Agenda, decisions and minutes

To receive apologies for absence.

Apologies were received from Councillors Huw Rowlands, Meryl Roberts and Richard Glyn Roberts.

Following the death of Cllr Rob Triggs, the Chair took the opportunity to express her condolences to his family. It was noted that Rob was a current member of the Governance and Audit Committee, and his contribution to the Committee and Council had been invaluable.

The Chair also took the opportunity to express her condolences to the family of the late Sharon Warnes (former Committee Member and former Council Officer) who was a friend, a respectful and conscientious person – her background in Local Authority work was invaluable; she would be greatly missed.

Condolences were expressed to Cllr Angela Russell and her family following the recent loss of her husband and she was welcomed back to the Committee.

It was reported, that following an interview process and the Full Council's approval on 3 July 2025, three new Lay Members were welcomed to the Committee - Mr Dewi Lewis, Dr Peter Barnes and Mr Paul Millar-Mills.

To receive any declaration of personal interest.

None to note

To note any items which are urgent business in the opinion of the Chairman so they may be considered.

None to note

The Chairman shall propose that the minutes of the meeting of this committee, held on 22^nd May 2025, be signed as a true record.

The Chair accepted the minutes of the previous meetings of this committee held on 22 May 2025 as a true record.

To consider the report and offer comments

DECISION:

·        To accept the contents of the report.

Submitted - a report outlining how the Council's departments had responded to the decisions of the Governance and Audit Committee so that Members could be assured that their decisions were being addressed. It was noted that the report gave Members an opportunity to consider the decision made with the intention of removing the item / decision when the action had been completed.

The members thanked the officer for the report

RESOLVED

·        To accept the contents of the report.

·       To consider the Draft Annual Governance Statement that appears in the appendix

·       Challenge the Head of Finance on the risk scores that have been identified, and the narrative that explains the justification for the score

·       Consider the action plan contained in the draft Annual Governance Statement

·       Approve the Statement and recommend that the Council Leader and Chief Executive sign it

DECISION:

·        To accept the (draft) Annual Governance Statement

·        To accept the (draft) Annual Governance Statement Action Plan.

·        To approve the Statement, and recommend that the Council Leader and Chief Executive sign it.

Note:

·        Amend the current Finance risk score from 20 to 15 in the Welsh version of the report, point 4.2

·        The context of the 'culture' risk refers to the fudamental principles of Ffordd Gwynedd

·        Request for further information to ensure that arrangements are in place to improe services

·        Request for the Council Tax Collection Rates report to highlight the housing premium

The Statement was presented by the Head of Finance Department. He explained that the Statement, although not part of the accounts, was a statutory document which needed to be published with the accounts. In accordance with the Accounts and Audit (Wales) Regulations and the CIPFA Code of Practice, all Local Authorities were required ensure that a statement of internal management was in place and that the management system was reviewed at least once a year. It was reported that the Chief Executive and the Council Leader were required to sign the statement, although the Audit and Governance Committee's approval was needed.

Some background was given to the statement which was based on the CIPFA / SOLACE Framework published in 2016 and identified 7 core principles for good governance which were then further broken down into sub-principles. It was highlighted that the Governance Arrangement Assessment Group, led by the Chief Executive, had considered these principles and sub-principles and had created a Governance Risk Register, which was part of the Council's Corporate Risk Register. Risks had been identified in 24 different areas of governance, identifying the controls that the Council had in place to mitigate these risks.

It was reported that there were four types of risks and that each risk had departmental ownership; the Group had concluded that there were 0 areas of very high risks, 6 high risk areas, 9 areas of medium risk and 9 low risk areas. It was accepted that although there were 6 high risk areas, the Group was aware of the work that needed to be done to reduce these risks.

In terms of adjustments, it was expressed that Finance's current risk score had been reduced from 20 to 15. It was reiterated that an update on previous years' actions would be reported in Cyngor Gwynedd’s Annual Performance Report and Self-Assessment 2024/25 at the October 2025 meeting.

Members expressed their thanks for the report.

Observations by Members and responses from Officers:

In response to a question about the lack of detail of the risks, it was noted that a more detailed expenditure report would be submitted to the Committee in October, and that this was an attempt to summarise issues to comply with the requirements of the Accounts and Audit Regulations for Wales.

In response to an observation about the low number of staff (Staff Voice Survey) and residents (the National Resident Survey) who had responded to these two surveys and what was being done to encourage more responses in the future, it was noted that although the number of responses to the National Resident Survey appeared to be very low, it compared well with the number of responses in the past. It was reiterated that, with the Survey also being a national one, responses could be compared by Local Authority, and of the nine Local Authorities that took part in the survey (the first of its kind in Wales), during 2024/25, Gwynedd's rate was among the highest. However, it was accepted that there was  ...  view the full minutes text for item 6.

To receive and note the Council’s Statement of Accounts (subject to audit) for 2024/25.

DECISION:

To accept and note the Council’s Statement of Accounts (subject to audit) for 2024/25.

Note:

Request more information about the FMG Morgan Trust Fund

The Assistant Head of Finance Department - Accountancy and Pensions  explained that the accounts had been completed and released for audit by Audit Wales, the Council's external auditors, since mid-June. It was noted that there was a further extension this year in the statutory timetable for the audit of the accounts, with a view to completing the audit and approving the accounts at the committee meeting held on 13 November 2025. 

The content of the report was reported upon explaining that six sets of accounts for 2023/24 were being completed: 

1.     Cyngor Gwynedd  

2.     Gwynedd Pension Fund  

3.     GwE (substantially sized joint committee and therefore Full Statements had been prepared) 

4.     North Wales Ambition Board (substantially-sized joint committee and therefore Full Statements had been prepared) 

5.     Gwynedd Harbours and  

6.     North Wales Corporate Joint Committee  

Members were reminded that the end of year financial position for 2024/25 had been submitted to the Committee on 21 May in the form of a simple outturn report, but that the Statement of Accounts, which was for external and governance purposes, had to be completed in the CIPFA standard format. It now appeared as a lengthy and technically complex document.

Reference was made to the Narrative Report that provided information about the Accounts and the vision and priorities of Gwynedd, the Financial Strategy and the financial performance measures. Members were guided through the report and details were provided on some elements: 

·       Summary of capital expenditure. Expenditure amounted to £85 million during the year compared to £57 million in the previous year. 

·       The main financial statements included Income and Expenditure Statement, Balance Sheet, Cash-flow etc. 

·       Movement in Reserves Statement which was an important statement and summarised the Council's financial position. It was highlighted that the Council's general balances were £7.9 million at the end of March 2025, namely the same level as March 2024 and March 2023.

·       Reserves highlighted an increase in the £102 million funds at the end of March 2024 to £111 million by the end of March 2024. 

·       School balances where there was a steady reduction in school balances which had fallen from £12 million at the end of March 2023, to £8.5 million by the end of March 2024 and £8 million by the end of 2025 which highlighted a picture that was nearer to pre-Covid balance levels. It was explained that this was the general picture in Wales as school balances had been high due to a number of grants provided in light of Covid. 

·       Earmarked Reserves including analysis of the £111 million reserves  - capital reserves, the Council Plan/Transformation reserve, supporting the financial strategy reserve and the Council's Tax Premium reserve.

·       Reference was made to Note 15 - Property, Plant and Equipment which presented an analysis per category: land and buildings, vehicles, plant and equipment etc. Capital Commitments which included the Abermaw Viaduct Gardens and capital works on Our Lady's School, Bangor and Ysgol Bontnewydd and Tywyn. Also, Development at Coed Mawr Bangor. 

·       Note 22 Provisions relating to  ...  view the full minutes text for item 7.

To consider the contents of the report, offer comments and amendments, and approve the Annual Report

DECISION:

To accept the report and approve the Annual Report

Note: Budget Setting. Remove bullet point 28 prior to the submission of the final report to the Full Council, 2 October 2025

A report was submitted by the Chair of the Committee in response to CIPFA guidance which stated that 'the committee should prepare an annual report which provides assurance to all those responsible for governance that it is delivering its purpose and can demonstrate impact'. The report covered the Committee's work over 2024/25 and highlighted how the Committee had fulfilled its statutory duties and added value to Cyngor Gwynedd governance arrangements.

The members thanked the officer for the report

During the discussion, the following matters were raised: 

·        It was pleasing to see that the empty Lay Member seats had been filled

·        A suggestion of holding a face-to-face meeting in the future that would give the members the opportunity to get to know each other better – perhaps a training day

·        A suggestion for lay members to introduce themselves at the next meeting – a brief introduction to their background

·        That Members' contribution and attendance were very good

·        A suggestion to remove the comments for setting the 2025/26 budget – whilst they did highlight a discussion at a meeting, it was considered that they may create confusion in the context of this report.

RESOLVED

To accept the report and approve the Annual Report

Note: Budget Setting. Remove bullet point 28 prior to the submission of the final report to the Full Council, 2 October 2025

To consider and receive the report

DECISION:

To accept the report

A report was submitted by the Investment Manager on the actual results of the Council's treasury management during 2024/25, against the strategy approved by the Full Council on 7 March 2025. It was reported that it had been a very busy and prosperous year for the Council's treasury management activity as the activity had remained within the constraints originally set. It was confirmed that there had been no defaults by institutions in which the
Council had invested money with.

It was reported that £2.5m in interest had been received on investments, which was lower than the £2.7m included in the budget because the Bank of England's rate fell from 5.25% to 4.5% during the year.

On 31 March 2025, the Council was in a very strong position with net investments, which had resulted from a high level of investments and operational capital. This included the funds of the Ambition Board and the Pension Fund. It was reiterated that the lending activity had been very quiet in the year with only loan repayments taking place.

It was reported that, in the context of investment activities, the Council has continued to invest with Banks and Building Societies, Local Authorities, Financial Market Funds, Debt Management Office and Pooled Funds, which was consistent with the type of investments that have been made for a number of years now. It was noted that the pooled funds were mid/long-term investments which brought in a very good income level, and with the Council's funding levels healthy.

In the context of the compliance report and indicators, it was reported that all activities had complied in full with the CIPFA code of practice and the Council's treasury management strategy - this was good news and showed that there was robust management of the funding.

The members thanked the officer for the report

RESOLVED

To accept the report and note the information

1.     To consider and accept the Audit Wales work programme for Q1

2.     To consider the Strategic Management of Balances and Reserves - Audit Wales report

DECISION:

·        To accept the Audit Wales Work Programme Quarter 1

·        To accept the Wales Report – Strategic Management of Balances and Reserves

Carwyn Rees, Lora Gwawr and Sioned Owen from Audit Wales were welcomed to the meeting to present the report

Submitted - a quarterly update (up to 30 June 2025) on the work programme and timetable of Audit Wales. A discussion was held on the financial audit and local performance audit work, highlighting that the Annual Report would be published in December 2025.

The members thanked the officers for the report.

In response to a question about how Audit Wales prioritised its work, it was noted that they were completing the work for the Auditor General for Wales ensuring that Councils had arrangements in place to deliver services that offered value for money.

REPORT ON STRATEGIC MANAGEMENT OF BALANCES AND RESERVES

Submitted - an audit report and recommendation on how the Council managed reserves focusing on governance arrangements, risk management, financial reporting and how these funds were used strategically and supported long-term stability.

The work had been completed during May and June 2025 detailing year-end figures for 2024/25. The officers were thanked for their support with the audit at a busy time when closing the accounts.

It was concluded that the Council's funds were in a healthy position and there was assurance that arrangements were in place to get the best benefit. Reference was made to the same recommendation made to strengthen the existing arrangements through the adoption of a Reserves Strategy.

In response to the audit, the Head of Finance Department noted that management's response had been completed following discussions internally and with Audit Wales. He agreed with the same recommendation.

The members expressed their thanks for the report. It was noted that the reserves had been a great help over the last few years. It was agreed there was a need to set a direction by adopting a strategy to ensure clarity on the use of reserves.

RESOLVED

·        To accept the Audit Wales Quarter 1 Work Programme

·        To accept the Audit Wales Report – Strategic Management of Balances and Reserves

To consider and accept the report and make any comments or recommendations on the complaints procedure in doing so.

To accept the report and note the information

Note: Check whether social housing complaints are part of the complaints process

Submitted - a report by the Head of the Corporate Services Department setting out the Ombudsman for Wales' observations on the Council's arrangements and performance in relation to dealing with complaints and service improvements during 2024/25 highlighting successes, challenges and developments. Members were reminded that the Committee had a statutory requirement to ensure that the Council had effective arrangements in place to deal with complaints. It was reiterated that there had been no change in the procedure or the Concerns and Complaints Policy during 2024/2025, and therefore, the content of the Ombudsman's letter was based on the Policy adopted by the Council in 2021.

In addition, it was noted that the report, in response to a request from the Committee, contained more information on the corporate complaints procedure which excluded complaints in the area of Care, Education, Employment and Byw’n Iach. It was noted that a new Customer Care scheme had been adopted in early Summer 2025 as part of the Ffordd Gwynedd Plan work following a rigorous consultation process. The training and awareness raising of the new Customer Care Scheme would not only be a way of reminding officers of the complaints procedure across the Council, but would also improve the service for residents and reduce the number of complaints.

It was reported that the aim of the procedure would be to make the submission of a complaint as easy as possible and to ensure a transparent, open and convenient procedure. Step one would be an informal step that would be resolved immediately, and step 2 would be a formal stage where there would be a specific order and time for the response. It was reiterated that receiving complaints was a means of learning lessons with an officer gathering all the information and collaborating with the appropriate services with a view to seeking continuous improvement. A report on the performance of these services would be submitted to Cabinet twice a year.

Members expressed their thanks for the report and the service was commended for their compliance with the requirements of the Act. The situation was considered to be a very satisfactory one.

During the discussion, the following matters were raised: 

·        Were complaints about social housing part of this process?

·        It was important to learn lessons from the complaints procedure

·        Complaints led to learning and problem solving

·        That the report was a positive one - thanks to the information gathering team

·        The information gave the Committee a better understanding of the field

In response to a question about the meaning of 'intervention rate', it was noted that this was a reference to complaints where the Ombudsman had intervened, which involved further investigations.

In response to a question about the Planning field complaints rate (28% which was much higher than the other services) and what lessons were being learned here, it was noted that these were the complaints that had reached the Ombudsman. It was accepted that the planning service was receiving a high number of complaints which may indicate  ...  view the full minutes text for item 11.

To consider and support the proposed amendments to the Officers’ Scheme of Delegation relating to the acquisition and disposal of land and recommends that the Full Council approve the amendments

DECISION:

To accept the report supporting proposed amendments to the Officers' Scheme of Delegation relating to the acquisition and disposal of land and recommends that the Full Council approve the amendments.

Submitted - a report by the Monitoring Officer highlighting the need to amend the Delegation Scheme due to significant changes in property value and the nature of Cyngor Gwynedd’s land negotiations. It was considered that the current provision was also significantly outdated and that this was an opportunity to refine the meaning of some complex aspects of the field.

Attention was drawn to the intention of facilitating the process of acquiring or disposing of lands or buildings and to conditions and restrictions on the exercise of delegated powers.

The members thanked the officer for the report

RESOLVED

To accept the report supporting proposed amendments to the Officers' Scheme of Delegation relating to the acquisition and disposal of land and recommends that the Full Council approve the amendments.

To consider the work programme

DECISION:

To accept the work programme for October 2025 – September 2026

Submitted - a forward programme of items for the Committee's meetings until September 2026.

RESOLVED:

To accept the work programme for October 2025 – September 2026