The Audit and Governance Committee of North Northamptonshire Council met on Monday 17 August 2026, approving the Code of Corporate Governance and endorsing the Annual Governance Statement for 2025/26. The committee also noted reports on the Local Government and Social Care Ombudsman and Housing Ombudsman Service, external audit progress, and internal audit activity.

Local Government and Social Care Ombudsman and Housing Ombudsman Service Annual Report 2024/25

The committee received an overview of the annual review findings from the Local Government and Social Care Ombudsman (LGSCO) and the Housing Ombudsman Service (HoS) for the 2025/26 period. Simon Mills, Director of Customer Experience, presented the report, highlighting that the LGSCO handled 150 complaints relating to North Northamptonshire Council, with 25 being upheld. The largest proportion of upheld complaints, 14 out of 25, related to Education and Children's Services, specifically Special Educational Needs and Disabilities (SEND) provision. The Housing Ombudsman Service investigated seven complaints, with the principal themes being repairs and maintenance, damp and mould, communication with tenants, and the complaint handling process. The committee approved the self-assessment against the HoS Complaint Handling Code and the Annual Landlord Complaints and Service Improvement report, which will be published on the council's website. Councillor David Brackenbury welcomed the report, emphasising the importance of learning from upheld complaints, while Councillor Mark Pengelly stressed that one complaint is too much and highlighted concerns regarding SEND provision and officer response times. Councillor Steve Geary noted the recurring themes in upheld complaints, such as poor communication and delayed responses.

Review of Code of Corporate Governance

The committee agreed and adopted the revised Code of Corporate Governance, presented by Kamila Coulson-Patel, Corporate Director of Law and Governance. The code, first implemented in 2021, was reviewed to ensure it remained aligned with current arrangements, relevant legislation, and the CIPFA/SOLACE good governance framework. The updates made were largely administrative, including revised hyperlinks and references to current policies. The committee agreed to continue the practice of reviewing the code on an annual basis.

Audit and Governance Committee Annual Report 2025/26

Rachel Ashley-Caunt, Chief Internal Auditor, presented the committee's annual report for 2025/26. The report, which will be presented to the full Council, summarises the committee's activities and its role in providing assurance on governance, risk management, and internal control. The committee approved the report for presentation to Council and agreed timeframes for actions arising from its self-assessment. Councillor Michael Whitworth found the self-assessment process to be incredibly useful, and Councillor David Brackenbury commended the committee's apolitical nature and the quality of discussion and debate on complex issues. Councillor Denis McLean inquired about expected improvements in the coming year, and Rachel Ashley-Caunt highlighted actions related to promoting the committee's value, seeking feedback from full council, and potentially introducing further independent members with specific skill sets.

Annual Governance Statement 2025/26

Claire Edwards, Executive Director of Finance and Performance, presented the Annual Governance Statement (AGS) for 2025/26. The AGS, a statutory document, concluded that the council's governance arrangements are generally effective, providing a moderate level of assurance. Key challenges identified include ongoing financial sustainability pressures in social care and the Dedicated Schools Grant (DSG), consistency of controls, timely implementation of audit recommendations, workforce capacity, and strengthening assurance over partnerships. An action plan has been developed to address these issues. The committee endorsed the AGS for inclusion in the Statement of Accounts. Councillor David Brackenbury acknowledged the pretty good ship in terms of governance but expressed nervousness about future financial challenges.

Capacity Assessment Report

The committee received a capacity assessment report and Build Back Plan prepared by external auditors Grant Thornton, as requested by the Ministry of Housing, Communities and Local Government (MHCLG). Paul Harvey, representing Grant Thornton, explained that North Northamptonshire Council had been assessed as Category C, indicating that while adequate systems exist in principle, practical constraints make an ISA-compliant build-back unlikely by the end of 2027/28. The plan outlines a three-year strategy to regain assurance, aiming for an unmodified audit opinion by 2029/30. The committee noted the report and the Build Back Plan. Councillor Michael Whitworth questioned the committee's role if the pace of progress did not meet expectations, and Paul Harvey confirmed that updates on progress would be provided. Councillor Denis McLean asked about the biggest issue the council must address to ensure the plan's success, with the auditor highlighting the need for timely and quality draft accounts and evidence. Claire Edwards, Executive Director of Finance and Performance, provided context on the significant efforts made to reach this point, including the impact of COVID-19 and the monumental task of consolidating legacy systems. Councillor David Brackenbury acknowledged the unreal work done by officers in navigating complex issues, including those inherited from previous authorities.

External Audit Progress Update for 2025/26

Paul Harvey provided a verbal update on the progress of the 2025/26 external audit. He reported that the audit was on track, with the majority of samples issued and testing underway. A key issue from the previous year, the audit trail for Section 106 grants, had been addressed, with an audit trail now provided and being tested. The committee noted the update. Councillor Denis McLean inquired about the problem with the Section 106 audit trail, and Paul Harvey explained that the information had been fragmented, making it difficult to allocate year-end spend against specific agreements. Claire Edwards expressed thanks to her finance team and the wider organisation for their timely responses and preparation.

Internal Audit Progress Report

Rachel Ashley-Caunt presented the latest internal audit progress report. Three audit reports had been finalised: Landlord Health and Safety, Member Development, and Accounts Payable. All received opinions of at least moderate assurance, with no significant areas of concern. The Landlord Health and Safety audit found effective arrangements for gas safety, electrical installation condition reports (EICRs), and asbestos management. The Member Development audit noted positive progress with a draft development plan and the introduction of a member development group, with opportunities identified for further feedback and evaluation. The Accounts Payable audit, conducted by Cambridgeshire County Council as part of a shared service, gave a good level of assurance, with some areas noted for improvement where actions had already been taken. Rachel Ashley-Caunt also reported positive progress on the implementation of recommended actions from previous audit reports, with the number of overdue actions reduced from 63 to 31. Councillor Mark Pengelly praised the internal training received, and Councillor Yvonne Evans commented on the asbestos sampling methodology. Councillor David Brackenbury raised concerns about the risks associated with shared services, particularly regarding the Accounts Payable function managed by Cambridgeshire County Council. Councillor Chris Munday sought clarification on what was being tested in relation to EICR data.

The committee noted the internal audit progress report and approved the recommendations.