The report pack for this meeting included updates on external and internal audit work, a review of principal risks, an update on politically restricted positions within the Council, proposed amendments to standing orders for procurement, and a report on recent changes to polling districts and places.

External Audit Completion for 2021/22

The audit completion letter from Forvis Mazars relating to the 2021/22 financial year was scheduled to be presented.

The letter listed a number of adjustments that had been made to the accounts during the audit process. For example:

A change to the technical accounting treatment of the up-front payment of employers pension contributions.

There are also unadjusted misstatements¹ reported by Mazars, but these were all considered to be below the level of materiality.

The letter went on to note deficiencies in internal control, with recommendations to address these.

Statement of Accounts 2022/23

The Committee was asked to approve the Statement of Accounts for 2022/23.

Because of significant delays to previous years, there was insufficient time to audit the 2022/23 accounts before the 13 December backstop deadline imposed by the Accounts and Audit (Amendment) Regulations 2024. This meant the external auditor, Forvis Mazars, was scheduled to issue a disclaimed opinion² on the Council's accounts.

The report pack provided details of the backstop deadlines and what these mean. In particular:

MHCLG, the National Audit Office (NAO) and the Financial Reporting Council (FRC) have been clear that where authorities receive a disclaimed audit opinion that this should not reflect poorly on the authority.

A summary of accounts was provided, highlighting key figures and providing brief commentary on each area of the accounts. For example:

The small underspend is indicating that the Council continues to be efficient in using its resources even with the impact as a result of the Covid pandemic.

External Audit Strategy 2023/24

The Audit Strategy from Mazars for the 2023/24 financial year for both Council and Pension Fund accounts was presented.

This included the audit strategy for the Council accounts, which confirmed that:

For 2023/24 it is again necessary to issue a disclaimer of opinion on the council’s financial statements due to insufficient time to carry out the audit.

Despite the disclaimer, the strategy confirmed that the audit work would include an assessment of Value for Money arrangements under the three criteria of:

• Financial sustainability
• Governance
• Improving economy, efficiency, and effectiveness

The audit would also consider internal controls and fraud.

The Audit Strategy report for the Pension Fund accounts was also included. This confirmed that Mazars would carry out a full audit, as:

This should be completed in January ahead of the 2023/24 deadline for publishing accounts by 28 February.

Internal Audit Interim Report 2024/25

This report provided an update on the work of the Council’s Internal Audit service, which is delivered as a shared service with the London Borough of Islington.

It outlined progress against the planned internal audit reviews for the first half of 2024/25 and provided a summary of the assurance opinions given. For example:

A review of the Shared Pensions Service (including Camden data sets) was undertaken externally as led by the South West London Audit Partnership. The review made no specific recommendations for Camden.

It also gave details of outstanding actions from previous internal audit reviews.

Principal Risk Report 2024

This annual report provided an update on the Council’s principal risks and the action being taken to mitigate them.

There are 30 principal risks. For each risk, the report provided:

• Current and target risk scores, showing the level of risk in view of current controls, and the level of risk the Council is working towards achieving
• A forward trend, showing whether the risk is expected to increase, decrease, or remain stable
• Commentary on the cause of the risk, and a summary of the main controls and planned actions to address it

Two new principal risks were added to the register. These were:

• Increasing Homelessness
• Complaints in Housing Repairs

One existing risk was amended. This was:

• Financial Resilience of Residents (previously known as the Cost of Living Crisis)

No principal risks were closed.

The report also provided an update on deep dives into principal risks. The deep dive for this meeting was on Financial Resilience of Residents. The committee was asked to agree four areas for deep dives in 2025.

Annual Reward and Terms and Conditions Update

The report provided an update on the Council’s Reward Strategy and its response to cost-of-living challenges.

It gave details of Camden’s current pay and benefits offer to staff, including:

• The Minimum Earnings Guarantee
• A range of financial support and advice resources for staff, including one-to-one advice, financial education seminars, and access to HSBC webinars and the ‘My Money Matters’ platform
• Loans for specific purposes, such as tenancy deposits, childcare deposits, and immigration

It also highlighted external accreditations, such as accreditation as a Living Wage Employer and a Timewise Employer.

The report then provided an update on Camden’s Terms and Conditions of employment, explaining how the ‘Camden Pay, Performance and Development’ (CPPD) scheme, which reformed pay and conditions for most staff, had been implemented across the Council.

It also included an update on politically restricted positions (PoRPs) within the Council. This explained the statutory framework under the Local Government and Housing Act 1989 and outlined the two categories of PoRPs:

• Specified Posts
• Sensitive Posts

The report confirmed that:

Currently 461staff are in posts are classified as politically restricted.

Revision to Contract Standing Orders

The report proposed changes to the Council’s Contract Standing Orders to ensure compliance with the Procurement Act 2023, which is due to come into force on 24 February 2025, and with the NHS Provider Selection Regime, which came into effect in January 2024.

The changes related to:

• Contracts with a value below the UK procurement threshold
• The NHS Provider Selection Regime
• Procurement and contract management procedures

The report included a summary of the Procurement Act 2023 and its key objectives, including the introduction of a Central Digital Platform, changes to award criteria, and a focus on sustainability and social value.

It also provided a summary of the NHS Provider Selection Regime and the three selection processes relevant authorities can follow.

The report concluded that it was necessary to update the Contract Standing Orders:

The proposals set out in this report will enable the Council to have thresholds and approvals in place that reflect current prices/requirements thereby helping to speed up decision-making, where appropriate, whilst still maintaining sufficient oversight of all decisions.

Interim Review of Polling Districts and Polling Places 2024

The report provided an interim review of the polling districts and polling places in Camden following the local elections in May and July 2024.

It highlighted the need to re-merge three polling districts (IA, LD and TA), which had been split in 2023 in case of a General Election.

The report then outlined recent changes to specific polling places, explaining why each change was made and the proposed approach to future elections. These changes related to:

• Highgate Library Civic & Cultural Centre (Highgate Ward)
• Abacus Belsize Primary School (King’s Cross Ward)
• RADA Studios (Bloomsbury Ward)

The report also identified three polling places where an alternative location might be needed for future elections. These were:

• West Hampstead Branch Library (West Hampstead Ward)
• Kingsgate Community Centre (Kilburn Ward)
• The Acol Bridge Club (South Hampstead Ward)

It was therefore recommended to give:

… authority to the Chief Executive, following consultation with the relevant ward members, to make any changes if further changes are required before the next review.

Work and Training Plan and Action Tracker

The report included the proposed work plan for the remainder of 2024/25, detailing the key reports scheduled for each meeting.

It also set out the proposed training schedule for Members. Refresher training on:

• Risk Management
• Accounts and External Audit
• Internal Audit and Anti-Fraud

was scheduled for December 2024, February 2025, and April 2025 respectively.

Training on Treasury Management was to be scheduled once the meeting schedule for 2025/26 was known.

The report also included an action tracker detailing progress against outstanding actions from the previous two committee meetings.