The Audit and Governance Committee of Waltham Forest Council was scheduled to discuss a range of financial and operational matters. Key topics included an update on the external audit, proposed changes to accounting policies, and a review of the Council's treasury management strategy. The committee was also set to consider reports on risk management, internal audit progress, and the Corporate Anti-Fraud Team's activities, alongside policy reviews and updates on the Regulation of Investigatory Powers Act 2000 (RIPA).

External Audit Update and Delegated Authority

The committee was scheduled to receive an update on the external audit for the 2024-25 financial year. This included a review of adjustments to the Statement of Accounts and the auditor's year-end report. The committee was asked to consider delegating authority to the Strategic Director of Resources and the Chair of the Audit and Governance Committee to approve and sign the final accounts before the statutory deadline.

Accounting Policies

A review of the Council's accounting policies was scheduled, with a particular focus on updating section 2.15, Property, Plant and Equipment, to recognise interest costs incurred on qualifying assets during development, acquisition, or construction phases, in line with IAS 23 Borrowing Costs and the CIPFA Code of Practice. This change was deemed significant due to its impact on the Council's finances and the recognition of interest costs on the Balance Sheet. Updates to other sections of the accounting policy, including those related to Council Tax and non-domestic rates, events after the reporting period, inventories, and highways infrastructure assets, were also to be noted.

Annual Review from the Local Government & Social Care Ombudsman (LGSCO)

The committee was to consider the annual review letter from the Local Government & Social Care Ombudsman (LGSCO) for 2024-25, which outlines complaints and enquiries handled in relation to Waltham Forest Council. Additional information regarding complaints within the jurisdiction of the Housing Ombudsman Service (HOS) was also to be presented. The report detailed the number of complaints received by service area, the reasons for closure without investigation, and the outcomes of investigations, noting an improvement in the Council's uphold rate compared to the previous year. Concerns were raised by the LGSCO regarding delays in responding to enquiries, poor quality of responses, and late implementation of recommendations.

Treasury Management Strategy, Minimum Revenue Provision Policy Statement, and Annual Investment Strategy 2026-27

This report proposed the approval of the Treasury Management Strategy, Minimum Revenue Provision (MRP) Policy Statement, and Annual Investment Strategy for 2026-27. It outlined the context of the Council's treasury management activities, including its borrowing and investment strategies, and Prudential Indicators. The report also detailed risk reduction strategies aimed at ensuring the security, liquidity, and yield of the Council's investments. The strategy acknowledged the Council's under-borrowed position and the use of internal cash balances to defer external borrowing, with a focus on monitoring market interest rates. The Annual Investment Strategy maintained a low-risk approach, prioritising security and liquidity, and included a list of approved counterparties and countries for investments.

Risk Management Update & Strategic Risk Register Quarter 3 2025/26

The committee was to receive an update on the Corporate Risk Register for Quarter 3 of the 2025/26 financial year. The report detailed the 13 strategic risks currently identified, with a focus on changes in residual scoring after the application of mitigating controls. Notably, the risk of a 'Breakdown in financial strategy and resilience' (SRFG0001) had seen its inherent likelihood rating increase, moving from amber to red. Conversely, the risk related to the 'Failure of the Council to adequately respond to the Climate Emergency' (SNE0002) had its residual likelihood rating reduced from almost certain to probable, remaining an amber risk. Several risks, including those related to Care Quality Commission ratings, community equipment services, and the cost of living support, were noted as having been de-escalated from the corporate risk register.

Progress Update on Delivering the 2025-26 Internal Audit Plan

This report provided an update on the progress of the Internal Audit service in delivering the 2025-26 Internal Audit Plan. As of 31 December 2025, 31% of the plan was at draft report stage or finalised, with 28% in fieldwork. The report detailed the outcomes of final reports completed since September 2025, categorised by risk rating and root cause. Common root causes identified included inadequate documentation, insufficient training, and unclear roles and responsibilities. The report also highlighted outstanding high-priority risks with agreed actions, noting that 12 such actions remained from previous audit years.

Corporate Anti-Fraud Team Progress Update Report

The committee was presented with an update on the work of the Corporate Anti-Fraud Team (CAFT) for the period of April to December 2025. The report detailed significant achievements, including the recovery of 54 properties, the prevention of 7 fraudulent Right to Buy applications, and total cashable savings of £61,250.63. The report also included the updated Anti-Fraud Strategy for 2026-30. The strategy outlined a five-pillar approach: Govern, Acknowledge, Prevent, Pursue, and Protect, and detailed the activities and aims for each. The alignment of the strategy with the Council's Mission Waltham Forest values was also highlighted.

Review of Corporate Anti-Fraud Team Policies

This agenda item involved a review of the Corporate Anti-Fraud Team's policies, with proposed updates to the Anti-Bribery, Anti-Money Laundering, Anti-Fraud and Corruption, Anti-Fraud and Corruption Response Plan, and Prosecution policies. Changes included clarifications on declaring additional employment and recording gifts and hospitality, updates to reflect legislative changes regarding Politically Exposed Persons (PEPs), and revisions to job titles. These policies form part of the Council's Anti-Fraud and Corruption Framework and are reviewed annually, with a full review every three years or sooner if legislative changes occur.

The Regulation of Investigatory Powers Act 2000 (RIPA)

The committee was to receive an update on the Council's adherence to the Regulation of Investigatory Powers Act 2000 (RIPA), which governs the use of covert surveillance by public bodies. The report noted that there had been no RIPA or non-RIPA authorisation applications submitted during the calendar year 2025, consistent with the previous year. The current RIPA policy, last reviewed in February 2023, had been updated to reflect changes in personnel and recommendations from recent training. Any changes to the policy are delegated to the Director of Governance & Law in consultation with the Chair.

Rationalisation of Committees

This report proposed minor changes to the Council's Scrutiny Committee structure, following a review by the Constitution Working Group. The proposed changes aimed to rationalise the committees to better align with the Council's current structure and consolidate the scrutiny of budget and performance reports within the Scrutiny Coordinating Committee. The changes were proposed to take effect from the May Council AGM in 2026. A key recommendation was to merge the Budget Scrutiny Committee with the Scrutiny Coordinating Committee, and to delegate authority to the Corporate Director of Governance and Law to make necessary amendments to the Constitution. The report also noted that the Audit and Governance Committee would appoint its full membership of six members from May 2026.