The Corporate Governance Committee of Leicestershire County Council met on Friday 23 January 2026 to discuss a range of financial and governance matters. The meeting agenda included updates on the external audit of the Council's financial statements, the Treasury Management Strategy, and risk management. Members were also scheduled to review proposed changes to the Contract Procedure Rules and the Council's Modern Slavery Statement, as well as receive a report on whistleblowing concerns.

External Audit of 2024/25 Statement of Accounts, Annual Governance Statement and Pension Fund Accounts

The Committee was scheduled to receive an update on the external audit of the 2024/25 financial statements. The report indicated that the audit work by Grant Thornton UK LLP was nearing completion, with an unmodified opinion anticipated. Several technical amendments and disclosure changes were noted, including adjustments related to the Social Care Grant, Better Care Fund, and pooled investments. The report also highlighted a significant weakness identified in the Council's arrangements for financial sustainability concerning the Dedicated Schools Grant deficit, with a projected cumulative funding gap of £118 million by 2028/29. The auditors recommended that the Council urgently develop and implement plans to manage this deficit.

Treasury Management Strategy Statement 2026/27 and Quarterly Treasury Management Report

A key focus of the meeting was the Council's treasury management. The Committee was scheduled to review the Treasury Management Strategy Statement for 2026/27, which outlines the Council's policies for managing its treasury management investments, prioritising security, liquidity, and investment return. This included a review of the Minimum Revenue Provision (MRP) policy statement and the annual investment strategy. The Committee also received a quarterly treasury management report providing an update on actions taken for the quarter ending 31 December 2025. This report detailed movements and key performance indicators in the Council's investment loan portfolio, noting a decrease in the total balance available for short-term investment and a reduction in the Annual Percentage Rate (APR) on new loans, reflecting falling base rates.

Risk Management Update

The Committee was scheduled to receive an update on the Council's risk management arrangements. This included a review of corporate risks, the Risk Management Policy Statement and Strategy, and the Insurance Policy. A presentation was planned on the emerging risk associated with the use of Artificial Intelligence (AI) technologies, focusing on assurances regarding accuracy, training plans, and the use of personal data. The report also detailed proposed revisions to the Risk Management Policy Statement and Strategy, including reflecting the potential impact of government reorganisation plans and financial uncertainty. The Council's overall risk appetite was noted as 'Open', indicating a willingness to consider all delivery options with the highest probability of productive outcomes, even with elevated risks.

Global Internal Audit Standards in the UK Public Sector – Governance Documents

The Committee was scheduled to be informed about important governance documents required for conformance with Global Internal Audit Standards effective in the UK public sector from 1 April 2025. This included a review of the Internal Audit Charter, a self-assessment against CIPFA's Code of Practice for the Governance of Internal Audit in Local Government, and a draft Internal Audit Strategy. The self-assessment indicated good compliance but highlighted areas for improvement, such as developing an assurance map and protocols for joint work with other organisations.

Changes to the Contract Procedure Rules

The Committee was scheduled to review forthcoming changes to the Contract Procedure Rules, aligning them with the Procurement Act 2023. Notable proposed changes included updated financial thresholds, a requirement for prior approval for contracts longer than five years, and clarifications on preliminary market engagement and direct award procedures. The revised rules were to be presented to the County Council for approval.

Changes to the Council's Modern Slavery Statement

The Committee was scheduled to approve a revised Modern Slavery and Human Trafficking Statement. This statement, published voluntarily by the Council, outlines steps taken to ensure slavery and human trafficking are not occurring within its business or supply chains. The revisions aimed to align with the Procurement Act 2023, updated risk assessment criteria, and enhanced due diligence for high-risk contracts.

Whistleblowing Report

A summary of concerns raised under the Council's Whistleblowing Policy during the calendar year 2025 was to be presented. The report detailed two referrals processed under the policy, one concerning financial irregularities at ESPO and another regarding alleged food theft from the Food Court. Both cases were investigated, with the financial irregularity case closed due to a lack of evidence, and the food court matter resolved through staff responsibilities being reaffirmed. Updates to the Whistleblowing Policy were also noted, including references to new legislation and enhanced privacy notices.

The meeting also included standard agenda items such as the minutes of the previous meeting, question time, declarations of interest, and the presentation of petitions. The date of the next meeting was also confirmed.