The Governance Committee of the Isles of Scilly Council met on Wednesday 10 June 2026 to discuss the draft Annual Governance Statement for 2025-26 and the Internal Audit Progress Report for 2025/26, along with the proposed plan for 2026/27. The meeting also included the election of a Chairman and Vice-Chairman for the ensuing year, and the consideration of draft minutes from the previous meeting.

Draft Annual Governance Statement 2025-26

The committee was scheduled to consider the draft Annual Governance Statement (AGS) for 2025-26. This statement is a requirement under the Accounts and Audit Regulations 2015 and aligns with the CIPFA/SOLACE Framework: Delivering Good Governance in Local Government. The AGS aims to ensure that resources are directed in accordance with agreed policy and priorities, that decision-making is sound and inclusive, and that there is clear accountability for the use of resources to achieve desired outcomes for service users and communities.

The report pack indicated that the AGS sets out the key elements of the Council's governance and internal control features, measuring compliance with the Council's Code of Governance and the Framework. A significant governance issue identified during 2024-25, Reviewing and Updating Policies and Procedures, was noted as requiring further action during 2026-27, which is also an improvement recommendation from the Council's External Audit Report. The committee was asked to recommend the draft AGS for approval to Full Council, enabling its publication for public inspection alongside the Council's Statement of Accounts.

Internal Audit Progress Report 2025/26 and Proposed Plan for 2026/27

The committee was scheduled to receive the Internal Audit Progress Report for 2025/26, which included the Annual Report, and to consider the proposed Internal Audit Plan for 2026/27. The report from Cornwall Council Internal Audit indicated that the agreed audit plan for 2025/26 had been delivered.

Key findings from the 2025/26 audits included:

• Budget Management: A review of budget management resulted in an opinion of Limited Assurance. The report highlighted weaknesses in oversight and accountability for budget management within Adult and Children's services due to the absence of permanent senior management. While new appointments were expected to stabilise management, they were considered too late in the financial year to address adverse expenditure variances.
• Cultural Centre and Museum Project: An opinion of Reasonable Assurance was given regarding governance and oversight of funding, project management, and the future operating model. However, the report noted ongoing risks and challenges related to budget and delivery timelines.
• Cyber Security: An audit of cyber security resulted in a Reasonable Assurance opinion. It was proposed that cyber security remain an item for annual audit review due to inherent risks.
• Risk Management: A review of risk management arrangements also received a Reasonable Assurance opinion, reflecting recent improvements. However, actions were agreed to enhance the integration of service-level risk management and to deliver risk management training for members and officers.

The proposed Internal Audit Plan for 2026/27 includes reviews of the Cultural Centre, Financial Control (Debt Management), Cyber Security, the Health and Care Integrated Project, Sickness and Absence, and Risk Management. The plan also includes provision for following up on agreed management actions. The report noted that an external audit improvement recommendation regarding the inclusion of summaries of outstanding internal audit recommendations in progress reports would be implemented during 2026/27.

Other Scheduled Business

The meeting was also scheduled to include the election of a Chairman and Vice-Chairman for the ensuing year, and the consideration of the draft minutes from the previous Governance Committee meeting held on 15 January 2026. Declarations of interest were also to be noted.