Agenda, decisions and draft minutes

To receive apologies for absence.

Apologies were received from Councillors Dafydd Meurig, Menna Baines, Elfed Wyn ap Elwyn and Wendy Cleaver.

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 9^th October 2025, be signed as a true record.

The Chair accepted the minutes of the previous meeting of this committee held on 9 October 2025 as a true record.

To consider the report and offer comments

·        To accept the contents of the report

Note:

·        Output of Internal Audit 9-10-25 meeting – request to more accurately reflect the Committee's concerns in response to staff breaching statutory regulations in Care Homes

·        Request to include a definite date for the resubmission of reports and updates rather than stating 'in a timely manner'

A report was submitted providing an outline of 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.

In accordance with a request made in a meeting in October 2025, attention was drawn to the population information of Counties used by the Government to set the settlement.

The members thanked the officer for the report

RESOLVED

·        To accept the contents of the report

Note:

·        Output of Internal Audit 09-10-25 meeting – request to more accurately reflect the Committee's concerns in response to staff breaching statutory regulations in Care Homes.

·        request to include a definite date for the resubmission of reports and updates rather than stating 'in a timely manner'.

To submit –

·        Statement of Accounts post-Audit;

·        Audit Wales’ ‘ISA260’ report;

·        Letter of Representation (Appendix 4 – ISA260 Report).

DECISION:

·        To accept and approve the 'ISA260' Report by Audit Wales in respect of Cyngor Gwynedd

·        To accept and approve the Statement of Accounts 2024/25 (post-audit)

·        The Chair of the Committee and the Head of Finance to electronically certify the Letter of Representation

·        To congratulate the officers for their work of securing an unqualified statement

·        To thank Audit Wales for effective collaboration

The report was submitted by the Assistant Head of Finance - Accountancy and Pensions. Members were reminded that conditional accounts on the Gwynedd audit for 2024/25 had already been submitted to the Committee at the meeting in September where the Statement was discussed in detail, drawing attention to the main matters and relevant notes. It was reiterated that the Harbours accounts had also been submitted to the Committee in May, and it was nice to report that there were no adaptations deriving from the Audit, and therefore they did not need to be resubmitted.

It was reported that the accounts had been subject to audit by Audit Wales since the beginning of June and that an unconditional opinion was given on the accounts by the Auditors with a combination of post-audit adaptations and recommendations had been implemented.

Reference was made to four misstatements that had not been corrected, noting that they were not being considered as material, but where relevant, they would be corrected as a part of the 2025/26 accounts.

·        Note 15: Property, Apparatus and Equipment:

1.     Categorisation issue, namely that an item of capital expenditure had been funded from the UK Shared Prosperity Fund (UKSPF), wrongly categorised and treated as an addition to the balance sheet, instead of as revenue spending, funded from capital through statute. It was confirmed that the money was not being questioned.

2.     Relating to a technical matter relating to capital treatment.

3.     That an error in the Cyngor Gwynedd valuation worksheet had led to inconsistencies between the Valuer's valuation worksheets and the figures used to update the register.

These will receive due attention by the 2025-26 accounts.

·        Note 21: Creditors - matter relating to the grant balance treatment and to be corrected for the 2025-26 accounts.

·        Note 17a Financial Instruments and Note 35 IFRS 16 Leases - matters associated with each other where the new requirement on councils in 2024/25 related to leasing. This was the first year in terms of accounting treatment for leases, and therefore the matters to be addressed for the 2025-2026 accounts.

When discussing adjustments to the Statements of Accounts that have changed, attention was drawn to:

·        Note 19 - Cash and Cash Equivalents and the categorisation on 31 March, which related to the payment instruction to the bank on the last day of the year and its treatment. As noted in the Auditor's report, the CIPFA guidelines are restricted for this specific scenario and the change has affected the balance sheet and the cash flow statement.

·        Note 21 - Creditors. Attention was drawn to the change in creditor categorisation between the long-term and short-term for 2024/25 and the previous year, as well as correcting the creditor mis-classification in Debtors and added wording in Note 18a Debtors.

·        Note 35 IFRS 16 Leases - due to new requirements relating to leasing, the format has been adapted to comply with all CIPFA requirements.

·        Note 38 Pension Costs - note simplified as well as improved clarity on the Related Parties note.

It  ...  view the full minutes text for item 6.

To submit –

• The GwE Statement of Accounts post-audit;
• Audit Wales’ ‘ISA260’ report;
• Letter of Representation.

DECISION:

·        To accept and approve the 'ISA260' Report by Audit Wales in respect of Cyngor Gwynedd

·        To accept and approve the GwE Statement of Accounts 2024/25 (post-audit)

Submitted – the report of the Head of Finance, Cyngor Gwynedd, asking the Committee to consider and approve the 2024/25 Statement of Accounts (post-audit), Audit Wales 'ISA260' report and the Representation Letter before authorising the Chair and Head of Finance to authorise the letter electronically.

The Assistant Head of Finance - Accounting and Pensions (Cyngor Gwynedd) explained that Cyngor Gwynedd, as the host Council, had been responsible for undertaking accounting responsibilities and reporting on the financial matters of the GwE Joint Committee. GwE was wound up on 31 May 2025, and as the Joint Committee did not meet after this date, the arrangement decided upon was for the 2024/25 accounts to be submitted to the Governance and Audit Committee for approval. It was reiterated that the accounts for April and May relevant to 2025/26 would also be submitted in due course, as the situation for the year was finalised. It was noted that the accounts had been subject to audit by Audit Wales since the end of June and that the Auditors would give an unqualified opinion on the accounts.

It was reported that there had been no change to the report's main financial statements submitted to the Auditors (the Balance Sheet, Income and Expenditure Statement, Cash Flow Statement or the Movement in Reserves Statement), but there were a few adjustments to the notes supporting the Statement:

·        Note 17b 'Payments to Officers - that there was an adjustment to the figures for two officers.

·        Note 22 Pension Costs - note simplified and shows the Net Pension figures only to facilitate the reader.

·        Note 16 'Cash Flow Statement' - attention was drawn to a category adjustment, although there was no change to the note's bottom line.

In addition, there were a small number of minor narrative adjustments to some of the notes.

On behalf of Audit Wales, Siwan Glyn noted that Audit Wales intended to publish an unqualified opinion on the 2024/25 accounts, reiterating that the accounts provided an accurate and fair picture of the situation, complied with appropriate practices and that Audit Wales worked for a level of 'relevance'. It was reported that the level of relevance was determined to try and acknowledge and correct misstatements that could otherwise mislead those who used the accounts. A relevance level of £199,000 was determined for the 2024/25 audit and threshold misstatements above £10,000 was reported (calculated as 5% relevance). Attention was drawn to a list of the auditor's risks which highlighted how they were addressed as part of the audit. It was reported that no audit risks were found.

In the context of ethical compliance, it was noted that Audit Wales had remained independent, and the Cyngor Gwynedd Finance Team was thanked for their support.

The report was welcomed, and everyone was thanked for their work.

RESOLVED

·        To accept and approve the 'ISA260' Report by Audit Wales in respect of Cyngor Gwynedd

·        To accept and approve the GwE Statement of Accounts 2024/25 (post-audit)

To note the situation and the relevant risks regarding the budgets of the Council and its departments, consider the decisions for the Cabinet and comment as necessary.

DECISION:

·        To accept the report on the end of August 2025 review of the Revenue Budget

·        To note the latest financial position regarding the budgets of each department / service.

Note:

Request for a timetable for the arrangements to restructure the Highways Department and the Environment Department (by the January 2026 meeting)

A report was submitted by the Cabinet Member for Finance asking the committee to scrutinise the situation and relevant risks in relation to the Council's budgets and its departments. It was explained that the report detailed the latest review of the Council's revenue budget for 2025/26, and the projections towards the end of the financial year.

Following the end of August review, it was noted that the projections suggested an overspend of £6.3 million by Council departments, with 75% of it in the adults and children care field. It was explained, following on from a trend in previous years, that there was a substantial overspend in the waste, highways and municipal field also, but an underspend on corporate budgets, which means that this reduces the overspend projections as a whole to £2.5 million.

Attention was drawn to the main issues:

·       Adults, Health and Well-being Department - latest projections suggest that if there are no changes in the actions during the year, there will be a financial deficit of £3.1, by the end of the year. £3 million worth of permanent funding was allocated to the field for 2025/26, but a £1 million worth of savings and cuts had not been achieved to date.

In the context of older people services, an increase was seen in the demand for older people residential care and an unexpected and unusual increase for residential care due to mental health issues; the pressure on the domiciliary care provision also continued.

·       Children and Families Department - project a budgetary deficit of £1.5 million, after giving over £2 million in bids to the department for 2025/26. The main fields facing pressures are out-of-county placement, and the provision for children with disabilities in the Derwen and Hafan y Sêr service.

·       Byw'n Iach – over the past few years, Byw'n Iach has received annual financial support from the Council above the contracted payment of the provider contract, to enable them to sustain their services. It was reported that the financial support continued this year, and the required sum was £219k.

·       Highways, Engineering and YGC Department - a financial deficit of £522k is projected, a reduction was seen in the work being commissioned from external agencies which consequently has a negative income on highways services. In the Municipal Unit, a combination of factors is seen, which includes added pressures on street cleaning and public toilet cleaning staff; income losses are issues in land maintenance and public toilets.

·       Environment Department - a budgetary deficit of £740k is projected, with an annual trend of overspend in the waste collection and recycling field continuing and responsible for £662k of the overspend.

Attention was drawn to considerations on how to fund the costs of safeguarding the Corbett Arms Hotel building in Tywyn (Grade II listed building), which has been a cause for concern for Cyngor Gwynedd and the local community for years as it is in a dangerous structural condition. This meant that the Council had had to act to safeguard and protect the  ...  view the full minutes text for item 8.

To consider the report for information.

DECISION:

To accept the report for information

A report was submitted by the Investment Manager, reporting on the actual results of the Council's treasury management for 2025/26 up to 30 September 2025, against the 2025/26 Treasury Management Strategy approved by the Full Council in March 2025. It was noted that the strategy asked the Investment Manager to report on prudent treasury management indicators every quarter to the Committee.

It was reported that the period had been a very busy one for the Council's treasury management activity and that the position on 31 March 2025 was very strong with the Council in a net investment position of £53m because of the high level of investments and operational capital. This included the North Wales Ambition Board funding.

It was highlighted, during the period, that there was a change to the Council's borrowing level, after repaying a historical loan. It was explained that the loan of £16.2m with Barclays had a maturing date of 2074, but that an offer had been received to repay it early on very favourable terms, which saved long-term interest costs for the Council. Reference was made to other loans held by the Council with the Public Works Loan Board, but there were no advantages from repaying these early at present.  

Attention was drawn to treasury investment activity, noting that the Council continued to invest in banks and building societies, local authorities, money market funds, debt management office and pooled funds and that these were consistent with the type of investments made by the Council for many years now and that the risk metrics and earnings were consistent with other authorities.

It was noted that all activities had fully complied with the CIPFA code of practice and the Council's Treasury Management which was good news and evidenced firm control over the finances. In the period in question, investments were made at a higher level than the approved level for the banks and money market funds, because the Council had a high level of money, and options were scarce. It was reiterated that steps had been taken to ensure that this would not happen in the future by opening more accounts to spread out the money.  

Attention was drawn to the Liability Benchmark, noting that it was an important tool to establish whether the Council was likely to be a long-term external borrower, and therefore shaped the strategic focus and refined decision-making. It was indicated that the Council expected to remain above its benchmark up to 2027 because the Council held reserves, and the cash flow to date had been below the assumptions made when the money had been borrowed. It was also noted that there was no need to borrow in the longer term, based on current projections; nevertheless, it was commented that there may be a need to borrow in the short-term in the near future.

Finally, reference was made to the prudential indicators, and it was reported that there was also full compliance here.

The members thanked the officer for the report.

RESOLVED  ...  view the full minutes text for item 9.

To consider the report, comment on the content and support the operations in place by the Department.

DECISION:

·        To accept the report

·        To support the work and welcome the improvements that have been made in response to the announcement that Cyngor Gwynedd's Tax Collection rates were the lowest in Wales 2024/25

·        To accept that the 182-day lettings threshold has significantly increased the Unit's work

·        To accept that the approval of a Council Tax Reduction Policy under Section 13A(1)(c) of the Local Government Finance Act 1992 by the Cabinet on 11-11-25 responds to situations where support is offered to residents facing exceptional financial hardship or unusual circumstances but a request was made for further consideration as to whether the Policy addressed the situation of the owners of holiday units who have seen significant rises in their tax bills as a result of the increase in the lettings threshold.

Note:

·       To consider the effects of the situation on sustainable tourism and town centre regeneration

·       To model the impact of a potential exclusion policy on the overall performance of the Finance Department

·       A suggestion to consider using the empty properties premium and second homes premium to cover the salaries of staff administering the premium, rather than from the Finance Department's budget

·       Council Tax Reduction Policy Update under Section 13A(1)(c) to be submitted to the Committee in January 2026

In response to a request from the Chair, a joint report was submitted by the Head of Finance and the Assistant Head of Finance - Sustainability and Developments, outlining the length and size of the debt from tax collection and how the Council was operating to address the situation. It was explained that Council Tax collection rates (within the year) in Gwynedd were the lowest in Wales in 2024/25, with 92.9% of the debts collected by the end of the financial year - which equated to £8.2 million in owed taxes.

Reference was made to the collection rates on the different types of accounts for 2024/25 as well as the value of the uncollected debts per category. It appears from the data that the premium on second homes and empty properties affected general collection rates, with the debts on accounts including the premium as well as the basic tax at £3.9m (£3.1m on second homes and £0.8m on empty properties) and the debts on basic Council Tax accounts only, was £4.3m. It was noted that there was a collection rate of 95.09% on the accounts with basic Council Tax only, which was 2.16% higher than the average of 92.93% across all categories.

It was highlighted that administering the Premium also placed serious pressures on the ability of the Taxation Service to achieve its work, representing a huge proportion of the enquiries that the service had to deal with, along with weaknesses in the Service which had contributed to the decline in the collection rate, which included:-

·        E-mail backlog.

·        Delay in sending reminders during the year.

·        Delay before cases were transferred to the enforcement company.

·        Level of resources in the Recovery Team.

It was reported that key steps had been taken and continued to be put in place to strengthen the recovery arrangements. It was noted that a detailed action plan had been prepared and staff (internal arrangements and via an experienced tax agency) had been appointed to complete the work. In addition, a detailed timetable was put in place for sending reminders in 2025/26, delegation arrangements were reviewed so that officers were available to act during the absence of key officers and recovery structures in the Finance Department were reviewed.

It was reiterated that a change in legislation, where self-catering accommodation in Wales was required to be available for 252 days and let for 182 days a year in order to be included on the non-domestic rates list, had affected the collection rates.  In 2024/25, 692 properties were transferred back to Council Tax, with 558 of them returned during the second half of the year. It was noted that many of them were likely to transfer from the non-domestic rates list where taxes were not payable, to a Council Tax band where they needed to pay the basic council tax, and 150% of the Council Tax premium; they were also requests that were being back-dated (some back to April 2023) and as a result, the bills were substantial and therefore  ...  view the full minutes text for item 10.

To note the contents, offer comments thereon and accept the report.

DECISION:

To accept the contents of the report for information

Submitted, for information, an update from Carwyn Rees (Audit Wales) on the latest exercise of the National Fraud Initiative 2024/25 on a national and local level (as at 31-07-25). Attention was drawn to a briefing note which introduced background information about the assessment, explaining that the exercise was held every two years and was a way of preventing and finding fraud by sharing and pairing data electronically. The assessment was completed jointly between Audit Wales and Cyngor Gwynedd Internal Audit, and it was a good opportunity to share good practice, and information that would feed into the national assessment.

The members thanked the officer for the report

RESOLVED

To accept the contents of the report for information

To consider the work programme

DECISION:

·        To accept the work programme until November 2026

·        An update on the Child Practice Review Our Bravery Brought Justice, to be presented at the January 2026 meeting

Submitted - a forward programme of items for the Committee's meetings until October 2026. The Members were reminded that if they wanted to add another item to the forward work programme, for them to propose that by sending an e-mail to the Chair or Head of Finance.

RESOLVED:

·        To accept the work programme until November 2026

·       An update should be presented on the 'Child Practice Review' Our Bravery Brought Justice, to the January 2026 meeting