The Audit and Standards Committee of Stroud Council met on Tuesday 28 January 2025 to review the council's financial statements for the year ending March 2024, discuss treasury management strategies for the upcoming financial year, and receive updates on internal audit activities and risk management.

Statement of Accounts 2023/24

The committee was scheduled to consider the council's Statement of Accounts for the year ending 31 March 2024. This included reviewing the audited accounts and receiving the audit opinion from Bishop Fleming. The report outlined changes made to the unaudited accounts and sought approval for the Section 151 Officer and the Chair of the Audit and Standards Committee to sign the Statement of Accounts and the letter of representation. The report detailed the core financial statements, including the Movement in Reserves Statement, Comprehensive Income and Expenditure Statement, Balance Sheet, and Cash Flow Statement, along with notes on accounting policies and implications.

Treasury Management Strategy, Annual Investment Strategy and Minimum Revenue Provision Policy Statement 2025/26

A significant portion of the meeting was dedicated to the Treasury Management Strategy, Annual Investment Strategy, and Minimum Revenue Provision (MRP) Policy Statement for 2025/26. The report outlined the council's prudential indicators for 2025/26 to 2027/28 and its treasury strategy. It also detailed the council's borrowing requirements, investment policies, creditworthiness criteria, and an ethical investment policy. The report included an economic background, details of the treasury management scheme of delegation, and a liability benchmark. The committee was asked to recommend that the Council adopt the prudential indicators, approve the Treasury Management Strategy, Investment Strategy, MRP Statement, and the Ethical Investment Policy.

New Global Internal Audit Standards

The committee was informed about the new Global Internal Audit Standards (GIAS) 2025, developed by the Institute of Internal Auditors (IIA) and adopted by CIPFA for local government in England. These standards, along with a new Application Note and Code of Practice for the Governance of Internal Audit, will come into effect from April 2025. The report summarised the scope of the changes, key updates to the standards, and topical requirements. It also outlined the preparatory work undertaken by the Internal Audit team, including self-assessments, training, and an upcoming External Quality Assessment (EQA).

Internal Audit External Quality Assessment (EQA)

Members were informed about an upcoming External Quality Assessment (EQA) for the Internal Audit service, which was due in February 2025. This assessment, conducted by CIPFA, would be against the existing Public Sector Internal Audit Standards (PSIAS) due to the timing of the new Global Internal Audit Standards. A further EQA against the new GIAS was planned for 2026.

Strategic Risk Register Audit and Updates

The committee received an update on the Strategic Risk Register, which had undergone a recent audit to ensure its relevance and effectiveness. Proposed changes, identified through comparator research and governance groups, included expanding the 'Emergency Planning' risk into sub-risks, updating the 'Government White Paper on Devolution' risk, and removing or de-escalating certain risks such as 'Failure to deliver the canal project on time' and 'Statutory changes to waste legislation'. Six new risks were proposed for addition to the register, including Safeguarding, Health and Safety, Delivery of the Council Plan, Elections, Cost of Living, and Out of Date Workforce Information. A policy revision to review and validate all strategic risks quarterly was also being implemented.

Work Programme

The committee reviewed its work programme for the upcoming year, with scheduled reports including updates on Counter Fraud and Enforcement, Treasury Management, Internal Audit progress, the Quality Assurance and Improvement Programme (QUAIP), the Internal Audit Charter and Code of Ethics, and the External Audit Plan.

Internal Audit Activity Progress Report 2024-25

This report provided an update on the Internal Audit activity undertaken in relation to the approved Internal Audit Plan for 2024-25. It detailed the outcomes of audits conducted on the Capital Programme, Emergency Planning, and the Social Housing Decarbonisation Fund Wave 2, all of which provided substantial assurance. Advisory activity on the Social Housing Regulation Act identified areas for improvement, particularly concerning tenant involvement and stock condition surveys. The report also summarised the number of open audit recommendations from previous years and the current financial year.