The City of Westminster Council’s Audit and Performance Committee will be meeting to discuss various financial and performance matters for the current and coming year. They will also be looking at the planned scope and timing of internal and external audits, as well as the ethical conduct of the Council.

The 2025/2026 Work Programme

The committee will consider items for the Audit and Performance Committee 2025/2026 Work Programme.

The Council’s 2024/2025 Quarter 3 finances

The Committee will consider Westminster Council's finances in Quarter 3 2024/2025. The projected overspend for the General Fund is £14.309m (7% of the net budget of £205.545m). The report pack states that The main reason for the overspend remains spend in homelessness and increased costs of Temporary Accommodation (TA). There is also a projected surplus in the Housing Revenue Account of £1.8m (after planned use of earmarked reserves).

Internal Audit Plan for 2025/2026

The Committee will look at the first draft of the Internal Audit Plan for 2025/2026, and comment on the audits scheduled for the first quarter, which are:

• The Mortuary.
• Section 106 agreements.
• Home Improvement Grants.
• Brokerage in Adult Social Care.
• Seven schools: Robinsfield, Soho Parish, St Mary Magdalene & St Stephen's, College Park & QEII, St Saviour’s and Edward Wilson.

The Committee will consider using continuous auditing for a number of services, and will consider reviewing a number of other services, including those relating to declarations of interest, procurement, the use of discretion and concessions in services, legal case management systems, pensions administration, and direct payments in adult social care. The committee will be provided with a Strategic Audit Plan, which outlines potential audits for the next 3 years.

External Audit Plan

The Committee will receive a report on the planned scope and timing of the statutory audits for both Westminster City Council and the Westminster Pension Fund.

Internal Audit Strategy and Charter

The Institute of Internal Auditors (IIA) published new Global Internal Audit Standards (GIAS) in January 2024. To comply with these new standards, the Committee will be asked to review and approve a new Internal Audit Charter, which sets out the purpose, authority and responsibilities of the Internal Audit Service. The Committee will also be asked to review the Internal Audit Strategy, which supports the delivery of the new Charter.

Quarter 3 Performance Report for 2024/2025

The Committee will be reviewing the Council’s performance against its Key Performance Indicators (KPIs) in Quarter 3 of 2024/2025. The report shows that:

• 67 (67%) KPIs are on track to meet their targets.
• 20 (20%) are missing their targets by a small margin.
• 6 (6%) are off track to meet targets.
• 7 (7%) are new and do not have a target yet.

The report also notes a number of achievements in the quarter. For example, Adult Social Care was awarded a “Good” rating by the Care Quality Commission, and Children’s services were awarded an “Outstanding” rating by Ofsted.

The report also identifies a number of pressures and risks. For example:

• The report pack says that “[t]here is great uncertainty due to the proposed implementation of changes to the local government funding arrangements through the Local Government Funding Reform.” It suggests that this “could have a negative impact on the Council”, and that “[s]everal changes in the formula that distributes funding to local government could have a negative impact on the Council.”
• The report pack also suggests that the council is “[a]t increasing risk of failing to adequately address effects of the climate emergency or to meet corporate targets for net zero carbon emissions”.
• The report also identifies increasing demand and costs for temporary accommodation. It says that [t]he demand for Temporary Accommodation (TA) from households in housing need has increased by c. 50% from 2,699 in April 2022 to over 4000 as at January 2025, and that, [a]t the same time the overall reduction in availability of private sector properties whether to prevent homelessness or for use as Temporary Accommodation and the high cost of existing housing has created a decline in the availability of accommodation to meet the Council’s statutory duties to meet housing need.

Ethical Standards Report

The Committee will be considering a report on maintaining high ethical standards throughout the Council. This report covers the work of the Shared Audit, Fraud, Risk and Insurance Service; ethical governance complaint monitoring; ethical governance at Member level; ethical governance in relation to staff; and ethical governance in relation to the Council’s contractors and procurement.

In 2024 the Monitoring Officer considered four complaints against Councillors, alleging a breach of the Members’ Code of Conduct. None of the complaints were referred to the Standards Committee.

The report provides details of all staff disciplinary, grievance, and whistleblowing cases. It shows that in 2023-2024 there were:

• 25 disciplinary cases closed, with a further case still open in the new financial year.
• No whistleblowing complaints.
• 25 grievance cases closed, with 1 case remaining open.

The report shows an increase in self-reported instances of bullying and harassment amongst council staff from 13% in 2023 to 17% in 2024.

The report also notes that the Council's Procurement Code has been updated and will be approved by Full Council on 5 March 2025. The Council will also begin using the Procurement Act 2023 from 24 February 2025. This legislation introduces new standards of transparency and aims to make it easier for SMEs and social enterprises to win public sector contracts.