Agenda and draft minutes

There were none.

The record of the meeting held on 12 May 2026 was agreed by the Sub Committee and signed by the Chairperson as correct.

Disclosable pecuniary interests

There were none.

Other significant interests (OSIs)

There were none.

Other interests

There were none.</AI3>

The Head of Internal Audit & Counter Fraud Shared Service (Chief Audit Executive) introduced the report which sought to provide assurance over the governance arrangements in place at Medway Norse Ltd, by presenting the outcomes of the governance self-assessment undertaken by the company against the Local Partnerships Local Authority Company Review Guidance (2023), and the results of the subsequent independent validation carried out by Internal Audit.

The validation had identified evidence that a number of governance arrangements were in place, including Articles of Association, governance structures, financial monitoring arrangements, risk registers and policies relating to staff conduct and whistleblowing. However, in a number of areas insufficient supporting evidence was provided to enable Internal Audit to independently validate the assertions made within the self-assessment.

As a result, whilst the company had described governance arrangements that were intended to align with recognised good practice, Internal Audit had only been able to provide limited assurance over their effectiveness.

The Partnership Director, Medway Norse Ltd acknowledged the findings of the report and confirmed that he was content with its conclusions. He explained that, whilst the information requested should have been relatively straightforward to obtain, some supporting evidence held centrally within Norse Group had not been provided within the required timescales. He reported that Norse Group had recently appointed a new Compliance Officer whose initial priority would be to address the outstanding matters and provide the information required. The Head of Internal Audit & Counter Fraud Shared Service (Chief Audit Executive) confirmed that he would be able to revisit the validation process and determine whether the outstanding areas could be signed off.

The Chairperson welcomed the commitment to resolving the outstanding matters and emphasised the importance of receiving the required information as soon as possible, rather than waiting for a future meeting.

Reasons

To ensure the Council maintains effective oversight and assurance over its local authority trading company in line with best practice.

To strengthen governance arrangements and mitigate risks identified through independent validation.

This report updated the Sub Committee on progress, performance, risk, budget and contract status relating to the operation of the joint venture between April and June 2026.

Exempt Appendices A and B to the report provided further information in respect of the Medway Norse Performance Update (MN Q4 Report), and the Medway Norse Risk Register status report, which the Sub Committee considered and discussed.

The Partnership Director, Medway Norse Ltd, provided an update on workforce development initiatives, including the recruitment of apprentices to support succession planning and the continued development of school placement opportunities. The Sub Committee was also advised that partnership working with the Prison Service continued to progress positively, with encouraging feedback received from both staff and the Prison Service.

The Sub Committee discussed key performance indicators and service pressures, and took the opportunity to make some queries about littering especially along highways. The distinction between the Shareholder Board, Client Liaison Board and wider Joint Venture governance arrangements was also discussed, with concerns raised regarding governance clarity and ongoing strategic review work.

The Sub Committee were advised that audited accounts remained on target for completion in October. It was agreed that a separate meeting between relevant officers be arranged to discuss the financial and performance information required by this Sub Committee moving forwards.

In relation to the risk register, the Sub Committee discussed ongoing fuel-related risks and the budgeted fuel rebate.

Reasons

The Cabinet Sub Committee should satisfy itself with  progress, performance, risk, budget and contract status relating to the operation of joint venture.