The South Hams Audit and Governance Committee are scheduled to meet to discuss the audit completion report from Bishop Fleming, the audited statement of accounts and annual governance statement for 2024/25, and the progress on the 2025/26 internal audit plan. They will also be reviewing treasury management, internal audit recommendations, and the committee's own self-assessment action plan. The meeting will also include an update from the Freeport Working Group.

Audited Statement of Accounts and Annual Governance Statement 2024/25

The committee will be asked to approve the audited Annual Statement of Accounts 20242025.pdf and Annual Governance Statement 202425.pdf for the financial year ending 31 March 2025. The report pack includes a recommendation to approve the wording of the Letter of Representation¹ and to give delegated authority to the Section 151 Officer² (Director of Finance) in consultation with the Chairman of the Audit and Governance Committee, to jointly sign the Audited Accounts at a date after the meeting, if the Devon Pension Fund assurance letter has not been issued by the date of this Committee meeting.

The report pack states that the 2024/25 Audit has identified four disclosure changes to the draft accounts:

• Note 28 – Officers' remuneration above £50,000
• Note 12 – Property, plant and equipment
• Note 32 – Capital expenditure and capital financing
• Note 6 – Expenditure and income analysed by nature

The report pack states that these changes have been reflected in the audited accounts.

The report pack also includes the Appendix D Summary Accounts 202425.pdf, described as a user-friendly document for the public and businesses to understand the council's financial position for 2024/25.

Bishop Fleming - Audit Completion Report

The committee will consider the Bishop Fleming - Audit Completion Report.pdf. The report pack indicates that this report gives a green RAG rating on all areas of the audit. The report pack also quotes Bishop Fleming as stating in the report that:

The statement of accounts produced were of a high standard with significant variances and changes clearly explained to users of the financial statements.

Progress on the 2025/26 Internal Audit Plan

The committee will be asked to note the Progress on the 202526 Internal Audit Plan.pdf. The report pack includes a table detailing the assurances provided on completed 2024/25 audits:

The report pack also states that, as at 1st October 2025, the Internal Audit Team were working on the following audits and were at various stages of completion:

Treasury Management Quarter 1 Report

The committee will be asked to endorse the contents of the Treasury Management Quarter 1 Report.pdf. The report pack states that, to date, the Council has slightly outperformed the industry benchmark by 0.05%, achieving a rate of return of 4.36% against the Sterling Overnight Interbank Average rate (SONIA) of 4.31%.

The report pack includes a forecast from the Council's treasury advisor, MUFG Corporate Markets, and states that the forecast has proved robust, setting out a central view that short and long-dated interest rates will start to fall once it is evident that the Bank of England has been successful in squeezing excess inflation out of the economy, despite a backdrop of stubborn inflationary factors.

Internal Audit Recommendations Tracker

The committee will be asked to note the progress of Internal Audit recommendations, as set out in the Internal Audit Recommendations Tracker.pdf. The report pack states that, since 2022, 656 recommendations made by Internal Audit have been due for completion.

Action Plan - Self-Assessment of the Audit and Governance Committee

The committee will be asked to consider the Action Plan Self-Assessment of the Audit and Governance Committee.pdf. The report pack includes a recommendation for the committee to consider the Terms of Reference for the Committee in Appendix A Suggested Terms of Reference for the Audit and Governance Committee.pdf and make a recommendation to Full Council to adopt the updated Terms of Reference within the Council's Constitution. The report pack also includes a recommendation for the committee to consider the CIPFA Skills Matrix and consider adopting this for Audit and Governance Committee Members going forward, and to agree to offer tailored training plans for Audit and Governance Committee Members as part of the Council's Member Learning and Development Plan.

Committee Sponsored Task and Finish Groups and/or Working Group Updates

The committee is scheduled to receive a verbal update on the work of the Freeport Working Group. The Plymouth and South Devon Freeport is a public-private partnership aiming to drive growth and investment in the region.

Audit & Governance Committee Workplan 2025/26

The committee will be asked to approve its Workplan for the remainder of the 2025/26 municipal year, as presented in Appendix A Latest Committee Workplan 202526.pdf.