Loading
The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED that the Audit Wales Audit of Financial Statements report for Carmarthenshire County Council for 2025/26 be received.
RESOLVED that the post audit Statement of Accounts 2025/26 for Carmarthenshire County Council be approved.
RESOLVED that the Letter of Representation from the Director of Corporate Services and the Chair of the Governance and Audit Committee to Audit Wales be formally acknowledged.
RESOLVED that the responses to the requests made of both management and the Governance and Audit Committee, as detailed in the report be approved.
RESOLVED that the audited Accounting Statement for the Burry Port Harbour Authority for 2025-26 be approved.
RESOLVED that the Audit Wales Work Programme Update and Timetable up to 30th June 2026 be noted.
RESOLVED that 5.2.1 the Audit Wales Report: Counter Fraud Arrangement Carmarthenshire County Council (May 2026) be received; 5.2.2 the findings and recommendations of the Audit Wales local report be noted. 5.2.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
RESOLVED that: 5.3.1 the Audit Wales Report: Between a Rock and a Hard Place? Managing Carmarthenshire’s Roads (July 2026) be received; 5.3.2 the findings and recommendations of the Audit Wales local report be noted. 5.3.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
RESOLVED that: 5.4.1 the Audit Wales Report: Recruitment and Retention Challenges – The Right People at the Right Time? (July 2026) be received; 5.4.2 the findings and recommendations of the Audit Wales local report be noted. 5.4.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
RESOLVED that 6.1 the draft of the Council’s Annual Report be received; 6.2 the contents prior its appearance at scrutiny committee meetings in September, October, and November be accepted.
RESOLVED that the 2026/27 Internal Audit Plan update report be received.
RESOLVED that the Annual Anti-Fraud and Anti-Corruption Report 2025/26 be received.
RESOLVED that the Governance and Audit Committee Action Log be received.
RESOLVED that the minutes of the meeting of the Governance and Audit Committee held on the 10th July 2026 be signed as a correct record.
RESOLVED that the minutes of the meeting of the Governance and Audit Committee held on the 24th July 2026 be signed as a correct record.
There were no apologies for absence received.
There were no declarations of interest made.
Decision as recorded
RESOLVED that the Audit Wales Audit of Financial Statements report for Carmarthenshire County Council for 2025/26 be received.
The Committee considered the Audit Wales Audit of Financial Statements Report, which summarised the findings arising from the audit of the Authority’s 2025/26 Statement of Accounts. The Auditor General was responsible for providing an opinion as to whether the financial statements gave a true and fair view of the position of Carmarthenshire County Council as at 31st March 2026. In presenting the report, a representative from Audit Wales, advised that the audit work was complete and, subject to approval of the Statement of Accounts and receipt of the Letter of Representation, Audit Wales intended to issue an unqualified audit opinion by 30 September 2026. Members were informed that there were no unadjusted misstatements remaining within the accounts and that all amendments identified during the audit had been corrected. The report highlighted challenges encountered during the audit of Property, Plant and Equipment and IFRS 16 lease balances. It was noted that IFRS 16 represented a complex accounting standard which had significantly changed the accounting treatment and disclosure requirements for leased assets. The report further highlighted issues relating to the provision of supporting evidence for lease data and recommended that the Authority review its lease information to ensure that it was fully supported by appropriate underlying evidence. During the presentation, Audit Wales confirmed that it would continue to work with officers to support improvements in this area. The Director of Corporate Services provided additional context regarding the audit adjustments, explaining that these related to property valuations, IFRS 16 lease accounting and accumulated absences. Members were advised that the amendments were technical in nature, had been corrected within the accounts and had no impact on the Authority’s General Fund balance, Housing Revenue Account balance, school reserves or overall financial position. The Committee welcomed the intended unqualified audit opinion and noted the positive outcome of the audit process. The Chair thanked Audit Wales for their hard work and diligence throughout the process. Furthermore, expressed appreciation was extended to officers for their cooperation and contribution in completing the audit within the required timescale, a sentiment endorsed by the Committee. The following query was raised by the Committee: • In response to a query regarding delays in the provision of information during the audit process, the Director of Corporate Services explained that the implementation of a new IFRS 16 lease management system during the year had created additional challenges, including reliance on specialist knowledge and external system support. Members were advised that the new system was now in place, which would allow work to be scheduled earlier and improve the timeliness of information provision for future audits. The Director further acknowledged challenges in relation to property valuations, noting that discussions had taken place with the relevant service area to improve the scheduling and prioritisation of valuation work to support future audit requirements UNANIMOUSLY RESOLVED that the Audit Wales Audit of Financial Statements report for Carmarthenshire County Council for 2025/26 be received.
Decision as recorded
RESOLVED that the post audit Statement of Accounts 2025/26 for Carmarthenshire County Council be approved.
The Committee considered the Statement of Accounts 2025/26 for Carmarthenshire County Council, which had been prepared in accordance with the Accounts and Audit (Wales) Regulations 2014 (as amended 2018). In line with current Welsh Government guidance the Council was required to publish its audited accounts by 31 October 2026. The Committee was provided with an overview of the salient points contained within the Statement of Accounts which summarised the financial position of the Authority for the year ended 31 March 2026, and which included the amendments agreed with Audit Wales as part of their audit. The Committee was provided with an overview of the Authority’s financial position at year end. It was reported that the Council Fund had recorded a deficit of £1.8m and that schools had recorded a deficit of £7.7m, resulting in cumulative school deficit balances of £9.5m being carried forward on the Balance Sheet. The Housing Revenue Account had closed with balances of £11m. It was further reported that the Authority’s borrowing stood at £434m and that capital expenditure during the year totalled £154m. The combined Council Fund and schools deficits represented a significant variance for the Authority and had adversely affected its overall year-end financial position. In relation to the financial position of schools, reference was made to the concerns previously expressed by the Committee and to the letter sent by the Chair to the Leader of the Council. It was confirmed that the letter had been received and acknowledged by the Leader, including at the most recent meeting of the County Council, and that a formal response would be presented to the Committee in due course. The Committee was reassured that a range of activity was under way to address the schools’ financial position. This included a statement made at the County Council meeting, correspondence being issued to schools by the relevant Cabinet Members, meetings with headteachers, engagement with governing bodies and work concerning smaller schools progressing through the school closure process. It was emphasised that early action was necessary to prevent the overall financial position from deteriorating further. The Committee was advised of amendments made to the Annual Governance Statement since publication of the papers. Subject to the Committee’s approval, the Chair would sign the Statement of Responsibilities, following which the accounts would be presented to Audit Wales for completion of the audit and signing of the Auditor General’s opinion. The Committee expressed its appreciation to the officers involved for their diligence and significant efforts in finalising and issuing the documentation. UNANIMOUSLY RESOLVED that the post audit Statement of Accounts 2025/26 for Carmarthenshire County Council be approved.
Decision as recorded
RESOLVED that the Letter of Representation from the Director of Corporate Services and the Chair of the Governance and Audit Committee to Audit Wales be formally acknowledged.
The Committee considered the Letter of Representation to Audit Wales which had been prepared by the Director of Corporate Services and the Chair of the Governance and Audit Committee in accordance with the requirements of the Statement on Auditing Standards (SAS440 - Management Representations). It was reported that the Authority had designed, implemented and reviewed the internal controls necessary to prevent and detect fraud, with this work having been undertaken in conjunction with Internal Audit and Audit Wales. The Committee was advised that Audit Wales had been provided with full access to all relevant information and any additional information requested for the purposes of the audit. Unrestricted access had also been provided to officers to enable the auditors to obtain the necessary audit evidence. Any known or suspected instances of fraud had been disclosed and all transactions had been fully recorded and reflected within the Statement of Accounts. It was confirmed that the representations made by management supported the position that the financial statements presented a true and fair view. Attention was drawn to a duplication on page 239 of the papers, relating to the financial statements being free from material misstatements, including omissions. It was confirmed that the duplication would be removed from the final version of the Letter of Representation prior to signature. UNANIMOUSLY RESOLVED that the Letter of Representation from the Director of Corporate Services and the Chair of the Governance and Audit Committee to Audit Wales be formally acknowledged.
Decision as recorded
RESOLVED that the responses to the requests made of both management and the Governance and Audit Committee, as detailed in the report be approved.
The Committee received the Authority’s responses to Audit Wales on a number of governance areas that impacted on the audit of the financial statements. Those considerations were relevant to both the Council’s management and ‘those charged with governance’, namely the Governance and Audit Committee. The information provided Audit Wales with an understanding of the Council and its business processes in order to assist Audit Wales provide an audit opinion on the 2025/26 financial statements. The Committee noted that, due to the nature of the document and the Authority’s governance arrangements, many of the responses remained substantially unchanged from previous years, with only a small number of updates being required. In presenting the report the Head of Financial Services advised the Committee that the responses had been updated to reflect developments in relation to fraud awareness and prevention. This included details of internal training delivered during the year, external training provided by Dyfed-Powys Police, and the continued use of the Council’s e-learning module. Reference was also made to the implementation of an updated Whistleblowing Policy during the year, linked to the provisions of the Employment Rights Act 2025. In addition, in relation to ICT systems, it was reported that significant progress had been made in migrating the Authority’s financial ledger system to a cloud-based environment. However, a substantial final phase of the project remained to be completed, which would continue to be relevant to the delivery of the external audit process. UNANIMOUSLY RESOLVED that the responses to the requests made of both management and the Governance and Audit Committee, as detailed in the report be approved.
Decision as recorded
RESOLVED that the audited Accounting Statement for the Burry Port Harbour Authority for 2025-26 be approved.
The Committee, in accordance with the Accounts and Audit (Wales) Regulations 2014, and the delegated powers enshrined within the Local Government Measure, considered the 2025-26 Audited Accounting Statement for the Burry Port Harbour Authority. Carmarthenshire County Council had a range of statutory powers and duties for the purposes of improving, maintaining and managing the Burry Port harbour through the Burry Port Harbour Revision Order 2000. The report referred to the Harbours Act 1964 which stipulated the requirement for Harbour Authorities to prepare an annual statement of accounts relating to harbour activities. In compliance with the Accounts and Audit (Wales) Regulations 2014, the accounts were presented in the form of a separate annual income and expenditure account and statement of balances. The Committee was appraised of the current situation regarding Burry Port Marina to enable the continued safe operation of the harbour during the period of administration, as set out in the report. In this regard the Committee was advised that during April 2025 the administrators surrendered the Harbour lease to Carmarthenshire County Council with all staff transferring. The Harbour remained operational and the net cost of the harbour activities in 2025-26 was £99k, (2024-25 £281k), with all activities being fully funded by Carmarthenshire County Council. Fixed assets held at 31st March 2025 totalled £1,480k and the decrease in costs year on year of 182k was attributable to a decrease in other payments and increase in income. Officers in presenting the report to the Committee highlighted the following main matters: • The Committee was advised that a small number of low-value amendments had been identified during the audit process. These related primarily to approximately £2,000 of utility costs for which an invoice had not been received at the time the draft accounts were prepared, together with associated income charges and a further invoice of approximately £700 to £800 relating to activity outside the harbour boundary. • As a consequence of these amendments, the level of funding from Carmarthenshire County Council increased from £97,000 to £99,000, with a corresponding reduction in other receipts. • It was further reported that a specific disclosure had been included in relation to the bad debt provision. The provision reflected an irrecoverable debt following the dissolution of Marine and Property Group Ltd and was disclosed separately within the annual return. The annual return recorded a bad debt provision of £203,751 within creditors as at 31 March 2026. UNANIMOUSLY RESOLVED that the audited Accounting Statement for the Burry Port Harbour Authority for 2025-26 be approved.
The Chair welcomed Audit Wales representatives to the meeting.
Decision as recorded
RESOLVED that the Audit Wales Work Programme Update and Timetable up to 30th June 2026 be noted.
The Committee considered the Audit Wales Work Programme and Timetable quarterly report, as at 30 June 2026 which provided a synopsis of the regulatory programme of work for local government, together with an update on the inspectorate work, inclusive of the financial and performance audits relevant to Carmarthenshire County Council. UNANIMOUSLY RESOLVED that the Audit Wales Work Programme Update and Timetable up to 30th June 2026 be noted.
Decision as recorded
RESOLVED that 5.2.1 the Audit Wales Report: Counter Fraud Arrangement Carmarthenshire County Council (May 2026) be received; 5.2.2 the findings and recommendations of the Audit Wales local report be noted. 5.2.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
The Committee considered the Audit Wales report on the Council’s counter-fraud arrangements together with the Council’s management response to the recommendations arising from the review. It was reported that the review, undertaken between October and November 2025, assessed the Council’s arrangements against the recommendations contained within the Auditor General for Wales’ 2020 report, Raising Our Game: Tackling Fraud in Wales. The review examined the Council’s arrangements in relation to leadership and culture, risk management and control, policies and training, capacity and expertise, tools and data, collaboration and governance. Audit Wales concluded that the Council had strong foundations for tackling fraud, including a clearly defined zero-tolerance approach, comprehensive arrangements for identifying fraud risks and investigating cases, and effective partnership working. However, it was recognised that there was a greater focus on investigating fraud than on preventative activity and that opportunities existed to strengthen existing arrangements further. Five recommendations were made relating to the involvement of counter-fraud staff in policy and systems development, the publication of fraud cases, pre-employment checks, links between the Fraud Risk Assessment and the Internal Audit Plan, and arrangements for capturing and sharing lessons learned from fraud investigations. In presenting the Council’s response, the Head of Revenues and Financial Compliance reported that the findings of the review were considered positive and acknowledged the robust arrangements already in place. It was acknowledged that the recommendations were largely focused on formalising, enhancing and strengthening existing practices rather than introducing new arrangements. It was explained that four of the recommendations would be progressed through Internal Audit and Counter Fraud arrangements, with one recommendation relating to Human Resources responsibilities. The following issues/observations were raised by the Committee and responded to by officers:- • In response to a comment regarding the monitoring of the progress of the recommendations, the Head of Revenues and Financial Compliance confirmed that actions had already commenced and that progress against and that the recommendations would be monitored through the Council’s Performance Information Management System and reported to the Committee through future Internal Audit and Counter Fraud annual reports. • Clarification was sought regarding the proposed completion date of April 2027 for the recommendation relating to pre-employment checks. The People Services Manager advised that the Council already undertook a comprehensive range of pre-employment checks and that work had commenced to identify additional fraud-focused checks and to assess the fraud risk associated with a significant number of roles across the Authority. It was explained that the proposed completion date reflected the scale of the review required rather than a delay in commencing the work. • Members welcomed the Council’s strong zero-tolerance approach to fraud and noted the emphasis placed by officers on ensuring that instances of fraud continued to be investigated, reported and referred to the police where appropriate. It was also noted that the Council already publicised examples of fraudulent activity through its Annual Fraud Report and that formal arrangements would now be documented in response to Audit Wales’ recommendation. • Reference was made to paragraph 21 of the report - Governance. An observation was raised regarding the Governance and Audit Committee’s oversight of counter-fraud activity, specifically the need for more proactive scrutiny of preventative work and priorities. It was therefore requested that a report be brought back to a future meeting of the Committee to provide an update on progress in implementing the recommendations and to consider how the Committee could strengthen its oversight arrangements. The Head of Revenues and Financial Compliance agreed to review and report back to the Committee. Audit Wales also confirmed that implementation of the recommendations would be monitored through its follow-up work. UNANIMOUSLY RESOLVED that 5.2.1 the Audit Wales Report: Counter Fraud Arrangement Carmarthenshire County Council (May 2026) be received; 5.2.2 the findings and recommendations of the Audit Wales local report be noted. 5.2.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
Decision as recorded
RESOLVED that: 5.3.1 the Audit Wales Report: Between a Rock and a Hard Place? Managing Carmarthenshire’s Roads (July 2026) be received; 5.3.2 the findings and recommendations of the Audit Wales local report be noted. 5.3.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
The Committee considered the Audit Wales report: Between a Rock and a Hard Place? Managing Carmarthenshire's Roads (July 2026) together with the Council’s management response to the recommendations arising from the review. The Audit Wales representative in presenting the report explained that the review examined how effectively the Council planned, funded and managed its highways network, including the balance between reactive maintenance and longer-term preventative investment. It was noted that Carmarthenshire managed the second longest highway network in Wales and one of the busiest, with over 3,500 kilometres of roads, almost half of which were unclassified roads. The Committee was advised that the Council had a detailed understanding of its highway network and had developed a risk-based approach to managing it. However, Audit Wales concluded that the current approach was becoming increasingly reactive and was unlikely to be sustainable in the longer term. It was reported that real terms funding for highways and roads had reduced by approximately 40% since 2008-09, contributing to an estimated highways maintenance backlog of at least £77 million. Audit Wales noted that the Council did not currently receive funding at a level sufficient to maintain the network in a standstill condition, resulting in difficult decisions regarding the allocation of limited resources. Members were advised that the Council’s risk-based approach had generally protected the condition of the classified A, B and C road network but that this had been at the expense of unclassified roads, which accounted for 47% of the network. Audit Wales highlighted increasing deterioration in unclassified roads and a significant rise in reported potholes in recent years. The report further concluded that preventative maintenance activity had reduced over time, resulting in an increasing reliance on more costly reactive repairs. Audit Wales advised that this created a cycle whereby fewer roads remained suitable for preventative treatments, increasing future costs and reducing overall value for money. Weaknesses were also identified in the way highways risks, funding decisions, road condition information and outcomes were linked and reported to Members, limiting strategic oversight and understanding of longer-term consequences. In response, the Head of Environmental Infrastructure officers welcomed the report and acknowledged the significant challenges faced in maintaining one of Wales’ largest highway networks within a constrained financial environment. It was emphasised that the report did not identify failures in governance or asset management, but rather highlighted areas where strategic planning, risk management and longer-term decision-making could be strengthened. The Head of Environmental Infrastructure outlined proposals to develop a longer-term investment framework through the Highways Asset Management Plan, model future network conditions under different funding scenarios and improve the evidence available to support future budget decisions. Work would also be undertaken to establish a value for money framework, strengthen corporate risk management arrangements, improve the collection of public perception data and develop a Strategic Workforce Plan to ensure the service had the skills and capacity required to support future highway asset management. The following issues/observations were raised by the Committee and responded to by officers:- • Members acknowledged the scale of the challenge facing the highways service and the difficulties associated with maintaining a predominantly rural road network. Reference was made to the importance of longer-term funding settlements from Welsh Government to support effective planning and investment decisions. Members also recognised the pressures arising from increasing numbers of potholes, deteriorating road conditions and the long-term effects of historic reductions in highways funding. • The recommendation aimed at improving transparency and communication with the public was welcomed. It was commented that greater public awareness of the scale and complexity of maintaining the highway network would assist in understanding the challenges faced by the Authority. • It was raised that there may be value in learning from best practice adopted by other authorities. The Head of Environmental Infrastructure highlighted that work was currently taking place with Audit Wales and other councils to share experiences and identify opportunities for improvement. • In acknowledging that the condition of the highway network represented a significant medium and long-term financial challenge for the Authority, it was suggested that the findings of the report be incorporated into future budget and medium-term financial planning considerations. UNANIMOUSLY RESOLVED that: 5.3.1 the Audit Wales Report: Between a Rock and a Hard Place? Managing Carmarthenshire’s Roads (July 2026) be received; 5.3.2 the findings and recommendations of the Audit Wales local report be noted. 5.3.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
Decision as recorded
RESOLVED that: 5.4.1 the Audit Wales Report: Recruitment and Retention Challenges – The Right People at the Right Time? (July 2026) be received; 5.4.2 the findings and recommendations of the Audit Wales local report be noted. 5.4.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
The Committee considered the Audit Wales Report, Recruitment and Retention Challenges - The Right People at the Right Time? (July 2026) together with the Council’s Management Response to the recommendations arising from the review. A representative from Audit Wales, in presenting the report explained that the review formed part of a thematic study undertaken across all 22 local authorities in Wales and examined how well the Council understood its recruitment and retention challenges, the actions being taken in response and how the value for money of those approaches was assessed. Audit Wales concluded that the Council generally understood its current recruitment and retention challenges and had implemented a range of measures to address them, but did not routinely evaluate their value for money or consistently share learning across the organisation. In presenting the findings, Audit Wales advised that senior managers had a good understanding of recruitment and retention challenges within their respective service areas. However, opportunities existed to strengthen the Council’s corporate understanding of workforce issues and to improve information available to identify future recruitment and retention trends. Audit Wales also noted examples of successful partnership working with external organisations, including colleges, apprenticeship schemes and jointly funded posts with the Health Board, but recommended that opportunities for collaborative approaches be considered more routinely where appropriate. Reference was made to the three recommendations contained within the report, which related to improving information and oversight of current and future recruitment challenges, exploring partnership opportunities to address workforce issues, and developing arrangements to assess and monitor value for money and share learning from recruitment and retention activity. Audit Wales confirmed that the Council’s management response demonstrated appropriate consideration of the audit findings and recommendations. In responding to the report, the People Services Manager welcomed the findings and advised that a significant amount of work had already been undertaken or was in progress. It was reported that workforce plans were now in place across all service areas and that an overarching workforce plan had been developed to support strategic workforce planning across the Authority. There was ongoing dialogue with recruitment managers to identify recruitment pressures, skills shortages and potential future workforce requirements. It was further reported that the workforce plans were due to be considered by the Transformation Board. The Committee was advised that work was also underway to improve recruitment data, performance indicators and benchmarking arrangements through the development of a recruitment dashboard. This would provide enhanced management information and enable comparison with other local authorities and public sector organisations, informing future recruitment and retention strategies. The following issues/observations were raised by the Committee and responded to by officers:- • It was commented that the positive findings were welcomed and noted the successful use of casual worker arrangements to reduce reliance on agency staffing. • Reference was made to employee retention initiatives operated elsewhere, with a suggestion that officers consider approaches designed to support staff who may be considering leaving the organisation. In response to the questions regarding retention, the People Services Manager advised that exit surveys were undertaken with employees leaving the Authority and that information was also gathered from managers to better understand the reasons for staff departures. It was further reported that the Council had a range of policies aimed at attracting and retaining employees, including flexible retirement arrangements, part-time working opportunities, job-sharing arrangements and other flexible working policies. Overall, Members welcomed the positive report and the progress already being made against the recommendations, particularly the development of workforce planning arrangements, performance monitoring and regional collaboration. UNANIMOUSLY RESOLVED that: 5.4.1 the Audit Wales Report: Recruitment and Retention Challenges – The Right People at the Right Time? (July 2026) be received; 5.4.2 the findings and recommendations of the Audit Wales local report be noted. 5.4.3 the Carmarthenshire County Council response to the recommendations of the local report relevant to the council be approved.
Decision as recorded
RESOLVED that 6.1 the draft of the Council’s Annual Report be received; 6.2 the contents prior its appearance at scrutiny committee meetings in September, October, and November be accepted.
The Committee considered the draft Annual Report for 2025/26, which fulfilled the Council’s statutory reporting duties under the Well-being of Future Generations (Wales) Act 2015 and the Local Government and Elections (Wales) Act 2021 by incorporating the Council’s annual report and corporate self-assessment within a single document. The report was based on the Council’s four Well-being Objectives and provided an overview of performance against thematic and service priorities, including progress against outcomes, key performance measures, case studies and areas identified for further improvement. It was reported that the document covered the breadth of the Council’s activities during 2025/26 and had been designed to present a balanced overview of performance in an accessible format. The report included a number of appendices, including the Corporate Self-Assessment, Executive Summary of the Annual Governance Statement and a new appendix signposting readers to other annual reports published by the Council. It was further noted that the Social Partnership Annual Report remained in development and would be incorporated prior to final publication. The Committee noted that this was the first stage of the consultation and scrutiny process. Following consideration by the Governance and Audit Committee, the report would be presented to the various Scrutiny Committees before being revised and submitted to Cabinet and Full Council for approval. The following issues/observations were raised by the Committee and responded to by officers:- • Members welcomed the report and commended officers on producing a comprehensive document in a format that was clear and easy to read. However, it was commented that the readability of certain pages that contained dark blue backgrounds was difficult to read, suggesting that lighter colour schemes may improve accessibility, particularly for readers with visual impairments. • Reference was made to specific sections of the report where it was considered that additional contextual information could be provided, including reference to the Atrium development and the timescales associated with the Revised Local Development Plan. • Members emphasised the importance of effectively promoting the Annual Report and its findings to residents. It was suggested that many of the achievements highlighted within the report were not widely recognised by the public and that greater publicity would help demonstrate the breadth of services provided by the Council, improvements achieved during the year and the value derived from public expenditure. • In response, the Corporate Policy and Partnership Manager advised that the final published report would be accompanied by communications activity and that further opportunities were being explored to link service-specific communications and press releases to the wider performance information contained within the Annual Report. However, strengthening how the information contained within the report was communicated to the public would be considered. • It was raised that the accessibility of the Annual Report was important and suggested that consideration be given to producing an easy-read version, or ensuring that the planned executive summary used infographics and simplified formats to make the information more accessible to a wider audience. The Corporate Policy and Partnership Manager agreed to consider this as part of the development of the executive summary. UNANIMOUSLY RESOLVED that 6.1 the draft of the Council’s Annual Report be received; 6.2 the contents prior its appearance at scrutiny committee meetings in September, October, and November be accepted.
Decision as recorded
RESOLVED that the 2026/27 Internal Audit Plan update report be received.
The Committee considered the Internal Audit Plan Update 2026/27, which provided a summary of Internal Audit activity and performance during the reporting period, including progress against the approved Internal Audit Plan, key findings and matters requiring Committee oversight. Members were advised that the reporting format had been revised to provide a broader, outcomes-focused assessment of Internal Audit activity, performance, resourcing, emerging themes and significant governance, risk and control issues. It was reported that progress against the 2026/27 Audit Plan remained positive, with delivery currently at 32% against a target of 30% at the end of August 2026. Ten audits had been completed, twenty-three were in progress and no significant emerging risks had been identified to date. Of the ten completed reviews, four were certification audits, five had received a Reasonable Assurance opinion and one a Limited Assurance opinion. No fundamental weaknesses in governance, risk management or control arrangements had been identified. The Committee was advised that a recurring theme arising from a number of grant reviews related to the completion of Declaration of Interest Forms, which had not always been completed in accordance with Council policy. It was confirmed that this issue would be examined further as part of the planned Declaration of Interests review during 2026/27. Members also noted that compliance with established policies and procedures continued to be a theme arising from audit work and was receiving attention through the Corporate Management Team. In relation to Internal Audit performance and resourcing, Members were informed that a new Senior Auditor had recently joined the team following a successful recruitment process. Although some vacancies remained and capacity had been affected by annual leave during the summer period, progress against the Audit Plan remained on track. The Committee received reports relating to two fundamental financial systems reviewed during the quarter which were appended to the report at: Appendix 1 - Pensions Payroll System Appendix 2 - Payroll System. The following issues/observations were raised by the Committee and responded to by officers:- • Members welcomed the proposed measures and noted that previous guidance, training and reminders had not fully resolved the issue. • In regard the progress of the annual employee certification exercise, it was reported that significant progress had been made since the audit, with approximately 80% of returns received by September 2026 and further responses continuing to be submitted, particularly from schools following the summer holiday period. The Head of Financial Services expressed confidence that a near-complete return rate would be achieved following further follow-up work. • Clarification was sought regarding the recovery of payroll overpayments identified during the audit. The People Services Manager advised that the Council strived to recover all overpayments wherever possible, although recovery could be more complex in cases where employees had already left the Authority. At the Committee’s request, it was agreed that a written update would be circulated to Members confirming the position regarding the recovery of the identified overpayments. • The Committee welcomed the overall positive progress against the Audit Plan and noted the assurances provided in relation to both the Pension Payroll and Payroll reviews. UNANIMOUSLY RESOLVED that the 2026/27 Internal Audit Plan update report be received.
Decision as recorded
RESOLVED that the Annual Anti-Fraud and Anti-Corruption Report 2025/26 be received.
The Committee received for consideration the Annual Anti-Fraud and Anti-Corruption Report 2025/26 which provided a summary of the activities of the Council’s Anti-Fraud functions for the reporting period in terms of Strategic Governance, Proactive Work, Prevention and Deterrence, Investigations and Case Information. It was reported that the Council’s approach was underpinned by its Anti-Fraud and Anti-Corruption Strategy and aligned with the recognised Fighting Fraud and Corruption Locally framework, structured around the principles of Govern, Acknowledge, Prevent, Pursue and Protect. The Council remained committed to applying the same robust approach to all instances of fraud, irrespective of value or whether the perpetrator was an employee, Member, contractor or external party. Members were advised that a number of initiatives had been undertaken during the year to strengthen the Council’s control environment and promote awareness of fraud risks. These included the review and promotion of Financial Procedure Rules for Schools, workshops on financial procedure rules for Headteachers and administrative staff, dedicated fraud awareness sessions delivered to Directorate Management Teams, training provided in partnership with Dyfed-Powys Police, and the continued promotion of mandatory e-learning modules for staff and Members. It was reported that, at the time of writing the report, completion rates for the fraud awareness e-learning module stood at 76% for non-school staff and 67% for school-based staff. The Committee also noted the introduction of an online fraud reporting form to strengthen arrangements for reporting suspected fraud. The Committee was informed that the Authority maintained a Fraud Risk Register and that regular liaison took place between Internal Audit, Human Resources, Revenues and Trading Standards to ensure that emerging fraud risks and investigations were appropriately managed. Members noted the positive working relationships in place with external partners, including Dyfed-Powys Police, the Department for Work and Pensions and national fraud networks. In relation to preventative activity, officers highlighted participation in the Department for Work and Pensions Overseas Fraud Initiative. Seventeen cases had been referred to the Council, of which eight resulted in Housing Benefit overpayments totaling £6,713.71 being identified. The Committee also noted the Council’s participation in the National Fraud Initiative, through which 8,765 data matches had been received across 87 reports. Whilst no fraud cases were identified through the exercise, the outcomes provided assurance regarding the effectiveness of existing controls. Further benefits had subsequently been realised through Blue Badge data matching exercises, resulting in the identification of 298 deceased badge holders and an estimated prevention benefit valued by the Cabinet Office at more than £236,000. The Committee further noted the work undertaken through the TrueCall programme to protect vulnerable residents from telemarketing and scam-related fraud. During 2025/26, nuisance call-blocking measures prevented over 21,000 nuisance calls, generated safeguarding interventions and delivered estimated benefits to vulnerable residents and public services through avoided fraud and reduced service demand. The following issues/observations were raised by the Committee and responded to by officers:- • Assurance was sought regarding the Council’s cyber resilience arrangements following a recent cyber incident affecting Dyfed-Powys Police. The Director of Corporate Services advised that the Authority had already been engaged through the Local Resilience Forum from the early stages of that incident and that the Council’s ICT service had worked closely with partners to understand the risks, review relevant information and ensure appropriate safeguards were in place. • In noting that cyber threats continued to represent a significant risk to all organisations, the Council’s programme of mock cyber incident exercises undertaken during the year aimed to strengthen preparedness and business continuity arrangements was welcomed. • The Committee welcomed the comprehensive nature of the report and the extensive activity undertaken during the year to prevent, detect and investigate fraud, while reinforcing the Council’s culture of integrity and zero tolerance of fraudulent activity. UNANIMOUSLY RESOLVED that the Annual Anti-Fraud and Anti-Corruption Report 2025/26 be received.
Decision as recorded
RESOLVED that the Governance and Audit Committee Action Log be received.
The Committee considered its Action Log which included progress information in regard to the actions arising from previous meetings. It was reported that an additional meeting would be scheduled for October 2026 to help manage the Committee’s workload. UNANIMOUSLY RESOLVED that the Governance and Audit Committee Action Log be received.
Decision as recorded
RESOLVED that the minutes of the meeting of the Governance and Audit Committee held on the 10th July 2026 be signed as a correct record.
UNANIMOUSLY RESOLVED that the minutes of the meeting of the Governance and Audit Committee held on the 10th July 2026 be signed as a correct record.
Decision as recorded
RESOLVED that the minutes of the meeting of the Governance and Audit Committee held on the 24th July 2026 be signed as a correct record.
UNANIMOUSLY RESOLVED that the minutes of the meeting of the Governance and Audit Committee held on the 24th July 2026 be signed as a correct record.
Councillors must say when they have a personal link to something being discussed, such as a job, a property or a family member. A prejudicial interest is one strong enough that the councillor usually leaves the room and takes no part.
Declarations are read from the minutes once they are published.
Lists the council's current councillors only. Co-opted members, officers and former councillors aren't shown.