The Audit and Governance Committee met on 9 July 2025, to discuss the draft annual governance statement, the draft statement of accounts, the Surrey Pension Fund external audit plan, and the Regulation of Investigatory Powers Act 2000 annual report. The committee approved the Surrey Pension Fund Audit Plan 2024/25 and the delegation of decisions regarding audit fee variations. The committee also agreed to commend the draft annual governance statement, subject to minor changes, for publication with the council's statement of accounts.

2024/25 Draft Annual Governance Statement

The committee reviewed the draft annual governance statement, which summarises the council's governance arrangements for the financial year ending 31 March 2025. Councillor David Lewis, Cabinet Member for Finance and Resources, suggested including more detail about the role of the Mayor in the document. He noted that the current draft only gives a very fleeting reference to the Mayor, and that there should be more information about the strategic infrastructure projects that would fall under the Mayor's responsibility.

There was discussion about how much detail could be included, given that the government had yet to make a decision about the functions that would be devolved to the Mayor. It was noted that a white paper and a bill were expected to be published soon.

Despite the uncertainty, Councillor David Lewis argued that it would be helpful to include something about the functions that the government was proposing to transfer to the Mayor. He suggested adding a line stating that the government was proposing these functions be transferred over to the Mayor.

It was agreed that the annual governance statement should be commended for publication with the council's statement of accounts, subject to a couple of minor changes.

Draft Statement of Accounts 2024/25

The committee reviewed the draft statement of accounts for 2024/25, which had been published on 30 June, in accordance with the statutory deadline. The committee noted that the format and content of the statement of accounts is extremely prescriptive . One of the attendees thanked the team for putting the accounts together, saying it was a complete nightmare trying to do so, especially under the Service and Infrastructure Planning for Code of Guidance. The committee agreed to note the draft statement of accounts.

Surrey Pension Fund External Audit Plan 2024/25

The committee considered the Surrey Pension Fund External Audit Plan 2024/25. The committee approved the plan, and also approved the Pension Fund Committee agreement delegating decisions regarding audit fee variation to the Director of Pensions, LGPS Senior Officer, in consultation with the Chair of the Pension Fund Committee, who is Councillor Richard Tear.

The Deputy Head of Accounting and Governance noted that the valuation of Level 3 investments was a significant risk, as in previous years. A representative from EY, the council's external auditor, noted that the three fraud/significant risks identified remained the same as in previous years. He also noted a new inherent risk, 'Classification of balances included within current assets and current liabilities', which followed from incorrectly classified 2023/24 material balances.

Regulation of Investigatory Powers Act 2000 - Annual Report

The committee considered the annual report on the council's use of the [Regulation of Investigatory Powers Act 2000 (RIPA)]¹. The report provided the Audit and Governance Committee with oversight of the council's use and compliance with RIPA. A committee member asked if the council only uses RIPA for covert surveillance of minors. An attendee said that it does not involve Buckinghamshire at all. She added that the report is in line with usual practice. The committee agreed to note and consider the covert investigative tools available to the council under this legislation, and the safeguards in place to ensure that these tools are used lawfully and proportionately. They also agreed to note the council's use and compliance with RIPA, and to receive similar reports annually.

Recommendations Tracker and Work Plan

The committee reviewed the recommendations tracker and work plan. Matthew Woods, Independent Member, asked about the IT security procedure, and why it seemed to be on a longer review cycle. An attendee said that they would check with the counter-fraud manager, but that the anti-fraud and corruption strategy doesn't tend to change significantly, so it would normally be updated where there is some national development in that area. They added that they normally used a three-year cycle for review, but that it appeared to be four years on the tracker. Matthew Woods, Independent Member, also asked about the IT security review, and why that was every four years. It was agreed that a written answer would be provided.

The committee agreed to monitor the progress on the implementation of actions recommendations from previous meetings, and to note the work plan and any changes to it.