The Audit and Governance Committee of West Oxfordshire District Council met on Thursday 24 September 2026, noting progress on internal audits, reviewing treasury management performance, and discussing the work of the Counter Fraud and Enforcement Unit. The committee resolved to note the reports presented on each of these key areas.

Internal Audit Progress Report

Lucy Cater, Head of Internal Audit at SWAP Internal Audit Services, presented the internal audit progress report. The committee was informed that one completed audit, on climate change operations, had resulted in one priority two recommendation. The report also confirmed that an outstanding Section 106 action, which had been pending for some time, had now been completed. The committee resolved to note the report.

Treasury Management Q1 Report

Madhu Richards, Director of Finance, presented the Treasury Management Q1 report, highlighting that overall performance for the quarter had been positive. While capital funds were influenced by economic conditions, higher revenue returns were achieved due to the Bank of England's slower reduction of bank rates than anticipated. The council had complied with all relevant indicators.

During the discussion, Councillor Dan Levy raised concerns about potential stock market volatility and any associated risks to the council's position. Madhu Richards explained that pooled funds are held for the long term, mitigating the impact of short-term market corrections. Councillor Levy also inquired about the realisation of pooled funds in the event of government reorganisation. Richards stated that any decision would depend on the clarity of the Local Government Reorganisation (LGR) programme and the financial situation of any new authority, but that the current structure disaggregates assets and liabilities.

Councillor Elizabeth Poskitt sought clarification on how credit ratings for investments are assessed, and Richards explained that this is handled by specialist treasury advisors, Arlingclose, who follow national rating systems and ensure the council only invests in very safe options. Councillor David Melvin asked for clarification on the dates of original investments, and it was agreed this could be added to the table in future reports.

Concerns were also raised about the forecast for lower income from investment properties. Richards explained this was due to prudence regarding voids and leases ending, citing a specific example of a tenant leaving a property in November. She assured the committee that the budget is factored for such eventualities and that the income from investment property is generally a stable return.

Councillor Toby Morris questioned the low capital expenditure in Q1, and Richards explained the lengthy processes involved in tendering and project delivery, including lead times for essential items like waste vehicles. She reassured the committee that major capital programme items were in train and that slippage from previous years had been accounted for. Morris also inquired about using capital slippage for internal borrowing, to which Richards responded that while the council relies on internal borrowing, projects are not deliberately delayed to avoid external borrowing.

The committee resolved to note the contents of the report.

Counter Fraud and Enforcement Unit (CFEU) Update Report

Emma Cathcart, Assistant Director of the Counter Fraud and Enforcement Unit (CFEU), presented the CFEU update report, focusing on projects and overarching fraud risks. She highlighted the review of the Fighting Fraud and Corruption Locally (FFCL) checklist, noting that areas of partial or non-compliance were being addressed. Mark Squibbs, Principal Investigation Officer, provided further detail on the development of fraud risk assurance registers for high-risk areas such as procurement, HR, and revenues and benefits.

Councillor Elizabeth Poskitt raised concerns about contractors and third parties signing up to the whistleblowing policy, noting that the council had been non-compliant in this area previously. Cathcart confirmed this would be addressed within the HR fraud risk assurance register. Councillor Dan Levy asked if requiring third parties to agree to council policies for whistleblowing could lead to them being treated as employees for tax purposes. Cathcart responded that this was unlikely and that the focus was on ensuring individuals were comfortable making protected disclosures. Levy also humorously challenged the team to create a West Oxfordshire-specific acronym as catchy as Gloucestershire's Glass Jar.

Councillor Toby Morris noted that some areas were marked as partially compliant, often due to a lack of meetings with portfolio leads or resource constraints. Cathcart acknowledged that resource was a challenge but that the CFEU partnership was cost-effective. She also explained that making fraud a responsibility of a specific portfolio lead might be less effective than ensuring awareness across all services.

The committee resolved to note the contents of the report.

Audit and Governance Committee Work Programme

The committee reviewed its upcoming work programme. A duplication regarding the Annual Local Government Ombudsman Letter was identified and would be removed from the September agenda. The committee resolved to note the work programme for 2026/27.