Audit and Governance Committee - Thursday, 30th July, 2026 7.00 pm - Agenda and draft minutes

To receive the Executive Head of Governance & Law’s Report No. LEG2602 (copy attached), which presents the Council’s performance on Freedom of Information requests.

The Committee received the Executive Head of Governance and Law’s Report No. LEG2602, which set out information about Freedom of Information (FOI) requests received by the Council, and performance on responses to FOIs.

The Freedom of Information Act 2000 (FOIA 2000) provided public access to information held by public authorities. Freedom of Information requests encouraged openness and scrutiny of the Council’s decisions. Rushmoor Borough Council had a statutory duty to fulfil its obligations under FOIA 2000.

The Committee noted that the Council’s performance on FOIs continued to steadily improve and had been responding within the target response rate. There was further work planned, including training, and publishing more information online to further enhance improvements already made. A new Microsoft Lists system had launched in Q2 of 2025 to improve resilience, and increase oversight by senior management, this had contributed to a positive improvement in response times.

RESOLVED: That officers:

(i)            continued the work on reducing the number of overdue FOIs within the system in 2026 and continued to ensure that at least 90% of requests were responded to within the statutory 20 working days, per the ICO target;

(ii)          continued to raise FOI awareness and knowledge across employees, through regular training and guidance; and

(iii)         publish as much information proactively to reduce the number of FOI requests.

To receive the Executive Director’s Report No. ED2613 (copy attached), which sets out the corporate health and safety arrangements for 2025/26.

The Committee received the Executive Director’s Report No. ED2613, which provided an update on the ongoing development and maintenance of the Council’s corporate health and safety arrangements in 2025/26 and the plans in place for 2026/27. 

The overall health and safety risk profile of the Council remained low, with the majority of high-risk work activity contracted out, only a few specific roles had an enhanced level of risk. Examples of these were technical staff working at Princes Hall and members of the Place Protection team.

It was noted that, the Corporate Health and Safety Advisor maintained a reporting regime on corporate health and safety matters that was taken quarterly to the Senior Leadership Team (SLT). This related predominately to operational matters. The numbers of accidents/incidents and violence at work incidents, including trends and a summary of those reports, was routinely reported to SLT and Cabinet via the quarterly performance management reporting process. The number of accidents and incidents seen at the Council was low and had remained relatively stable for a number of years, with a total number of 22 in 2025/26.

During discussion, Members sought clarification of the meaning of ‘Other’, with regard to reported incidents. Members noted that ‘Other’ referred to incidents reported by third parties, such as the police and other agencies. Members acknowledged measures in place to protect staff from abusive and challenging behaviour, including training, incident reporting procedures, access to counselling through the Employee Assistance Programme (EAP) and the involvement of the police, where necessary. Members were advised that staff perceptions of safety were monitored through regular staff surveys and that efforts continued to secure Trade Union Health and Safety representation at the Council.

ACTION:

RESOLVED:  That the Executive Director’s Report No. ED2613, be noted.

To receive the Executive Head of Finance’s Report No. FIN2615 (copy attached), which sets out the activities of the Treasury Management and Non-Treasury Management Investment Operations for 2025/26 outturn (as at 31st March, 2026) and compliance with prudential indicators.

The Committee considered items 5 and 6 on the agenda together.

Treasury Management and Non-Treasury Investment Operations and Prudential Indicators - Outturn 2025-26

The Committee received the Executive Head of Finance Report No. FIN2615, which set out the draft activities of the Treasury Management and non-Treasury Investment Operations for Quarter 4, in the financial year 2025/26, and reported on compliance with Prudential Indicators, pending the statement of accounts being signed off by the Council’s external auditors. The report was a statutory requirement under the Chartered Institute of Public Finance Accountants (CIPFA) Code of Practice on Treasury Management.

The Committee were advised that all activity was conducted within the approved Treasury Management Practices (TMPs). Borrowing maturity had moved towards longer term to give cost certainty and lower interest rate exposure risk, providing more interest rate stability on borrowing.

The Committee RECOMMENDED TO THE CABINET that the Executive Head of Finance Report No. FIN2615, in relation to the treasury management and non-treasury investment operations carried out, be approved.

Treasury Management and Non-Treasury Investment Operations and Prudential Indicators - Q1 2026/27

The Committee received the Executive Head of Finance Report No. FIN2616, which set out the activities of the Treasury Management and non-Treasury Investment Operations for Quarter 1 in the financial year 2026/27 and reported on compliance with Prudential Indicators. The report was a statutory requirement under the CIPFA Code of Practice on Treasury Management.

The Committee noted that all treasury activity had been conducted within the approved Treasury Management Practices. Borrowing maturity had moved towards longer term to give cost certainty and lower interest rate exposure risk, providing more interest rate stability on borrowing.

During discussion, Members raised questions regarding the Council's remaining short-term borrowing and whether it would be converted to longer-term borrowing. Officers advised that borrowing arrangements were reviewed regularly and that some short-term borrowing currently represented the most cost-effective approach. In response to a question about Union Yard, Members noted that the sale of Blocks C and D to Vivid, was due to be completed on 31st August.

The Committee RECOMMENDED TO THE CABINET that the contents of the Executive Head of Finance’s Report No. FIN2616, in relation to the Treasury Management and non-Treasury Investment Operations carried out, be approved.

To consider the Executive Head of Finance’s Report No. FIN2614 (copy attached), which presents the unaudited 2025/26 Statement of Accounts and the Annual Governance Statement for review and approval.

The Committee considered item 7 on the agenda, the Unaudited Statement of Accounts and the Annual Governance Statement, separately.

The Committee received the Executive Head of Finance’s Report No. FIN2614, which set out, the unaudited Statement of Accounts for 2025/26, for review.

The Committee noted that the preparation of the Statement of Accounts and the audit scrutiny provided reassurance that the accounts gave a true and fair view of the financial position of the Council. Members’ role in approval was to demonstrate their ownership of the Statement of Accounts and their confidence in both the Chief Finance Officer and the process by which the accounting records were maintained and the Statement of Accounts prepared.

The Accounts and Audit Regulations 2015 stated that, for each financial year, the Council must conduct a review of the effectiveness of the Council’s internal control and prepare an annual governance statement for review and approval by the Committee prior to it being signed by the Chief Executive and Leader of the Council. The statement would then be finalised with the signed Statement of Accounts.

Members were advised that the Statement of Accounts had been published in accordance with statutory requirements and was currently subject to external audit. The first phase of the audit was nearing completion, with further audit work scheduled to take place in September.

The Committee were informed that, given the technical nature of the accounts, an informal workshop would be arranged in September or October to provide Members with an overview of the Statement of Accounts, explain the key issues and consider the findings of the External Auditor once available.

ACTION:

RESOLVED: That the unaudited Statement of Accounts, be noted.

The Committee considered item 7 on the agenda, the Unaudited Statement of Accounts and the Annual Governance Statement, separately.

The Committee received the Executive Head of Finance’s Report No. FIN2614, which set out the Annual Governance Statement for 2025/26, for approval.

The Report set out the procedure for compiling the Annual Governance Statement and the requirements of the Committee to ensure a meaningful review of the Annual Governance Statement. Members were reminded that they needed to be satisfied that the Annual Governance Statement reflected the governance environment and any actions required to improve it.  Members also had to be satisfied that it demonstrated how governance supported the achievement of the Council’s objectives.

During discussion, Members sought clarification regarding a reference to the Corporate Governance Group being on "hiatus" and were advised that the group was currently on hold pending a review of its terms of reference. Members questioned the use of procedural exemptions and suggested that the operation of these governance processes be reviewed through future Internal Audit work.

ACTION:

RESOLVED: That the Annual Governance Statement, be approved.

To receive a verbal update from the Executive Head of Finance regarding the status of the Financial Recovery Working Group.

The Committee received a verbal update on the Council's financial position and the arrangements that had been put in place to monitor delivery of the Budget Strategy.

Members were advised that a Financial Recovery Working Group had been established, following the approval of the Council’s budget in February 2025, to oversee the delivery of actions required to return the budget to a balanced position. It was noted that the majority of these actions had now been completed, with only a small number of capital receipt matters remaining outstanding.

The Committee noted that, following the announcement of Local Government Reorganisation (LGR), the Council's financial strategy had changed. Rather than pursuing further service reductions, the focus was on maintaining service delivery, preparing for the new authority and ensuring that the Council remained financially sustainable until Vesting Day. Members were advised that monthly budget monitoring reports were the primary mechanism for managing financial risks and monitoring progress against the strategy.

During discussion, Members expressed concern regarding the Council's ongoing financial risks and emphasised the importance of regular Member oversight. It was confirmed that financial sustainability was included within the Council's corporate risk register. Members agreed that the Council's financial position would benefit from more regular Member scrutiny and oversight. Consequently, the Committee supported a proposal that Cabinet establish a politically balanced Member working group, meeting monthly for the remainder of the Council's term, to review the Council’s financial management. The Chair advised that the recommendation would be raised with the Leader of the Council and, if it was not progressed by the Cabinet, it would be taken to Council.

ACTION:

The Committee RECOMMENDED TO THE CABINET that the Cabinet establish a politically balanced Member Working Group, meeting monthly for the remainder of the Council's term, to review financial management.