The Rother District Council Audit Committee is scheduled to meet on Monday 29 September 2025 to review the council's financial activities and internal policies. The committee will be examining the treasury management performance, internal audit reports, and the implementation of global internal audit standards. Members will also look at proposed amendments to the finance and procurement rules, as well as a revised policy for handling vexatious complaints.

Treasury Management Update

The committee will receive an update on the council's treasury management activities for the first quarter of 2025/26. According to the Treasury Management Update - Quarter 1 202526, the council's total investments as of 30 June 2025 were approximately £23.3 million, with £15.3 million in short-term call accounts and £8 million in property funds.

The report also notes an investment of £16.9 million in Rother DC Housing Company, an increase of £7.83 million since March 2025. The Housing Company is forecast to require further borrowing of £9.008 million during 2025/26.

The council's investments generated interest income of £271,000 during the first quarter, excluding interest from the Rother DC Housing Company. The report indicates that the council is exploring money market funds (MMF) to benefit from higher rates.

The Treasury Management Update - Quarter 1 202526 states that the value of outstanding loans as of 30 June 2025 was £36.2 million, an increase of £7.4 million since the start of the year. The report also notes that officers will continue to use internal balances where possible to minimise borrowing costs.

The report pack includes several appendices providing further details:

• Appendix A for Treasury Management Update - Quarter 1 202526 details the investments portfolio.
• Appendix B for Treasury Management Update - Quarter 1 202526 outlines the capital financing requirement and borrowing.
• Appendix C for Treasury Management Update - Quarter 1 202526 lists prudential indicators¹.
• Appendix D for Treasury Management Update - Quarter 1 202526 details the performance of property investment strategy (PIS) properties.

Internal Audit Report

The Audit Committee will be considering the Internal Audit Report to 30 June 2025, which provides an overview of internal audit activity during the first quarter of 2025/26. According to the report, two audit reviews were completed: one on creditors, which provided substantial assurance, and another, a follow-up on estates income, which only provided limited assurance.

The report notes that an informal consultancy review of the council's interim workforce found that the council spent over £2 million on agency workers and consultants in 2024/25. The report states that advisory recommendations were made to improve control over appointments and ensure value for money.

The report also includes a summary of progress on implementing audit recommendations made in previous periods.

Appendices to the report provide further details:

• Internal Audit Report - Appendix A contains audit reports issued during the quarter.
• Internal Audit Report - Appendix B summarises progress on recommendations made up to 31 March 2025.

Global Internal Audit Standards

The committee will receive a progress update on the implementation of the Global Internal Audit Standards (GIAS). According to the Global Internal Audit Standards Progress Update, six out of nine action points have been completed to date. The remaining three action points are yet to commence.

The report also notes that the Audit Manager, Gary Angell, must discuss the essential conditions for governing the internal audit function with committee members and senior management.

The report pack includes two appendices:

• Appendix A - Action Plan provides a progress update on the action plan for 2025/26.
• Appendix B - Essential Conditions outlines the essential conditions for governing the internal audit function.

Finance and Procurement Rules

The committee will consider proposed amendments to the council's constitution relating to finance and procurement procedure rules. According to the Finance and Procurement Rules - Amendment to the Constitution, the proposed amendments relate to recommendation 2.2 of the Capital Programme audit, which suggested updating the Financial Procedure Rules (FPRs) on capital overspends.

The report also notes that the Procurement Act 2023 was introduced on 24 February 2025, replacing previous EU-based guidance. The proposed amendments to the procurement procedure rules reflect the requirements of this new legislation.

The report pack includes two appendices:

• Appendix A contains proposed updates to Part 4-6 of the Finance Procedure Rules.
• Appendix B contains revised procedures and guidance for Part 4-7 of the Procurement Procedure Rules.

Vexatious Complaints Policy

The committee will review and consider a revised Vexatious Complaints Policy. According to the report, the revised policy aims to ensure a transparent and fair framework for handling complaints that are persistent, unreasonable, or malicious.

The report notes that the current policy lacks clarity on activation thresholds and how vexatious complaints, particularly those made via Freedom of Information (FOI) requests, are escalated to senior management.

The report pack includes two appendices:

• Appendix A for Vexatious Complaints Policy contains the revised Vexatious Complaints Policy.
• Appendix B Current Vexatious Complaints Policy contains the current Vexatious Complaints Policy (revised 2022).

Other Business

The committee will also review its work programme for 2025-2026, as detailed in the Work Programme.