The Audit Committee of Cornwall Council was scheduled to discuss a range of important financial and governance matters. Key topics included the review of the 2024-25 Annual Governance Statement and the Statement of Accounts, alongside the External Auditor's Annual Report and Audit Findings Report for the same period. The committee was also set to examine the Information Governance Compliance Report and conduct a review of the Council's Financial Regulatory Framework. Finally, an annual review of the Audit Committee's own effectiveness was scheduled.

Annual Governance Statement 2024-25

The committee was scheduled to consider the draft Annual Governance Statement for 2024-25. This statement, prepared in accordance with the Accounts and Audit Regulations 2015 and the CIPFA/SOLACE Framework, aims to ensure that the Council directs resources in line with agreed policies and priorities, makes sound and inclusive decisions, and ensures clear accountability for resource use to achieve desired outcomes. The statement assesses the Council's compliance with its local Code of Governance and measures its effectiveness against seven core principles. It also highlights any significant governance issues identified during the year and the actions taken or planned to address them. The report indicated that the Joint Commissioning Arrangement for Health and Social Care, identified as a significant governance issue in the previous year's statement, would be carried forward for further action in 2025/26.

2024-25 Statement of Accounts & Audit Findings Report for Cornwall Council

A significant portion of the meeting was dedicated to the review of the 2024-25 Statement of Accounts for Cornwall Council, which includes the Cornwall Pension Fund accounts. These accounts provide a comprehensive overview of the Council's financial activities and position for the year, prepared in compliance with International Financial Reporting Standards (IFRS) and the CIPFA Code of Practice on Local Authority Accounting. The committee was also to consider the External Auditor's Audit Findings Report, which details the work undertaken by Grant Thornton UK LLP in auditing the Statement of Accounts and highlights any issues identified. A key finding from the auditor was a significant weakness in the Council's arrangements for managing the expenditure associated with its Dedicated Schools Grant (DSG) deficit, with a key recommendation made for further action.

External Auditor's Annual Report 2024-25

This report from the external auditor, Grant Thornton, was scheduled to provide commentary on the Council's arrangements for securing economy, efficiency, and effectiveness in its use of resources. The assessment would cover three specified criteria: financial sustainability, governance, and improving economy, efficiency, and effectiveness. The interim report indicated a significant weakness identified in relation to the Dedicated Schools Grant (DSG) deficit, with a key recommendation made for further action. Improvement recommendations were also noted regarding the Housing Revenue Account (HRA) deficit and medium-term financial sustainability.

2024-25 Information Governance Compliance Report

The committee was to receive an annual update on Cornwall Council's compliance with information governance legislation and other requirements. The report indicated a slight increase in compliance with the 20-working day deadline for Freedom of Information (FOI) and Environmental Information Requests (EIR), and a marginal improvement in Subject Access Request (SAR) compliance, with the Council exceeding the Information Commissioner's Office (ICO) target for SARs. However, there was also an increase in information security incidents, with a focus on addressing risk trends through tailored training and communication. The report also confirmed the Council met the National Data Guardian's data security standards for health and care.

Review of the Financial Regulatory Framework

The committee was scheduled to review proposed changes to the Council's Financial Regulatory Framework. This framework, comprising Financial Regulations, Financial Governance Framework, Financial Approvals Process, Financial Procedure Rules, and Financial Guidance, sets out the standards and procedures for managing the Council's finances. Proposed amendments focused on aligning with the implementation of Individual Decision days, updated Leader's Scheme of Delegation for executive decisions, and key decision thresholds, as well as updates related to Capital and Grants.

Annual Review of the Audit Committee Effectiveness

As a standard agenda item, the committee was to undertake an annual review of its own effectiveness. This review was to be informed by CIPFA's Position Statement on Audit Committees in Local Authorities and Police 2022, and a self-assessment checklist. The outcome of this self-assessment was intended to form part of the Audit Committee's Annual Report to Full Council, with any identified areas for improvement to be considered.