The Governance and Audit Committee of Cardiff Council is scheduled to meet on 25 November 2025 to discuss directorate performance, treasury management, internal audit, and the National Fraud Initiative. The meeting will cover a range of topics, including updates on the Adults, Housing and Communities control environment, an Ombudsman public interest report, and a financial update with resilience issues. Also on the agenda is the Audit and Investigation Team's progress, the National Fraud Initiative, corporate risk management, and a treasury management half-year report.

Adults, Housing and Communities Control Environment

The committee is scheduled to receive an update on the Adults, Housing and Communities control environment from Jane Thomas, Director of Adults, Housing and Communities. This follows a request from the Governance and Audit Committee for such an update. The report pack includes a presentation, escalated risks, sample amber/red risks, and a senior management assurance statement.

The report pack highlights several key areas within the directorate, including:

• Housing and Communities: Hubs, Advice & Community Services, Homes & Neighbourhoods, Tenant Services, Specialist Accommodation & Support, and Service Improvement.
• Adult Services: Independent Living Services & Community Social Care, Complex Needs, and Strategy, Quality & Commissioning.

The report pack also identifies corporate risks such as safeguarding and the housing emergency, as well as escalated directorate risks including delays in hospital admissions under the Mental Health Act, responsibility for after-care services, and the failure to recruit and retain sufficient care workers.

The report pack also refers to internal audit engagement and response, noting that since the directorate's previous attendance at the Governance & Audit Committee in March 2023, 14 audits have been completed, of which 13 have been effective or effective with opportunity for improvement, and one has been insufficient with major improvement needed.

The report pack also includes a senior management assurance statement, noting that while good assurance levels are demonstrated in both Adult Services and Housing and Communities, there were opportunities for improvement including partnership working and compliance with regulatory requirements.

Ombudsman Public Interest Report – Responsive Repairs Service

The committee is scheduled to discuss a report regarding an investigation by the Public Services Ombudsman Wales into the Responsive Repairs Unit (RRU). The report pack includes a summary of findings and recommendations, as well as the full Ombudsman report.

The report pack notes that the RRU is responsible for repairs to 14,200 council homes, completing over 4,000 new repair works each month. It also notes that the service has faced a number of challenges in recent years, including the pandemic, increased demand, and problems in supply chains.

The report pack states that the Ombudsman has upheld a complaint relating to the repairs service that spans 2021-2024, a period during which the service was under extreme pressure, and that the council has fully accepted the findings.

The report pack also notes that one of the recommendations included in the report is that the council should:

Share the final report with members of its Audit and Governance Committee to enable it to monitor the progress and outcome of the recommendations below.

The report pack states that all learning from the complaint will be incorporated into the Repairs Improvement Plan, and that progress in delivering the Repairs Improvement Plan, including completion of the Ombudsman recommendations, will be monitored through the fortnightly Repairs Improvement Meetings chaired by the Director and regular updates on progress will be made available to Commnity and Adult Social Services Scrutiny Committee.

Financial Update including Resilience Issues

The committee is scheduled to discuss a financial update including resilience issues. The report pack includes a summary of the directorate revenue position, the 2026/27 budget gap, funding assumptions, and next steps.

The report pack notes a net directorate overspend of £7.863 million, but also notes that this is an improvement of £255,000 from month 4. It also notes that children's services have seen an increase in external placements and care costs, while education has seen underspends in schools transport.

The report pack also notes that the estimated additional 2026/27 costs are £57.847 million, and that the total funding is -£20.832 million, resulting in a total of £37.015 million.

The report pack also notes that savings targets have been issued and work is ongoing, with a target of £22 million and £18 million options identified to date.

National Fraud Initiative 2024-25

The committee is scheduled to receive an update from Audit Wales on the National Fraud Initiative (NFI) 2024-25. The NFI is a biennial UK-wide counter-fraud exercise that helps prevent and detect fraud by analysing data submitted by participating bodies.

The report pack notes that the NFI uses data matching to detect and prevent fraud, electronically comparing datasets across and within organisations to identify matches. It also notes that effectiveness depends on thorough assessment and investigation of matches and accurate recording of outcomes.

The report pack also notes that Cardiff Council has 33,223 data matches, with 27,922 in key reports with historically high success rates. The largest areas are council tax single person discount (19,233), creditors (9,756), and blue badges (923), alongside housing, payroll, pensions, and procurement.

Treasury Management Mid-Year Report 2025/26

The committee is scheduled to discuss the Treasury Management Mid-Year Report 2025/26. The report pack informs the committee of the council's treasury management activities since 1 April 2025 and the position as at 30 September 2025.

The report pack notes that the council carries out its treasury management activities in accordance with a Treasury Management Code of Practice for public services, updated by CIPFA in 2021. It also notes that the council's investment priorities remain the security and then liquidity of its Treasury investments, albeit the council also aims to achieve a return appropriate to these priorities.

The report pack also notes that at 30 September 2025, temporary investments stood at £98.3 million, and that the forecast level of overall interest receivable by Cardiff Council from treasury investments for 2025/26 is £4 million.

The report pack also notes that at 30 September 2025, the council had £1,071.9 million of external borrowing predominantly made up of fixed interest rate borrowing payable on maturity.

Audit and Investigation Team - Progress Update

The committee is scheduled to receive a progress report on the work and performance of the Internal Audit and Investigation Teams. The progress report covers the period 1 July to 30 September 2025.

The report pack notes that the Governance and Audit Committee approved the Audit Charter and the risk-based Audit Plan 2025/26 on 25 March 2025. It also notes that the Internal Audit section reports to the Audit Manager, and that organisational independence is maintained.

The report pack also notes that during quarter 2, an unsatisfactory draft audit opinion has been issued for the Pupil Referral Unit (PRU) – Y Deryn Family of Schools. The audit identified control issues in a number of key areas, referred to in Section 2.4 'Critical Findings or Emerging Trends'. The Headteacher at Fitzalan High School, has been assigned oversight responsibilities as part of a support package for the PRU to address control matters.

The report pack also notes that in the year-to date, 29 fewer days were applied than planned due to long term absence at the Investigator level. 152 cases have been identified for investigation so far this year, compared to 94 for the same period last year.