Agenda and minutes

There were no disclosable pecuniary interests.

To agree the minutes of the meeting held on 22^nd September 2025

The minutes of the meeting held on 22^nd September 2025 were agreed and signed as a true record.

There were no matters arising.

To consider whether to exclude the press and public for the private item(s) of business for the reasons shown in the report.

RESOLVED that the Audit and Procurement Committee agrees to exclude the press and public under Section 100(A)(4) of the Local Government Act 1972, relation to the private report in Minute 43 below, headed “Consideration of Approval of Severance Packages” on the ground that the item involves the likely disclosure of defined in Paragraphs 1, 2, 3 and 4 of Schedule 12A of the act, as they contain information relating to individuals, the financial and business affairs of a particular person (including the authority holding that information) and information relating to labour relations matters and that, in all circumstances, of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Report of the External Auditor (Grant Thornton)

The Audit and Procurement Committee considered a report of the Director of Finance and Resources, that set out the external auditor, Grant Thornton’s, report on the Council’s arrangements for securing economy, efficiency and effectiveness in its use of resources for the financial year 2024/25.  The report demonstrates a positive direction of travel and assurances regarding the arrangements in place.

In addition to the external audit of the statutory statement of accounts, the Council’s external auditor are required under the national Audit Office (NAO) Code of Practice, to carry out an annual audit which tests arrangements that the Council has in place to ensure economy, efficiency and effectiveness in its use of resources.

The Appendix to the report set out Auditor’s report for 2024/25, including recommendations where they consider improvements may be made, and a management response for each.  It also presented progress on previously made recommendation. 

The Committee noted that the external auditors are required to prepare their report based on the following specified criteria:

·  Financial sustainability: how the Council plans and manages its resources to ensure it can continue to deliver its servicecs.

·  Governance: how the Council ensures that it makes informed decisions and properly manages risks.

·  Improving economy, efficiency and effectiveness: how the Council uses information about its casts and performance to improve the way it manages and delivers its services.

The equivalent report for 2023/24 was considered and noted by this committee at it’s meeting on 29^th January 2025 (Minute 45/24 refers).  That report highlighted delays around publishing of audited accounts, and although the Council had made significant progress towards recovery, a single weakness was identified by the external auditor under the governance criteria.  A single key recommendation was made on this, which was summarised as “For 2024/25, the Council will need strong arrangements in place to ensure that it can publish unaudited accounts by 30^th June 2025 and to support the external audit process that allow for publication of audited accounts by February 2026”.

The Government had set out deadlines (or backstops) for all Council’s to meet regarding the publication of accounts, which were summarised within the report.  Coventry had addressed the key weakness identified by Grant Thornton as the causal factors in the delay of prior years and made significant improvements in its processes for completing statements of accounts, such that all dates thus far have been achieved, including draft accounts for 2024/25 being published by 30^th June 2025.  Page 9 of the Appendix indicated that the statement of accounts audit process is progressing and that they consider the Council to be on target to achieve the February 2026 date for issuing an audit opinion in respect of the 2024/25 accounts.  As a result, Grant Thornton have formally removed the key recommendation and have assessed the Council as no longer having a weakness in this regard.

A number of other improvement recommendations from 2023/24 and prior years had also been resolved or superseded, with only 2 now identified as still in progress  ...  view the full minutes text for item 34.

Report of the Director of Finance and Resources

The Audit and Procurement Committee considered a report of the Director of Finance and Resources which provided an update on the Council’s Treasury Management activity in 2025/26 to the end of September 2025.

The Council adopted the Chartered institute of Public Finance and Accountancy’s “Treasury Management in the Public Services: Code of Practice (the CIPFA code). This requires the Council to approve an annual Treasury Management Strategy and a mid-year update report.  Treasury Management performance was reported as part of regular budget monitoring reports to the Committee.

The Council’s Treasury Management activity is undertaken in line with the Treasury Management and Commercial Investment Strategy and Policy for 2025/26, which was agreed by Cabinet as part of the Budget Report 2025/26 at its meeting of 25^th February 2025.  There were no breaches of the strategy and policy to report.

The Council is supported in the Investment Strategy and Policy by its Treasury Management Advisors - Arlingclose. The advisors provide economic analysis and specialist advice.  A key element of this is the provision of advice on credit risk and the supply of information on credit ratings. Regular review meetings with the advisors continue to be held.

Appendix 1 was a detailed list of short-term borrowing and investments that the Council holds as at 30th September 2025.  There had been no short-term borrowing so far in 2025/26, although £20m of short-term borrowings taken out at the end of 2024/25 was repaid. It was anticipated that due to variables in the cashflow forecast for the remainder of 2025/26, that some short term borrowing may need to be sourced in Quarter 4.  It was emphasised that this was a snapshot of the Council’s cashflow and did not represent the Council’s overall financial situation. 

The Committee noted that, other than an £18m loan from West Midlands Combined Authority (WMCA) on behalf of UKBIC, no new long-term borrowing had been undertaken since 2009, due in part to the level of investment balances available to the Council. The Council has no immediate plans to take any new long-term borrowing, until interest rates bottom out, forecast to be in the final quarter of 2025, however this would be kept under review. In March 2025, the Council repaid £12m stock issue closely followed by a repayment of £10m Lender Option Borrower Option (LOBO) debt in May 2025.  As at 30th September 2025, the Council’s long-term liabilities totalled £292.0m.  This total was mainly made up of long-term borrowing sourced from the Public Works Loan Board (PWLB); Liabilities arising from the Private Finance Initiative (PFI) and Lender Option Borrower Option (LOBO’s) borrowing.

The PWLB remained the main source of loan finance for funding local authority capital investment.  In Augst 2021, HM Treasury significantly revised guidance for the PWLB lending facility with more details and 12 examples of permitted and prohibited use of PWLB loans.  Authorities that are purchasing or intending to purchase investment assets primarily for yield will not be able to access the PWLB except to refinance existing loans  ...  view the full minutes text for item 35.

Report of the Director of Finance and Resources (Section 151 Officer)

The Audit and Procurement Committee considered a report of the Director of Finance and Resources, that provided a summary of the new professional standards for internal audit which came into effect on 1^st April 2025, including the essential conditions which apply to the Committee, and sought approval for the Internal Audit Service’s performance objectives for 2025-26.

The “Global Internal Audit Standards in the UK Public Sector” (the Standards) consists of the Global Internal Audit Standards of the Institute of Internal Auditors and the Application Note: Global Internal Audit Standards in the UK public sector issued by CIPFA. In addition, CIPFA have issued a “Code of Practice for the Governance of Internal Audit in UK Local Government” which is designed to work alongside the new internal audit standards.

The Standards are split into five domains, each with a number of principles and standards which underpin them:

  Domain I    Purpose of Internal Auditing

  Domain II  Ethics and Professionalism

  Domain III  Governing the Internal Audit Function

  Domain IV  Managing the Internal Audit Function

  Domain V  Performing Internal Audit Services

Whilst many of the principles and standards are similar to the previous professional standards for internal audit, one of the key differences is the inclusion of “essential conditions” under Domain III for the Governance of Internal Audit.  When the Institute of Internal Auditors published the Standards, it recognised that in the public sector, governance structures or other laws or regulations may impact on how the essential conditions can be applied. The Code of Practice therefore provides the route to satisfying the essential conditions, but in a way that is appropriate for UK local government.

Under Domain III, the Standards require the Chief Internal Auditor to discuss:

·  The purpose of internal auditing

·  The essential conditions required for Governing the Internal Audit Function

·  The potential impact on the effectiveness of the internal audit function if the board or senior management does not provide the support outlined in the essential conditions.

In addition, under the essential conditions for governance standard on quality, new requirements have been introduced, linked to internal audit’s performance objectives, which require the Audit and Procurement Committee to approve the performance objectives for the Internal Audit Service on an annua basis.  Appendix 1 to the report provided a summary of the essential conditions relating to the Audit and Procurement Committee.

Table 1 of the report set out performance objectives and measurements for 2025/26, which had been determined by the Chief Internal Auditor.  The Committee noted that all existing performance indicators would continue to be maintained as part of the administrative arrangements for managing the Internal Audit Service.

RESOLVED that, the Audit and Procurement Committee:

1.  Note and consider the new professional standards for internal audit, including the essential conditions applicable to the Committee.  This should include consideration of whether there are any areas where, in the view of the Committee, arrangements will not be sufficient to meet the essential conditions.

2.  Approve the performance objectives for internal audit for 2025/26.

Report of the Director of Law and Governance

The Audit and Procurement Committee considered a report of the Director of Law and Governance that provided a summary of the Council’s performance during 2024/2025 in responding to requests for information received under Data Protection legislation. It also reported on the management of data protection security incidents and/or those reported to the Information Commissioner’s Office (ICO) and on data protection training.

Information was one of the Council’s greatest assets and its correct and effective use was a major responsibility and was essential to the successful delivery of the Council’s priorities. Ensuring that the Council had effective arrangements in place to manage and protect the information it held, both personal and business critical information, was a priority.

Data protection legislation set out the requirements on organisations to manage information assets appropriately and how they should respond to requests for information. The ICO was the UK’s independent supervisory authority set up to uphold information rights in the public interest, promote openness by public bodies and data privacy for individuals, and monitors compliance with legislation.

The Information Governance (IG) function supported the Council’s compliance with the UK General Data Protection Regulations (GDPR), Data Protection Act (DPA) 2018, the Data (Use and Access Act) 2025, Freedom of Information Act 2000 (FOIA) and Environmental Information Regulations (EIR). The Council had a statutory obligation to comply with this framework by responding appropriately to requests and managing personal data lawfully. The Information Governance Team assist the organisation in meeting these requirements by monitoring internal compliance, informing and advising on data protection obligations, providing advice and guidance and raising awareness on data protection matters.

The landscape in which public authorities were now operating had continued to change since the introduction of the GDPR and subsequently UKGDPR and the new Data Protection Act 2018 (DPA 2018) in 2018. The landscape would continue to change.  Good information governance has an important part to play as the introduction of integrated care systems to plan and deliver joined up health and care services continue to develop, the use of AI to transform service delivery develops and the cyber security landscape becomes more challenging.

Since 2023, successive governments have proposed legislation to reflect the changing context in which personal data is managed.  The Data Use and Access Act 2025 (DUAA) received Royal Assent in June 2025 and introduced target reforms to the UK’s data protection framework.  While retaining core principles of the UK GDPR and Data Protection Act 2018, the DUAA aims to simplify compliance, promote innovation, and enable responsible data sharing.  The Act complemented and did not replace existing legislation.  As with the introduction of previous data protection legislation, most elements are awaiting commencement orders, regulations and guidance from the ICO and the Information Governance Team would continue to ensure the organisation responds appropriately.

The ICO continued to apply its revised approach to working more effectively with public authorities, initially introduced in June 2022. This approach has seen an increased use of the ICO’s wider powers under data protection law, including warnings,  ...  view the full minutes text for item 37.

Report of the Director of Finance and Resources

The Audit and Procurement Committee considered a report of the Managing Director for Coventry Municipal Holdings Limited, which set out the companies’ compliance with the Group Governance Agreement.

Coventry Municipal Holdings Limited (CMH) group included the following companies:

·  Tom White Waste Limited (TW ) and subsidiaries: A&M Metals, TW(LACo) (the Teckal company)

·  Coombe Abbey Park Limited (CAPL) and subsidiaries: No Ordinary Hospitality

·  Management (NOHM), Coombe Abbey Park (LACo) (the Teckal company)

·  Coventry Technical Resources Limited (CTR)

·  Coventry Regeneration Limited (CR)

·  No Ordinary Hotels Limited (effectively a dormant company)

CMH and the trading subsidiaries signed a Deed of Adherence which confirmed their agreement to meet the requirements under the Group Governance Arrangements (GGA).  This legal document was the framework that each entity complied with in relation to company governance with information on the make-up and role of the Board of Directors, Coventry Shareholder Committee and the delegations for decisions at the various levels in the structure.  In addition to this, the GGA also covered the reporting requirements and information for Business Planning and budgets, and the Annual Performance Report.  Appended to the GGA were:

·  Delegations Policy

·  Conflicts Policy

·  New Subsidiary Policy

·  Council Contracting Policy

·  Procurement Policy

·  HR Risk Policy

The Committee noted that the Charter Institute of Public Finance Accountants (CIPFA) guidance on Audit Committees recommended that Audit Committees review the governance arrangements of council owned trading companies.  The report submitted provided detail of how CMH and its subsidiaries had complied with the GGA, which included:

·  Adherence to the Group Governance Agreement

·  Completion of statutory accounts and the audit of the accounts for the year ended 31^st March 2025

·  Reporting to the Coventry Shareholder Committee;

·  Internal Audit Review – Management of Conflicts of Interest

·  Annual Procurement Reporting

·  Board Performance Reviews.

RESOLVED that, the Audit and Procurement Committee:

1.  Considered the Compliance to the Group Governance Agreement for 2024/25, as detailed in the report submitted.

2.  Confirmed that there were no comments or recommendations to the Coventry Shareholder Committee arising from the Audit and Procurement Committee’s consideration of the report.

Report of the Chief Executive

The Audit and Procurement Committee considered a report of the Chief Executive, regarding complaints to the Local Government and Social Care Ombudsman 2024/25.

The Committee noted that the report had also been considered by the Cabinet Member for Policy and Leadership at his meeting held on 12^th November 2025 (Minute 3/25 refers) and would also be considered by the Ethics Committee at its meeting scheduled for 8^th January 2026.

The Local Government and Social Care Ombudsman (LGSCO) was the final stage for complaints about Councils, all adult social care providers (including care homes and home care agencies) and some other organisations providing local public services. It was a free service that investigated complaints in a fair and independent way and provided a means of redress to individuals for injustice caused by unfair treatment or service failure.

Coventry City Council’s Complaints Policy sets out how individual members of the public could complain to the Council, as well as how the Council would handle their compliments, comments and complaints. The Council also informed individuals of their rights to contact the LGSCO if they were not happy with the Council’s decision once they had exhausted the Council’s complaints process.

The LGSCO issued an annual letter to the Leader and Chief Executive of every Council, summarising the number and trends of complaints dealt with relating to that Council that year. The latest letter, issued on 21^st July 2025, covered complaints to the LGSCO relating to Coventry City Council between April 2024 and March 2025 (2024/25).

The report set out the number, trends and outcomes of complaints to the LGSCO relating to Coventry City Council in 2024/25. It focused on upheld complaints, service areas with a high number of complaints, compliance with Ombudsman’s recommendations, learning from complaints, comparisons with prior years, and how we compare to other local authorities.

For Coventry City Council, the LGSCO received 101 complaints and enquiries in 2024/25, which was 21 more than the previous year.  The report set out the number of complaints and enquiries received by category at Figure 1.  Of the 101 complaints determined by the LGSCO, 4 were incomplete or invalid; 22 were referred back for local resolution; 53 were closed after initial enquiries and 22 went on to investigation, of which 17 were upheld and 5 were not upheld.

RESOLVED that, the Audit and Procurement Committee:

1.  Considered the Council’s performance in relation to complaints to the LGSCO.

2.  Note the Council’s updated complaints process and guidance.

3.  Reviewed and were assured that the Council takes appropriate actions in response to complaints investigated and where the Council is found to be at fault.

Report of the Director of Law and Governance

The Audit and Procurement Committee considered a report of the Director of Law and Governance that identified issues on which a further report / information had been requested or was outstanding, so that the Committee were aware of them and could manage their progress.

Appendix 1 to the report provided details of issues where reports had been requested to a meeting along with the anticipated date for consideration of the matter.

Appendix 2 of the report provided details of items where information had been requested outside the formal meeting.

RESOLVED that the Audit and Procurement Committee notes the Outstanding Issues report and its Appendices.

Report of the Director of Law and Governance

The Audit and Procurement Committee considered a report of the Director of Law and Governance that detailed the Work Programme of scheduled to be considered by the Committee during the Municipal Year 2025/26.

RESOLVED that the Audit and Procurement Committee notes the Work Programme for 2025/26.

There were no other items of public business.

Report of the Director of Law and Governance

(Listing Officer: J Newman, email: Julie.newman@coventry.gov.uk)

The Audit and Procurement Committee considered a report of the Director of Law and Governance that sought approval of a severance package which had occurred due to changes in the Procurement Service required to achieve both its statutory obligations and enhanced service provision to the Council.

Part 2I of the Council’s constitution required that any severance package for an employee of the Council which exceeds £100,000 should be determined by the Audit and Procurement Committee.  The calculation of the value of an exit package included the costs to the Authority as well as payments / benefits to the employee.

RESOLVED that the Audit and Procurement Committee approves the severance payment on early retirement as calculated.

There were no other items of private business.