Agenda and draft minutes

Link to further information in the Council’s Constitution

There were no declarations of interest.

The Chair noted that the Independent Person, Jonathan Causton, was not recorded as being in attendance at the last meeting and confirmed that the minutes would be updated accordingly.

The minutes of the meeting held on 25 September 2025 were agreed as a true record and were signed by the Chair.

The Chair advised and the Group noted the change in the order of the items to be discussed on the agenda.

Report of the Monitoring Officer

The Deputy Monitoring Officer presented the Regulation of Investigatory Powers Act 2000 (RIPA) Review report and advised that the Investigatory Powers Commissioner’s Office required that councillors were updated annually on the Council’s use of powers under RIPA to ensure compliance with legislation.

The Deputy Monitoring Officer explained that local authorities had the power to authorise directed surveillance, which usually comprised of covert cameras or covert observations by Officers, and the use of Covert Human Intelligence Sources (CHIS), and that authorisation for this should only be granted if it was considered necessary for the prevention and detection of crime or preventing disorder, and, if the surveillance was proportionate to the aims it sought to achieve. She noted that authorisation must also have judicial approval from a Justice of the Peace

In relation to authorisations under RIPA, the Deputy Monitoring Officer said that these could only be given by the Council’s Authorising Officers, who were the Chief Executive, the Director for Neighbourhoods and the Head of Service for Public Protection.

The Deputy Monitoring Officer advised that in line with the Council’s RIPA policy, Councillors were required to consider and review the Council’s use of RIPA powers and its policy and guidance at least once a year and that each year the Senior Responsible Officer (SRO) undertook an audit of RIPA usage. She confirmed that there had been no authorisations given for directed surveillance or for the use of CHIS since the last report.

In relation to training, the Deputy Monitoring Officer informed the Group that this was available to relevant Officers on a regular basis and was delivered via an online module and that the Council maintained a list of everyone who have completed the training. She confirmed that all of the Authorising Officers had undertaken training in respect of the authorisation process and criteria to consider.

In relation to auditing, the Deputy Monitoring Officer said that the IPCO carried out an inspection of the Council’s records every three years, including interviewing Officers to ensure that there was compliance with the appropriate legislation. She noted that the last inspection was undertaken in 2023 and that the Council’s RIPA policy had been updated in line with recommendations. The next inspection was due in 2026.

The Deputy Monitoring Officer noted that the SRO review of the policy in 2024 had taken account of the Covert Surveillance Code of Practice and that she had subsequently undertaken the annual review of the Council’s RIPA policy and confirmed that no material updates were required. She referred the Group to the current version of the policy attached at Appendix 1.

Councillor Wells asked when the Council had last used surveillance and the Deputy Monitoring Officer said that she would confirm whether it had ever been used.

It was RESOLVED that the Governance Scrutiny Group:

a)    Considered and noted the information contained within this report regarding the Council’s use of RIPA powers; and

b)    Acknowledged the Senior Responsible Officer’s annual review of the Council’s RIPA Policy, attached at Appendix  ...  view the full minutes text for item 22.

Report of the Director – Finance and Corporate Services

Mr Armstrong from BDO, the Council’s Internal Auditors, presented the Internal Audit Progress Report Quarter 2.

Mr Armstrong referred to page 17 of the report which showed the table detailing progress of work completed so far and work due. He confirmed that five of the nine reports had been fully completed, that one was in draft and one was ongoing, with two outstanding, with the final reports due in February and June 2026. He confirmed that all were in line with and on time with the Audit Plan.

Mr Amstrong said that the two audit reports completed within this quarter related to Main Financial Systems and Business Continuity and Emergency Planning.

In relation to Main Financial Systems, Mr Armstrong explained that it was an annual review as part of the core assurance auditing and that different areas of the financial systems were reviewed each year. He said that for this year, accounts payable and procurement cards had been reviewed and that a moderate rating for Design and substantial rating for Effectiveness had been given, with one medium and one low level finding.

Mr Armstrong advised that the medium rating related to the procurement card log, but not the use of the cards, as there were some late submissions of logs and receipts to the Finance Team. He noted that procurement cards could be an area of risk hence why it had been raised even though no misuse had been found. He referred the Group to part B of the response which listed actions taken to log and chase up card holders. He referred to the low finding regarding the absence of a written audit trail for a card limit increase.

In relation to the review of Business Continuity and Emergency Planning, Mr Armstrong said that a substantial rating for both design and effectiveness had been given with two low level findings. He said that one low level rating related to a structured multi-year programme for scenario testing of business continuity risks not being in place, although there were ad hoc testing sessions on a range of different vulnerabilities. The other related to reporting to the Executive Management Team not being supported by documentation summarising risks and action implementation and also that Resilience Review meetings were not documented.

Mr Armstrong noted that the budget had been released since the audit had been published, with key announcements around council tax changes and business rates revaluation which would have administration and cost impacts for local authorities, and whilst the Government had said that local authorities would be fully compensated for administration costs, this would need to be monitored. He also noted announcements regarding additional investment in planning and licensing.

Councillor G Wheeler asked about future impacts from the budget and Mr Armstrong said that BDO had put out an announcement about potential impacts and that as part of the audit reviews the broader landscape of risk was considered with possible impact from the budget.

Councillor G Wheeler asked how the Council’s business continuity  ...  view the full minutes text for item 23.

A verbal update from Forvis Mazars

Ms Norman from Forvis Mazars, the council’s external auditors gave a verbal update to the Group regarding the Statement of Accounts 2024-2025. She confirmed that the update this evening was to conclude outstanding areas of review in relation to the Statement of Accounts and confirm that final approval and signature of the audit opinion had now taken place. She confirmed that this allowed the Council to publish its audited statement of accounts well in advance of the deadline of 27 February and that it was one of the first in the Country to do so.

Ms Norman referred to the agenda supplement of the Audit Completion Report Follow Up Letter which confirmed that all outstanding areas had been concluded and she paid thanks to the Finance Team.

Councillor Om referred to Appendix B and asked what internal controls were in place. The Assistant Director of Finance advised that the journal process was considered low risk and that any journals over £10k were reviewed on a report basis rather than in the system. In relation to the instance reported in the appendix she explained that this was an unusual occurrence where she hadn’t sought a second check but that final balances were reviewed by budget holders and Officers as part of the closure process and also as part of the final accounts audit, so there was assurance within the system.

Councillor Wells asked about Officer pensions in relation to Local Government Reorganisation (LGR) and the Assistant Director of Finance said that this would be something for the future organisation to decide.

The Assistant Director of Finance and the Chair thanked the Finance Team and the Auditors for their hard work.

Ms Norman advised that in light of LGR, the plan was for the audit deadline to be brought forward for next year.

Report of the Director – Finance and Corporate Services

The Finance Business Partner presented the Capital and Investment Strategy Q2 Update for 2025/26.

In relation to the economic forecast, the Finance Business Partner said that inflation had fallen to 3.6% in October and that interest rates had held at 4% but were expected to fall in December, with two further cuts anticipated in the new year. She said that the UK economy had marginally expanded in quarter 3.

In relation to investment income, the Finance Business Partner referred to paragraphs 4.4 to 4.9 and said that the Council had budgeted to receive £1.4m in interest receipts this year and that projections currently exceeded this. She referred to Appendix A which detailed the full list of investments held at the end of September and to Appendix B which detailed diversified funds which had seen significant fluctuation over the last few years, but which had returned an average of 5.8% and were held for long term gain.

In relation to prudential indicators, the Finance Business Partner referred to Appendix C, and said that there was currently a projected underspend on capital arising primarily from the need to reprofile expenditure on Warm Homes to match allocation and land acquisition for carbon offsetting not yet being committed.

In relation to the Council's underlying need to borrow for capital expenditure, the Finance Business Partner referred to Table 3 which showed the forecast reduction in internal borrowing after deduction of MRP repayments. She said that the projected figure for net income from commercial and service investments to net revenue streams was marginally higher than expected due to lower utility costs and that the liability benchmark showed a credit balance which indicated that the Council did not need to borrow over the medium term.

The Finance Business Partner referred to Table 4 which detailed commercial investments which demonstrated the Council’s reliance on commercial income which was projected to account for 12.2% of total income to the Council.

The Finance Business Partner said that the next training session with Arlingclose was scheduled for 6 January 2026.

In conclusion, the Finance Business Partner said that the UK economy was still very fluid, with falling interest rates and slow economic growth.

Councillor Om referred to Table 4 and property income and asked whether it had dropped. The Finance Business Partner confirmed that it had due to vacancies in Bridgford Hall and at the Point.

Councillor G Wheeler asked about vacancies at the Point, noting that there was always a sign on the building saying that there were vacancies and asked whether this was accurate. The Assistant Director of Finance said that a response would be provided to the Group.

It was RESOLVED that the Governance Scrutiny Group reviewed and commented as necessary on the Capital and Investment Strategy update position as of 30 September 2025.

Report of the Director – Finance and Corporate Services

The Assistant Director of Finance presented the Governance Scrutiny Group Work Programme.

The Assistant Director of Finance advised that Risk Management Training would be held prior to the start of the next Governance Scrutiny Group meeting on Thursday, 5 February and the Group agreed for the training to start at 6pm ahead of the meeting at 7pm.

The Assistant Director of Finance noted that Treasury Management Training would be held on Tuesday, 6 February at 6pm and confirmed that it was mandatory for Members of Governance Scrutiny Group. Councillor G Wheeler gave his apologies and the Assistant Director of Finance said that she would look at options for recording the training.

It was RESOLVED that the Governance Scrutiny Group approved the Work Programme as follows:

5      February 2026

·       Internal Audit Progress Report

·       Internal Audit Strategy

·       Risk Management Update

·       Risk Management Strategy

·       Capital and Investment Strategy Update

·       Capital and Investment Strategy 2026/27

·       External Annual Audit Plan

·       Asset Management Plan

Actions – 4 December 2025