The Audit and Risk Committee of Rutland County Council is scheduled to meet on 30 September 2025 to review the council's financial accounts, risk management and governance procedures. The committee will be asked to note reports on financial performance and internal audit activity. The meeting will also address the approval of the council's statement of accounts and the annual auditor's report.

Approval of the Statement of Accounts for 2024/25 and Annual Auditors Report

The committee will be asked to consider and approve the council's statement of accounts for 2024/25, in light of the external audit findings from Grant Thornton. The Report No.86/2025 - Statement of Accounts 2024-25 includes the draft audit findings report, the statement of accounts, and a management representation letter. The external auditors are expected to present their observations and be available to answer questions. The report pack identifies some recommendations for the council following the audit, including:

Lease Register - We noted that rent was not properly forecasted in the lease register, which could lead to inadequate or misleading disclosures in the notes to the accounts. This increases the risk of financial misstatements and non-compliance with reporting requirements. We recommend for the council to thoroughly review and update the lease register to avoid future errors in the lease disclosure. Council Response The Council have updated the lease register and have agreed protocols between Finance and Property services and how to update. The Finance and Property teams have reinstated quarterly meetings between the teams to review the register and other property issues. The Finance team will do a detailed review on a 6 monthly basis to ensure the accuracy of the register. Report No.86/2025 - Statement of Accounts 2024-25

Financial Performance – Emerging Year Risk Management

The committee will be asked to consider the financial risks identified in the 2025/26 Quarter 1 revenue and capital forecast report. Report No.88.2025 - Financial Performance - Emerging Year Risk Management also asks the committee to consider the mitigating actions being taken to manage these risks, and the impact of the risks on the council's medium-term financial strategy. Some of the key risks identified in the report pack include:

• Adults and Health: Demand for services exceeding budget provisions, and changes in the complexity of care packages.
• Places: Potential increases in commissioned transport costs for special educational needs (SEN), and fluctuations in waste disposal gate fees.
• Children and Families: General demand increases and changes in the complexity of cases.
• Law and Governance: Staffing underspends and the sustainability of performance levels.
• Resources: The impact of capital investment on revenue budgets, and potential fluctuations in external audit fees.
• Dedicated Schools Grant (DSG): The report also notes the risk that the council may be required to fund the accumulated deficit and structural deficit from council general funds.

The report also mentions the Fair Funding Review 2.0, which outlines a major reform of local government funding, introducing a simplified system with nine Relative Needs Formulas (RNFs) and a full reset of business rates baselines in 2026/27.

Strategic Risk Register

The committee will receive an update on the council's strategic risk register¹, following its previous review in July 2024. Report No.87.2025 - Strategic Risk Register outlines the progress made in implementing the revised risk management policy and framework, and how strategic risk management is being embedded across the organisation. The report pack states that the strategic risk register is reviewed monthly by the Corporate Leadership Team, with quarterly focus sessions, and is actively discussed at monthly Directorate Management Team meetings. A key development is the application of a Power BI dashboard to visualise the strategic risk register, enabling users to explore risk data in greater depth.

Information Governance Annual Report 2024/25

The committee will be asked to note the Report No.85.2025 - Information Governance Annual Report, which provides an overview of the council's activity in respect of how it has discharged its responsibilities for information governance and compliments, comments and complaints in the financial year 2024/25. The report pack states that in the financial year 2024/25, the council received 1,296 Freedom of Information (FOI) and Environmental Information Regulations (EIR) requests, 78% of which were responded to within the statutory timescale. The report also provides statistics on compliments and complaints received, subject access requests, and data breaches. The report pack notes that the theme of data breaches that occurred in 2024/25 is when sending emails and not using the 'blind copy' function and/or sending information to the incorrect recipients.

Internal Audit Update

The committee will receive an update on the progress made in delivering the internal audit plan for 2025/26. Report No.84.2025 - Internal Audit Update includes the 2025/26 internal audit plan and progress made to date. The report pack states that there are 20 actions which are overdue for completion at the time of reporting, and that there are no actions of high priority which are over three months overdue. The report pack also includes customer satisfaction feedback and information on limitations and responsibilities.