The Governance Committee of the Isles of Scilly Council met on Thursday, 15 January 2026, to discuss proposed amendments to the Council's Standing Orders, review the Local Government and Social Care Ombudsman's annual letter, and consider progress on internal audits. The committee also reviewed the draft Annual Governance Statement for 2024-25.

Standing Orders

The committee was scheduled to consider proposed amendments to the Council's Standing Orders. These changes were intended to clarify procedures for decision-making regarding human resource matters pertaining to the Chief Executive Officer. The proposed amendments suggested that day-to-day human resource matters would be handled by the Head of Human Resources in consultation with a Senior Officer, while more significant matters would be referred to a panel of five Members. The report noted that these provisions would exclude matters relating to appointment, disciplinary action, or dismissal, which are already covered by existing Standing Orders. The recommendations were to approve the amendments to the Scheme of Delegation to take immediate effect.

Local Government and Social Care Ombudsman: Annual Review Letter 2024-25

The committee was scheduled to review the annual review letter from the Local Government and Social Care Ombudsman (LGSCO) for the period 1 April 2024 to 31 March 2025. The report indicated that the LGSCO had investigated three complaints concerning the Council during this period, none of which were upheld. These complaints related to the Council's policy on post-16 travel and accommodation, with investigations being concluded due to the commencement of court proceedings. The recommendation was for members to note the contents of the LGSCO's annual review letter.

Internal Audit Progress Report 2025/26

A progress report from Cornwall Council's Internal Auditors was scheduled for discussion. The report provided an update on internal audit work for the financial year to date and outlined proposed changes to the original Internal Audit Plan for 2025/26. Key areas of audit work included the Cultural Centre & Museum Project, Cyber Security, and Risk Management. The report noted that the audit of cyber security provided Reasonable assurance, with two issues raised concerning the absence of a designated IT officer and inadequate cyber security training. The review of risk management also provided Reasonable assurance, with findings related to improving integration with service-level risk management and the need for risk management training. Proposed changes to the audit plan included deferring NHS Integration to 2026/27, replacing Financial Systems with Budget Management and Rent Collection, and removing International Recruitment. The recommendations were for members to note the progress report and endorse the proposed changes to the Internal Audit Plan.

Draft Annual Governance Statement 2024-25

The committee was scheduled to review the draft Annual Governance Statement (AGS) for 2024-25. This statement is prepared in accordance with the Accounts and Audit Regulations 2015 and the CIPFA/SOLACE Framework: Delivering Good Governance in Local Government. The AGS assesses the Council's compliance with its local Code of Governance and the principles of good governance. The report highlighted that a significant governance issue identified during 2024-25 was the need for reviewing and updating policies and procedures. While some progress had been made, further action was planned for 2025-26, including updating policies on areas such as Information Governance, the Employee Code of Conduct, and the Complaints Policy. The report also noted that the external auditor's interim report for 2023/24 identified significant weaknesses in financial sustainability and recommended urgent action to address overspends within Adult Social Care, alongside reviewing Medium Term Financial Plan assumptions and rebuilding reserve balances. The recommendation was for the committee to approve the draft AGS as a final version for signing by the Chief Executive and Chairman.