Agenda and draft minutes

Apologies were shared as listed above. The Chair welcomed the newly appointed Service Director for Finance (S 151 Officer).

There were no declarations of interest stated.

To consider the minutes of the previous meeting(s)

Resolved:                 That the minutes of the previous meeting held on 29^th September 2025 be agreed as a true and accurate record.

The Deputy Leader / Portfolio Holder for Finance, Town Centres and Growth introduced the report on the final Statement of Accounts, External Audit Annual Report and Audit Findings Report for the financial year 2024-25.

The External Auditor (KMPG) reminded members of the procedure in relation to the finalisation and publication of the documents.

Cllr Lewis wondered whether the Council’s financial resilience and reserves were sufficient considering the strategic risks that had been outlined.

The External Auditor (KMPG) advised that the audit was looking at processes and arrangements in place to manage risks and that the figures themselves were determined the Council.

Cllr Lewis also asked if assurance could be given that the Council had the right capacity and governance in place to deliver the capital projects in 2025-26 without further slippage.

The Service Director for Finance (S 151 Officer) responded that a review was currently being undertaken and the situation was much better than that of the previous year. While some delays had to be factored in the projects were on their way to be completed.

Cllr Stubbs enquired about the steps that could be taken to manage the volatility of the collection fund and accurate forecasting and budgeting for the future.

The Service Director for Finance (S 151 Officer) advised that the Council Tax collection fund for 2024/25 was as accurate as it would ever get and that the nature of business rates made that part of the collection fund volatile.

A surplus largely due to a reduction in the appeals provision had been recorded the previous year. This was due to the end of the cycle re-valuations. The surplus that had been generated was paid into a business rates volatility reserve for which a balance was being retained to address volatility and to offset any deficit in future periods.

Cllr Stubbs asked about the governance and risk management processes, including the measures in place to monitor and mitigate the risk as well as the role of the Financial Efficiency Board.

The Service Director for Finance (S 151 Officer) responded that the incomes losses were addressed through both a proportion of the General Fund Reserve as well as an allowance in the MTFS (Medium Term Financial Strategy). The situation was improving and the risks decreasing.

Cllr Reece wondered about the implications of the pension scheme surplus and related liability resulting from the asset ceiling adjustment on the long-term financial planning and potential impact on future contributions.

The Service Director for Finance (S 151 Officer) advised that the pension fund was in a significant surplus position and had enabled the Council to reduce its pension contributions.

Cllr Reece asked how the devolution reorganisation would impact the Council’s assets and liabilities.

The Service Director for Finance (S 151 Officer) responded that consultants had been hired and the result of their work would be brought in to Full Council on 19^th November.

Cllr Whieldon wished to acknowledge the progress made since the previous year and thank both auditors and the team  ...  view the full minutes text for item 4.

The Deputy Leader / Portfolio Holder for Finance, Town Centres and Growth introduced the Treasury Management Half Yearly Report in line with the Treasury Management Strategy approved by full Council in February 2025 and as recommended by the CIPFA (Chartered Institute of Public Finance and Accountancy) Code of Practice.

Cllr Stubbs enquired about the Council’s strategy to increase borrowing needs alongside the continuing internal borrowing and short term loans to fund capital programmes.

The Service Director for Finance (S151 Officer) advised that in the medium term the Council would need to borrow externally as well as use internal borrowing which helped to keep the costs down.

Cllr Lewis asked how the Council was preparing to manage potential reductions in investment income.

The Service Director for Finance (S151 Officer) responded that the Council did not currently budget to receive interest income. As borrowing was undertaken interest paid would increase.

Resolved:     That the Treasury Management Half Yearly Report for 2025/26 be received.

Watch the debate here

The Service Director for Legal & Governance (Monitoring Officer) introduced the Corporate Risk Management Report for quarter 2.

Cllr Stubbs asked how the Council was mitigating the financial and reputational risks associated with delayed Town Deal Projects and notably in Kidsgrove.

The Service Director for Legal & Governance (Monitoring Officer) referred to Appendix A of the report and advised that the risk register was the gold standard for managing risks within the Council. There was also an added level of governance in Kidsgrove with the Town Council.

Cllr Reece wondered what financial provisions or contingencies were in place to manage any legal costs arising from third party legal action in reference to Walleys Quarry.

The Service Director for Finances (S151 Officer) responded that there was still money in a reserve to offset any potential legal costs that might incur with no anticipation for that money to be reallocated anywhere else.

Cllr Lewis asked what assurance could be provided that procurement and contractor appointment processes were robust enough to prevent further delays or failures in project deliveries.

The Service Director for Legal & Governance (Monitoring Officer) advised that the Council had an excellent procurement team working closely and sharing best practice with other authorities in the county along with robust regimes ensuring compliance with procurement processes. On occasions when procurement processes could not be applied, WARN notices were issued as a way of transparency and explanations were provided as required.

Cllr Whieldon expressed her satisfaction at the traffic light system used for risk management which was simple and effective.

Resolved:     1. That there were currently NO risks that are more than 6 months overdue for a review up to end of Q2 2025/26, be noted.

2. That that there had been NO risk level increases, be noted.

3. That there had been 5 new risks added, be noted.

4. That the Corporate Risk Register profile be noted.

5. That officers be advised of any individual risk profiles that the Committee would like to scrutinise in more details at its next meeting.

6. That whilst the likelihood of a risk materialising may be mitigated, the likely impacts may not change, be noted.

Watch the debate here

The Audit Manager (Staffordshire County Council) presented the update report on the Internal Audit Progress for quarter 2.

Cllr Lewis asked what assurance could be provided that the outstanding audit recommendations particularly number 64 not yet implemented were being actively monitored and would be addressed within a reasonable time frame.

The Audit Manager responded that this was part of the internal management. A portal was sending notifications to officers twice a month and the progress made was tracked when meeting with the Service Director for Finance (S151 Officer) with dashboards being currently developed.

Cllr Reece referred to the Cyber Incident Preparedness and Response Effectiveness Final Internal Audit Report and asked what steps were being taken to strengthen the council's cyber resilience and assure a timely implementation of the recommendations that had been made.

The Service Director for Finance (S151 Officer) advised that this would be discussed as a confidential item.

Cllr Stubbs wondered how confident officers felt about the Council's financial controls’ robustness and the identification and mitigation of any emerging risks within the financial year.

The Audit Manager responded that the field work was now complete and reports were up-to-date.

Resolved:     1. That the progress against the 2025/26 Internal Audit Plan be noted.

2. That the progress on the implementation of audit recommendations be noted.

Watch the debate here

Resolved:     That the work programme be noted.

Watch the debate here

There was no urgent business.

To resolve that the public be excluded from the meeting during consideration of the following reports, because it is likely that there will be disclosure of exempt information as defined in the paragraphs of Part 1 of Schedule 12A (as amended) of the Local Government Act 1972

Resolved:     That the public be excluded from the meeting during consideration of the following reports, because it was likely that there would be disclosure of exempt information as defined in the paragraphs of Part 1 of Schedule 12A (as amended) of the Local Government Act 1972.

Resolved:     That the content of the confidential appendix be noted.