The Audit and Governance Committee of Worcestershire Council scheduled a meeting to discuss the annual report of the committee's chair, internal audit reports, risk management, treasury management, and a training plan for the upcoming year. The meeting was also scheduled to cover the committee's work programme.

2024/25 Internal Audit Annual Report and Chief Internal Auditor Annual Audit Opinion

The committee was scheduled to note the Internal Audit Annual Report 2024/2025 and the Chief Internal Auditor Annual Audit Opinion. According to the report pack, the Chief Internal Auditor was expected to give an overall corporate assurance assessment rating of 'needs improvement' for the organisation's framework of governance, risk management and internal control.

The report stated that a 'needs improvement' rating means:

significant gaps, weaknesses or non-compliance were identified with improvement required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited.

The report also included that six audits were reported as 'needs improvement' assurance outcomes.

The report pack included the Quality Assurance Improvement Plan, the Audit Plan Status Overview and Action Status, and the National Fraud Initiative Key Fraud Risks Summary.

Risk Management Update

The Audit and Governance Committee was scheduled to review the latest corporate risk reports and dashboard. They were also expected to note progress on the Corporate Performance and Risk System, and the 'Failure to Prevent Fraud Risk' requirements and actions.

According to the report pack, the council's risk register consisted of 140 total risks, 29 of which were designated as corporate level. As of June 12, 2025, three corporate risks were flagged as red, with a risk score of 20 or more, and 15 corporate risks were rated amber, with a score between 10 and 16.

The report pack also stated that a new Corporate Performance and Risk Monitoring System had been launched in July for performance indicators and would be launched over the summer for risk management.

The committee was also scheduled to discuss the Economic Crime and Corporate Transparency Act (ECCTA) 2023, which created a new offence of failure to prevent fraud. The act comes into effect on 1 September 2025.

2024/25 Annual Report of the Chairman of the Audit and Governance Committee

The committee was scheduled to note the 2024/2025 Annual Report of the Chairman of the Audit and Governance Committee, which was due to be reported to the council. The report provided a summary of performance for the Audit and Governance Committee against its terms of reference, its engagement with internal and external audit, and any significant issues the committee considered during 2024/2025.

The report noted that due to a change of administration in May 2025, the report was prepared on behalf of the Chairman, Councillor Dan Birch, but that Councillor Birch had approved the report.

The report listed the committee's achievements, including scrutinising and approving the draft statement of accounts for 2023/24, considering and approving the Annual Governance Statement for 2023/24, and monitoring the work of external audit.

Internal Audit Progress Report

The committee was scheduled to review the Internal Audit Progress Report. The Chief Internal Auditor recommended that the report be agreed.

The report pack noted that based on the position at the end of the 2024/25 financial year, the overall corporate governance assurance level was considered to be remaining at 'needs improvement'.

The report pack also included the Audit Status, Action Status, National Fraud Initiative Key reports, and the External Quality Assessment Action Plan.

Internal Audit External Quality Assessment

The committee was scheduled to note the External Quality Assessment. The Chief Internal Auditor recommended that the External Quality Assessment be noted.

The report pack stated that all internal audit functions are required every five years to have an independent assessment on their conformance with the Internal Audit Standards. The outcome of the independent assessment was 'generally conforms'.

The report pack included the External Quality Assessment Report.

Treasury Management Annual Report 2024/25

The committee was scheduled to note the Treasury Management Annual Report 2024/25. The Chief Financial Officer recommended that the report be noted, and that the committee consider whether it wished to add any comments to the report to Full Council.

The report summarised the treasury management performance and position information for Worcestershire County Council for the year ended 31 March 2025.

The report pack stated that the Council's Capital Financing Requirement at 31 March 2025 was £731.0 million, compared to £707.2 million at the start of the year. Total external borrowing and other capital financing liabilities of the Council at 31 March 2025 was £607.1 million, and the total interest paid servicing external debt for the year was £19.2 million.

Audit and Governance Committee Outline Training Plan for 2025/26

The committee was scheduled to agree the 2025/26 Outline Training Plan for the Audit and Governance Committee. The Chief Financial Officer recommended that the plan be agreed.

The report pack stated that to assist members of the Audit and Governance Committee, it was considered that the following areas of training would support them in their role: external audit overview and committee requirements, internal governance and assurance, risk management, and financial overview.

Work Programme

The committee was scheduled to note its future work programme and consider whether there were any matters it would wish to be incorporated.