The Audit and Governance Committee of Gloucester City Council met on Monday 14 September 2026 to review internal audit activity, counter fraud measures, and the council's financial statements and governance. Key decisions included the approval of the provisional external audit plan for 2025/26 and noting the draft statement of accounts for 2025/26.

Internal Audit Activity Progress Report 2026/27

The committee received an update on the progress of the Internal Audit Plan for 2026/27. Spencer Williams, Principal Auditor, presented the report, highlighting that three pieces of work had been delivered since the last meeting, with two receiving a substantial grading and one an acceptable grading. Councillor Alwin Wiederhold raised concerns about the management of public open spaces, specifically questioning whether management systems differentiate between emergent and planned work. He also queried the risk associated with an outstanding procurement item from 2023. Councillor Victoria Miller, Chair of the Audit and Governance Committee, asked about the terminology incident response in relation to IT incidents. Councillor Mike Barker sought assurance on the realistic delivery dates and clear ownership of outstanding recommendations, noting that 24 actions remained open. The committee resolved to accept the progress against the Internal Audit Plan.

Counter Fraud Team Annual Report 2025/26 and Draft Annual Action Plan 2026/27

The committee reviewed the annual report on counter fraud activities for 2025/26 and the proposed action plan for 2026/27. Spencer Williams noted that while specific questions about counter fraud could not be answered due to the absence of a Counter Fraud Team representative, he could take questions away for a written response. Councillor Terry Pullen, Leader of the Labour Group, noted a high number of whistleblowing issues and questioned if this was unusually high, also asking about notable successes and the impact of AI on counter fraud efforts. The committee resolved to take reasonable assurance that the counter-fraud team is operating effectively and approved the action plan for 2026/27.

Q1 Counter Fraud Team Progress Update 2026/27

An update on the Counter Fraud Team's progress during the first quarter of 2026/27 was presented. The key message was that the overall position was stable, with the team actively continuing to provide assurance through investigation, prevention, intelligence sharing, and support for strategic projects. Councillor Pullen noted that there were no whistleblowing disclosures relating to the 2026/27 year and questioned what this signified. The committee resolved to maintain the progress of the update.

Provisional External Audit Plan 2025/26

Mark Hodgson, Audit Partner from Ernst & Young (EY), presented the provisional audit plan for the 2025/26 audit. He highlighted that this plan related to the financial year just gone and was issued before testing had begun, indicating a positive sequencing of work. The plan focused on auditing in-year transactions and elements of the balance sheet. Councillor Fuller asked for clarification on walkthroughs within the timetable, which Mr Hodgson explained as understanding the flow of financial transactions through key systems and controls. Councillor Buckley inquired about audit fees and potential variations, asking what officers could do to reduce the likelihood of fee variations. Alison Turner, Head of Finance & Resources, and Councillor Declan Wilson, Deputy Leader of the Council and Cabinet Member for Resources, discussed the council's efforts to work closely with auditors and provide information promptly. The committee resolved to approve the external audit plan.

Rebuilding Audit Assurance - Risk Assessment Report 2025/26

EY presented their risk assessment report for 2025/26, focusing on rebuilding audit assurance for years that had not been fully audited. Mark Hodgson explained that a full unqualified opinion could not be achieved in 2026/27 due to the four previous years with disclaimed opinions. The primary focus for 2025/26 would be on in-year transactions. Councillor Andrew Lewis, Vice-Chair of the Audit and Governance Committee, raised concerns about the impact of Local Government Reorganisation (LGR) on the ability to provide non-qualified assurance to a new unitary authority. Mr Hodgson explained that audit firms' contracts were extended to 2030-31, or until a vesting date for a new authority if LGR proceeded. Councillor Peter Hall asked about the cost and difficulty of revaluing assets to improve the audit position, and whether it was worth living with qualified audits until then. The committee resolved to note the risk assessment report.

Draft Statement of Accounts 2025/26

Alison Turner presented the draft Statement of Accounts for 2025/26, noting that this was the first time the council had published its accounts by the statutory deadline since 2021, which was an excellent achievement for the team. Councillor Burkitt thanked Alison Turner and her team for their work. Councillor Hyman echoed these thanks and highlighted the importance of the new monitoring process introduced in December. Alison Turner explained that budget officers were buying into the process and that finance business partners were meeting with them monthly. She also discussed the challenging financial situation and the need for realistic budgeting and accountability for overspending or under-collecting income. The committee resolved to note the draft statement of accounts.

Draft Annual Governance Statement 2025/26

Alison Turner presented the draft Annual Governance Statement (AGS) for 2025/26, noting changes to the structure to improve clarity. She explained that many actions from the previous year's statement had not been delivered due to financial challenges. Councillor Biedel noted that only one target date was in the past and that progress was being made, but acknowledged that finance capacity was behind target. Councillor Bough suggested a rag-rated update against improvement programmes for future meetings. The committee resolved to approve the draft annual governance statement.

Treasury Management Year-End Annual Report

Richard Wilders introduced the treasury management report, highlighting the council's policy to keep borrowing as low as possible by keeping investments low. He noted that the report was initially omitted from the agenda but published as an urgent addendum. The committee resolved to note the contents of the report. Richard Wilders also mentioned that treasury reports, including a half-year review, quarter three review, and treasury capital strategies, would need to be slotted into the work program.

The Chair, Councillor Victoria Miller, noted that the counter fraud team had offered training and that an independent member, Julie, had been proficiently appointed and would attend training in November. The next meeting was scheduled for Monday, 9 November 2026.