The Governance & Audit & Standards Committee met to discuss the council's complaints, governance, treasury management and internal audit performance. The committee reviewed the Annual Governance Statement, and noted reports on complaints, treasury management and internal audit performance. They also discussed actions to address governance issues and improve services.

Overview of Portsmouth City Council Complaints

The Governance & Audit & Standards Committee reviewed a report on Portsmouth City Council complaints, including those handled by the Local Government and Social Care Ombudsman (LGSCO) for the year 2024/25. The report highlighted a 14% decrease in overall complaints compared to the previous year, with a significant reduction in complaints related to Housing, Neighbourhoods and Building Services due to a change in policy where landlord complaints are now addressed under a separate policy.

Other key trends and issues raised in the report included:

• Rubbish and Recycling: 51 complaints were received regarding issues with rubbish and recycling collections, particularly missed collections at communal sites, which coincided with the transition of waste services back to in-house management.
• Education and SEND: The largest rise in complaints came from Children, Families and Education, with most complaints relating to delays and procedural failings in the Education, Health and Care Plan (EHCP) process.
• Economy, Transport & Planning: There was a 21% increase in complaints for the Economy, Transport and Planning directorate, with a significant number concerning planning applications, parking services, and communication failures.
• Revenues and Benefits: Five complaints were received in relation to retrospective council tax billing due to properties being reclassified by the Valuation Office Agency (VOA).

The committee noted that the LGSCO received 44 complaints and enquiries about Portsmouth City Council in 2024/25, compared with 46 in 2023/24. The LGSCO investigated seven cases and upheld five (71%), which is comparable to similar authorities.

Draft Annual Governance Statement

The committee reviewed and commented on the Draft Annual Governance Statement (AGS) for 2024/25. The AGS sets out how Portsmouth City Council has complied with the Local Code of Governance and meets the requirements of the Accounts and Audit (England) Regulations 2011¹. It outlines the systems and processes in place to ensure that council business is conducted lawfully and in accordance with proper standards.

The AGS reports against seven core principles of governance set out in the International Framework for Good Governance in the Public Sector. It also includes the annual opinion on the effectiveness of the internal system of control from the Chief Internal Auditor.

The committee discussed significant governance issues for 2025/26, including:

• Development of the devolution and local government reorganisation agendas
• Budget/financial position, specifically in respect of demand-led services
• Reduced assurance levels from external audit
• Compliance with statutory duties and other external requirements and directives
• Risks in the wider health and care system
• Capacity within the organisation and key individuals
• IT resilience and adaptability

Treasury Management Monitoring Report

The committee reviewed the Treasury Management Monitoring Report for the first quarter of 2025/26. The report outlined the council's performance against the treasury management indicators approved by the City Council on 18 March 2025.

The report highlighted that the council's treasury management activities have remained within the Treasury Management Policy 2025/26 in the period to 30 June 2025. No borrowing has been undertaken in the first quarter of 2025/26 or is currently planned for the remainder of this year.

The report also noted that there have been no changes to the council's risk appetite in its treatment of surplus cash. All investments are made with security being the highest priority, followed by liquidity then yield. During this quarter, the Bank of England reduced the Base Rate from 4.50% to 4.25% on 8 May 2025.

Internal Audit Performance Status Report

The committee reviewed the Internal Audit Performance Status Report to 1st September 2025. The report updated the committee on the Internal Audit Performance for 2025-26 against the Annual Audit Plan, highlighted areas of concern and areas where assurance can be given on the internal control framework.

As of 1st September 2025, 10 (16%) of the planned audits have been finalised, with a further 9 (14%) at the draft report stage. The report detailed ongoing internal audit involvement in areas such as:

• Regulation of Investigatory Powers Act (RIPA) authorisations
• Anti-Money Laundering monitoring
• Financial Rules Waivers
• National Fraud Initiative (NFI)
• Counter Fraud Programme
• Governance & Audit & Standards Committee reporting and attendance
• Risk Management, Corporate & IT Governance and the Annual Governance Statement
• Civic Futures, Project Governance, Fusion Governance and Performance Management
• Investigation cases
• Items of advice

The report also noted that two full audits have been added to the plan: Commercial Voids and Housing Compliance. Six grant sign offs have been added to the plan, as well as follow ups for Damp and Mould, Pest Control, Pilotage, Hire Cars, and Home to School Transport.

The committee discussed audits completed since the last meeting, including:

• Commissioning of Placements (Contract)
• Substance Misuse
• Cash Handling and Collection
• Multiply Grant
• IT Procurement, Inventory & Disposal
• Border Control
• Emergency Planning
• Risk Management
• Solent Growth Hub