The Governance & Audit Committee of Bracknell Forest Council convened to review the strategic risk register, receive an internal audit update, and discuss financial management arrangements. The committee also planned to discuss counter fraud arrangements and updates to financial management. Some of the information relating to financial and business affairs was expected to be discussed in a closed session, excluding the public and press.

Strategic Risk Register

The committee was scheduled to review and provide feedback on the Strategic Risk Register, as presented by Sally Hendrick, Head of Audit & Risk Management. The register was reviewed by the Strategic Risk Management Group (SRMG) and the Corporate Management Team (CMT) in August and September. Actions taken included increasing the finance risk tolerance level, reducing the climate change risk score, and removing the local economy resilience risk from the register, de-escalating it to the Place register. The safety valve risk was scheduled to be revisited.

The Strategic Risk Register included discussion of the following risks:

• Medium-Term Financial Sustainability: The report pack noted that the council faces financial challenges, including pressures from Dedicated Schools Grant (DSG) deficits and increasing costs. Actions already taken included spending controls, flexible use of capital receipts, and setting aside reserves for the Safety Valve programme. Further mitigation strategies to be discussed included reviewing the Business Change Programme, identifying cost mitigations for the Dedicated Schools Grant, and developing a three-year budget plan.
• NHS Pressures: Increased pressure on the National Health Service (NHS) was identified as an unmitigated risk, potentially leading to cost escalation within children's and adults' services. The report pack noted that without mitigations, it would be increasingly difficult to deliver a balanced budget for placements.
• Local Economy Resilience: External economic and political factors can impact the local economy, with changes to working practices reducing the need for office space. Actions already taken included adopting an economic strategy and engaging with the Bracknell Forest Economic Partnership and Bracknell Business Improvement District (BID). Further mitigation strategies to be discussed included supporting the Bracknell Business Improvement District and establishing regular business liaison with major businesses.
• Increasing Pressure on Frontline Services: Changing demographics and the cost of living crisis are increasing pressure on frontline services, with more adults requiring support. The report pack noted that pressure on families is resulting in an increased number of referrals to early help and children's social care.
• Cyber Security: The risk of cyber attacks was noted, with potential impacts including financial loss and reputational damage. Actions already taken included achieving Cyber Essentials Plus accreditation and implementing multi-factor authentication.
• Climate Change: The impacts of climate change were discussed, with potential risks including flooding and extreme weather events. Actions already taken included implementing initiatives to reduce the council's carbon footprint and developing a Community Climate Emergency Strategy.
• Recruitment and Retention: Difficulties in recruiting and retaining permanent staff were identified as a risk, leading to increased reliance on agency staff. Actions already taken included producing management information on absence and high-cost locums, and implementing a retention and recruitment project.
• SEND Funding Deficit: A national reform of Special Educational Needs and Disabilities (SEND) is required to address the issues being faced by the council, with a substantial cumulative deficit. Actions already taken included implementing a Safety Valve agreement and developing a new model of delivery for specialist support services.

Internal Audit Update

Sally Hendrick, Head of Audit & Risk Management, was scheduled to present an update on the progress of the Annual Internal Audit Plan. The update summarised internal audit activity from April to August 2025.

The report pack included a summary of internal audit results to date, with 16.7% of reviews finalised and 10.4% with draft reports issued. The report pack also detailed the status of audits, assurance levels, and identified high-priority control issues.

Audits where high-priority issues had been identified since the last committee update included:

• Health and safety in a client-facing environment
• Migration services
• Debt management - people
• School A follow-up

The report pack also included an update on audits with unimplemented critical and major recommendations, including council-wide procurement, school places planning, business continuity, and tree services.

Financial Management Arrangements

Stuart McKellar, Executive Director: Resources, was scheduled to present information regarding the council's financial management arrangements. The presentation was in response to the committee's consideration of the Head of Audit and Risk Management's report in June, which presented an amber observation around the budget process.

The report pack noted that Bracknell Forest Council had a reputation for strong financial management until the 2023/24 financial year, when an overspend was reported. An advisory internal audit review and a more detailed external review by PWC were commissioned to assess the council's budget setting and management processes.

Responses to the internal audit and PWC reviews have involved both the finance team and the wider organisation. Actions already taken included recording finance matters training, asking budget holders to certify they have received and understood their annual budget, and developing a new Agresso module. The remaining outstanding items were scheduled to be addressed through the Council Wide Financial Management Review, which is part of the council's Corporate Improvement Programme.