The Audit and Performance Committee of Westminster Council was scheduled to review the council's financial statements, audit plans, and internal audit reports. Key discussions were expected to cover the external audit certification of claims and returns for 2024/25, the draft statement of accounts for 2025/26, and the external auditor's audit plans for both the council and the pension fund. The committee was also set to consider the internal audit annual report and the counter fraud end-of-year report.

External Audit Certification of Claims and Returns 2024/25

The committee was scheduled to review the External Audit Certification of Claims and Returns for the 2024/25 financial year. This report, provided by Grant Thornton, summarised the annual review of grants claimed by the City Council. The focus was on the Housing Benefit subsidy claim, which amounted to £182.1 million. The report indicated that the audit of the Housing Benefit subsidy claim for 2024/25 resulted in no amendments or reductions to the amount claimed. While some minor errors were identified, they were either below financial thresholds or related to subsidy allocation types, not affecting the overall subsidy figure. The report noted that the audit was delayed due to a cyber-incident but was completed in a timely manner once systems were restored. To further improve accuracy, measures such as checking subsidy report entries and a 100% check on claims involving War Pensions as income were being maintained. The total fee for the certification of the council's claim was £74,705.

Review of Draft Statement of Accounts 2025/26

The committee was scheduled to review and approve the draft 2025/26 Statement of Accounts and the Annual Governance Statement. These draft accounts detail the council's financial performance for the year ending 31 March 2026, prepared in line with International Financial Reporting Standards. The draft accounts reported a net asset position of £2.969 billion, a decrease of £241 million from the previous year. This decrease was attributed to liabilities exceeding asset growth, with liabilities increasing due to the recognition of £259 million in long-term lease liabilities for temporary accommodation properties. The report highlighted Westminster City Council's strong position in having audited accounts up to 2024/25 and draft accounts for 2025/26 by the statutory deadline. The committee was asked to approve these draft statements, subject to the public inspection period and the ongoing audit.

External Auditor's Audit Plan (Council)

The committee was to consider the External Auditor's plan for completing the Council Audit for the year ending 31 March 2026. This plan, issued by Grant Thornton, outlined the scope and timing of the audit, identifying significant risks such as management override of controls, the valuation of council dwellings and investment properties, and the valuation and completeness of the business rates appeals provision. The plan also detailed the audit team's approach to materiality, with planning materiality set at £23.8 million for the council. The audit plan also addressed the formation of new entities, Westminster TA LLP and Pension Investment LLP, and the complex transactions associated with them. The proposed fee for the council audit was £547,657.

External Auditor's Audit Plan (Pension Fund)

The committee was scheduled to consider the External Auditor's plan for completing the audit of the City of Westminster Pension Fund for the year ending 31 March 2026. Grant Thornton's audit plan identified significant risks including management override of controls and the valuation of Level 3 investments. Planning materiality for the fund's financial statements was set at £36.5 million. The plan also highlighted additional work related to the fund's cyber incident and a new £50 million investment in a Westminster-owned LLP. The proposed audit fee for the pension fund was £108,370, an increase from the previous year due to additional work on the triennial valuation data testing.

Internal Audit Annual Report 2025/26

The committee was to receive the Head of Internal Audit's annual report, providing an opinion on the adequacy and effectiveness of the Council's framework of governance, risk management, and control environment for 2025/26. The report indicated that reasonable assurance could be provided, with the majority of finalised audit work receiving a positive assurance opinion. Areas where control improvements were required were identified, with action plans in place or already implemented. The report noted that 89% of recommendations from previous audits had been fully implemented. Three audits were designated as Limited Assurance : Maida Vale TMO, Odhams Walk TMO, and IT Strategy and Governance. One Substantial Assurance review was issued for Adult Social Care – Brokerage.

Counter Fraud End of Year Report 2025/26

The committee was scheduled to review the Counter Fraud 2025/26 End of Year report, detailing the work of the Corporate Anti-Fraud Service (CAFS) from 1 April 2025 to 31 March 2026. The report highlighted that CAFS processed 402 new referrals and concluded 305 investigations during the first half of the financial year. The service achieved 110 positive outcomes, preventing fraud worth over £1.3 million and identifying a notional loss of £402,945. The report detailed activity by case types, including housing application fraud, tenancy fraud, and parking investigations. It also outlined the Council's whistleblowing policy and the use of an independent whistleblowing service, Safecall. The report confirmed that the Council's Anti-Fraud and Corruption Strategy 2024/27 is in place to detect, prevent, and respond to fraud and corruption.

Matters Arising and Work Programme

The committee was scheduled to discuss any matters arising from previous meetings, including new or unresolved issues, and to shape the committee's work programme for the municipal year 2026/27. This included reviewing the Action Tracker and considering items for future meetings. An item on Capital Receipts was proposed to be added to the agenda for the next meeting on 3 September 2026, following a discussion in the Value for Money and Transformation Policy and Scrutiny Committee.