Pwyllgor Llywodraethu ac Archwilio

The Audit and Governance Committee Forward Work Programme was presented. It was advised that the revised Counter Fraud Strategy would be presented to the Committee in September 2026. It was confirmed that consideration of the Governance and Audit Committee Terms of Reference had been deferred to September 2026 due to the recent Senedd Elections. RESOLVED: That the Governance and Audit Committee Forward Work Programme be approved.

The Audit Manager presented the Internal Audit Annual Report for 2025/2026. The following was discussed: • In respect of the Houses in Multiple Occupation (HMO) report, it was confirmed that the Service had been working hard to address the outstanding actions. Systems had been put in place to monitor notices and service requests, and progress had been made in addressing the backlog of inspections of newly licensed properties, outstanding notices, and the issuing of new notices. - The Service was confident that, by the follow-up internal audit in October 2026, all matters would be in order, and the assurance level would be increased. • A Legal Services review had been included in the Annual Plan for 2026/2027 and was scheduled to take place between January and March 2027, following the implementation of their new system. • Some special investigations remained ongoing, including matters involving the Police, which were subject to legal privilege. Action plans had been developed and approval sought for the Senior Leadership Team to be given access to review governance arrangements and identify any lessons learned. - The Head of Audit and Procurement had undertaken two special investigations during the year, and as a result, they had not impacted on the wider team. Other services also undertook special investigations. • It was reported that sickness absence and capacity issues had impacted the Service. One individual who had been absent due to sickness had resigned, and interviews for an Auditor post were being undertaken. In addition, the Senior Auditor post was also being progressed through the recruitment process. • Monthly meetings were held with External Auditors to discuss their programme of work. Informal meetings between the Committee and external auditors may be held in private. RESOLVED: That the Internal Audit Annual Report 2025/2026 be noted.

The Chair introduced his Annual Report of the Governance and Audit Committee for 2025/2026, and the Head of Audit and Procurement Services highlighted key points from within the report. The following was discussed: • The report was considered a fair reflection of the work of the Governance and Audit Committee over the last 12 months. · The names of attendees who had been omitted from the Self-Assessment Workshop would be added. RESOLVED: That the Governance and Audit Committee Chair’s Annual Report 2025/2026 be endorsed.

The Strategy, Performance and Engagement Manager presented the Performance Self-Assessment from October 2024 to March 2026. The following was discussed: • Benchmarking considered service priorities and the Corporate Plan, and national data would be reviewed where available. Where national data was not available or was less appropriate, local data would be used. • Timelines of data had presented the greatest challenge; however, the mechanisms in place had been working well. • It was acknowledged that improvements were required in respect of AI systems, and that work was being undertaken to identify where automation could provide further support. Performance management systems could also be improved and modernised. • An update on project health checks would be provided by the Corporate Modernisation Manager in due course. • It had been difficult to capture accurate figures in relation to safeguarding training completion rates however, a new training platform was being considered, which was expected to improve data capture. • The breakdown of staff sickness data distinguished between long-term and short-term absences, thereby providing a complete picture of absence levels. • A quick guide had been included, which provided an explanation of outcomes, measures and related matters. • The in-year Council Tax collection rate was 95.6%. Outstanding amounts would continue to be pursued. - The budget had been set on the assumption of a 98% collection rate, which was usually achieved. - Nationally, the in-year collection rates were reducing, which could present a future risk, particularly if lower settlements resulted in higher Council Tax levels. RESOLVED: That the Governance and Audit Committee are assured that the Council is meeting performance requirements under the Local Government and Elections (Wales) Act 2021 and Well-being of Future Generations (Wales) Act) 2015.

The Strategic Director – Finance and Resources introduced the Panel Performance Assessment (PPA) Report and Draft Response, and the Performance and Engagement Manager highlighted key points from within the report. The following was discussed: • The Chair and Vice-Chair had been interviewed as part of the Panel Performance Assessment. The interview had been conducted in a skilled manner and all relevant matters had been covered to a satisfactory level. • A review of the scrutiny and committee structure had been undertaken. This had included a standardised committee size, and the agreed changes were being implemented. A review of delegations had also been undertaken. • The Planning service was now under the responsibility of a new Head of Service. Work was being undertaken to identify and implement improvements to the service, including measures to help speed up the planning process. • The Leader had met with Town and Community Councils and the need to review partnership working arrangements was recognised. • Work on the Resilience Strategy was ongoing and updates would be provided to Democracy. The PPA had identified issues, as some initiatives did not deliver cashable savings. • Work with communities was ongoing, with continued focus on improvement. · It was reported that the Welsh Local Government Association (WLGA) had been undertaking work on national trends arising from PPA’s, with transformation identified as a significant theme. · It was suggested that there was a need to resource smaller services appropriately and that reductions to services, such as public toilets and road sweeping, were often those most visible to communities. · Whilst legislation determined the approach to self-assessment reporting, work had been undertaken to streamline the presentation of performance information. · The PPA had not identified any issues that were not already known. · It was suggested that competitive salaries should be offered in order to address recruitment issues. · In respect of the management response, it was proposed that consideration be given to introducing a 12-month rolling Cabinet forward work programme (action 12) and that action 13 (consider senior resource capacity) be amended to recognise the retention and recruitment issues relating to senior resource capacity. RECOMMENDED TO CABINET: That the following amendments to the Panel Performance Assessment management response be considered: a) Action 12 - That Cabinet implement an annual rolling Forward Work Programme. b) Action 13 – That the retention and recruitment issues relating to senior resource capacity be recognised.

The Performance and Engagement Manager presented the Corporate Risk Register – Spring Review. The following was discussed: · It was confirmed that the report template included a section on risks, although this related primarily to the decision being made rather than corporate risk. It was noted that consideration could be given to reviewing the report template to include the impact on corporate risk and; - Risk owners should be represented at Senior Leadership Team and Cabinet level. - All Members had a responsibility in relation to risk, and appointing one individual as a risk champion could set a precedent. · Reference was made to the risk relating to carbon zero targets, including the expectation that suppliers would also need to meet carbon zero requirements. It was noted that this was a challenging area and that work was ongoing. · In relation to Council Tax, consideration had been given to the ability of residents to be able pay and the point at which Council Tax became uncollectable. It was noted that this issue had been raised during the previous year’s budget-setting process. · It was suggested that the Visitor Levyand the risks associated with its collection, together with any impact on the Welsh Government settlement, needed to be considered. - The enhanced population grant within the settlement was noted as reflecting tourism numbers, and it was acknowledged that there were strong arguments both for and against the visitor levy. - Thorough consultation was taking place. · It was confirmed that school finances had been reviewed, including the school funding formula, the school estate, home to school transport and additional learning needs provision. · The risk relating to balancing the budget reflected funding from Welsh Government and other external factors which were outside the Council’s control. RECOMMENDED TO CABINET: That the Corporate Risk Register (Spring Review) be approved

The Strategy, Performance and Engagement Manager presented an overview of regulatory reports recently issued by external regulators. The regulatory reports presented were as follows: · National Fraud Initiative (Audit Wales) · Are we caring for our carers? (Public Services Ombudsman for Wales) The following was discussed: · Figures were not currently available in relation to the level of savings achieved from National Fraud Initiative matches for Conwy County Borough Council, however, a report would be available in September 2026. · Audit Wales would circulate information to Members in relation to data matching involving the North Wales Corporate Joint Committee and Welsh participant data matches. RESOLVED: That the external regulatory reports in relation to National Fraud Initiative (Audit Wales) and Are we caring for our carers? (Public Services Ombudsman for Wales) be acknowledged.