The Audit and Standards Committee of Stroud Council met on Tuesday, 24 March 2026, to review the council's financial performance, risk management, and internal audit progress. The committee approved the revised Unacceptable Customer Behaviour Policy and delegated authority for minor changes to the Strategic Director of Resources. They also approved the Internal Audit Charter and Code of Ethics for 2026/27, the Internal Audit Strategy for 2026-27, and the Quality Assurance and Improvement Programme (QAIP) 2026/27. The Draft Internal Audit Plan for Quarters 1 and 2 of 2026-27 was also agreed. The committee accepted the progress against the Internal Audit Plan 2026-27, accepted the assurance opinions provided on the council's control environment, and noted the number of open recommendations. They considered and commented on the Counter Fraud and Enforcement Unit Report and approved and adopted the revised Counter Fraud and Anti-Corruption Policy, delegating authority for future minor amendments to the Section 151 Officer. The committee recommended to Council the approval of the Annual Treasury Management Activity report and the actual Prudential Indicators report for the financial year ended 2025-26. They approved the Annual Governance Statement for 2025/26 and noted that progress against the 2026/27 action plan would be presented in six months. The unaudited Statement of Accounts for 2025/26 was approved.

External Audit Plan

The committee received an update from external auditors Bishop Fleming regarding their audit plan. Alex Walling, the Key Audit Partner, presented the plan, outlining the scope and timing of their work for the year ending 31 March 2026. The audit will focus on the financial statements, ensuring they give a true and fair view, and will also assess the council's arrangements for economy, efficiency, and effectiveness in its use of resources. Significant risk areas identified include management override of controls, valuation of land and buildings, and the valuation of the pension fund net liability. The audit materiality level was set at 2% of gross expenditure, equating to £1,911,000.

3rd Quarter Treasury Management Activity Report 2025-26

Maxine Bell, Senior Accounting Officer, presented the report on treasury management activity as at 31 December 2025. The report detailed the council's investment portfolio, borrowing strategy, and compliance with treasury and prudential limits. The council's total investments as of 31 December 2025 were £54.721m, generating £1.677m in interest at an average return of 4.13%. The council's borrowing stood at £100.717m against a capital financing requirement of £147.112m, indicating the council remained under-borrowed. The report also noted that the Lothbury Property Fund had terminated, and the Hermes Property Fund had also terminated, with repayments received.

Standing Items

Strategic & LGR Risk Register Updates

The committee reviewed the updated Strategic Risk Register, which detailed various risks facing the council, including high inflation impacting budgets, information governance compliance, failure to develop a balanced budget, emergency planning, recruitment and retention of staff, and risks associated with Local Government Reorganisation (LGR). The LGR Risk Register highlighted concerns around programme delivery failure, workforce uncertainty, and governance and decision-making.

Complaints Reporting Update Q3

The report provided an overview of corporate complaints performance for the third quarter of the financial year 2025/26. Key points included a steady volume of complaints throughout the year, a positive increase in on-time performance to 69% in Q3, and high median response times for Stage 1 and Stage 2 complaints. The primary driver for complaints remained a lack of effective communication. Compensation costs had increased, largely due to winter factors in the Council Housing service.

To consider the Work Programme

Councillor Lindsey Green requested an audit of the Out of Hours service be completed as soon as possible, and that a report on the service be brought forward sooner. The Head of Audit Risk Assurance (ARA) advised that the Out of Hours service could be reconsidered as part of the audit plan for the coming year. Members also raised concerns about GDPR compliance regarding the use of email for issuing case updates containing personal data. Councillor Chris Haynes stated he would discuss the matter with the Data Protection Officer outside the meeting. Councillor Catherine Braun raised the need to include the Ethical Investment Policy on the work programme. Councillor Robert Brown suggested that planning enforcement should remain on the Committee's radar and requested an update in six months. The committee noted updates to the work programme.

Internal Audit Progress Report

Piyush Fatania, Head of Audit Risk Assurance (ARA), presented the progress report on internal audit activity for 2025-26. An audit of Council Tax and Business Rates arrears management had been completed, providing substantial assurance. The report also highlighted that the ICT internal audit draft report issued in May 2025 was still awaiting a management response. The high-risk Rapid 7 detection audit was underway.

Risk and Opportunity Management Framework

The Policy and Performance Manager introduced the updated Risk and Opportunity Management Framework for adoption. Key changes included the inclusion of a Risk Appetite Statement, the embedding of the '4Ts' risk management method, and the formalisation of the escalation and de-escalation process. The committee noted the framework.

Treasury Management Strategy, Annual Investment Strategy and Minimum Revenue Provision Policy Statement 2026-27

The Strategic Head of Finance explained the proposed amendment to include subject to further considerations being given to funding raised through community climate based investments. This amendment was intended to ensure members were comfortable including climate bonds and similar funding mechanisms as future options. The committee debated the projected increase in debt over five years, with some members expressing concern about the level of growth. The committee recommended to Council the approval of the Prudential Indicators and Limits, Treasury Management Strategy, Investment Strategy, MRP Statement, and Ethical Investment Policy.

Statement of Accounts 2024/25

The Strategic Head of Finance reported that the Statement of Accounts had been completed and signed. The external auditor, Bishop Fleming, would present their final report. A significant adjustment relating to the valuation of two Active Lifestyles buildings was noted. The committee noted the unaudited Statement of Accounts for the year ending 31 March 2025.

External Audit Completion Report

Jonathan Saunders from Bishop Fleming confirmed that all outstanding audit areas had been completed and the Statement of Accounts had been signed off. The committee noted the Audit Completion Report from External Audit.

External Auditors Annual Report

Jonathan Saunders presented the final version of the Auditor's Annual Report. He confirmed that all value for money conclusions and recommendations remained unchanged. The only outstanding element was the audit certificate, which could not yet be issued due to the National Audit Office's ongoing work. The committee noted the Annual Report from External Audit.

To consider the Work Programme

Councillor Green requested an audit of the Out of Hours service. Members agreed to receive a management update in the first instance. Councillor Braun raised the need to include the Ethical Investment Policy on the work programme. Councillor Brown suggested that planning enforcement should remain on the Committee's radar and requested an update in six months. Councillor Haynes raised concerns about GDPR compliance and it was agreed that he would discuss the matter with the Data Protection Officer. The committee noted the updates to the work programme.

Internal Audit Activity Progress Report 2025-26

The Head of ARA introduced the report, highlighting that an audit of Council Tax and Business Rates arrears management had been completed with substantial assurance. The committee accepted the progress against the Internal Audit Plan, accepted the assurance opinions, and noted the number of open recommendations.

The meeting concluded with the resolution to exclude the press and public from consideration of an exempt item concerning financial or business affairs.