The Governance Committee of the Isles of Scilly Council met on Wednesday 10 June 2026 to consider the draft Annual Governance Statement for 2025-26 and the Internal Audit Progress Report for the same period, along with the proposed audit plan for the following year.

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 policies 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 outlined the Council's Code of Governance, which is structured around seven core principles: behaving with integrity and respecting the rule of law; ensuring openness and stakeholder engagement; defining outcomes in terms of sustainable benefits; determining necessary interventions; developing the Council's capacity; managing risks and performance; and implementing good practices in transparency, reporting, and audit. The statement also detailed significant governance issues identified or ongoing during the year, including the need for reviewing and updating policies and procedures, which was also noted as an improvement recommendation in the Council's External Audit Report. The committee was asked to recommend the draft AGS for approval as a draft to enable public inspection, before its final approval as part of the Council's Statement of Accounts.

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

The committee was also scheduled to review 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 Chief Internal Auditor's annual opinion provided reasonable assurance over the adequacy and effectiveness of the Council's arrangements in respect of internal control. This opinion was based on work performed during the year, including reviews of the Cultural Centre and Museum Project, Cyber Security, Risk Management, and Budget Management. The report highlighted a Limited assurance opinion for Budget Management, citing weaknesses in oversight and accountability for budget management across Adult and Children's services due to the absence of permanent senior management. The proposed Internal Audit Plan for 2026/27 included reviews of the Cultural Centre, Financial Control (Debt Management), Cyber Security, Health and Care Integrated Project, Sickness and Absence, and Risk Management. The report also noted an external audit improvement recommendation regarding the oversight of internal audit actions, which was to be implemented during 2026/27.