The Audit and Governance Committee of North West Leicestershire Council is scheduled to convene on Wednesday, 05 August 2026. The meeting's agenda includes a review of the external auditor's report on Building Back Assurance, the draft Statement of Accounts for 2025/26, and an update on Treasury Management activities for the first quarter of the financial year. Additionally, the committee will consider the Local Government and Social Care Ombudsman's annual review letter, proposed amendments to the Council's Constitution, and the Internal Audit progress report.

External Audit: Building Back Assurance

The committee is scheduled to receive an update from the external auditors, Azets, regarding the Building Back Assurance programme. This initiative is a structured approach designed to progressively rebuild audit assurance over the Council's Statement of Accounts. This follows several years where disclaimer audit opinions have been issued, a situation attributed to the national local audit backlog and a lack of sufficient historic assurance. The objective of the Building Back Assurance programme is to return the Council to a position where a full audit opinion can be issued. The report from Azets is expected to provide an overview of the work being undertaken to achieve this.

Draft Statement of Accounts 2025/26

The Head of Finance will present the draft Statement of Accounts for the financial year ending 31 March 2026. This statement provides a comprehensive summary of the Council's financial performance and position for the year. It has been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom and the Accounts and Audit Regulations 2015. The accounts include the core financial statements, notes to the accounts, the Narrative Statement, and the Annual Governance Statement. The committee is being asked to note the draft (pre-audit) accounts and the arrangements for the statutory exercise of public rights, prior to the audited accounts being brought back for approval at a future meeting. The period for the exercise of public rights will run from 1 July 2026 to 11 August 2026.

Treasury Management Update Report (Q1)

The Head of Finance will provide an update on the Council's Treasury Management activity for the first quarter of the financial year 2026/27. This report will inform the committee about the Council's treasury activity and performance, with a focus on the prudent approach taken regarding investment activity, prioritising security and liquidity over yield. The report will also cover borrowing strategies and activity, including compliance with the Council's Authorised Limit and Operational Boundary for external debt, as well as investment limits. Prudential indicators, such as the portfolio's average credit rating and liquidity, will also be presented.

Local Government and Social Care Ombudsman Annual Review Letter

The committee is scheduled to consider the Local Government and Social Care Ombudsman's (LGSCO) annual review letter for 2025/26. This letter provides a summary of complaint statistics relating to the Council for the year ending 31 March 2026. The report will highlight the number of complaints dealt with by the LGSCO, the outcomes of investigations, and whether recommendations made by the Ombudsman were complied with. The LGSCO letter also provides a link to the LGSCO website for more detailed statistics specific to North West Leicestershire District Council.

Amendments to the Constitution

Emma Lant, Legal Team Leader – Governance, will present proposed amendments to the Council's Constitution. These changes are necessary to reflect the coming into force of the Town and Country Planning (Discharge of Local Planning Authority Functions) (England) Regulations 2026, which are scheduled to take effect from 31 October 2026. The Regulations aim to increase the number of planning applications determined by officers and reduce those referred to Planning Committees. The report will detail the specific changes required to the Constitution, including adjustments to call-in arrangements, committee referral criteria, and the process for handling own-interest applications. The committee is asked to note the work of the cross-party working group and consider the proposed changes, with authority being delegated to finalise the amendments.

Internal Audit Progress Report (Q1)

Kerry Beavis, Audit Manager, will present the Internal Audit Progress Report for the first quarter of the 2026/27 financial year. This report will inform the committee of the progress made against the approved Internal Audit Plan for 2026/27. It will highlight any audits in progress, outstanding audits from the previous year, and any significant control failings or weaknesses identified. The report will also detail progress against agreed Internal Audit performance targets.

Corporate Risk Update

The Audit Manager will provide an update on the Council's Corporate Risk Register. This report will present the latest version of the register, which has been reviewed by officers of the Corporate Risk Group. The committee will be informed of any updates to existing risks, particularly in relation to the Local Plan, and the current risk status (red, amber, or green). The report will also note that the Director of Resources, who leads on corporate risk, is currently being managed by the Audit Manager due to a transition period, and that the new Director of Resources intends to review the risk management approach. The committee is asked to review and note this update and provide any feedback.