The Audit and Governance Committee of North West Leicestershire Council met on Wednesday 10 June 2026 to review the council's financial health, governance, and audit processes. Key discussions included the 2025/26 Annual Audit Plan from external auditors Azets, the Senior Information Risk Officer's annual report, and updates on the Unit 4 financial system. The committee also approved the draft Annual Governance Statement for 2025/26 and noted the Treasury Management Stewardship Report for the same period.

Annual Audit Plan 2025/26

The committee received an update on the 2025/26 Annual Audit Plan from Azets, the council's external auditors. Anna Crouch, Head of Finance, assured the committee that the council would meet the statutory deadline of 30 June 2026 for producing its accounts for audit. She also confirmed that capacity within the finance team was being reviewed with the aim of increasing it, potentially with an additional staff member, to support the work on building back assurance ¹. The Director of Public Sector External Audit from Azets explained that their work was focused on completing the audit of the 2025-26 financial statements to avoid repeating build-back assurance ² work in the following year. A detailed, phased plan would be developed and presented to the committee.

Senior Information Risk Officer (SIRO) Annual Report

The SIRO's annual report for 2025/26 was presented by Rochelle Tapping, Interim Head of Legal and Support Services and Monitoring Officer. The report highlighted an increase in Environmental Information Regulations (EIR) and Subject Access Requests (SARs), which was attributed to greater public awareness of data protection rights and increased interest in local planning and development activity. While the council largely met its statutory response times for information requests, a member raised concerns about the capacity of the legal team to handle the increasing volume. The Legal Team Leader – Governance agreed to provide a response outside the meeting regarding the sufficiency of resources. The report noted that three data breaches met the threshold for notification to the Information Commissioner's Office (ICO), and two of these cases had been closed by the ICO. The council is implementing measures to reduce information security incidents, including updated mandatory online training and exploring the use of Microsoft Purview tools.

Member Code of Conduct Annual Report

The Legal Team Leader – Governance presented the Member Code of Conduct Annual Report for 2025/26. The report detailed complaints made to the Monitoring Officer under the Code of Conduct. Members raised concerns about delays in complaint investigations and cancelled determination sub-committees. The Monitoring Officer assured the committee that an update would be provided at the next meeting and explained that delegated authority could be used to avoid hearings where appropriate, a point that some members suggested should be considered by the Constitution working group. The Monitoring Officer also agreed to provide more detailed data on complaints. The committee resolved to recommend the report's submission to the full council.

Treasury Management Stewardship Report 2025/26

Anna Crouch, Head of Finance, presented the draft Treasury Management Stewardship Report for 2025/26. A brief discussion followed, with a member noting improved investment allocations but questioning if the shift could be faster. Ms Crouch explained that the figures were a year-end snapshot and that funds were actively managed with diversification maintained. Concerns about inflation and global volatility were addressed by explaining that investments were monitored daily, adjusted as needed, and supported by quarterly meetings and ongoing advice from Arlingclose, the council's treasury advisor. The report was noted by the committee.

Key Judgements and Estimates in the Statement of Accounts

The Head of Finance presented the report on key judgements and estimates for the 2025/26 Statement of Accounts. The report noted that for 2025/26, there were no critical accounting judgements that had a significant effect on the financial statements. The main sources of estimation uncertainty identified were Property, Plant and Equipment valuations, the Pensions Liability, and Business Rates Appeals. The report was noted by the committee.

Draft Annual Governance Statement 2025-26

The committee reviewed the draft Annual Governance Statement (AGS) for 2025-26, presented by the Head of Finance. Members found the draft improved compared to previous statements. The committee was assured that the report was in draft and would be finalised for approval in January 2027. Minor amendments were agreed, with authority delegated to the Acting Section 151 Officer and the Chair to make further changes before publication. The committee resolved to approve the draft AGS for publication, subject to these amendments.

Unit 4 Update

The Head of Finance provided an update on the Unit 4 financial system. It was acknowledged that the implementation had faced challenges, including system bugs, integration issues, and delays to reconciliations and reporting. However, significant progress had been made in the past six months with the engagement of Vision ERP as a support provider. Improvements included a duplicate payments report, automated requisition approvals, and enhanced functionality for housing works orders and rent debits. The bank reconciliation for 2025-26 was up to date, and work had commenced on automating the process. The committee was assured that officer governance was in place with weekly meetings to ensure diligence. A member commended the finance team on the progress made.

Audit and Governance Committee Annual Report

The Audit Manager presented the draft Annual Report for the Audit and Governance Committee for 2025/26. A member expressed concerns that the report lacked evaluative assessment and evidence, and that changes were needed but time was limited before it was due to be presented to the full council. The Monitoring Officer advised against significant changes due to the timeframe, stating the report followed the criteria set out in the CIPFA Position Statement. The Chair and Audit Manager defended the report, stating it reflected the committee's work, challenge, and achievements. Following a discussion about the potential deferral of the report, the Head of Finance highlighted its importance for the Annual Governance Statement. Ultimately, the committee resolved to note the report, delegate authority for minor amendments to the Audit Manager in consultation with the deputy chair, and approve the draft report.