors
• Existence of Short-Term Creditors
• Existence and Accuracy of Cash
• Implementation of IFRS16

Grant Thornton's proposed fee for the audit was £804,026.

Strategic Risk Register

The committee was scheduled to review the updated strategic risk register, which identifies significant risks that could impact the council's objectives.

The Strategic Risk Register included 14 high-level risks, along with mitigating actions. One risk, the Integrated Winter Discharge Plan, had been removed, and a new risk, Electricity Constraints for Future Developments, had been added.

The register assessed each risk based on its likelihood and impact, both before and after considering mitigating actions. A traffic light system categorised risks as high (red), medium (amber), or low (green).

Some of the key risks identified in the register were:

• Cyber Security
• NPH Residential - Change in Regulations
• Cost of living impact - increased demand for services
• Availability of affordable rental accommodation
• Health and Safety of WNC properties
• Inability to recruit and therefore deliver
• Political risk
• Inter authority agreements
• NCT-relationships management (WNC/NNC/NCT)
• NCT-Financial pressures
• Financial Sustainability
• Counter Terrorism
• Inability to meet Statutory Duties
• Constraints on electricity network grid

The Strategic Risk Register - Appendix 3 included the council's Risk Management Strategy, which sought to establish a clear and logical approach to risk management. The strategy specified that risks should be assessed based on likelihood and impact both at gross (or inherent) risk level, and again at net risk level.

Internal Audit Progress

The Audit and Governance Committee was scheduled to receive an update on the work delivered by the Audit & Risk Service, and progress against the Internal Audit Plan for 2024-25.

According to the Internal Audit Progress report, several amendments had been made to the 2024/25 audit plan since the last progress report:

• Adult Social Care – Commissioning & Monitoring of Providers: postponed at the request of management.
• NCT Oversight & Monitoring: refocused towards reviewing the Council’s proposed improvements in oversight arrangements.
• Customer Services / Contact Centre / One-Stop-Shop: removed from the audit plan due to lack of resources.
• Insurance: could not be progressed due to staff vacancies in the Insurance team.
• Individual School Audits: only 2 of the originally planned 4 audits would be delivered due to lack of resources.

The report also summarised outcomes for cases completed by the Counter Fraud Team during 2024/25, including housing tenancies, homelessness, adult social services, blue badges/parking, NCT (Children’s Trust), disabled bus pass, finance, HR/staff related, and revs & bens.

The following final audit reports had been issued since the last progress update to the Committee:

• Out of Area / Independent School Placements: Limited assurance
• Early Years: Limited assurance
• Call Care: Limited assurance
• Adult Social Care & Health Transport: Limited assurance
• Business Continuity: Limited assurance
• Homelessness / Temporary Accommodation: Limited assurance
• Public Health Grant: Reasonable assurance
• Property & Land: Ownership, Transfers and Disposals: Reasonable assurance
• Housing Revenue Account (HRA) – Accounting: Reasonable assurance
• Housing Benefits: Reasonable assurance
• Capital Programme (Management & Monitoring): Reasonable assurance
• Computer Audit: ICT Service Helpdesk: Substantial assurance
• Ethical Standards & Governance: Substantial assurance
• Commercial & Investment Properties: Reasonable assurance

Representatives from the service management teams for ‘Out of Area / Independent School Placements’ (Internal Audit Progress - Appendix B) and ‘Early Years’ (Internal Audit Progress - Appendix C) were scheduled to attend the meeting to answer questions and summarise progress being made to address the issues noted in the reports.

The Out of Area / Independent School Placements audit sought to determine whether:

• The service is supported by a robust and effective governance structure.
• The placement process is clear and well-defined.
• Budget management and control processes are formalised, documented, and aligned with applicable financial laws and regulations.
• Payments are processed only after a three-way match control and all necessary approvals are obtained.

The Early Years audit sought to determine whether:

• Robust governance structure exists to enable appropriate oversight over the overall performance of all schools and Ofsted Report Early Years Providers.
• Programs and plans exist to ensure that all relevant staff receive regular training.
• There is a defined and documented process for allocating early years funding received from the Government to registered providers.

Governance Update

The committee was scheduled to receive a Governance Update on a variety of current governance matters.

The update included:

• A new Information Governance and Data Management Strategy was drafted and is currently in its consultation phase.
• Phase 2 of the Storafile Document Storage project continues, with the current focus on the destruction of as much suitable material as possible to drive down the amount of material stored with the provider.
• There have been no applications for RIPA authorisations since the last committee meeting.
• The draft Annual Governance Statement (AGS) is almost complete.
• The Corporate Enforcement Group considered the government consultation on the ‘Oversight and regulation of private prosecutors in the criminal justice system’.

Terms of Reference

The committee was scheduled to note the current Terms of Reference for the Audit and Governance Committee.

The purpose of the Audit and Governance Committee is to:

• Provide independent assurance as to the Council’s governance, risk management framework and associated control environment.
• Provide independent scrutiny of the Council’s financial and non-financial performance and oversee the Council’s financial reporting process.
• Act as an advisory committee to the Council and the Cabinet on audit and governance issues.