The Newcastle upon Tyne Audit and Standards Committee met on 30 September 2025 to discuss standards matters, council partnerships, risk management, and audit reports. The committee noted the findings of a completed investigation into complaints against councillors, reviewed the strategic and corporate risk monitoring report, and received updates on internal and external audit activities. Additionally, the committee agreed to a process for evaluating its own effectiveness.

Complaints Against Councillors

The committee reviewed the outcome of an investigation into alleged breaches of the council's code of conduct for members. The complaint related to allegations that a councillor failed to treat a complainant with respect, bullied or harassed them, and brought the council into disrepute. Craig Winter, Assistant Director Legal Services, submitted a report stating that the external investigation, conducted by Bevan Brittan LLP¹, found no breach of the code. The Investigating Officer considered comments from the Subject Member but made no change to the substance of his report or the findings. Both Independent Persons agreed with the conclusion and the Monitoring Officer closed the matter. The committee noted the report.

Strategic and Corporate Risk Monitoring Report

Phil Slater, Audit Risk & Insurance Service Manager, presented the Strategic and Corporate Risk Monitoring Report, assuring the committee that significant risks and opportunities were being monitored and addressed.

A key point arising from the report was the addition of a new risk related to Private Finance Initiative (PFI) contract expiry and asset transfer. The council has a portfolio of PFI projects, and as these contracts reach the end of their term, there is a risk of service disruption, increased costs, and reputational damage if the transfer of assets and services is not effectively managed. The risk was assessed as having a medium likelihood and critical impact, resulting in a Red RAG assessment². The Chief Finance Officer will be the designated risk owner, with officers from individual service areas supporting the management of the risk.

The committee also undertook a 'deep dive' into the workforce risk, which describes the failure to attract and/or retain sufficient diverse, and suitably qualified candidates into council positions. The risk assessment remains Amber, with additional actions put in place which support workforce diversity.

The committee resolved to receive the report, continue to monitor the equalities and diversity risk, and receive a written response regarding concerns about quarterly budget reporting differences.

Prevent Duty

Councillor Alistair Chisholm and the committee noted a report from C Herriot, Director of City Operations, Neighbourhoods & Regulatory Services, regarding the Prevent Duty³. The report highlighted that the Home Office had reduced Prevent funding for Newcastle by 50%, resulting in the loss of the Prevent Education Officer post. However, internal funding had been identified to retain the Prevent Coordinator post.

The committee noted the report and the change in funding status, as well as the new staffing arrangement to mitigate the risk.

Council Partnerships

Anthony Francis, Service Manager Financial Accounting, presented a report providing an overview of external entities the council is currently in partnership with. The report provided transparency and overview of external entities the Council is affiliated with and their respective performance in meeting the financial accounts filing requirements as required by Companies House. The council holds interests in entities such as Your Homes Newcastle Limited, New Tyne West Development Company LLP, Newcastle Science Central Holding Company Limited, Regenerate Newcastle Asset Co Limited, Tynexe Group Entities and Crossco (1467) Limited. The Shareholder Board continues to oversee governance with regular reviews and monitoring arrangements to ensure that any issues arising from these entities are identified and addressed in a timely and effective manner.

Most entities have filed their statutory accounts on time, but a small number have experienced delays. These cases are under review and are be followed up through the Shareholder Board to understand the circumstances leading to delay to ensure that any issues are resolved given the importance of timely reporting.

The committee reviewed and commented on the report, noting that the Shareholder Board continues to monitor performance, governance, and compliance across these entities, and endorsed the continuation of this annual reporting process.

Internal Audit Progress Report

P Slater, Audit Risk & Insurance Service Manager, presented the Internal Audit Progress Report, providing details of internal audit activity since the previous committee meeting. As of the meeting date, 20% of the audit plan was complete, with 23 recommendations made, of which 39% had been implemented. The report also included details of investigation work related to housing fraud, with 34 cases investigated and 9 cases closed.

The committee noted the report, considered details of audit activity, and noted fraud-related activity.

Evaluation of the Effectiveness of the Audit & Standards Committee

Anthony Francis presented a report outlining the process for conducting an annual evaluation of the effectiveness of the Audit & Standards Committee. The evaluation will involve a survey of members and contributors to the committee, as well as a skills and knowledge self-assessment for committee members. The results of the evaluation will be used to identify areas for development and to inform future training plans.

The committee reviewed the proposed content of the assessments and commented on the process for issuing, conducting, and collecting the results.

Audit & Standards Committee and Scrutiny Committees Work Plans Update

Anthony Francis presented a report updating the committee on the current work plans for the Audit & Standards Committee and for Scrutiny committees. The report aimed to improve awareness and communication between the committees and to minimise potential duplication of work. The committee reviewed the attached work plans, identified potential areas for co-operation, and noted the link member between Scrutiny and Audit & Standards Committee to raise any relevant issues.

Standards Updates

The committee were scheduled to receive Standards Updates, including the Committee on Standards in Public Life Annual Report 2024-25 and the Government's proposed Commission for Integrity and Ethics. However, according to the agenda, members were to note that the report would be circulated on a supplemental agenda, in accordance with the Local Government (Access to Information) Act 1985.