Governance and Audit Committee

It was AGREED to confirm as a true record the Minutes of the Meeting of the Committee held on 18 March 2026. Matters Arising Minute 7 – Update on Middle East Fuel Costs The Chair noted that neither he nor the Vice-Chair had received the weekly updates on Middle East fuel costs, as had been agreed at the previous meeting. In response, the Executive CLO for Finance & Procurement explained that there had been a misunderstanding following the last meeting. He confirmed that weekly updates were being circulated to the Leader, Cabinet, Group Leaders and the Leadership Group. His intention at the previous meeting had been to provide assurance that a process was in place and that relevant key members were being informed. He further clarified that, due to the commercially sensitive nature of the information, it had been treated as an internal document and circulation had therefore been limited. The Chair welcomed this approach.

It was AGREED to note the updated content of the Governance and Audit Committee Meeting Action Log as presented, subject to the following: (i) in relation to reference 12-01-26/18, a report was due to be presented to the Thriving Communities Scrutiny Committee on 16 June 2026; therefore, an update report would be presented at the September 2026 meeting on this; and (ii) that an update report on reference 12-01-26/19 would also be presented at the September 2026 meeting.

Consideration was given to the report setting out Regulator and Inspectorate reports and updates, along with Council responses regarding progress made against proposals and recommendations. Currently, the Committee noted that the following local risk work had been issued/published since the last Governance and Audit Committee meeting held on 18 March 2026: • Ceredigion County Council – Annual Audit Summary 2025 • Ceredigion County Council – Counter Fraud Arrangements MRF – Counter Fraud Arrangements • Ceredigion County Council Audit Plan 2026 • Letter received from the Auditor General in relation to Local Government Accounts • Response from Ceredigion County Council to the Accounts letter Audit Wales gave an overview of the papers and added further specific Ceredigion context in relation to the Auditor General’s letter on Local Government Accounts. Audit Wales noted that whilst the Council’s 24/25 accounts had been 16 days after the submission date, this related to one particular material matter (that was subsequently corrected and had resulted in a successful unqualified accounts outcome) and that in general terms the Council’s accounts working papers were of a consistently good quality and in some cases were examples of good practice. Audit Wales also confirmed there was a very positive working relationship in place with the Finance team and they had received assurances on the Council’s progress with the 25/26 Statement of Accounts and so were expecting to receive the final accounts on time by 30/06/26, which would then be audited with the audit team lined up in readiness. Audit Wales also added that there were a number of Welsh Councils who missed the submission deadline last year that had significantly more challenges than Ceredigion but that those wider concerns don’t apply to Ceredigion. Committee Members then raised questions to gain greater assurance. In response, various Officers confirmed: i) that a report would be presented to Cabinet on the 25/26 Revenue Outturn position on the 07 July 2026, which would be confirming a favourable financial position for the last financial year. ii) that all other aspects of the 25/26 accounts preparation were progressing well. I.e. As well as the finalised Revenue position, other items completed included closure of the Capital programme, review of earmarked reserves and balances, asset valuations work and updating the asset register. Work was now underway on the more technical Statements and the notes to the Accounts. Notwithstanding that was the current position and unforeseen matters could still arise between now and 30/06/26. iii) that as part the new accounting requirements in relation to the Indexation of asset values between revaluations, it was noted that officers had engaged early with Audit Wales on the proposed approach and that work on this had now been completed. Audit Wales were reported to be content with the proposed approach. iv) that the response to Audit Wales’s letter on the Accounts was a ‘Delivery Plan’ as compared to several other Local Authorities who had been required to prepare a ‘Recovery Plan’. v) that in relation to Pensions matters this was always a material consideration in the Accounts. With the LGPS, the Dyfed Pension Fund was in a positive surplus position at the most recent triennial valuation, and this had been reflected in a reduced Employer Contribution rate down to 12.5% for the 26/27 Budget. There was also an early indication that Teachers Pension Employer Contribution rates may also be coming down from April 2027; and vi) that an advertisement to appoint a Counter-Fraud Officer was live; once appointed, the officer would establish a counter-fraud action plan, define service engagement and reporting arrangements, and commence both proactive deterrence and reactive investigations Committee Members raised their own concerns regarding the Auditor General’s letter, that whilst it had rightly drawn broad sector attention to the matter of Local Government Accounts, it had been interpreted negatively at a local level in the local press. Members emphasised the importance of providing appropriate context around the issues, reaffirming that a single material error had been corrected in the Council’s previous year’s accounts, that there were positive national case studies featuring the Council and that the Council had consistently achieved unqualified accounts for a long period of time. It was highlighted that there was possibly a lesson to be learned to ensure more context was given in national letters / reports to minimise the possibility of individual Local Authorities being affected by wording being taken out of context / perspective which was then at risk of being misleading. National Reports It was noted that there were no national reports to present. The Executive Corporate Lead Officer: Finance & Procurement highlighted that there had recently been a national thematic report by Estyn on the Management of School Budgets in which Ceredigion had featured as 2 good practice case studies. This report would be put on the Committee’s forward work programme. In conclusion, it was AGREED to note the reports subject to the following: - (i) noting that a date in the Annual Audit Summary was incorrect. Audit Wales highlighted an error on their part which stated that the accounts were presented to Audit Wales on 26 July 2025; however, this was confirmed as being incorrect, and the correct date was 16 July 2025; (ii) that future reports were not to be embedded as a link in a cover report but to be fully presented as an appendix on the agenda.

The report relating to item 8 on the agenda, Appendix 2, is not for publication as it contains exempt information as defined in paragraph 18 of Part 4 of Schedule 12A to the Local Government Act 1972 as amended by the Local Government (Access to information) (Variation) (Wales) Order 2007. If, following the application of the Public Interest Test, the Council resolves to consider this item in private, the public and press will be excluded from the meeting during such consideration, in accordance with Section 100B(2) of the Act. Members were requested, when dealing with the item, to consider whether to exclude the public and press from the Meeting. DECISION: That the public interest in maintaining the exemption outweighed the public interest in disclosing the information. To exclude the public and press from the meeting and to consider the report at the end of the meeting.

The Committee received a report setting out Council responses and progress made against proposals and recommendations. Non-Confidential Management Response Forms The Committee noted the following reports: • Arrangements for Commissioning Services – Ceredigion County Council • Temporary Accommodation: Long Term Crisis? • Review of Corporate Risk Management Arrangements – Ceredigion County Council Audit of Cyber Security Arrangements It was agreed that the MRFs be deferred for consideration at the next meeting, with relevant officers present to answer questions.

It was agreed that item 10 on the agenda be considered prior to Item 9

Consideration was given to the report relating to the Audit Wales enquiries on laws and regulations as part of the Statement of Accounts process. It was reported that services had addressed a range of compliance-related enquiries, including policies, potential non-compliance, litigation and regulatory activity, with draft responses reviewed by the Chair and Vice-Chair prior to submission. It was noted that assurance was primarily obtained on an exception basis and that improvement work was ongoing following a 2024 review. It also recognised the role of the Constitution in supporting legal compliance and confirmed that its role is to seek assurance on governance, risk management and internal controls to respond to the Audit Wales enquiries. It was AGREED that the Committee had gained assurance to respond to the Audit Wales enquiries of those charged with governance in relation to laws and regulations.

The Committee received the annual Audit Wales Enquiries Letter which included sections relating to ‘Enquiries of Management’ and ‘Enquiries of those charged with Governance’. The ‘Enquiries of Management’ were in draft pending final approval by the Council’s Leadership Group. The Committee reviewed the proposed responses relating to ‘Enquiries of those charged with Governance’ covering fraud, laws and regulations and related party transactions, noting that the section on laws and regulations had been considered separately under Item 10. The Committee noted that the completed letter would be submitted to Audit Wales in advance of the Statement of Accounts. It was AGREED to approve the respective responses for 25/26.

The Committee received and considered a report on the outcome of the Food Standards Agency (FSA) audit of the Council’s food standards service undertaken in January 2026. It was noted that the FSA acted as the Competent Authority in Wales for food safety and standards and monitored Local Authority enforcement services. The Committee were informed that the audit formed part of a Wales-wide programme and focused on allergen control arrangements, delivery of official food standards controls, and progress against previous audit actions. The audit was carried out against relevant legislative and regulatory frameworks. The Committee noted that the audit reviewed governance arrangements, service planning, officer competence and training, inspection and enforcement activities, sampling, internal monitoring, and progress against previous recommendations, including file reviews and a verification visit. Overall, the audit provided assurance that appropriate arrangements were in place for allergen control, with several areas of good practice identified. These included effective use of enforcement powers, generally good allergen assessments, appropriate investigation of complaints and sampling activity, and competent officers with a clear understanding of allergen risks. The Committee noted that areas for improvement were identified in relation to service planning and performance review, officer training and CPD (including contractors), timeliness and completeness of inspections and revisits, consistency of inspection records, and further development of internal monitoring and quality assurance. It was reported that the FSA had made a number of recommendations and that a detailed Audit Action Plan had been agreed, endorsed, and published. Progress had already been made, including updates to service planning for 2026/27, completion of minimum CPD requirements for internal officers, suspension of contractor activity pending compliance, standardisation of inspection documentation, and strengthened enforcement follow-up and monitoring processes. Members were informed that a number of recommendations had been completed, with ongoing monitoring in place. The audit provided assurance that arrangements were broadly effective, that areas for improvement had been identified, and that good progress was being made in implementing a robust action plan. It was RESOLVED to note: (i) the audit findings, including examples of good practice; (ii) the recommendations and agreed management action plan; and (iii) the progress made in implementing the action plan to address identified issues. Best wishes were extended to Mr Alun Williams, Corporate Lead Officer – Policy and Performance, on his retirement, and the Committee expressed their thanks for his work and support over the years.

The Committee considered the report outlining progress made by the Ceredigion Youth Justice and Prevention Service (YJPS) in response to the recommendations arising from HM Inspectorate of Probation’s inspection in November 2024. The Committee noted that the inspection had rated the service as ‘Inadequate’, identifying weaknesses in governance, partnership working, staffing capacity and the use of performance information. It was reported that substantial progress had since been made through the Post-Inspection Action Plan, with improvements focused on strengthening governance, restoring accountability, improving data quality and embedding a child first approach. It was reported that the Management Board had been refreshed and was providing strengthened oversight through structured reporting, including RAG-rated updates and quarterly performance reports. A revised Youth Justice Plan for 2025–2026 had been approved, setting clear strategic priorities. It was further reported that partnership arrangements had been strengthened, with work ongoing to formalise agreements, improve accountability and address resource gaps. Improvements to data quality and performance monitoring had been implemented, with further work planned to address disproportionality and support evidence-based decision-making. The Committee were informed that additional staffing capacity had been secured and recruitment undertaken, with further work planned to ensure long-term sustainability. Increased emphasis had been placed on engagement with children, families, volunteers and partners to support a more participatory, child-centred approach. The revised service structure, aligning the Youth Justice Service within Porth Cymorth Cynnar alongside Youth Services, was also noted. The Committee noted that the Leadership Team had prioritised improvements in quality assurance and management oversight, including regular audits, strengthened supervision and improved risk management processes. Governance arrangements, joint working protocols and practice guidance had been strengthened, with further work planned to embed these across partner organisations. Improvements to resourcing for casework, victim services and reparation activity were also noted. Workforce development had progressed through training and reflective supervision, with further training planned to support trauma-informed practice and continuous professional development. The Committee noted that the Diversionary Outcome Panel was fully operational, supporting consistent and child-centred decision-making for out-of-court disposals, with ongoing evaluation planned. Overall, the Committee noted that significant progress had been made in addressing the HMIP recommendations, with strengthened arrangements across governance, leadership, performance management and operational practice. It was further noted that the next phase would focus on embedding these improvements to ensure sustainability and improved outcomes. The Committee acknowledged that risks remained in relation to workforce capacity, partner provision and maintaining data quality, and noted that these were being actively managed through strengthened governance and oversight. Following questions from the floor, it was AGREED to (i) note the report and the progress made by the Youth Justice and Prevention Service in response to HMIP recommendations; and (ii) congratulate the Officer and her team on the positive report

Consideration was given to the Report upon on the Governance and Audit Committee’s annual self-assessment for 2025–2026.It was noted that, in 2025, the Committee had agreed to adopt a new self-assessment template based on the Audit Wales publication “Audit Committees: Effective Practices and a Positive Impact”. The Committee noted that a self-assessment workshop had been held on 23 April 2026 and was attended by Alan Davies, Caroline Whitby and Councillor Keith Henson. During the workshop, the Audit Wales self-assessment template was considered. It was agreed that the scoring mechanism would not be used, with a greater emphasis placed on identifying and delivering actions for the year ahead. The Committee noted that actions arising from the workshop had been identified, recorded and would be monitored and progressed throughout the year, as set out in Appendix 1. It was further noted that no additional outcomes had arisen from the workshop. It was AGREED that the Self-Assessment Action Report be noted.

Consideration was given to the draft Governance & Audit Chairs Annual Report for Annual Report for 2025/26 It was further noted that the Annual Report would be presented to Council on 11 June 2026 by the Chair of the Governance and Audit Committee and would subsequently be published on the Council’s website. It was AGREED to approve the draft Governance and Audit Committee Annual Report 2025/26, prior to presentation to Council.

The Committee received a report providing an update on the delivery of the Internal Audit Plan for 2025/26, which had previously been considered and approved at the Committee’s meeting in March 2025. The Committee noted the progress made to date in delivering the audit plan, including a summary of work undertaken, assurances obtained the current resource position within Internal Audit, Internal Audits performance and its improvement plan. It was AGREED to note the that work undertaken and the current position of Internal Audit.

The Committee received a report outlining the requirements of the Institute of Internal Auditors’ Global Internal Audit Standards, which stated that Internal Audit must confirm that management had implemented audit recommendations or agreed action plans through an established methodology. The Committee noted that this methodology included: • Enquiring about progress on implementation; • Undertaking follow-up assessments using a risk-based approach; and • Updating the status of management actions within a tracking system. The Committee considered the update report, which provided an overview of the progress made by management in addressing actions arising from Internal Audit reports. It was AGREED to note the work undertaken and the current position in relation to the implementation of management actions issued by Internal Audit.

Consideration was given to the Internal Audit Annual Report for 2025/26.It was noted that the Internal Audit Plan for 2025/26 had been considered by the Committee at its meeting in March 2025, which had outlined the work to be undertaken by Internal Audit to form its annual assurance opinion. The Committee were informed that this assurance conclusion formed part of the Council’s overall framework of assurance. They were further informed that Internal Audit provided independent advice to services to support improvements in internal controls, risk management and governance arrangements. The Committee considered the Annual Report, which provided a summary of internal audit activity undertaken during the year to 31 March 2026. The report also incorporated the Corporate Manager – Internal Audit’s conclusion on the adequacy and effectiveness of the Council’s governance, risk management and internal control arrangements. Members were also informed of Internal Audit’s resource position during the year, together with details of the Section’s quality, improvement and progress plans. It was AGREED to approve the Internal Annual Report for 2025/26.

The Committee received a report outlining the Council’s arrangements for countering fraud, bribery, corruption and other malpractice, including money laundering. It was noted that fraudulent behaviour posed a significant risk to the Council, and that there was a strong commitment to maintaining an effective strategy designed to prevent, detect and respond to such activity. The Committee noted that the Council had in place a Counter Fraud Strategy and Protocol, supported by a range of policies and procedures, including the Codes of Conduct and the Whistleblowing Policy, which demonstrated the Council’s commitment to minimising the risk and impact of fraud and related activity. The report summarised the work undertaken and coordinated by Internal Audit during 2025/26 to increase fraud awareness and minimise the risk of fraud, bribery and corruption occurring within or against Ceredigion County Council. It was AGREED that the Counter Fraud Report for 2025/26 be approved.

Consideration was given to the report providing an update on the Council’s Corporate Risk Register, which was presented regularly to ensure ongoing oversight and assurance that risks identified by senior managers were being appropriately managed. The Committee noted that this supported its role in providing independent assurance to the Council on the effectiveness of corporate risk management arrangements. It was reported that, following the Audit Wales Review of Corporate Risk Management Arrangements, a number of amendments had been introduced to the Corporate Risk Register in the current quarter to align with recommendations. These included: • Refinement of risk titles in line with the Government Orange Book “cause–effect–consequence” approach; • Identification of the potential impact of each risk on the delivery of the Council’s Corporate Well-being Objectives; • Clarification of whether each entry represented a risk, an issue, or both. Following questions from the floor and clarification on the Climate and Poverty risk scores, it was AGREED to note the Leadership Group Risk Register Q4 as presented

Consideration was given to the report upon Recruitment of Governance and Audit lay members. It was RESOLVED that the Committee recommended to Council: (i) that the Governance and Audit Committee Role Description and Person Specification (Appendix 1) be approved; and (ii) that the proposed composition of the shortlisting panel be approved.

It was AGREED to note the Forward Work Plan as presented subject to the following: (i) two extra reports one from Estyn and the Revised Charter in relation to the Structure of the Internal Audit Service be presented to the 17 September meeting, and (ii) to note that two meetings would be held in September, one on the 17 September and the 24 September 2026 to consider the Statement of Accounts.

None.

The report relating to item 8 on the agenda, Appendix 2, is not for publication as it contains exempt information as defined in paragraph 18 of Part 4 of Schedule 12A to the Local Government Act 1972 as amended by the Local Government (Access to information) (Variation) (Wales) Order 2007. If, following the application of the Public Interest Test, the Council resolves to consider this item in private, the public and press will be excluded from the meeting during such consideration, in accordance with Section 100B(2) of the Act. Members were requested, when dealing with the item, to consider whether to exclude the public and press from the Meeting. DECISION: To exclude the public and press from the meeting.

The Committee agreed to note the report as presented. It was emphasised that Corporate Lead Officers for any reports presented should attend meetings to respond to any queries or questions. The other Management responses would be considered again at the next meeting, and they had not been formally agreed in the open forum.