The Governance and Audit Committee of Carmarthenshire Council met on Monday 28 September 2026 to review the Council's financial statements and audit reports. Key discussions included the approval of the 2025-26 Statement of Accounts, which received an unqualified audit opinion, and the Burry Port Harbour financial statement. The committee also reviewed Audit Wales reports on counter-fraud arrangements, highways management, and recruitment and retention challenges, noting areas of strength and recommending improvements.

Audit Wales Audit of Financial Statements Report

Audit Wales presented their report on the 2025-26 Statement of Accounts for Carmarthenshire County Council. The audit work was complete, and an unqualified audit opinion was intended to be issued, confirming the accounts were properly prepared and gave a true and fair view. While the audit identified some technical amendments related to property valuations, IFRS 16 lease accounting, and accumulated absences, these were noted as having no impact on the Council's overall financial position. The committee welcomed the positive outcome and thanked both Audit Wales and the Council's officers for their work. The committee received the Audit Wales Audit of Financial Statements report for Carmarthenshire County Council for 2025/26.

Statement of Accounts 2025/26

The Committee approved the post-audit Statement of Accounts for 2025/26. The report detailed the Council's financial position, including a £1.8m deficit on the Council Fund and a £7.7m deficit for schools, resulting in cumulative school deficit balances of £9.5m. The Housing Revenue Account closed with balances of £11m. The Council's borrowing stood at £434m, with capital expenditure totalling £154m. Concerns were raised regarding the financial position of schools, and it was agreed that the Chair would formally write to the Leader of the Council to express these concerns.

Letter of Representation to Audit Wales

The Committee acknowledged the Letter of Representation prepared by the Director of Corporate Services and the Chair of the Governance and Audit Committee for Audit Wales. This letter confirmed that the Authority had fulfilled its responsibilities regarding financial statement preparation, internal controls, and the provision of information to auditors.

Audit Enquiries to Those Charged with Governance

The Committee received the Council's responses to Audit Wales' enquiries on governance areas impacting the financial statement audit. These responses, largely unchanged from the previous year, detailed the Council's arrangements for managing fraud risks, compliance with laws and regulations, and related party transactions. Updates were provided on ongoing work related to IT systems, including the migration of the financial ledger to a cloud-hosted solution. The Committee also noted the Council's zero-tolerance approach to fraud and its participation in national initiatives like the National Fraud Initiative. The committee approved the responses to the requests made of both management and the Governance and Audit Committee.

Burry Port Harbour 2025/26

The Committee approved the audited Accounting Statement for Burry Port Harbour Authority for 2025-26. The report indicated that the harbour remained operational under the Council's management following the surrender of the lease by the administrators. The net cost of harbour activities for 2025-26 was £99k, fully funded by the Council, with fixed assets totalling £1,480k. Amendments to the accounts were primarily due to utility costs and activity outside the harbour walls, resulting in a slight increase in funding required from the Council.

Audit Wales Reports

The Committee received updates on several Audit Wales reports:

• Audit Wales Work Programme Update: The Committee noted the quarterly update on Audit Wales' work programme and timetable up to 30 June 2026, covering financial and performance audits relevant to the Council. The committee noted the Audit Wales Work Programme Update and Timetable up to 30 June 2026.
• Audit Wales Report: Counter Fraud: The Committee received the report on the Council's counter-fraud arrangements, noting its strong foundations but highlighting areas for improvement, particularly in preventative works and the formalisation of publicising fraud cases. The Council's management response, outlining planned actions, was approved. The committee received the Audit Wales Report: Counter Fraud Arrangement Carmarthenshire County Council (May 2026), noted its findings and recommendations, and approved the Council's response.
• Audit Wales Report: Between a Rock and a Hard Place? Managing Carmarthenshire's Roads: The Committee received this report, which highlighted the challenges of managing the Council's extensive highway network amidst long-term funding reductions. Audit Wales concluded that the Council's approach was increasingly reactive and unsustainable, leading to worsening road conditions on unclassified roads and an increase in potholes. The Council's management response, outlining plans to develop a longer-term framework, strengthen value for money assessments, improve risk management, and enhance workforce capacity, was approved. The committee received the Audit Wales Report: Between a Rock and a Hard Place? Managing Carmarthenshire's Roads (July 2026), noted its findings and recommendations, and approved the Council's response.
• Audit Wales Report: Recruitment and Retention Challenges: The Committee received this report, which found that while the Council understood its recruitment and retention challenges and was taking action, it did not consistently evaluate value for money or share learning across the organisation. The Council's management response, focusing on improving data, exploring partnerships, and developing arrangements to assess value for money, was approved. The committee received the Audit Wales Report: Recruitment and Retention Challenges – The Right People at the Right Time? (July 2026), noted its findings and recommendations, and approved the Council's response.

Carmarthenshire County Council's Draft Annual Report 2025/26

The Committee reviewed the draft Annual Report for 2025/26, which fulfilled statutory reporting duties under the Well-being of Future Generations (Wales) Act 2015 and the Local Government and Elections (Wales) Act 2021. Members welcomed the report's comprehensive nature and clear format, but suggested improvements to readability for certain pages and requested additional contextual information for specific sections. The importance of effectively promoting the report's findings to residents was also emphasised, with officers agreeing to consider ways to strengthen communication. The Committee accepted the draft report's contents prior to its presentation to scrutiny committees. The committee received the draft of the Council's Annual Report and accepted its contents prior to its appearance at scrutiny committee meetings.

Internal Audit Plan Update 2026/27

The Committee received an update on the Internal Audit Plan for 2026/27, noting positive progress with 32% of the plan completed against a target of 30%. No significant emerging risks were identified. The report highlighted a recurring theme of incomplete Declaration of Interest Forms, which would be further examined. Members were reassured by the overall positive progress and the assurances provided on the Pensions Payroll and Payroll systems. The committee received the 2026/27 Internal Audit Plan update report.

Annual Anti-Fraud and Anti-Corruption Report 2025/26

The Committee received the Annual Anti-Fraud and Anti-Corruption Report for 2025/26, which detailed the Council's activities in preventing, detecting, and investigating fraud and corruption. The report highlighted a zero-tolerance approach, ongoing training initiatives, participation in national data-matching exercises, and successful investigations. Members welcomed the comprehensive nature of the report and the Council's commitment to integrity. The committee received the Annual Anti-Fraud and Anti-Corruption Report 2025/26.

Governance & Audit Committee Action Log

The Committee reviewed its Action Log, noting progress on outstanding actions from previous meetings. An additional meeting was scheduled for October 2026 to manage the Committee's workload. The committee received the Governance and Audit Committee Action Log.

Minutes of Previous Meetings

The Committee signed the minutes of the Governance and Audit Committee meetings held on 10 July 2026 and 24 July 2026 as a correct record. The minutes of the Governance and Audit Committee meeting held on 10 July 2026 were signed as a correct record. The minutes of the Governance and Audit Committee meeting held on 24 July 2026 were signed as a correct record.

The meeting concluded with the Chair thanking attendees and noting the next meeting would take place in October 2026.

Attendees:

• Cllr. Giles Morgan (Chair of Council)
• Cllr. Karen Davies
• Cllr. Janet Williams
• Julie James
• Cllr. Philip Warlow
• Cllr. John James
• Cllr. Elwyn Williams
• Cllr. Kim Broom
• Cllr. Alex Evans
• Malcolm MacDonald (Chair)
• Mrs Jayne Walters
• Chris Moore, Director of Corporate Services
• Randal Hemingway, Head of Financial Services
• Helen Pugh, Head of Revenues and Financial Compliance
• Daniel John, Head of Environment & Infrastructure
• Gareth Ayers, Corporate Policy and Partnership Manager
• Alison Wood, People Services Manager
• Luke Howells, Strategic Performance Manager
• Andrew Miller, Treasury and Pensions Investment Manager
• Caroline Powell, Principal Auditor
• E. Ansell, Audit Lead
• J. Blewitt, Audit Lead
• S. Frank, Audit Wales Representative
• K. Havard, Audit Wales Representative
• G. P. Jones, Audit Wales Representative
• E. Lake, Audit Wales Representative
• D. McKenzie, Audit Wales Representative
• R. Owen, Member Support Officer
• J. White, Democratic Services Officer
• D. Hall-Jones, Assistant Democratic Services Officer

Decisions Made:

• The Audit Wales Audit of Financial Statements report for Carmarthenshire County Council for 2025/26 was received.
• The post audit Statement of Accounts 2025/26 for Carmarthenshire County Council was approved.
• The Letter of Representation from the Director of Corporate Services and the Chair of the Governance and Audit Committee to Audit Wales was formally acknowledged.
• The responses to the requests made of both management and the Governance and Audit Committee regarding audit enquiries were approved.
• The audited Accounting Statement for the Burry Port Harbour Authority for 2025-26 was approved.
• The Audit Wales Work Programme Update and Timetable up to 30 June 2026 was noted.
• The Audit Wales Report: Counter Fraud Arrangement Carmarthenshire County Council (May 2026) was received, its findings and recommendations were noted, and the Council's response was approved.
• The Audit Wales Report: Between a Rock and a Hard Place? Managing Carmarthenshire's Roads (July 2026) was received, its findings and recommendations were noted, and the Council's response was approved.
• The Audit Wales Report: Recruitment and Retention Challenges – The Right People at the Right Time? (July 2026) was received, its findings and recommendations were noted, and the Council's response was approved.
• The draft of the Council's Annual Report was received, and its contents were accepted prior to its appearance at scrutiny committee meetings.
• The 2026/27 Internal Audit Plan update report was received.
• The Annual Anti-Fraud and Anti-Corruption Report 2025/26 was received.
• The Governance and Audit Committee Action Log was received.
• The minutes of the Governance and Audit Committee meeting held on 10 July 2026 were signed as a correct record.
• The minutes of the Governance and Audit Committee meeting held on 24 July 2026 were signed as a correct record.