The Audit and Corporate Governance Committee convened to discuss several key areas, including governance improvements, risk management, and financial oversight. The committee approved the Annual Governance Statement 2024/25 and Action Plan, and noted the provisional Statement of Accounts for 2023/24. Members also reviewed updates on counter-fraud measures, purchase order compliance, and treasury management.

External Auditors Provisional Value for Money Report 2024/25

The committee reviewed the Supplementary Agenda - Interim Auditors Annual Report 202425, which highlighted significant weaknesses in the council's financial sustainability, governance, and efforts to improve economy, efficiency, and effectiveness. The report from Grant Thornton, the external auditor, identified that the council is not financially sustainable, and its savings plans and asset disposal programme supporting its ongoing liquidity remain off track.

The auditors made several recommendations, including:

• Taking urgent action to address low levels of unearmarked and earmarked revenue reserves.
• Continuing efforts to deliver financial sustainability in the medium term.
• Reviewing the basis of the Asset Disposal Programme to ensure it is based on robust and reasonable assumptions.
• Devising a transformation programme supported by adequate funding to exit intervention and secure its best value duty.
• Developing a comprehensive project plan for the preparation of accounts.
• Reviewing and implementing effective financial governance and monitoring arrangements for its group relationships.
• Maintaining the permanence of the senior leadership team.
• Ensuring a fully-resourced Internal Audit function.
• Improving data quality and fostering a positive culture around data quality.
• Developing a plan to strengthen the performance of its housing service.
• Strengthening leadership and oversight in relation to the Slough Youth Justice Service, following a rating of inadequate from HM Inspectorate of Probation.
• Continuing to work with the Department for Education to improve performance in children's services and SEND¹.
• Significantly strengthening arrangements to oversee procurement and deliver value for money.

Annual Governance Statement 2024/25

The committee reviewed a progress update on the Annual Governance Statement (AGS) 2024-25, which identifies areas for improvement in governance. The AGS Appendix Action Plan Sept Update is linked to requirements from external auditor recommendations, directions, and best value themes. The action plan includes 49 individual actions under themes including financial governance, political leadership and democratic governance, property assets governance and company governance.

Improvement & Recovery Plan

The committee received an update on the Improvement & Recovery Plan related to political leadership and governance. The objectives of this plan are to:

• Build a strong culture of good governance by focusing on high-quality councillor leadership and governance behaviours.
• Build a strong culture of good governance amongst members and officers by focusing on high-quality officer-member relationships and behaviours.
• Develop fit-for-purpose governance systems and processes.

Key achievements since the last meeting included implementing a revised AGS assurance framework, conducting a self-assessment of the Audit & CG Committee, and approving new policy and budget framework rules in the constitution.

Local Government & Social Care Ombudsman and Housing Ombudsman Complaints

The committee reviewed the Local Government & Social Care Ombudsman and Housing Ombudsman Complaints and Annual Complaints Report 2024/25.

Housing Fraud Risks

The committee received an Update on Housing Fraud Risks. Members discussed the prevalence of housing fraud, with Councillor Gahir raising concerns. The Head of Internal Audit confirmed that it was a significant part of the team's caseload and provided a summary of the process undertaken to screen and investigate cases when information was received.

Retrospective Purchase Orders

The committee reviewed the Action Progress Report - PO Compliance Update, which provided an overview of retrospective purchase orders being raised and actions being taken to address compliance issues. Data for 2024/25 showed that 45% of purchase orders were raised retrospectively, accounting for £78.9m (29%) of gross expenditure during the year. For the first two months of the 2025/26 financial year, retrospective purchase orders had reduced slightly to 41%, however, this represented £19.6m (42%) of gross expenditure during the period.

CIPFA Financial Management Code Self-Assessment

The committee considered a report that provided an overview of the council's self-assessment of the CIPFA Financial Management (FM) Code and action plan. The outcome confirmed that the council was not yet fully compliant with the FM Code. There was full compliance with 38% of the assessment criteria, with 62% requiring further work to become compliant.

Treasury Management Outturn Report 2024-25

The committee considered a report that set out the Treasury Management Outturn Report 2024-25, which included borrowing, investments, and cash balances. On 31 March 2025, the council's total external borrowing was £458.48m, and its net borrowing, after taking account of investments, was £444.90m compared to £438.13m at 31 March 2024.