The Audit Committee of Hackney Council met on Tuesday 13 January 2026, approving recommendations from the Audit and Anti-Fraud Progress Report and noting the Treasury Management activity reports. The committee also reviewed the Corporate Risk Register and the Chief Executive's Directorate Risk Register.

Audit and Anti-Fraud Progress Report

The Audit Committee approved recommendations from the Audit and Anti-Fraud Progress Report, noting the performance of the Audit & Anti-Fraud Service up to 30 November 2025. They also approved the updated Surveillance and Communications Data Policy and Procedures. The report detailed the work undertaken by the Internal Audit Service, including progress against planned audits and the implementation of recommendations. The Anti-Fraud Service reported on investigations, with significant estimated savings identified in areas such as tenancy fraud and parking. The National Fraud Initiative (NFI) matches were also reviewed, highlighting the ongoing work to identify and address potential fraud.

Treasury Management Update

The committee noted the treasury management activity reports for the periods October 2025 to December 2025 and the half-year activity report for April 2025 to September 2025. These reports detailed the Council's borrowing and investment activities, economic background, credit risk analysis, and compliance with prudential indicators. The Council's borrowing has increased due to its capital programme, and a prudent approach to investments has been maintained, prioritising security and liquidity. The report also highlighted the Council's commitment to sustainable initiatives through the Hackney Green Investment initiative.

Treasury Management Strategy 2026/27

The committee was presented with the draft Treasury Management Strategy for 2026/27 to 2028/29 for approval. This strategy outlines the expected treasury operations for the upcoming financial years and will be submitted to the Council as part of the annual budget setting process. The strategy takes into account the current macro-economic environment, including interest rate forecasts and credit outlooks, and aims to balance risk management with cost-effectiveness. The Council's borrowing strategy is transitioning towards a more borrowing-led approach due to increasing capital financing requirements, and the strategy details approved sources of borrowing and investment counterparties and limits.

Corporate Risk Register

The committee reviewed the Corporate Risk Register, which outlines the key risks facing the Council and the actions being taken to mitigate them. Significant risks identified include the Council's financial position and the economy, cyber security threats, and the management of the Corporate Transformation Programme. The register also details risks related to the Housing, Climate and Economy Directorate, such as budget pressures, building safety, customer service satisfaction, and temporary accommodation pressures. The Chief Executive's Directorate Risk Register highlighted risks associated with workforce capacity, the cost of living crisis, and the management of the Corporate Transformation Programme. The Housing, Climate and Economy Directorate Risk Register detailed risks related to budget pressures, building safety, customer service satisfaction, ICT infrastructure failure, temporary accommodation, and climate programme delivery.

Audit and Anti-Fraud Progress Report

The committee received an update on the performance of the Audit & Anti-Fraud Service up to 30 November 2025. This included details on internal audit work completed, implementation of recommendations, and statistical information on anti-fraud investigations. The report highlighted that the Internal Audit Service is fully staffed and making progress against its annual plan, with a focus on high-risk areas. The Anti-Fraud Service reported on investigations, with significant estimated savings identified in areas such as tenancy fraud and parking. The National Fraud Initiative (NFI) matches were also reviewed, indicating ongoing work to identify and address potential fraud. The committee also considered an updated Surveillance and Communications Data Policy and Procedures.

Chief Executive's Directorate Risk Register

The committee reviewed the key risks facing the Chief Executive's Directorate, including those related to legal and democratic services, corporate strategy and transformation, human resources, communications, procurement, and policy and strategic delivery. Risks associated with the Corporate Transformation Programme and organisational capacity were also discussed. Mitigations in place include clear governance structures, staff engagement strategies, and ongoing reviews of policies and procedures.

Housing, Climate and Economy Directorate Risk Register

The committee reviewed the risks facing the Housing, Climate and Economy Directorate. Key risks identified include budget pressures, building safety concerns, customer service satisfaction, ICT infrastructure failure, temporary accommodation pressures, and the delivery and governance of the climate programme. The report detailed the controls and actions in place to manage these risks, including the Housing Improvement Plan, the TA Transformation Board, and the Climate Programme Board.

External Audit Progress Report

The committee received an update on the progress of the external audit for the Council's and Pension Fund's accounts for the year ending 31 March 2025. The auditors, Forvis Mazars, reported that they were on track to issue audit opinions by the statutory deadline. The report highlighted two significant weaknesses identified in the Council's value for money arrangements: financial sustainability due to the reliance on reserves, and governance issues related to Health and Safety standards in social housing. Recommendations were made to address these weaknesses.

Treasury Management Strategy 2026/27

The committee was presented with the draft Treasury Management Strategy for 2026/27 to 2028/29 for approval. This strategy outlines the Council's approach to borrowing and investment for the coming years, taking into account the economic background and interest rate forecasts. The strategy aims to balance risk management with cost-effectiveness, with a focus on security and liquidity for investments. The Council's increasing capital financing requirements mean a greater reliance on external borrowing is anticipated, which has been factored into the Medium Term Financial Plan. The strategy also details approved sources of borrowing and investment counterparties, along with prudential indicators to manage risk.

Audit Committee Work Programme

The committee reviewed its work programme for upcoming meetings, including the consideration of the 2024/25 Statement of Accounts, external audit updates, finance updates, and directorate risk registers. The committee also noted the ongoing work programme for the Audit and Anti-Fraud Service.