The Audit and Governance Committee of Wiltshire Council met on 14 October 2025, and addressed a range of issues including internal and external audit reports, the council's statutory recommendation, anti-fraud activity, and the governance of the Stone Circle companies. The committee voted to recommend that Full Council approve a response to a statutory written recommendation from external auditors, and also agreed to receive biannual updates on the Stone Circle companies.

Here's a more detailed look at the key discussion points:

Statutory Recommendation from External Auditors

The committee discussed a statutory written recommendation from Grant Thornton, the external auditors, regarding delays in the production of the council's financial statements. The recommendation, made under Section 24 of the Local Audit and Accountability Act 2014, urged the council to address capacity and capability constraints hindering timely publication of draft financial statements.

The external auditors, led by Barrie Morris, Partner and PSA Head of Audit Quality at Grant Thornton, highlighted that the council had missed statutory deadlines for publishing draft accounts, and that a key recommendation from the previous Auditor's Annual Report had not been sufficiently implemented.

The committee discussed the management's response to the recommendation, which acknowledged the delays and outlined steps being taken to address the issues, including bringing in additional experienced agency support and reviewing in-house resources.

Members requested that the management response include a commitment to provide regular progress reports and updates to the committee. Councillor Philip Whitehead proposed an amendment to the management response, which was seconded by Councillor Ashley O'Neil, to include a timetable for updates on progress towards the audit plan for 2024/25 and the 2025/26 financial statements.

The committee then:

• Accepted the external auditor's statutory recommendation.
• Recommended that Full Council approve the management response to the statutory written recommendation, with the addition of a commitment to provide a timetable to update the Audit and Governance Committee on progress.

External Audit Progress Report

Andrew Davies, External Audit Manager for Grant Thornton, presented the external audit progress report. He noted delays in receiving the financial statements, and that a full audit would not be possible by the next backstop deadline of 27 February 2026. Grant Thornton would focus on revenue transactions, income and expenditure, and the group accounts.

Members raised concerns about not looking at asset valuations, and the potential for a limited assurance qualification on the audit. Grant Thornton explained that a disclaimer opinion was expected due to the lack of previous audits and uncertainty regarding opening balances.

Lizzie Watkin, Corporate Director of Resources (S151 Officer), explained the history of the issues, dating back to misstatements in the 2015/16 Statement of Accounts. She highlighted the team's focus on meeting deadlines and working with Grant Thornton to complete the audit.

Wiltshire Pension Fund Audit Findings Report 2024/25

Andrew Davies also presented the Wiltshire Pension Fund Audit Findings Report for 2024/25. The audit was substantially complete, with no significant issues identified. The audit opinion would be modified on an 'except for' basis due to prior year balances issues.

Members queried significant deficiencies identified against Oracle¹, and requested a follow-up at the next meeting.

Internal Audit Update Report

Angie Hooper, Interim Assistant Director at SWAP², presented the internal audit update report, noting an ongoing reasonable opinion. SWAP reported that all management actions had been implemented for the Landlord Compliance Fire Safety – General Fund Assets audit, mitigating the significant corporate risk.

Members queried the limited assurance average opinion against the lack of suitable governance processes risk. Perry Holmes, Director Legal and Governance / Monitoring Officer, stated that this was a focus of his attention.

Stone Circle Annual Governance Update

Perry Holmes presented the Stone Circle annual governance update. Stone Circle is the name given to Wiltshire Council's wholly owned companies, which include Stone Circle Housing Company and Stone Circle Development Company. Stone Circle Housing purchases and rents properties, while Stone Circle Development builds and sells properties.

The report set out the frameworks in place to ensure good governance of the council's companies. Members suggested that the Audit and Governance Committee should have more of a role in overseeing the financial implications and risks associated with the companies.

The committee agreed to receive biannual updates on the Stone Circle companies, and to invite the chairman and non-executive director of Stone Circle to attend the committee for those updates.

Anti-Fraud, Corruption and Bribery Activity Update

Lizzie Watkin presented the anti-fraud activity update, highlighting the council's commitment to tackling fraud, bribery, and corruption. She noted that 14 allegations had been received in the previous two years, and that the whistleblowing framework was working effectively.

Forward Work Programme

The committee discussed the forward work programme and agreed to include the following additions:

• A formal report from the S151 officer at the January 2026 meeting on progress against the audit for 2024/25 and actions for the Statement of Accounts 2025/26.
• Formal responses from the S151 officer to the suggested questions contained in Grant Thornton's update report at the January 2026 meeting.
• The Auditors Annual Report from Grant Thornton should be added to the January 2026 meeting.
• A report on the governance procedures around the use of Artificial Intelligence (AI) by the council.
• A further update on the ICT network boundary defences management actions.

ICT Network Boundary Defences

Mark Tucker, Director of Information & Communications Technology (ICT), gave an update on progress of the management actions following the ICT Network Boundary Defences audit. The action plan was substantially complete, and work on outstanding actions was on course to finish either on, or ahead of schedule by Q1/Q2 the following year.