The Audit and Governance Committee convened to discuss key reports and strategic documents. The committee accepted the External Audit Strategy Memorandum for 2024-25, reviewed the Internal Audit Progress Report 2025-26, and approved the Corporate Governance Working Group's Terms of Reference. Additionally, the committee noted the progress of actions within the Corporate Risk Register and received annual reports on formal complaints and code of conduct complaints, all aimed at enhancing the council's governance and transparency.

External Audit Strategy

The committee accepted the Audit Strategy Memorandum for the year ending 31 March 2025. The memorandum, from the council's external auditor Forvis Mazars, outlines the planned audit scope, approach, and timeline, with audit fieldwork scheduled for September and October 2025 and completion expected in November 2025. The report details the audit scope and approach alongside a timeline for the audit.

The memorandum sets the materiality threshold at £1.965m for the group financial statements and the single entity financial statements.

The Audit Strategy Memorandum also addresses the statutory backstop dates for local authority audits, and the work required to rebuild assurance following disclaimed opinions on the 2022/23 and 2023/24 financial statements.

Internal Audit Progress

The Audit and Governance Committee received an update on the Internal Audit Plan for 2025-26. The Internal Audit team provides independent and objective opinions on the council's control environment, risk management, and governance.

Stella Bacon, (Interim) Head of Legal & Governance (Monitoring Officer), told the committee that officers are collaborating with the Transformation Team to develop a format for member training and feedback forms.

The report noted that management actions are essential for addressing weaknesses, and officers have the option to disagree with management actions if they have valid operational reasons.

Corporate Governance Working Group

The committee approved the Terms of Reference for the Corporate Governance Working Group, ensuring the group operates within a recognised governance framework. The terms define the group's purpose, scope, and responsibilities, ensuring transparent and consistent operations aligned with the council's governance standards.

The Corporate Governance Working Group's objectives include:

• Reviewing and making recommendations on the council's governance framework.
• Advising on governance-related risks and opportunities for improvement.
• Ensuring alignment with statutory and regulatory requirements.
• Reviewing the effectiveness of member and officer roles and responsibilities.
• Supporting continuous improvement in decision-making and ethical standards.

Corporate Risk Management

The committee reviewed the Corporate Risk Management report for Quarter 1 of 2025-26, which provided an update on the current level of assurance against identified corporate risks. The Corporate Risk Register is a key component of the council's Risk Management Strategy and Framework¹, outlining fifteen key risks, including a newly added risk related to the delivery of Local Government Reorganisation (LGR).

Of the fifteen corporate risks, nine were rated as 'red' and six as 'amber'. The report detailed each risk, including its current status, potential impact, and mitigation measures.

Formal Complaints Annual Report

The committee received the Formal Complaints Annual Report for 2024-25, which summarised formal complaints and Ombudsman cases handled by the council. The report highlighted a 45% increase in complaints compared to the previous year, in line with a national trend.

The report also included details of Local Government & Social Care Ombudsman (LGSCO) complaints and the council's self-assessment of the Ombudsman Complaint Handling Code.

Key points from the report:

• The council received 306 complaints, a 45% increase from the 211 complaints received in 2023-24.
• 78% of complaints were made digitally.
• The Housing service received the most complaints (237).
• 92% of stage 1 complaints were responded to within 10 working days.
• The LGSCO received 10 complaints about the council, with no formal investigations finding fault by the council.

The report also detailed service improvements resulting from complaints, such as additional staffing in the Customer Experience Team and updates to systems for timely completion of works.

Code of Conduct Complaints

The committee received the Code of Conduct Complaints and Administration Annual Report for 2024-25, which summarised complaints about councillors. The report highlighted the council's commitment to high standards in public service and the application of fairness, proportionality, transparency, and impartiality.

Key statistics from the report:

• The council administered 35 Code of Conduct complaints.
• The majority of complaints were from councillors about other councillors.
• The report detailed the outcomes of complaints, including cases with no further action, informal resolutions, and ongoing investigations.

The report noted that while the Code of Conduct complaints procedure is accessible, most issues are resolved informally, with formal complaints being a last resort. The report also detailed the cost of investigations, with external investigation costs of £3,621.60 met from existing budgets.

Councillor Gillian Freeman left the meeting at 7:24pm during the discussion of this item and returned at 7:29pm.