Governance and Audit Committee

RESOLVED:- That the Terms of Reference be noted.

The Chief Officer for Finance and ICT presented report (COFI/23/25), outlining the findings of Audit Wales’ thematic review on commissioning practices across all twenty two Welsh councils, including Wrexham. Audit Wales representatives introduced the report and informed Members that the review examined decision-making processes for service delivery which was distinct from procurement and it assessed alignment with sustainable development and value for money. It was noted that although Wrexham Council had a commissioning strategy in place, it was applied inconsistently. They identified shortcomings such as incomplete business cases, imprecise outcomes, limited evaluation of long-term impact, and an absence of structured processes for sharing lessons learned. Audit Wales concluded that the inconsistent application of the corporate frame work weakened assurance, and recommended that the Council improve compliance and evaluate the effectiveness of its commissioning arrangements. Wrexham Council’s response was deemed satisfactory. During discussion: · Members acknowledged progress made through legislative changes and welcomed the imminent establishment of a Commercial Board to support assurance. · Internal audit and departmental reviews were ongoing, and Members stressed the need for clearer documentation and more robust business case standards. · Officers confirmed improvement measures were underway, including a standardised approach for assessing in-house service delivery. · The Committee agreed the report should be referred to Scrutiny for further review of value for money and robustness. RESOLVED – That the Governance & Audit Committee: (i) Considered the Audit Wales review at Appendix A and the Council’s response at Appendix B. (ii) Noted the two recommendations made by Audit Wales to strengthen adherence to commissioning processes and assess their effectiveness. (iii) Acknowledged ongoing internal improvements, including the establishment of a Commercial Board and continued departmental and internal audit reviews. (iv) Recognised concerns raised during discussion, including inconsistencies in business case completion and the need for improved documentation and standardised assessments. (v) Agreed to refer the report to Scrutiny for further examination of commissioning arrangements and assurance over value for money.

The Chief Executive and Leader of the Council submitted a report (CE/17/25) to the Governance & Audit Committee that presented the Annual Governance Statement (AGS) for 2024–25, requesting the Committee that they review the supporting evidence of the report, and consider progress on significant governance actions identified for 2025–26. The Lead Member introduced the AGS, highlighting its public importance and alignment with national governance principles. The Chief Executive emphasised that governance was a continuous responsibility embedded across the council. The AGS drew on a wide evidence base, including: a) Internal and external audit outcomes. b) Committee reports. c) Performance data. d) Input from statutory officers and Audit Wales. e) Inspection and risk management findings. Eight significant issues were identified, five carried forward from the previous year, including governance training, LDP assurance, and financial resilience. The following was discussed:- • The need to develop a transformation programme aimed at strengthening the council’s long-term resilience and capacity to respond to financial pressures. • Recognition of the AGS as one component within a wider governance framework, supported by ongoing monitoring and oversight. • The procedural non-compliance outlined in the Audit Wales commissioning review and how its timing meant it would be considered in future governance reporting. • Confirmation that the AGS covered governance arrangements up to 31 March 2025, with any significant developments arising afterward to be included before publication. • Continued reliance on operational tools such as service plans and risk registers to manage governance issues throughout the year. • The importance of improving decision-making processes to reduce the risk of legal challenge, particularly under the Wednesbury Principle. • A recommendation to include the recruitment of a permanent Chief Executive and Head of HR as key governance actions, noting their relevance to organisational stability. • The value of strengthening group leader Personal Review Discussions (PRDs), with an emphasis on meaningful application rather than a procedural exercise. • The potential benefit of linking PRD accountability to standards oversight under the 2021 legislation. • Identification of early warning signs of governance risk such as leadership capacity, scrutiny effectiveness, and councillor conduct, warranting focused attention. • Audit Wales confirmed no additional thematic reviews of Wrexham were planned at present, although the AGS would inform future risk assessments. • The council reiterated its commitment to responding to recommendations and improving governance without increasing audit burden unnecessarily. • Members emphasised the importance of collective political responsibility in advancing governance reforms and fostering collaboration. • Concern was raised about PRDs becoming routine rather than reflective of genuine engagement, with steps suggested to promote substantive use. • Officers confirmed PRDs would be added to the Democratic Services Committee forward work programme for oversight and development. • Acknowledgement that training needs for staff should be considered alongside elected member development. • Assurance was provided that quarterly updates on progress against AGS actions were scheduled in the committee’s forward work programme. • The Panel Performance Assessment (PPA) was noted for September, with the formal council response and committee input expected ahead of submission to Council in December. • Any relevant findings from the PPA would be incorporated into the next AGS, rather than retroactively revising the current statement. RESOLVED:- (i) That the Governance and Audit Committee considered the Annual Governance Statement (Appendix A) and, subject to the agreed amendments, confirmed that it appropriately reflected the governance arrangements within the council for publication alongside the council’s Statement of Accounts. (ii) That the Committee note that any significant issues arising after 31 March 2025 to be incorporated into the AGS prior to publication as required. (iii) That the Democratic Services Committee be recommended to consider the introduction of PRDs for Members.

The Chair acknowledged that this meeting marked the final attendance of the Head of Service: Performance, Improvement & Partnerships at the Governance and Audit Committee. On behalf of the Committee, sincere appreciation was conveyed for her valuable contributions, which included comprehensive reporting, meticulous preparation, and her consistent engagement in Committee proceedings. Members extended their best wishes for her future endeavours and expressed gratitude for her professionalism and support.

The Head of Service for Audit and Technical Services outlined the committee’s work programme, confirming that no new items had been added since the last update. The Counter Fraud Strategy had been rescheduled with new dates agreed following Council approval. The following was discussed:- · The review of the Statement of Accounts that was due in November, noting its importance, particularly for new members as it will cover two sets of statements. · It was confirmed that additional meetings could be arranged if required, including a potential session in January depending on progress. · Members were encouraged to request any pre-meeting training as needed. RESOLVED: That the Governance and Audit Committee Work Programme was acknowledged.

RESOLVED: - That the GAC Development Programme was acknowledged.

The Chief Officer for Finance and ICT submitted a report (COFI/22/25) asking Members to consider the Governance and Audit Committee’s Annual Report 2024-25. The Head of Service for Audit and Technical Services presented the annual report 2024-25, prepared in accordance with constitutional requirements for submission to Full Council. Members were informed that it summarised the Committee’s activities over the past year, reflecting the Council’s evolving challenges and reaffirming its assurance role. Professional contributions from external audit, internal teams and Committee Services were acknowledged. A discussion pursued and the main points were raised:- · A Member suggested the inclusion of Chief Officers in the Chairs foreword within the report, given their regular attendance and support. · It was noted that paragraph 6.3 reinforced the points made in the Annual Governance Statement and the Committee’s future responsibilities. · Thanks were extended to the Chair for her efforts during a demanding year, to lay members for their input, and to Councillor Paul Rogers for his support. RESOLVED: (i) That the Committee endorsed the Annual Report 2024–25 for submission to Full Council, subject to the inclusion of reference to the contribution of Chief Officers in the Chair’s foreword. (ii) That the Committee noted the alignment between paragraph 6.3 and the Annual Governance Statement, and extended thanks to the Chair, lay members, and Councillor Paul Rogers for their support.