Agenda and draft minutes

The Democratic and Civic Officer opened the meeting and explained that, as there was currently no Chairman or Vice Chairman of the Governance and Audit Committee, the first item of business for the Committee was to appoint a Chairman for the meeting. Proposals were duly sought.

A Member of the Committee proposed Cllr Bunney, this was duly seconded.

A Member of the Committee proposed Cllr Dobbie, this was duly seconded.

A Member made a request for a recorded vote, which was duly seconded.

With no other proposals forthcoming, on being put to the vote, votes were cast in the following manner:

In favour of Councillor Bunney: Councillors Barrett, Bierley, Lawrence.

In favour of Councillor Dobbie: Councillors Dobbie, Velan.

Abstain: Councillor Bunney.

With a total of three votes cast in favour of Councillor Bunney, two votes in favour of Councillor Dobbie, and one abstention, it was

RESOLVED that Cllr Bunney would be the Chairman for the duration of the meeting

Up to 15 minutes are allowed for public participation. Participants are restricted to 3 minutes each.

There was no public participation.

To confirm and sign as a correct record the Minutes of the Meeting of the Governance and Audit Committee held on 10 June 2025.

RESOLVED that the Minutes of the Meeting of the Governance and Audit Committee held on 10 June 2025 be confirmed and signed as a correct record.

Members may make any declarations of interest at this point but may also make them at any point during the meeting.

There were no declarations of interest at this point in the meeting.

Matters Arising schedule setting out current position of previously agreed actions as at 21 July 2025.

The Democratic and Civic Officer drew the Committee’s attention to the matter arising titled ‘Audit of Procurement Lincolnshire’; it was explained that a representative of Lincolnshire County Council would be attending the 30 September 2025 Committee meeting to update the Committee on the work of Procurement Lincolnshire. Members were encouraged to submit questions ahead of time via email to be passed on to the representative.

With no comments or questions, the Matters Arising Schedule, setting out the position of previously agreed actions as at 21 July 2025, was NOTED.

The Committee heard from the Monitoring Officer, who introduced the Quarter One review of the Strategic Risk Register, as at June 2025. It was noted that the register had been categorised into risks concerning the Council, its people, its place, and overarching risks. Since April 2025, it was stated that amendments had been made to the register. Specifically, Risk CO3 had been revised to state that ‘the quality of services did not meet realistic customer expectations’, following feedback received from the Committee. Additionally, Risks OV1 and OV6 had been assigned new risk owners, namely Mr Bill Cullen, Interim Head of Paid Service. Members were invited to provide feedback or raise questions, which would be relayed to the Management Team.

A Member of the Committee raised concern regarding the inherent score of 12 associated with the delivery programme, as referenced on page 58 of the report pack. It was hoped that this score would be revised following the appointment of the new Chief Executive Officer and Leader of the Council.

Concern was expressed by several Members of the Committee regarding the current absence of both a Leader of the Council, and a Deputy Leader. A Committee Member remarked that the simultaneous removal of both leadership figures was an abnormal occurrence, particularly given the recent appointment of an Interim Head of Paid Service.

Queries were raised regarding planning surrounding the Council’s strategic direction. In response, the Monitoring Officer confirmed that the current Corporate Plan had been approved prior to the last election and was intended to run from 2023 to 2027. It was stated that Officers continued to progress business as usual and work towards current projects. The Monitoring Officer proposed that the matter be raised with the Management Team and, depending on developments at the full Council meeting scheduled for 8 September 2025, consideration be given to adding a related item to the Strategic Risk Register. This would then be brought before the Governance and Audit Committee at its next meeting on 30 September 2025. The Committee were assured that while Officers could not determine political leadership, the implications of the current situation would be monitored and assessed.

The Chairman concluded that while the Committee was not in a position to set risks directly, it could influence the strategic direction and ensure that emerging concerns were appropriately considered.

A query was raised regarding the Auditors’ perspective on the delay to strategic plans. The Internal Auditor responded that the matter was not included within the current audit plan and therefore fell outside the scope of their formal assessment. It was stated that the issue was likely to be considered a political matter and not one on which Auditors would be expected to comment directly.

From an External Audit perspective, it was clarified that arrangements relating to value for money would be considered. Although the current focus remained on the period ending 31 March 2025, subsequent developments would be taken into account. The Chairman summarised that the absence of strategic planning might  ...  view the full minutes text for item 16.

Members of the Committee heard from the Internal Auditor, who introduced the report. It was explained that the report provided an update on progress made throughout the year; the Committee were also assured that the audit programme remained on track for completion by March 2026. It was noted that one report had been finalised since the last meeting, the Follow-Up Audit had also been completed and was scheduled for presentation at the September 2025 meeting. It was also stated that three additional audits had been scoped and were progressing as planned.

The finalised report related to a Fraud Risk Assessment conducted by RSM. It was recalled that the initial assessment had identified several actions and recommendations, which had been incorporated into the audit plan for follow-up. Reasonable assurance had been provided, with three medium and one low priority management actions agreed. It was highlighted that these actions focused on the formal tracking of recommendations, including the assignment of owners, deadlines, and monitoring processes. At the time of the audit, it was explained that 18 actions remained outstanding, however, it was reported that a tracker had since been implemented, and progress was being monitored. The Auditor explained that the latest completion date on the tracker was noted as December 2025, with the expectation that all actions would be closed by year-end. The Committee was advised that a further update would be brought forward to confirm the mitigation of identified fraud risks.

A Committee Member raised a question regarding delays in audit work observed in other councils. In response, the Auditor clarified that delays in audit completion had historically been associated with External Audit processes. It was confirmed that the Internal Audit programme for the Council remained on track, with the previous year’s audits completed on time, and no anticipated delays for the current year.

Members of the Committee expressed satisfaction with the report and acknowledged the improvements made since the transition to the current Internal and External Auditors. It was observed that the Council had previously been at risk of falling into categories of concern due to delays, but that progress had since been made, and the current position was viewed positively.

The longstanding cooperation between the Council and its Auditors was noted. It was stated that, despite occasional timing issues with sign-off, a strong working relationship had been maintained, with Auditors consistently attending Governance and Audit Committee meetings. The Chairman agreed that the current situation represented an improvement over previous years, when uncertainty had existed regarding Audit attendance and progress.

The Chairman then drew attention to the outcome of the Fraud Risk Assessment, it was noted that the absence of an action plan tracker and the handover of the Section 151 Officer role had resulted in some Officers being unaware of Management actions, leading to 18 actions remaining unimplemented. A request was made for clarification on measures being introduced to prevent recurrence.

Reference was also made to page 73, where the Chairman stated that a low-priority item had highlighted the  ...  view the full minutes text for item 17.

The Committee heard from the Interim Financial Services Manager who introduced the report. It was confirmed that any comments arising from the review were to be referred to the Council’s Section 151 Officer, the Interim Financial Services Manager, and the Council’s External Auditors, KPMG. The Committee was reminded of its responsibility for approving the Statement of Accounts and any material amendments recommended by the External Auditors.

It was noted that, in accordance with the Council’s constitution, Members would receive specific training on the Statement of Accounts prior to the November 2025 Committee meeting, at which the final audited accounts were scheduled to be presented for approval. It was highlighted that the accounts had been prepared in line with the International Financial Reporting Standards-based Code of Practice and local authority accounting requirements. The accounts had been published on the Council’s website and submitted to the Auditors by the statutory deadline of 30 June 2025.

The Manager reported that KPMG had commenced their audit on 28 July 2025, with the process expected to last five weeks. Their findings were scheduled to be presented to the Committee in November 2025. Clarification was provided regarding the presentation of figures within the accounts, with positive values representing expenditure and negative values (indicated by brackets or minus signs) representing income.

Attention was drawn to the primary statements, which showed an improved balance sheet position of £50.9 million for 2024–25, compared to £42.4 million for 2023–24. It was stated that the improvement of £8.5 million was attributed primarily to increases in long-term asset values, reflected in the revaluation reserve and capital adjustment accounts. The Manager explained that a reduction in the pension fund liability from £10.4 million to £9.8 million had also contributed to the improved position.

The Manager continued, adding that the General Fund Working Balance Reserve had increased to £4.478 million, in line with planned targets and within prudent levels. Earmarked reserves totalled £19.6 million, bringing the overall reserve position to just over £24 million. It was stated that the Council had achieved of a budget surplus for 2024–25. It was also noted that £3.07 million in capital grants remained held at the balance sheet date for schemes scheduled for delivery in 2025–26.

Lastly, it was highlighted that Comprehensive Income and Expenditure Statement showed an accounting surplus on services of £6.339 million, compared to £2.519 million in the 2023-2024. Despite the technical nature of the document, the key message conveyed was that the Council maintained strong reserve levels and a robust medium-term financial strategy, confirming its status as a going concern with no material uncertainty at the time of reporting. The Manager concluded by giving thanks to the Finance Team for their efforts in producing the accounts within the required timeframe.

A Committee Member raised a technical question regarding the calculation of the minimum threshold for the General Fund Balance. The Section 151 Officer responded that the threshold was determined annually by the Council. It was explained that the reserve served as an emergency fund,  ...  view the full minutes text for item 18.

Members of the Committee heard from the Monitoring Officer who introduced the report. It was highlighted that the Council was required to publish an Annual Governance Statement alongside the Statement of Accounts, with the first draft of the document included within the report pack. Members of the Committee were invited to provide comments either during the meeting or subsequently to the Monitoring Officer or the Section 151 Officer. It was stated that a revised draft would be produced following feedback, reviewed by the Management Team, and brought back before the Committee in the autumn for further consideration.

The Monitoring Officer then drew attention to Section 6 of the statement, which looked ahead to the coming year. It was noted that reference to the Greater Lincolnshire Mayoral Combined Authority and its implications for the District Council had not yet been included. It was proposed that this reference would be added prior to the statement’s return to the Committee.

A Committee Member raised a point regarding the group composition of Councillors listed on page 217, noting that the representation of the ‘Consensus Independents’ group appeared to be missing. The Monitoring Officer reiterated that the Annual Governance Statement represented a snapshot in time aligned with the Statement of Accounts, but the composition detail would be revisited before the document was returned to the Committee.

Having been proposed and seconded, and voted upon, it was

RESOLVED that Members reviewed the DRAFT Annual Governance Statement and provided any comments.

The Committee heard from the Customer Experience Manager, who introduced the report. It was highlighted that report included data on customer feedback, satisfaction levels, and service demand. The Manager reported that the year had been positive overall for customer experience; a new contact centre had been implemented, and a new customer experience strategy introduced, contributing to improved outcomes. It was noted that complaints had reduced while compliments had increased. Overall customer satisfaction had risen by 5%, reaching 87% overall, this improvement was attributed to the introduction of a new Customer Relationship Management (CRM) system, which had enhanced communication and service tracking for customers. It was highlighted that the newly launched Big Bin Clear Out service, introduced in April 2024, had received a satisfaction score of 95%.

The Manager continued, adding that of the 159 complaints received, 31 had been upheld, representing a decrease to 20%, and all improvement actions arising from upheld complaints had been completed. It was stated that one complaint had been upheld by the Ombudsman during the year, relating to a noise issue. No injustice had been found, but a request had been made to update information, with further details to be provided in a subsequent report to the Committee.

It was explained that customer demand had increased across all channels, with a notable rise in face-to-face contact at the Guildhall, particularly for tenant services. It was stated that telephone and online channels accounted for 94% of all contact. The Manager confirmed that work would commence on implementing a new two-stage complaints process, as recommended to all councils by the Ombudsman, with introduction planned for April 2026, subject to Management and Committee approval.

A Member of the Committee welcomed the report and praised the improvements made in customer access and service delivery. It was noted that the report reflected the Council’s investment in service accessibility and responsiveness. The increase in compliments was highlighted as particularly encouraging.

A Committee Member raised a query regarding the measurement of face-to-face contact, specifically whether visitors accessing tenant services such as Job Centre Plus were included in the statistics. It was confirmed by the Manager that all individuals entering the building were counted, as initial contact was made with Council Staff.

The Chairman expressed concern about accessibility for residents living outside the Gainsborough area. It was acknowledged that while most customers used digital or telephone channels, some individuals—particularly those less comfortable with technology—continued to rely on face-to-face contact. It was emphasised that further consideration should be given to supporting those who struggled with digital access or experienced distress when contacting the Council. The Chairman noted that Officers occasionally provided outreach support, but awareness of this service was limited among Councillors and residents. The importance of ensuring equitable access to services across the district was stressed.

It was acknowledged by the Manager that not all residents found it easy to access services, and assurance was given that where individuals were unable to do so, outreach support would be provided. It was reported that  ...  view the full minutes text for item 20.

A Committee Member expressed appreciation for the recent introduction of additional nameplates for Committee participants.  It was stated that the additional nameplates were considered to enhance accessibility and engagement for observers, allowing clearer identification of speakers.

The Chairman proceeded to recognise the contributions of Councillor Brockway, who was no longer serving on the Governance and Audit Committee. Gratitude was expressed for her efforts over the years, particularly her clarity in questioning and her commitment to improving understanding amongst Committee Members and the public.

With no further comments or questions, the Committee Work Plan was DULY NOTED.