The Governance Scrutiny Group is scheduled to meet on Thursday, 25 September 2025, to discuss several key reports, including the Internal Audit Progress Report, the External Audit Completion Report, and the Statement of Accounts. Members will also consider the Risk Management Progress Report, the Going Concern Assessment, and the Capital and Investment Strategy Update. The meeting will also cover the group's work programme.

External Audit Findings

The Governance Scrutiny Group will be presented with the External Audit Completion Report from Forvis Mazars, summarising the key conclusions from the audit process for the 2024/25 financial year. The report includes comments on the Statement of Accounts and their quality. The report pack includes a draft management representation letter.

The report pack notes that Forvis Mazars have substantially completed the audit, but that some matters remain outstanding, including:

• IT General Controls Testing
• Income Testing
• Debtors Testing
• Cash and Bank Testing
• Pensions

The report pack says that Forvis Mazars do not expect these outstanding matters to require modification of the audit opinion.

The report pack says that high-risk areas for this audit were:

• management override of controls due to risk of fraud
• land and buildings due to the complexity of valuation and number of assumptions and judgements
• IFRS16¹ a newly applicable accounting standard for 2024/25
• pensions valuations due to the high degree of estimation and uncertainty.

The report pack says that Forvis Mazars identified two unadjusted misstatements relating to the implementation of the new IFRS16 leasing standard, and that these misstatement amount to £0.505m.

The report pack says that Forvis Mazars did not identify any significant deficiencies in the Council's internal controls.

Annual Audit Findings

The Governance Scrutiny Group will be presented with the Auditors Annual Report from Forvis Mazars, summarising progress on the audit process for the 2024/25 financial year. The report reiterates the key conclusions of the Audit Completion Report on the 2024/25 Accounts. The report also provides commentary on the Council's arrangements to secure economy, efficiency and effectiveness in its use of resources.

The report pack says that Forvis Mazars have completed their work on the Council's arrangements to secure economy, efficiency and effectiveness in its use of resources, and that they have not identified any significant weaknesses in arrangements or made other recommendations.

Statement of Accounts

The Governance Scrutiny Group will be asked to approve the Statement of Accounts for 2024/25. The report pack includes the Annual Governance Statement.

The report pack notes that the audit is substantially complete and there are currently no matters which would require a modification to the audit opinion.

The report pack also notes the following salient points from the Statement of Accounts 2024/25:

• Net Revenue surplus of £1.933m mostly as a result of additional interest
• Overall Net Budget Variance of £2.962m surplus including additional grants, Nottinghamshire Business Rates Pool surplus as a result of growth in Business Rates £1.029
• Transfer to reserves of £4.742m
• Council overall Net Worth has increased by £12.1m to £124.26m

Internal Audit Progress

The Governance Scrutiny Group will be presented with the Internal Audit Progress Report Q1 prepared by BDO, the Council's Internal Auditors.

The report reflects the progress made for the year against the annual Internal Audit programme, any recommended changes to the programme, along with any significant recommendations with regard to the audits completed during this period.

The report pack highlights the completion and issuing of two reports from the 2025/26 Internal Audit Annual Plan:

• The Council Tax audit received a substantial rating for both Design and Effectiveness with two low level findings
• The Streetwise Management audit received a Moderate rating for Design and Substantial rating for Effectiveness with two low and one medium level findings

The report pack notes that at the request of the S151 Officer², BDO have conducted a separate advisory review specifically relating to the licensing of two premises within the Borough. Following discussions between BDO, Finance and Licensing Heads of Service, it was concluded that on a risk basis, the internal audit plan should not be amended for 2025/26, with a review of licensing proposed to be included in the plan for 2026/27.

Risk Management

The Governance Scrutiny Group will receive a Risk Management - Update report, providing a summary of risks in the Council's Risk Registers that have changed, been removed or new risks that have been identified as a result of management review throughout the period. The report pack includes the Council's existing Risk Registers containing corporate, operational risks and opportunity risks.

The report pack notes that there are currently 36 corporate risks and 21 operational risks on the risk register, as well as 3 opportunity risks.

The report pack notes that one new risk has been added since the last meeting:

• OR_FCS17 Loss of Housing Benefit subsidy - New Supported Accommodation provided by non-Registered Provider (Charity / CIC's) – loss of HB subsidy

The report pack notes that three risks have been removed since the last meeting:

• CRR_DEG10 Flintham Compulsory Purchase Order (CPO)
• CRR_FCS31 Borrowing costs
• OPP_DEG01 Crematorium

Going Concern

The Governance Scrutiny Group will be presented with the Going Concern Assessment 2024/25.

The report pack notes that the concept of a 'going concern' assumes that an authority, its functions and services will continue in operational existence for the foreseeable future, and that the Council is required to produce a separate report confirming the Council's position with regards to its Going Concern status.

The report pack also notes that Local Government Reorganisation (LGR) plans announced by the Government do not affect the Council's position as a going concern.

Capital and Investment Strategy

The Governance Scrutiny Group will be presented with the Capital and Investment Strategy Q1 Update.

The report pack notes that the Capital and Investment Strategy for 2025/26, outlines the Council's capital and investment priorities as follows:

• Security of capital
• Liquidity of investments; and
• Optimising yield earned on investments (cash and property).

The report pack notes that the Council budgeted to receive £1,434,900 in investment income in 2025/26, and that actual interest earned to 30 June 2025 totalled £367,873 with total receipts for the year expected to be approximately £1,471,500.

The report pack notes that the Council achieved an average interest rate of 4.62% in quarter 1, and that the average level of funds available for investment purposes during the quarter was £88.445m.

The report pack notes that the original Capital Programme for 2025/26 was £8.344m, with £4.308m carry forwards and other adjustments of £0.930m giving a current budget of £13.582m, and that the projected outturn is £12.901m, resulting in an estimated underspend of £0.681m.

Work Programme

The Governance Scrutiny Group will be presented with the Work Programme - 25 Sept 2025 for information.

The report pack notes that the following items are scheduled for the next meeting on 4 December 2025:

• Internal Audit Progress Report
• Annual Audit Letter and Value for Money Conclusion
• Capital and Investment Strategy Update
• RIPA Review³