The Governance Committee met to discuss the 2024/25 financial outturn, the corporate risk register, and various audit reports. The committee approved the Annual Governance Statement for 2024/25 and recommended that the Leader and Chief Executive sign it. They also reviewed debt collection and write-off reports for various services.

Here's a more detailed look at the key discussion points:

2024/25 Financial Outturn

The committee reviewed the Financial Outturn 2024/25 report, noting a £776,000 deficit in the General Fund, which will be covered by the Smoothing Reserve. The Head of Finance and Investment, Helen Lamb, explained that this was due to a number of factors, including increased costs for emergency accommodation and a rise in bad debt provisions, offset by staff vacancy savings. The Housing Revenue Account (HRA) showed a surplus of £2.804 million, which was transferred to the Housing Initiatives Reserve. The committee also reviewed the Draft Statement of Accounts 2024-25, which remained subject to external audit.

Annual Governance Statement

The committee approved the Annual Governance Statement for 2024/25, which assesses the effectiveness of the council's internal controls and compliance with its code of corporate governance. The Head of Corporate Services and Democracy, Rebecca Brough, presented the report, highlighting that the council had strong governance arrangements in place, but also identified areas for improvement. The committee recommended that the Leader and Chief Executive sign the statement.

Quarterly Internal Audit Update Report

The committee discussed the Quarterly Internal Audit Update Report, which summarised work completed by the East Kent Audit Partnership (EKAP). The report highlighted seven internal audit assignments, with most receiving a 'Substantial' assurance level. However, reviews of Fraud Resilience, the Main Accounting System, and VAT, received a 'Limited' assurance. The committee also discussed follow-up reviews and outstanding recommendations, including those related to Garage Management, Construction Industry Scheme (CIS), and Income, Bank Reconciliation and Cash Collection. An addendum to the report included a management response from the Head of Property Assets regarding the Garage Management follow-up, citing staffing issues as a reason for delays in implementing recommendations.

Corporate Risk Register Quarterly Update

The committee received the Corporate Risk Register Report September 2025, which identified strategic risks that may affect the delivery of core functions and the Corporate Plan. The Head of Corporate Services and Democracy, Rebecca Brough, noted that one risk had been removed (R30 Local Plan) and one added (R40 Department of Works and Pensions Compliance Audit). Members discussed the 'four T's of Risk Control' (Tolerate, Treat, Transfer, Terminate) and the distinction between threats and risks.

Annual Debt Collection and Write-Off Reports

The committee reviewed several reports concerning debt collection and write-offs:

Annual Debt Collection Report for East Kent Services (Managed by PartnershipOne Ltd)

The committee noted the Annual Debt Collection Report for East Kent Services, which provided an overview of debt and write-off positions for debts managed by PartnershipOne Ltd¹. The report indicated that Council Tax collection rates remained high, but there had been a decrease in collection compared to the previous year. Business Rates collection was also strong, but write-offs had increased due to a project to maximise income from historic liabilities. Write-offs for 2024/25 totalled:

• Council Tax: £438,735
• Business Rates: £400,373
• Sundry Debts: £56,889
• Housing Benefits: £68,776

Annual Write Off Report for Housing Services

The committee noted the Annual Write Off Report for Housing Services, which detailed former tenant arrears write-offs totalling £103,801. The Head of Finance & Investment, Helen Lamb, noted that this was lower than the previous year due to consistent management of current tenant arrears.

Annual Write Off Report for Parking Services

The committee reviewed the Parking Services Annual Write Off Report, which showed write-offs of £44,005 for the financial year 2024/25.

Progress Update on Section 24 Statutory Recommendations

The committee considered the Progress Update on Section 24 Statutory Recommendations, presented by the Head of Finance and Investment, Helen Lamb. The report detailed progress made in areas of financial management, financial performance information, and governance and oversight, following a report issued by Grant Thornton². Key achievements included completion of VAT returns and partial exemption, and review of the Annual Governance Statement. The report also included an update on the project management process, with a new process approved by the Corporate Management Team and being rolled out across the council.

Treasury Management Year End Report 2024/25

The committee reviewed the Treasury Management Year End Report 2024/25, which provided details of the council's treasury management activities for the year. The report highlighted that £46.1 million of the council's investments were in externally managed strategic pooled funds, generating an income return of 4.65%. Additional short-term borrowing was undertaken due to cash flow requirements, and a reduction in inter-authority lending led to increased borrowing costs. The council remained within its Treasury Management guidelines and complied with the Prudential Code. Appendices to the report included the TM Outturn Report FY 2024-25, Prudential Indicators FY 2024-25, and details of the investment and borrowing portfolios.

Audit Progress Report and Sector Updates

The committee considered the Audit Progress Report and Sector Updates from Grant Thornton, the external auditors.

Interim Auditor's Annual Report

The committee considered the Interim Auditor's Annual Report.

Declarations of Interest

There were no declarations of interest made by members.

Attendees

The following councillors attended the meeting: Councillor Stacey Blair (Deputy Leader of the Independent Group), Councillor Martin Bates, Councillor Susan Beer (Chair of the Council), Councillor Roger Knight, Councillor Jeff Loffman, Councillor Stephen Manion, and Councillor Helen Williams. Jemma Duffield also attended.