The Corporate Governance Committee of Leicestershire County Council met on Friday 23 January 2026 to discuss a range of important financial and governance matters. Key topics included an update on the external audit of the 2024/25 financial statements, the proposed Treasury Management Strategy for 2026/27, and a review of the Council's risk management framework. The committee also considered changes to the Contract Procedure Rules and the Council's Modern Slavery Statement, alongside a report on whistleblowing concerns raised during the previous year.

External Audit of the 2024/25 Statement of Accounts, Annual Governance Statement and Pension Fund Accounts

The committee received an update on the external audit of the 2024/25 financial statements. The auditors, Grant Thornton UK LLP, anticipated issuing an unmodified opinion on the Council's financial statements, indicating that they give a true and fair view. However, the audit identified some unadjusted misstatements relating to the valuation of the Council's net pension liability and land and buildings, which were considered immaterial. Several disclosure amendments were also made, including a reclassification of pooled investments that increased the Council's usable reserves by £26.9 million. The auditors also noted a significant weakness in the Council's arrangements for financial sustainability due to a substantial deficit in the Dedicated Schools Grant (DSG). Recommendations were made regarding the management of off-ledger adjustments, care package allocations, and the review of partnership working arrangements.

Treasury Management Strategy Statement 2026/27 and Quarterly Treasury Management Report

The committee was presented with the proposed Treasury Management Strategy Statement for 2026/27, which outlines the Council's policies for managing its treasury management investments, prioritising security, liquidity, and investment return. The strategy also detailed the Minimum Revenue Provision (MRP) policy statement and the annual investment strategy. A quarterly report provided an update on treasury management actions for the quarter ending 31 December 2025. This report indicated that the Council operated within its treasury and prudential indicators, although the capital expenditure forecast for 2025/26 was higher than originally planned. The report also highlighted a higher than budgeted interest income due to forecast Bank of England base rate levels and higher than estimated average Council balances.

Risk Management Update

A report was presented on the Council's risk management arrangements. This included an update on corporate risks, the Risk Management Policy Statement and Strategy, the Insurance Policy, and Property & Occupants Risk Management. Key amendments to the Risk Management Policy Statement and Strategy were noted, reflecting the potential impact of government reorganisation and devolution plans, and continuing financial uncertainty. The Council's overall risk appetite was retained as 'open', indicating a willingness to consider all delivery options even with elevated risks. The report also detailed the work of the Property & Occupants Risk Management Group (P&ORMG), which addresses fire safety, occupants' safety, and terrorism risks across the Council's properties.

Global Internal Audit Standards in the UK Public Sector – Governance Documents

The committee received details about important governance documents required for conformance with Global Internal Audit Standards (GIAS) effective from 1 April 2025. These include an Internal Audit Charter, a self-assessment against CIPFA's Code of Practice for the Governance of Internal Audit in Local Government, and a new Internal Audit Strategy. The Head of Internal Audit Service (HoIAS) had conducted a provisional self-assessment, concluding good compliance but identifying areas for improvement, including developing an assurance framework and protocols for joint work with other organisations. A draft Internal Audit Strategy for January 2026 to March 2028 was also presented.

Changes to the Contract Procedure Rules

The committee was presented with forthcoming changes to the Contract Procedure Rules, aligning them with the Procurement Act 2023. Notable changes included updated financial thresholds, a requirement for prior approval for contracts longer than five years, and clarifications on preliminary market engagement and direct award procedures. The revised rules, if approved by the County Council, would come into force immediately and be published on the Council's internet and intranet sites.

Changes to the Council's Modern Slavery Statement

The committee was asked to approve a revised Modern Slavery and Human Trafficking Statement. This revision aimed to align with the Procurement Act 2023, updated risk assessment criteria, and enhanced due diligence for high-risk contracts. The Council voluntarily publishes this statement, despite not being a commercial organisation with a global turnover above £36 million, to demonstrate its commitment to tackling modern slavery within its operations and supply chains.

Whistleblowing Report

A summary of concerns raised under the Council's Whistleblowing Policy during the calendar year 2025 was presented. Two referrals were processed, one concerning allegations of financial irregularities within ESPO, which was investigated by internal audit and closed with no evidence of impropriety found. The second referral related to allegations of systematic food theft from the Food Court, facilitated by staff. A fact-finding investigation found nothing conclusive, and responsibilities were reaffirmed with staff. Minor updates to the Whistleblowing Policy were also noted, including references to the new Economic Crime and Corporate Transparency Act 2023 offence, clarity on co-worker detriment, updated officer contact details, and a new section on data protection and privacy.

The committee was asked to note the contents of this report and the proposed annual reporting cycle.

The meeting also included standard agenda items such as the minutes of the previous meeting, question time, and declarations of interest. The date of the next meeting was scheduled for Friday 27 March 2026.