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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 Dr Norma Barry be elected as Chair for the ensuing Municipal Year.
RESOLVED That the updates in respect of actions arising from the 11 May 2026 meeting be noted.
RESOLVED (a) That the correspondence received by the Chair from the Leader of Council regarding the inadequate insurance cover for Manorbier school, which was destroyed by fire, and the need for assurance regarding the insurance arrangements across the Council, be noted. (b) That an audit of insurance cover across the Council to assess its sufficiency to cover losses, taking account of risks and value for money, be requested. (c) That an investigation be undertaken by Internal Audit regarding the lessons learnt from the Manorbier school incident and the actions taken following the lessons learnt. (d) That delegated Authority be granted to the Chief Executive, in consultation with the Committee via email, to draft and agree the terms of reference for the requested audit and investigation.
RESOLVED That the content of the report in response to the recommendations of the Committee meeting on the 11 May 2026 in relation to the Cranham Park and Tudor Place house building projects, be noted.
RESOLVED That the public be excluded from the meeting in accordance with Section 100A (4) of the Local Government Act 1972 as Appendices 1 and 2 involved the likely disclosure of exempt information as defined in Paragraphs 12, 13, 14, and 16 of Part 4 of Schedule 12A to the Act; and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. The webcast was paused at this juncture. Having convened in private session in accordance with Paragraphs 12, 13, 14, and 16 of Part 4 of Schedule 12A to the Local Government Act 1972, the Committee considered the information contained within the consultant’s report and had a range of questions answered. The Committee was content with the suggested improvements outlined within the action plan. The webcast was then resumed at this juncture. The Head of Transport and Operations provided an overview of the action plan and stated that significant progress had been made in response to the audit findings over the previous six weeks. It was stated that improvements included reviews of operating centres, driver licence checks, vehicle roadworthiness testing, driver hours management, and compliance monitoring processes. It was noted that a comprehensive programme of training and competency development had been implemented across all levels of the service, supported by external consultants, alongside revised driver guidance, routine compliance checks, and enhanced management oversight. Members were advised that additional specialist audits had been commissioned with resulting recommendations being incorporated into action plans, and external consultancy support remained in place alongside a new management information system. Moved by Mr John Evans; Seconded by Councillor David Simpson The vote, undertaken by way of a roll call, was carried. The votes were recorded as follows: For the Motion: Councillors Mike James, Huw Murphy, David Simpson, Aled Thomas and Jacob Williams; and Dr Norma Barry, Mr John Evans and Mr Chris Halford [8] There were no votes against the motion or abstentions. RESOLVED (a) That the summary findings of the independent compliance review be noted. (b) That the measures taken and progress made on the development and implementation of an improvement programme be noted. (c) That the Committee receive regular reports on progress in relation to the implementation of the recommendations from the Transport Assurance Panel.
RESOLVED That the progress made in completion and audit of the Statement of Accounts for 2024-25 and 2025-26, be noted.
RESOLVED That the Budget Monitoring Outturn Report for 2025-26 be noted.
RESOLVED That the Annual Report for 2025-26 be noted, and submitted to Full Council for consideration, including the Committee’s assurance opinion on the adequacy and effectiveness of the Council’s governance, risk management and internal control arrangements.
RESOLVED (a) That the update and the level of assurance provided on the Council’s governance, risk management and control arrangements be noted. (b) That the Recommendation Tracking and Escalation Protocol and the Counter Fraud Publicity Protocol, be approved. [Councillor Huw Murphy left the meeting at this juncture.]
RESOLVED That the current position on Internal Audit and External Regulator recommendations and progress made to date, be noted.
RESOLVED (a) That the draft Annual Governance Statement for 2025–26 and the assurance provided in relation to the effectiveness of the Council’s governance arrangements, be noted. (b) That approval of the Annual Governance Statement be recommended to Full Council. [Councillor Huw Murphy rejoined the meeting at this juncture.]
RESOLVED That the update provided on Business Risk Management and the contents of the Corporate Risk Register, be noted.
RESOLVED (a) That the contents of the Audit Plan and the key risk areas identified, be noted. (b) That support be provided to officers in addressing the risks identified while receiving further updates from Audit Wales as the audit progresses to ensure that any recommendations are effectively implemented.
RESOLVED (a) That the changes to the Committee’s Terms of Reference be noted. (b) That the Forward Work Programme for 2026-27 be approved, with the following addition; · That an update in relation to the Transport Unit Compliance Review and Improvement Programme (progress update regarding the implementation of the recommendations from the Transport Assurance Panel) be added as an update for each meeting for the remainder of the financial year. (c) That it be agreed that the work programme remains a live document, subject to amendments to reflect emerging risks, regulatory changes and Committee requirements.
Decision as recorded
RESOLVED That Dr Norma Barry be elected as Chair for the ensuing Municipal Year.
The Head of Democratic Services invited nominations for the role of Chair. Councillor David Simpson Moved that Dr Norma Barry be duly appointed as Chair; Seconded by Councillor Aled Thomas. Councillor Huw Murphy Moved that Mr John Evans be duly appointed as Chair; Seconded by Councillor Jacob Williams. The meeting was paused at this juncture for Members to vote via a secret ballot. Following the issuing of the ballot papers, the votes were verified and counted, the meeting was resumed and the Head of Democratic Services announced the number of votes cast as follows: Dr Norma Barry – 5 Mr John Evans – 3 RESOLVED That Dr Norma Barry be elected as Chair for the ensuing Municipal Year.
The Chair sought nominations for the election of Vice-Chair for the ensuing municipal year. Councillor David Simpson nominated Mr John Evans; Seconded by Councillor Jacob Williams. The vote, undertaken by way of a show of hands, was carried. RESOLVED That Mr John Evans be elected as Vice-Chair for the ensuing Municipal Year.
There were no apologies for absence received.
Following a request from the Chair, the following Cabinet Members were in attendance in relation to Agenda Item No 8: Follow up report to the Audit Report on Cranham Park (Old School Lane, Johnston) and Tudor Place (Tiers Cross) House Building Projects; · Councillor Jon Harvey – In his capacity as former Leader · Councillor Michelle Bateman – Cabinet Member with responsibility for Housing
There were no declarations of interest received.
Moved by Dr Norma Barry; Seconded by Councillor Mike James The vote, undertaken by way of a show of hands, was carried. RESOLVED That the Minutes of the meeting held on 11 May 2026 be approved as a correct record. [Councillor David Simpson abstained from voting as he was not present at the May Committee meeting.]
Decision as recorded
RESOLVED That the updates in respect of actions arising from the 11 May 2026 meeting be noted.
The Internal Audit and Counter Fraud Manager introduced the item and highlighted that all actions had been completed. The Vice-Chair made reference to Action 1, in relation to the Vehicle Maintenance Unit audit and requested that evidence be shared to support the update provided that ‘The Transport Audit did not identify any anecdotal evidence linking missed refuse collections to the Vehicle Maintenance Unit’. Before an answer from Officers was sought, the Chair sought to understand how evidence could be provided where the conclusion was that no evidence existed. In response, the Chief Executive provided context regarding the causes of missed refuse collections during 2024 and 2025, which were stated primarily to be due to insufficient staffing levels and fleet availability issues. It was stated that improvements had since been implemented but that the recycling fleet was approaching the end of its operational life and would require replacement in the near future. Councillor Aled Thomas also did not support that there no was anecdotal evidence, stating that communications had been received that attributed missed collections to mechanical issues affecting collection vehicles. In response, the Chief Executive clarified that missed collections had resulted from both staffing shortages and vehicle-related issues, however, stated that the specific audit finding related to whether there was evidence linking missed collections to governance or compliance failings within the Vehicle Maintenance Unit itself. It was reiterated that no evidence had been identified demonstrating that shortcomings highlighted in the audit had caused vehicle breakdowns or missed collections. The Vice-Chair clarified that his original question had been whether there was a correlation between missed collections and vehicles being unavailable and again requested sight of the information used to reach the conclusion that there was no anecdotal evidence and suggested that a comparison of complaint records and vehicle availability records could help substantiate the matter. It was agreed that an update would be provided following the meeting by the Assistant Chief Executive/Director of Place (AP). Moved by Councillor David Simpson; Seconded by Mr Chris Halford The vote, undertaken by way of a show of hands, was carried. RESOLVED That the updates in respect of actions arising from the 11 May 2026 meeting be noted.
The Chair advised that with the Committee’s consent, she wished to consider the supplementary item, Agenda Item No. 19 ‘Request to undertake an organisational wide review of insurance arrangements’, at this juncture, which was agreed.
Decision as recorded
RESOLVED (a) That the correspondence received by the Chair from the Leader of Council regarding the inadequate insurance cover for Manorbier school, which was destroyed by fire, and the need for assurance regarding the insurance arrangements across the Council, be noted. (b) That an audit of insurance cover across the Council to assess its sufficiency to cover losses, taking account of risks and value for money, be requested. (c) That an investigation be undertaken by Internal Audit regarding the lessons learnt from the Manorbier school incident and the actions taken following the lessons learnt. (d) That delegated Authority be granted to the Chief Executive, in consultation with the Committee via email, to draft and agree the terms of reference for the requested audit and investigation.
The Chair advised that written correspondence had been sent to her from the Leader of the Council regarding concerns in relation to the insurance cover for Manorbier School, which was destroyed by a fire. It was stated that the correspondence had highlighted that the insurance cover, taking account of the excess amount, was minimal and its contribution to the re-building of the school would have been derisory. It also raised concerns about the adequacy of insurance cover across the Authority as a whole, which had therefore led the Leader to request that an organisational wide review of insurance arrangements be undertaken. It was stated that the full correspondence from the Leader, along with the Chair’s preliminary response had been shared to all Committee Members ahead of the meeting. Members views were sought on the request, and the following points were raised: · The Vice-Chair expressed that it was his opinion that insurance procurement and coverage levels were an operational matter for officers and suggested that a benchmarking exercise should be undertaken by the Authority, and the findings reported back to the Committee, to ascertain if the insurance cover was adequate or not. · Councillors Huw Murphy and Aled Thomas supported a comprehensive audit and investigation into the Manorbier School fire and the Council's insurance arrangements. They raised concerns regarding governance, communication, contractor liability, insurance cover, and the financial outcome of the insurance claim, and emphasised the need to review lessons learned, ensure value for money, and provide assurance that similar issues could be prevented in the future. · The Chair sought clarification on whether actions following the fire had influenced the insurance settlement. In response, the Director of Resources confirmed that the level of insurance settlement at the School was affected by actions not taken following the fire, particularly the failure to make the building fully watertight, which resulted in additional weather-related damage not covered by insurers. · Councillor Jacob Williams supported the proposed review but emphasised that the investigation should not become overly general. It was requested that particular attention be given to understanding what occurred at Manorbier School, why the insurance settlement was comparatively low, and what lessons could be learned from the incident. Following Members views being sought, the Director of Resources advised that a full audit could be undertaken and highlighted that the Council already reviewed value for money in its insurance arrangements, used external insurance advisers, and partially self-insured. The Insurance Manager added that the timing was appropriate for an audit, as the Council's insurance programme would be retendered within the following year, allowing any findings to inform future insurance procurement arrangements. Following discussion, it was suggested by the Chief Executive that it would be beneficial to separate the requests into two parts as follows: (a) That an audit of insurance cover across the Council to assess its sufficiency to cover losses, taking account of risks and value for money, be requested. (b) That an investigation be undertaken by Internal Audit regarding the lessons learnt from the Manorbier school incident and the actions taken following the lessons learnt. Which was an approach the Committee agreed with. To assist with time, it was also suggested that delegated Authority be granted to the Chief Executive, in consultation with the Committee via email, to draft and agree the terms of reference for the two requested audits. Moved by Councillor David Simpson; Seconded by Councillor Jacob Williams The vote, undertaken by way of a roll call, was carried. The votes were recorded as follows: For the Motion: Councillors Huw Murphy, Mike James, David Simpson, Aled Thomas and Jacob Williams; and Dr Norma Barry and Mr Chris Halford [7] Abstentions: Mr John Evans [1] There were no votes against the motion. RESOLVED (a) That the correspondence received by the Chair from the Leader of Council regarding the inadequate insurance cover for Manorbier school, which was destroyed by fire, and the need for assurance regarding the insurance arrangements across the Council, be noted. (b) That an audit of insurance cover across the Council to assess its sufficiency to cover losses, taking account of risks and value for money, be requested. (c) That an investigation be undertaken by Internal Audit regarding the lessons learnt from the Manorbier school incident and the actions taken following the lessons learnt. (d) That delegated Authority be granted to the Chief Executive, in consultation with the Committee via email, to draft and agree the terms of reference for the requested audit and investigation.
Decision as recorded
RESOLVED That the content of the report in response to the recommendations of the Committee meeting on the 11 May 2026 in relation to the Cranham Park and Tudor Place house building projects, be noted.
The Committee considered a report by the Head of Housing and Public Protection in relation to the follow up report to the audit report on Cranham Park (Old School Lane, Johnston) and Tudor Place (Tiers Cross) house building projects. The Head of Housing and Public Protection presented a follow-up report in response to recommendations from the Committee's meeting on 11 May 2026. It was stated that cost increases associated with the Cranham Park development had been reported to and considered by the Housing Development Programme Board on several occasions, with increases challenged and approved where justified. An action plan to strengthen governance, membership arrangements and reporting processes was outlined, providing greater oversight and assurance for the Housing Development Programme. The Chair welcomed the former Leader, Councillor Jon Harvey, and the Cabinet Member with responsibility for Housing, Councillor Michelle Bateman, to the meeting to partake in the discussion. In response to a question raised by Mr John Evans, the Cabinet Member with responsibility for Housing stated that she did not know the overspend trigger levels and the actions required when those levels were exceeded but would expect to be informed where action was required. It was stated that the Individual Cabinet Member decision she signed off was compliant with the Constitution at the time. The former Leader added that he also was not aware of the specific trigger levels but stated that Cabinet had been made aware of the reasons for the cost increases at Cranham Park and that additional funding had been approved to cover the costs. Support was expressed for improvements to future reporting to Cabinet but it was noted that while Cabinet should be informed of significant cost increases and associated risks, it would not normally be expected to receive operational-level detail on individual project issues. The Vice-Chair highlighted the failings but concurred that the suggested improvements were suffice, despite them likely to require increased expenditure to support. Moved by Councillor David Simpson; Seconded by Mr John Evans The vote, undertaken by way of a show of hands, was carried. RESOLVED That the content of the report in response to the recommendations of the Committee meeting on the 11 May 2026 in relation to the Cranham Park and Tudor Place house building projects, be noted.
Decision as recorded
RESOLVED That the public be excluded from the meeting in accordance with Section 100A (4) of the Local Government Act 1972 as Appendices 1 and 2 involved the likely disclosure of exempt information as defined in Paragraphs 12, 13, 14, and 16 of Part 4 of Schedule 12A to the Act; and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. The webcast was paused at this juncture. Having convened in private session in accordance with Paragraphs 12, 13, 14, and 16 of Part 4 of Schedule 12A to the Local Government Act 1972, the Committee considered the information contained within the consultant’s report and had a range of questions answered. The Committee was content with the suggested improvements outlined within the action plan. The webcast was then resumed at this juncture. The Head of Transport and Operations provided an overview of the action plan and stated that significant progress had been made in response to the audit findings over the previous six weeks. It was stated that improvements included reviews of operating centres, driver licence checks, vehicle roadworthiness testing, driver hours management, and compliance monitoring processes. It was noted that a comprehensive programme of training and competency development had been implemented across all levels of the service, supported by external consultants, alongside revised driver guidance, routine compliance checks, and enhanced management oversight. Members were advised that additional specialist audits had been commissioned with resulting recommendations being incorporated into action plans, and external consultancy support remained in place alongside a new management information system. Moved by Mr John Evans; Seconded by Councillor David Simpson The vote, undertaken by way of a roll call, was carried. The votes were recorded as follows: For the Motion: Councillors Mike James, Huw Murphy, David Simpson, Aled Thomas and Jacob Williams; and Dr Norma Barry, Mr John Evans and Mr Chris Halford [8] There were no votes against the motion or abstentions. RESOLVED (a) That the summary findings of the independent compliance review be noted. (b) That the measures taken and progress made on the development and implementation of an improvement programme be noted. (c) That the Committee receive regular reports on progress in relation to the implementation of the recommendations from the Transport Assurance Panel.
The Committee considered a report by the Assistant Chief Executive and Director of Place in relation to the Transport Unit Compliance Review and Improvement Programme. Before consideration of the item, the Chair reminded Members that it was the view of the proper officer that details of Appendices 1 and 2 to the report should not be discussed in public session as they relate to matters for which the meeting is not likely to be open to the public as it involves the likely disclosure of exempt information as defined in Paragraphs 12, 13, 14, and 16, of Part 4, Schedule 12A to the Local Government Act 1972. It is also the opinion of the proper officer, where relevant, that the public interest in maintaining the exemption outweighs the public interest in disclosing the information, so consideration of the information would need to be undertaken in private session. The Chair also reminded Members of the importance of responding in accordance with Sections 19 and 22 of the Constitution, noting that the Committee should not question the conduct or effectiveness of officers in a public forum. The Chair welcomed Sarah Rees and Rob Mitcham from TC Wales to the meeting to partake in the discussion. The Assistant Chief Executive and Director of Place presented the report and stated that that an internal audit, previously reported in December 2025, had identified areas of concern within the service and led to the commissioning of a specialist technical audit. It was stated that the findings highlighted a range of issues requiring further work to strengthen compliance, governance, resourcing and operational understanding. Mr John Evans Moved to exclude the public to discuss the restricted information in private session in order to preserve confidentiality; Seconded by Mr Chris Halford. The vote was taken by way of a show of hands and carried. [Councillor Aled Thomas voted against the proposal to exclude the public.] RESOLVED That the public be excluded from the meeting in accordance with Section 100A (4) of the Local Government Act 1972 as Appendices 1 and 2 involved the likely disclosure of exempt information as defined in Paragraphs 12, 13, 14, and 16 of Part 4 of Schedule 12A to the Act; and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. The webcast was paused at this juncture. Having convened in private session in accordance with Paragraphs 12, 13, 14, and 16 of Part 4 of Schedule 12A to the Local Government Act 1972, the Committee considered the information contained within the consultant’s report and had a range of questions answered. The Committee was content with the suggested improvements outlined within the action plan. The webcast was then resumed at this juncture. The Head of Transport and Operations provided an overview of the action plan and stated that significant progress had been made in response to the audit findings over the previous six weeks. It was stated that improvements included reviews of operating centres, driver licence checks, vehicle roadworthiness testing, driver hours management, and compliance monitoring processes. It was noted that a comprehensive programme of training and competency development had been implemented across all levels of the service, supported by external consultants, alongside revised driver guidance, routine compliance checks, and enhanced management oversight. Members were advised that additional specialist audits had been commissioned with resulting recommendations being incorporated into action plans, and external consultancy support remained in place alongside a new management information system. Moved by Mr John Evans; Seconded by Councillor David Simpson The vote, undertaken by way of a roll call, was carried. The votes were recorded as follows: For the Motion: Councillors Mike James, Huw Murphy, David Simpson, Aled Thomas and Jacob Williams; and Dr Norma Barry, Mr John Evans and Mr Chris Halford [8] There were no votes against the motion or abstentions. RESOLVED (a) That the summary findings of the independent compliance review be noted. (b) That the measures taken and progress made on the development and implementation of an improvement programme be noted. (c) That the Committee receive regular reports on progress in relation to the implementation of the recommendations from the Transport Assurance Panel.
The meeting was paused at 13:00 for a lunch break and resumed at 13:30.
The Chair advised that a further alteration to the running order would be made, with Agenda items No. 15 ‘County Council Statement of Accounts 2024-25 and 2025-26 Progress Update’ and 16 ‘County Council Budget Monitoring Outturn Monitoring Report 2025-26’ being taken at this juncture due to the Cabinet Member with responsibility for Corporate Finance and Efficiencies having prior commitments which he needed to attend, which was agreed by the Committee.
Decision as recorded
RESOLVED That the progress made in completion and audit of the Statement of Accounts for 2024-25 and 2025-26, be noted.
The Committee considered a report by the Director of Resources, Head of Finance and Revenue Services and Head of Resources and Procurement in relation to the County Council Statement of Accounts for 2024-25 and 2025-26. The Cabinet Member with responsibility for Corporate Finance and Efficiencies presented the report and stated that delays to the 2024-25 accounts, arising from asset valuation issues, implementation of IFRS 16 and staff sickness, had impacted completion of the audit. It was stated that the revised accounts had now been submitted to Audit Wales, with the audited accounts expected to be presented to a future meeting. It was noted that as completion of the 2025-26 accounts was dependent on closure of the previous year's audit, the statutory deadline had not been met and it was stated that a revised timetable would be agreed with Audit Wales and that improvements to processes, governance and quality assurance were being implemented to strengthen future financial reporting. Councillor Aled Thomas expressed concern regarding the continuing delays in the completion and approval of the Council’s annual accounts which had been an issue for several years. In response, the Cabinet Member with responsibility for Corporate Finance and Efficiencies and the Director of Resources acknowledged that the delays were frustrating and stated that they were primarily due to staffing and resource pressures within a lean finance team, including the impact of long-term staff sickness. Additional challenges were highlighted and it was advised that Audit Wales has been kept fully informed. It was noted that an action plan was in place to improve the process, and Officers remained committed to meeting statutory deadlines in future years. The Vice-Chair asked whether the delays in completing and auditing the accounts could result in increased audit fees due to the additional time and work required by Audit Wales. In response, the Director of Resources confirmed that increased fees would likely be incurred and would be funded by the Directorate resources. In response to a point raised by Councillor Aled Thomas, Kate Havard from Audit Wales confirmed that Pembrokeshire County Council was not the only body with outstanding accounts for 2024-25, there were currently five. Moved by Mr John Evans; Seconded by Councillor David Simpson The vote, undertaken by way of a show of hands, was carried. RESOLVED That the progress made in completion and audit of the Statement of Accounts for 2024-25 and 2025-26, be noted.
Decision as recorded
RESOLVED That the Budget Monitoring Outturn Report for 2025-26 be noted.
The Committee considered a report by the Director of Resources, Head of Finance and Revenue Services and Head of Resources and Procurement in relation to the County Council Budget Monitoring Outturn Monitoring Report for 2025-26. The Cabinet Member with responsibility for Corporate Finance and Efficiencies reported a £5.6 million underspend against the net revenue budget. It was stated that the position reflected effective demand management, additional grant funding, vacancy savings and preventative service approaches. It was noted that the Council had achieved most of the savings targets and delivered significant capital investment but while overall financial performance was positive, council tax arrears had increased, partly due to ongoing Valuation Office Agency appeals. It was added that many underspends were non-recurring and that significant financial pressures and service demands remained, requiring continued transformation and financial discipline. The Vice-Chair welcomed the approach as outlined by the Cabinet Member to manage potential council tax refund liabilities and sought clarification on whether the Council would be required to pay interest on refunds arising from successful appeals where properties are transferred between council tax and business rates. In response, the Director of Resources stated that there was no interest paid. Following clarification sought by the Vice-Chair, the Director of Resources outlined the causes of overspend within his Directorate. In response to clarification sought by the Vice-Chair regarding the Chief Executives Directorate overspend and whether the departure of the Assistant Chief Executive would affect it, the Cabinet Member with responsibility for Corporate Finance and Efficiencies stated that he did not believe there would be any increased costs related to the departure of the Assistant Chief Executive. The Vice-Chair sought assurance that the balance held in the Vehicle and Plant Reserve would be sufficient to fund the replacement of the Council’s ageing vehicle fleet and meet future vehicle maintenance and renewal requirements. In response, the Director of Resources confirmed that reserve was considered sufficient and provided some further detail. It was also confirmed that if there was ever a surplus in that reserve, the contributions would be reduced. In response to clarification sought by the Vice-Chair, the Director of Resources confirmed that the balance held in the West Wales Crematorium Reserve was ring-fenced for crematorium-related purposes. Councillor Mike James queried whether school transport costs were funded from school budgets or the Council’s budget, and queried what support was available to manage the financial pressures arising from increased transport costs and fuel prices. In response the Director of Resources confirmed that school transport was funded from a corporate budget and stated that any in-year pressures arising from increased fuel costs could result in an overspend, which would be considered when reviewing and setting future base budgets if those costs were expected to continue. Councillor Aled Thomas highlighted that the Social Care directorate had experienced significant strain in recent years and queried if the Council was now satisfied that demand pressures in that area stabilised. In response, the Director of Resources stated that demand for adult social care was expected to continue rising, of which the contributing factors were outlined, but stated that demand assumptions were reviewed annually. It was stated that improved demand management, increased fostering capacity and a stronger focus on prevention agendas had contributed to recent improvements in financial performance. Following further information sought by Councillor Aled Thomas in relation to the Law and Governance budget, the Finance Manager advised that the overspend relating to member allowances reflected the nationally determined increase in members’ allowances, associated childcare support costs, and the creation of an additional Chair position, which resulted in extra senior salary payments beyond those originally budgeted. Councillor Aled Thomas expressed a range of concerns in relation to the Council’s recurring budget underspends and funds transferred into reserves. In response the Cabinet Member with responsibility for Corporate Finance and Efficiencies outlined the causes of the underspend. In response to a question regarding the allocation of funds to the Initiative Fund, it was stated that the allocation was considered an appropriate means of supporting future transformation and prevention initiatives. It was noted that continued underspends in future years could inform future budget and council tax decisions. In addition, the Director of Resources stated that he was not aware of any formal benchmarking of Local Authority underspends across Wales and further information was provided regarding the Initiative Fund Reserve. It was noted that while the reserve could technically be used to support budget balancing, the Section 151 Officer would not recommend this. Councillor Huw Murphy queried whether there was any prospect of additional Welsh Government funding being provided to address the Council’s National Insurance cost pressures arising from the UK Government’s 2024 Budget. In response, the Director for Resources and Cabinet Member with responsibility for Corporate Finance and Efficiencies stated that they were unaware of any proposals but confirmed that representations had been made to the Cabinet Secretary for Finance and that Pembrokeshire’s financial pressures would be raised in discussions regarding future local government funding settlements. Following points raised by Councillor Mike James, the Director for Resources advised that the mileage reimbursement rate had increased from 45p to 55p per mile and that the Council’s mileage policy had been revised to allow rates to be adjusted temporarily in response to significant fluctuations in fuel prices, providing greater flexibility to support staff during periods of increased fuel costs. Moved by Councillor David Simpson; Seconded by Mr John Evans The vote, undertaken by way of a show of hands, was carried. RESOLVED That the Budget Monitoring Outturn Report for 2025-26 be noted.
Decision as recorded
RESOLVED That the Annual Report for 2025-26 be noted, and submitted to Full Council for consideration, including the Committee’s assurance opinion on the adequacy and effectiveness of the Council’s governance, risk management and internal control arrangements.
The Committee considered a report by the Chief Audit, Risk and Information Officer in relation to the Governance and Audit Committee Annual Report for 2025-26. The Internal Audit and Counter Fraud Manager presented the report and stated that the report outlined the Committee’s oversight of governance, risk management, internal control, financial reporting and audit matters during the year. It was stated that based on the evidence considered, the Committee concluded that the Council’s governance, risk management and control arrangements were generally effective, however, opportunities for improvement were identified, including the timeliness of the Statement of Accounts, the implementation of internal audit recommendations and the continued development of risk management arrangements. It was concluded that the Committee had effectively discharged its responsibilities during the year. Both the Chair and Vice-Chair commended the report and there were no questions raised. Moved by Councillor David Simpson; Seconded by Mr John Evans The vote, undertaken by way of a show of hands, was carried. RESOLVED That the Annual Report for 2025-26 be noted, and submitted to Full Council for consideration, including the Committee’s assurance opinion on the adequacy and effectiveness of the Council’s governance, risk management and internal control arrangements.
Decision as recorded
RESOLVED (a) That the update and the level of assurance provided on the Council’s governance, risk management and control arrangements be noted. (b) That the Recommendation Tracking and Escalation Protocol and the Counter Fraud Publicity Protocol, be approved. [Councillor Huw Murphy left the meeting at this juncture.]
The Committee considered a report by the Chief Audit, Risk and Information Officer in relation to the Internal Audit and Counter Fraud Update for 2026-27. The Internal Audit and Counter Fraud Manager presented the report and stated that despite some delays due to staff sickness, delivery of the audit plan remained broadly on track and no audits had received a limited assurance opinion. Members were advised of improvements to audit recommendation tracking and counter-fraud governance arrangements, and of plans to recruit two fixed-term school auditors to strengthen financial governance in schools. Overall, it was stated that internal audit and counter-fraud services continued to provide effective assurance over the Council’s governance, risk management and control arrangements. The Vice-Chair requested that further information be provided on the two audits that had received moderate assurance opinions, specifically relating to trade waste and statutory compliance for corporate assets, to help Members understand the key issues identified. In response, the Internal Audit and Counter Fraud Manager agreed that this information could be incorporated into the next internal audit update report (AP). Moved by Councillor Mike James; Seconded by Mr John Evans The vote, undertaken by way of a roll call, was carried. The votes were recorded as follows: For the Motion: Councillors Mike James, Huw Murphy, David Simpson, Aled Thomas and Jacob Williams; and Dr Norma Barry, Mr John Evans and Mr Chris Halford [8] There were no votes against the motion or abstentions. RESOLVED (a) That the update and the level of assurance provided on the Council’s governance, risk management and control arrangements be noted. (b) That the Recommendation Tracking and Escalation Protocol and the Counter Fraud Publicity Protocol, be approved. [Councillor Huw Murphy left the meeting at this juncture.]
Decision as recorded
RESOLVED That the current position on Internal Audit and External Regulator recommendations and progress made to date, be noted.
The Committee considered a report by the Internal Audit and Counter Fraud Manager in relation to recommendation tracking for June 2026. The Internal Audit and Counter Fraud Manager presented the report and stated that the number of active recommendations had reduced from 110 to 86, demonstrating continued progress in addressing agreed actions. It was stated that while a number of implementation deadlines had been extended due to operational and resource factors, most recommendations were not yet due, with only a small number overdue. Attention was drawn to an outstanding very high priority recommendation relating to vehicle maintenance, although further updates had since been received and were under review. Both the Chair and Vice-Chair expressed concern regarding the overdue recommendations within the Place Directorate and noted the forthcoming departure of the Director of Place. It was suggested that additional support or delegation of responsibility to senior officers at a lower level might be necessary to ensure outstanding recommendations are implemented within agreed timescales. Moved by Councillor David Simpson; Seconded by Mr John Evans The vote, undertaken by way of a show of hands, was carried. RESOLVED That the current position on Internal Audit and External Regulator recommendations and progress made to date, be noted.
Decision as recorded
RESOLVED (a) That the draft Annual Governance Statement for 2025–26 and the assurance provided in relation to the effectiveness of the Council’s governance arrangements, be noted. (b) That approval of the Annual Governance Statement be recommended to Full Council. [Councillor Huw Murphy rejoined the meeting at this juncture.]
The Committee considered a report by the Chief Audit, Risk and Information Officer in relation to the Annual Governance Statement for 2025-26. The Director of Resources presented the report and stated that the Annual Governance Statement for 2025-26 had concluded that the Council’s governance, risk management and control arrangements remained generally effective. It was stated that a significant governance issue relating to the Vehicle Maintenance Unit was identified, with improvement actions underway. It was noted that the statement also highlighted key priorities for 2026-27, including financial sustainability, transformation, timely completion of the Statement of Accounts, contract management, county farms governance, school improvement and workforce capacity. There were no questions raised. Moved by Councillor David Simpson; Seconded by Councillor Jacob Williams The vote, undertaken by way of a show of hands, was carried. RESOLVED (a) That the draft Annual Governance Statement for 2025–26 and the assurance provided in relation to the effectiveness of the Council’s governance arrangements, be noted. (b) That approval of the Annual Governance Statement be recommended to Full Council. [Councillor Huw Murphy rejoined the meeting at this juncture.]
Decision as recorded
RESOLVED That the update provided on Business Risk Management and the contents of the Corporate Risk Register, be noted.
The Committee considered a report by the Chief Audit, Risk and Information Officer in relation to the Business Risk Management update for June 2026. The Internal Audit and Counter Fraud Manager presented the report and stated that risk management arrangements remained effective, with no significant changes to the Council’s overall risk profile since the previous review. It was stated that enhancements had been made to the reporting format to provide greater transparency regarding risk ownership and progress against mitigation actions. Members were advised that work was also ongoing to review and update directorate risk registers and that recommendations arising from Audit Wales review of risk management were being implemented. In summing up it was highlighted that the Council was considered to have appropriate risk management and oversight arrangements in place. The Vice-Chair referred to the positive outcomes achieved through the use of the Vanguard methodology but expressed concern that the target date had been extended to 31 March 2027, which could indicate that implementation was slowing. An update on the matter outlining the progress of the methodology was requested (AP). The Chair highlighted that the proposed action regarding analysing flood data, identifying high-risk areas and developing an incident management plan, appeared to be a substantial piece of work and raised concern that the work did not appear to have commenced and, given the target completion date of 31 December 2026, clarification was sought on when the work would begin and whether sufficient time remained to complete it. In response, Internal Audit and Counter Fraud Manager advised that she would seek an update from the relevant risk owner (AP). Reference was made by the Chair to the actions in relation to school deficits and it was queried if the target of 31 August 2026 was achievable due to the school auditors having only recently been appointed and would require training. In response, the Internal Audit and Counter Fraud Manager stated that the action relating to signed licensed deficit agreements formed part of the Council’s established process for supporting schools in financial difficulty so it was confirmed that the target was expected to be met. Moved by Councillor David Simpson; Seconded by Mr John Evans The vote, undertaken by way of a show of hands, was carried. RESOLVED That the update provided on Business Risk Management and the contents of the Corporate Risk Register, be noted.
Decision as recorded
RESOLVED (a) That the contents of the Audit Plan and the key risk areas identified, be noted. (b) That support be provided to officers in addressing the risks identified while receiving further updates from Audit Wales as the audit progresses to ensure that any recommendations are effectively implemented.
The Committee considered an Audit Wales report in relation to the Audit Plan for 2026. Kate Harvard from Audit Wales presented the report outlining the approach to auditing the Council’s financial statements, grant claims and performance arrangements. It was stated that key audit risks included management override, asset and pension valuations, remuneration and related party disclosures, and capital accounting. It was noted that the audit was scheduled for completion by December 2026, subject to outstanding 2024-25 work and the timely submission of quality accounts. Members were advised that the estimated audit fee was lower than the previous year due to reduced additional work, and no independence or scope concerns were reported. Euros Lake from Audit Wales outlined the performance audit programme, which examined whether the Council had effective arrangements in place to secure economy, efficiency and effectiveness, including consideration of the Well-being of Future Generations Act. It was stated that planned reviews for 2025-26 would focus on the Council’s performance management arrangements and economic development activities. Members were advised that Audit Wales would also monitor progress against previous recommendations and that the performance audit work was expected to be substantially completed by June 2027. Councillor David Simpson sought clarification on whether any audit fees associated with reviewing the Celtic Freeport would be shared on a pro-rata basis between the Freeport partners. In response, Euros Lake confirmed that the Annual Audit Plan and associated fees relate solely to Pembrokeshire County Council. It was added that whilst the Celtic Freeport would be considered as part of the wider economic development context, the audit would focus only on the Council’s arrangements and no separate review of wider Freeport funding arrangements was proposed. Moved by Councillor David Simpson; Seconded by Mr John Evans The vote, undertaken by way of a show of hands, was carried. RESOLVED (a) That the contents of the Audit Plan and the key risk areas identified, be noted. (b) That support be provided to officers in addressing the risks identified while receiving further updates from Audit Wales as the audit progresses to ensure that any recommendations are effectively implemented.
Decision as recorded
RESOLVED (a) That the changes to the Committee’s Terms of Reference be noted. (b) That the Forward Work Programme for 2026-27 be approved, with the following addition; · That an update in relation to the Transport Unit Compliance Review and Improvement Programme (progress update regarding the implementation of the recommendations from the Transport Assurance Panel) be added as an update for each meeting for the remainder of the financial year. (c) That it be agreed that the work programme remains a live document, subject to amendments to reflect emerging risks, regulatory changes and Committee requirements.
The Internal Audit and Counter Fraud Manager outlined the forward work programme and stated that amendments to the Constitution, approved by Council in May 2026, provided greater clarity regarding the Committee’s role in budget oversight and were outlined in Appendix A. It was noted that the programme would remain under review throughout the year and may be amended to reflect emerging risks, regulatory changes and matters identified by the Committee. The Chair requested that an update in relation to the Transport Unit Compliance Review and Improvement Programme (progress update regarding the implementation of the recommendations from the Transport Assurance Panel) be added as an update for each meeting for the remainder of the financial year. Moved by Councillor David Simpson; Seconded by Mr John Evans The vote, undertaken by way of a show of hands, was carried. RESOLVED (a) That the changes to the Committee’s Terms of Reference be noted. (b) That the Forward Work Programme for 2026-27 be approved, with the following addition; · That an update in relation to the Transport Unit Compliance Review and Improvement Programme (progress update regarding the implementation of the recommendations from the Transport Assurance Panel) be added as an update for each meeting for the remainder of the financial year. (c) That it be agreed that the work programme remains a live document, subject to amendments to reflect emerging risks, regulatory changes and Committee requirements.
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