The Audit and Governance Committee of Surrey County Council met on Wednesday, 16 September 2026, to review the council's annual complaints performance, risk management, and workforce governance. Key decisions included noting the annual complaints report, endorsing the approach to external auditor appointments for new authorities, and approving an updated Internal Audit Charter.

Annual Complaints Performance Report 2025-26

The committee received an overview of Surrey County Council's complaints performance for the 2025-26 financial year. David Lewis, Cabinet Member for Finance and Resources, presented the report, highlighting an increase in complaint volumes, particularly in Children's Social Care, Adults Social Care, and Place services. Despite this rise, the escalation rate from Stage 1 to Stage 2 complaints remained stable at 21%, indicating that the increase in complaints was proportionate to overall demand. The report noted improvements in the Local Government and Social Care Ombudsman (LGSCO) position, with fewer complaints progressing to formal investigation and a reduction in upheld findings. Financial redress payments totalled £609,000, with over 75% issued by the Council before LGSCO involvement. The committee acknowledged the report and noted the ongoing efforts to improve the complaints handling process.

Risk Management

David Mody, Head of Strategic Risk, presented an update on risk management activities, focusing on preparations for the upcoming local government reorganisation and the establishment of new unitary authorities. The report detailed four principal areas of work: maintaining business as usual risk management, engaging with risk colleagues from other Surrey councils, disaggregating Surrey County Council's risks for the new organisations, and providing support to the Local Government Reorganisation Programme Management Office. The committee noted the update on risk management, acknowledging the significant focus on transition activities as Surrey County Council prepares for its dissolution.

Annual Workforce Governance Report 2025–26

Shella-Marie Smith, Director of People & Change, presented the Annual Workforce Governance Report, which covered whistleblowing, gifts and hospitality, and declarations of interest. The report indicated a decline in whistleblowing allegations, with an increase in Speaking Up cases and grievances, suggesting improved understanding of appropriate reporting routes. Declarations of interest saw an increase in submissions, with the MySurrey system facilitating secure logging and oversight. The committee noted the report, endorsed the levels of assurance provided, and supported the strategic actions identified for 2026/27.

Approach to External Auditor Appointment

Rachel Wigley, Director of Finance and Deputy Section 151 Officer, outlined the approach to appointing an external auditor for the new Combined Fire and Rescue Authority (CFRA) and Single Purpose Pension Authority (SPPA). The recommendation was to opt into the Public Sector Audit Appointments (PSAA) national auditor appointment framework for the period 2027/28 to 2029/30. This approach was favoured for its consistency, administrative ease, and cost-effectiveness, aligning with the practice of approximately 98% of eligible public bodies. The committee supported the recommendation to opt into the PSAA framework and delegated authority to the Director of Finance to manage the preparatory work.

Progress Report on External Audit of Surrey County Council's Statement of Accounts 2025/26

Nicola O'Connor, Assistant Director of Finance (Corporate), introduced Liz Jackson from Ernst & Young (EY), the council's external auditors. Liz Jackson provided a verbal update, confirming that the audit was progressing broadly in line with expectations. She reported no findings to date that would impact the audit opinion, indicating an unqualified opinion was expected. Weaknesses in arrangements for value for money were also not identified. While there were minor delays in areas such as debtors and creditors, and a few reclassification misstatements, none were deemed significant enough to affect the audit report or the overall financial position. The committee noted the progress of the external audit.

Deprivation of Liberty Safeguards (DoLS) Partial Assurance Audit Report

Claire Edgar, Executive Director for Adults Wellbeing and Health Partnerships, and Liz Ulias, Director for Lifelong Services, provided a verbal report on the Partial Assurance Deprivation of Liberty Safeguards (DoLS) audit. They highlighted a recent Supreme Court judgment that changed the legal approach to determining deprivation of liberty, requiring a multifactorial assessment rather than a single acid test. Since the initial audit, the council had implemented several measures to reduce waiting lists and improve timeliness, including increased staffing, enhanced training, and process reviews. The committee received the update, noting the positive news that the audit opinion had been raised from partial to reasonable assurance due to the service's actions.

Internal Audit Progress Report for Quarter 1, 2026–27

Russ Banks, Chief Internal Auditor, presented the Internal Audit Progress Report for Quarter 1. He highlighted that 19 assignments had been completed, with opinions ranging from substantial to minimal assurance. A notable finding was a minimal assurance opinion for the Cybersecurity in Maintained Schools audit, revealing a significant lack of awareness and compliance among schools. Other audits covered GDPR, IT asset disposal, and financial assessments. The committee noted the report and considered any further action required in response to the issues raised.

Internal Audit Charter: Updated

Russ Banks also presented the updated Internal Audit Charter for 2026/27. The revisions primarily reflected the disaggregation of the Orbis partnership and updated references to Surrey County Council's governance arrangements. The committee noted and approved the updated charter.

The next meeting of the Audit and Governance Committee was scheduled for 18 November 2026.