The Audit and Governance Committee of Gloucestershire County Council met on Thursday 24 July 2025 to discuss a range of reports related to audit activity, risk management, and financial oversight. The committee was scheduled to review the KPMG external audit plan, the annual treasury management report, and several internal audit reports, including the annual report from the Head of Audit Risk Assurance, and the internal audit plan for 2025-26. They were also scheduled to discuss the council's whistleblowing policy and the use of the Regulation of Investigatory Powers Act 2000 (RIPA).

KPMG External Audit Plan

Sarah Brown from KPMG was scheduled to present the external audit plan for Gloucestershire County Council and the pension fund. The plan included an overview of the planned scope, materiality, significant risks, and other audit risks. KPMG identified the valuation of land and buildings, management override of controls, and valuation of post-retirement benefit obligations as significant risks. They also identified the risk of inappropriate expenditure recognition and the adoption of IFRS 16¹ as other audit risks.

Treasury Management Annual Report

The committee was scheduled to consider the Treasury Management Annual Report 2024/25, presented by Paul Blacker, Director of Finance. The report provided an overview of the economic background, borrowing and debt management, and investment activity during the financial year. It noted that the average cost of the council's existing borrowing portfolio during 2024/25 was 4.61%, and the average investment balance was £240.2 million, generating interest of £12.2 million, equivalent to 5.09%. The report also covered compliance with the CIPFA Code of Practice on Treasury Management, prudential indicators, and environmental, social, and governance considerations.

Annual Risk Management Activity Report

Darren Skinner, Head of Planning, Performance & Improvement, was scheduled to present the Annual Risk Management Activity Report. The report provided an update on changes and improvements made to the Risk Management Framework during 2024-2025, and allowed for a review of updates to the Strategic Risk Register. The report noted that a full review of the 2022-2025 Risk Management Policy Statement and Strategy had been undertaken, and a revised Risk Management Framework was adopted by the Audit & Governance Committee in January 2025. The report also detailed planned strategic work for 2025/26, including a full review of the Strategic Risk Register alongside the development of the new Council Strategy.

Annual Report of the Head of Audit Risk Assurance

Piyush Fatania, Head of Audit Risk Assurance (ARA) and Insurance Services, was scheduled to present the Annual Report of the Head of ARA 2024-25. The report provided an opinion on the overall adequacy and effectiveness of the council's internal control environment, and summarised the audit activity from which the opinion was derived. The report noted that during 2024-25, Internal Audit in local government was required to operate in accordance with the Public Sector Internal Audit Standards (PSIAS). The report stated that in February 2025 Internal Audit were externally assessed as Generally Conforms with the PSIAS, the highest level of compliance possible.

Internal Audit Strategy

Piyush Fatania was also scheduled to present the Internal Audit Strategy 2025-26. The strategy included a vision, strategic objectives, and supporting initiatives for the internal audit function. The strategy outlined plans for aligning audit coverage to strategic objectives and key risks, innovative approaches to auditing, workforce planning and talent management, creating financial value to the council, and fostering a culture of continuous improvement.

Internal Audit Charter and Code of Ethics

The committee was scheduled to approve the Internal Audit Charter 2025-26 and note the Code of Ethics, also presented by Piyush Fatania. The charter details the purpose of internal auditing, commitment to adhering to the Global Internal Audit Standards, Internal Audit's mandate, statutory authority, responsibilities, scope of internal audit services and position within the council. The Code of Ethics includes principles and rules of conduct related to integrity, objectivity, confidentiality, and competency.

Internal Audit Quality Assurance and Improvement Programme

Piyush Fatania was also scheduled to present the Internal Audit Quality Assurance and Improvement Programme (QAIP) 2025-26. The QAIP enables an evaluation of the internal audit activity's conformance with the Global Internal Audit Standards, and assesses the efficiency and effectiveness of the internal audit activity. The report included a recommendation to approve the QAIP for 2025-25, note compliance against GIAS in the UK Public Sector for 2025-26, and note the compliance assessment against the Public Sector Internal Audit Standards for 2024-25.

Internal Audit Plan

Piyush Fatania was scheduled to present the Internal Audit Plan 2025-26. The plan reflects the current risk profile of the council, and details the proposed audit activity for the year. The plan is stated in terms of estimated days input to the council of 1,825 audit days.

Annual Report of the Counter Fraud Team

Piyush Fatania was scheduled to present the Annual Report of the Counter Fraud Team 2024-25. The report provided an overview of the team's work and performance during the year, and outlined the team's anticipated workstreams in 2025-26. The report noted that in 2024-25, the team investigated 67 new referrals relating to the council, and also 2 prior cases, which were carried forward from 2023-24.

Annual Review of Whistleblowing Policy

Rob Ayliffe, Director of Policy, Performance and Governance, was scheduled to present the annual review of the council's Whistleblowing Policy. The report provided a summary of whistleblowing cases raised during the period from January 2024 to March 2025, and the outcome of any subsequent action taken. The report also included the results of the 2024 staff survey, which measured staff confidence in the council's whistleblowing arrangements.

RIPA Annual Report

Jason Poole, Head of Trading Standards and Consumer Protection, was scheduled to present the RIPA Annual Report. The report informed the Audit and Governance Committee regarding the council's use of Directed Surveillance and Covert Human Intelligence Sources during 2024/25. The report noted that there were no applications for Directed Surveillance or to use CHIS during the period.

Annual Schools Assurance Statements

Kirsten Harrison, Director of Education, was scheduled to provide the annual overview schools' assurance statement for school audit reports that were finalised since the Audit and Governance Committee in July 2024 up to June 2025. The report noted that Annual Assurance Statements have been received from all schools where recommendations were made except two.

Internal Audit Activity Progress Report

Piyush Fatania was scheduled to present the Internal Audit Activity Progress Report 2025-26. The report informed the committee of the Internal Audit activity progress in relation to the approved Internal Audit Plan 2025-26. The report included the progress against the Internal Audit Plan, the assurance opinions provided in relation to the effectiveness of the council's control environment, and the number of recommendations that remain open from 2022-23, 2023-24, 2024-25 and 2025-26 to date.