The Audit and Standards Advisory Committee convened to discuss several key reports, including updates on the council's strategic risks, housing compliance, and the performance of its housing companies. The committee also reviewed the interim auditor's annual report and discussed the forward plan for the upcoming year.

Strategic Risk Register

The committee received an update on the council's strategic risks, as detailed in the Strategic Risk Report. Darren Armstrong, Deputy Director Organisational Assurance and Resilience, presented the report, which highlighted that most risks remained stable since the previous update in March 2025. However, the risk relating to non-compliance with statutory housing duties had increased from a score of 10 to 25, prompting concern among the committee members.

Other key risks identified in the register included:

• Lack of supply of affordable accommodation
• Cost of living crisis
• Increase in Dedicated Schools Grant High Needs Block Deficit
• Risks to community cohesion
• Climate and ecological emergency
• Financial resilience and sustainability

The committee noted the report and its contents.

Housing Compliance

The committee received an update on the self-referral to the Regulator of Social Housing (RSH), following the discovery of incorrectly updated compliance software. Spencer Randolph, Director of Housing Services, presented the report, which detailed that up to 12,500 fire actions had been wrongly updated to indicate that works had been completed, but were missing supporting evidence. As a result of these issues, the RSH published a regulatory judgement in May 2025, grading the service C3, indicating serious failings and the need for significant improvements.

In response to the situation, the council appointed health and safety advisors to support ongoing improvement work. An independent forensic audit was also carried out, which validated the referral to the regulator and confirmed significant systemic issues, particularly in data management, governance, and policy implementation.

The committee noted the contents of the report.

Performance and Management of Housing Companies

The committee received an update on the performance and management of i4B Holdings Ltd (i4B) and First Wave Housing Ltd (FWH). The report, presented by Natoyah Vincent, Strategy & Delivery Manager, provided assurances on the governance and oversight arrangements in place for the housing companies. It outlined the mechanisms through which the council monitors performance, risk, and compliance.

Key discussion points included:

• The absence of updated financial reporting for 2025/26, which prompted a request for a report to be provided by the next board meeting.
• Persistent issues with void properties, which were being addressed through targeted work and enhanced board oversight.
• Progress of the 2025/26 acquisition programme, with i4B having identified and made offers on 16 properties against a target of 15.

The committee noted the governance arrangements and oversight mechanisms in place for i4B and FWH.

Interim Auditor's Annual Report

The committee received the Interim Auditor's Annual Report 2024-25 from Grant Thornton. The report provided a commentary on the council's value for money arrangements, assessing financial sustainability, governance, and improving economy, efficiency, and effectiveness.

Key findings from the report included:

• Significant weaknesses in medium-term financial planning and the identification of a pipeline of recurrent savings and income generation schemes.
• A need for effective implementation of the property strategy and for the Dedicated Schools Grant (DSG) deficit recovery strategy and strengthened Housing Revenue Account (HRA) financial planning to be reflected in the Medium-Term Financial Strategy (MTFS).
• A significant weakness related to the Regulator of Social Housing's report that the council's housing stock does not comply with the Quality and Safety standard.

The committee noted the contents of the report.

Standards Report

The committee received an update on standards, including gifts and hospitality, member training, and a recent complaint concerning breaches of the Member's Code of Conduct. The report noted that one councillor had declared gifts and hospitality received, with a low value. It was also reported that most members had completed refresher mandatory training, but four members still needed to complete their Data Protection training. The report also highlighted a standards decision made by Cornwall Council, where a former councillor failed to correctly register his disclosable pecuniary interest¹. Finally, the report provided a summary of the government's announcement of the Ethics and Integrity Commission, which will replace the Committee on Standards in Public Life.

Forward Plan and Work Programme

The committee considered and noted its work programme for the 2025-26 municipal year, as detailed in the 2025-26 ASAC Forward Plan Work Programme.