The Audit and Governance Committee of Wiltshire Council met on Thursday 22 January 2026 to review the council's financial statements and governance arrangements. The meeting agenda included updates on the Annual Governance Statement, responses to external auditor questions, and the progress of audits. A significant portion of the meeting was dedicated to discussing the council's Statement of Accounts for 2024/25, including the external audit reports and management's action plans to address identified issues.

Annual Governance Statement Update

The committee was scheduled to receive an update on the improvement actions identified within the 2024/25 Annual Governance Statement (AGS). This update, detailed in Appendix 1 of the report pack, aimed to inform the development of the AGS for 2025/26. The report indicated that areas for improvement were identified in the 2024/25 AGS, but these were not considered failures, rather opportunities for further strengthening the governance framework. Work was already underway to address these areas. The governance of the council is continuously monitored by various committees, including Cabinet, the Audit and Governance Committee, and the Corporate Leadership Team. The Corporate Governance (Officer) Group, chaired by the Monitoring Officer, had considered the appendix to the report, internal governance and programme boards, and oversight of spend savings and delivery.

Responses to External Auditor Suggested Questions

The committee was to consider responses from officers to questions suggested by the external auditor, Grant Thornton, in their Sector Updates report presented on 14 October 2025. These questions, detailed in Appendix 1 of the report Responses to External Auditor Suggested Questions [https://cms.wiltshire.gov.uk/documents/s244706/Appendix%201%20-%20External%20Audit%20questions%20for%20Management%20Jan%202026.pdf], covered themes such as the Spending Review, Fair Funding Review 2.0, public procurement, keeping fit for the future, keeping the leisure estate fit for the future, and an update on asylum seekers. The report indicated that officers had considered these questions and provided responses, demonstrating the council's preparedness for changes and its forward planning to manage financial sustainability risks.

External Audit Reports

The committee was scheduled to receive the External Audit reports from Grant Thornton. This included the Auditors Annual Report 2024/25 [https://cms.wiltshire.gov.uk/documents/s244743/Auditors%20Annual%20Report%20Wiltshire%20Local%20Government%202024-25%20final.pdf], which provides commentary on the council's value for money arrangements. The report assesses arrangements in three areas: financial sustainability, governance, and improving economy, efficiency, and effectiveness. The Audit Findings Report 2024/25 was also expected, although it was noted as a report to follow.

Statement of Accounts 2024/25

A key item on the agenda was the consideration of the Statement of Accounts for 2024/25 [https://cms.wiltshire.gov.uk/documents/s244726/Appendix%20A%20-%20Statement%20of%20accounts%202024-25.pdf]. This included a report from the Corporate Director of Resources (S151 Officer), Lizzie Watkin, and the draft Statement of Accounts itself, along with draft letters of representation for both the Pension Fund accounts and Wiltshire Council accounts, provided in Appendices B [https://cms.wiltshire.gov.uk/documents/s244709/Appendix%20B%20-%20Letter%20of%20representation%20Wiltshire%20Council.pdf] and C [https://cms.wiltshire.gov.uk/documents/s244710/Appendix%20C%20-%20Letter%20of%20representation%20Wiltshire%20Pension%20Fund.pdf] respectively. The committee was asked to consider these documents, ratify that no further amendments were required to the Annual Governance Statement, and approve the AGS. Furthermore, the committee was asked to delegate approval of the Statement of Accounts and letters of representation to the Corporate Director of Resources in consultation with the Chair of the Audit and Governance Committee to allow the conclusion of the audit processes.

Progress Report on Audits and Statement of Accounts 2024/25 and 2025/26

The committee was scheduled to receive a report on the progress made towards the improvement plan for the production of the statement of accounts [https://cms.wiltshire.gov.uk/documents/s244711/Progress%20made%20to%20date%20on%20the%20statement%20of%20accounts%20improvement%20plan_Report.pdf]. This report detailed the council's commitment to getting back on track with delivering future accounts in line with regulation, following a statutory written recommendation issued by the external auditor concerning delays in accounts preparation. Appendix A of this report contained the statement of accounts improvement plan.

Accounting Policies 2025/26

The committee was asked to consider the accounting policies proposed for the 2025/26 financial year [https://cms.wiltshire.gov.uk/documents/s244694/Appendix%20A%20-%20Accounting%20policies%202025-26.pdf]. The report highlighted a change in the CIPFA Code of Practice on Local Authority Accounting concerning revaluations of property, plant, and equipment, which would require valuations every five years or on a rolling five-year programme, supported by indexation in intervening years. The report also noted that there were no other changes to the accounting policies for 2025/26. Critical judgements made by management in applying these policies were also to be noted, as detailed in Appendix B.

Internal Audit Update Report

An update report from SWAP, the council's internal auditors, was scheduled for review [https://cms.wiltshire.gov.uk/documents/s244665/SWAP%20Internal%20Audit%20Progress%20Report%20-%20January%202026.pdf]. This report provided an ongoing opinion on the effectiveness of the council's governance, risk management, and internal control processes. The report indicated a generally reasonable opinion, with some areas requiring improvement. It also highlighted two limited assurance opinions issued for Damp and Mould – General Fund Assets and ICT Disaster Recovery, which had been identified as significant corporate risks. The report detailed the progress on implementing agreed audit actions and provided definitions for assurance opinions and action priorities.

Management Action Plan - Damp and Mould - General Fund Assets

The committee was to receive management action plans in relation to a limited assurance internal audit for Damp and Mould – General Fund Assets. The audit report, found in document 260122 AG Ctte - DM Audit [https://cms.wiltshire.gov.uk/documents/s244592/260122%20AG%20Ctte%20-%20DM%20Audit.pdf], identified issues such as the lack of a dedicated Damp and Mould Policy for General Fund properties, the absence of routine risk assessments and landlord inspections, and the need for standardised training for relevant staff. Management actions were outlined to address these findings, with completion dates set for early 2026.

Management Action Plan - ICT Disaster Recovery

Management action plans concerning a limited assurance internal audit for ICT Disaster Recovery were also scheduled for review. The audit report, detailed in Disaster Recovery Audit Overview [https://cms.wiltshire.gov.uk/documents/s244003/Disaster%20Recovery%20Audit%20Overview.pdf], highlighted concerns including the lack of regular testing of the Disaster Recovery Plan, the absence of risk assessments informing BCPs and DR plans, and the need for a documented Disaster Recovery Team. Management actions were outlined to address these issues, with target completion dates set for March 2026.

Forward Work Programme

The committee was asked to note the Forward Work Programme [https://cms.wiltshire.gov.uk/documents/s244615/2025-26AuditFWP.pdf], which outlines the topics scheduled for discussion in future meetings. Additions suggested during the meeting included a formal report on progress against the 2024/25 audit and actions for the 2025/26 Statement of Accounts, formal responses to suggested questions from Grant Thornton, the Auditors Annual Report from Grant Thornton, a report on the governance procedures around the use of Artificial Intelligence (AI), and a further update on ICT network boundary defences management actions.

Date of Next Meeting

The date of the next ordinary meeting of the committee was noted as 29 April 2026.

Urgent Items

There were no urgent items scheduled for discussion.

Part II - Items during whose consideration it is recommended that the public should be excluded

There were no items scheduled for discussion where the public would be excluded.