Agenda item

To receive the Annual Governance Statement for 2025/2026.

The Head of Registrars, Public Protection, Legal & Democracy presented the Annual Governance Statement (AGS) for 2025/2026 which would accompany the annual accounts. 

This was a statutory requirement under the Accounts and Audit Regulations 2015 and set out how the council was governed, how risks were managed and controlled. It formed part of the evidence base used to reassure the council and the public that the arrangements were fit for purpose and demonstrated the council’s openness and accountability which was especially important.

The AGS covered the governance arrangements that operated between the

1 of April 2025 and the 31 of March 2026 drawn from across the organisation and externally.  This included senior management and leader sign off, the oversight of internal audit and external audit, partners and inspection bodies who undertake inspections across the council throughout the year.

Governance and internal controls were designed to manage risk to a reasonable level of assurance and this was standard best practise. It was the aim of every local authority to achieve a reasonable level of assurance across the organisation.

In conclusion, the AGS showed the Head of Governance, Audit & Procurement gave a reasonable level of assurance that the council’s governance arrangements and internal controls were fit for purpose and the strong internal insurance programme, internal audit work was risk based and aligned to recognise public sector standards.

In relation to enforcement there was no action taken by the Information Commissioners Office (ICO) against the council during 2025-2026.  The External Auditors reported no significant weaknesses identified in value for money arrangements during the work completed and no actions were taken under their wider powers during the year.

The AGS also highlighted the wider evidence of organisational strength and service outcomes.  This included being named LGC Council of the Year in 2025 and the receipt of funding in recognition of the council’s Valour Armed Forces Centre.  My Options Supported Housing Team also received an Outcome 1 from Ofsted.  

Looking forward, it was good practice to have an action plan that demonstrated continuous improvement rather than standing still. The plan was targeted and practical and focussed on financial resilience and organisational change, strengthening consistency in performance, essential learning, workforce capacity and succession planning.  The council continued in its mature approach towards data learning and cyber awareness.

Members were asked to approve the AGS and that, if approved, it be signed by the Chair.  

During the debate it was encouraged that people looked at the detail of the report which showed the strong position of the council, particularly in relation to the reasonable level of assurance.  There had been no action taken by the ICO and no significant weaknesses identified by KPMG, the External Auditors.  It also referred to the council being awarded LGC Council of the Year, as well as the positive outcomes from Ofsted and the CQC.  Some Members asked if there was the required level of competency and depth of knowledge amongst Members for the size of the budget that was being handled.  It was asked if Officers were confident that the AGS was proper, accurate and satisfactory.  Other Members enquired about staff capacity and if this was sufficient going forward.

The Chair responded that, in relation to competency and depth of knowledge, the Committee worked with officers and KPMG to expand their knowledge and that learning was continuous.  The Committee had the opportunity to attend training during the municipal year, but if Members felt there were gaps in their knowledge these could be addressed.  Both Internal and External Auditors had the oversight and worked closely with officers

The Head of Registrars, Public Protection, Legal & Democracy explained that in relation to the question on competency that the Constitution set out the purpose of Audit Committee which was to take responsibility for the oversight of both internal and external audits and ensure the council arrangements for corporate governance were in place.  The AGS was an annual report which set out the basis on which the conclusion was reached and the checks and balances on which the metrics had been balanced.  It was then brought before Committee for final sign off.  Work was undertaken throughout the year to reach a reasonable level of assurance.

The Head of Governance, Audit & Procurement explained that the assurance set out in the AGS was reasonable assurance that the council was working effectively – it would be unrealistic to have absolute assurance as that would suggest that all risks were completed mitigated.  It would be difficult for committee members to have the breadth and depth of knowledge that specialist financially trained staff and auditors have but the Committee can gain assurance through the work of KPMG who had not raised any concerns.  In relation to staff capacity, whilst there was a need to operate within budgetary provisions, any plans in terms of savings were closely monitored and there were programmes of development and resilience planning in place

The Director: Finance, People & IDT gave Members assurance in relation to the competency of finance officers who were fully trained accountants and the team had a breadth of experience.  The accounts had to be prepared in line with the finance and audit regulations and the CIPFA Code of Practice.  KPMG audit the accounts and were the independent check and balance and the council had a good history of unqualified accounts over many years.  All of the key headlines from the budget were set out and the appendices of the Medium-Term Financial Strategy which includes a summary level of the budget movements from the previous year.  In relation to recruitment, there were no current issues across the organisation in terms of challenges in recruiting staff.  The council was always looking to bring in new people through apprenticeships schemes and career graded posts. 

Upon being put to the vote it was, by a majority:

RESOLVED – that the Annual Governance Statement for 2025/26 be approved.