The Audit and Governance Committee of Tewkesbury Borough Council met on Wednesday, 23 September 2026. The meeting focused on the approval of the Statement of Accounts for 2025/26, the external auditor's findings and annual report, and updates on the council's governance and risk management.

Statement of Accounts 2025/26

The committee approved the Statement of Accounts for the financial year ending 31 March 2026. The Associate Director: Finance presented the accounts, highlighting that while the overall net worth of the council had decreased from £76 million to £72 million, the financial statements were produced on time and with a smooth audit process, thanks to the finance team's efforts. The external auditors, Bishop Fleming, confirmed that the audit was substantially complete and they anticipated issuing an unqualified audit report.

Key discussions during the review of the Statement of Accounts included:

• Investment Properties: Councillor David Gray, Chair of the Audit and Governance Committee, questioned the significant decrease in the carrying value of investment properties, noting a large net loss from fair value adjustments despite an increase in net income from these properties. The officer explained that the income shown is rental income, and the fair value adjustment reflects potential capital losses if the properties were to be sold, due to likely capital expenditure and incentives needed for new tenants. The valuation was conducted by Wilkeshead and Eve, and the council will be moving to a five-year rolling basis for valuations due to new accounting regulations.
• Other Comprehensive Income and Expenditure: Councillor Gray also inquired about the movement on this line item, which was explained as being primarily related to pensions, a volatile area. Note 34 of the accounts provides further detail on the pension fund.
• Audit Findings: Alex Walling from Bishop Fleming provided an overview of the audit findings, noting that while there were some minor findings, the overall report was positive. He also confirmed that, to his knowledge, there had never been any objections to the accounts from electors or residents, which he attributed to the quality and transparency of the accounts and the council's responsiveness to queries. Cameron Penwill from Bishop Fleming detailed the audit completion report, noting that the audit was substantially complete with one outstanding area concerning assurances from the Gloucestershire Pension Fund auditor. He confirmed that an unqualified audit report was anticipated.

External Auditor's Audit Findings and Annual Report

Alex Walling and Cameron Penwill from Bishop Fleming presented their findings. Walling described the audit report as very good, with few substantive findings. He commended the council for producing its unaudited accounts well in advance of the deadline, noting that Tewkesbury Borough Council was the earliest among the ten local authority audits he conducts.

Cameron Penwill elaborated on the audit completion report, highlighting that the audit was substantially complete, with the exception of assurances needed from the Gloucestershire Pension Fund auditor regarding the valuation of the pension fund liability. He confirmed that an unqualified audit report was anticipated, which is particularly positive given the current challenges in the local government sector.

Alex Walling then presented the draft Auditor's Annual Report, which focuses on value for money work. He explained that the report covers financial sustainability, governance, and improving economy, efficiency, and effectiveness. While the council received amber ratings in all three areas, Walling clarified that this is not necessarily a negative, as amber indicates areas where improvement recommendations have been made. He noted that many of these recommendations had been raised in previous years and were still outstanding, suggesting areas that might require more focus. He also mentioned that the report, written before the recent announcement pausing Local Government Reorganisation (LGR), would be updated to reflect the current situation.

Annual Governance Statement 2024/25 Update and 2025/26 Approval

The committee received an update on the implementation of significant governance issues identified in the 2024/25 Annual Governance Statement. The Director: Corporate Resources, Graeme Simpson, provided details on progress, noting that the Equality, Diversity and Inclusion policy was complete, and Fraud Risk Registers were fundamentally complete. However, the S106 Improvement Plan and Building Control Governance remained outstanding, with revised target dates. Councillor David Gray expressed concern about the slow progress on S106, and it was agreed that the Director of Growth would be invited to the next meeting to provide further detail. The committee also noted the ongoing work on Artificial Intelligence (AI) awareness and training.

The committee then moved to approve the Annual Governance Statement 2025/26. Graeme Simpson presented the statement, highlighting new significant governance issues including Yubico client monitoring and procurement contract register implementation. The committee approved the statement.

Corporate Risk Register

The Head of Service: Audit and Governance, Graeme Simpson, presented the updated Corporate Risk Register. He explained that the register had been reviewed and refreshed to reflect the current risk landscape, with a focus on sharpening descriptions, scores, and mitigating controls. New risks related to recruitment and retention, and procurement compliance, had been added. The Risk Management Strategy was also updated to align with best practice. Councillor Stewart Dove sought assurance that the council's risk scoring methodology was standard, which was confirmed by the Chief Audit Executive.

Internal Audit Monitoring Report and Six-Month Plan

Alice, from Internal Audit, presented the monitoring report, detailing the work undertaken and the assurance given on internal controls. Five audits were reported, with the majority receiving substantial or reasonable assurance. The IT Asset Inventory audit received a limited assurance opinion, with five recommendations made. The report also covered the Rural England Prosperity Fund, Planning Fees, and Procurement Cards audits, all of which received positive feedback with minimal recommendations for improvement. The committee also approved the Internal Audit Six-Month Plan for October 2026 to March 2027, which is a risk-based plan developed following a risk assessment of auditable areas across the council. Councillor Duff raised a point about customer experience in relation to the Bulky Waste and Trees audits, suggesting this could be incorporated into future audits.

Annual Report on Exemptions to Contract Procedures and Procurement Rules

The Procurement Officer presented the annual report on exemptions to contract procedures. Seven exemptions were approved during the financial year, with reasons including additional or repeat goods/services, urgency, and single suppliers. Councillor Hilarie Bowman questioned the rationale behind exemptions, particularly for additional repeat goods or services. The Procurement Officer explained that exemptions are considered when changing suppliers would cause significant disruption or require extensive data transfer. Value for money was considered in each case, with benchmarking and market views taken into account. The report was noted by the committee.

Letter of Representation 2025/26

The committee approved the S151 Officer's Letter of Representation, which formally confirms the accuracy and completeness of the Statement of Accounts to the external auditors, Bishop Fleming. This letter is a statutory requirement for the audit process.

The meeting concluded with the committee moving into exempt business. The next meeting was scheduled for Wednesday, 9 December 2026.