The Corporate Governance Committee of Leicestershire County Council met on Friday 26 June 2026 to review a range of reports concerning the Council's financial management, risk, and governance frameworks. Key discussions were scheduled to include the external audit progress, treasury management, and updates on the Council's resilience and business continuity plans. The committee was also set to consider the provisional draft of the Annual Governance Statement for 2025-26 and the Local Code of Corporate Governance.

External Audit of the 2025/26 Financial Statements

The committee was scheduled to receive an update on the progress of the external audit of the County Council and the Pension Fund's 2025/26 financial statements. Representatives from Grant Thornton UK LLP, the Council's external auditors, were expected to attend to provide this update. The report indicated that interim audits had taken place and that the final audits were planned to commence at the end of June and August for the Pension Fund and County Council respectively. The audit was scheduled to be completed by the end of November 2026. The report also noted that the auditor's work on the Value for Money (VfM) arrangements was underway, with findings to be reported in November 2026. The committee was asked to note the progress of the external audit.

Risk Management Update

A report was scheduled to provide an update on risks within the Corporate Risk Register, emerging risks, and the internal audit of the Council's risk management process. A presentation was planned on corporate risk #1.16, concerning the financial burden on the Council if maintained primary schools submit significant licensed deficit budgets over time, potentially leading to school failures. Updates were also to be provided on the emerging risks of the Iran war, which had led to an increase in supplier requests for inflationary price increases, and Local Government Reorganisation (LGR), with a decision on LGR anticipated in July 2026. The committee was asked to approve the status of corporate and strategic risks, make recommendations for further examination, and note the updates on the Iran war and LGR.

Annual Treasury Management Report 2025/26

This report was intended to advise the committee on the action taken and performance achieved in respect of treasury management activities during the final quarter of 2025/26 and the overall position for the financial year. It was to cover the economic background, short-term investments, investments beyond 12 months, and external debt repaid. The report highlighted that UK inflation had remained stubborn throughout 2025/26, and borrowing had become more expensive. It detailed the movements and key performance indicators in the Council's investment loan portfolio, showing a decrease in the total balance available for short-term investment. The report also detailed the Council's debt position at 31 March 2026, noting it was the lowest level for over 20 years. The committee was asked to note the contents of the annual report and that it would be submitted to the Cabinet.

CIPFA Financial Management Code – 2026/27

This report aimed to inform the committee of the Council's compliance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Financial Management Code for the financial year 2026/27. The Code is designed to support good practice in financial management and assist local authorities in demonstrating their financial sustainability. The report indicated that the Council meets the requirements of the Financial Management Code and that good progress was being made on all external auditor recommendations. The committee was asked to note this report.

Head of Internal Audit Service – Annual Report 2025-26

The committee was scheduled to receive the Head of Internal Audit Service's annual report for 2025-26. This report included the Head of Internal Audit Service's overall conclusion on the effectiveness of the Council's governance, risk management, and control, which was Reasonable assurance . This conclusion was based on the results of individual audits, management actions, professional judgement, and other independent assurances. The report detailed the audits undertaken, provided a summary of assurance ratings, and highlighted areas for improvement. The committee was asked to note the report and agree that a copy be circulated to all members of the County Council.

Provisional Draft Annual Governance Statement 2025-26

This report outlined the background and approach taken to produce the Council's provisional draft Annual Governance Statement (AGS) for 2025-26. The AGS is a statutory requirement that accounts for how the Council has delivered on governance over the previous year. The report detailed the review process, including departmental self-assessments and input from a Senior Officer Group. Two new significant governance issues were identified for reporting: Members' Code of Conduct issues and a Deficit Schools Balance. The committee was asked to consider the provisional draft AGS, note the two significant governance issues, and note that the draft AGS had been prepared in accordance with best practice.

Local Code of Corporate Governance

This report sought the committee's support for the revised Local Code of Corporate Governance. The Code sets the standard for local authority governance and was updated to align with new national guidance and standards, including the CIPFA addendum, and to reflect modern risks such as AI and cyber security. The revised Code was intended to demonstrate a more mature, comprehensive, and up-to-date governance framework. The committee was asked to confirm that the revised Local Code had been reviewed and amended as necessary.

Annual Counter Fraud Report 2025-26

This report summarised the counter fraud activities undertaken across the Council during the 2025-26 financial year. It highlighted the Council's zero-tolerance approach to fraud and corruption and its assessment against the CIPFA Code of Practice. The report detailed the number and status of new investigations, themes of investigations closed, and financial outcomes. It also covered the Council's counter fraud resources, policies, referral channels, and data matching activities, including participation in the National Fraud Initiative. The committee was recommended to note the contents of the report.

Resilience and Business Continuity Annual Update

This report provided an update on the Council's Resilience and Business Continuity activities, including work with other Leicester, Leicestershire and Rutland local authorities and wider multi-agency resilience activities. It detailed progress on incident management and business continuity plans, including supplier assurance, manager training, and lessons learned from debriefs. The report also summarised resilience and emergency planning progress, including responses to several internal and multi-agency incidents. A schedule of work for 2026/27 was outlined, along with resource implications and equality and human rights implications. The committee was asked to note and comment on the report.

Annual Report on the Operations of Contract Procedure Rules

This report detailed the operation of the Council's Contract Procedure Rules between 1 April 2025 and 31 March 2026. It included information on approved exceptions to the rules and approved contract extensions or modifications. A comparative table showed a significant reduction in the number of exceptions granted compared to previous years, attributed to improved forecasting and early engagement with the procurement team. The report also provided details of contracts awarded under the Provider Selection Regime (PSR). The committee was recommended to note the contents of the report.

Annual Report of the Corporate Governance Committee 2025-26

This draft report was presented to enable the committee to consider its annual report for 2025-26 prior to its submission to full Council. The report summarised the committee's role, membership, and responsibilities, as well as an overview of the sources of assurance received and key governance and risk issues considered during the year. It highlighted the committee's activities related to financial management, risk management, fraud and corruption, the Annual Governance Statement, internal and external audit, and treasury management. The committee was asked to consider and approve the draft annual report.