The Shareholder Cabinet Sub-Committee of West Northamptonshire Council was scheduled to meet on Thursday 14 May 2026. The primary focus of the meeting was to review the final report from Internal Audit concerning the governance of council-owned companies during the 2025/26 period. The committee was also scheduled to consider the minutes of its previous meeting.

Governance of Council-Owned Companies 2025/26 - Final Report of Internal Audit

The meeting was scheduled to discuss the final report from Internal Audit on the governance of council-owned companies for the 2025/26 financial year. This report, issued on 26 March 2026, followed a request from the Shareholder Cabinet Sub-Committee in December 2024 for a governance health-check of four companies in which the Council has a significant interest or control: West Northamptonshire Norse, The Daventry Estate Company Limited, Opus People Solutions (East) Limited, and Northamptonshire Children's Trust.

The report aimed to assess whether these companies' objectives align with the Council's strategic goals, if adequate governance frameworks are in place, if boards possess the necessary skills and independence, and if the Council maintains appropriate oversight.

Key recommendations from the Internal Audit report included:

• Performance Measures: Establishing Key Performance Indicators (KPIs) for The Daventry Estate Company Limited (TDECL) that are clearly aligned with the Council's strategic objectives.
• Board Structure and Composition: Addressing the two vacant director positions within TDECL to ensure adequate independent oversight and strategic challenge.
• Board Evaluation: Implementing a formal board evaluation policy for Opus People Solutions (East) Limited, TDECL, and West Northamptonshire Norse, with regular assessments of board members' skills.
• Board Training: Ensuring appropriate ongoing professional training for board members of Opus People Solutions (East) Limited and West Northamptonshire Norse, with proper documentation of all training activities.
• Reporting to the Shareholder Cabinet Sub-Committee: Requiring each council-owned company to present an annual report detailing its activities and how it is meeting its objectives. This is intended to enhance oversight and shareholder input.
• Performance Management of Company Staff: Implementing a structured, annual performance evaluation process for senior company staff, including board and committee members, chairs, and directors, for Opus People Solutions (East) Limited, TDECL, and West Northamptonshire Norse.
• Documented Policies and Procedures: Establishing formal policies for financial management, procurement, and fraud prevention for TDECL, aligned with West Northamptonshire Council's policies and approved by the board.
• Additional Company Identification: Conducting further investigation to identify any other companies over which the Council has or should have control.

The report noted that while governance structures are generally well-established, some gaps and weaknesses were identified. The Management Action Plan within the report details agreed actions and their priority, with a target for essential actions to be completed within three months.

The report also highlighted that Northamptonshire Children's Trust was not included in the detailed review as it was subject to separate processes, and it was recommended that the Sub-Committee not require an annual report from them due to existing adequate measures.

The Shareholder Cabinet Sub-Committee was asked to receive the Internal Audit report, note its conclusions and recommendations, and request annual reports from West Northamptonshire Norse, The Daventry Estate Company Limited, and Opus People Solutions (East) Limited. It was also recommended that the Sub-Committee instruct the Monitoring Officer to provide an update on progress against the Management Action Plan recommendations at its next meeting. The Sub-Committee was also asked to decide whether it required detailed information regarding the dissolution of any council-owned companies in the future.