Apologies for absence were received from Councillor Richard Fry and Councillor James Knowles.

At this point in the meeting, Members were invited to declare any relevant interests. 

Declarations were made as follows:

Councillor Jill Makinson-Sanders requested it be noted that she was on the Board of Directors for PSPS Limited.

To confirm the Open and Exempt Minutes of the Meeting held on 26 March 2025 and the Special Meeting held at the rising of the Annual General Council Meeting on 21 May 2025.

The Open and Exempt Minutes of the Meeting held on 26 March 2025 and the Special Meeting held at the rising of the Annual Council Meeting on 21 May 2025 were agreed as a correct record.

The Chairman advised Members that a skills assessment had been circulated to Committee Members for completion.

Members were informed of a government survey that had considered remote meeting attendance and proxy voting at councils and that East Lindsey District Council was expected to adopt a local scheme in its policy for remote attendance.  Members were further advised that the Committee would be able to consider the issues in more depth as more information came forward.

The Chairman informed Members that she had attended an online Partnership training session on pensions on 9^th June 2025 and had attended a meeting with the Leader of the Council on 6^th May 2025 as part of the Committee’s Self-Assessment Actions.  Members were advised that the topics discussed included the attendance by Portfolio Holders at Meetings, Local Government Reorganisation (LGR), Audit & Governance Committee performance and improvement plans, timeliness of finance papers and audits, and the views of the Executive Board.

Members were advised that a Towns Fund Update and a training session on Treasury was being provided to Committee Members following the Meeting. 

The Chairman took the opportunity to notify the Committee that Councillor Richard Fry had tendered his resignation from the Committee and thanked him for his hard work and diligence as a Member of the Committee.

Members were invited to put their comments and questions forward.

• A Member highlighted concerns with attendance at Audit and Governance Committee Meetings by Portfolio Holders and commented on the benefits from Councillor Richard Fry’s attendance at Meetings when he previously held the title of Portfolio Holder for Finance.

• Councillor Jill Makinson-Sanders gave her apologies for missing the online Partnership-wide Audit and Governance Committee training that had taken place on 23^rd June 2025.

• A Member commented that previous in-person training had been more productive than the online Partnership-wide Audit and Governance Committee training which had recently been attended.

• Members highlighted further concerns with the online training undertaken with the other Partnership Councils.  In response, the Chairman confirmed that the training session had been available to all Members from all three Councils.

• A Member spoke in support of utilising an external training provider and agreed  that there was a need to strike the correct balance between online and in-person training.

Actions from the last meeting.

Members were referred to the Action Sheet, pages 23 to 28 of the Agenda refer.

Members noted that the actions from the Meeting held on 29 January 2025 and 26 March 2025 were confirmed as completed or in hand as follows:

Action No. 90 ‘Combined Assurance Status Report 2024/25’ from the meeting held on 26^th March 2025, page 23 of the Agenda refers.

John Medler, Assistant Director (Governance and Monitoring Officer) confirmed that Action No. 90 was now marked as complete.

• A Member queried whether the responsibilities of the Lincolnshire Flood Risk and Water Management Partnership had been transferred from Lincolnshire County Council.  In response, the Assistant Director (Governance and Monitoring Officer) explained to Members that the scrutiny committee was part of the County Council’s remit as the lead authority for flood defences.  Members were further advised that the Council remained a Member of the Partnership alongside the Internal Drainage Boards (IDBs).

Minute No 94 ‘Procurement Exemptions – 6 Monthly Update’ from the meeting held on Wednesday 26th March 2025, pages 24 and 27 of the Agenda refer.

• In reference to the update provided at Appendix A1 to the Actions, a Member commented on her disappointment that solar panels were being procured from China which was a nation that was known to employ slave labour, page 27 of the Agenda refers.

Minute No 71 ‘Internal Audit Progress Report’ from the meeting held on Wednesday 29th January 2025, pages 25 and 27 of the Agenda refer.

• A Member queried the reasons that the Council had no established processes for asset valuation for insurance purposes.  In response, Brendan Arnold, Interim Finance Director and S151 Officer assured Members that the Council maintained asset registers for fixed assets and that the evaluation of those assets was well regulated.  Members were further advised that asset valuations were reviewed annually as part of the audit process and that in recent years more queries had become apparent following changes to commercial accounting practices where Councils had incurred greater costs to ensure compliance. 

The Interim Finance Director and S151 Officer further advised Members that insurers valued assets differently to the way in which local authorities valued assets on its balance sheets and that loss was adjusted by the insuring parties to mitigate the risks.

The Interim Finance Director and S151 Officer assured Members that no deficiencies had been observed in the Council’s current arrangements and that the Council was continually looking to ensure that periodic review of arrangements was undertaken.

• A Member expressed further concern that the Council did not have a documented policy in relation to insurance related asset valuations.  In response, the Interim Finance Director and S151 Officer explained to Members that a documented policy for insurance related risk was not required as it was expected that matters were dealt with on a transactional basis in the circumstances when the Council wished to claim against any of its insurance policies for any losses. 

• A Member queried whether Action No. 71 needed to be  ...  view the full minutes text for item 7.

To receive a verbal update from the Assistant Director, Corporate.

The Chairman welcomed James Gilbert, Assistant Director (Corporate) who was in attendance virtually to provide Members with an update on Local Government Reorganisation.

The Assistant Director (Corporate) advised Members that in March 2025 East Lindsey District Council (ELDC) and South Holland District Council (SHDC) had submitted an interim proposal to government and that several proposals had been submitted across greater Lincolnshire.  Members were advised that feedback on the proposals that were submitted had been received in June 2025. 

Members were advised that the government’s response had provided four considerations which included the county of Rutland’s impact on Leicestershire, the formation of area committees, reinforcement that data sharing and cost reduction efforts were utilised to develop proposals, and that the starting points for proposals should not overly complicate the process by splitting up districts.

The Assistant Director (Corporate) confirmed that funding to work on the final proposal had been approved by the Executive Board at its Meeting on 7^th May 2025, Minute No. 92 refers and that ELDC and SHDC were working together on a bid to submit the proposal by the deadline of 28^th November 2025.

Members were invited to put their comments and questions forward.

• A Member queried the reasons that only two of the three Partnership Councils were working together on a bid.  In response, the Assistant Director (Corporate) explained to Members that Boston Borough Council was still considering its position and that further discussions were ongoing.

• A Member commented on the increased risks associated with larger sized councils and highlighted the impact on internal audit services that was currently provided by Lincolnshire County Council.

• A Member highlighted further concerns with the future composition of Audit and Governance Committees and the reduction in Independent Members that would then serve on any committees.

• A Member highlighted concerns where the formation of new Councils could create a democratic deficit.

• A Member commented on the need to consider reintroducing neighbourhood or area committees to scrutinise and oversee governance at a more local level.

• A Member commented that the lack of involvement of Boston Borough Council was a serious risk to the Partnership.

• Members further discussed the disadvantages of creating larger sized Councils which would result in a greater lack of local representation which currently benefited local residents.

• Members questioned the value of consultations and expressed dissatisfaction where opposing views had not been taken into account.

• A Member sought clarification on the perception that the government’s intention was for all Councils to work together to create a single bid for Local Government Reorganisation.  In response, the Assistant Director (Corporate) explained to Members that multiple proposals had occurred due to different political landscapes and that negotiations with other Councils remained ongoing.

• A Member queried who held the final decision on the proposals that were being submitted.  In response, the Assistant Director (Corporate) advised the Committee that following a consultation period, the Secretary of State would make the final decision on the proposals that had been submitted, or in some circumstances the  ...  view the full minutes text for item 8.

To receive a report from the Group Manager, Insights and Transformation.

Suzanne Rolfe, Group Manager (Insights and Transformation) was in attendance virtually and presented Members with the Q4 Risk Report 2024/25, pages 29 to 50 of the Agenda refer.  A copy of the Quarter 4 Strategic Risks Register (SRR) was attached at Appendix A, pages 37 to 50 of the Agenda refer.

Members were advised that the Senior Leadership Team (SLT) were reviewing Partnership Risks around trust and Local Government Reorganisation (LGR) which would be fed into the Q1 Risk Reporting.

Members were invited to put their comments and questions forward.

• In reference to Strategic Risks ELDC30: Company Insolvency, a Member commented on concerns with the increased risks from Invest East Lindsey Limited and queried the justification for the risk score being medium, page 31 of the Agenda refers.   In response, Suzanne Rolfe, Group Manager (Insights and Transformation) confirmed that further information on the classification of the risk would be obtained from the Lead Officer.

• In reference to the Risk Scoring Matrix, a Member commented that the risk should be classed as high or critical impact due the uncertainty surrounding Local Government Reorganisation when the Council would cease to exist, page 31 of the Agenda refers.  In response, Suzanne Rolfe, Group Manager (Insights and Transformation) explained to Members that considerations were being made for the re-evaluation of the risks in relation to LGR for inclusion in the upcoming Q1 Risk Report.

• In reference to Risk SELCP-02 – Trust, Members supported the need to reconsider the treatment of the risk being changed to ‘Treat’ rather than ‘Tolerate’ due to the potential for changes in relationships and the effects of LGR, page 41 of the Agenda refers.  In response, Suzanne Rolfe, Group Manager (Insights and Transformation) confirmed to Members that further information would be provided in the Q1 Risk Report and that feedback would be provided to the Senior Leadership Team.

• In reference to Risk ELDC04 – Lincshore Flood Defence, a Member highlighted concerns with increased risks following the loss of the drainage Committee, page 37 of the Agenda refers.

• In reference to Risk ELDC20 – Capacity to deliver the work programme for Partnership/Councils, a Member commented that capacity was a high risk when work could not be accommodated within existing resources, page 39 of the Agenda refers.

• In reference to Risk ELDC21 – Communications, a Member expressed concern that communications within the Council were poor, page 39 of the Agenda refers.

• In reference to Risk ELDC28 – Health, a Member highlighted concerns with local health issues being a huge challenge for councils and that Lincolnshire had greater challenges due to high levels of deprivation and an ageing population, page 40 of the Agenda refers.

• In reference to Risk SELCP-07 – Funding, a Member commented that funding was a huge risk for ELDC due to paying the greatest share of funding into the Partnership and considered whether residents were getting value for money, page 41 of the Agenda refers. 

In response, Suzanne Rolfe, Group Manager (Insights and Transformation) confirmed to Members that all  ...  view the full minutes text for item 9.

To receive a report from the Internal Audit Manager, Internal Audit Lincolnshire County Council.

Claire Goodenough, Head of Internal Audit at Internal Audit Lincolnshire County Council was in attendance virtually to provide Members with the Internal Audit Annual Report & Opinion 2024/25, pages 51 to 64 of the Agenda refer.

The purpose of the report was to give the annual opinion and outcome of the internal audit work undertaken during the year to inform the Annual Governance Statement, concluding on the adequacy and effectiveness of the Council’s governance, risk and control framework.

A summary of the findings of the assurance reviews throughout 2024/25 was included at Appendix 1 and was categorised under the headings of substantial, adequate, limited and no assurance, page 64 of the Agenda refers.

Members were invited to put their comments and questions forward.

• In relation to the two audits that received a Limited Assurance Review (Insurance and Finance Systems – Bank Reconciliations), a Member queried whether the Insurance Audit findings was related to the Committee’s earlier queries about internal valuers and whether further support was needed, page 10 of the Agenda refers.   In response, the Head of Internal Audit explained to Members that internal auditors did not examine overarching values and were constrained to look at systems and processes.  Members were advised that a number of areas had been identified where systems and processes were missing and where local governance could be improved.  It was further explained that the recommendations made aimed to address the issues and encourage greater collaborative working with the Partnership and PSPS to provide assurance.

• In further reference to Bank Reconciliation, a Member queried whether measures had been implemented where bank reconciliations had not been completed on a monthly basis.  In response, the Head of Internal Audit advised Members that she was unable to comment until a follow up review had been undertaken.  Members were further advised that officers had worked hard to address a backlog and that this may have been a contributing factor for the limited assurance status.

• A Member queried the changes in Internal Audit staff, page 61 of the Agenda refers.  In response, the Head of Internal Audit explained to Members that the Council’s previous internal auditor, Matt Waller had left the organisation and Mark Harrison had been appointed as his replacement.  Members were advised that both herself as Head of Internal Audit and Mark Harrison would be working together to manage oversight and to get to know the Council better and add value to the Audit and Governance Committee.

• In reference to Internal Audit Performance, a Member commented on the timescale of 59% for individual audit assignment in timescales delivered as agreed in the latest internal audit plan, and queried whether officers needed greater internal support, page 63 of the Agenda refers.  In response, the Head of Internal Audit advised Members that 59% was a disappointing result and explained that it related to the auditors not having access to the data where there had been reluctance to free up staff time.  Members were advised that improved access and ongoing planning and preparing  ...  view the full minutes text for item 10.

To receive a report from the Treasury and Investment Manager, PSPS Limited.

The Treasury and Investment Manager, PSPS Limited presented Members with the Treasury Annual Report 2024/25, pages 65 to 84 of the Agenda refer.

Members were advised that the Council was required to produce a Treasury Annual Report after the end of each financial year in accordance with the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management.

The report covered the following areas;

• An economic update for the 2024/25 financial year;

• A review of the Council’s investment portfolio for 2024/25;

• A review of the Council’s borrowing strategy for 2024/25;

• Debt position;

• Compliance with Treasury and Prudential Indicators.

Members were invited to put their comments and questions forward.

• In reference to paragraph 2.2 which stated that ‘All treasury investments will mature in less than one year and the non-treasury investments are long term investments in property funds and loans to Invest East Lindsey (IEL)’, a Member queried the effects of Local Government Reorganisation on investment periods, page 66 of the Agenda refers.  In response, the Treasury and Investment Manager explained to Members that the Council regularly made investments for less than one year and that maturity points for various investments were staggered. 

The Treasury and Investment Manager advised Members that when a loan matured the Council would examine its cashflow forecasts and reassess its position.  Members were further advised that the Council would not usually choose to make investments for greater than a year due to the current horizon and risk of political change.

• In relation to Treasury Investments, a Member highlighted the various percentages for investments as at 31 March 2025 and queried the rationale behind the variations, page 76 of the Agenda refers.  In response, the Treasury and Investment Manager explained to Members that in relation to the differences between investing in banks and local authorities, the view on lending to local authorities had changed.  Members were assured that the view of the Section 151 Officer was that there was less risk associated with lending to local authorities as they were less likely to default on payments and were unable to become bankrupt.

• In reference to the table which highlighted the exposure to fixed and variable rates on investment, a Member queried whether the requirements had changed, page 77 of the Agenda refers.  In response, the Treasury and Investment Manager explained to Members that short-term cash was invested at variable rates compared to loans that were fixed rate.  Members were further advised that the variable rate was likely to increase as the Council’s overall investment balances reduced.

The Treasury and Investment Manager confirmed to Members that changes had occurred in reporting requirements where International Financial Reporting Standards (IFRS) 9 had historically required property fund investments to be stated at book value and where legislation had changed for accounts to be produced on a fair value basis.

• A Member queried whether there had been any delays in interest payments or any renegotiations on repayments from IEL, page 80 of the Agenda  ...  view the full minutes text for item 11.

To receive the Annual Governance Statement 2024/25.

Suzanne Rolfe, Group Manager (Insights and Transformation) was in attendance virtually and presented Members with the Annual Governance Statement (AGS) 2024/25, pages 85 to 100 of the Agenda refer.

Members were advised that the Annual Governance Statement 2024/25 was required to be approved by the Committee prior to the Statement of Accounts, as per the Accounts and Audit Regulations 2015.

Members attention was drawn to two new actions that had been included at the end of the report, page 99 of the Agenda refers.

Members were invited to put their comments and questions forward.

• In reference to the action for monitoring of controls around payroll reconciliation (following limited assurance audit) for significant governance issues 24-25, a Member sought clarification whether it was correct that the Council had limited assurance around payroll reconciliation in 2024-25 and had limited assurance around bank reconciliation in 2023-24, page 99 of the Agenda refers.   In response, the Group Manager (Insights and Transformation) confirmed that the wording in the report would be verified and an update provided to the Committee. 

• In reference to the Internal Audit Report 2024/25 paragraph 6.1, a Member queried the reason that Red Assurance was up to 1%.   In response the Assistant Director (Governance) and Monitoring Officer explained to Members that the percentage related to the Council’s Combined Assurance Report and cross-referenced with paragraph 7.1 where the Council was establishing improved governance and processes to support the preparation of the 2026/27 budget and Medium Term Financial Strategy (MTFS).

• A Member commented in support of receiving further assurance on the improved monitoring and controls around payroll reconciliation that was highlighted in the Internal Audit 2023-24 report.  In response, the Deputy Chief Finance Officer advised Members that a payroll reconciliation follow-up audit had been undertaken in 2025 and that the audit opinion had improved to substantial assurance following the previous limited assurance opinion.  Members were further advised that a new payroll system was being implemented which would enhance the Council’s internal controls.

• In reference to the effectiveness of the governance framework, a Member requested assurance on the governance undertaken by the Senior Leadership Team (SLT), page 98 of the Agenda refers.  In response, the Assistant Director (Governance) and Monitoring Officer advised Members that governance practices were included in the governance frameworks utilised across the Partnership.  Members were further assured that agendas, minutes and actions were in place across the Partnership and that the SLT met on a monthly basis to review corporate governance.

• A Member queried whether the sample examined by the External Auditors where no minutes had been available was a one-time occurrence, page 253 of the Agenda refers.  In response, the Assistant Director (Governance) and Monitoring Officer advised Members that the specific example in the audit sampling had related to the Business and Efficiency Savings Meetings.  Members were assured that meetings on corporate governance were recorded and actioned and were attended by management from Internal Audit and PSPS.

James Boyle, Internal Audit Director highlighted to Members that observations had been made specifically  ...  view the full minutes text for item 12.

To receive the Unaudited Financial Statements 2024/25.

The Deputy Chief Finance Officer (Corporate), PSPS Limited presented Members with the Unaudited Financial Statements 2024/25 – including narrative report, pages 101 to 214 of the Agenda refer.

Members were further referred to the draft Financial Statements 2024/25 for the year ended 31 March 2025 that were attached at Appendix A, pages 107 to 214 of the Supplementary Agenda refer.

Members were advised that a training session prior to the approval of the audited financial statements would be undertaken when the audit was nearing completion.

Members were invited to put their comments and questions forward.

• A Member commented in support of the pie chart which highlighted Council Tax Share 2024/25, page 115 of the Agenda refers.

• In reference to the 2024/25 Capital Programme and Outturn listed by scheme, a Member queried the wording for the Towns Fund Scheme that referred to Mablethorpe Sandilands, page 119 of the Agenda refers.  In response, the Deputy Chief Finance Officer advised Members that Mablethorpe Sandilands was part of the Towns Fund projects.

The Assistant Director (Governance) and Monitoring Officer further advised Members that there had been a project led by the National Trust within the Towns Fund Projects which had looked at an accessible eco-friendly visitor hub which had been listed as Sandilands under the parish of Mablethorpe.

• A Member queried whether the local government pension scheme was the Council’s largest liability alongside Invest East Lindsey, page 189 of the Agenda refers.  In response, the Deputy Chief Finance Officer, PSPS Limited confirmed that was correct.

• A Member queried whether the Council had received the balance of £0.336m due to the Council as at 31^st March 2025 from Invest East Lindsey, page 101 of the Agenda refers.  In response, the Deputy Chief Finance Officer, PSPS Limited advised Members that information would be obtained and brought back to the Committee to confirm whether the balance had been repaid. 

• A Member commented in support of the improvement observed for the surplus deficit in relation to Invest East Lindsey, page 101 of the Agenda refers.

• A Member highlighted the need to receive updates in relation to government intentions for pension funds, page 103 of the Agenda refers.

• A Member queried whether further information could be provided to the Committee in relation to the Council’s Insurance Reserve, pages 120 and 121 of the Agenda refer.  In response, the Interim Finance Director and S151 Officer explained to Members that the Insurance Reserve was reviewed annually when setting the budget for the following year and that it was sometimes possible to take savings in maintaining an adequate insurance reserve balance.  Members were further advised that the position would become clearer later in the year and would be presented to Members through Audit and Governance and Overview Committee Meetings that were scheduled to take place in January 2026.

• In reference to Council Tax and Business Debt, a Member queried the Council’s approach to debt recovery, page 177 of the Agenda refers.  In response, the Deputy Chief Finance Officer, PSPS Limited advised  ...  view the full minutes text for item 13.

To receive the Executive Summary for the KPMG External Audit Plan and Strategy for the year ended 31 March 2025.

James Boyle, External Audit Director (KPMG) introduced the Executive Summary to the External Audit Plan & Strategy for the Year Ended 31st March 2025, pages 215 to 216 of the Agenda refer.

To receive the External Audit Plan & Strategy for the year ended 31 March 2025.

James Boyle, External Audit Director (KPMG) presented Members with the External Audit Plan & Strategy for the Year Ended 31st March 2025, pages 217 to 274 of the Agenda refer.

The External Audit Director advised Members that the report provided the Audit & Governance Committee with an opportunity to review KPMG’s planned audit approach and scope for the 2024/25 audit and outlined the risk assessment and planned audit approach.  Members were further advised that the audit was governed by the provisions of the Local Audit and Accountability Act 2014 and in compliance with the NAO’s 2024/25 Code of Audit Practice, auditing standards and other professional requirements.

Members were advised that there had been no significant changes since the previous External Audit Plan & Strategy had been presented to the Committee.

Members were invited to put their comments and questions forward.

• In reference to Value for Money Recommendation 1 – Inappropriate Governance arrangements over Invest East Lindsey Limited, a Member queried whether works had commenced in relation to the due date listed as 31^st August 2025, page 252 of the Agenda refers.  In response, the External Audit Director advised Members that progress had not been observed as expected and that follow-up work had commenced.  Members were further advised that improvements had been seen in the Council’s reporting throughout the last twelve months.

The External Audit Director referred to the material uncertainty that was previously reported in relation to Invest East Lindsey and suggested that the Committee would benefit from an annual or bi-annual report being brought forward to enable Members to have appropriate scrutiny and oversight.

• In reference to Issue, Impact and Recommendation – Formal record of discussion and action for efficiency savings, a Member highlighted concerns with the lack of written minutes and action logs from meetings held by the Senior Leadership Team throughout 2024-25 and queried the Council’s responsibilities to ensure that it did not occur elsewhere in line with good practice, page 253 of the Agenda refers.  In response, the Interim Finance Director and S151 Officer assured Members that new protocols and procedures had been put in place to build the 26/27 budget and would ensure that all decisions including those made in management meetings were adequately recorded. 

The External Audit Director advised Members that the approach to Efficiency Savings was less well developed for local authorities compared to other organisations such as the NHS and that the aim of the recommendation was to ensure that organisations moved towards best practice by meetings and the governance processes around identification, reporting and monitoring of achievements of efficiency programs being formally documented.

• The Interim Finance Director and S151 Officer commented on the monitoring of savings and explained to Members that a new transformation board which would be minuted and actions logged had been formed to keep track of all adopted efficiency savings and transformation endeavours.

• A Member stressed that there was a wider governance question for the Committee to ensure that it sought ongoing reassurance that key meetings were minuted and actions  ...  view the full minutes text for item 14b

To receive a report from the Interim Director of Finance and Section 151 Officer.

Brendan Arnold, Interim Director of Finance and Section 151 Officer who was in attendance virtually presented Members with a report on Budget Preparation 2026/27 – approach & process, pages 275 to 282 of the Agenda refer.

Members were advised that the purpose of the report was to ensure that the Committee received a thorough briefing on the system that the Council wished to use in preparation of the 2026/27 Budget and to gain assurance from the arrangements described.

Members were invited to put their comments and questions forward.

• A Member highlighted concerns that the report was weighted towards the Executive Board and that consultation with the wider Council Membership on budget preparation had not been occurring.  In response, the Interim Finance Director and S151 Officer assured Members that as part of the new approach to the 2026/27 budget preparation, significant communication plans were being implemented to ensure that all Members were included.  Members were further advised that wider discussion was welcomed and that further reports would be made to the Audit and Governance Committee when the Council’s position was more defined.

• A Member highlighted concerns that Councillors had no power to elect the Executive Board and that all Councillors should be considered as equal.

• A Member further queried the reference to consultation with stakeholders, page 277 of the Agenda refers.  In response, the Interim Finance Director and S151 Officer advised Members that consultees and stakeholders included a variety of people which included Members of the Audit and Governance Committee, Executive Board Members, Leadership Team, Staff and Chairs of Audit and Governance and Overview Committee.

• In reference to paragraph 3 (f), a Member commented that Committee Members’ roles were undeveloped and queried whether an outline of scrutiny system proposals could be provided, page 277 of the Agenda refers.  In response, the Interim Finance Director and S151 Officer explained to Members that he had scheduled a series of scrutiny meetings in January 2026 to receive proposals for dealing with risks and shortfalls in the budget and that all Members of the Audit and Governance Committee were invited to attend.

• A Member queried whether the new series of meetings for budget scrutiny would become an annual event.  In response, the Interim Finance Director and S151 Officer confirmed that it was intended to be an annual process to provide adequate time for consideration of the budget.

• The Chairman commented on the benefit of holding an earlier meeting prior to January 2026 to gain feedback and provide the opportunity for Members to ask questions.  In response, the Interim Finance Director and S151 Officer supported the request to provide an earlier update to the Audit and Governance Committee in the Autumn.

• A Member highlighted concerns that the Committee had received little interaction with the Portfolio Holder for Finance. 

In conclusion, the Interim Finance Director and S151 Officer assured Members of his expectations for the improved budget preparation process that was being implemented.

The Chairman thanked Brendan Arnold, Interim Director of Finance and Section 151 Officer for his  ...  view the full minutes text for item 15.

To confirm appointment of Members to the Constitutional Working Group.

John Medler, Assistant Director (Governance) and Monitoring Officer advised Members that the Constitutional Working Group (CWG) supported the Audit and Governance Committee to undertake its Terms of Reference (ToRs) with regards to monitoring and reviewing the operation of the Council’s Constitution to ensure that the aims and principles were given full effect, taking in account advice from the Monitoring Officer.

The Assistant Director (Governance) and Monitoring Officer further advised that the ToRs of the CWG allowed three members and that the membership had to be from different political groups.  Although there was no specific requirement for this, it had been previous practice for the Chairman and Vice-Chairman to be appointed to the working group.

Members noted that the three Members previously appointed to the CWG in June 2024 were Councillors Ros Jackson, Jill Makinson-Sanders and Will Grover.

Further to a discussion and upon being put to the vote, it was

RESOLVED:

That Councillors Ros Jackson, Jill Makinson-Sanders and Stef Bristow be appointed to the Constitution Working Group.

To consider the Audit & Governance Committee Work Programme 2025/26.

Members were presented with the Audit & Governance Committee Work Programme 2025/26, pages 283 to 286 of the Agenda refer.

Members were invited to put their comments and questions forward.

• A Member queried the reasons that the date for today’s Meeting had changed from a Wednesday to a Thursday.  In response, the Chairman confirmed that Committee Meetings would normally be held on Wednesdays and explained that today’s Meeting had been rescheduled as the date had conflicted with an Internal Drainage Board Meeting.

• A Member commented on the benefits of having a Committee Work Programme.

• The Chairman highlighted that the number of Agenda Items scheduled for January 2026 had decreased due to the removal of the annual budget discussion item.

• Members discussed the non-attendance of Portfolio Holders at Committee Meetings and the Chairman advised the Committee that Portfolio Holders had been provided with a Teams link to encourage virtual attendance.

• The Chairman advised Members that a draft Memorandum of Understanding (MoU) for Overview Committee and Audit and Governance Committee would be added as an Agenda Item for the next Meeting of the Committee.

Following which it was,

RESOLVED:

That the Committee Work Programme 2025/26 be noted.

N.B James Boyle, External Audit Director (KPMG) left the Meeting at 13.42pm.

The programmed date for the next Meeting of this Committee was noted as Wednesday 10 September 2025.

That under Section 100 (A) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following item on the grounds that, if they were present, there could be disclosed exempt information as defined at paragraph 3 of Part 1 of the Schedule 12A of the Act (as amended).

RESOLVED:

That under Section 100 (a) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items on the grounds that, if they were present, there could be disclosed to them exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Act (as amended).

To receive a report from the Treasury and Investment Manager, PSPS.

An exempt report was provided by Sean Howsam, Treasury and Investment Manager (PSPS Limited), which enabled Members to consider a review of the Council’s Property Fund Investments which considered performance, market conditions and recent legislation changes.

RESOLVED:

That the Recommendations contained within the exempt report be agreed.