The Audit Committee at Tonbridge and Malling Borough Council is scheduled to meet on 29 September 2025 to review treasury management, risk management, audit findings, and internal audit progress. The committee will consider recommendations to be made to the council and cabinet, as well as reviewing internal processes and strategies. Matters for consideration in private include an insurance claims update and any urgent items.

Annual Audit Report

The committee will consider the Annual Audit Report 2024/25 from Grant Thornton UK LLP, the council's external auditors. The auditors are required to assess the council's arrangements for securing economy, efficiency and effectiveness in its use of resources.

The report covers three areas:

• Financial sustainability
• Governance
• Improving economy, efficiency and effectiveness

The report pack includes a copy of the Auditor's Annual Report Year Ending 31 March 2025. The report states that in 2023/24, a key recommendation remained concerning the role of procurement within operational aspects of the council's work, but that the auditors now consider that this recommendation has been implemented in full and no further action is required. The report also makes an improvement recommendation in respect of the response to the Internal Audit recommendation on the Agile Software implementation. The council's management response is included in the report:

Recommendation The Council should follow through on the commitments that is has made in response to Internal Audit findings in review of the Agile software implementation. Management should ensure that progress against each improvement action is regularly reported to Members. Relates to Economy, efficiency and effectiveness

Management actions In addition to this improvement action, Internal Audit also carried out a review, an action plan has been prepared with named officers and regular updates both to the Cabinet Member responsible and wider Committee Membership.

Responsible Officer: Eleanor Hoyle on behalf of Corporate Management Team

Due date: March 2026

Treasury Management Performance

The committee will receive a Treasury Management Performance Update and Mid-Year Review for 2025/26. The report provides an update on investments undertaken during the period April to July of the current financial year and incorporates a mid-year review of the Treasury Management and Annual Investment Strategy for 2025/26. The report includes a recommendation that the council endorse the inclusion of Ethical Investments to the existing parameters intended to limit the council's exposure to investment risks. The report also provides a list of investments held on 31 July 2025, and a copy of the lending list as of that date. The council takes advantage of MUFG's (Mitsubishi UFJ Financial Group) benchmarking service, which enables performance to be gauged against MUFG's other local authority clients. As at 30 June 2025, the council's return was 4.43%, in line with the local benchmarking group average of 4.36%. The report notes that Federated Hermes announced that small-value investments will be excluded from the merger of the Hermes Property Trust. Consequently, the council, along with other minority stakeholders, will have its shares realised and paid out upon the successful completion of the merger. The capital investment expected to be returned from Federated Hermes is in the region of £908,000.

Risk Management

The Management Team will provide an update on the risk management process and the Strategic Risk Register¹. An update is also provided in respect of the work being undertaken within the council to champion risk management. The report includes an executive summary of the RED risks, and a full update of the current strategic risks and how they are being managed. As of the July meeting of the committee, the risks that were categorised as RED were:

• Achievement of Savings and Transformation Strategy
• Failure to agree a Local Plan
• Managed exit from the Agile System

The Devolution / Local Government Reorganisation risk remains at an amber level at this stage.

Internal Audit and Counter Fraud

The committee will receive the Internal Audit and Counter Fraud Quarter 1 Progress Report. The report updates members on Internal Audit and Counter Fraud activities, and requests approval for changes to the 2025/26 Internal Audit Plan. The report notes that the Counter Fraud team have been shortlisted for a CIPFA 2025 Public Finance Award in the Outstanding Fraud Prevention, Detection and Recovery category in respect to the work done on developing a counter fraud culture. The report also includes a summary of the work completed by Internal Audit, including the following:

• Digital Strategies and Automation
• Facilities Management / Building Maintenance
• Starters and Leavers
• Parking Enforcement
• UK shared Prosperity, Rural Prosperity Fund review

Statement of Accounts

The committee will review the Statement of Accounts 2024/25 – Audit Findings Report. The unaudited Statement of Accounts was presented to the Audit Committee in July 2025. This report presents the Audit Findings Report following the review carried out by the external Auditors, Grant Thornton. The report includes two recommendations for the council identified during the audit:

• Bank Reconciliation
• Related Parties Disclosure Note – Declaration of Interest

The report also notes that a post Balance Sheet event has been included in the final version of the Accounts, detailing the capital loss of £92,000 as a result of the early withdrawal from the Hermes Property Fund.

Other Matters

The agenda also includes the following items:

• Guidance on the Conduct of Meetings
• Apologies for absence
• Notification of Substitute Members
• Declarations of interest
• Minutes from the meeting of Audit Committee held on 21 July 2025
• Urgent Items
• Exclusion of Press and Public
• Insurance Claims Update (private)
• Urgent Items (private)