The Stevenage Borough Council Audit Committee met on Wednesday to discuss internal audit progress and treasury management. The committee noted the Shared Internal Audit Service progress report, and recommended the Annual Treasury Management Review for approval by the Cabinet and Council. A request was made to consider starting future Audit Committee meetings at a later time due to frequent lateness from members.

Annual Treasury Management Review

The committee reviewed the Annual Treasury Management Review of 2024/25, including prudential indicators, and recommended it to the Cabinet for onward recommendation for approval by the Council. The report highlighted that the council had met all statutory and regulatory requirements.

The Assistant Director (Finance) reported that capital expenditure was £44.4 million, lower than the budgeted £88.4 million due to reprofiling, which also reduced the need for borrowing. General Fund borrowing was £4 million, while Housing Revenue Account (HRA) borrowing was nil. Investments totalled £46.1 million, earning an average return of 4.95% and generating £2.3 million in interest.

Members raised questions about potential increases in Public Works Loan Board (PWLB) rates, the Minimum Revenue Provision (MRP) for the new multi-storey car park, the strong investment performance, and the financing of capital expenditure. The Assistant Director (Finance) confirmed that PWLB rates would be monitored, and provided clarification on the financing of capital expenditure, noting that £9 million of General Fund expenditure was met from grants and contributions rather than borrowing. They also agreed to confirm usage income for the car park outside of the meeting.

The Annual Treasury Management Review included several prudential and treasury indicators:

The report also noted that the council had maintained gross borrowing within its authorised limit, as required by s3 of the Local Government Act 2003¹.

Shared Internal Audit Service - Progress Report

Simon Martin from the Shared Internal Audit Service (SIAS) presented the first internal audit progress report for 2025/26. He summarised the work completed between April and August, which included three finalised audits with positive assurance levels and two new medium priority recommendations. He confirmed that there were no high priority recommendations outstanding and that performance indicators showed no risks to delivering an annual assurance opinion.

Members asked questions regarding the scope of the garages audit, particularly whether cleaning charges and validation of service delivery were included. Simon Martin agreed to confirm details outside of the meeting and provide further information for circulation to all members. Further questions concerned audit delivery progress and potential resourcing issues. Simon Martin advised that SIAS was currently at full establishment and that delivery was scheduled flexibly throughout the year, with no risks to plan delivery.

The committee resolved to note the Internal Audit Progress Report and the status of critical, high, and medium priority recommendations.

The three final reports issued since 1 April 2025 were:

• Insurance - with a substantial assurance level and two advisory recommendations
• Garages - with a reasonable assurance level, two medium recommendations, and one advisory recommendation
• Social Housing Decarbonisation Funding (SHDF) Grant - with an unqualified assurance level and no recommendations

The two new medium priority recommendations were from the audit of garages:

• Review and update the Garage Management Services Policies and accompanying internal procedures, including any documentation published on the council's website.
• Develop an Enforcement and Recovery Policy or process document outlining a clearly defined procedure for each stage of enforcement and recovery, ensuring alignment with the Garage Management Services Policy and other relevant council guidance.

Other Business

A member commented that a number of Audit Committee Members were regularly offering apologies for lateness and requested that consideration be given to starting Audit Committee meetings at a later time. Councillor Carolina Veres, Chair of Audit Committee, agreed to consider the request.