The meeting included for discussion an update on Southwark Council's progress in addressing the recommendations of the August 2024 BDO cyber security audit, progress reports by its internal and external auditors, and a range of financial and governance issues.

Cyber Security Update

A report included for discussion provided an update on the progress in implementing the recommendations made in the August 2024 BDO ¹ Cyber Security review.

The report describes how Southwark Council has opted to work with the Ministry of Housing, Communities and Local Government (MHCLG) as an early adopter of the National Cyber Security Centre (NCSC) Cyber Assessment Framework (CAF) to assess its cyber resilience. It also describes the process Southwark Council is using to identify and mitigate cyber security risks, including the Information Governance and Security Group and the SIRO Board, which reviews new and existing cyber risks.

The report lists eight specific recommendations made in the BDO audit and the status of their implementation.

Members' Enquiries Update

The Committee was scheduled to receive an update on the progress of the Members' Enquiries Improvement Programme. The programme was initiated in March 2024 in response to a Corporate Peer Review that highlighted Members’ concerns over the timeliness and quality of Members’ Enquiries responses.

The report included for discussion describes several improvements that have been made. For example, a new reporting mechanism is providing staff and Directors with an overview of Members’ enquiries, a dedicated Member Review Team has been established to resolve complex multi-service cases, and second acknowledgement letters now include the name and department of the officer handling the enquiry.

Treasury Management Strategy and Capital Strategy 2025-26

This report included for discussion outlines how Southwark Council planned to manage its finances in 2025-26.

The report describes the uncertain economic outlook for the coming year, and anticipates that inflation will fall within The Bank of England's 2% target range and that interest rates will remain stable or be gradually reduced.

The document outlines Southwark Council’s approach to treasury management ², through which it manages its cash flow, borrowing and investments. In particular, the report focuses on how borrowing will be required to finance the delivery of the Council’s capital programme, and how it is anticipated that the majority of its investments will be in low volatility Net Asset Value Money Market Funds (MMFs).

The report also details Southwark Council’s proposed approach to its capital programme ³. In particular, the report describes the principles behind the programme, how the programme will be governed, how it aligns with the Council’s key strategic document, the Council Delivery Plan, and how it relates to Southwark Council’s approach to treasury management and asset management.

Internal Audit Progress Report November 2024

This report included for discussion provided an update on the progress that has been made against the 2024-25 internal audit plan, and a summary of the audits completed since the last meeting of the committee on Thursday 5 September 2024.

The report included for discussion provides a summary of each of the audits, describes how Southwark Council has performed and describes any recommendations made by the auditors. It also provides an update on the internal audit programme for schools, and the progress of the 2025-26 internal audit plan.

The report describes how the Council has a recommendation implementation rate of 92.2%, which is a marginal decrease compared to the 92.8% reported in September 2024.

Progress Report on the Audit of the Statement of Accounts 2023/24

This report included for discussion provided an update on the progress made in the audit of Southwark Council’s 2023-24 financial statements and Value for Money audit. The Committee was scheduled to also receive an update on the timeline for the approval of the audited accounts.

The report included for discussion describes how the external audit was substantially progressed, with no significant changes to the draft Statement of Accounts that were presented to the Committee at its meeting on Thursday 5 September 2024. It was anticipated that the final audited accounts and audit findings reports would be presented to the Committee at its meeting on Monday 3 February 2025.

Update: Corporate Anti-Fraud Team and the Special Investigations Team 2024-25 Q2

This report included for discussion provided an update on the work of the Corporate Anti-Fraud Team (CAFT) and the Special Investigations Team (SIT) for the period 1 April 2024 to 30 September 2024.

The report included for discussion describes the activities undertaken by both teams in this period, including:

• Corporate anti-fraud investigations
• Homelessness and Housing waiting lists investigations
• Right to Buy checks
• Blue Badge fraud and misuse
• Housing tenancy fraud investigations
• The National Fraud Initiative data matching exercise.

Review of the Members’ Code of Conduct Update

The Committee was scheduled to receive an update on the review of the Members’ Code of Conduct.

The report included for discussion describes how the current Code of Conduct was adopted in 2011, and how the Local Government Association (LGA) issued a new model code of conduct for consideration by councils in 2021.

The document describes how a Member/Officer Working Group was established in September 2023 to consider whether the current code should change. The report also outlines the timeline for the adoption of the new Code of Conduct, with it anticipated to be implemented from the beginning of the 2025-26 municipal year.

Review of Communications Protocol

The Committee was scheduled to receive a revised Communications Protocol for its consideration, and to consider whether to recommend the Protocol to the Council Assembly.

The report included for discussion describes how the Communications Protocol was introduced in May 2004, and how the Audit, Governance and Standards Committee have a role of advising the Council on its revision.

The document lists the key issues for consideration, which included:

• the statutory framework for publicity by local authorities and the Code of Recommended Practice on Local Authority Publicity
• publicity of individual councillors
• visits by government and shadow ministers and other politicians
• visits by local and other Members of Parliament
• promotional publicity
• publicity of matters going before the Cabinet, Council Assembly or any committee of the Council
• scrutiny
• contact with the press
• press releases
• social media
• publicity during periods of heightened sensitivity
• the role of the communications unit
• obligations on officers in relation to documents being prepared for public consumption
• the role of the Mayor
• key spokespeople
• correspondence
• postage
• emails.

Independent Members of the Audit, Governance and Standards (Civic Awards) Sub-Committee: Recommendations

The committee were scheduled to consider and note the criteria for inviting individuals to join the Audit, Governance and Standards (Civic Awards) Sub-Committee (the Civic Awards Sub-Committee) for evaluating nominations for the 2024 Civic Awards, and to consider any recommendations they would have for individuals or groups to be invited.

The report included for discussion describes how the Southwark Civic Awards scheme was initiated in 1997 to recognise exceptional contributions to community life by individuals and organisations in the Borough, and how in March each year, the Civic Awards Sub-Committee is convened to review nominations for awards and decide the recipients for the year.

The document explains that up to four individuals from outside of the Council are invited to join the sub-committee to demonstrate transparency and to include a wider range of views, and outlines the criteria for selecting these ‘lay’ individuals:

• Individuals should have a good understanding of the Borough and its diverse communities, be familiar with the Borough’s Voluntary and Community Sector (VCS), be able to understand and evaluate nominations for Civic Awards, and not be a nominee or represent an organisation that is nominated
• As a group, the independent members should have a gender balance, reflect the cultural and ethnic diversity of the Borough, and include at least one person under 25.