The Audit and Governance Committee of Sutton Council met on Thursday 09 July 2026 to review the council's governance, risk management, and audit arrangements. The meeting's agenda included the annual reports for the committee and the council's governance statement, alongside updates on HR, treasury management, and fraud work. The committee also considered the internal and external audit plans for the upcoming year.

Code of Conduct Hearing Sub Committee Arrangements

The committee was scheduled to discuss arrangements for the Code of Conduct Hearing Sub Committee. The report outlined the procedure for dealing with complaints against councillors, including the establishment of a hearing panel. A recommendation was made to establish this panel and waive proportionality rules to ensure practical membership.

Operation of the Code of Conduct

An update was scheduled on the operation of the Code of Conduct for councillors. This report provided information on how complaints are handled by the Monitoring Officer and included an update on a specific complaint relating to former Councillor Sheldon Vestey. The report noted that Mr Vestey had failed to comply with sanctions imposed by a previous hearing panel, and the committee was to be updated on actions taken.

Audit and Governance Committee: Annual Report for 2025/26

The committee was set to review its own Annual Report for the 2025/26 period. This report aimed to demonstrate the work undertaken by the committee over the past year in promoting good governance and fulfilling its terms of reference. The purpose of the report was to provide stakeholders with information on how the committee ensures assurance regarding internal control and governance arrangements, and how public funds are used effectively. A recommendation was made to approve the report for presentation to the October Council meeting.

Annual HR Update

An update on workforce and Health and Safety indicators for Sutton Council during the 2025/26 financial year was scheduled for discussion. The report was intended to provide an overview of key Human Resources and Organisational Development (HR&OD) activities, highlighting support and development provided to the workforce to enable them to deliver quality services and foster an inclusive working environment.

Annual Governance Statement 2025/26

The committee was to consider the Council's Annual Governance Statement (AGS) for 2025/26. This statement, required by regulation, provides an overview of the council's governance arrangements and assurance regarding their adequacy and effectiveness, contributing to the objective of an Efficient and Well Run Council . The draft AGS was to be signed by the Chief Executive and Leader of the Council for inclusion in the draft accounts.

Annual Review of Risk Management Strategy and Review of Corporate Risk Register

This item focused on the annual review of the Council's Risk Management Strategy and Guidance, and an overview of the Corporate Risk Register, updated for June 2026. The report aimed to set out the key risks facing the organisation and the actions required to mitigate them. Recommendations were to agree the Risk Management Strategy and Guidance and to note the updated Corporate Risk Register.

Treasury Management Annual Report 2025/26

The committee was scheduled to review the annual report on treasury management activities and the prudential and treasury indicators for the financial year ending 31 March 2026. This report summarises the Council's treasury management operations, covering borrowing and investment activities, and confirms compliance with the Chartered Institute of Public Finance and Accountancy's (CIPFA) Treasury Management Code of Practice and the Prudential Code. The report was presented for monitoring and review.

Internal Audit Plan, Charter and Strategy 2026/27

This agenda item concerned the approval of the Internal Audit Charter, Strategy, and Annual Audit Plan for 2026/27. The report outlined the framework, strategic direction, and work programme for the audit service, in accordance with the Global Internal Audit Standards in the UK Public Sector. The plan was developed using a risk-based approach, aligned with the Council's Corporate Risk Register and organisational priorities.

Internal Audit Annual Report 2025/26

The committee was to receive the Internal Audit Annual Report for 2025/26. This report included the Chief Audit Executive's overall opinion on the adequacy and effectiveness of the Council's governance, risk management, and internal control arrangements. The report also detailed the planned audit coverage for the year and provided an assessment of assurance opinions issued.

External Audit Plan 2025/26

This item involved the review of the draft audit plans for the 2025/26 Council and Group accounts, and the Pension Fund accounts, prepared by the Council's external auditors, KPMG. The plans outlined the auditors' risk assessment and planned audit approach. The committee was asked to approve the draft plans, delegating final approval to the Strategic Director of Resources.

2025/26 Annual Review of Fraud Work and 2026/27 Fraud Plan

The committee was scheduled to receive an update on the Council's counter-fraud and investigations work undertaken during 2025/26, alongside an indicative plan for fraud resource deployment in 2026/27. The report aimed to provide assurance over the arrangements for protecting the Council, its residents, and service users against fraud and corruption.

Provisional Work Plan

Finally, the committee was to review a provisional work plan, likely outlining future agenda items and meeting schedules.