Agenda and draft minutes

Apologies for absence were received from Councillors Lynne Fletcher (with Councillor David Lewis as nominated substitute) and Wendy Gibbs (with Councillor Mark Johnstone as nominated substitute).

All Members present are required to declare, at this point in the meeting or as soon as possible thereafter:

(i)         any disclosable pecuniary interests and / or

(ii)        other interests arising under the Code of Conduct

in respect of any item(s) of business being considered at this meeting.

No declarations of interest were made by Members in respect of any items of business considered at the meeting.

The Committee is asked to confirm as a true record the Minutes of the Meeting of the Committee held on 06 July 2026 (attached) and to authorise the Chair to sign them.

The Committee confirmed as a true record the minutes of the meeting of the Committee held on 06 July 2026 and authorised the Chair to sign them.

This report presents early sight of both the Finance and the Procurement and Contract sections of the new Constitution for East Surrey and invites comments on the draft and principles, ahead of finalising and bringing back to this Committee for final consideration.

Section 9P of the Local Government Act 2000 requires every local authority to prepare, maintain, and keep up to date a formal constitution. This document controls how the local council operates, makes decisions, and handles its governance. The sections relating to Finance and to Procurement and Contracts set out:

·         How the Council governs the manner in which the financial activity is conducted and ensures its financial interests are safeguarded; and

·         How the Council authorises and manages expenditure and resulting commercial contracts with other organisations.

It is therefore essential that East Surrey Council has an agreed Constitution in place in time for vesting day on 1st April 2027, and that the detail of the finance and the procurement and contract elements of that Constitution are agreed in time to establish required process and controls ahead of vesting day.

The Committee received a report presenting early sight of both the Finance and the Procurement and Contract sections of the new Constitution for East Surrey and inviting comments on the draft and principles ahead of finalising and bringing back to the Committee for final consideration.

The Interim Chief Finance Officer introduced the draft Finance Procedure Rules, seen at Annex 1 to the report, as the framework through which East Surrey Council would manage public money, establish financial responsibilities and accountability, maintain compliance with legislation, protect against fraud and error, and ensure best value for money. She explained that the draft procedure rules had been prepared following a review of the financial procedures used across the current 12 Surrey authorities, with further work underway to compare the draft to the rules used by existing Unitary Authorities. She explained that financial thresholds and references to the future East Surrey committee and staff structure would be updated as the information became available.

The Interim Chief Finance Officer explained that Annex 2 provided a draft structure for the East Surrey Procurement and Contract Procedure Rules. The full document would set the full contract and procurement lifecycle, from identification of a requirement and initial business case through to procurement and contract award, contract management, performance monitoring, expiry and renewal. She stated that Annex 3 set out proposed thresholds, routes to market and delegations of authority for contract award, informed by an ongoing benchmarking exercise against comparable unitary councils.

Members were reminded that they were not being asked to approve the documents at this stage – final versions would be brought back to the Committee in November before being recommended through the Constitution Committee to the Shadow Authority.

The following matters were considered:

a)            Annex 1: Draft Financial Procedure Rules. The Committee generally welcomed the draft and acknowledged the work undertaken to bring together procedures from multiple authorities. However, Members identified a number of areas where they believed further detail would strengthen the document.

a.    Reporting of Financial Non-Compliance. Members queried whether instances of financial non-compliance would automatically be reported to the Audit and Governance Committee. Concerns were expressed that reliance on officer judgement regarding where reports were directed could potentially limit Audit & Governance Committee oversight. Officers agreed to include provision for all breaches to be reported to the Audit & Governance Committee, whilst also clarifying reporting arrangements to other relevant committees where required.

b.    Definition of “Substantial” Non-Compliance. Members noted that the draft referred to substantial non-compliance but did not define what constituted a substantial breach. It was suggested that clear criteria and thresholds would be required to ensure consistency and transparency. Officers agreed that such definitions would be incorporated into the draft procedure rules alongside the future work on financial decision thresholds.

c.    Inter-Authority and Hosted Services Arrangements. Members highlighted that, post vesting day, a number of services were expected initially to be hosted by East or West Surrey Councils, covered by an inter-authority agreement. Concern was raised that the draft procedure rules did not  ...  view the full minutes text for item 10.

For the Audit & Governance Committee to consider and adopt a ‘Speak Up Policy’ (to include whistleblowing arrangements) for the shadow period and for East Surrey Council beyond Vesting Day on 1 April 2027. The policy will provide a safe route for staff, contractors and others for the reporting of serious wrongdoing or risks within the organisation.

The Committee received a report to consider and adopt a ‘Speak Up Policy’ (including whistleblowing arrangements) for the shadow period and for East Surrey Council beyond Vesting Day on 1 April 2027.

The policy was intended to provide a safe and accessible route for staff, contractors and others to report concerns about wrongdoing or risks within the organisation. Officers emphasised that the document had been framed as a broader "Speak Up" policy rather than solely a whistleblowing policy in order to support a positive organisational culture where concerns could be raised early and channelled through the most appropriate process.

Members supported the principles behind the policy but expressed a view that the draft required substantial further development before adoption. Officers advised that if Members were not comfortable approving the policy in its current form, it could be revised and brought back to the Committee’s November meeting.

The following matters were considered:

a)            Confidentiality Protections. Members considered that confidentiality should be assumed wherever possible, rather than relying on individuals specifically requesting it. Concerns were raised that some people might be deterred from raising concerns if they were uncertain how their identity would be protected. It was suggested that clearer processes be developed to demonstrate how confidentiality would be maintained.

b)            Fair Treatment and Protection of Individuals. Members considered that the draft contained strong statements of intent but lacked sufficient detail on how fairness, independence and objectivity would be delivered in practice. It was requested that clearer safeguards be put in place to reassure individuals that their concerns would be handled impartially.

c)            Assessment and Triage of Concerns. It was suggested that concerns should be subject to a structured initial assessment process, including the identification of immediate risks, escalation requirements and investigation timelines. Members considered this particularly important for ensuring consistency and preventing delays in addressing serious matters.

d)            Raising Concerns and Accessibility. Members considered that the process for raising concerns needed to be simple, clear and accessible. Suggestions included the creation of a dedicated reporting contact point, a confidential helpline, Speak Up champions roles within the organisation, and access to independent support for individuals who wished to raise concerns but required assistance in doing so.

e)            Clarity of Reporting Routes. It was felt that the multiple reporting routes described in the draft could be confusing for users. They suggested simplifying the process and potentially introducing a decision matrix to help staff identify the most appropriate route for the concern.

f)             Communication with Those Raising Concerns. Members considered the importance of keeping individuals informed throughout investigations. They argued that complainants should receive updates on progress, outcomes and any findings, even where confidentiality considerations limited the information that could be shared.

g)            Duty to Speak Up. Some Members suggested that the Council should consider not only providing opportunities to raise concerns but also creating an expectation that employees have a responsibility to report issues where appropriate.

h)            Reporting Frequency to the Committee. It was questioned whether annual reporting on the policy would be  ...  view the full minutes text for item 11.

This report requests that the East Surrey Shadow Audit and Governance Committee consider and endorses the proposed process for the appointment of two Independent Co-Opted Members for the remainder of the Shadow Period and thereafter for a four-year term until 31 March 2031.

The Committee received a report requesting that the East Surrey Shadow Audit and Governance Committee consider and endorse the proposed process for the appointment of two Independent Co-Opted Members for the remainder of the Shadow Period and thereafter for a four-year term until 31 March 2031.

The report explained that CIPFA guidance recommends at least one independent member on local authority audit committees and that the Government intends to make such appointments a statutory requirement. Independent members would provide additional expertise, continuity beyond the electoral cycle, enhanced scrutiny and independent perspectives on governance, audit and financial matters. The Shadow Constitution already provided for such appointments.

The following matters were considered:

a)            Value of Independent Oversight. Members acknowledged the benefits that independent members could bring to the Committee, in the form of external expertise, alternate perspectives and additional scrutiny that would complement the experience of councillors on the Committee.

b)            Appointments Extending Beyond Vesting Day. In response to a query from the Committee, Officers confirmed that Independent Member appointments made prior to vesting day were intended to be sustained beyond vesting day, through to the proposed date of March 2031.

c)            Independence and Impartiality of Recruitment. Officers provided Members with assurance that the recruitment process would be objective and transparent, particularly given that successful candidates would ultimately scrutinise the Council's governance arrangements.

d)            Recruitment and Advertising. Officers outlined plans to maximise the pool of candidates by advertising the role via public advert,  the Council’s website and social media, as well as through more specialist recruitment channels.

e)            Practical Benefits of Appointing Two Members. Members considered that two independent members would provide a greater breadth of experience and expertise than a single appointment. Having two members would also reduce the risk of meetings proceeding without any independent representation if one of the members was unavailable.

f)             Independent Member Presence at Meetings. In response to a query from the Committee, Officers confirmed that, should independent member(s) be appointed to the Committee, it would not be a requirement for any of those independent members to be present at meetings of the Committee in order for business to be transacted.

Councillor Fran Fish nominated Councillor Eva Ferlez for appointment to the recruitment panel – this was seconded by Councillor Barry Maguire. Councillor Mark Johnston nominated the Chair of the Audit and Governance Committee for appointment to the Panel – this was seconded by Councillor Alan Parker. Subsequently, the Committee unanimously agreed to appoint Councillor Eva Ferlez and the Chair of the Audit and Governance Committee (Councillor Tim Snuggs) to the Panel.

Following consideration, the Committee resolved (13 for, 1 against) to:

(1)          Approve the recruitment and selection process to appoint two co-opted independent members to the Audit and Governance Committee for the remainder of the Shadow Period and thereafter for a further four-year term until 31 March 2031.

The Committee is requested to note its forward work programme for 2026-27.

The Committee received its forward work programme for 2026-27.

Members noted that the programme should be updated to include:

a)            The final Financial Procedure Rules and Procurement and Contract Procedure Rules scheduled for consideration in November 2026.

b)            The revised Speak Up Policy returning to the Committee in November 2026.

The Committee noted the Forward Work Programme, subject to the inclusion of the additional items identified during the meeting.