The Audit and Governance Committee of West Northamptonshire Council were scheduled to discuss the annual reports for both the committee itself, and for internal audit, as well as the annual governance statement. Also on the agenda was the internal audit progress, the external audit plan for the Northamptonshire Pension Fund, the strategic risk register, and a governance update. The committee were also scheduled to review and approve their work programme.

Audit and Governance Committee Annual Report

The committee were scheduled to consider and approve their annual report for 2024-25, which summarises the work of the Audit and Governance Committee during the financial year. The report was scheduled to be reported to the full council to ensure it was publicly available, in compliance with the Chartered Institute of Public Finance & Accountancy's (CIPFA) position statement on audit committees¹. The annual report includes:

• A foreword by Councillor Anthony Owens, Chair of the Audit and Governance Committee.
• An introduction to the purpose of the committee, which is to:

Provide independent assurance as to the Council's governance, risk management framework and associated control environment;

Provide independent scrutiny of the Council's financial and non-financial performance and oversee the Council's financial reporting process;

Act as an advisory committee to the Council and the Cabinet on audit and governance issues.

• A list of meeting dates and committee members.
• A summary of key activities during 2024-25, including internal audit progress reports, strategic risk register updates, external audit updates, and updates on the Regulation of Investigatory Powers Act (RIPA).
• Training and development activity to support the committee.
• Compliance with the CIPFA statement on audit committees and future developments for 2025-26.
• The Audit and Governance Committee Terms of Reference.

Annual Internal Audit Report and Opinion

The committee were scheduled to consider and note the Internal Audit Annual Report and Opinion for 2024-25. The Head of Audit & Risk Management is required to produce an annual report and opinion on the council's framework of assurance, risk management and internal control.

The report was scheduled to conclude that reasonable assurance could be given regarding the council's framework of governance, risk management and internal control for the financial year 2024-25. This opinion was formed based on planned internal audit work undertaken during the year, related projects, and assurance given by other providers.

The report also noted that the resources available to deliver the internal audit plan were significantly impacted by long-term sickness and recruitment difficulties. Additional external resource was obtained, but some planned audits were not delivered to final report stage.

Annual Governance Statement

The committee were scheduled to endorse the Annual Governance Statement for 2024-25, which is a requisite part of the published statement of accounts. The statement was scheduled to be signed by the Leader of the Council and the Chief Executive.

The Annual Governance Statement is a review of the council's activities to ensure it is carrying out its functions effectively. It is underpinned by the CIPFA / Society of Local Authority Chief Executives (SOLACE) framework, and sets out how the council has complied with the framework principles.

The statement includes information on:

• The purpose of the governance framework.
• The governance framework in place at the council.
• The roles and responsibilities of elected members and officers.
• A review of effectiveness against core principles.
• Audit and inspection assurances.
• Significant governance and forward-looking issues.

Internal Audit Progress

The committee were scheduled to consider and note progress against the 2024-25 and 2025-26 internal audit plans, and the work of the Counter Fraud team and the Risk & Internal Controls team.

Since the last update, the following final audit reports have been issued:

• Limited assurance reports for:
  • General Ledger – Control & Suspense Accounts
  • Chiltern Primary School
• A reasonable assurance report for Adult Social Care – Reablement West
• A reasonable assurance report for Computer Audit – Network Access Control

The full limited assurance reports for 'Business Continuity' and for 'Call Care' were appended, and representatives from the relevant service management were scheduled to attend the meeting.

A summary of the implementation status of recommendations made by Internal Audit was also included.

The Counter Fraud team's progress for Q1 2025-26 was also summarised, including outcomes for cases completed and estimated financial savings.

Grant Thornton Audit Plan for Northamptonshire Pension Fund

The committee were scheduled to note the External Audit Plan 2024-25 from Grant Thornton, the fund's external auditor.

The key risks and areas of focus for Grant Thornton are:

• Valuation of Level 3 investments
• Management override of controls

Planning materiality for the financial statements is £68.25m, 1.89% of the gross investment assets as at 31 March 2024. Planning materiality for the fund account is £14.66m, 10% of prior year gross expenditure.

The total audit fees for the year are £136,134, excluding IAS 19 letters for employer body auditors.

Strategic Risk Register

The committee were scheduled to consider the update regarding residual red risks and minor changes to the risk score wording in the Strategic Risk Register.

The Q1 25/26 Strategic Risk Register has been issued to risk owners for review and update as at 30th June 2025. A request has been made to review the scores and also to review the mitigating actions to ensure they are SMART actions². Of the responses received for the red risks, there has been one change in residual scoring since the last update: SR19 (Network Grid) – From 12 (Moderate impact, Likely likelihood) to 16 (Significant, Likely likelihood).

The wording of the Impact scores have been amended following the last Audit & Governance Committee meeting after information was received for consideration in respect of the risk matrix model used.

Governance Update

The committee were scheduled to consider and note updates provided in the report for information, including:

• The Investigatory Powers Commissioner's Office's (IPCO) Annual Report 2023, which provides an overview of the use of investigatory powers by public authorities.
• The IPCO Inspection 2025, which will take place initially by way of written questionnaire.
• The Government Committee on Standards in Public Life's report, Recognising and Responding to Early Warning Signs in Public Sector Bodies .
• The government's response to a consultation on remote attendance and proxy voting in local authorities.

Work Programme

The committee were scheduled to consider and approve the work programme.