The Audit & Governance Committee of Oxfordshire Council was scheduled to discuss the council's financial strategies, internal audit progress, and governance arrangements. Key topics included the Treasury Management Strategy, the Financial Management Code of Practice, and updates on the Annual Governance Statement.

Treasury Management Strategy and Annual Investment Strategy 2026/27

The committee was scheduled to review the council's strategic objectives for debt and investment management for the upcoming financial year. The report outlined a forecast average cash balance of £345 million for 2026/27, with 25% (£88 million) to be invested in strategic pooled funds and the remaining 75% (£257 million) to be managed internally. Projections indicated a decrease in the Bank of England Base Rate from 3.75% or 3.50% to 3.25% by the end of the financial year, with a similar downward trend forecast for UK Government Gilt yields. The strategy proposed a decrease in long-term investments to allow for greater internal borrowing, as the council's Capital Financing Requirement (CFR) is expected to increase significantly. The committee was recommended to endorse the Treasury Management Strategy & Annual Investment Strategy for 2025/26.

Financial Management Code of Practice Compliance Assessment

A self-assessment of the council's compliance with the Financial Management Code of Practice (FM Code) for 2025/26 was presented. The FM Code, launched by the Chartered Institute of Public Finance and Accountancy (CIPFA) in November 2019, aims to ensure financial resilience and sustainability in local authorities. The assessment found that the council is well placed to meet the requirements of the FM Code, with 17 out of 19 standards rated as green and two as amber. Areas for continued development included embedding the Financial & Commercial Services redesign and improving data structures and reporting. The committee was recommended to endorse the assessment of compliance.

Internal Audit 2025/26 Progress Report

This report provided an update on the Internal Audit Service, including resources, completed audits, and planned activities. Since the previous report, eight audits had been concluded, with two receiving an overall Red conclusion, which would be reviewed by the Audit Working Group. The report detailed the progress of the 2025/26 Internal Audit Plan, including completed audits such as ContrOCC – IT Audit, HIAMS (Highways Infrastructure Asset System) – IT audit, and Absence Recording, which received Amber conclusions. Safeguarding Transport and School Attendance audits received Red conclusions. The report also covered grant certifications and performance indicators for the Internal Audit Service. The committee was recommended to note the progress and outcomes of completed audits.

Annual Governance Statement 2024/25 – Update on Actions

This report provided an update on the eight specific areas of focus identified in the 2024/25 Annual Governance Statement (AGS) for action in 2025/26. Updates were provided on Schemes of Delegation, Review of Members' and Officers' fiduciary responsibilities, and Contract Management, where the redesign of the Commercial & Procurement Service was nearing completion. Executive Officer Decisions and Code of Practice on Good Governance for Local Authority Statutory Officers were progressing as planned, with a self-assessment scheduled for February 2026. The Appointment of Independent Member of the Audit & Governance Committee and To commission an Independent Remuneration Panel were noted as completed. Inspections Review: Readiness and Sharing Learning was also ongoing, with findings to be collated by March 2026. The committee was recommended to receive this update and make any comments.

Report of the Audit Working Group (10 December 2025)

The Audit Working Group (AWG) met to receive updates on the implementation of management actions arising from two audits: Strategic Contract Management 2024/25 and Income Collection Street Works & Parking 2024/25. For Strategic Contract Management, the AWG was informed that the Commercial Transformation Programme, including a dedicated Contract & Supplier Management team, would address the audit findings. For Income Collection Street Works & Parking, improvements had been introduced, including a formal financial governance structure and detailed process maps, with remaining actions on track for completion by March 2026. The committee was recommended to note the report.

Audit & Governance Committee Work Programme

The committee reviewed its work programme for 2026, with scheduled topics including risk management training, counter-fraud updates, treasury management performance reports, accounting policies, and updates on the Constitution Working Group. Future meetings were planned for March, May, July, September, and November 2026, with a range of audit and governance-related items scheduled for discussion.