The Corporate Committee of Lambeth Council met on 27 March 2025 to consider a range of reports related to risk management, internal audit, and the council's response to external auditor recommendations. The public reports pack included updates on the committee's work programme, risk management strategy, key corporate risks, and internal audit progress.

Council's Response to External Auditor's Recommendations

The committee was scheduled to discuss the arrangements for overseeing the council’s response to recommendations from its external auditors, Forvis Mazars, under Section 24 and Schedule 7 of the Local Audit and Accountability Act 2014.

The external auditor's recommendations, which were agreed at Full Council on 5 March 2025, related to the council’s financial position, including:

• The current financial year 2024-25
• The budget for 2025-26 and the Medium-Term Financial Strategy (MTFS) period
• The council’s reserves position
• The council’s progress on the financial considerations of bringing Homes for Lambeth in house

The report pack included the external auditor’s written recommendation, as well as the council’s proposed response. Full Council delegated authority to the Corporate Committee to oversee progress against the actions set out in the council’s response.

The report pack stated that the external auditor acknowledged that the council was in an extremely challenging financial situation, with significant demand pressures, particularly in temporary accommodation, and further financial pressures on the Housing Revenue Account (HRA).

The council’s proposed response included actions already being taken and planned, as well as additional actions to address the external auditor’s recommendations.

The report recommended that the Corporate Committee receive a written progress update report as a standing agenda item at every meeting, and note the requirement to provide an update to Full Council on progress made as part of its annual report.

Risk Management Strategy and Policy

The committee was scheduled to review the Risk Management Strategy and Policy for 2023-26. The Risk Management Strategy and Policy cover report stated that the strategy and policy set out the council’s risk management aims, objectives, processes and benefits. It said that by actively adhering to these, the council would be better placed to deliver its corporate and strategic ambitions.

The report pack noted that the Risk Management Strategy and Policy are reviewed annually, with a full refresh every three years. The last refresh took place in September 2023.

The report pack listed the following changes that had been applied as part of the March 2025 annual review:

1. Expanded the guidance, education and training section to include links to the five updated risk management E-learning modules which are held on the new Risk and Insurance Team page (page 18 appendix A)
2. Added links to further Risk Management information in the Roles and Responsibilities section (appendix C)

The report recommended that the committee note the Risk Management Strategy and Policy 2023-26.

Key Corporate and Strategic Risks

The committee was scheduled to receive an overview of the council’s top 10 key corporate and strategic risks at Quarter 3 2024/25.

The CC risk report March 25 stated that the council’s ongoing risk management aims were to give members and senior officers an understanding of the key risks facing the council and its community, ensure that risk management effectively supports the corporate governance of the council, and provide a strategic lead and champion risk management.

The report pack included a table summarising the highest rated key risks, including financial planning, cyber-attack, serious youth violence, housing needs, and increased pressure on the Housing Revenue Account. For each risk, the table provided the inherent risk score, current risk score, target risk score, and trend.

The report pack also included a table outlining mitigations and comments for each of the top 10 risks.

The report recommended that the committee note the council’s key risks at Quarter 3 2024/25.

Internal Audit and Counter Fraud Progress

The committee was scheduled to receive an update on progress made against the annual Internal Audit and Counter Fraud plan for 2024/25.

The IA CF Progress Covering Report - March 2025 stated that the Corporate Committee has responsibility for oversight of the council’s arrangements for governance, risk management and control. It said that the report assisted the committee in discharging its responsibilities.

The report pack included a summary of progress against the 2024/25 Internal Audit Plan, as well as summaries of finalised assurance reports.

The report pack also provided an update on counter fraud activity for 2024-25, including data on new investigations, live investigations, closed investigations, tenancy recommendations, tenancy recoveries, and financial savings.

The report recommended that the committee note progress made against the revised 2024-25 Internal Audit and Counter Fraud plan, the assurance levels offered, and progress with the implementation of management actions.

Internal Audit and Counter Fraud Risk-Based Plan 2025-26

The committee was scheduled to review and agree the internal audit three-year strategy and risk-based internal audit and counter fraud plan for 2025/26.

The IA CF Strategy and Annual Plan 25-26 Covering Report - DRAFT stated that the Global Internal Audit Standards (UK Public Sector) require the Chief Audit Executive to establish a risk-based plan that sets out the priorities of the internal audit activity.

The report pack stated that to enable a more dynamic approach that is adaptable to changing priorities and emerging risks, the council was moving away from an annual planning model and adopting a 6-month rolling plan that would be reviewed and prioritised quarterly.

The report pack included the proposed plan for 2025/26, as well as the internal audit strategy for 2025-2028.

The report recommended that the committee review and approve the internal audit and counter fraud annual plan for 2025/26.

Work Programme and Action Monitoring Log

The committee was scheduled to consider its work programme and action monitoring log. The Report - Work Programme and Action Log 2025 27.03.25 stated that the report was to assist the Corporate Committee in monitoring actions raised from previous meetings and also gives a summary of items expected for future meetings.

The report pack included the committee’s work programme for 2025, as well as the committee’s actions monitoring log.

The report recommended that the committee note the work programme and the actions monitoring log.