The Audit and Governance Committee of Wiltshire Council met on Wednesday 1 July 2026 to discuss the council's financial statements, audit progress, and governance procedures. Key discussions included noting the progress made on the 2025/26 statement of accounts, receiving updates on external and internal audits, and reviewing updated policies on anti-fraud, bribery, corruption, tax evasion, and money laundering.

Progress on the 2025/26 Statement of Accounts

The committee received an update on the improvement plan for the preparation of the 2025/26 statement of accounts. Councillor Andrew Griffin, Portfolio Holder for Finance Transformation, noted that while the revenue outturn, capital financing journals, asset revaluations, and depreciation journals were completed on time, there were delays in receiving the Stone Circle group accounts and finalising the ledger for publication. These delays were attributed to the complexity of the work and the need for detailed review. Despite these, the draft statement of accounts was expected to be published by the statutory deadline of 30 June 2026. The committee noted the progress made but also acknowledged ongoing challenges with systems, compliance, and team capacity, looking forward to future updates on these areas. They also requested a further update on the £4.4 million of grant income that was not correctly accrued.

External Audit Reports

Beth Bowers, Public Sector Audit Director at Grant Thornton UK LLP, presented the external audit progress report. She confirmed that the audit plan for 2025/26 remained unchanged, with a focus on rebuilding assurance over the council's financial statements. Grant Thornton has assessed Wiltshire Council as Category D under the MHCLG capacity assessment framework, indicating significant operational difficulties in achieving an ISA-compliant approach by 2027/28 due to major systemic problems. The audit trajectory anticipates a qualified opinion in 2029/30 and an unmodified opinion in 2030/31, with a six-year plan to rebuild assurance. The build-back work programme will focus on reserves, property assets, and other liabilities over several years. The committee noted the report and the plan to regain assurance, acknowledging that this is a gradual process requiring sustained effort.

Internal Audit Progress Report

Jessica Croman, Assistant Director at SWAP, presented the internal audit progress report for the period of 1 April to 22 June 2026. The report indicated a generally sound system of governance, risk management, and internal control, with an ongoing Reasonable assurance opinion. Two significant organisational risks, ICT Network Boundary Defences and ICT Disaster Recovery, had been mitigated. However, one significant risk, Business Continuity Planning, remained, with a follow-up audit planned for September. Twelve engagements had been delivered, including advisory work on budget management, adult social care stability, duplicate payments, and Cifas. The committee noted the report and recorded a Reasonable level of assurance.

Governance Procedures Around Artificial Intelligence (AI)

Perry Holmes, Director of Legal and Governance, presented a report on the council's governance arrangements for Artificial Intelligence (AI). Wiltshire Council has adopted a controlled approach, blocking public generative AI tools and establishing a formal request route for approved AI services, supported by business justification and information governance checks. Measures include an AI-specific Data Protection Impact Assessment, integration into the Information Asset Change Request process, an AI register, and an AI and Data Steering Group. A draft Generative AI policy is being developed to ensure ethical and responsible use, with users remaining personally responsible for AI-generated content. The committee noted the established governance arrangements and the ongoing development work.

Policy Reviews and Updates

Sarah Higgins, Director of Finance and Procurement, presented updated policies on Anti-Fraud, Corruption and Bribery, Anti-Tax Evasion, and Anti-Money Laundering. These policies have been reviewed to ensure relevance, accuracy, and compliance with current legislation, including the Economic Crime and Corporate Transparency Act 2023. Minimal updates were required, with changes highlighted in red text. An illustrative form has been introduced to explain the Anti-Fraud, Bribery and Corruption policy, and the Anti-Money Laundering policy now includes a table of relevant legislation. The committee considered the updated policies.

Partnerships Annual Update

Laura Maxwell from the Executive Office presented the annual update on key partnerships. The Partnership Register has been updated, now listing 61 active partnerships, an increase from 51. The Annual Partnership Report provides visibility on the achievements and aims of each partnership, aligned with the priorities of Our Wiltshire Plan. The report highlighted progress in areas such as Families and Children's Transformation, the Wiltshire Youth Justice Service, and the Stonehenge & Avebury World Heritage Site Partnership. The committee considered the Partnership Register and the Annual Partnership Report.

Business Continuity, Governance and Oversight Annual Update

Camella Town, Emergency Planning, Resilience and Response Specialist, presented the annual update on business continuity. The council is working to improve its business continuity arrangements, moving from a Limited to a Reasonable assurance level, with the objective of achieving Substantial. Key actions include establishing a BC Framework aligned to ISO22301, developing a new BCP template, and implementing a secure repository for BCPs. A comprehensive Business Impact Analysis is planned for Autumn 2026. The committee noted the update and the progress made.

Information Governance Arrangements Annual Report

Perry Holmes, Director of Legal and Governance and Senior Information Risk Owner (SIRO), presented the annual report on Information Governance (IG). The SIRO is assured that appropriate arrangements are in place, but noted areas for further development, including records management maturity, resource resilience, and governance for emerging technologies like AI. The report highlighted an increase in demand for FOI/EIR and SAR requests, with continued compliance with statutory deadlines. Data incidents remain relatively high, attributed to the implementation of a Data Loss Prevention tool, indicating a mature reporting culture. The council has maintained compliance with ICO regulations, with no enforcement action taken. The committee noted the report.

Forward Work Programme

The committee noted the Forward Work Programme for 2026/27, which includes regular updates on statement of accounts, external and internal audits, Stone Circle governance, and policy reviews.

Date of Next Meeting

The next ordinary meeting of the committee was scheduled for 6 October 2026.