The Governance and Audit Committee of Kent County Council met on Wednesday, 28 January 2026, to review the council's corporate risk register, discuss the performance of its wholly owned companies, and receive updates from external auditors. The committee was also scheduled to examine the statutory accounts of Kent County Council's wholly owned companies and consider governance arrangements for these entities.

Corporate Risk Register

The committee was scheduled to review the Corporate Risk Register, which is updated regularly to reflect new risks or changes in risk exposure. The register highlighted several key risks for Kent County Council (KCC), including the risk of significant adverse variance to the budget for savings and income (CRR0059), which remained at a High rating due to in-year forecast overspends, particularly in Adult Social Care and Health. The risk associated with the Delivery Against Safety Valve Agreement (CRR0068) was also increased to the maximum rating, as the council was no longer on target to eliminate its in-year deficit by the end of the agreement in 2027-28. Conversely, the risk related to SEND Delivery Improvement (CRR0067) was de-escalated to a 'target' residual level due to continued progress. A new draft risk concerning Local Government Reorganisation (CRR0069) was also included for consideration. The register detailed various risks, including those related to asset management and degradation (CRR0053), the sustainability of the social care market (CRR0015), cyber and information security resilience (CRR0014), and the future financial and operating environment for local government (CRR0009).

Performance of Wholly Owned Companies

The committee was to receive a review of the statutory accounts for Kent County Council's wholly owned companies for the year ending 31 March 2025. The report indicated that overall, the companies faced challenges including public sector budget constraints, financial pressures affecting schools, and increased competition. Commercial Services Kent reported a profit of £1.802 million on sales of £80.669 million, while Commercial Services Trading experienced a loss of £701,000. Joint ventures, such as Hampshire and Kent CS, showed profits, with sales of £39.802 million and a profit of £1.099 million. The report noted that KCC receives financial benefits through dividends from profitable companies and contributions from services managed on behalf of KCC by Commercial Services Kent. The dividend declared for 2024-25 was £5.5 million, and the contribution from core services was £4.5 million.

External Auditor's Progress Report

The committee was scheduled to receive an update from the external auditors, Grant Thornton, on their progress. This included information on the financial statements audit for Kent County Council for 2024/25, with the opinion signed on 4 November 2025, although a completion certificate was still pending the completion of Whole of Government Accounts (WGA) procedures. The auditors had also begun initial planning discussions for the 2025/26 audit, which was due to commence fieldwork at the end of January. The report also covered the Value for Money audit, which would assess risks in financial sustainability, governance, and the effective use of resources. The auditors' planned deliverables for 2025/26 included an Audit Plan, Audit Findings Report, Auditor's Report, and Auditor's Annual Report, all scheduled for completion by 30 November 2026. The report also touched upon sector updates, including a thought leadership report titled 'After the Backstop: Reset, recovery and reform in the audit of local authority accounts', which discussed the challenges and reforms needed in the local audit system.

Verbal Update on Committee Business

A verbal update on committee business was also scheduled, which typically includes information on ongoing actions and any new items relevant to the committee's work. This would have provided an opportunity for the committee to receive timely information on matters not covered in the formal reports.

Internal Audit Progress Report

An Internal Audit Progress Report was expected to be presented, although the report itself was to follow. This would have provided the committee with an overview of the internal audit activities undertaken, including findings and recommendations.

The meeting was scheduled to take place in the Council Chamber, Sessions House, County Hall, Maidstone.