The Audit, Standards and Governance Committee of Bromsgrove District Council met on 29 September 2025 to discuss several key reports and updates. These included the annual review from the Local Government Ombudsman, an audit update, internal audit progress, financial compliance, and the annual governance statement. The committee also planned to discuss the role of the Risk Champion and the committee's work programme.

Annual Governance Statement

The committee was scheduled to review the Annual Governance Statement (AGS) for 2024/25. The AGS is required by the Accounts and Audit Regulations 2015¹ and is an overview of the processes and procedures adopted by the council to manage its affairs. The statement was scheduled to cover:

• The scope of responsibility of Bromsgrove District Council
• The purpose of the governance framework
• The governance framework itself
• A review of the effectiveness of the governance framework
• Significant governance issues

The report noted that the council had received 'disclaimed opinions' from external auditors for audits up to 31 March 2023. Actions in response to these issues were scheduled to be discussed, including the impact of the government's backstop legislation to close accounts.

External Audit Update

The committee was scheduled to discuss the audit status report for the year ended 31 March 2024. The report from Ernst & Young (EY) noted delays in the audit process due to a number of factors, including the late publication of draft accounts and challenges in obtaining information from management.

The report also summarised significant accounting and auditing matters, including:

• The risk of misstatement due to fraud or error
• The risk of fraud in revenue and expenditure recognition
• The valuation of pension assets, liabilities and disclosures
• The valuation of property, plant and equipment

EY's report stated that it was required to consider whether the council has made proper arrangements to secure economy, efficiency and effectiveness in its use of resources. It noted that its value for money planning and risk assessment remained in progress, and that a final risk assessment and findings would be reported to a future meeting of the committee.

The report identified a number of risks of significant weakness in value for money arrangements, including:

• A section 24 recommendation regarding the council's financial systems and governance arrangements
• A significant weakness regarding the council's organisational capacity
• Correspondence received from a member of the public concerning governance arrangements
• Potential non-compliance with VAT laws
• Capital budget underspends

Financial Compliance Report

The committee was scheduled to receive a report setting out details of delivery against key financial requirements. The report, titled Accounting Policies Report, was set to include updates on the delivery of the 2024/25 accounts and the auditing of the 2023/24 accounts.

The report also noted that the council had delivered against all of the deadlines for key legislative deliverables circulated by the government for the 2025/26 financial year, with the exception of the Whole of Government Accounts Cycle 1.

The report also included an update on the Financial Stability Plan, which was developed following the successful completion of the Financial Improvement Plan.

Annual Review from the Local Government Ombudsman

The committee was scheduled to be informed of the annual summary of complaint statistics issued by the Local Government and Social Care Ombudsman (LGSCO) for the period ending 31 March 2025.

The statistics for Bromsgrove District Council recorded by the LGSCO were:

• Number of complaints received: 3 (2 relating to Planning and Development and 1 relating to Housing).
• Number of complaints decided: 6 (4 relating to Planning and Development and 2 relating to Housing).

Of the six decided cases, one was upheld, relating to home adaptations under a Disabled Facilities Grant where both the District Council and Worcestershire County Council were found to be at fault. The Ombudsman's recommendations to remedy this included apologising to the customer, making a payment of £2,000 in financial redress, and refunding the cost of private occupational therapy and architect reports.

Internal Audit Progress Report

The committee was scheduled to receive an update on Internal Audit's progress towards meeting its objectives in the audit plan for 2025/26. The report noted that the plan was slightly behind schedule owing to its approval being later than usual this year, but that there were sufficient resources in place to deliver the rest of the plan in time for the annual Internal Audit opinion.

The report also provided an update on performance indicators, including:

• Delivery: % of audit days delivered by Year End
• Productivity: % of available time spent on productive audit work
• Effectiveness: % of agreed recommendations implemented by the target date
• Customer Satisfaction: % of Post Audit Questionnaires which have rated the service as Very Good or Good

The report noted that there were 22 outstanding internal audit recommendations, of which 1 High and 3 Medium risk recommendations were overdue.

Risk Champion

The committee was scheduled to consider the annual appointment of a Risk Champion. The Risk Champion acts as an advocate for effective risk management within the council, supporting the development of a strong risk-aware culture. The key responsibilities of the role include promoting awareness of risk management, liaising with senior officers on risk-related matters, and reviewing the council's strategic risk register and risk management framework.

Audit, Standards and Governance Committee Work Programme

The committee was scheduled to consider its work programme for 2025/26. The proposed work programme included standing items such as the Standards Regime Monitoring Officer's Report, External Audit Backstop Report, Internal Audit Progress Report, Financial Compliance Report, Risk Management Report, Risk Champion Update, and Committee Work Programme. The committee was also scheduled to discuss a Whistleblowing Policy Update and a Capital Strategy.