The Audit and Governance Committee of Gloucestershire County Council met on Thursday 24 September 2026 to review the Council's financial statements, governance arrangements, and audit activities. Key decisions included the approval of the 2025/26 Statement of Accounts and the Annual Governance Statement, alongside noting reports on audit findings, treasury management, internal audit progress, and health and safety performance.

KPMG Audit Findings Report and Annual Auditor's Report

Jonathan Brown from KPMG presented the Audit Findings Report and the Annual Auditor's Report for the year ended 31 March 2026. The audit had progressed well, with KPMG anticipating an unmodified audit opinion on the Council's financial statements. A single recommendation was made regarding the authorisation threshold for journals within the new SAP system, with management agreeing to review this. KPMG confirmed its independence. The committee noted that no significant weaknesses were identified in the Council's arrangements for securing value for money.

Annual Governance Statement

The Committee reviewed and approved the Annual Governance Statement for 2025/26. Charlotte Salt, Planning and Coordination Manager, explained that the statement confirmed the Council's governance arrangements remained fit for purpose, while also identifying areas for continued improvement. Nine governance actions were carried forward from the previous year, addressing areas such as Children's Services, the Fire and Rescue Service, ICT transformation, Adult Social Care, the Dedicated Schools Grant deficit, procurement, the ERP programme, data and intelligence capability, and preparations for Local Government Reorganisation. Four new governance matters were identified for 2025/26: preparation for the proposed Public Office (Accountability) Bill, a review of corporate portfolio management and transformation arrangements, the Climate Strategy and Net Zero commitment, and financial sustainability.

Annual Statement of Accounts

The Committee considered the Council's Statement of Accounts for 2025/26, including the Gloucestershire Pension Fund accounts. Kathy Oakey, Chief Accountant, advised that the draft accounts had been prepared and published by the statutory deadline and had been available for public inspection without queries. Amendments arising from the audit review had been agreed with KPMG, and any further amendments were expected to be non-material. The auditor anticipated issuing an unmodified opinion on the Council's accounts, although the Pension Fund audit had outstanding work. The Committee approved the Statement of Accounts and delegated authority to the Deputy Chief Executive and Executive Director of Corporate Resources, Nina Philippidis, and the Chair, Councillor Chloe Turner, to sign the letters of representation on behalf of the Council and the Pension Fund.

Annual Review of Local Government and Social Care Ombudsman Complaints

Rob Ayliffe, Monitoring Officer, presented the annual review of Local Government and Social Care Ombudsman (LGSCO) complaints. During 2025/26, 27 complaints were upheld against the Council, with 26 detailed in the report. The majority of upheld complaints related to Education services, particularly Special Educational Needs and Disabilities (SEND), with six complaints concerning Adult Social Care and three concerning Children's Social Care. All 24 recommendations made by the Ombudsman were complied with within the required timescales. The Committee noted the introduction of the LGSCO's new Complaint Handling Code and the steps being taken to ensure compliance.

Data Protection Officer Annual Report

Nick Holland, Data Protection Officer, presented his annual report, which provided an assessment of data protection compliance, highlighted key risks and developments, and identified priority areas for improvement. The report noted progress in data governance, privacy by design, and information security, alongside challenges such as an increase in unauthorised disclosures due to human error and a decline in staff engagement with e-learning training. The introduction of the Data (Use and Access) Act 2025 was highlighted, which would introduce new requirements for the Council. Key achievements included the adoption of a Data Ethics Framework and improvements to the Data Protection Impact Assessment (DPIA) process. Areas for further improvement included ensuring data protection processes for Local Government Reorganisation (LGR) and strengthening collaboration between the Information Board and the Digital Governance Board.

Treasury Management Update Report

Kathy Oakey presented the mid-year Treasury Management Update Report. The Council's investment income was performing favourably against budget, with an average investment return of 4.49%. However, longer-term borrowing costs remained high, leading the Council to continue using internal borrowing where appropriate. The report detailed the Council's borrowing strategy, investment activity, and compliance with Prudential Indicators. The Capital Financing Requirement was forecast to increase, indicating a potential need for external borrowing in the future, though this could be influenced by the High Needs Support Grant. The Council's treasury management approach continued to prioritise security and liquidity, with investments diversified across counterparties and maturity dates.

Internal Audit Activity Progress Report 2026-27

Thirza Hampshire, Interim Head of Audit Risk Assurance (ARA), presented the Internal Audit Activity Progress Report. The report summarised audits completed to date, assurance opinions provided, and the status of open recommendations. Nine audits had been delivered, with two receiving Substantial Assurance and six Acceptable Assurance. One audit, concerning care homes, nursing homes, and external home care providers, received a Limited Assurance opinion. The report also detailed counter-fraud activities, including 31 new referrals received by the Counter Fraud Team. The Committee noted a significant reduction in overdue recommendations compared to the previous year.

Draft Internal Audit Plan 2026-27

Thirza Hampshire also presented the draft Internal Audit Plan for 2026/27. The plan was risk-based and had been refreshed to reflect the Council's current risk profile, strategic priorities, and assurance requirements. The Committee was asked to note the plan and approve the audits scheduled for the second half of the year.

Annual Health & Safety Report

Stuart Heggs, SHE Manager, presented the Annual Health and Safety Report. The report indicated reasonable assurance that arrangements were in place to manage health and safety risks, with strategic risks remaining low and no Health and Safety Executive interventions. Incident reporting had increased, particularly in libraries and Children's Services, which was attributed to improved reporting culture and additional reporting categories rather than a worsening safety position. RIDDOR-reportable incidents remained unchanged. Key priorities for 2026/27 included strengthening corporate health and safety governance, improving DSE assessment completion rates, and continuing focus on violence and aggression.

Audit & Governance Committee Work Plan

Andrea Griffiths, Senior Democratic Services Adviser, presented the Audit and Governance Committee's work plan. The Committee noted the plan, which largely reflected the annual audit and governance cycle, and was advised that suggestions for additions or changes could be raised with the Chair.

Exclusion of Press & Public

The Committee resolved to exclude the press and public from the meeting for the following agenda items due to the likely disclosure of exempt information.

Exempt Internal Audit Progress Report

The Committee discussed an exempt Internal Audit Progress Report, requesting that appropriate feedback be relayed due to concerns about the current situation and the need for measures to be put in place. The report was noted.

The meeting concluded at 12:33 pm.