The Audit and Governance Committee of North Northamptonshire Council met on Monday 23 February 2026 to review the Council's financial statements for the 2024/25 financial year, discuss the findings of the external auditors, and approve the Anti-Money Laundering Policy. Key decisions included the approval of the draft Statement of Accounts for 2024/25, noting the Audit Findings Report, and delegating non-material adjustments to the Executive Director of Finance. The committee also approved the Anti-Money Laundering Policy and guidance.

Financial Statement of Accounts 2024/25

The committee was asked to approve the draft Statement of Accounts for the financial year 2024/25. The report highlighted issues and constraints surrounding the production of these accounts, including proposals by the government to address the backlog of unaudited local government accounts. The external auditors, Grant Thornton UK LLP, provided an Audit Findings Report (ISA260 Report) detailing their observations.

The committee resolved to:

• Approve the draft Statement of Accounts for the financial year 2024/25 and the Letter of Representation.
• Receive and note the Audit Findings (ISA260 Report).
• Delegate any non-material adjustments required to the draft Statement of Accounts for the financial year 2024/25 to the Council's Executive Director of Finance and Performance (s151 Officer), in consultation with the Chair of the Audit & Governance Committee.

The reason for these decisions was to comply with statutory requirements relating to Local Government Financial Statements. The report noted that the audit identified seven failures in the short-term debtors sample, with further evidence provided for two of these totalling £3.4m. The remaining five failures, totalling £0.3m, were not adjusted for as they were not considered material individually. The auditors indicated that an unqualified opinion for 2024/25 was unlikely due to prior year balances and comparisons not having been audited. The finance team is working with external auditors to prioritise areas of the statements to move away from a disclaimer opinion.

Anti-Money Laundering Policy

The committee was asked to consider and approve the Council's Anti-Money Laundering Policy and guidance. The report stated that the Council's current policy was adopted in 2025 and must be subject to regular review to ensure it aligns with the latest guidance and best practice. The objective of the policy is to minimise the risk of Council services being exposed to or involved in money laundering activity.

The committee resolved to approve the Anti-Money Laundering Policy and guidance. This decision was made to allow the committee to exercise its duties under section 5.2 of its terms of reference in monitoring and approving anti-fraud and corruption policies.

Partnerships Review

The committee received the annual review of Significant Partnerships, which included the register and proposals for allocating Key Performance Indicators (KPIs), compiling a complete Risk Register for all partnerships, and reviewing the Partnership Governance Framework.

The committee resolved to:

• Approve the proposal to allocate KPIs where appropriate to measure progress towards goals and undertake further work to establish whether for those partnerships without a quantified performance report it is possible to develop one.
• Approve the proposal to compile a complete Risk Register for all partnerships on the Significant Partnerships Register.
• Approve the proposal to review the Partnership Governance Framework to ensure full alignment with the governance outlined in the Council's Constitution and other associated lines of governance.

These decisions were made to comply with section 5.1 (q) of the Committee’s terms of reference to oversee the assessment of the governance and performance of significant partnerships. The review identified 21 significant partnerships across various service areas. It was noted that only 9 of these currently have measurable KPIs, and the development of KPIs is recommended where performance reporting is limited or absent. Common risk themes identified across partnerships included weak stakeholder engagement, gaps in governance, and funding pressures.

Internal Audit Progress Report

The committee received an update on the work of the Internal Audit team and the key findings from seven audit assignments finalised since the last meeting. The report detailed findings on Information Governance, Tenant Engagement, Family Hubs and Start for Life, Schools causing financial concern, Governance of Growth Funding, Financial planning in Public Health, and the 0-19 Public Health Contract Disaggregation/Commissioning Strategy.

The committee resolved to note the Internal Audit progress report and consider the main issues arising. The report indicated that while control environments and compliance were generally moderate, several areas required improvement, including inconsistencies in the management of licensed deficit applications for schools and a lack of formalised processes for tenant engagement effectiveness.

Auditors Annual Report 2024/2025

The committee received the Auditors Annual Report for 2024/25 from Grant Thornton UK LLP. The report highlighted significant ongoing challenges for the Council, particularly in relation to financial sustainability and governance arrangements. Three key recommendations were issued concerning the Medium Term Financial Plan, the Dedicated Schools Grant deficit, and financial reporting processes. Further improvement recommendations were made regarding procurement, counter-fraud reporting, and the Council's relationship with Northamptonshire Children's Trust.

The committee resolved to receive and note the Annual Audit Report. The report concluded that the Council has significant weaknesses in its arrangements for financial sustainability and governance, leading to a disclaimed audit opinion on the financial statements.

Appointment of Vice-Chair

Councillor Andy Sims was appointed as Vice-Chair for the Audit and Governance Committee.