The Audit Committee of Ealing Council was scheduled to convene on Tuesday 24 February 2026 to review the council's treasury management practices and financial performance. Key discussions were expected to cover the treasury management strategy and update, the financial management code, the annual audit closing report, and accounting policies for the upcoming financial year. The committee was also set to receive updates on internal audit and anti-fraud work, as well as the internal audit plan.

Treasury Review of Policy and Strategy

The committee was scheduled to review the council's Treasury Management Practices for 2025/26, as outlined in the document Audit Committee - Treasury Management Practices 2025-2026 - Draft style 3.pdf [1]. This review would cover the policies and procedures governing the council's treasury management activities, including risk management, performance measurement, and approved instruments and techniques. The report detailed the council's approach to managing financial risks such as credit and counterparty risk, liquidity risk, and interest rate risk. It also outlined the organisation, clarity, and segregation of responsibilities within the treasury management function, as well as reporting requirements and audit arrangements.

Treasury Update

A report on the Treasury Management Quarter 3 Update for 2025/26 was scheduled for discussion, detailed in Audit Committee - Treasury Management Q3 2025-2026.pdf [2]. This update would provide information on the council's borrowing and investment activities for the period ending 31 December 2025. It was expected to confirm that all treasury management activities were conducted within approved limits and in line with the prevailing economic conditions. The report would also highlight the council's investment balance, detailing amounts invested with the Debt Management Office (DMO). The economic background for the quarter, including UK growth, inflation, and unemployment figures, as well as forecasts for interest rates, was also to be presented.

Financial Management Code

The committee was to consider the council's self-assessment against the CIPFA Financial Management Code for 2025/26, as presented in Finance Management Code Report Feb 2026.pdf [3]. This code is designed to support good practice in financial management and assist local authorities in demonstrating their financial sustainability. The report would outline the council's compliance with the six principles of good financial management: leadership, accountability, transparency, adherence to professional standards, sources of assurance, and long-term sustainability. The assessment would also highlight areas for improvement for future years, detailed in FM Code Progress Register 2025-26.pdf [3.1].

Annual Audit Closing Report

The committee was scheduled to review the annual audit closing report for 2024/25, presented in Statement of Accounts 2024-25.pdf [4]. This report would include the Statement of Accounts for the year, encompassing the General Fund, Group accounts, Pension Fund, Collection Fund, Housing Revenue Account, and the Annual Governance Statement (AGS). The report would also present the external auditor's completion reports from Forvis Mazars for both the London Borough of Ealing and the Ealing Pension Fund [4.2, 4.3]. A key aspect of this report was the confirmation of a disclaimed audit opinion for the council's financial statements, in line with backstop arrangements introduced by the Accounts and Audit (Amendment) Regulations 2024. The committee was asked to approve the Statement of Accounts and authorise their signing by the Chair of the Audit Committee and the Strategic Director, Resources.

Accounting Policies AC Report 2025-26

The committee was to be presented with the proposed accounting policies for the determination of the council's Statement of Accounts for 2025/26, as detailed in Accounting Policies AC report 2025-26.pdf [5]. These policies are crucial for preparing the council's financial statements in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26. The report would also outline the implications of changes in accounting standards for future years. A significant update for 2025/26 was the introduction of a new requirement for the revaluation of property, plant and equipment (PPE) on a five-year rolling basis, with annual indexation applied in the intervening years. The financial impact of this change was expected to be primarily on the balance sheet, with no anticipated impact on the council's general fund or housing revenue account.

Progress Report on Internal Audit and Anti-Fraud (Q3)

A progress report on the work of internal audit and investigation for the third quarter of 2025/26 was scheduled, as detailed in LBE Q3 Audit Investigation report final.pdf [6]. This report would provide an update on the performance of the Internal Audit and Investigation team, outlining the work undertaken against the internal audit plan and the outcomes of investigations. It would include a summary of audit titles, their scope, status, and assurance levels. The report also detailed the performance of counter-fraud and investigations work, including reactive investigations resulting in proven cases with a total value of £1,134k in notional savings and actual losses. Pro-active anti-fraud work, including outcomes from the National Fraud Initiative data match and the NFI fraud hub, was also to be presented.

Internal Audit Plan

The committee was scheduled to review the Internal Audit Plan for 2025/26, as presented in the Public reports pack Tuesday 24-Feb-2026 19.00 Audit Committee.pdf [Public reports pack Tuesday 24-Feb-2026 19.00 Audit Committee.pdf]. This plan outlines the scope of internal audit work for the upcoming year, designed to provide assurance on the council's governance, risk management, and control arrangements. The plan would detail the audits scheduled, their objectives, and the expected assurance levels.

Risk Management Update

The committee was to receive an update on the council's strategic risks, as presented in risk management update.pdf [risk management update.pdf]. This report would provide an overview of the Strategic Risk Register (SRR) and the associated Heat Map, highlighting key risks and their current status. The report would note that the number of strategic risks remained at 13, with updates on financial resilience, cyber risk, and housing-related risks. Changes to the risk management policy, including the introduction of a risk appetite section and updated financial impact values, were also to be discussed. The committee was asked to note the progress on the SRR and Heat Map, and to recommend the updated risk management policy to Cabinet for approval.