The Audit and Governance Committee of Surrey County Council met to discuss internal audit reports, risk management, complaints, and declarations of interest. The committee reviewed progress on several ongoing issues, including Section 106 developer contributions, the Liquid Logic Integrated Financial Technology (LIFT) system, and the electric vehicle charging contract. Members also approved recommendations related to officer conduct and internal audit standards.

Annual Complaints Performance Report

The committee reviewed the annual complaints performance report for 2024-25, noting an 11% reduction in overall complaint volumes, particularly in highways and education. Councillor Denise Turner-Stewart, the Cabinet Member for Customer and Communities, highlighted the positive impact of transformation programmes and service improvements, as well as improved outcomes with the Local Government and Social Care Ombudsman (LGSO).

However, concerns were raised about the timeliness of stage one responses and a large proportion (31%) of complaints being categorised as other . Councillor Stephen McCormack requested a plan to address this other category to ensure greater reporting transparency.

Councillor Matthew Woods expressed scepticism about the report's language and positioning, questioning why early resolutions are not recorded in the complaints data. He also raised concerns that a reduction in the volume of complaints may have been achieved by reclassifying complaints, or by moving resources from one place to another.

Of the complaints that did reach the LGSO, 104 out of 113 were upheld, with 84 of those relating to education services. The committee discussed how to address these upheld decisions and resolve complaints internally.

The committee recommended noting efforts to improve the complaints process and reduce the overall number of complaints.

Section 106 Internal Audit Update

The committee received an update on the internal audit of Section 106 developer contributions¹, with Sarah Oram, Infrastructure Officer, reporting that significant developments and transformation of the service had taken place since the original audit. All but one of the identified actions had been completed, including a review of roles and responsibilities, a fully resourced and restructured team, and a revised developer contribution guide. A new system to monitor and administer the collection and spending of Section 106 contributions is due to be implemented soon, providing access for all Surrey offices and county councillors.

Councillor McCormack found it difficult to reconcile the documents and asked for clarification on which actions were medium or high priority. He also enquired about process maps, dashboards, and integration with Unit 4².

Councillor McCormack raised concerns about capital schemes that had been completed without using Section 106 funding, questioning the cost to the council of not using this money. He sought assurance that there were no time-limited Section 106 items that would have to be returned.

Kerry James stated that the new CIMS software would give greater transparency and access to Section 106 funds, helping to spend the money correctly and meet deadlines.

The committee agreed to note the contents of the report, acknowledging that one action remained outstanding and was planned for completion by the end of the month.

Single View of a Child: LIFT Internal Audit Update

The committee received an update on the internal audit of the Single View of a Child/Liquid Logic Integrated Financial Technology (LIFT) system. Mary Bergeres, Assistant Director in Children's Families and Lifelong Learning for Systems Transformation, reported on progress since the February 2025 audit. LIFT processes approximately £310 million of payments per annum, covering over 3,000 providers and nearly 9,000 children and young people.

The audit judgment in February 2025 was partial assurance, with five recommendations made. Two high-priority actions were addressed, including a system upgrade in April 2025 and strengthened contract monitoring arrangements with the supplier, System C. The remaining medium-priority actions require migration from LIFT to a contract system that is yet to be fully developed.

Councillor McCormack asked how many services were out of scope of LIFT and how many spreadsheets and non-secure systems were still being used. He requested information about where this was highlighted and what management was doing about it, stating that service provision records being maintained in non-secure systems would be a huge issue .

Councillor Helen Rostill asked about member involvement in the technology board and the timeline for migrating to the contract system.

Councillor McCormack questioned a 98% pass rate in testing, with 2% failing, and asked why the council was pushing ahead with a version 25 refresh. He also asked whether the User Acceptance Testing (UAT) environment mirrored production.

The committee recommended noting the report and the work undertaken by the Children's Families and Lifelong Learning (CFLL) leadership team, while acknowledging that some risks related to the LIFT system remained.

Electric Vehicle Charging Contract Internal Audit Progress

The committee received an update on the progress of the electric vehicle charging contract following the internal audit reported in April 2025.

Councillor Rostill asked how well-used the new EV chargers were and how to encourage on-street charging in rural areas.

Councillor McCormack questioned the financial viability of the project, as the selection of sites appeared to be mandated to look for sites where you have blocks of four or six chargers in one location. He asked if smaller installations could be considered. He also raised the possibility of using lamp columns for EV charging.

Councillor McCormack noted that the internal audit had identified 42 items required for reporting that were not being fully reported. He asked why it took an internal audit to identify key performance indicators and contract terms. He also questioned the evidence behind delivering social value in the scheme.

Councillor David Lewis, in his capacity as a divisional member, said that his experience with the supplier of the Chatterpoint chargers in Cobham had been absolutely dire . He also noted that the boroughs were using different suppliers, which doesn't seem to make a great deal of sense .

The committee recommended noting the progress made in deploying a public electric vehicle charge point network and the improvements made since the internal audit.

Risk Management Six-Monthly Update

David Moody, Head of Strategic Risk, presented the six-monthly update on risk management, highlighting the work being done to support local government reorganisation (LGR). He provided the committee with the top corporate risks for the organisation and the changes over the last six months.

Councillor Woods asked how the council was closing the loop between different areas, rather than sharing everybody's risk register and forcing them to read it.

Councillor Rostill asked how the top strategic risks were linked to the strategic objectives and what the plan was for risk appetite.

The committee noted the report.

Annual Officer Declaration of Interests Report

The committee received the annual officer declaration of interests report for 2024-25. Shella Smith, Director of People and Change, reported that there were 53 submissions in 2024-25, with the most common interests being staff declaring a close relationship or undertaking secondary employment with the county council.

Councillor Rostill asked if any issues had been found and if the secondary employment guidance had arisen because of a declaration of interest or another situation.

The committee recommended noting the officer declarations of interest, the work undertaken to bolster awareness of the requirement to declare potential conflicts of interest, and the recommended improvements.

Officers and Employees Annual Gifts and Hospitality Report

The committee received the annual gifts and hospitality report for 2024-25. Shella Smith explained that officers are generally expected to refuse offers of gifts, but can accept small tokens of goodwill. All gifts and hospitality, whether accepted or declined, must be recorded. Sponsorship of the Stars in Surrey Awards event accounted for almost 90% of the total value of accepted gifts and hospitality.

Councillor McCormack asked about the limits for reporting gifts, noting that some items reported were of very low value. He asked if there was guidance on a minimum value for reporting.

The committee recommended noting the report and the following actions:

• Quarterly reissue of guidance on reporting of gifts and hospitality.
• Targeted communications for groups and teams within directorates where acceptance rates are higher than average.
• Governance workshops for the extended leadership forum and corporate leadership team.
• Completion of a revised e-learning mandatory code of conduct module.

Annual Whistleblowing Report

The committee received the annual whistleblowing report. Shella Smith reported that there were 25 whistleblowing cases reported in 2024-25, up from 20 the previous year. Employee relations issues were the most common type of case reported.

The committee recommended noting the report findings and the future actions to further increase awareness of the whistleblowing services.

Internal Audit Progress Report for Quarter 1, 2025-26

David, from Internal Audit, presented the Internal Audit Progress Report for Quarter 1, 2025-26, highlighting positive findings in the full efficiency savings process and fire and rescue safe and well visits. He noted two lower assurance audit reports and provided an update on progress against agreed actions.

Councillor Woods asked if the council was on track to deliver the audit plan and if there were any major barriers. He also asked if any themes or weaknesses were emerging.

Councillor Rostill asked about the alternative commissioning audit, expressing concern about the findings.

The committee requested that the internal audit report on this item be shared with the relevant select committee.

GIAS Self-Assessment and Quality Assurance and Improvement Plan

Russ presented the GIAS³ Self-Assessment and Quality Assurance and Improvement Plan (QAIP). He explained that the previous public sector internal audit standards had been replaced with global standards from April 2025. The service was found to be fully conforming with the new standards, with minimal activity required to achieve this.

Councillor McCormack asked for a copy of the 440-page assessment. He also questioned why a formal independent risk assessment was not already being done by internal audit.

The committee recommended noting the report and the QAIP and approving the updated internal audit charter.