The Finance Committee meeting scheduled for 17 February 2026 was set to cover a range of financial matters, including budget monitoring, the proper use of corporate P-cards, and updates on departmental business plans and risk management. A key item for discussion was the potential unsustainability of medium-term finances for both the City Fund and the City's Estate, alongside the financial health of the Housing Revenue Account.

Improving Compliance and the Proper Use of Corporate P-cards

A report from the Chamberlain's Department, authored by Group Chief Internal Auditor Matt Lock, was scheduled for information. This report aimed to provide an update on recent work undertaken in collaboration with the Chamberlain's Financial Shared Services Team to enhance the control framework for corporate P-cards. The focus was on improving compliance and ensuring the proper use of these cards, particularly addressing instances where expenditure reports were not completed, leading to a lack of management visibility. The report highlighted that approximately 4,000 P-card transactions per year, equating to around £350,000, were not submitted for review or approval. Key insights indicated a lack of management oversight for such expenditure and a potential negative influence on organisational culture if financial controls are not perceived to be taken seriously. A management action plan was in place, exploring enhanced monitoring, system developments for transparency, targeted communication, and greater sanctions for persistent misuse. The report noted that the Financial Shared Services team was not currently resourced to provide the enhanced monitoring required.

Chamberlain's Business Plan Quarter 3 2025/26 Update

This report, also from the Chamberlain's Department and authored by David Mendoza-Wolfson, Head of Chamberlain's Office, was for information. It provided an update on the department's progress against its Business Plan during the third quarter of the 2025/26 financial year. The report indicated that the Chamberlain's Department had thirteen workstreams, with two focused on Digital Information and Technology Services (DITS) and the remainder reporting to the Finance Committee. Five workstreams were rated as amber or red, with mitigation measures identified for implementation in Q4 to return them to a green status. Key programmes moving forward included the launch of a new P3 approach and the go-live of remaining HR modules for Programme SAPphire, although the Finance workstreams related to this programme remained red due to system design build issues. The report also highlighted progress in digital transformation, including upskilling colleagues and exploring Enterprise Architecture.

Chamberlain's Departmental Risk Management Update

Authored by Leah Woodlock and reported by Caroline Al-Beyerty, the Chamberlain, this report was for information and detailed the departmental risks within the Chamberlain's department. It highlighted two RED risks on the Corporate Risk Register: CR35, Unsustainable Medium-Term Finances – City Fund, and CR42, Housing Revenue Account (HRA) Finances. The risk score for CR35 remained RED 16, pending the release of the Government's final funding settlement. The report detailed potential consequences for the City Corporation due to adjustments in funding formulas and the lack of a multi-year settlement. For CR42, the report outlined major changes being made to improve HRA finances and operations, including updating its capital financing strategy and strengthening budget management. Full details of all corporate and departmental risks were available in Appendix 1, with risk appetite assessments in Appendix 2.

Central Contingencies 2025/26

This report, authored by Laura Yeo, provided an update on the uncommitted balances of the Central Contingencies for the 2025/26 financial year. The report detailed the provisions, previously agreed allocations, and pending requests for the City's Estate, City Fund, International Disaster Fund, and Project Reserve. At the time of the report, there were three requests for allocations from contingency funds elsewhere on the agenda. The uncommitted balances for Central Contingencies were £622,000 for the City's Estate and £610,000 for the City Fund, totalling £1,232,000. The International Disaster Fund had no uncommitted balance, while the Project Reserve had £140,000 for the City's Estate and £200,000 for the City Fund, totalling £340,000.

Budget Monitoring Quarter 3

Authored by Daniel Peattie, Assistant Director – Strategic Finance, this report was for decision and outlined the forecast position for the 2025/26 financial year at the end of Quarter 3, covering both revenue and capital. The City Fund was forecasting an underspend of £20.7 million, comprising a £2.6 million overspend on local risk and a £23.3 million underspend on central risk. The City's Estate was forecasting an underspend of £0.6 million, with a £1.3 million overspend on local risk offset by a £0.7 million underspend on central risk. Guildhall Administration was forecasting an underspend of £3.2 million, with £2.5 million on central risk and £0.8 million on local risk. The report recommended noting the report, approving the extension of limiting recharges to the HRA for 2025/26, and approving that potential deficits on West Ham Park and legal costs incurred by the Executive Director of Environmental Services be met from the City's Estate Finance Committee's Contingency.

Finance Committee's Forward Plan

This report from the Chamberlain was for information and provided an overview of the Finance Committee's Forward Plan.

Finance Committee's Terms of Reference Review

Authored by John Cater, this report from the Town Clerk was for decision. It presented the annual review of the Committee's Terms of Reference, proposing minor amendments and seeking agreement for onward approval to the Policy and Resources Committee and the Court of Common Council.

Improving Compliance and the Proper Use of Corporate P-cards

This report, from the Chamberlain's Department and authored by Matt Lock, Group Chief Internal Auditor, was for information. It provided an update on work undertaken to enhance the control framework for corporate P-cards, addressing issues of incorrect completion of expenditure reports and failure to complete them, which resulted in unidentified potential misuse. The report noted that approximately 4,000 P-card transactions annually, valued at around £350,000, were not submitted for review or approval. A management action plan was in place to improve transparency and introduce more robust sanctions for persistent non-compliance.

Chamberlain's Business Plan Quarter 3 2025/26 Update

This report from the Chamberlain's Department, authored by David Mendoza-Wolfson, was for information. It detailed the progress of the department against its Business Plan during the third quarter of the 2025/26 financial year, highlighting key achievements and challenges across its thirteen workstreams.

Chamberlain's Departmental Risk Management Update

Authored by Leah Woodlock and reported by Caroline Al-Beyerty, the Chamberlain, this report was for information. It informed the Finance Committee about departmental risks, specifically highlighting two RED risks on the Corporate Risk Register: Unsustainable Medium-Term Finances – City Fund and Housing Revenue Account (HRA) Finances. The report detailed ongoing mitigation measures and provided updates on the risk ratings.

Central Contingencies

This report, authored by Laura Yeo, was for information and provided a quarterly update on the uncommitted balances of the Central Contingencies for the 2025/26 financial year. It detailed the provisions, allocations, and pending requests for various contingency funds.