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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED that subject to the above, the minutes of the meeting held on the 18 March 2026 be received and approved as a true and correct record of the proceedings.
RESOLVED that subject to the above, the minutes of the meeting held on the 29 April 2026 be received and approved as a true and correct record of the proceedings.
RESOLVED that the Governance and Audit Committee: • Considered the reports and provided comments, emphasising the importance of ensuring that the document continued to operate as a living document. The Committee also expressed a desire to see clear plans for the development of a more user-friendly method of presenting performance data. • Reflected on the key messages arising from the Performance Self-Assessment and the October 2025 to March 2026 Performance Update Report.
RESOLVED that the Committee reviewed and approved the draft Internal Audit Plan for 2026/27 and would monitor progress against the Plan throughout the year.
RESOLVED that the Governance and Audit Committee considered the details included within the report and support the proposals as suggested by the Head of Finance and Audit and the committee supports the additional resources the Finance Team was requesting set out within the report.
RESOLVED that the Governance and Audit committee considered the contents of the report and appendices and provided feedback.
RESOLVED: that subject to the above, the Governance and Audit Committee Forward Work Programme be noted.
Apologies for absence were received from Councillor James Elson.
The Monitoring Officer reminded members of the regulations of the Governance and Audit Committee stated clearly it was only independent Lay Members of the Committee that were eligible for the role of Chair of the committee. Nominations were sought for Chair of Governance and Audit Committee for the municipal year 2026/27. Councillor Ellie Chard nominated Lay Member David Stewart for the role of Chair of the Governance and Audit Committee. This nomination was seconded by Councilllor Carol Holliday. There were no other nominations received. RESOLVED that Lay Member David Stewart be appointed as the Governance and Audit Committee’s Chair for the ensuing year.
Nominations were sought for Vice Chair of Governance and Audit Committee for the municipal year 2026/27. Councillor Carol Holliday proposed, Councillor Mark young for Vice Chair. This was seconded by Lay Member David Stewart. There were no other nominations received. RESOLVDED that Councillor Mark Young be appointed Vice Chair of the Governance and Audit Committee for the ensuing year.
Councillor Ellie Chard declared a personal interest as she was a recipient of a Clwyd Pension Fund Pension. She also informed the Committee, she was a School Governor at two schools in Rhyl. Councillor Carol Holliday declared a personal interest as she was a School Governor. The Chair, Lay Member David Stewart declared a personal interest as he was a recipient of a Clwyd Pension Fund Pension.
None.
Decision as recorded
RESOLVED that subject to the above, the minutes of the meeting held on the 18 March 2026 be received and approved as a true and correct record of the proceedings.
The minutes of the Governance and Audit Committee held on 18 March 2026 were submitted. The Chair reminded Members the minutes had been circulated late at the last meeting, it was agreed for the minutes to be included at this meeting. Matters of accuracy – Page 9 – Minutes – It should read ‘Mr Nigel Rudd asked if there had’. Mattes arising – Page 11 - Internal Audit Charter, Strategy and Quality Assurance Improvement Programme 2026/27 – The Chair asked for clarified if thought had been given to the possibility of buying in ICT audit. The Chief Internal Auditor believed he may have mentioned the possibility in his Annual Report. Page 20 - Audit Wales - National Fraud Initiative – Confirmed a note had been received from Audit Wales, which was circulated to Members. The Chair shared the letter with the committee. RESOLVED that subject to the above, the minutes of the meeting held on the 18 March 2026 be received and approved as a true and correct record of the proceedings.
Decision as recorded
RESOLVED that subject to the above, the minutes of the meeting held on the 29 April 2026 be received and approved as a true and correct record of the proceedings.
The minutes of the Governance and Audit Committee held on 29 April 2026 were submitted. Matters of accuracy – Page 27- Forward Work Programme – The Chair confirmed the meeting was heavy. He confirmed the Annual Governance and Audit Committee report would be presented at the July meeting. Page 30 - Denbighshire Council Performance Management Framework – The resolution should have stated it had been agreed for Internal Audit to review the Terms of Reference against the Global Internal Audit Standards. With a review to be presented back to Governance and Audit in September 2026. Matters arising – Page 28 – Governance and Audit Forward Work Programme – it was confirmed a request had been made for the Corporate Joint Committee meeting dates, to avoid any clashes. The Chair thanked all members for attending the Self-assessment session. The Chief Internal Auditor requested all self-assessment forms be returned so he could formulate the findings. The Chair reminded Members about the upcoming meeting with Internal Audit and Audit Wales, he stressed how beneficial to all it had previously been. RESOLVED that subject to the above, the minutes of the meeting held on the 29 April 2026 be received and approved as a true and correct record of the proceedings.
Decision as recorded
RESOLVED that the Governance and Audit Committee: • Considered the reports and provided comments, emphasising the importance of ensuring that the document continued to operate as a living document. The Committee also expressed a desire to see clear plans for the development of a more user-friendly method of presenting performance data. • Reflected on the key messages arising from the Performance Self-Assessment and the October 2025 to March 2026 Performance Update Report.
Councillor Julie Matthews presented the report, which comprised the Council’s Performance Self-Assessment for 2025–2026, the Performance Update Report (October 2025 to March 2026), together with associated documentation for the Governance and Audit Committee’s consideration prior to submission to Council. The report had been submitted as part of the Council’s statutory duties and its primary purpose was to assess how effectively the Corporate Plan had been delivered. Members were guided through the report, which consisted of an Executive Summary (Appendix I) highlighting performance against objectives and the seven governance areas; the Performance Update Report for October 2025 to March 2026 (Appendix II); the Citizen Voice Report, which triangulated a range of data sources (Appendix III); and the Corporate Plan Performance Scorecard (Appendix IV). Councillor Matthews advised that the reports demonstrated strong delivery across a number of key priority areas, whilst also highlighting ongoing pressures and areas requiring improvement. The Citizen Voice Report provided valuable stakeholder feedback; however, a gap remained between organisational performance and public perception, and further work was required to address this. Key messages for Members included maintaining confidence in delivery across many service areas, ensuring public communications reflected both achievements and challenges, and continuing to strengthen communication and engagement. She also thanked officers for their hard work in compiling the data and undertaking the analysis. The Insight, Strategy and Delivery Manager and the Strategic Planning and Performance Officer attended the meeting for this item. Councillor Matthews expressed her thanks to both officers and their teams for their work. The Insight, Strategy and Delivery Manager provided Members with an overview of the report and highlighted that the annual review supported a culture of continuous improvement, enabling the Council to deliver for residents in accordance with its values and principles. She advised that a final report would be presented to Council in July. The Insight, Strategy and Delivery Manager then provided a detailed overview of the findings. She explained that the overall performance position was mixed but broadly stable, with strong performance in some service areas alongside challenges associated with increasing demand, greater service complexity, inequality, financial sustainability, and public confidence. Members were informed that 14% of performance measures remained classified as a “priority for improvement”, compared to 20% at the corresponding point in the previous year, indicating progress whilst identifying areas where further improvement was required. She guided Members through each Corporate Plan theme, highlighting both achievements and challenges, and outlined the actions being undertaken to improve service delivery. Feedback from Members was welcomed. The Chair thanked officers for their hard work and for preparing a comprehensive report. Members acknowledged the significant amount of work involved in compiling the report. The Chair considered that the report provided a balanced assessment of the Council’s performance and service delivery. He reminded Members that the role of the Governance and Audit Committee was to monitor the effectiveness of the Council’s performance management processes and to assure itself that those processes were robust and consistently applied across the authority. He also emphasised that consideration of the report formed part of the Committee’s statutory responsibilities. Members recognised that, although some measures remained within the same performance categories, many areas had demonstrated positive trends. The challenges facing services had been clearly identified, and the report placed a strong emphasis on actions to address those areas. Members discussed various aspects of the report and its findings with officers. The main areas of discussion included: • The importance of ensuring that performance data was accurate and up to date. Officers advised that services were responsible for inputting data into the Verto system, with data being collected and updated on a quarterly basis. • Members sought further clarification on how the document functioned as a living document, including how it was reviewed and utilised by officers and committees. Officers confirmed that the document was regularly updated and welcomed feedback regarding terminology and presentation. It was agreed that references to Active Travel and electric vehicle charging infrastructure would be reviewed. • Each service received quarterly performance updates through Strategic Planning Officers and discussions at leadership team meetings. Officers acknowledged that continuous improvement remained essential and that performance discussions routinely focused on identifying actions to improve outcomes. Members were advised that reports submitted to Committee reflected performance data at specific points in time and were presented twice annually. • Officers were exploring ways to improve the accessibility of performance information. Members suggested the provision of a concise summary for online publication to enable both Members and the public to access key information quickly and easily. Officers advised that an infographic was being prepared for the report’s presentation to Council. • Members were informed that a new communications platform would provide opportunities to consolidate data from a number of sources into a single system. Officers expressed confidence that the platform would improve data analysis and reporting. • Significant progress had been made in delivering the Corporate Plan, and it had been agreed that the Plan would be extended to allow outstanding work to be completed. Members received further information regarding two key risks associated with delivery of the remaining actions. Officers emphasised the importance of having appropriate management structures in place and confirmed that discussions regarding governance arrangements remained ongoing. It was recognised that a gap existed between actual performance and public perception, and Members were advised that work was ongoing to address this and improve public confidence in the Council. Officers also confirmed that discussions continued with Welsh Government and Data Cymru regarding improvements to performance reporting and communication across local authorities. Members stressed the importance of training and awareness in relation to the new platform. • Members were reminded of the Strategic Management Member Workshop scheduled for 16 June 2026. • Members welcomed the Citizen Voice Report and considered it to be an important appendix to the overall report. • Officers confirmed that the mitigations outlined within the report were active mitigations and advised that ongoing work with the Communications Team was delivering improvements. • Officers advised that discussions had taken place with the Prosperous Denbighshire Board regarding performance under the Prosperous Denbighshire theme. One of the key lessons learned had been the importance of identifying appropriate indicators and establishing realistic timescales. Work had already commenced on developing indicators for the next Corporate Plan. • The Chair suggested that greater emphasis be placed on the Council’s financial resilience position when the report was next presented. Members also noted the positive response rates and outcomes from the staff survey. • Officers emphasised the importance of the Council-wide commitment to becoming a Net Carbon Zero and Ecologically Positive Council by 2030. Members were reminded that the Constitution required decision-making processes to consider impacts on climate and nature. The role of the Governance and Audit Committee was to ensure that the performance management and risk management processes relating to these objectives were robust and effective. • Members were advised that no detailed statutory guidance existed for the preparation of the Self-Assessment Report. Officers confirmed that they had undertaken detailed mapping exercises to ensure that the report met legislative requirements and were satisfied that it complied with the relevant statutory obligations. RESOLVED that the Governance and Audit Committee: • Considered the reports and provided comments, emphasising the importance of ensuring that the document continued to operate as a living document. The Committee also expressed a desire to see clear plans for the development of a more user-friendly method of presenting performance data. • Reflected on the key messages arising from the Performance Self-Assessment and the October 2025 to March 2026 Performance Update Report.
Decision as recorded
RESOLVED that the Committee reviewed and approved the draft Internal Audit Plan for 2026/27 and would monitor progress against the Plan throughout the year.
The Lead Member for Finance, together with the Chief Internal Auditor, introduced the previously circulated Internal Audit Plan report. The report presented the Internal Audit Plan for 2026/27. Members were advised that regulations required authorities to maintain an adequate and effective system of internal audit in respect of their accounting records and systems of internal control. The independent Internal Audit function was designed to provide assurance to those charged with governance that these arrangements were adequate and effective. Members were reminded that, in accordance with the Global Internal Audit Standards for the UK Public Sector, the Chief Internal Auditor was required to produce an annual Internal Audit Plan for approval by the Governance and Audit Committee within the first three months of the financial year. The Chief Internal Auditor explained that the Internal Audit Plan was a flexible document developed following discussions with Heads of Service, the Corporate Executive Team (CET), Cabinet Members, and through consideration of the Council’s Corporate Risk Register. The Internal Audit Plan had been organised under seven headings, and the Chief Internal Auditor guided Members through each section as detailed within the report. Members were informed of the methodology used to develop the Plan. Meetings had taken place with all Heads of Service to discuss areas of concern, emerging issues, and any service areas that may have warranted review. The Plan incorporated information from service risk registers, the Corporate Risk Register, and matters identified by Internal Audit through previous audit work. In addition, discussions with Internal Audit colleagues across North Wales had highlighted areas that may have required consideration. Once the relevant information had been gathered, it had been incorporated into the Internal Audit assurance mapping exercise. This process involved the use of a risk-based assessment tool that categorised review areas and generated an Internal Audit needs rating, enabling the prioritisation of audit work throughout the year. Attention was drawn to the size of the proposed Plan. Members were advised that the 2026/27 Plan appeared significantly larger than that of the previous year. However, assurance was provided that this did not represent a substantial increase in workload. The increase in the number of reviews reflected the fact that school reviews had been separated within the Plan and that Local Regeneration Fund projects had been listed as individual reviews. The Chief Internal Auditor acknowledged that resource availability had remained a concern over the previous 12 months and had been considered during development of the Plan. Nevertheless, he considered the Plan to be realistic and achievable. He advised that his target was to achieve between 70% and 85% completion of the Plan during the year. The Chair thanked those involved for preparing the report. He acknowledged the challenges associated with producing the Plan and agreed that it was important for the document to remain flexible in order to respond to emerging priorities and meet as many organisational needs as possible. He also thanked the Chief Internal Auditor for explaining the process by which the Plan had been developed. In response to a question from Councillor Mark Young, the Chief Internal Auditor confirmed that the Plan aligned with both the Council’s Corporate Risk Register and individual service risks, in addition to concerns raised by Heads of Service. He advised that there were currently no overdue audit recommendations. Services were using the Verto system to record actions and monitor progress against recommendations. Any recommendations that were not completed within the agreed timescales were subject to follow-up action. He further stated that he was confident that, once vacant posts were filled, the team would be able to deliver a significant proportion of the Plan. Members were informed that, following discussions with the Head of Education, it had been agreed that an Internal Auditor would attend each school cluster meeting to explain the audit process and respond to any questions. Members were reminded that completed audit reports were routinely circulated following completion, with summary updates presented to the Governance and Audit Committee throughout the year. As part of the annual programme, Internal Audit also reviewed a number of capital projects. Limited detail was included within the Plan because reviews would be undertaken throughout the year in response to emerging risks and concerns. No decisions had yet been made regarding which specific capital projects would be reviewed. Members were advised that the planned review of partnerships would be presented to several groups, including CET, Cabinet, Partnerships Scrutiny Committee, and the Governance and Audit Committee, to enable full consideration of the findings. Members were further advised that they could request the presentation of specific audit reports to committees or other groups should they wish to explore particular issues in greater detail. They were also encouraged to raise any concerns with the Internal Audit Team for discussion and potential inclusion within future audit work. The Chief Internal Auditor confirmed that the two capital project reviews completed during the previous year had been presented to the Committee. He further advised that, should a number of potential capital projects be identified for review, he would bring those proposals to the Committee for discussion. The Chief Internal Auditor stated that he would be content to include additional information demonstrating how individual audit reviews aligned with both service and corporate risks. Members were reminded that Verto was the corporate system used to record data, actions, and recommendations. When maintained accurately and updated on a timely basis, it enabled officers to access current information as required. Officers were encouraged to ensure that information on Verto was regularly updated. Members were advised that audits receiving a low or no assurance opinion would be subject to a follow-up review, with a subsequent report presented to the Committee. Assurance was provided that Internal Audit actively monitored progress against recommendations. The Head of Finance and Audit informed Members that service savings and budget monitoring information were reported to Cabinet on a monthly basis, supported by quarterly reports detailing savings and overspends across service areas. The Chief Internal Auditor confirmed that a review of schools experiencing financial difficulties had been undertaken during the previous year. The review had identified schools in that position and verified that the required documentation had been completed and submitted appropriately. Internal Audit had concluded that robust processes and procedures were in place. The attendance of Internal Auditors at cluster meetings also provided opportunities to support schools and discuss forthcoming audit work. Close collaborative working between Internal Audit, Education, and Finance services continued. Members were advised that the Plan included contingency provision to accommodate unplanned work, staff sickness, and reviews that might require additional time. These allocations were based on estimated time requirements for each area of work. The Chief Internal Auditor confirmed that consideration had also been given to areas that had not been reviewed for a significant period. Due to resource constraints, there were occasions when follow-up reviews could not be undertaken as quickly as desired. Where concerns arose in areas that had not been audited for several years, the Audit Team would review the position and determine the most appropriate course of action. Members were informed that each auditor had approximately 192–198 productive audit days available annually after deducting leave, public holidays, training commitments, and anticipated sickness absence. The Audit Plan had therefore been developed to reflect these resource constraints. For 2026/27, available audit capacity equated to approximately 550 audit days across the service. Members also noted that the Internal Audit Team had been approached directly by four Community Councils seeking audit support. In response to comments from the Chair regarding the previous review of Section 106 agreements, the Chief Internal Auditor referred to a number of issues identified during that review. These included the absence of a clear framework to document and manage the Section 106 process and the allocation of contributions received, the lack of a central register accessible to relevant officers, and inadequate arrangements for monitoring trigger points and tracking the status of agreements. He confirmed that this area had been retained within the audit programme for further review. The Chair thanked officers for the detailed report and for the comprehensive responses provided to Members’ questions and comments. RESOLVED that the Committee reviewed and approved the draft Internal Audit Plan for 2026/27 and would monitor progress against the Plan throughout the year.
Decision as recorded
RESOLVED that the Governance and Audit Committee considered the details included within the report and support the proposals as suggested by the Head of Finance and Audit and the committee supports the additional resources the Finance Team was requesting set out within the report.
The Lead Member for Finance introduced the previously circulated report and reminded Members that the Council had a statutory duty to produce annual Statements of Accounts in accordance with approved accounting standards. The accounts were subject to audit and required formal approval, with responsibility delegated to the Governance and Audit Committee. Members were advised that the draft Statement of Accounts for the 2022/23 financial year had been produced and signed by the Head of Finance and Audit on 6 September 2023. The audit commenced in January 2024 and, during the latter stages of the audit, an emerging issue was identified which had also been identified in other local government audits across Wales and had the potential to affect all councils. In April 2024, auditors identified issues relating to the Council’s asset registers for ‘Other Land and Buildings’. It was emphasised that this was a technical accounting matter relating to historic accounting entries. The Lead Member stressed that, aside from the asset-related issues, the audit of the 2022/23 accounts had been completed and no other material matters had been identified. Members were reminded of the previous decision to engage CIPFA on a consultancy basis to assist with resolving the issue. CIPFA had been engaged in July 2025. However, during December 2025 and January 2026, the two officers assigned to the project left CIPFA, and little progress had been made since the end of December 2025. As a result, officers had been unable to present updated audited accounts to the Committee as planned in March 2026. The agreement with CIPFA had subsequently come to an end, and the Finance Team had been reviewing options for completing the work relating to the asset registers. Members were advised that the asset-related issues, and the work required to address them, had had a consequential impact on the preparation of the 2023/24 and 2024/25 draft accounts. As the issue related to balance sheet entries, the closing balances for 2022/23 became the opening balances for subsequent years, resulting in the issue continuing until it could be satisfactorily resolved. The Lead Member thanked Finance officers and Audit Wales colleagues for their continued commitment, support, and hard work. The Head of Finance and Audit thanked the Lead Member for the introduction and guided Members through the three options outlined within the report, including the advantages and disadvantages of each. The options included resolving the issue in-house or engaging external support. She advised that the preferred option of the Finance Team was to increase internal resources to focus on resolving the asset register issues whilst continuing to explore opportunities for external support where appropriate. Discussions had taken place with both Cabinet and the Corporate Executive Team, and both had supported the need for additional resources. The report outlined the proposed approach for the 2022/23, 2023/24, and 2024/25 financial years. Members were advised that regular progress updates would continue to be presented to the Governance and Audit Committee. It was further explained that the 2022/23 and 2023/24 accounts would receive qualified audit opinions from Audit Wales. Given the number of outstanding years involved, officers had reviewed the position carefully and considered the most appropriate way forward. Members were advised that publication of the 2022/23 accounts would effectively allow that year to be closed, with the aspiration of concluding the 2023/24 accounts later in the year. The Head of Finance and Audit stated that it was hoped all outstanding accounts and associated issues would be resolved by March 2027. This would provide sufficient time to complete the asset-related work, embed additional resources within the team, and ensure the work was completed correctly. Members were advised that discussions with Audit Wales had been constructive and would continue. The Chair acknowledged the frustration officers must have experienced in seeking to resolve the issue. He reiterated that the matter related to a historic technical accounting issue and had no impact on the Council’s financial position or budget. Nevertheless, he stressed the importance of achieving a satisfactory resolution. The Chair thanked all officers involved for their efforts to date. Members also acknowledged the risks associated with the proposed approach, including potential reputational impacts and the possibility that additional resources might not deliver the desired outcome. In response to Members’ questions and comments, the following matters were discussed in greater detail: • Members noted that the proposed plan appeared credible and reflected officers’ commitment to resolving the issues. Officers confirmed that they would continue to communicate progress wherever possible. It was acknowledged that the preparation and audit of local authority accounts was a complex process that required significant time and resources. Members encouraged officers to seek support from the Committee whenever appropriate. • Audit Wales representatives acknowledged the pressure and challenges associated with the issue and confirmed their commitment to working supportively and flexibly with the authority. It was explained that, for the 2022/23 accounts, the most expedient route to closure would be through the issue of a qualified audit opinion. Members were advised that a factual report outlining the history of the matter would be presented to the Committee in July. • Audit Wales confirmed its commitment to working with the Council towards restoring more timely completion of future Statements of Accounts. • Members were reminded that the responsibility for preparing and publishing the accounts rested with Denbighshire County Council. • Members highlighted the risks associated with recruiting and retaining a suitably qualified individual to support the work and suggested that this risk should be emphasised further. • It was acknowledged that the decision to recruit a permanent member of staff rather than engage an external consultant had been difficult. While there was a risk that a newly appointed employee could leave the authority, Members recognised that the specialist skills would be required on an ongoing basis and therefore represented a longer-term benefit to the Council. • Members noted that a number of previous options and recovery plans had already been explored. • It was recognised that additional costs would be incurred in resolving the issue and that funding would need to be identified within the 2027/28 financial year. • Members were advised that CIPFA had not received full payment under the original agreement, as the agreed work had not been completed. • Audit Wales confirmed that audit fees were based on the time spent undertaking audit work and resolving issues. Fee discussions took place with the Head of Finance and Audit, and no profit element was included. • Officers confirmed that alternative methods of completing the work had been explored and that all available options continued to be reviewed alongside the available historic data. • Members acknowledged the high standard of work undertaken by Finance staff and agreed that additional resources would be beneficial. • It was noted that, without intervention, the historic accounting issue would continue to affect future years and would likely result in further qualified audit opinions. • The Monitoring Officer emphasised that the authority should not knowingly remain in breach of its statutory obligations and confirmed his support for the proposed approach. • Members expressed support for the preferred option outlined in the report, while recognising the risks associated with it. • It was clarified that the Chair, as the Committee’s authorised representative, would sign the qualified accounts on behalf of the Governance and Audit Committee. Members noted that the Statement of Responsibilities could be updated to make this arrangement clearer. • Members recognised the importance of clear communication regarding the closure of the accounts. The Head of Finance and Audit proposed circulating a briefing note to all Members following the meeting. • The Chair referred to correspondence sent by the Auditor General to the Chief Executive, which requested that the authority develop a realistic, robust, and detailed recovery plan covering the completion of the 2022/23 and 2023/24 accounts. Members were advised that the proposed action plan would address this requirement. • Officers committed to continuing to provide regular progress reports and updated timescales to the Governance and Audit Committee. RESOLVED that the Governance and Audit Committee considered the details included within the report and support the proposals as suggested by the Head of Finance and Audit and the committee supports the additional resources the Finance Team was requesting set out within the report.
Decision as recorded
RESOLVED that the Governance and Audit committee considered the contents of the report and appendices and provided feedback.
The Chair welcomed the Lead Member for Finance and the Head of Finance an Audit to present the report (previously circulated). The Lead Member for Finance informed Members the report set the scene for budget setting in the medium term (2027/28 – 2029/30) and was designed to update the Committee with · proposed budget strategy for setting the budget for 2027/28 as set out in the Medium-Term Financial Strategy (MTFS). · high level financial projections for the 3-year period 2027/28 to 2029/30 in the Medium-Term Financial Plan (MTFP), and · the self-assessment of the Council’s financial resilience and sustainability. The MTFP showed high level estimates of known pressures along with the impact of estimated increases in the council tax and funding from Welsh Government. Members were guided through the appendices to the report. Members heard the importance of noting the financial challenge the authority faced remained for the forthcoming years. The impact on the estimated increases in Council Tax and funding from Welsh Government were included in the report. Appendix 3 provided details of the medium term financial strategy. Which provided details of the authority’s strategic approach to the management of finances and outlined some of the financial issues which may be faced over the next 3 years. The paper was an early version and would be refined over the financial year. It provided details of workstreams that required progression to achieve balanced budget. It was stressed to Members local governments across the UK faced a series of acute pressures. Demand for services from communities continued to grow and the complexity of needs had intensified in areas such as Education, Social Care and Homelessness in recent years. Costs of service delivery in these areas have risen significantly and those increases were well above headline rates of inflation. These cost pressures are dominating council spending and are in areas where there are statutory duties to provide services. The combined effect of these factors had been to increase the Council’s budget requirement to spend on delivering day to day services year on year which was set to continue. The scale of the financial challenge faced by the Council should not be underestimated. Key points included: • Pressures were difficult to forecast but were ranging from £13m to £25m in 2027/28 with a mid-range of £18m. Similar ranges are forecast for 2028/29 and 2029/30. • The 2026/27 funding settlement from Welsh Government provided no future indication of funding. The current predictions for future funding from Welsh Government assume increases of 1% in the absence of any indication from government and were like assumptions other Welsh Councils were making. • Assumptions made about Council Tax increases in the MTFP range from 4% - 8% for 2027/28 and a 5.23% long term average thereafter for both years. This was in line with pressures as a proportion of 2026/27 budget, though it is important to note that no decisions have been made yet. A mid-range assumption of a Council Tax increase of 6% for 2027/28 yields an additional £5m so increased revenue only addressed c.40% of the funding gap, the remaining gap was substantial at £11m. • Over the 3 year period (2027/28 – 2029/30) the forecast gap ranged from a low of £24m to a high of £42m, with a mid-range projection of £30m. It was stressed these were high level projections and estimates. The Lead Member informed Members she was in the process of writing to the new Minister in Cardiff to relay the pressures faced in Denbighshire. She offered her thanks to all in the team for the continued work. The Head of Finance and Audit along with the Chair thanked the Lead Member for the detailed introduction. The Chair reminded Members under the Governance and Audit Terms of Reference it had a duty to seek assurance of robust processes in the council. Members thanked the officers for the clear and easy to understand papers and information. Councillor Gwyneth Ellis asked for clarity on the reason for using such figures on council tax. She suggested rather than use the same figure three times it may be more beneficial to have increasing percentages. The Head of Finance and Audit thanked Members for highlighting an error on the table in the plan. Members heard the mistake would be altered the figures was in thousands not millions. Members asked if the data could be presented in an easier to read table. It was explained if costs were on the high range of estimates, the likelihood of funding would also be higher. Welsh Government would assess the risks across local government and providing funding. Officers stated they would look at the way the data was presented to committee. Officers would compare how other local authorities present to findings and review the way Denbighshire present to committees. The Chair stated he supported the Lead Member contacting the new Minister in Cardiff to relay concerns of Members and officers across the authority. The Lead Member confirmed she was in the process of writing a comprehensive letter to the new Minister highlighting all the pressures on local authorities and to highlight the value authorities are inputting into services such as education and social services. The Head of Finance and Audit confirmed Lay Members would be included on any budget workshops. Members heard, officers felt completing the Self-assessment of Financial Resilience and Sustainability had been positive. She felt going forward it would be beneficial to complete that assessment annually for presentation to Governance and Audit. RESOLVED that the Governance and Audit committee considered the contents of the report and appendices and provided feedback.
Decision as recorded
RESOLVED: that subject to the above, the Governance and Audit Committee Forward Work Programme be noted.
The Governance and Audit Committee’s Forward Work Programme (previously circulated) was presented for consideration. The Chair reminded members along with the Vice Chair, he met with the Chief Internal Auditor to manage the workload. A review of the forward work programme would be required given the status of the Statement of Accounts. The Monitoring Officer confirmed he would review dates with the I.T Manager and the Cyber Security Officer to arrange a training session on Cyber Resilience. The Committee agreed there was no need for a training session on Internal Audit Assurance mapping was no longer required. The Head of Finance and Audit confirmed a training session on the Statement of Accounts had been scheduled for the 14th July before the next meeting. The Chair supported the training session and stressed the importance of Members attending the session if they were available. RESOLVED: that subject to the above, the Governance and Audit Committee Forward Work Programme be noted.
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