The Audit and Standards Committee of Stroud Council is scheduled to convene on Tuesday, 27 October 2026, with a key focus on reviewing the council's strategic risks, financial performance, and operational standards. The committee will also consider policies related to crime proceeds and anti-money laundering, alongside updates on internal audit progress and plans.

Revised Strategic Risk Register

A significant item on the agenda is the proposed approval of the revised Strategic Risk Register and the council's approach to strategic risk management. This register is a crucial component of the council's governance framework, designed to identify and assess key risks that could impact the delivery of council objectives. The revised register aims to provide a clearer focus on strategic and systemic risks, with each risk now featuring a defined statement, a named accountable Strategic Leadership Team Lead, a risk category, current and target risk scores, and details of key controls and mitigations. The report notes that this revised approach strengthens accountability and assurance, and that members will be invited to submit questions in advance of meetings to facilitate more focused discussions.

Annual Complaints Update

The committee is set to receive an update on the council's complaints performance for the financial year 2025/2026. The report highlights that overall complaint volumes have remained steady, with most resolved at Stage 1. However, a key challenge identified is the on-time performance, with only 55% of complaints responded to within the council's published service standards. The report indicates that most delayed responses are only slightly outside these standards and remain compliant with the more lenient expectations of the Ombudsman. The root causes of complaints are also detailed, with the report noting that while lessons are learned, there isn't yet a corresponding reduction in recurring issues, suggesting a need to strengthen the effectiveness of improvement actions. Planned improvements to the corporate complaints function include the implementation of quarterly reporting to the Leadership & Management Team and enhancements to the lessons learned and service improvement records within the complaints case management system.

Annual Performance Review of Our Service Standards

This agenda item will provide the committee with an annual performance overview of Our Service Standards for 2025, alongside an update on customer experience initiatives. The report indicates that the council's existing service standards remain broadly appropriate and comparable to those of neighbouring authorities. However, a review has identified that the primary issue is not the standards themselves, but the consistency of their application, communication, and monitoring across the organisation. Key areas for improvement identified include consistency of service delivery, communication and acknowledgement of enquiries, service ownership and accountability, staff training, and performance measurement. An action plan has been developed to address these areas, focusing on reinforcing organisational expectations, introducing a standard corporate email acknowledgement template, developing a member escalation process, and improving visibility of service ownership.

Proceeds of Crime and Anti-Money Laundering Policy

The committee will be presented with the Proceeds of Crime and Anti-Money Laundering Policy for approval. This policy outlines a best practice approach to managing the council's anti-money laundering obligations and suspicious activity reports, reflecting current legislation and council procedures. The policy applies to all officers and elected members, emphasizing their personal responsibility to be vigilant. It details the council's obligations, areas at risk of money laundering, and the procedures for identifying and reporting suspicious activity, with the Strategic Head of Finance designated as the Money Laundering Reporting Officer (MLRO).

First Quarter (Q1) Treasury Management Activity Report

An update on the council's treasury management activities for the first quarter of the financial year, ending 30 June 2026, will be provided. The report covers the council's cash position and liquidity, investment portfolio, borrowing profile, and compliance with Prudential Indicators and Treasury Limits. The council's investment strategy prioritises the security and liquidity of capital, followed by yield and Environmental, Social, and Governance (ESG) ratings. The report notes that the council's treasury management activities have been undertaken in compliance with approved strategies and limits, with no breaches of Prudential Indicators or Treasury Limits reported for the period. It also highlights the ongoing process of liquidating investments in property funds, with estimated capital losses expected to be covered by the Investment Risk Reserve.

Internal Audit Progress Report

The committee will receive an update on the progress of internal audit activities for the 2026/27 financial year. The report summarises the outcomes of audits completed up to August 2026, including an assurance opinion on the council's control environment. The audit of the Complaints service area provided a Substantial assurance level, noting good practices in complaint management and the use of the Liberty IT system. However, it identified a missed opportunity for enhanced strategic oversight due to a lack of in-year performance reports to the Leadership Management Team and a need for other service departments to adopt similar procedures for identifying and following up on service improvements from complaints. Management actions have been agreed to address these findings. The report also details the number of open audit recommendations, with a slight increase in overdue recommendations noted.

Draft Internal Audit Plan Update

This item presents a summary of the draft Risk-Based Internal Audit Plan for 2026-27, developed in accordance with the Accounts and Audit Regulations 2015 and the Global Internal Audit Standards. The plan has been developed through consultation with key stakeholders and an assessment of the council's risk profile, ensuring alignment with organisational priorities and available resources. The report highlights the introduction of a half-year planning approach to enhance agility in responding to emerging risks. The full Internal Audit Plan for 2026/27 comprises 345 productive audit days, allocated based on risk, assurance needs, and organisational priorities.

Extension of Term of Office for Independent Co-opted Member

The committee is asked to consider and approve the extension of the term of appointment for the independent co-opted member of the Audit and Standards Committee. This member was initially appointed for a one-year term in September 2025, with the possibility of a three-year appointment. The report recommends extending this term for a further two years, until September 2028, or until the vesting day of the new unitary authority, Gloucestershire Council, whichever comes sooner. This is considered best practice to ensure the committee benefits from independent advice and expertise.

Standing Items

The committee will also review its Work Programme for 2026/2027, which outlines the reports and topics scheduled for future meetings. This includes regular updates on the Strategic Risk Register, performance monitoring, complaints reporting, and internal audit progress.