The Audit and Governance Committee of Surrey Council met on Wednesday 15 July 2026 to review the draft statement of accounts for 2025/26 and the draft annual governance statement for the same period. The committee noted the progress on the implementation of actions from previous meetings and reviewed the work plan.

Draft Statement of Accounts 2025/26

The committee received the unaudited draft statement of accounts for the financial year 2025/26. These accounts were published on 30 June 2026, in line with statutory deadlines, and have been prepared in accordance with the CIPFA Code of Practice on Local Authority Accounting. The external audit, conducted by EY, has commenced. The committee was informed that the accounts, along with an audit findings report, would be presented at a future meeting. There was a discussion regarding the timing of the audit findings report, with a preference expressed for a more complete report in November rather than a preliminary draft in September, due to audit timelines and staff leave. The committee was asked to note the draft accounts and await the full audit findings.

2025/26 Draft Annual Governance Statement

The committee reviewed the draft Annual Governance Statement for 2025/26, which summarises the council's governance arrangements for the financial year ending 31 March 2026. The statement covers key areas including devolution and local government reorganisation, financial management, workforce and culture, and the new speaking up service. It also addresses ongoing optimisation related to My Surrey and company governance. While some members noted that the report appeared brief compared to previous years, officers assured the committee that a rigorous review process had been undertaken, with input from executive directors. The statement includes commentary on service-specific governance, finance management, and considerations for adult and children's services. The Farnham Infrastructure Programme was highlighted as a new addition. The committee reviewed the contents of the draft statement to ensure governance arrangements were correctly represented and it was recommended for publication with the council's statement of accounts.

Recommendations Tracker and Work Plan

The committee considered the recommendations tracker and work plan. An action item (A326) concerning DOLS¹ partial insurance audit results was marked as complete. New items have been added to the work plan for the September meeting, including reports on Deprivation of Liberty Safeguards (DOLS)² and the appointment of external auditors for the new combined fire and rescue authority and single-purpose pension authority. The committee was asked to monitor progress on implementing recommendations from previous meetings and to note the work plan and any changes to it. The committee also discussed the future work programme, with plans to populate the fraud plan up to March 2027 and provide a new version of the work plan to all committee members in August.