Councillor Regisford sent apologies.  

Councillor Harley sent apologies and attended online.  

To approve as a true and accurate record the minutes of the meeting held on 21 October 2025.

Councillor Smith noted that at the last meeting of the Committee, a report on fire risk assessments had been requested and was expected at this meeting. The Internal Auditor (GD) explained that the Fire Risk Safety Review has been issued to managers, and a response is awaited; once completed, the report will be issued to the Committee.  

The Committee resolved to approve the minutes of the meeting held on 21 October 2025 as a true and accurate record.  

Public addresses relating to matters of business for this agenda, up to five minutes is available for each public address.

The request to speak accompanied by the full text of the address must be received by the Director of Law, Governance and Strategy by 5.00 pm on Thursday 22 January 2026.

There were no addresses. 

Councillor addresses relating to matters of business for this agenda, up to five minutes is available for each address.

The request should be received by the Director of Law, Governance and Strategy by 5.00 pm on Thursday 22 January 2026.

There were no addresses. 

Report of: The Group Finance Director

Purpose of the report: To present the outcome of the 2024/2025 KPMG external review of Housing Benefit Expenditure.

Recommendation(s): That the Committee resolves to:

1.    Note the report.

The Group Finance Director had submitted a report to present the outcome of the 2024/2025 KPMG external review of Housing Benefit Expenditure. The Local Tax & Benefit Service Delivery Manager was present to respond to questions.  

The Local Tax & Benefit Service Delivery Manager informed the Committee of the progress made on housing benefits service expenditure following the previous audit, including a £36m spend. Members heard that there had been no subsidy loss to the council in terms of claims, and the council also fell under the threshold for LA error. The success of the previous year was emphasised and the sustained progress this year was noted as part of an improvement across the whole service.  

In response to a query from the Chair, the Local Tax & Benefit Service Delivery Manager explained that the Department for Work and Pensions has updated their approach; a summary of the new process for identifying errors was provided to the Committee.  

Councillor Ottino asked what could be done to encourage landlords to become registered providers, noting the financial burden which can be placed on the council when this does not occur. The Local Tax & Benefit Service Delivery Manager explained that a financial burden presents when the council is required to pay the full subsidy allowance to charities, but the government does not provide 100% of this amount to the council. To encourage more landlords to become registered providers, the Committee heard that commissioning sites are actively encouraged, however the difficulties faced by housing associations when becoming landlords were also acknowledged.   

Councillor Smith noted the loss due to supported accommodation claims in the city, which needs to be addressed, and the positive results within the audit, including the embedding of staff training and improved morale. The Local Tax & Benefit Service Delivery Manager agreed, noted the high rents in Oxford, and emphasised the need to work with partners such as the NHS and the Home Office who have obligations to ensure people are housed and supported; this would ensure that the entire cost does not fall on the council.  

Councillor Smith suggested that the Committee could have been provided sight of the KPMG report when it was first received in November to allow more time for review.  

The Chair thanked the Local Tax & Benefit Service Delivery Manager and praised the improvements made within the service.  

The Committee reviewed and noted the report.  

Report of: The Group Finance Director

Purpose of the report: To set the “Council Tax Base” for 2026-27 as required by section 33 of The Local Government Finance Act 1992 and the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012.

Recommendation(s): That the Committee resolves to:

1.    Agree that the 2026/27 Council Tax Base for the City Council’s area as a whole is set at 48,724.9 (as shown in Appendix 1)

2.    Agree that the projected level of collection is set at 98%

3.    Agree that the tax bases for the Parishes, and for the Unparished Area of the City (as shown in Appendix 2) be set as follows:

That Audit and Governance Committee resolved to:

1.    Agree that the 2026/27 Council Tax Base for the City Council’s area as a whole is set at 48,724.9 (as shown in Appendix 1)

2.    Agree that the projected level of collection is set at 98%

3.    Agree that the tax bases for the Parishes, and for the Unparished Area of the City (as shown in Appendix 2) be set as follows:

The Group Finance Director had submitted a report to set the “Council Tax Base” for 2026-27 as required by section 33 of The Local Government Finance Act 1992 and the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012. The Technical Accountant?was present to respond to questions.  

The Technical Accountant?provided a comprehensive summary of the report, noting that the increases based on the previous year were due to the embedding of the second home premium and the long-term empty premiums.  

Councillor Smith noted that the number of long-term empty properties is increasing substantially and asked how classification of ‘uninhabitable’ is determined and assessed by the council. The Technical Accountant explained that assessment of whether a property is inhabitable occurs through a revenues inspection and declarations from owners. The Local Tax & Benefit Service Delivery Manager confirmed that this can involve a physical visit to confirm reporting from residents.  

In response to queries from Councillor Ottino, it was also explained that the Local Tax and Benefit Service Delivery Team conduct the visits and the Committee learned that in August 2025, a review of all long-term empties and second home premiums was conducted to ensure that the council understood the status of each address and whether it complied with the necessary legislation for various council tax discounts. The Local Tax & Benefit Service Delivery Manager provided comprehensive detail on recent analysis conducted on the matter and noted issues with engagement of owners. 

Councillor Ottino requested that information regarding second homes and empty properties be shared with ward councillors, to which the Local Tax & Benefit Service Delivery Manager committed to circulating addresses, but not details of the owner. The Committee also heard of ongoing efforts, including leafleting, to encourage rental of empty properties in Oxford. 

The Chair queried the nature and number of council tax exemptions relating to charities and the universities in Oxford. The Local Tax & Benefit Service Delivery Manager provided a comprehensive explanation of the exemptions from paying long-term empty premiums, and consideration of business rates. The Committee were also informed of difficulties the council experiences when communicating with the universities and the blocks they place on the council’s use of empty student accommodation. The Local Tax & Benefit Service Delivery Manager emphasised that exemptions cost the council £35m across business rates and council tax charitable relief.  

In response to Councillor Smith, it was confirmed that university enterprises, such as Oxford University Press, also qualify for the exemptions as they are a trading arm of the university.  

The Revenues Service Delivery Manager informed the Committee that currently 5750 of around 60,000 in Oxford qualify as exempt from at least one form of council tax payment.  

In relation to page 42 of the report, Councillor Smith queried whether the addition of 339 properties into the council tax base was a significant rise. The Local Tax & Benefit Service Delivery Manager confirmed that it is, and provided a comprehensive explanation of relevant context, including the lack of land for development in Oxford which encourages  ...  view the full minutes text for item 73.

Report of: The Group Finance Director

Purpose of the report: To update the Audit and Governance Committee on corporate and service risks as of 31 December 2025.

Recommendation(s): That the Committee resolves to:

1.    Review the Risk Management report and note its contents.

The Group Finance Director had submitted a report to update the Audit and Governance Committee on corporate and service risks as of 31 December 2025. The Insurance, Risk Management, and Business Continuity Officer was present to respond to questions.  

The Insurance, Risk Management, and Business Continuity Officer introduced the report and provided a comprehensive summary of the process undertaken by all departments for updating the registers. The Committee were also informed of a correction in relation to table 9 within the report whereby a note of four new risks should read as three. Details surrounding some specific risk examples were also outlined.   

The Chair, in relation to corporate risk 99 titled utilities infrastructure, queried what control the council has over this, and if none, why it remains on the risk register. The Insurance, Risk Management, and Business Continuity Officer explained that although the council has little control over this risk, they can exert influence by bringing pressure where required, for example, when working with local planning authorities and lobbying.  

The Chair also queried service risk 55, titled income target, and asked whether this had not been achieved due to lack of capacity. The Director of Law, Governance and Strategy (Monitoring Officer) explained that the department’s budget is income-driven and therefore control is limited. The Committee heard that income derives from section 106 agreements and prosecutions, for example, which can be unpredictable and intermittent.  

Councillor Ottino queried why the climate change red risk remains on the register when the council have little to no control over this. The Risk Management, and Business Continuity Officer explained that such risks must remain on the register to account for the significant impact they may have should they occur, and to ensure that the council remains cognisant of this. The Committee were assured that relevant discussions are ongoing at CLT in line with the corporate priorities regarding similar risks in order to inform readiness for any locally related catastrophes. A water outage was referenced as an example. The Group Finance Director also supported the risks remaining on the register as means for the council to remain responsive to the potential outcomes of risks.  

Councillor Corais joined the meeting during this item. 

Councillor Smith asked several questions: 

• On page 70, in relation to risks relating to workforce and people, it was asked which team(s) the six apprentices recently employed had been assigned to.  

• On page 71, in relation to the urgent need to review and enforce sign-off processes within the Law, Governance and Strategy directorate, it was asked what progress has been made with this.  

• A comment on the need for a corporate approach to project management across all directorates, as opposed to a service-by-service approach, was requested.  

• It was recommended that cross-party working groups be used for making major decisions within council, as mentioned in the report.  

• In reference to page 75, plans to increase tree capacity were praised.  

• On page 87, in relation to property assets, it was noted that required skills and capacity  ...  view the full minutes text for item 74.

Report of: The Internal Auditor, BDO

Purpose of report: To update the Audit and Governance Committee.

Recommendation(s): That the Committee resolves to:

1.    Notes and discusses the report.

The Internal Auditors had submitted a report to update the Audit and Governance Committee. The Internal Auditor (GD) and the Internal Auditor (JT) were present to respond to questions.  

The Internal Auditor (JT) summarised the report and highlighted the progress made against the audit plan. The Committee heard that the draft fire safety follow-up report was awaiting management comments and progress is ongoing in relation to the fieldwork for audits of the medium-term financial strategy, leisure contracts, and data analytics. The Internal Auditor (JT) also informed the Committee that work is ongoing to plan the remaining two audits relating to cyber security and ODS client and commissioning. Finally, Members understood that the audit plan for 2026/27 is being developed in conversation with the Group Finance Director.  

The Committee considered items 9 and 10 together as follows.  

The Chair commented on the outstanding record of incomplete reports in relation to income generation and GDPR, which had been overdue since the 23/24 audit.  

The Revenues Service Delivery Manager updated the Committee on progress made on the overdue recommendations relating to the use of council payment cards. Members heard that only £615.17 remains outstanding as unapproved spend which relates to only two officers who are currently on long-term sick leave; efforts to find alternative way to approve these transactions is ongoing. Furthermore, the average spend per month is now averaging around £3700. Regarding monitoring and security of payment card usage, the Revenues Service Delivery Manager explained that action is being taken based on the Internal Auditor’s recommendations and that a list of agreed restricted spend is being agreed; this will be reported at the next Committee. In relation to securing accommodation, the Committee were informed that a process is now in place whereby management accountants will pay hotels and accommodation suppliers through invoicing and PO processes, rather than via use of payment cards. As this is a recent change, it will be evident in the reports delivered to the next Committee.  

The Group Finance Director noted his confidence in the Revenues Service Delivery Manager’s actions and ability to act in line with the auditor’s recommendations. In relation to the overdue income generation recommendation, the Committee heard a summary of longstanding issues relating to the procurement of a new asset management system; assurance was provided that this is being actioned urgently and a retender is in progress. The Group Finance Director suggested that relevant service managers be present at the next meeting of the Committee to respond to recommendations relating to property, recruitment, and retention.  

The Internal Auditor (JT) explained that correspondence had been provided by the relevant managers since the publication of the agenda to confirm that recommendations are now completed in relation to recruitment and retention and selective licensing; evidence of this would be presented at the next meeting of the Committee.  

The Chair requested that the Head of People attend the next meeting of the Committee. 

The Director of Law, Governance and Strategy (Monitoring Officer) provided a response in relation to  ...  view the full minutes text for item 75.

Report of: The Internal Auditor, BDO

Purpose of report: To update the Audit and Governance Committee.

Recommendation(s): That the Committee resolves to:

1.    Notes and discusses the report.

The Internal Auditors had submitted a report to?update the Audit and Governance Committee. The Internal Auditor (GD) and the Internal Auditor (JT) were present to respond to questions. 

The content of this report was considered in conjunction with discussions under item 9.  

The Committee reviewed and noted the report. 

The Chair informed the Committee that consideration of items 11 and 12 on the agenda would be swapped.  

Report of: Director of Law, Governance and Strategy (Monitoring Officer)

Purpose of the report: To present the 2024/2025 Annual Governance Statement for approval and to present the refreshed Code of Corporate Governance for approval.

Recommendation(s): That the Committee resolves to:

1.    Approve the Annual Governance Statement for 2024/2025;

2.    Note the action plan appended to the Annual Governance Statement and that progress will reported on in 2026; and;

3.    Delegate authority to the Director of Law, Governance & Strategy to make any typographical changes to the Annual Governance Statement for 2024/25  that may be required before publication on the Council’s website.

The Audit and Governance Committee resolved to:

1.    Approve the Annual Governance Statement for 2024/2025;

2.    Note the action plan appended to the Annual Governance Statement and that progress will reported on in 2026; and;

3.    Delegate authority to the Director of Law, Governance & Strategy to make any typographical changes to the Annual Governance Statement for 2024/25  that may be required before publication on the Council’s website.

The Director of Law, Governance and Strategy (Monitoring Officer) had submitted a report to present the 2024/2025 Annual Governance Statement for approval and to present the refreshed Code of Corporate Governance for approval. The Director of Law, Governance and Strategy (Monitoring Officer) was present to respond to questions. 

The Director of Law, Governance and Strategy (Monitoring Officer) provided a comprehensive summary of the report, noting that it builds on work within the previous year and the refreshed Code of Corporate Governance. The Committee were reminded that the Annual Governance Statement looks back on the previous year and that this report considers significant recent events, including the cyber incident in 2025. The Committee were provided a summary of all the topics considered within the statement, including the future action plan.  

Councillor Smith queried when the Committee could expect to appoint independent members. The Director of Law, Governance and Strategy (Monitoring Officer) committed to discussing this with the new section 151 officer and explained the recruitment processes which have already been completed for independent members on the Standards Committee and Renumeration Panel.  

The Chair asked what governance changes had resulted from the LGA peer review mentioned within the report. The Director of Law, Governance and Strategy (Monitoring Officer) clarified that the peer review did not focus on governance as this was not set as a parameter.  

The Chair proposed, and Councillor Corais seconded, all three recommendations.  

The Audit and Governance Committee resolved to:

1.    Approve the Annual Governance Statement for 2024/2025;

2.    Note the action plan appended to the Annual Governance Statement and that progress will reported on in 2026; and;

3.    Delegate authority to the Director of Law, Governance & Strategy to make any typographical changes to the Annual Governance Statement for 2024/25  that may be required before publication on the Council’s website.

Report of: The Group Finance Director

Purpose of the report: To submit the Council’s draft Statement of Accounts and Letter of Representations to the Committee to obtain delegated authority for approval and authorisation.

Recommendation(s): That the Committee resolves to:

1.    Approve the latest 2024/25 Statement of Accounts as agreed by the Group Finance Director and authorise the Chair of the Committee to sign the Accounts incorporating any further changes arising from the ongoing audit.

2.    Agree that a Letter of Representations for 2024/25 incorporating any statements required by the external auditor arising from the ongoing audit be signed and issued by the Group Finance Director and the Chair of the Audit & Governance Committee to enable the external auditor’s opinion to be issued (paragraphs 14 to 15).

The Audit and Governance Committee resolved to:

1.    Approve the latest 2024/25 Statement of Accounts as agreed by the Group Finance Director and authorise the Chair of the Committee to sign the Accounts incorporating any further changes arising from the ongoing audit.

2.    Agree that a Letter of Representations for 2024/25 incorporating any statements required by the external auditor arising from the ongoing audit be signed and issued by the Group Finance Director and the Chair of the Audit & Governance Committee to enable the external auditor’s opinion to be issued (paragraphs 14 to 15).

The Group Finance Director had submitted a report to outline the council’s draft Statement of Accounts and Letter of Representations to the Committee and to obtain delegated authority for approval and authorisation. The Financial Accounting Manager was present to respond to questions. 

The Financial Accounting Manager provided a comprehensive summary of the report and informed the Committee that the summary of accounts remains subject to change pending the final audit results. The Financial Accounting Manager highlighted several points within the report including changes to the audit requirements resulting in increased capacity needs on both ends, fixed asset suspension, the cyber-attack, and understaffing. The Committee also heard the planned steps which would be taken to move the council out of a disclaimed position. 

The Chair sought to confirm whether a loss of £4.5m had been made following the disposal of fixed assets and specifically queried the nature of these. The Financial Accounting Manager informed the Committee that there was a net loss in the accounts for the disposal of fixed assets due to the normal receipts being netted down by the incorporation of an accounting adjustment relating to the adoption of a new leasing standard (IFRS 16) for 2024/25 whereby a number of assets were written out of the balance sheet and then recognised as leases. 

The Chair also queried the council’s contract with Fusion Leisure and requested an update on the present position. The Group Finance Director confirmed that discussions with Fusion are still ongoing, and they are in the process of paying off their outstanding debt to the council.  

The Chair, in reference to previous discussions regarding registered housing providers, requested further comment in relation to the lobbying that the council has committed to, and the reception this has received. The Group Director noted that the response has not been favourable and provided a narrative description of the relevant government consultation process and ongoing work with the housing team which is seeking to convert non-registered providers in Oxford. The Committee were heard that this is of concern in the future budgets, however, were assured that some loss is offset by recovery of overpaid housing benefits. 

Councillor Harley, in relation to paragraph 7 on page 177, sought clarification on the timeframe mentioned, and asked what the impacts of local government reorganisation may be this. The Financial Accounting Manager clarified that the report referred to the previous financial years from 2023 up to the present and noted that the impacts of LGR could not be speculated on at this stage. It was noted that the process will be determined by national level decisions and may local authorities will experience the changes.  

The Chair proposed, and Councillor Smith seconded, both recommendations.  

The Audit and Governance Committee resolved to:

1.    Approve the latest 2024/25 Statement of Accounts as agreed by the Group Finance Director and authorise the Chair of the Committee to sign the Accounts incorporating any further changes arising from the ongoing audit.

2.    Agree that a Letter of Representations for 2024/25  ...  view the full minutes text for item 78.

Report of: The External Auditor, Ernst & Young

Purpose of report: To update the Audit and Governance Committee.

Recommendation(s): That the Committee resolves to:

1.    Notes and discusses the report.

The External Auditor had submitted a report to?update the Audit and Governance Committee. The External Auditor (AB) was present to respond to questions.  

The External Auditor (AB) provided a comprehensive summary of the report, noting that the audit is ongoing and the report presents the status at this point in time. The Committee heard that since July, the assessment of materiality has been updated which now reflects an increased higher gross expenditure, upon which the draft accounts have been based. Since the report’s publication, the testing of pensions has progressed, and other audits have concluded as listed in appendix A to the report. The External Auditor (AB) also provided a summary of the new government measures which seek to clear the audit backlog; the Committee understood that the reset and recovery process has installed a series of back-stop dates for audits to be completed by which has placed additional pressure on the council and the auditors. Finally, the Committee heard a summary of the report findings and recommendations which focused on capacity constraints and the need to better allocate responsibility within the council for responding to audit queries. Specific emphasis was placed on the contents of page 477 and 478.  

The Group Finance Director responded to the External Auditor’s (AB) summary and noted that the council has experienced a period impacted by decreased capacity and depleted resources within the finance team which directly impacted on efficiencies in closing accounts and producing working papers. The Committee heard that the responsibility is shared across team managers in the council and training is being offered to support cost centre tasks. The Group Finance Director noted that standards have increased in recent months, and close working has taken place with the External Auditors to make the necessary improvements in relation to the disclaimed opinion. The Committee understood that council officers are now required to submit more samples to the External Auditors, and this has been a big undertaking; additional support from the External Auditors was requested with this endeavour.  

The Chair queried the status of vacancies within the finance team at present, to which the Group Finance Director noted that three new officers have been hired, and one vacancy remains. It was noted that temporary resources would be brought in to plug any gaps in the immediate future.  

In response to a comment from the Chair regarding page 478, The Financial Accounting Manager also noted that improvements must be made in relation to the concentration of information in various areas of the council, in order to improve general understanding across the workforce. The Committee heard of measures, including training with management accountants and service manager, which are being taken to support the audit processes.  

Councillor Smith thanked all officers for their open and transparent reflections on the audit results and emphasised that the Committee need to be clear about conclusions given by EY and take the situation seriously.  

At Councillor Smith’s suggestion, the Committee agreed to highlight to the Cabinet members responsible  ...  view the full minutes text for item 79.

The Committee is scheduled to next meet at 6.00pm on 9 April 2026.

The Committee noted the date of the next meeting.