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Portsmouth City Borough Council
Councillors: 42
Wards: 14
Committees: 37
Meetings (2026): 11
Meetings (2025): 117

Meeting

Governance & Audit & Standards Committee - Portsmouth City

Meeting Times
Scheduled Time
Start:
Monday, 24th November 2025
5:00 PM
End:
Monday, 24th November 2025
9:00 PM
Meeting Status
Status:
Confirmed
Date:
24 Nov 2025
Location:
The Executive Meeting Room - Third Floor, The Guildhall, Portsmouth
Meeting Attendees
Councillor Graham Heaney photo
Standing Deputy
Deputy Group Leader
Councillor Graham Heaney

Labour

Present, as substitute

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Councillor Mark Jeffery photo
Standing Deputy
Councillor Mark Jeffery

Liberal Democrat

Not required

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Councillor Abdul Kadir photo
Standing Deputy
Deputy Lord Mayor
Councillor Abdul Kadir

Liberal Democrat

Not required

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Councillor George Madgwick photo
Standing Deputy
Group Leader
Councillor George Madgwick

Portsmouth Independents Party

Not required

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Councillor Benedict Swann photo
Standing Deputy
Councillor Benedict Swann

Conservative

Not required

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Councillor Stuart Brown photo
Vice-Chair
Councillor Stuart Brown

Liberal Democrat

Present, as expected

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Councillor Russell Simpson photo
Committee Member
Deputy Group Leader
Councillor Russell Simpson

Portsmouth Independents Party

Present, as expected

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Councillor Simon Bosher photo
Standing Deputy
Group Leader
Councillor Simon Bosher

Conservative

Not required

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Councillor Hannah Brent photo
Standing Deputy
Councillor Hannah Brent

Conservative

Not required

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Councillor Ian Holder photo
Chair
Councillor Ian Holder

Liberal Democrat

Present, as expected

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Councillor Spencer Gardner photo
Committee Member
Councillor Spencer Gardner

Conservative

Apologies

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Councillor Suzy Horton photo
Committee Member
Councillor Suzy Horton

Liberal Democrat

Present, as expected

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Councillor Judith Smyth photo
Committee Member
Councillor Judith Smyth

Labour

Apologies

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Councillor Jason Fazackarley photo
Standing Deputy
Councillor Jason Fazackarley

Liberal Democrat

Not required

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Agenda
1 Apologies for Absence
Minutes Apologies for absence had been received from Councillor Spencer Gardner and Councillor Judith Smyth.

Councillor Graham Heaney was in attendance as standing deputy for Councillor Judith Smyth.
2 Declarations of Members' Interests
Minutes Cllr Ian Holder declared a personal interest in all items, the nature of the interesting being that his wife was a Personal Advisor working within the Children, Families and Education Directorate at Portsmouth City Council.
3 Minutes of the meeting held on 17 September 2025
RECOMMENDED that the minutes of the meeting held on 17 September 2025 be approved and signed by the Chair as a correct record.
Attachments:
Minutes The minutes of the previous meeting held on 17 September 2025 were agreed and signed as an accurate record.
4 Portsmouth City Council Audit Progress Report Year ended 31 March 2025
Purpose

The report summarises the status of the audit for the committee to consider. Further progress up to the date of the meeting will be provided verbally, along with the remaining steps to the issue of the final audit opinion.

Recommendation

This item is for comment and noting only.
Attachments:
Minutes Kelly Gates (Manager) from Ernst & Young was in attendance and introduced the external auditor's progress report in respect of the 2024/25 audit.

She explained the significant risks and the risks of material misstatement detailed within the report and confirmed that the majority of the audit work was either ongoing or had been completed with no issues identified. In respect of the significant risks around the valuation of the Lakeside Complex and investment property, land and buildings she advised that all the required information from the external valuer had now been received. This audit work had now significantly progressed, with only two assets with outstanding queries.

Audit work was ongoing with management at PCC in respect of Risk of Material Misstatement 4 'Other PPE Valuations (Excluding Lakeside and EUV/FV)', as was audit work around pension liability as a result of the actuary detecting errors in the original IAS 19 assessment, which had not impacted on the balance of the council.

In respect of Value for Money, detailed work had been undertaken with one significant weakness found, the self-referral to the Regulator of Social Housing and subsequent regulatory judgement. More detail in re3spect of this would be included within the auditor's final report.

In response to questions, it was confirmed:

· That the £30m adjustment in respect of PPE had resulted from a change in RICS guidance in valuations which had come into effect in October 2023. When the next valuation had occurred, the assets had been revalued using the new methodology, but the previous year had not been revalued because the change in guidance had been deemed to be a change in accounting practice rather than accounting policy. Such changes in guidance were not annual and therefore it was not predicted that the issue would reoccur on a regular basis.

· In respect of a missed asset, based upon the information that had been provided, the council's Asset Register was accurate. In addition, asset valuation and the Asset Register formed part of the Internal Audit Plan for the current year.

RESOLVED that the committee NOTED the update report.
5 Treasury Management Mid-Year Review 2025/26
Purpose

The purpose of the report is to inform members and the wider community of the Council’s Treasury Management position, i.e. its borrowing and cash investments at 30 September 2025 and of the risks attached to that position.

Whilst the Council has a portfolio of investment properties and some equity shares which were acquired through the capital programme; these do not in themselves form part of the treasury management function.

Recommendations

It is recommended that:

(i) the Council's Treasury Management activities have remained within the Treasury Management Policy 2025/26 in the period up to 30 September 2025; and

(ii) the actual Treasury Management indicators as at 30 September 2025 set out in Appendix A be noted
Minutes Helen Klemm, Technical and Financial Planning Finance Manager, introduced the report, which informed members of the Council’s Treasury Management position at 30 September 2025 and of the risks attached to that position.

She advised that there had been no breaches of the council's Treasury Management Policy with no new borrowing.

The committee was pleased to note that the council was utilising less than two thirds of its borrowing limits.

RESOLVED that the Governance & Audit & Standards Committee NOTED:

(i) that the Council's Treasury Management activities have remained within the Treasury Management Policy 2025/26 in the period up to 30 September 2025; and

(ii) the actual Treasury Management indicators at 30 September 2025 set out in Appendix A.
6 Risk and Assurance Management Policy
Purpose

The report presents the council's Risk and Assurance Management Policy to the Governance and Audit and Standards Committee for approval.

Recommendation

The Governance and Audit and Standards Committee is asked to approve the attached Risk and Assurance Management Policy.
Minutes Kelly Nash, Corporate Performance Manager, introduced the report, which presented the council's Risk and Assurance Management Policy to the Governance and Audit and Standards Committee for approval.

RESOLVED that the Governance and Audit and Standards Committee APPROVED the Risk and Assurance Management Policy.
7 Internal Audit Performance Status Report to 4th November 2025
Purpose

The purpose of this report is to update the Governance and Audit and Standards Committee on the Internal Audit Performance for 20225/26 to 4 November 2025 against the Annual Audit Plan, highlight areas of concern and areas where assurance can be given on the internal control framework.

Recommendations

It is recommended that Members note the Audit Performance for 2025-26 to 4 November 2025.
Minutes Paul Somerset, Deputy Chief Internal Auditor, introduced the report which updated on the internal audit performance for 2025/26 to 4 November 2025 against the Annual Audit Plan. He confirmed that the audit was on track to be completed within the agreed timescales.

In response to a question, there was no current audit in respect of the effectiveness of the council's e-learning software, however an audit on this could be considered in a future year.

The committee was pleased to learn that high risks from previous reports had reduced.

RESOLVED that the committee was NOTED the Audit Performance for 2025-26 to 4 November 2025.
8 Protocol for determining the Main Opposition Group in the event of equal political group sizes
Purpose

To agree a protocol for determining the main opposition group in the event of equal political group sizes.

Recommendation

It is recommended that the Governance & Audit & Standards Committee:

(i) considers the options detailed in paragraph four of this report;

(ii) recommends that Council adopts either one of the listed options or an alternative protocol (to be confirmed at the 24 November 2025 Governance & Audit & Standards Committee); and

(iii) subject to the adoption of (ii) recommends to Council that any resulting consequential changes to accommodate the resolution be made to the council's constitution.
Attachments:
Minutes The committee considered the report of the Senior Local Democracy Officer and discussed the merits of the various options.

Option 4 was proposed by Cllr Graham Heaney and seconded by Cllr Stuart Brown.

Following a vote, 2 members of the committee voted for option 4, 1 member voted against, and 2 members abstained from voting.

It was therefore RESOLVED that the Governance & Audit & Standards Committee:

(i) recommends that Council adopts option 4 of the report; and

(ii) that any resulting consequential changes to accommodate the resolution be made to the council's constitution.
9 Broadening Member Eligibility for Initial Filtering Panels
Purpose

This report seeks the Committee's approval for expanding eligibility of all members of Portsmouth City Council to sit on member complaints Initial Filtering Panels. Currently, only members of the Governance & Audit & Standards Committee may sit on these panels. Following the committee's previous decision not to disapply political proportionality, broadening the available members to all councillors, would improve timely consideration of complaints whilst retaining, as far as is reasonably practicable, political proportionality.

Recommendations

(i) That the Committee considers approving expanding the pool of members eligible to sit on Initial Filtering Panels, to all members of the Council.

(ii) That subject to Committee's considerations, that the committee approve delegated authority to the City Solicitor to make any consequential policy and procedural document changes.
Minutes Helen Dickeson, Deputy City Solicitor, introduced the report which sought the Committee's approval for expanding eligibility of all members of Portsmouth City Council to sit on member complaints Initial Filtering Panels.

In response to a question, the Deputy City Solicitor confirmed that there was no legal requirement for Initial Filtering Panels to only be comprised of Governance & Audit & Standards Committee members.

RESOLVED that the Committee APPROVED:

(i) the expanding of the pool of members eligible to sit on Initial Filtering Panel to all members of the Council; and

(ii) that delegated authority be given to the City Solicitor to make any consequential policy and procedural document changes.
10 Compliance with Gifts & Hospitality Protocol
Purpose

The purpose of the report is to update Members on any issues regarding compliance with Gifts & Hospitality Protocol and to advise on remedies.

Recommendations

It is recommended that:

(i) The Committee considers whether or not to make any recommendations for change; and

(ii) In the absence of any changes, the report is noted.
Minutes Helen Dickeson, Deputy City Solicitor, introduced the report which updated the committee on any issues regarding compliance with the Gifts & Hospitality Protocol and to advise on remedies.

The committee noted that the existing policy had last been updated in 2020 and consequently questioned whether the thresholds for declaring gifts and hospitality remained appropriate.

Whilst the committee was not minded to amend the policy at the present time, it requested that a report be considered at a future meeting which contained benchmarking data in respect of inflation figures since the current thresholds had been agreed in 2020.

RESOLVED that:

(i) The committee requested that a report containing information on the inflationary increases since the current thresholds were agreed be considered at a future meeting to allow the committee to determine whether they remained appropriate; and

(ii) In the absence of any changes, the report be noted.
11 Exclusion of Press and Public
In view of the contents of the appendices to the following item on the agenda the Committee is RECOMMENDED to adopt the following motion:

“That, under the provisions of Section 100A of the Local Government Act, 1972 as amended by the Local Government (Access to Information) Act, 1985, the press and public be excluded for the consideration of the following item on the grounds that the appendices to the report contains information defined as exempt in Part 1 of Schedule 12A to the Local Government Act, 1972" The public interest in maintaining the exemption must outweigh the public interest in disclosing the information. Under the Local Authorities (Executive Arrangements) (Meetings and Access to Information) England Regulations 2012, regulation 5, the reasons for exemption of the listed appendices are shown below. (NB The exempt/confidential committee papers on the agenda will contain information which is commercially, legally or personally sensitive and should not be divulged to third parties.

Members are reminded of standing order restrictions on the disclosure of exempt information and are asked to dispose of exempt documentation as confidential waste at the conclusion of the meeting.

Item Exemption Para No.*

12. Procurement Management Information 3

(Exempt Appendix 3)

*3. Information relating to the financial or business affairs of any particular person (including the authority holding that information.
Minutes The Chair advised that proceedings would be kept open until such time that the committee wished to discuss the information contained within exempt appendix 3 to the following report:

· Procurement Management Information

At the conclusion of the consideration of the non-exempt report and appendices, the resolution to move into exempt session to consider exempt appendix 3 was passed because the committee had a question in relation to the information contained within it.
12 Procurement Management Information
Purpose

The purpose of the report is to provide procurement performance reports and supporting evidence to the committee in order that the committee may assess the council's performance in procuring contracts for goods, works and services on a legally compliant, value for money basis.

Recommendation

This report is for noting.
Minutes Richard Lock, Assistant Director (Procurement), introduced the report which provided evidence to allow the committee to evaluate the extent that Portsmouth City Council was producing contracts for goods, works and services in a legally compliant value for money basis.

He detailed the three sections of the report, which were Spend Compliance, High Value Direct Awards and Key Performance Indicators.

The committee was very reassured at the high percentage of spend compliance and the KPI scores, 99% of which were between 2 and 5. The committee noted that only three out of 336 contracts were not performing as well as expected.

RESOLVED that the committee NOTED the update report.
Previous Meetings
Meeting

18th Feb 2026

Governance & Audit & Standards Committee

Meeting

21st Jan 2026

Governance & Audit & Standards Committee

Meeting

24th Nov 2025

Governance & Audit & Standards Committee

Meeting

17th Sep 2025

Governance & Audit & Standards Committee

Meeting

9th Jul 2025

Governance & Audit & Standards Committee

Meeting

5th Mar 2025

Governance & Audit & Standards Committee

Meeting

20th Feb 2025

Governance & Audit & Standards Committee

Meeting

27th Nov 2024

Governance & Audit & Standards Committee

Meeting

2nd Oct 2024

Governance & Audit & Standards Committee

Meeting

10th Jul 2024

Governance & Audit & Standards Committee

Future Meetings
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