The Audit and Risk Management Committee of Bromley Council was scheduled to discuss the council's financial performance for the 2024-25 financial year, review the progress of internal audits and counter-fraud activities, and consider the internal audit plan for the upcoming period. The committee was also set to examine the council's statement of accounts and the findings of the external audit.

Audit Results Report 2024-25

The committee was scheduled to review the external auditor's reports for the 2024-25 financial year, covering both the main council accounts and the pension fund accounts. These reports, provided by Ernst & Young LLP (EY), detail the findings of the audit, including any identified risks and recommendations. The Audit Results Report for the main council accounts indicated that a disclaimed opinion was anticipated due to time constraints in meeting statutory deadlines. This was attributed to ongoing issues with the quality and completeness of supporting evidence provided during the audit, as well as capacity issues within the finance team. The report also highlighted a weakness in governance arrangements, although arrangements for financial sustainability were deemed adequate. For the Bromley Pension Fund, EY's audit results report indicated that the financial statements were expected to receive an unqualified opinion, meaning they were considered to give a true and fair view of the fund's financial position. However, the report did note some misstatements and disclosure issues that management had agreed to amend.

Statement of Accounts 2024-25

The committee was asked to approve the council's statutory accounts for the 2024-25 financial year, which were to be presented in a format prescribed by the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Local Authority Accounting. The report noted that the final adjustments to the accounts had not yet been agreed, and the audit opinion was still awaited. The Statement of Accounts reflects the outturn position for both capital and revenue, with detailed information having been reported to the Executive and individual Policy Development and Scrutiny Committees. The committee was also asked to authorise the Chairman to sign the Statement of Accounts and the letters of representation on behalf of the council.

Internal Audit and Counter Fraud Progress Report

This report was scheduled to provide an update on internal audit activity and outcomes for the 2025-26 financial year. It detailed progress against the internal audit plan, including the assurance opinions given for completed audits. The report indicated that 84% of finalised audits had received 'Reasonable' or 'Substantial' assurance opinions, with an indicative overall opinion of 'Reasonable' for the council's systems of risk management, governance, and control for the 2025-26 year, though this was provisional. The report also highlighted themes from audit reviews, including resourcing pressures, the need to enhance risk management, improvements in decision-making and case file management, and the importance of quality assurance.

The report also provided an update on counter-fraud activities, including compliance with the Economic Crime and Corporate Transparency Act 2023, proactive counter-fraud work in Temporary Accommodation properties which had resulted in significant savings, and participation in data matching exercises through the National Fraud Initiative and the London Fraud Hub. Statistics on fraud referrals and investigations were also presented, detailing outcomes for Blue Badge fraud and other types of fraud.

Internal Audit Plan, Strategy and Charter

The committee was asked to approve the draft Internal Audit Plan for April to October 2026. This plan is developed based on a risk assessment of the council's strategies, objectives, and risks, incorporating input from senior management and considering external reports on emerging risks. The plan aims to provide assurance on a broad range of risks and service areas to support an overall conclusion on the council's governance, risk management, and control frameworks. The report noted that due to vacancies, the council would rely on co-sourcing arrangements with external providers to deliver the plan. The committee was also asked to approve the Internal Audit Strategy, which outlines key objectives for service development over the next three years, and the Internal Audit Mandate and Charter, which defines the function's authority, independence, and reporting relationships, updated to reflect the Global Internal Audit Standards.

Matters Outstanding from the Last Meeting

The committee was scheduled to review a list of matters outstanding from previous meetings, with updates on their progress. This included issues related to the council's finance function capacity, the potential claim for compensation from the Department for Education regarding a special school project, and the development of a risk management template.

Verbal Updates

Verbal updates were also scheduled from the Assistant Director of Public Protection and the Head of Housing and Compliance. These updates would likely provide further information on specific areas of ongoing work or emerging issues within their respective departments.