The Audit, Standards and Statutory Accounts Committee was scheduled to meet to discuss the 2024/25 accounts and external audit report, an internal audit update, a strategic review of risk management, and a fraud update. The committee was also scheduled to review its work programme.

2024/25 Accounts and the Report of the External Auditor

The Audit, Standards and Statutory Accounts Committee was scheduled to consider the 2024/25 accounts and the draft Audit Results Report. The report pack included a recommendation to give Councillor Richard Bennett, Chair of Audit, Standards and Statutory Accounts Committee, delegated authority to sign the 2024/25 accounts and a letter of representation when the audit is complete.

The report pack noted that there have been national delays in the external auditing of local authority accounts. Because a full audit was not completed in 2022/23, Ernst & Young (EY) have been unable to fully re-gain assurance on the balances brought forward from 2022/23 or 2023/24 within the 2024/25 accounts. However, the report pack stated that the council and EY are working towards issuing a 'qualified except for' opinion, instead of a 'disclaimed' opinion in 2024/25.

The draft Audit Results Report 24-25 noted changes in materiality, with the revised planning materiality at £10.5m, performance materiality increased to £5.2m, and the audit difference threshold raised to £0.52m.

The report stated that the auditors were considering issuing a 'qualified except for' opinion, and summarised the assurances that had been obtained from the 2023/24 and 2024/25 audit procedures. It also summarised corrected and uncorrected misstatements. Of the uncorrected misstatements, the report noted:

• Two factual uncorrected misstatements of £1.262m relating to accruals for housing benefit and teachers' pensions.
• Incorrect classification of £2.046m in relation to a VAT refund from HMRC.
• A projected misstatement of £1.262m during cut off testing.
• A projected misstatement of £859k during systems debtors testing.
• A misstatement of £805k during REFCUS¹ testing.
• That mandatory disclosures required under CIPFA in respect of IFRS 16 Leases transition were not included in the published draft financial statements.

The report also summarised corrected misstatements relating to financial instruments, exit packages, and officer's remuneration.

The report also summarised the status of work in relation to areas of audit focus including:

• Fraud risk - misstatement due to fraud or error
• Fraud risk - risk of fraud in revenue and expenditure recognition, through inappropriate capitalisation of revenue expenditure
• Significant risk - valuation of land and buildings – valued under Existing Use Value (EUV) / Fair Value (FV)
• Significant risk - valuation of investment property – valued under Existing Use Value (EUV) / Fair Value (FV)
• Risk of material misstatement (ROMM) - valuation of land and buildings in property, plant and equipment (PPE) under Depreciated Replacement Cost (DRC)
• Risk of material misstatement (ROMM) - pension liability valuation
• Risk of material misstatement (ROMM) - application of IFRS 16

The report also included an assessment of the council's control environment, and other reporting issues including consistency of information published with the financial statements, and Whole of Government Accounts².

Internal Audit Update Report

The Audit, Standards and Statutory Accounts Committee was scheduled to receive an update on the work carried out by internal audit in 2025/26 up to 31 October 2025.

The report pack included a recommendation for the committee to note progress against the 2025/26 internal audit plan.

The LBR Progress against the 2025-26 Audit Plan stated that of the 43 reviews in the plan, 15 were finalised/completed, 13 were in progress/on-going, and 12 were booked to start/planned.

The report noted that there were four vacancies within the team, and that the team was being supported by a part-time audit contractor, as well as by Mazars.

The report pack stated that since the committee's previous report on 1 July 2025, no audit had been issued with a Limited Assurance or No Assurance opinion, and no audit awarded Reasonable Assurance had included a Priority 1 recommendation.

The report also provided an update on progress against implementation of recommendations made in the Change Programme audit report that was presented to the committee in July 2025.

Strategic Review of Risk Management

The Audit, Standards and Statutory Accounts Committee was scheduled to discuss the next steps for updating the councils' risk management approach.

The report pack noted that Richmond and Wandsworth Councils have undertaken a comprehensive review of their joint Risk Management Strategy in 2025, prompted by feedback from councillors and senior officers about the current oversight mechanisms, the need for greater transparency, and the desire to modernise risk reporting processes.

The report pack included a recommendation for the committee to approve the next steps for updating the councils' Risk Management Approach.

The report pack stated that the review had identified a need for clearer escalation pathways and more consistent oversight, and that a digital risk management platform was planned.

Fraud Update

The Audit, Standards and Statutory Accounts Committee was scheduled to receive a summary of the fraud work carried out by the South West London Fraud Partnership (SWLFP) during the year 2025/26.

The report pack included a recommendation for the committee to note the Fraud Progress report and review of activity completed so far during 2025/26.

The report pack stated that the fraud risk threat remains substantial, and that insider fraud and identity fraud are rising. It also noted that temporary accommodation is a new area of focus due to the rising demand and cost.

The report pack summarised fraud investigation and performance results, including the number of properties brought back into housing associations/council control, the number of verification visits completed, and the number of housing applications withdrawn as a result of fraud work.

The report pack also provided a summary of overpayments and notional savings, and detailed the number of RIPA and Non-RIPA applications made.

Committee Work Programme

The Audit, Standards and Statutory Accounts Committee was scheduled to consider the committee work programme.