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There is no summary of this meeting yet. One is written once the council publishes the minutes. The agenda and papers are below.
In accordance with the Code of Conduct adopted by the City and County of Swansea, the following interests were declared: - Councillor: 1. M White & P Bentu, declared a personal interest in agenda item 9.
Resolved that the Minutes of the Governance & Audit Committee held on 8 July 2026 were approved and signed as a correct record.
Nick Davies, Principal Auditor, presented the for information report, which summarised the audits finalised and other work undertaken by the Internal Audit Section during the period 1 April 2026 to 30 June 2026. It was noted that a total of 15 audits had been finalised during the quarter, of which nine received a high assurance opinion, four received a substantial assurance opinion, and two received a moderate assurance opinion. A total of 99 recommendations had been made, all of which management had accepted and agreed to implement. Of the 99 recommendations, two were classified as high risk, 13 as medium risk, 62 as low risk and 22 as good practice recommendations. The report highlighted that sickness absence during the quarter had been minimal. However, it was noted that the section had lost a Senior Auditor through retirement. The Senior Auditor post had been ring-fenced internally within the team, and an experienced Auditor had been successfully appointed. The vacant Auditor post had been advertised and a successful candidate was due to commence in post at the end of the month. Members were advised that, as at 30 June 2026, approximately 39% of the Audit Plan had either been completed or was in progress. The officer drew Members' attention to the following appendices: • Appendix 1: List of the 15 audits finalised. • Appendix 2: Summary of the scope of the audits finalised, together with key findings and risks identified. • Appendix 3: Audit Plan position as at 30 June 2026. • Appendix 4: Results of the standard follow-up review undertaken for the 24 audits checked. • Appendix 5: Recommendations that had not been implemented and the reasons for this. The Committee raised the following points: • Whether it was reasonable to assume that the team remained on track to achieve completion of the Audit Plan by March 2027. The officer confirmed that 100% completion was rarely achievable due to factors such as deferrals; however, a completion rate of over 70% to 75% would represent a positive outcome for the team. • A request that Appendix 3 be amended to provide a more detailed breakdown of the audit statuses currently recorded as "allocated", "planned" and "in progress". • An update on the IT follow-up actions, which remained ongoing. The Chair made the following recommendation: • In relation to the IT follow-up actions, the officer would write to Sarah Lackenby to seek an update on the status of recommendations that services were unable to implement without support from the IT service. The Chair thanked the officer for the report.
Simon Arthurs, Interim Head of Finance and Deputy Section 151 Officer, presented the report, which sought to provide assurance to the Governance and Audit Committee that risk management arrangements within the Finance Directorate were effective, embedded, and operating in line with the Council's Corporate Risk Management Policy and Framework, including the use of the corporate InPhase risk management system and routine review and escalation arrangements. It was noted that the report identified the activities undertaken by the department. The officer highlighted that the department acted as the custodian of several support service risks that affected the whole Council and, under Section 151 of the Local Government Finance Act, the Director of Finance had a statutory responsibility to ensure that the financial standing of the Authority was appropriately considered as a key risk. Members were advised that the department had three strategic risks, sixteen operational risks and one project risk. The officer drew Members' attention to the sole project risk and explained that this risk had transferred to the department from Corporate Services when responsibility for Accounts Receivable had moved to Finance. It was noted that the department followed the Council's risk management policy and framework. However, the officer advised that work had been undertaken to develop the knowledge and understanding of risk management amongst officers reporting to Heads of Service. The Chair made the following comments: • The Chair thanked the officer for the helpful and succinct explanation of the risks and noted the significant work that had been undertaken in relation to the Accounts Receivable risk to recover from the position previously faced by the service. • In response to a query regarding the retention of additional resources, the officer advised that the resource remained in place and that, through the service planning process, work was being undertaken to identify more granular key performance indicators (KPIs) and metrics to enable the performance of debt recovery activities to be monitored across the different categories of departmental debt. Members discussed the following: • The continuous improvement demonstrated within the service. • The next steps in relation to the strategic risks. The Chair thanked the officer for the comprehensive report and emphasised the importance of the Committee having oversight of operational risks as well as strategic risks. The Chair noted that this provided assurance regarding the management of risk and the effectiveness of controls across the services provided.
Gareth Jones, Audit Wales, provided an overview of the report where the Committee heard that, in 2020, the Auditor General produced a report, Tackling Fraud in Wales, which made 15 recommendations to public services in Wales. Following this, Audit Wales undertook a local review of the Council's arrangements for preventing and detecting fraud against those recommendations. The Committee was advised that the review concluded that the Council had established a clear commitment to tackling fraud and benefited from strong corporate support for counter-fraud activity. However, several important gaps in the current arrangements had been identified, which reduced assurance that risks were being managed as effectively as they could be. It was noted that the Council maintained a zero-tolerance approach to fraud, with clearly defined responsibilities and dedicated specialist resources in place. The Council also worked effectively with external partners and utilised data-matching tools such as the National Fraud Initiative. Members heard that there were three broad areas in which the Council could make further improvements: fraud risk management, policies, training and prevention, and the balance between investigation and prevention. Nine recommendations had been made, to which the Council had provided responses. Audit Wales had reviewed those responses and advised that, for four of the recommendations, further clarification or elaboration could be provided to give greater assurance as to how the recommendations would be implemented. Audit Wales was satisfied with the Council's response to the remaining five recommendations. The Chair thanked Audit Wales for the report and for the summary commentary provided on the Council's response. The Chair noted that they had been made aware of the enhancements requested by Audit Wales. Jonathan Rogers, Corporate Fraud Team Manager, introduced the information report summarising the Council's response to the recommendations made in Audit Wales' most recent report on the Council's counter-fraud arrangements. The officer commented that the agenda item title was somewhat misleading, as it referred to the Corporate Fraud Team's response to the Audit Wales review of counter-fraud arrangements. The officer clarified that the report related to the Council's response to the review, which concerned fraud arrangements across the Council rather than the Corporate Fraud Team specifically. The Committee was advised that the report had been compiled in consultation with Heads of Service and the Corporate Management Team, and that the Corporate Fraud Team had played only a limited role in responding to specific actions arising from the review. The officer therefore stated that detailed comments on the report would be more appropriately provided by the Chief Auditor. The Interim Head of Finance advised that it had been helpful for Audit Wales to notify officers of the additional points they intended to raise in advance. However, there had not yet been sufficient opportunity to bring together the relevant officers to consider those matters in detail. He therefore supported a further review of the recommendations to determine what additional actions could be taken. The Interim Head of Finance further advised that the Council was already undertaking a review of its policies as part of wider constitutional changes. It was noted that policies should be reviewed and updated where necessary before considering any associated training and development requirements, ensuring that training reflected current policy expectations and requirements. Chair's recommendations • That the Chief Auditor review the Council's response to the Audit Wales recommendations to ensure that the matters raised by Audit Wales had been fully considered. • That the Committee receive an updated action plan incorporating the agreed recommendations and subsequent actions, together with confirmation that the agreed actions had been implemented. The Chair placed on record the Committee's appreciation of the work undertaken by the Counter Fraud Team. Whilst acknowledging that certain improvements were required from a corporate perspective, the Chair emphasised that this did not detract from the high standard of work carried out by the team, which was widely regarded across Wales.
The Chair provided a brief introduction to the report outlining the way in which Welsh Government funding is allocated to local authorities. The Chair welcomed the report and noted that it clearly set out the significant challenges faced by local authorities in relation to both funding arrangements and the timeliness of funding decisions made by the Welsh Government. Charles Rigby, Audit Wales, introduced the national study report, explaining that it examined Welsh Government funding arrangements across all 22 local authorities in Wales, rather than focusing on an individual council. Members heard that the review formed part of Audit Wales' wider programme of work on financial sustainability and assessed whether current funding arrangements supported value for money. The Committee was advised that the review concluded that the way in which Welsh Government allocates funding to local authorities does not always support the achievement of value for money, particularly in relation to the timing and duration of funding settlements and grant allocations. It was noted that late notification of funding could reduce councils' ability to plan effectively and maximise the benefits derived from that funding. Members heard that the report also highlighted concerns regarding the complexity of some grant arrangements and noted that the methodology underpinning the local government funding formula had not been comprehensively reviewed since 2002, although the data used within the formula is updated annually. Audit Wales had recommended that Welsh Government review the methodology to ensure it remains fit for purpose and reflects current policy objectives. The Committee was further advised that improvements could be made to the way Welsh Government communicates funding arrangements, estimates the costs of new responsibilities placed upon local authorities and manages risks relating to councils experiencing significant financial difficulties. Audit Wales had made a number of recommendations to Welsh Government aimed at improving long-term financial planning, increasing transparency and providing greater certainty around funding arrangements. It was noted that no recommendations had been made to local authorities and, therefore, no management response from the Council was required. The Chair made the following comments: • The Chair welcomed the report and commented that it clearly reflected the funding challenges faced by local authorities. The Chair noted that the recommendations appeared sensible and, if adopted by Welsh Government, could help reduce some of the difficulties councils had experienced in relation to funding arrangements and financial planning. • The Chair sought clarification as to whether Welsh Government had accepted the recommendations and whether any timescales or deadlines had been provided for their implementation. o In response, the officer advised that Welsh Government was currently preparing its formal response to the report's recommendations, which would be presented to the Senedd's Public Accounts and Public Administration Committee on 28 September 2026. As the response had not yet been received, it was not possible to confirm whether the recommendations had been accepted. Members: • Thanked the officer for the "refreshing, clear, concise and robust" report. • Raised queries regarding: o Whether Welsh Government was likely to accept the recommendations. o The impact of the late publication of statements of accounts. o The availability of data showing the breakdown of grant funding sources. The Chair thanked Audit Wales for the report, commenting that it was a valuable and long-awaited piece of work. The Chair advised that the Committee looked forward to reviewing Welsh Government's response when it was published and extended the Committee's congratulations to Audit Wales for the quality of the report.
Gareth Jones, Audit Wales, presented the Audit Wales Work Programme and Timetable, which set out the progress of the external performance and financial audit programme as at the end of June 2026. Members were advised that Audit Wales had received the Council's draft Statement of Accounts on 11 August 2026, ahead of the Council's planned submission date. The Committee heard that Audit Wales had received the Council's response to the Recruitment and Retention report and recommendations, which were currently being reviewed prior to being presented to a future meeting of the Committee. Members were also advised that the Homelessness review had been finalised and that the Council's response to the recommendations was awaited. Once received and reviewed, the report and response would be presented to the Committee. In relation to the 2026/27 programme, Audit Wales was commencing reviews relating to community benefits and performance management arrangements. Members also noted ongoing national studies concerning implementation of the Health and Social Care (Wales) Act 2025, fly-tipping, and ageing population and preventative services. The Committee's attention was drawn to recent reports issued by Estyn and Care Inspectorate Wales, together with the forthcoming National Fraud Initiative report, which would be presented to the Committee for oversight. Following Member queries, Audit Wales agreed to arrange for the relevant audit brief(s) relating to forthcoming reviews to be shared with Committee Members. The Chair thanked Audit Wales for all of the reports presented to the Committee and for their attendance at the meeting. The Chair emphasised the importance of the input provided by Audit Wales and expressed appreciation for the positive working relationship that continued to exist between Audit Wales and the Council. On behalf of the Committee, the Chair thanked Gareth Jones, Charles Rigby and their colleagues for their work, noting the Committee's appreciation of the quality of the reports received and the constructive support provided by Audit Wales.
Nick Davies, Principal Auditor, presented the information report, which provided the Governance and Audit Committee with the Annual Report of School Audits for the 2025/26 municipal year. It was noted that the report detailed the number of school audits and thematic reviews completed during the year, together with other developments and work undertaken. The Internal Audit Team had continued to apply the thematic review approach for primary and special schools, focusing on procurement and school unofficial funds. Both planned thematic reviews had been completed successfully, alongside individual audits of four secondary schools. Members were advised that confirmation had been received that the audit reports for the four comprehensive schools audited in the previous year had been presented to their respective governing bodies. The Committee was informed that 25 primary schools had been included in the thematic review of procurement and 23 primary schools had been included in the thematic review of school unofficial funds. Both reviews had received a substantial assurance rating. The four secondary schools audited had also each received a substantial assurance rating. Members noted that the procurement and unofficial funds reviews detailed the areas tested, the evidence requested from schools, and the outcomes of the audit work undertaken. It was reported that four secondary schools had been subject to full audits, resulting in 56 recommendations, averaging 14 recommendations per school. Analysis of the recommendations showed that procurement expenditure accounted for the largest proportion of recommendations made. The Committee noted that work relating to DBS and IR35 checks had been agreed with the Director of Education. It was further reported that quality control questionnaires had been issued following each audit. All questionnaires had been returned, resulting in a 100% response rate, and all responses had contained at least satisfactory feedback. The Committee noted that Appendix 1 contained details of all schools included in the thematic reviews, Appendix 2 listed the four secondary schools subject to individual audits and site visits, Appendix 3 detailed the areas covered during full audits, and Appendix 4 contained the quality control questionnaire issued following completion of audits. The Chair thanked the officer for the comprehensive report and welcomed the continuation of the thematic review approach, noting that it added value to the audit process. The Chair expressed disappointment regarding the continuing compliance issues relating to procurement and expenditure, despite the additional training and support that had been provided to schools. During discussion, Members: • Referred to the in-depth Procurement Scrutiny Panel, which had operated for approximately 12 months and had reviewed understanding and application of the Council's procurement and contract procedure rules. • Received clarification regarding procurement guidance and the training available to support compliance. The Chair: • Expressed concern regarding the recurring issues identified in relation to school unofficial funds and requested that consideration be given to undertaking a follow-up review. The Chair further requested that the relevant service investigate the underlying causes of the issues identified. • Suggested that further development of relevant IT systems be considered to help reduce recurring procurement-related issues. • Requested an update report on both matters within six months. The Chair thanked the officer for the report.
Simon Arthurs, Interim Head of Finance and Deputy Section 151 Officer, presented the Statutory Statement of Accounts Recovery Plan and requested that the Governance and Audit Committee note the report and endorse the recovery plan and its appendices. It was noted that the Auditor General had written to all Chief Executives across Wales reminding local authorities of their transparency and reporting responsibilities in relation to the timely publication of financial statements. The Committee noted that, for the 2024/25 financial year, the draft accounts had not been signed until December 2025 and were not fully audited and approved until the end of the following financial year. In contrast, the draft accounts for the current year had been signed on 11 August 2026, significantly ahead of the recovery plan target date of 30 September 2026. It was reported that this represented a substantial improvement in performance and reflected the collective efforts of a range of Council services, including Finance, Payroll and Property Services, together with other officers who contributed to the accounts preparation process. Members were informed that the recovery plan set out a two-stage approach. The first stage focused on achieving earlier production of the draft accounts, whilst the second stage aimed to return the Council to full compliance with statutory deadlines by the following year. The report outlined the key themes of the recovery plan and the approach taken to develop it, whilst the appendix detailed the actions already implemented and those planned to support continued improvement. The Chair welcomed the significant progress that had been made and commended officers for producing the draft accounts ahead of the recovery plan target. The Chair noted that this placed the Council in a positive position and expressed hope that the improvements achieved would ensure a return to statutory deadlines in future years. Audit Wales advised that the current plan remained to substantially complete the audit by the end of December 2026, with certification of the accounts to follow, subject to the availability of Governance and Audit Committee and Council meeting dates. Members discussed: • Additional resources: In response to a query regarding additional resources, it was advised that capacity had been strengthened within the Capital Team, enabling specialist officers to focus on year-end and audit work, whilst knowledge sharing across the team was improving resilience and reducing reliance on additional staffing. • Artificial Intelligence (AI): In response to a query regarding the development of technology and the use of AI, it was advised that work was underway to identify opportunities to automate elements of the accounts preparation process, including the earlier extraction of financial information, reconciliations and disclosure note data. Members were informed that the potential use of tools such as Microsoft Copilot was being explored to improve efficiency, reduce manual input and help ensure future compliance with reporting deadlines. The Chair congratulated officers and Audit Wales on the significant progress made in returning the accounts process to a more timely position and commended all those involved in achieving the prompt production of the draft accounts. Resolved: That the Statutory Statement of Accounts Recovery Plan be noted and the recovery plan endorsed.
Jonathan Rogers, Corporate Fraud Team Manager, introduced the information report, which provided a summary of the work completed by the Fraud Function of Internal Audit during 2025/26. The officer noted that the report is normally accompanied by the Annual Fraud Plan, which had been omitted from the agenda and would be circulated following the meeting. Members heard that benefit investigation overpayments had increased to £456,000, four successful prosecutions had been secured, and £2,594 had been recovered through civil penalties, court costs and proceeds of crime. The Committee was advised that nine housing properties had been recovered, Council Tax activity had generated savings of £66,000, and fraud awareness training had been delivered to Members. Officers had continued to work with internal and external partners, including participation in a large multi-agency operation. All objectives within the Counter Fraud Functional Plan had been achieved. The National Fraud Initiative review remained ongoing, with over 5,000 data matches examined and 22 cases outstanding. The exercise was due to conclude at the end of September, with the findings to be reported to the Committee at a later date. The Committee also heard that Council Tax data-matching activities had generated savings of approximately £198,000, while 13 employee investigations had been undertaken, resulting in one resignation and one formal warning. The Council's fraud awareness training continued to be available to all staff and Members. Members raised queries regarding: • Online training and whether it could be made mandatory. It was confirmed that the training was available online for all staff and Members to access; however, participation could not currently be enforced. Corporate Services would consider whether it should be included within the Council's mandatory training programme. • Clarification of references to Blue Badges and resident parking permits. • National Fraud Initiative data matches and the consistency of the methodologies used. The Chair thanked the officer for the report and requested that the Annual Fraud Plan be circulated following the meeting.
Huw Evans, Head of Democratic Services and Deputy Monitoring Officer, presented the report, which provided the responses received from the Governance and Audit Committee Self-Assessment of Good Practice 2025-2026 for the financial year. He advised that the overall self-assessment score was 89.16%. Whilst acknowledging this was an excellent result, it was noted that a detailed review of the responses indicated some inconsistencies, particularly where established governance arrangements were already in place. He proposed that the report be withdrawn and that a facilitated self-assessment workshop be undertaken following the Committee's training session on 10 September 2026 providing an opportunity to clarify any misunderstandings and ensure a more accurate assessment of existing arrangements. A revised self-assessment would then be presented to the next meeting of the Governance and Audit Committee, Resolved that the Governance and Audit Committee Self-Assessment of Good Practice 2025-2026 report be withdrawn.
The Corporate Transformation Plan Annual Report 2025-26 was reported “for information”.
The Audit Wales Recommendations Tracker was reported “for information”.
The Governance & Audit Committee Action Tracker was reported ‘for information’.
The Governance & Audit Committee Work Plan was reported ‘for information’.
The Committee was requested to exclude the public from the meeting during consideration of the item(s) of business identified in the recommendation(s) to the report on the grounds that it / they involved the likely disclosure of exempt information as set out in the exclusion paragraph of Schedule 12A of the Local Government Act 1972, as amended by the Local Government (Access to Information) (Variation) (Wales) Order 2007 relevant to the item(s) of business set out in the report. The Committee considered the Public Interest Test in deciding whether to exclude the public from the meeting for the items of business where the Public Interest Test was relevant as set out in the report. Resolved that the public be excluded for the following items of business.
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.
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