The Transformation and Assurance Board was scheduled to discuss a comprehensive action plan designed to address statutory recommendations and significant weaknesses identified by EY. The meeting was also set to consider the strategic direction for the council's future improvement work.

Mobilising Action Plan to Address EY Statutory Recommendations and Significant Weaknesses

A significant portion of the meeting was dedicated to reviewing the mobilisation plan aimed at rectifying issues highlighted in an EY Value for Money Report. This plan is structured around four workstreams: Financial Management and Accountability, Audit, Investigations and Assurance, Procurement and Contract Management, and BVI, Core Services and Capacity.

Financial Management and Accountability

This workstream addresses Statutory Recommendation 1, concerning Arrangements for reliable and timely statutory financial reporting, and a significant weakness identified in the Annual Governance Statement (AGS). The report pack indicated that the AGS was considered by EY to be not independent, not sufficiently honest, and not aligned with the evidence. The proposed EY solution included reassessing roles and responsibilities for financial reporting and ensuring sufficient audit evidence. The council's response involved developing a new Target Operating Model and refining responses to audit recommendations. Responsibility for the AGS's tone, content, and substance was noted as now resting with Jonathan Lloyd, Strategic Director, Change & Improvement. Key planned work includes clarifying the AGS process and embedding CIPFA-compliant governance by 25 May 2026, and closing the 2024/25 accounts with strengthened year-end controls by 30 June 2026.

Audit, Investigations and Assurance

This workstream focuses on Statutory Recommendation 2, relating to the Sound System of Internal Control, and Statutory Recommendation 4, concerning the Effectiveness of the Council's Process for Conducting Internal Investigations. EY identified pervasive weaknesses in its internal control environment and ineffective and inconsistent arrangements for conducting internal investigations. The EY solutions proposed developing an action plan for audit recommendations and reviewing the internal investigations team's structure and resources. The workstream also addresses significant weaknesses in Arrangements to Manage Risks Effectively and the Effectiveness of the Internal Audit Function. EY noted a misalignment between the Head of Internal Audit's assurance opinion and the scale and seriousness of known risks, control failures and external findings. Planned work includes aligning the Internal Audit function with EY expectations by 30 June 2026 and strengthening the investigations function by the same date. The effectiveness of the Audit Committee was also discussed, with EY suggesting training for members and a review of committee membership.

Procurement and Contract Management

This workstream addresses Statutory Recommendation 3, focusing on Contract Management & Procurement, and a significant weakness in Arrangements to Manage Risks Effectively, specifically concerning weak controls over procurement waivers. EY identified persistent weaknesses in the Council's contract management and procurement arrangements. The EY solution involved a detailed review of these arrangements and implementing an action plan. The council's response indicated this workstream was 84% complete, with a redesigned procurement service and strengthened payment controls. Key planned work includes the approval and implementation of the Council's Procurement Strategy by 1 May 2026 and delivering contract management training across the organisation by 14 May 2026.

BVI, Core Services and Capacity

This workstream addresses significant weaknesses identified in the Best Value Inspection, Social Housing, and the capacity of the Golden Triangle to respond to the council's challenges. EY highlighted a systemic failure in governance, leadership and performance management leading to the Secretary of State's intervention under the Best Value Duty. Regarding social housing, EY noted a significant governance failure evidenced by delayed identification of regulatory breaches affecting tenant safety. The capacity of the Golden Triangle was identified as a weakness due to instability and lack of capacity, particularly following the departure of the Section 151 Officer. The council's response indicated that a Continuous Improvement Plan is in place for the Best Value Inspection and a designated programme has been launched for social housing. An interim s151 officer was appointed to join in early March. Key planned work includes approving the Business Plan for social housing improvement by 1 March 2026 and addressing EY concerns regarding the Golden Triangle by 30 June 2026.

Setting Ourselves Up for the Next Phase of Improvement Work

Jon Lloyd, Strategic Director, Change & Improvement, was scheduled to lead a discussion on how the council can prepare for its next phase of improvement work. Kim Bromley-Derry was also expected to outline next steps for the Transformation and Assurance Board.