The Governance Committee of the Isles of Scilly Council met on Thursday, 15 January 2026, to discuss proposed amendments to the Council's Standing Orders, review the Local Government and Social Care Ombudsman's annual letter, and consider progress on internal audits. The committee also reviewed the draft Annual Governance Statement for 2024-25.

Standing Orders

The committee was scheduled to consider proposed amendments to the Council's Standing Orders. These amendments, detailed in the Standing Orders Report, aim to clarify procedures for decision-making regarding human resource matters pertaining to the Chief Executive Officer. The proposals include day-to-day HR matters being handled by the Head of Human Resources in consultation with a senior officer, and other matters being referred to a panel of five Members. The report noted that these proposed changes exclude matters relating to appointment, disciplinary action, or dismissal, which are already covered by existing Standing Orders.

Local Government and Social Care Ombudsman Annual Review Letter

A report was scheduled to be presented regarding the Local Government and Social Care Ombudsman's annual review letter for 2024-25. This letter, available in the Local Government Ombudsman annual letter 002, covers the period from 1 April 2024 to 31 March 2025. The report indicated that the Ombudsman investigated three complaints concerning the Council during this period, none of which were upheld. These complaints related to the Council's policy on post-16 travel and accommodation, with investigations being concluded due to the commencement of court proceedings. One of these complaints continued and was subsequently investigated and not upheld, with no fault found in the Council's decision-making.

Internal Audit Progress Report 2025/26

The committee was to receive an update on the progress of internal audits for the financial year 2025/26, as outlined in the CIoS Internal Audit Governance Cttee Report - Jan 2026. The report detailed progress on the Cultural Centre & Museum Project, noting financial, construction, and logistical challenges that had been addressed, including securing additional grant funding. An audit review of cyber security indicated Reasonable assurance, with two issues raised concerning the absence of a designated IT officer and adequate cyber security training. The risk management audit also provided Reasonable assurance, with two findings related to improving integration with service-level risk management and the need for risk management training. Proposed changes to the Internal Audit Plan for 2025/26 included deferring the NHS Integration audit, replacing Financial Systems with Budget Management and Rent Collection, and removing International Recruitment.

Draft Annual Governance Statement 2024-25

The committee was scheduled to review the draft Annual Governance Statement (AGS) for 2024-25, presented in the AGS Report and detailed in Appendix AGS. This statement, prepared in accordance with the Accounts and Audit Regulations 2015 and the CIPFA/SOLACE Framework, assesses the Council's compliance with its local Code of Governance. The draft AGS identified a significant governance issue concerning the review and updating of policies and procedures. While some progress was made during 2024/25, further action is planned for 2025/26, including updating policies such as the Freedom of Information and Data Protection Policies, the Employee's Code of Conduct, and the Council's Scheme of Delegation. The report also noted that the external auditor's interim report for 2023/24 identified significant weaknesses in financial sustainability, recommending urgent action to address overspends within Adult Social Care and to review Medium Term Financial Plan assumptions.