The Audit Committee of Hammersmith and Fulham Council met on Tuesday 23 June 2026 to review the council's financial statements, audit plans, and internal audit performance. Key decisions included noting the external audit plan for the pension fund and the Head of Internal Audit's annual report, and agreeing to present the Audit Committee's annual report to Full Council.

Statement of Accounts 2025/26 Update

James Newman, the Deputy Section 151 Officer, provided a verbal update on the 2025/26 statement of accounts. He confirmed that the draft statement of accounts was substantially complete and would be published by the statutory deadline of 30 June 2026. The inspection period for the accounts would commence on 1 July and be open for 30 working days. The pension fund accounts had also been completed and were included in the draft statement. The annual governance statement, located at the back of the statement of accounts, had been completed and signed off by Senior Leadership Team (SLT), awaiting the Leader's final signature. Grant Thornton, the external auditors, were scheduled to begin their audit work on 22 June, with the audit expected to be completed by the end of September. The final accounts and audit report would be presented to the Audit Committee on 20 October 2026. Mr. Newman stated that the council was steady as she goes and not expecting any issues with the timely publication of the draft accounts. The committee noted this update.

External Audit Plan (Pension Fund) 2025/26

The committee received the external audit plan for the London Borough of Hammersmith & Fulham Pension Fund for the year ending 31 March 2026, prepared by Grant Thornton UK LLP. Matt Dean, the key audit partner, and Ollie, the audit manager, presented the plan. They highlighted two significant audit risks: management override of controls and the valuation of Level 3 investments. The audit plan also identified other risks, including actuarial valuation disclosures, Level 2 investments, cash, financial instruments, and cyber incidents. A revised approach to materiality had been introduced, aligning the materiality for the fund account and net asset statement based on a percentage of gross investment assets. The proposed audit fee included an additional £5,000 for work on testing member data for the 2025 triennial actuarial valuation. Grant Thornton confirmed they remained independent of the fund and that fieldwork had commenced, progressing in line with the plan. The committee noted the report, with Councillor Charlotte Moar commenting that while she was never happy about fee increases, this one was justified given the work required on the triennial valuation. Councillor Wesley Harcourt asked for clarification on the management override of controls risk, which Ollie explained was a presumed risk on all audits, governed by auditing standards, where management could potentially override internal control processes. This risk was standard across all audits and was managed through specific procedures. The committee agreed to note the external audit plan.

Head of Internal Audit's Annual Report 2025/26

Cindy Niki Akshapong, the new Head of Internal Audit, presented the annual report, providing assurance on the adequacy and effectiveness of the council's governance, risk management, and control framework. For the year 2025/26, the council received 87% positive assurance, with three audits receiving substantial assurance, the highest rating. Two audits received limited assurance : St. Mary's RC Primary School and lift maintenance. For lift maintenance, the service had stated they had implemented all recommendations, and an immediate follow-up was in progress, with initial feedback being positive. A similar follow-up was underway for St. Mary's. Ms. Akshapong highlighted that 98% of the 89 recommendations followed up during the year were fully or partly implemented, with 82 recorded as fully implemented. This high implementation rate was attributed to the drive from SLT Assurance.

Richard Shwe, Executive Director of Housing and Neighbourhoods, added context to the lift maintenance audit, stating the council was responsible for over 200 lifts, with 100% compliance in their big six safety checks and 98.3% lift availability. Councillor Charlotte Moar questioned how a limited assurance rating could be given if performance was reported as 100%. Mr. Shwe explained that the audit identified issues with performance monitoring, tracking, and reporting, which had since been rectified with weekly updates and improved remedial action processes. He assured the committee that the issues were related to statutory compliance rather than safety, and that the team was addressing them promptly. Councillor Moar also raised concerns about the delays in implementing medium-priority actions for housing voids and no recourse to public funds, which had missed their implementation dates. Management explained that the housing restructure and a significant inspection by the Regulator of Social Housing had impacted timescales, but that progress was being made and the regulator had praised their improvements.

Regarding the digital audit plan, it was noted that it had not yet been agreed due to being out of contract with Mazars. However, approval to start scoping the digital plan had been received, with a meeting scheduled and a procurement board review planned for the following week, aiming for a mid-July go-live. The committee agreed to note the Head of Internal Audit's report.

Annual Report of the Audit Committee for Municipal Year 2025/26

David Hughes, Director of Audit, Fraud, Risk and Insurance, presented the annual report of the Audit Committee for the municipal year 2025/26. He explained that this report, considered good practice by CIPFA, demonstrated the committee's work and sources of assurance to Full Council. The report included the committee's review of effectiveness, which had led to actions such as the appointment of an independent member, Charlotte Moar. Councillor Adrian Pascu-Tulbure confirmed the report was an accurate reflection of the committee's activities. Charlotte Moar suggested that the final version of the report be signed off in October, after other relevant annual reports, such as treasury management and risk management, had been considered. She also proposed amendments to better reflect the committee's opinion on limited audit assurance reports and any issues to be escalated to the council. The committee agreed to note the report and present it to Full Council, with revisions to be made based on the discussion.

Work Programme for 2026/27

David Hughes presented the proposed work programme for the municipal year 2026/27, outlining standard items and inviting the committee to suggest areas for further reports. Charlotte Moar highlighted the mandatory requirement for members to have a private meeting with the external auditor before signing off the annual report and accounts, which needed to be scheduled for October. The committee agreed to note the work programme.

Corporate Anti-Fraud Service Annual Report – 1 April 2025 to 31 March 2026

The committee received the annual report of the Corporate Anti-Fraud Service (CAFS). Mark Dalton, Fraud Manager, presented the report, highlighting that between 1 April 2025 and 31 March 2026, the council achieved 104 positive outcomes, preventing an estimated £994,313 in fraud and recovering £475,553 through confiscation orders. Councillor Adrian Pascu-Tulbure inquired about the increase in internal fraud cases from four to eleven and the issues involved. Mr. Hughes stated that this would be taken away for a detailed and considered answer. Regarding the £5,000 spent on press releases, it was clarified that this was a notional value for the deterrent effect, not the cost of the press release itself. Councillor Charlotte Moar asked if spending more on anti-fraud measures, particularly tenancy fraud, could lead to greater savings. It was confirmed that the council was looking to invest more of the recovered funds into tenancy fraud investigations, as this was a significant issue that deprived the council of homes. The committee then moved into a reserve session to discuss potentially exempt information.

The committee agreed to note the Corporate Anti-Fraud Service Annual Report.