The Governance and Audit Committee convened to discuss the 2024/25 draft statement of accounts, the external auditor's findings, and risk management, focusing on financial sustainability and governance. The committee reviewed reports from Grant Thornton, addressed concerns about spending and savings in adult social care and the Dedicated Schools Grant, and considered the implications of these issues for the council's long-term financial health. The committee also approved the extension of Dr David Horne's term of office as Independent Member to the end of March 2026.

Here's a more detailed breakdown of the key discussion points:

• Draft Statement of Accounts and Annual Governance Statement The committee was presented with the draft statement of accounts for 2024/25, with a recommendation to finalise and sign them, as audit work was substantially complete. The report reflected changes identified during the audit process. The committee also needed to approve the Annual Governance Statement and Letters of Representation for both the council and the Kent Pension Fund. The overall Statement of Accounts document includes KCC's single entity accounts, group accounts and the Kent Pension Fund's Accounts. The Kent Pension Fund Accounts were discussed and agreed at the previous Governance & Audit Committee meeting on 24 September 2025. John Betts, Interim Finance Director, indicated that the signing of the accounts at this stage would allow time to implement audit recommendations ahead of the completion of the 2025/26 accounts. Joe McKay, Acting Chief Accountant, and Cath Head, Head of Finance Operations, were available to answer questions.
• External Auditor's Audit Findings Report The committee reviewed the External Auditor's Audit Findings Report from Grant Thornton UK LLP, which provided an opinion on the council's financial statements. The report highlighted areas of focus, including the valuation of land and buildings, investment property, and the pension fund net liability. The audit was completed as planned, with no material adjustments required.
• External Auditor's Annual Report The committee reviewed the External Auditor's Annual Report from Grant Thornton, which summarised the work undertaken during 2024/25, with a core focus on value for money (VFM) arrangements. The report assessed the council's arrangements for financial sustainability, governance, and improving economy, efficiency, and effectiveness. The report identified significant weaknesses in the council's financial sustainability arrangements, particularly in relation to adult social care spending and the Dedicated Schools Grant deficit. Alister Brady raised concerns about the Dedicated School Grant and adult social care. The committee noted the report for assurance.
• External Auditor's Progress Report for Kent Pension Fund The committee reviewed the External Auditor's Progress Report for Kent Pension Fund for 2024/25. The report provided an overview of the audit's scope and progress, highlighting key findings and areas of focus. The committee noted the report for assurance.
• Governance and Audit Committee Action Tracker The committee reviewed the Governance and Audit Committee Action Tracker, which provided an update on the progress of actions arising from previous meetings.
• Verbal Risk Management Update Mark Scrivener, Head of Risk and Assurance Delivery, provided a verbal update on risk management. He mentioned that the Chancellor's budget on 26 November and the subsequent local government finance settlement would feed into the council's corporate risk profile. He also noted the delay of the school's white paper to early 2026 and the upcoming committee on Local Government Reorganisation.
• Independent Member - Term of Office The committee agreed to extend Dr David Horne's term of office as Independent Member to the end of March 2026 and noted that a recruitment exercise would be carried out. Dr Horne left the room for this item.
• Internal Audit Progress Report Debbie Chisman, Audit Manager, presented the Internal Audit Progress Report, highlighting positive outcomes from reviews of SEND assurances, equality, diversity and inclusion, risk management, disciplinaries, and payroll. She also noted limited assurance reviews of the use of consultants and contract innovation. Clare Maynard, Chief Procurement Officer, explained that contract management was delivered within the directorates and that the Procurement Team were producing a contract handover document. Simon Jones, Corporate Director for Growth, Environment and Transport, discussed the implementation of the Oracle Cloud Programme. Ben Sherreard, Strategic Manager, referred to the procurement CIAs (Contract Intelligence Agent) contained in the Internal Audit Progress Report. Russell Smith, Interim Head of Internal Audit, explained that the Adult Social Care Budget savings piece of work would continue into 2025 / 2026.
• Internal Audit Annual Report Russell Smith, Interim Head of Internal Audit, presented the Internal Audit Annual Report, noting an overall adequate opinion based on the Reasonable Assurance Model. He confirmed that quotes for the External Quality Assessment had been sought and assessed.
• Covert Enforcement Techniques Mark Rolfe, Head of Community Protection, provided an update on the use of covert investigative techniques. James Flannery, Counter Fraud Manager, explained that social care data would now be matched against mortality data.