Social Value Ideas for Tees Valley Combined Authority

Finance control weaknesses

External audit reported a disclaimer opinion again and extended the significant weakness to cover finance team capacity and capability. The committee heard that work on restatements and system correct…

“So page six sets out the financial statements and we expect to issue a disclaimer opinion on the financial statements again for 2425. Um as we talked …”

Account timetable and reporting

A detailed timetable was agreed for the 2024/25 accounts, including public inspection from 1 July 2025 and audited statements by 30 November 2025. Officers also committed to weekly auditor meetings an…

“The third is recommending the authority sets out a clear timetable off the back of that for production of the 2425 statement of accounts. The includin…”

Accept external audit recommendations

The cabinet formally accepted the external auditors’ recommendations and the associated action plan. This creates a governance requirement to strengthen finance capacity, improve public inspection arr…

“So, I think formalities. Do you have any apologies for absence? Should all share the business board? I don't think there are any others. Do any decora…”

Budget changes and reserves

Cabinet approved the Q2 budget changes, including moving £2.3m of business growth fund from revenue to capital, and correcting accounting treatment for an £8m+ underspend and airport interest income. …

“Um, so I'll take it as red. Um, as we talked about this morning, finances on an improvement journey. Um, we are well on the way on that journey now. I…”

Draft budget for consultation

Cabinet approved a draft budget for consultation ahead of final budget setting in March. The discussion confirmed the statutory need to consult, use scrutiny, and bring a final budget back to cabinet …

“"within the CBCA constitution um we are required to present a draft budget for approval for the next general functions and these are separate from the…”

Finance system and staffing strain

External audit described major issues with historic finance records, spreadsheet-based working papers, missing handovers, and a flat finance structure. Officers said they are rebuilding the ledger, re…

“Um so so obviously we're not meeting the stat back stop date. That is not great. Um so I'll leave with that one. Um and we I would say we we did every…”

2025/26 accounts show surplus

The 2025/26 draft accounts reported a £30.4 million surplus, driven mainly by capital grants received but not yet used. Officers explained that this translated into an increase in general reserves of …

“So the net impact of these adjustments is reflected in the overall surplus on provision of services of which is uh shown in the statement for 2526 and…”

Finance team capacity gap

The auditors identified insufficient finance team capacity to support internal and external audit work and statutory deadlines. Members pressed for an explanation of the pressure, and officers said de…

“Um, so the report is to seek acceptance of the recommendations under section 24 schedule 72 of local audit in the account act. Um that's for receive a…”

Final budget and reserves set

Cabinet considered the final budget position for 2026/27, including a forecast surplus, transfers into reserves, and the use of specific reserves for election costs and devolution. Members also discus…

“So I think you know the most important things what's happened since the draft budget. We have the public consultation. Uh the responses to the public …”

Finance capacity investment

Management said extra technical finance resources have already been brought in, with more support planned for January, to complete restatements and rebuild the finance function. The authority is also …

“So, we've had additional resources in um well from June actually, but now from October as well. These are expert technical people whose bread and butt…”

£204k interim leadership cost

The cabinet paper set out the cost of the interim arrangements for up to 12 months at £204,000, plus agency fees charged by the specialist recruiters. The funding proposal is to offset this extra spen…

“Finally, in terms of the cost, so you'll see in the report, the cost um of the intimate arrangements for up to 12 months, and we may not need them for…”

Best value improvement plan endorsed

The committee considered and agreed the draft Tees Valley Combined Authority organisation improvement plan responding to the best value notice. The plan will go to cabinet for approval, with the commi…

“So, uh the recommendations for for this um committee is that we note the update in respect to the tease valley combined authority best value notice th…”

Contract procedure rules updated

The committee reviewed updated Contract Procedure Rules to align with the Procurement Act 2023 and strengthen transparency, value for money, accountability, social value and economic growth. The rules…

“Thank you Joe. Thanks for the update there. Any questions? Council you thank you. >> Uh there it's just one thing I think you need a correction to the…”

Best value notice response

Members discussed the government's recent non-statutory best value notice and the need to develop an improvement plan within three months. The plan will be member-informed, monitored over 12 months, a…

“So, you'll be aware if you've seen the letter, it's a it's a non-staty best value notice um which would be reviewed after 12 months. Um the letter mak…”

Best value improvement plan

The authority has received a best value notice and must prepare an improvement plan, seek member agreement, and submit it to the Secretary of State within three months of the letter. A dedicated team …

“Yeah, I just thought it'd be appropriate because you know the best value notice has been issued. Um, and obviously we've it was issued at a time where…”

Permanent recruitment timeline

Members agreed that the interim appointments should bridge to permanent recruitment, with the process for business solutions and infrastructure directors starting in September and returning in Decembe…

“Um both candidates offer significant experience and expertise and I believe are exactly what we need in terms of supporting the organization on its im…”

Best Value Notice still unresolved

Members discussed the authority’s Best Value Notice and clarified that it has not formally been extended or lifted; the decision is still awaited from MHCLG. Officers explained that the notice remains…

“I've also been exploring the improvement board um in trying to understand its workings um as it's been very different to my experience with improvemen…”

Constitution refresh and scrutiny reform

A revised constitution is being prepared, with engagement sessions planned for this committee and audit and governance, and cabinet consideration delayed until November. The changes will include updat…

“What I intend to do um because what you're being asked to do is obviously note the uh the constitutional amendments um as part of this report that's b…”

Interim governance support and recruitment

Cabinet approved an interim monitoring officer arrangement for up to six months and the retention of consultancy support to help deliver governance improvement work. The report stated this would incre…

“"The first recommendation in the paper is seeking cabinet approval to appoint Janette as in monitoring officer for up to 6 months. Um you'll see in th…”

Interim section 73 officer appointed

Cabinet approved the appointment of Alan as the new interim section 73 officer. This was treated as a standalone recommendation before moving on to the remaining appointments.

“So on um not break down entirely, we'll take recommendation A is to appoint Alan as the new interim section 73 officer. Um so if we can just take that…”

Strengthen member induction and conduct

Internal audit found governance weaknesses around member recruitment, role descriptions, induction, code of conduct sign-up, and registers of interest. Management accepted the recommendations and said…

“Key points arising from this were there wasn't a defined recruitment process for cabinet or it subcommittees. Role descriptions were also not document…”