This meeting of Hackney Council's Audit Committee was scheduled to consider a wide range of financial reports, including updates on treasury management and risk, as well as reports on the progress of external audits for the Council and the London Borough of Hackney Pension Fund. The agenda also included a review of Hackney's corporate risk strategy and policy, performance updates, and risk registers for the Chief Executive's Directorate and the Finance and Corporate Resources Directorate.

Auditor’s Annual Reports 2021-22 & 2022-23

The Committee was scheduled to receive the Auditor’s Annual Reports (AAR) for 2021-22 and 2022-23, providing a comprehensive overview of Forvis Mazars' audit activities conducted during those periods. These reports were prepared in accordance with the International Standards of Auditing (ISA) (UK & Ireland) 260, which requires auditors to communicate audit matters with those charged with governance. The 2021-22 AAR details an objection received in relation to the Council's issuing of Penalty Charge Notices (PCNs)¹ for breaching the Mount Pleasant Lane road closure. The AAR indicates that the objection resulted in Forvis Mazars issuing a recommendation that the Council consider apologising for issuing unlawful PCNs and setting up a voluntary refund scheme. According to the AAR, the Council agreed to issue an apology but ultimately chose to issue a bulk refund instead of the voluntary scheme.

A Penalty Charge Notice is a fine issued by a local authority for minor offences, such as parking illegally.

External Audit Completion Report 2023-24

The Committee was scheduled to review a progress report on the audit of the Council and Pension Fund accounts for the financial year ending 31 March 2024. The report indicates that while progress has been made, several audit procedures were still ongoing. The report also mentioned two objections received regarding the accounts, with an update on their details and outcomes expected in a future Audit Completion Report.

Treasury Management Update

The Committee was scheduled to consider an update on the Council's treasury management activities, including an outturn report for 2023/24 and a quarterly update for the period July to September 2024. The report was expected to confirm the Council’s compliance with treasury limits and prudential indicators, and to highlight its approach to managing borrowing and investments in light of the economic climate. The report also included details about the London Energy Efficiency Fund (LEEF) loan, taken out by the Council in July 2014 from the European Investment Bank to finance energy efficiency improvements in social housing. Finally, the report highlighted the recent implementation of a concessionary borrowing rate for local authorities with a Housing Revenue Account (HRA).

Chief Executive’s Directorate Risk Register

The Committee was scheduled to review the Chief Executive's Directorate Risk Register, which details the key risks facing the following service areas:

• Legal, Democratic and Electoral Services
• Policy and Strategic Delivery
• Human Resources and Organisational Development
• Communications and Engagement
• Procurement

The report also included the Council’s definition of risk:

“Risk is the probability of an event occurring and its consequences”

Finance and Corporate Resources Risk Register

The Committee was also scheduled to review the Finance and Corporate Resources Directorate Risk Register, which identifies risks spanning the various divisions of this directorate. The report discussed how the risks were identified, managed, and monitored throughout the financial year and the Council's approach to embedding risk management within its operations. The report notes the increasing impact of external events, such as the cost of living crisis and the fragile economy, on Council objectives and finances. The report also states that:

The Council is currently heading towards a £36 million overspend, which presents a major challenge going forward.

Corporate Risk Strategy and Policy

The Committee was scheduled to consider the recently revised and reviewed Corporate Risk Management Policy and Strategy for approval. The policy details the framework for managing risk within the Council, while the strategy outlines the approach and techniques to be used. It also discusses the Council's risk appetite, defined in the Strategy as:

Risk Appetite refers to the level of risk that an organisation (and within that a service area) would be comfortable to accept in order to reach strategic objectives.

Audit and Anti-Fraud Progress Report to September 2024

The Committee was scheduled to receive a report outlining the progress and performance of the Audit & Anti-Fraud Service to 30 September 2024. The report includes updates on internal audit work conducted, implementation of audit recommendations, and a statistical summary of the Audit Investigation Service's activities. It also included details about the financial benefits realized from various investigations, including those focusing on Tenancy Fraud, No Recourse to Public Funds, and Blue Badge misuse.

Audit Committee Work Programme

The report included a work programme for the remainder of the 2024/25 municipal year and also initial dates for the first two meetings of the following year (2025/26). It outlined the dates of future meetings, specific topics scheduled to be discussed, and the individuals or groups expected to present the information or make decisions on those topics. Notably, the work programme indicated that the Committee would undertake 'Deep Dive' sessions to gain a more comprehensive understanding of certain key topics.