The Governance and Audit Committee were scheduled to meet to discuss internal audit activity at two schools, internal audit recommendations for parking enforcement and other matters, treasury management, and corporate fraud.

Annual Corporate Fraud Report

The committee were scheduled to review the annual corporate fraud report 2024-25, which summarises counter fraud work undertaken by the council's Fraud Department and the Regional Internal Audit Service (RIAS). The report includes an update on arrangements to manage fraud risks, actions to improve resilience to fraud, and the National Fraud Initiative (NFI). The NFI is a data matching exercise coordinated by Audit Wales, comparing the council's data with that of other bodies like local authorities, the Department for Work and Pensions (DWP), and His Majesty's Revenue & Customs (HMRC).

The report at appendix A - annual corporate fraud report 2024-25 details the council's commitment to preventing fraud, bribery, and corruption. It also outlines improvements to the council's external fraud webpages, which allow the public and staff to report fraud directly to the Fraud Department. The report also notes that the Anti-Tax Evasion Policy, Anti-Money Laundering Policy, and Anti-Fraud, Bribery and Corruption Policy have been updated, and fraud awareness training is available for staff and councillors.

The report also provides details of the most recent biennial data matching exercise, based on data extracted in October 2024. According to the report, this exercise has so far identified eight frauds or errors, with £8,017.23 of recoverable funds. The exercise also led to the cancellation of 230 blue badges¹, resulting in a notional saving of £182,620. The report also includes a self-appraisal checklist issued by Audit Wales to assess engagement with the NFI.

The annual report also provides details of internal counter fraud work undertaken by the Regional Internal Audit Service and the council's Senior Fraud Investigator, Simon Roberts, including internal investigations, council tax reduction investigations, and blue badge investigations. According to the report, council tax reduction and incidental housing benefit savings of £77,987.96 were achieved as a result of fraud investigations concluded during 2024-25.

Treasury Management Outturn Report

The Governance and Audit Committee were scheduled to discuss the treasury management outturn report 2024-25. According to the treasury management outturn 2024-25 cover report, the report provides an update on treasury management activity for the year 1 April 2024 to 31 March 2025. As of 31 March 2025, the council had £103.80 million of long term debt, £15.66 million of other long term liabilities and an overall net debt position of £82.71 million. The average interest rate for debt was 4.73% (excluding Salix borrowing which is interest free) and for investments it was 4.39%.

The report notes that the council has complied with the Chartered Institute of Public Finance and Accountancy's (CIPFA's) Treasury Management Code and Welsh Government Investment Guidance.

The appendix A treasury management outturn report 24-25 provides a summary of treasury management activities, including external debt and investment positions. During the year, an additional £5 million long term borrowing was taken out from the Public Works Loan Board (PWLB) to replace a £5.8 million long term loan maturing 31 March 2025.

The report also details the council's investments, which are split across various counterparties, including local authorities, money market funds, and banks. Investments are made based on security, liquidity, and return, in accordance with Welsh Government guidelines.

The report includes a liability benchmark, which helps assess the lowest level of borrowing the council needs, taking into account available cash resources. It forecasts that the council will likely need to borrow long term in 2025-26.

The report also provides information on the maturity structure of borrowing, interest rate exposures, and non-treasury investments.

Update Report on Internal Audit Activity at Maesteg School and Penybont Primary School

The Governance and Audit Committee were scheduled to receive an update report in relation to internal audit activity at Maesteg School and Penybont Primary School. According to the IA Maesteg School and Penybont Primary School report, Internal Audit identified issues at both schools, resulting in a 'limited assurance' opinion for each.

The following issues were identified during the audit of Penybont Primary School:

• the level of expenditure, using a Council purchasing card, was extremely high when compared to other Bridgend schools;
• records were not fully maintained including the retention of receipts and invoices (which meant that independent checks of the purchases were not being undertaken as expected);
• purchased items were not being securely stored or recorded on an inventory; and
• some school governors had not participated in the necessary safeguarding training.

The following key issues were identified during the audit of Maesteg School:

• only the headteacher has a delegated expenditure limit at the school;
• the purchase of a minibus did not have the required three quotes or authorisation by the full governing body available;
• the school's private fund had not undergone an independent audit for at least two years and records of cash received were not available for the two years up to September 2024;
• there was no breakdown of expected miscellaneous income in the school budget;
• letting fees charged to hirers had not been agreed by the governing body and inadequate records had been maintained, and
• some new members of staff had commenced their roles without Disclosure and Barring Service (DBS) clearance or appropriate risk assessments in place.

The report states that both schools agreed to all recommendations made and are in the process of implementing them. Internal Audit will revisit Maesteg School by 31 October 2025 and Penybont Primary School by 31 December 2025 to monitor progress.

Position Statement on Internal Audit Recommendations

The committee were scheduled to receive a position statement on internal audit recommendations for parking enforcement, home to work mileage for council vehicles and Porthcawl Harbour. According to the parkingharbourfleetrecommendationsgac_final report, the internal audit made recommendations in respect of parking enforcement, home to work mileage for council vehicles, and Porthcawl Harbour.

The report notes that a draft Parking Enforcement Policy has been prepared, and a report will be presented to Cabinet in October 2025 seeking approval of the policy.

Regarding home to work mileage in council vehicles, a comprehensive review of the council's fleet is underway, scheduled for completion by 1 August 2026. In the interim, authorisation for home-to-work use has only been granted where certain criteria are met, such as the employee being on call or needing to transport essential tools or equipment.

For Porthcawl Harbour, the internal audit recommended that the Harbour Board should formally receive and agree the annual accounts, and a business plan should be presented to the Harbour Board. The report states that the council's role as Harbour Authority has been clearly referenced in the annual accounts, and governance arrangements are being strengthened. A Harbour Business Plan will be presented to the Harbour Board at its October 2025 meeting.