The Constitution and Governance Committee of Cornwall Council met on Tuesday 1 September 2026 to review and discuss updated Terms of Reference for the Audit Committee and to establish a new Protocol for Member-Member Working Relationships. The committee also discussed and recommended changes to the scrutiny of the budget process.

Review of Audit Committee's Terms of Reference

The committee reviewed the revised Terms of Reference for the Audit Committee, which aim to align with the Global Internal Audit Standards, refine internal audit reporting terminology, and increase the focus on ethical standards. Key changes include a more detailed approach to ethical governance, ensuring it does not overlap with the Standards Committee or the Monitoring Officer's functions. Members were assured that training and support would be provided to Audit Committee members to help them manage their enhanced responsibilities, with ongoing development and informal briefing sessions planned. The revised terms formalise and clarify existing practices regarding ethical conduct, which are already embedded in the Council's governance framework and defined by the Members' and Employees' Codes of Conduct. The council was noted to be proactive in implementing the new standards, keeping pace with other local authorities. While no formal matrix exists to distinguish responsibilities between Internal Audit, Corporate Finance, and Overview and Scrutiny functions, officers explained the distinct roles and confirmed that Scrutiny Committees retain ownership of their work programmes. The committee was reassured that the Audit Committee would undertake due diligence on the new arrangements.

It was recommended to the Council that the Audit Committee's Terms of Reference be approved and that the Responsibility for Functions document be updated accordingly.

Scrutiny of the Budget

The committee discussed proposals for the future scrutiny of the council's budget, aiming to provide greater clarity on the roles of the Budget Development Overview and Scrutiny Committee (BDOSC) and the Corporate Finance and Performance Overview and Scrutiny Committee (CFPOSC). The revised arrangements include increasing the ordinary meetings of the BDOSC from two to three per year. These will include two meetings to scrutinise budget proposals before Cabinet consideration (one in November and one in February) and an additional meeting after the publication of the Medium-Term Financial Plan (MTFP) to inform Cabinet's budget proposals. The BDOSC will also have a work programme, confirmed annually, to guide its scrutiny activities.

The report detailed plans to support member engagement in the budget process, including all-member briefings, joint training sessions for BDOSC and CFPOSC, and a Scrutiny Café for informal discussions. Members noted that the revised proposals represented a significant improvement, enhancing visibility, transparency, and accountability. The relationship between committee chairs, vice-chairs, and officers was highlighted as fundamental to the practical operation of these committees. While many BDOSC members also serve on other scrutiny committees, a mechanism to ensure relevant issues are not overlooked was suggested. For significant financial issues, the CFPOSC would be the first point of contact, with the potential to escalate concerns to the BDOSC, possibly leading to an extraordinary meeting. Officers reiterated that the review of Terms of Reference aimed to minimise duplication and provide clarity. The membership of the BDOSC will comprise the Chairs and Vice-Chairs of the five thematic Scrutiny Committees, plus nine other members, creating a 19-member committee. The complexity of the council's budget was acknowledged, with ongoing discussions about providing all-member briefings and the introduction of a Scrutiny Café to foster wider engagement and understanding.

It was recommended to the Council that:

• Responsibility for Functions within the Constitution be updated to confirm the respective budgetary responsibilities of the BDOSC and CFPOSC.
• The Overview and Scrutiny Procedure Rules be updated to confirm three ordinary meetings per year for the BDOSC and that it have a set work programme.
• Authority be delegated to the Monitoring Officer to update the Constitution to reflect the Council's decision.

Protocol for Member-Member Working Relationships

The committee considered a new Protocol for Member-Member Working Relationships, intended to sit alongside the statutory Code of Conduct for Members. The protocol aims to promote constructive working relationships, mutual respect, effective democratic decision-making, and good governance. Consultation had taken place with Group and Deputy Group Leaders, and the Chair of the Standards Committee was supportive.

There was broad support for the protocol's intent to promote working relationships and facilitate the early resolution of concerns. Members were advised that the protocol guides members on how to conduct their role, encouraging them to raise issues directly with the member concerned in the first instance. Where informal resolution is not possible, members are encouraged to escalate issues through their respective Group Leaders. The protocol is not intended to replace the formal Code of Conduct process but to support informal resolution. Suggestions for revisions included including a link to the Code of Conduct and the Nolan Principles, clarifying expectations around responding to emails, and amending wording related to social media. Discussions also addressed the role of the Local Member, with a consensus that there should be no expectation for a member to take on another member's casework, particularly outside of their division, and the importance of GDPR compliance when sharing resident details. The Chair of the Standards Committee welcomed the protocol as a supporting document that could help reduce member-member complaints under the Code of Conduct.

It was resolved that the Member-Member Working Relationships Protocol be approved, subject to the comments made during the meeting being incorporated. Authority was delegated to the Monitoring Officer, following consultation with the Chair and Vice-Chair of the Committee, to produce a final version of the Protocol for circulation to the Committee for comment before wider distribution.