The Audit and Standards Committee of Staffordshire County Council met on Tuesday 29 September 2026 to discuss the National Fraud Initiative, the internal audit plan, proposed changes to the council's scheme of delegation and constitution, and the management of complaints under the Members' Code of Conduct. The committee received updates on these matters and made recommendations for further action.

National Fraud Initiative 2026 Update

The committee received an update on Staffordshire County Council's participation in the Cabinet Office's National Fraud Initiative (NFI) 2026. Alex Cannon, Senior Audit Manager, explained that the NFI is a mandatory data-matching exercise that has identified significant amounts of fraud, overpayment, and error since 1996. For the 2026 exercise, the council will submit data including payroll, pensions, trade creditors, blue badges, direct payments, and residential care home residents. Fair processing notices are being issued to inform individuals about data usage, with data submission to the Cabinet Office due by 21 October and results expected by 18 December. The proposed fee for this year's exercise is £5,880. Councillor Colin Greatorex questioned the cost and suggested that the Cabinet Office should cover it, but ultimately agreed it was money well spent. He also raised concerns about employment fraud and whether the council had restrictions on employees having second jobs. It was confirmed that employees must declare and have second jobs approved by management, and the NFI checks would highlight any undeclared roles. Councillor Ian Cooper expressed surprise at the national figure of £500 million identified in fraud over 30 years, finding it astonishing and unbelievable. The committee resolved to receive and note the report.

Internal Audit Plan 2026/27 - Progress Update

Lisa Andrews, Assistant Director – Audit, Risk Management & Insurance Services and ACFS, presented a progress update on the Internal Audit Plan for 2026/27. She highlighted that the service had successfully recruited to all established posts, with two new Audit Assistants and two Auditors now in place. The plan has seen some revisions, including the removal of a planned audit of a Customer Relationship Management (CRM) system due to the absence of a standalone system, and the addition of a Blue Badge System audit. An audit of the Home to School Transport - Vacant Seat Scheme was also removed from the plan due to its postponement. The report detailed progress on systems audits, compliance reviews, and counter-fraud activities, with 36% of the overall audit plan completed or in progress. Proactive fraud activities have identified duplicate invoice payments totalling £5,210 and other anomalies in purchase card and mileage claims, which are being followed up. Reactive fraud activities are ongoing for eight allegations received to date. The committee noted that the implementation of audit recommendations is being tracked, with only one high-priority recommendation remaining overdue. The committee resolved to note the progress against the plan and the implementation of high-level recommendations.

Proposed Addition to the Scheme of Delegation: Market Supplement Payment Approval

Jennie Griffiths, Pay & Reward Manager, and Sarah Getley presented a report proposing an addition to the council's Scheme of Delegation regarding market supplement payments. These payments are temporary additions to salaries for roles that are difficult to recruit or retain due to market conditions. The scheme requires a robust business case, and market supplements are considered a last resort. The proposed change would formally delegate approval responsibilities for these payments to the Senior Leadership Team (SLT), with the Special Committee (Remuneration) handling approvals for the Chief Executive and Directors. Councillor Baker inquired if the scheme applied only to new hires or existing staff, and was informed it would apply to all employees in a job attracting a market supplement. Councillor Cooper asked about the financial impact, and it was noted that currently only four jobs have market supplements, primarily within the Children and Families senior leadership team, with costs absorbed by the respective business areas. Councillor Baker also asked about the review process, and it was confirmed that payments are temporary, reviewed annually, and formally every three years, with the potential to cease or reduce based on market conditions. The committee resolved to note the introduction of the scheme and agree to update the Council's Scheme of Delegation.

Proposed Changes to the Constitution

Julie Castree-Denton, Manager – Planning Policy and Development Management Team, presented proposed changes to the council's constitution to align with new national regulations regarding planning functions and committee sizes. The changes include reducing the Planning Committee size from 15 to 13 members and amending delegations to officers. These changes are mandated by the Town and Country Planning (Discharge of Local Planning Authority Functions) (England) Regulations 2026, which come into force on 31 October 2026. The regulations shift the presumption towards officer delegation, with committee referrals being the exception, subject to a gateway test. Councillors Jeremy Pert and Ian Cooper expressed strong opposition to the changes, viewing them as an erosion of local democracy and an imposition by central government. They argued that elected members should retain the power to challenge decisions, not just officers. Ms. Castree-Denton clarified that the regulations are mandatory and failure to comply could lead to judicial review or quashed planning decisions. Despite the council's opposition to the principle, the committee acknowledged the legal requirement to implement the changes. The committee resolved to recommend to Full Council that the constitution be amended, but with a note of non-endorsement due to concerns about the loss of local democratic control.

Code of Conduct for Members - Report on the Management of Complaints (May 2026 - July 2026)

Simon Humble, Governance and Support Manager, presented the Quarter 1 update on the management of complaints under the Members' Code of Conduct. The report detailed the status of complaints outstanding from the previous year and new complaints received in the current quarter. Of the 88 outstanding complaints from 2025/26, 55 were determined as no breach, one resulted in a sanction (removal of a social media post and apology), and 32 remain ongoing. The majority of closed complaints related to social media comments. In Quarter 1 of 2026/27, nine new complaints were recorded, with five closed as no breach and four remaining open. Themes included social media comments, communication with constituents, and comments made at council meetings. Councillor Baker inquired about the timeline for recovering from the backlog, and it was stated that the situation had stabilised with a reduction in outstanding complaints. Councillor Cooper requested a breakdown of the costs associated with managing these complaints, noting a discrepancy between statements of no resource implications and unforeseen pressures on the Member and Democratic Services budget. It was agreed that financial information would be included in future reports. The committee resolved to note the report and make any appropriate recommendations.

Update on Appointment of Members to the Standards Panel for 2026/27

Simon Humble also presented an update on the appointment of members to the Standards Panel for 2026/27. Councillor Rhys Mandry was nominated in place of Councillor Rhys Machin, and Councillor Matthew Wallens in place of Councillor Jon Pendleton. The full membership of the panel was noted, with one vacancy remaining. The committee resolved to note the updated membership.

Forward Plan for the Audit and Standards Committee 2026/27

Lisa Andrews presented the forward plan for the Audit and Standards Committee, outlining the items scheduled for future meetings. Councillor Pert noted an apology from Councillor Alex Farrell for the meeting. The committee noted the forward plan.