The Audit and Governance Committee of North West Leicestershire Council was scheduled to convene on Wednesday, 05 August 2026, to review a range of financial and governance matters. Key discussions were expected to focus on the external auditor's report on building back assurance, the draft statement of accounts for 2025/26, and an update on treasury management activities for the first quarter of the financial year. The committee was also set to consider reports on standards and ethics, amendments to the Council's constitution, and the progress of internal audits.

External Audit: Building Back Assurance

The committee was scheduled to receive a report from the external auditors, Azets, concerning the Building Back Assurance programme. This initiative is designed to systematically rebuild audit assurance over the Council's financial statements, following several years where disclaimer audit opinions were issued. The report was expected to provide an overview of the work being undertaken to restore confidence in the Council's financial reporting, with the aim of returning to a position where a full audit opinion can be issued. The report noted that nationally, statutory backstop dates have been introduced to address the local government audit backlog, with a deadline of 31 January 2027 for the 2025/26 financial year.

Draft Statement of Accounts 2025/26

A report from the Head of Finance was scheduled to update the committee on the draft statement of accounts for the financial year ending 31 March 2026. This statement provides a comprehensive summary of the Council's financial performance and position. It is prepared in accordance with the Code of Practice on Local Authority Accounting and the Accounts and Audit Regulations 2015. The draft accounts, which have not yet undergone external audit, were presented to the committee as a pre-audit version and were subject to review and potential amendment by the auditors, Azets LLP. The report also outlined the statutory period for the exercise of public rights, during which local government electors can inspect the accounting records and raise objections. This period was scheduled to run from 1 July 2026 to 11 August 2026.

Treasury Management Update Report (Q1)

The committee was due to receive a quarterly update on the Council's treasury management activities for the first quarter of the 2026/27 financial year, from April to June 2026. The report, presented by the Head of Finance, was expected to detail the Council's borrowing and investment activities, adhering to the CIPFA Treasury Management Code of Practice. A prudent approach was highlighted, with priority given to the security and liquidity of investments over yield. The report was also set to include an analysis of the Council's treasury management position, including borrowing and investment balances, weighted average rates, and maturity profiles. Furthermore, it was to address compliance with the Council's authorised limit and operational boundary for external debt, as well as investment limits. The report was also scheduled to present the Council's treasury management prudential indicators, covering security, liquidity, interest rate exposures, and the maturity structure of borrowing.

Standards and Ethics Quarterly Report (Q1)

A report from the Legal Team Leader – Governance was scheduled to provide the committee with an update on standards and ethics matters for the first quarter of 2026/27. This report typically includes figures relating to local determination of complaints against councillors and ethical indicators. The aim is to track the number of complaints received, how they are handled, and to identify any breaches of the Councillor Code of Conduct. This information is intended to help the committee determine if further targeted training is needed for councillors. The report also covers quarterly data for ethical indicators, such as concerns raised regarding modern slavery, whistleblowing incidents, and the use of RIPA powers.

Amendments to the Constitution

The committee was scheduled to consider proposed amendments to the Council's Constitution. These changes are necessitated by the forthcoming implementation of the Town and Country Planning (Discharge of Local Planning Authority Functions) (England) Regulations 2026, which are due to come into force on 31 October 2026. The report, presented by the Legal Team Leader – Governance, was expected to outline the required modifications to reflect the new regulations, which aim to increase the number of planning applications determined by officers and reduce those referred to Planning Committees. Specific areas for review included call-in arrangements, committee referral criteria, the process for determining council, member, and officer applications, and officer delegation. Due to the timing of the regulations, the report indicated that further guidance might be issued, and therefore, the committee was asked to delegate authority to the Monitoring Officer, in consultation with the Planning Portfolio Holder, to finalise the necessary amendments before their recommended adoption by Council.

Internal Audit Progress Report (Q1)

The Audit Manager was scheduled to present the Internal Audit Progress Report for the first quarter of 2026/27, covering the period from 1 April to 30 June 2026. This report provides an update on the progress made against the approved Internal Audit Plan for the year. It highlights audits in progress, outstanding audits from the previous year, and any significant control failings or weaknesses identified. The report was also expected to include details of internal audit performance indicators and the status of implementation of agreed audit recommendations.

Corporate Risk Update

The committee was scheduled to receive an update on the Council's Corporate Risk Register. This report, presented by the Audit Manager, provides the latest version of the register, which had been reviewed by officers of the Corporate Risk Group in June 2026. The update was expected to highlight any changes to existing risks, particularly concerning the Local Plan mitigation actions (CR20), and to provide an overview of the current risk status, categorised as red, amber, or green. The report was intended to allow the committee to review and note the risk update and provide feedback for consideration by the Corporate Risk Group.

Internal Audit Annual Conclusion

A report from the Audit Manager on the Internal Audit Annual Conclusion was also listed on the agenda, although the specific details were marked as To Follow . This report would typically provide an overall conclusion on the effectiveness of the Council's internal control environment based on the work undertaken by the internal audit function throughout the year.