The Governance and Audit Committee of Denbighshire County Council will be meeting to discuss a range of topics, including the Public Services Ombudsman for Wales annual letter, internal audit updates, capital budget processes, a proposed amendment to budget policy framework rules, and a draft local code of corporate governance. The committee will also be reviewing its forward work programme and receiving information on the annual corporate health and safety report and the compliance annual report.

Public Services Ombudsman for Wales Annual Letter and Complaints Report

The committee will be considering a report that summarises the Public Services Ombudsman for Wales (PSOW) Annual Letter for 2024-2025 and provides an overview of complaints received by Denbighshire County Council under the 'Your Voice' customer feedback policy during the same period.

The report notes that the council received 729 Stage 1 and Stage 2 complaints, a 155% increase on the previous year. A significant proportion of these complaints, 576 in total, related to the waste service and the implementation of the new recycling system. The report also indicates that the PSOW received and closed 98 complaints about Denbighshire County Council, making it the third highest local authority in Wales for complaints received, and the highest when compared to complaints received per 1,000 residents.

The report states that the PSOW made 10 recommendations to the council, relating to 6 actual complaints.

The report recommends that the committee considers the content of the report and identifies any areas that require action or further scrutiny.

Internal Audit Update

The committee will be considering a report updating them on Internal Audit's progress.

Since the last update, 12 internal audit reports have been completed, with 10 being awarded a high assurance rating. The report highlights challenges faced by Internal Audit, including whistleblowing complaints and a high amount of sickness.

The report includes a table outlining the progress of the Internal Audit Plan for 2025/2026, noting that 12% of reviews have been completed in year, 5% are at the draft stage, 12% are at the fieldwork stage, 30% are scoped, and 41% have not yet started.

The report recommends that the committee considers the report content and decides whether it needs further assurance on any of the audited areas to follow up progress with implementing the improvement action plans.

Corporate Purchasing Cards

The report pack includes a summary of an internal audit of Corporate Purchasing Cards from May 2025, which awarded high assurance. The audit identified effective governance arrangements, clear terms and conditions for card holders, and robust controls in place for the application approval process. However, the audit also found that some cardholders were not performing the reconciliation process within appropriate timescales, and not all purchases had supporting receipts.

Pupil Level Annual School Census (PLASC)

The report pack includes a summary of an internal audit of the Pupil Level Annual School Census (PLASC) from May 2025, which awarded high assurance. The audit found effective controls in place to ensure that the PLASC return is completed accurately and submitted within the agreed timescales.

Four Great Highways Levelling Up Fund (LUF)

The report pack includes a summary of an internal audit of the Four Great Highways Levelling Up Fund (LUF) from June 2025, which awarded high assurance. The audit found effective mechanisms in place for monitoring LUF projects, including an oversight board and internal programme board. However, the audit noted that the overarching programme governance team Terms of Reference are not up to date.

Homelessness Prevention Service

The report pack includes a summary of an internal audit of the Homelessness Prevention Service from August 2025, which awarded high assurance. The audit identified effective governance arrangements in place for the decision-making process in relation to homelessness, demonstrating compliance with The Housing Act 2014¹. However, the audit found that not all documents on the Open Housing software system are regularly updated.

Children and Communities Grant

The report pack includes a summary of a process review of the Children and Communities Grant from June 2025, which did not provide an assurance rating. The review identified effective processes and good working practices in place to ensure compliance with the terms and conditions of the grant. However, the review also found that written documentation of key processes should be introduced to strengthen business continuity, and that internal reporting mechanisms need strengthening.

Rhuddlan Town Council

The report pack includes a summary of an internal audit of Rhuddlan Town Council from May 2025, which awarded high assurance. The audit confirmed robust governance and financial controls remain in place, with an effective standard of record keeping.

Planning Applications

The report pack includes a summary of a process review of Planning Applications from August 2025, which did not provide an assurance rating. The review identified sufficient controls in place to ensure officers are complying with legislation such as the Town and Country Planning Act² and Planning Act 1990³. However, the review also noted a lack of resilience due to a decrease in the staff structure and an excessive backlog of planning applications.

Corwen Platform Canopy Levelling Up Fund (LUF)

The report pack includes a summary of an internal audit of the Corwen Platform Canopy Levelling Up Fund (LUF) from July 2025, which awarded high assurance. The audit found effective mechanisms in place for monitoring the projects, and that the sub-project is contributing towards the council's sustainable development principles and supporting the council to achieve carbon net zero targets by 2030.

Canolfan Llys Owain Levelling Up Fund (LUF)

The report pack includes a summary of an internal audit of the Canolfan Llys Owain Levelling Up Fund (LUF) from August 2025, which awarded high assurance. The audit found effective mechanisms in place for monitoring the sub-project, and that it is contributing towards the sustainable development principles and supporting the council to achieve its carbon net zero targets by 2030.

Clwydian Range and Dee Valley National Park

The report pack includes a summary of an internal audit of the Clwydian Range and Dee Valley National Park from July 2025, which awarded high assurance. The audit identified effective controls continue to be in operation for monitoring income and expenditure, and that the service is working towards the sustainable development principles and supporting the council to achieve carbon net zero targets by 2030.

Libraries

The report pack includes a summary of an internal audit of Libraries from August 2025, which awarded high assurance. The review identified effective arrangements were in place for the decision-making process for the reduction of library hours. However, the review also found that it would be beneficial to have had working documents in place for recording and monitoring purposes, as well as strengthening business continuity arrangements.

Corwen Town Centre and Green Lane Car Park

The report pack includes a summary of an internal audit of the Corwen Town Centre and Green Lane Car Park from July 2025, which awarded high assurance. The audit found effective mechanisms in place for monitoring LUF projects, and that the project is contributing towards the council's sustainable development principles and supporting the council to achieve carbon net zero targets by 2030.

Housing First Follow Up

The report pack includes a summary of an internal audit follow up of Housing First from April 2025, which awarded high assurance. Excellent progress has been made in completing the proposed recommendations/actions.

Capital Budget Processes

The committee will be considering a report detailing the council's processes for setting its annual capital budget and the role of the Governance and Audit Committee in that process.

The report sets out the financial responsibilities of the full council, cabinet, Head of Finance and Audit, and other chief officers for the development and monitoring of the Capital Plan. It also outlines the role of the Capital Scrutiny Group in reviewing business cases for capital projects.

The report notes that capital budgets for 2024/25 and 2025/26 recognised the need to limit the impact of the Capital Plan on the revenue budget, and that the council has faced significant financial pressures and capacity issues within the Finance Team.

The report proposes that the proposed Capital Plan be appended to the Treasury Management agenda item as context, and that the annual Capital Strategy be brought to the Governance and Audit Committee at its January meeting as part of the treasury management agenda item.

Proposed Amendment to Budget Policy Framework Rules

The committee will be considering a report on a proposed amendment to the rules of procedure in respect of the setting of the council's revenue budget.

The report notes that the council's constitution provides for general rules of procedure at council meetings, including provision for the amendment of recommendations/motions. However, the constitution is currently silent as to the process by which amendments to the budget may be considered at council.

The report proposes that a new paragraph be inserted into the budget framework rules in the constitution, requiring three working days' notice to be given of any amendment that a member wishes to propose at the meeting at which the council's budget is to be adopted. The report also proposes that a member proposing an amendment would be required to demonstrate how income and expenditure could be balanced in order to accommodate the amendment.

The report recommends that the committee considers the draft amendment and recommends its adoption by council.

Draft Local Code of Corporate Governance

The committee will be considering a report on the draft local Code of Corporate Governance.

The report notes that the council is committed to good corporate governance, which can be expressed as doing the right things for the right people in the right way which is timely, inclusive, open, honest and accountable. The draft code is based on 'Delivering Good Governance in Local Government Framework 2016', issued jointly by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE).

The report recommends that the committee considers the content of the draft code and makes any suggestions for amendment prior to it being presented to cabinet for adoption.

The draft code sets out how the council adheres to core principles including:

• Behaving with integrity, demonstrating strong commitment to ethical values and respecting the rule of law.
• Ensuring openness and comprehensive stakeholder engagement.
• Defining outcomes in terms of sustainable, economic, social and environmental benefits.
• Determining the interventions necessary to optimise the achievement of intended outcomes.
• Developing the council's capacity, including the capability of its leadership and the individuals within it.
• Managing risks and performance through robust internal control and strong public financial management.
• Implementing good practices in transparency, reporting and audit to deliver effective accountability.

The draft code also recognises the importance of the seven 'Principles of Public Life' (the 'Nolan Principles')[^1] and the council's own agreed values and principles.

Governance and Audit Committee Work Programme

The committee will be considering its forward work programme.

Annual Corporate Health and Safety Report

The committee will receive the Annual Corporate Health and Safety Report for 2024/25 for information.

The report provides an overview of health and safety activities between 1 April 2024 and 31 March 2025, including H&S committee/group support, training, monitoring, and reactive work following reported accidents. The report also introduces a new means of accident/incident performance measurement, the Accident Incidence Rate⁴.

The report notes that the total recorded accidents and incidents has increased to 1656, with the three highest reporting areas being Adult Social Care and Homelessness, Education, and Highways & Environmental Services.

Compliance Annual Report

The committee will receive the Compliance Annual Report 2025 for information.

The report covers the compliance performance across the corporate portfolio over the last 12 months, detailing the legal responsibilities and performance in areas such as gas servicing, electrical testing, asbestos re-inspection, legionella, and fire.