Agenda and draft minutes

The Chairperson welcomed everyone to the meeting and went through some general housekeeping arrangements for the meeting.

An apology for absence was received from Councillor J C Hughes.

To confirm the Minutes of the Performance, Governance and Audit Committee held on 4 June 2026 (copy enclosed).

RESOLVED

(i)             that the Minutes of the meeting of the Committee held on 4 June 2026 be received.

Minute No. 60 – Chairperson’s Notices

A typographical error on the last line of this Minute was noted and the Chairperson advised that this would be corrected.

RESOLVED

(ii)            that subject to the above amendment the Minutes of the meeting of the Committee held on 4 June 2026 be confirmed.

To note the matters arising from the last meeting of the Committee (copy enclosed).

The Committee noted the matters arising from the last meeting.

In response to further discussion regarding the action relating to installation of a green roof in Burnham-on-Crouch, the Chairperson requested that the matter be referred to the Environmental and Sustainability Working Group, particularly the suggestion to explore options other than a green roof to attract wildlife, such as planting an area of buddleia plants within Riverside Park.

Reference was made to the Members’ dashboard, which provided details of Key Performance Indicators (KPIs) and the data underpinning them. In response to a request for additional information that would indicate whether an area was on track or moving towards excellence, the Chairperson requested that an item relating to this be brought back to the next meeting of the Committee.

Confirmation was sought as to whether the briefing note from the Director of Finance setting out the basis of the fee scale, charges and the method by which additional charges were applied had been circulated. In response, the Director advised that he understood it had been circulated but would ensure the briefing note was recirculated to Members.

In response to a question regarding the appointment of External Auditors, the Director of Finance confirmed that appointment of External Auditors was undertaken by the Government and that the Council had no control over this process. He further advised that the new local audit office was due to be established within the next 12 months and would lead to a greater level of engagement in respect of the external audit contract being managed on the Council’s behalf.

To disclose the existence and nature of any Disclosable Pecuniary Interests, Other Registrable interests and Non-Registrable Interests relating to items of business on the agenda having regard to paragraph 9 and Appendix B of the Code of Conduct for Members.

(Members are reminded that they are also required to disclose any such interests as soon as they become aware should the need arise throughout the meeting).

There were none.

To receive the views of members of the public, of which prior notification in writing has been received (no later than noon on the Tuesday prior to the day of the meeting).

Should you wish to submit a question please complete the online form at: www.maldon.gov.uk/publicparticipation.

No requests had been received.

To consider the report of the Director of Finance (copy enclosed).

The Committee considered the report of the Director of Finance and associated Internal Audit reports from BDP LLP, attached on the agenda as follows:

7a) Internal Audit Progress Report (July 2026)

7b) Follow Up of Recommendations Report (July 2026)

7c) IT Governance - Final Report (April 2026)

7d) Medium Term Financial Strategy - Final report (May 2026)

7e) Accounts Payable - Final Report (June 2026)

7f) Annual Report and Opinion - Draft (July 2026)

Mr Andrew Billingham (BDO LLP) presented his report to the Committee, which provided an update on progress made against the 2025 / 26 Internal Audit Plan and summarised the work BDO had completed, together with an assessment of the systems reviewed and the recommendations raised.

It was noted that, since the last report to the Committee, three final reports had been completed and were presented to the Committee. The work for the year had been concluded and had informed the Annual report and Head of Internal Audit Opinion for 2025 / 26, presented separately.

Mr Billingham advised that work had commenced on planning the delivery of the 2026 / 27 Internal Audit Plan following its approval by this Committee at its last meeting.

Mr Billingham presented the report and provided an update in respect of the recommendations arising from reports issued in 2024 / 25 and 2025 / 26. It was noted that eight recommendations had been implemented since the last meeting of the Committee. There were two recommendations classed as in progress, meaning they had missed their original implementation date, and one recommendation classed as overdue, having missed its revised implementation date. Members were advised that work was progressing to implement all three recommendations, although implementation was taking longer than Officers anticipated.

In response to a question, Mr Billingham explained the process undertaken by Internal Audit to identify implementation dates and follow up with Officers, commenting that, overall, this presented a positive position.

The Chairperson questioned whether the Senior Leadership Team (SLT) received reports when deadline dates were not adhered to. She expressed concern where targets and deadlines were not met and suggested that the reasons for missed deadlines could be reported to the Committee to ensure openness and transparency.

In response, the Chief Executive advised that all recommendations were reviewed by SLT, allowing for discussion and prioritisation of any issues, concerns regarding deadlines, or capacity constraints. He further commented on the importance of meeting deadlines and the need for realistic timescales to be set by both the Council and Internal Audit. He also highlighted the positive working relationship between Council Officers and the Internal Auditors.

Mr Billingham presented the report, advising that a review of the adequacy and effectiveness of the Council’s IT governance arrangements had taken place. He explained that the review had received moderate assurance and outlined the two medium-priority recommendations raised to support the Council in mitigating the identified risks.

It was noted that one of the recommendations related to the online training for staff and Members and, in response to questions, the Chief Executive advised that it was important to focus on those who had not passed the test and to offer support where required. In response to further debate and comments made, the Chairperson reminded the Committee that it had previously debated training and that, whilst not all training was mandatory, the Council was seeking to achieve the right balance. The Director of Strategy and Improvement reported that, following feedback from staff and Members, changes had been made to the provider used for training courses, with the current system having been more intuitive, courses having been shorter, and the Council’s new email system having the ability to highlight training requirements in areas such as cyber security.  

In response to a question regarding the ICT workforce recommendation, the Chairperson referred to a concern raised by the Committee in the previous year regarding the lack of investment in ICT (in terms of staff, software, licenses, etc.) and questioned whether the ICT team was operating at full capacity and whether managers had received training in budget management. The Director of Strategy and Improvement acknowledged the audit findings and outlined the changes that had been made to the ICT team as part of the Transforming Together Programme. She advised that the Council had also strengthened its organisational approach to workforce planning through the appointment of a new Learning and Development Officer.

The Chairperson highlighted some recent technical problems that had occurred in the Council Chamber prior to the start of a Committee meeting and the availability of IT to resolve such issues. The Director of Strategy and Improvement assured Members that there was a rota for onsite IT with a minimum of two staff on site every day and in addition, she was having further discussions with the Director of Legal and Governance regarding the resourcing of Committees.

There was some discussion regarding the ICT system and replacement of the microphones in the Council Chamber with some Members expressing concerns that any new system would meet the requirements of the Council and its residents. The Chief Executive advised that Officers were progressing a procurement process for a new IT system within the Council Chamber which included microphones and that further information would be provided to Members when available. A comment regarding IT systems and Local Government Reorganisation was raised and the Director of Finance provided further information.

In response to a question regarding leadership programmes for Members and the Senior Leadership Team, the Chief Executive advised that the Local Government Association supported Members and that Officers were encouraged to put themselves forward for  ...  view the full minutes text for item 7c

Mr Billingham presented the report, advising that a review of the Council’s Medium Term Financial Strategy (MTFS) had taken place. He explained that the review had received a moderate assurance opinion for the design of controls and a substantial assurance for their effectiveness. Members were reminded that substantial assurance opinion was the highest opinion that the Internal Auditors could provide.

It was noted that one medium-priority recommendation had been raised regarding the absence of documented guidance or procedure notes setting out the methodology for the development of the MTFS.

In response to comments, the Director of Finance acknowledged that having a clear internal process note would be beneficial and would also assist the Council in its preparation for Local Government Reorganisation.

Mr Billingham presented the report, advising that a review of the design adequacy and operational effectiveness of internal controls managing accounts payable processes had taken place. He explained that the review had received a moderate assurance opinion for the design of the controls and substantial assurance opinion for their effectiveness. One medium-priority recommendation had been raised to help the Council mitigate the identified risks. The recommendation related to the potential for duplicate supplier accounts or duplicate payments and the need for the Council to have a process in place to regularly review such occurrences.

In response to a question, the Director of Finance advised that target implementation date for the recommendation was 31 October 2026. He agreed to provide feedback to Members on progress made against the recommendation and would take forward Members’ comments regarding the need to undertake regular checks to identify duplicate accounts and ensure that no payments were being in error.

The Director further advised that he was developing a periodic report to monitor budget code and account number changes and to ensure that this formed a key control within the Authority.

Mr Billingham presented the report, which provided a summary of the work undertaken by Internal Audit during the year. He reported that the outcomes were positive, with the Council receiving an overall assurance opinion of Generally Satisfactory, with improvements required in some areas.

It was noted that the report highlighted the work completed during the year, together with the themes identified through the audits undertaken and the findings reported.

The Chairperson then moved the recommendations set out in the report. This was duly seconded and approved.

RESOLVED that the Committee considered, commented, and approved the following reports as set out on the agenda:

(i)             Internal Audit Progress Report (July 2026) – at 7a;

(ii)            Follow-Up of Recommendations Report (July 2026) – at 7b;

(iii)           IT Governance - Final Report (April 2026) at 7c;

(iv)           Medium Term Financial Strategy - Final Report (May 2026) – at 7d;

(v)            Accounts Payable - Final Report (June 2026) - at 7e;

(vi)          Annual Report and Opinion - Draft Report (July 2026) – at 7f.

To consider the report of the Director of Strategy and Improvement, (copy enclosed).

The Committee considered the report of the Director of Strategy and Improvement providing an update on progress of the UK Shared and Rural England Prosperity Funds (UKSPF) for the allocation period 2025 / 26.

Members were reminded that the Chancellor had confirmed the continuation of UKSPF for a further year, allowing local authorities to invest in local growth, in advance of wider funding reforms. The Council on 3 April 2025 had approved the proposed projects to be delivered and granted delegated authority to the Chief Executive, in consultation with the Leader of the Council, Chairperson of the Strategy and Resources Committee and Ward Members to identify projects for delivery.

The Council had submitted its forecast spend, outputs and outcomes for 2025 / 26 to the Ministry of Housing, Communities and Local Government (MHCLG) who had confirmed acceptance of the submission. It was noted that of the £738,369 funding, expenditure of £751,221.35 had been incurred and Appendix 1 to the report provided a progress update on the individual projects.

Members were advised that Officers would continue to deliver the projects over the funding period and submit the required MHCLG returns. Further progress updates would be reported to the Performance, Governance and Audit Committee throughout the municipal year.

The Chairperson congratulated the Director on an excellent piece of work which resulted in a number of good initiatives around the District. She then moved the recommendation set out in the report. This was duly seconded and agreed.

RESOLVED that the Committee acknowledged the update provided on Maldon District Council’s UK Shared and Rural England Prosperity fund allocations for 2025 / 26 and agreed to continue monitoring delivery.

To consider the report of the Director of Finance (copy enclosed).

The Committee considered the report of the Director of Finance presenting an updated version of the Council’s Financial Regulations (attached at Appendix 1 to the report). It was noted that the review of the Financial Regulations had taken place ahead of the new financial year as part of the preparations for implementing the 2026 / 27 budget.

The Director of Finance presented the report and advised Members that the recommended changes to the Financial Regulations would support increased efficiency and agility in the delivery of the Council’s agreed priorities without compromising on the effectiveness of financial controls. The report set out the main areas of change and highlighted the following three areas where more significant amendments were proposed:

·                Item 8 – Clarification of budget management order of priority

·                Item 12 – Use of ‘best estimates’

·                Item 16 – Tolerance in capital schemes

It was noted that the proposed changes had been considered by the Senior Leadership Team.

The Chairperson thanked Councillor R G Pratt who, at a previous meeting, had requested that the Regulations be brought back with the proposed changes tracked. She then moved the recommendations as set out in the report, which were duly agreed.

RECOMMENDED

(i)             That the recommended changes to the Financial Regulations, set out in APPENDIX 1 to these Minutes, be considered and approved;

(ii)            That, subject to (i) above, the Financial Regulations be revised and published on the Council’s website.

To consider the report of the Director of Finance (copy enclosed).

The Committee considered the report of the Director of Finance presenting the pre-audit accounts for 2025 / 26 (attached at Appendix 1 to the report) for consideration. It was noted that the Accounts had been prepared and published on the Council’s website by the deadline of 30 June.

The Chairperson referred to the recent Member training that had taken place, the video of which had been made available on the Members’ website. In response to a question, the Director of Finance confirmed that Mr Smith (Independent Person) had been in attendance at this training and he would ensure he had a copy of the video recording.

The Director of Finance presented the report, highlighting that these were the pre-audit and therefore not finalised Statements of Account. He advised that the Council had met the robustness test of the overall financial management of the Council to prepare its accounts to a high quality and defined timetable. The format of the accounts reflected the complexity of the Council and requirements of both the International Financial Reporting Standards (IFRS) and Chartered Institute of Public Finance and Accountancy (CIPFA).

It was noted that the Council would not receive sign off on the accounts by KPMG (External Auditors) until the backstop date of late January 2027. However, the Director of Finance explained that verbal assurance of the position was expected in October / November 2026.

The accounts were supported by a range of supporting statements which, together with the accounts, provided a detailed record of the decision-making and financial activity of the Council during the year. The report also included details of the valuation of the pension scheme and Appendix 2 to the report provided the actuary’s valuation and assumptions for comparison. Officers had reviewed the assumptions made by the actuary and were content the assumptions were reasonable.

The Director highlighted the financial performance set out in the report, including revenue performance, the Comprehensive Income and Expenditure Statement, the Movement in Reserves Statement and the Balance Sheet.

In concluding his presentation of the report and appendices, the Director expressed his thanks to the Finance Team for their hard work.

The Chairperson then moved the recommendation set out in the report. This was duly seconded and agreed.

RESOLVED that Members:

(i)             considered the pre-audit accounts for 2025/26 (attached at Appendix 1 to the report) and the purpose of that document;

(ii)            noted the successful preparation of the pre-audit accounts for 2025/26 by Officers ahead of the deadline;

(iii)           noted the key values that the pre-audit accounts for 2025/26 include;

(iv)           reviewed the key assumptions made by the actuary in their valuation of the net pension liability (as detailed in Appendix 2 to the report).

At this point, Mr Smith, the Independent Person, welcomed the positive reports and suggested that the Council should do more to publicise its achievements. The Chairperson highlighted the significant progress made by the Council in recent years. The Director of Finance thanked Members for their comments and noted that the reports provided assurance of the Council’s strong financial position, adding that opportunities for further publicity would be considered.