The Audit, Governance and Standards Committee of Kingston upon Thames Council met on Wednesday 24 June 2026 to review the Annual Internal Audit Report, the Member Code of Conduct Complaints Annual Report, and the Treasury Management Annual Report for 2025/26. The committee noted the findings of these reports, which provided assurance on the council's governance, risk management, and financial activities.

Annual Internal Audit Report

The committee received the Annual Internal Audit Report, which summarised the work undertaken during the 2025/26 audit plan and presented the Chief Audit Executive's annual opinion. Andy Hamilton, Chief Audit Executive, stated that the council has reasonable risk management, internal control, and governance arrangements in place. The audit team completed 92% of the audit plan, exceeding their target. While most financial and financial assistance audits received positive assurance, one report on Cash and Bank received a limited assurance opinion due to identified weaknesses in segregation of duties and system access controls. These recommendations have since been implemented.

Councillor Peter Higgins, Chair of the committee, questioned the distinction between reasonable and substantial assurance, with Mr. Hamilton explaining that reasonable is the highest level of assurance he can provide for the council as a whole due to resource limitations and the scope of work. Councillor George raised concerns about other areas also receiving limited assurance, such as how involved people, voice and all sorts of stuff, but Mr. Hamilton clarified that these were individual issues and not indicative of systemic problems across the council. The committee noted the report and the Chief Audit Executive's annual opinion.

Member Code of Conduct Complaints Annual Report

Victoria Sathan, Director of Governance and Law and Monitoring Officer, presented the annual report on complaints made under the Members' Code of Conduct for 2025-26. The report detailed 29 complaints received during the year, an increase from the previous year, with 12 of these originating from the same individual. Ms. Sathan noted an increase in complaints generated by Artificial Intelligence (AI), which can make it more difficult to ascertain the core of the complaint. Of the 29 complaints, 28 were rejected at the preliminary stage or resolved informally. One complaint proceeded to a hearing of the Standards Subcommittee.

The committee discussed the correlation between election seasons and an increase in complaints, with Ms. Sathan confirming a cyclical pattern often seen in member-member complaints, particularly around campaigning. The committee also discussed the fitness for purpose of the current Code of Conduct, with Ms. Sathan confirming it follows the model LGA Code of Conduct and is not being amended until the national code is updated. The committee noted the report for information.

Treasury Management Annual Report 2025/26

Katherine Gray, Head of Pensions, Investments and Treasury, presented the Treasury Management Annual Report for 2025/26. The report highlighted a volatile market environment influenced by events such as Liberation Day tariffs and the conflict in the Middle East. The council's borrowing strategy focused on minimising additional borrowing by utilising cash reserves, and where borrowing was necessary, it was short-term. The total borrowing for the council was £379 million, which was £154 million lower than the capital financing requirement.

On the investment side, the council achieved a 4.18% return, exceeding the Sonia benchmark of 4.01%. The report also noted a change in treasury advisors, with ArlingClose appointed from 1 April 2026, following the contract expiry with MUFG (formerly Link Group). Councillor Tugliani inquired about the transition to the new advisor and the creditworthiness assessment systems, which Ms. Gray confirmed were similar. Councillor George asked about the use of reserves to pay off debt, and Ms. Gray explained that while reserves are used to reduce borrowing, this does not drive the council's medium-term financial plan. The committee noted the report and the council's performance within the Prudential Indicator limits.