The Audit and Corporate Governance Committee was scheduled to meet to discuss principal risks, the internal audit plan, and the annual accounting policies. The committee was also expected to review the auditor's annual report and consider a deep dive into the increasing risk of homelessness in the borough.

Here's a more detailed look at the topics on the agenda:

Increasing Homelessness Risk

The committee was scheduled to discuss a report providing an overview of the principal risk of increasing homelessness in Camden. The report notes that homelessness is rising nationally and in London, with over 183,000 Londoners estimated to be homeless and living in temporary accommodation.

In Camden, there are approximately 400 approaches for homelessness assistance each month, up almost 40% from last year. The main causes of homelessness in Camden are loss of private rented sector accommodation, parents and relatives no longer willing or able to accommodate, and relationship breakdown. The report states that these are expected to continue as the main drivers for homelessness in the borough.

The report also highlights the increase in the use of temporary accommodation, with the number of households living in temporary accommodation rising from 498 in 2019 to over 1000 in March 2025. The allocated budget for temporary accommodation for 2024/25 is £6.6 million, but the forecasted overspend is estimated to be £13 million, with the overall net spend forecasted to be £19.6 million.

The report outlines a number of risk mitigation strategies, including:

• Increasing resources and specialisms in Homelessness Prevention and Rough Sleeping Services.
• Increasing support in the street outreach team, Routes off The Streets, and mobilisation of Single Homelessness Accommodation Programme (SHAP) funded supported accommodation schemes.
• The Temporary Accommodation Taskforce, which was set up to oversee the delivery of an action plan to improve the day-to-day experience of homeless residents and those at risk, and to tackle the rising financial cost to the Council of meeting the growing demand to provide emergency and temporary accommodation for these residents.
• The Temporary Accommodation Purchase Programme (TAPP), which aims to increase the council's in-house provision of temporary accommodation.
• Increased support in the Adult Pathway and move-on.

Principal Risks Update

The committee was scheduled to receive an update on the actions being taken to mitigate key principal risks facing Camden Council. The report focuses on risks with the highest risk scores and those with an increasing risk trend, as outlined in the 2024 Principal Risk Report. These risks include:

• Financial resilience and strategy
• Housing Revenue Account (HRA) financial resilience
• Increasing homelessness
• Financial resilience of residents
• Delivering net zero Carbon and improving climate resilience
• High Speed 2 and Euston
• Safeguarding adults
• Cyber and data security
• Safeguarding children
• Breakdown in community cohesion
• Compliance with consumer standards (as a landlord)

The report provides updates on each of these risks, outlining the actions being taken to mitigate them. For example, regarding financial resilience and strategy, the report notes that the council agreed a balanced budget for 2025/26, but in-year forecasts show a projected general fund overspend of £26m in 2024/25, driven largely by cost pressures across Children’s Social Care and Homelessness services.

Regarding delivering net zero carbon and improving climate resilience, the report notes that borough-wide carbon dioxide emissions have reduced by 48% since 2005, but the cost of achieving net zero across the council's estate and the borough remains significant, with a funding gap of around £160m for the corporate and schools’ estate alone.

The report also asks the Committee to agree an additional area for a risk deep dive in November 2025.

Internal Audit and Investigations Plan

The committee was asked to approve the Annual Internal Audit and Investigations Plan for 2024-25. The report asks the committee to approve the risk-based internal audit plan, including internal audit’s resource requirements, the approach to using other sources of assurance, and any work required to place reliance upon those other sources.

The report includes the following appendices:

• Internal Audit Strategy
• Internal Audit Charter
• 2025-26 Draft Internal Audit Plan
• Principal Risk Assurance Map and Key Financial Systems Plan
• 2025-26 Investigations Plan

The Internal Audit Plan details the work to be undertaken by Internal Audit in 2025-26. Internal Audit aims to retain flexibility in its approach in order to provide coverage of emerging risks and to meet the changing needs of the organisation.

The 2025-26 Investigations Plan details planned anti-fraud activity. A best practice and proactive approach is taken to counter fraud through prevention and detection activities. This includes:

• Proactive anti-fraud reviews;
• Fraud awareness training;
• Anti-fraud initiatives such as the National Fraud Initiative; and
• Corporate communications and e-learning.

Internal Audit Follow Up Update

The committee was scheduled to receive an update regarding the work undertaken by Internal Audit in relation to follow up activity to assess the level of implementation of audit recommendations. The report includes an appendix detailing the status of follow up reviews and the level of implementation of audit recommendations.

Auditor’s Annual Report and Audit Strategy Update

The committee was scheduled to receive the Auditor’s Annual Report for the 2023/24 financial year, summarising the work undertaken by the council’s external auditor Forvis Mazars for the year ended 31 March 2024, following the completion of that year’s audit.

The report also presents an update on national data on audit completions and the plans for carrying out the audit of the 2024/25 accounts.

The report includes the following appendices:

• Auditor’s Annual Report – year ended 31 March 2024
• 2024/25 Audit Strategy for the Camden Pension Fund

The Auditor’s Annual Report includes commentary on the organisation’s arrangements to secure value for money (VFM) through the economic, efficient and effective use of its resources, and highlight any issues that the auditor wishes to draw to the attention of the body or the wider public.

The report notes that in each of the considerations of Financial Sustainability, Governance, and Improving economy, efficiency and effectiveness, Forvis Mazars are satisfied that the Council has the expected arrangements in place and have identified no significant weakness.

The report also presents the audit fees for the year.

Accounting Policies

The committee was scheduled to review and approve the accounting policies that will be applied to the council's financial statements for 2024/25. Annually, the council reviews the accounting policies that will be applied to its financial statements against the relevant legislative framework and guidance to ensure that the policies remain appropriate.

The report notes that on 1 April 2024 it became mandatory for local authorities to adopt IFRS 16, an accounting standard which updates the rules regarding the accounting treatment of leases. The main impact is to remove the distinction between operating leases and finance leases where an organisation leases assets from another body and to introduce a new ‘right of use’ asset classification, with those assets matched by a corresponding liability on the balance sheet.

The report also notes that the 2024/25 Code identifies other changes in accounting standards beyond IFRS 16, but that changes to the Code as a result of these standards are very limited and have little to no impact on the preparation of the council’s accounts.

Work and Training Plan and Action Tracker

The committee was scheduled to discuss a report summarising plans for the committee’s work programme and training and providing an action tracker detailing progress on actions arising from previous meetings.

The report includes the following appendices:

• Work Plan 25-6
• Terms of reference
• Action Tracker
• CIPFA Guidance

The report asks the committee to consider whether there are any other matters within its terms of reference that it wishes to add to the work programme for a future meeting.