The Audit and Governance Committee is scheduled to meet on 15 January 2026 to review the council's financial performance, internal audit progress, and risk management strategies. Key topics for discussion include the 2024/25 final accounts, the operation of the Code of Conduct for councillors, and an update on the treasury management activities for the first half of the financial year.

2024/25 Final Accounts and Audit

The committee is scheduled to receive an update on the final accounts for the 2024/25 financial year and the associated audit.

Internal Audit Progress Report

This report will provide an overview of the progress made by the Internal Audit team in delivering the Annual Audit Plan for 2025/26. It will summarise the audits completed, those in progress, and any outstanding actions. The report details that as of December 2025, fourteen audit assurance reviews had been finalised, with the majority receiving Reasonable Assurance opinions. A total of 88 audit recommendations were issued, with 3 classified as Priority 1, requiring senior management attention. The report also highlights that seven Priority 1 audit actions remain overdue against their original deadlines, with new agreed deadlines in place.

Operation of the Code of Conduct

This report will provide an update on the operation of the council's Code of Conduct for councillors and co-opted members. It will detail the status of complaints received since the last report, including an update on three complaints and subsequent investigations relating to Councillor Sheldon Vestey. The report notes that Councillor Vestey is on a six-month leave of absence and intends to re-engage with the Code of Conduct process in the New Year. The report also discusses the application of the Seven Nolan Principles¹ to the Code of Conduct, concluding that while these principles underpin expected behaviour, they are not directly enforceable rules within the Code itself.

Member Development Update

This update will outline the progress of the Member Development Programme, designed to enhance the skills and knowledge of councillors. The programme for 2025/26 includes core information and training sessions on topics such as the New National Planning Policy Framework, Community Safety, and Economic Growth. The report also details plans for a comprehensive Member Induction Programme in preparation for the 2026 local elections, which will support both new and returning councillors. Feedback from councillors has informed the development of this programme, with a focus on flexibility, IT support, and clear communication.

Review Risk Register and Discuss Mitigation

The committee will review the updated Corporate Risk Register for November 2025. This report highlights several key risks facing the council, including the potential need for Exceptional Financial Support to set a balanced budget in future years, driven by pressures in social care, temporary accommodation, and support for children with Special Educational Needs and Disabilities (SEND). The report also addresses the risk of failing to reduce carbon emissions in line with the council's commitments and the impacts of extreme weather events. Other significant risks include those associated with the Housing Revenue Account (HRA), technology failure and cyber security, and the impact of planned NHS changes on the council's resources. The report details the mitigation strategies in place for each identified risk.

Mid-Year Treasury Update 2025-26

This report provides a review of the council's treasury management operations for the first six months of the 2025/26 financial year, ending 30 September 2025. It confirms that all operations have complied with the council's Treasury Management Practices and the Treasury Management Strategy for 2025/26. The report indicates that debt levels remain prudent, and the council has maintained its investment priorities of security, liquidity, and then yield. The economic overview from treasury advisors MUFG Corporate Markets forecasts a gradual decline in interest rates over the next two to three years. The report also details the council's debt management activity, including performance against prudential indicators, and its cash management and investment activities, showing that interest earned on investments totalled £935k, with a weighted average rate of return of 4.21%.