The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council met on Thursday 11 June 2026. The meeting, chaired by Councillor Alex Prager, focused on the Council's financial sustainability and governance arrangements. Key decisions included the noting of the 2025/26 external audit planning reports and the MHCLG report on rebuilding audit assurance. The committee also reviewed the Corporate Anti-Fraud Team's annual report and strategy, and approved new organisational policies related to cash seizure and asset forfeiture.

External Audit Planning and Financial Health

The committee received the external auditors' planning report for the 2025/26 financial year, which highlighted the ongoing challenges of rebuilding audit assurance following previous disclaimed opinions. Grant Thornton, the external auditors, outlined their planned procedures, focusing on in-year transactions and closing balances. A significant discussion took place regarding the Council's financial sustainability, with a funding gap of approximately £80 million identified. The Council is continuing to make representations to the government and the GLA for grant requirements to meet the higher costs of delivering larger properties. The committee noted the external auditors' plans and the MHCLG report on rebuilding audit assurance.

Counter-Fraud and Anti-Fraud Measures

Yvette Lynch, Head of Counter Fraud and Trading Standards, presented the Corporate Anti-Fraud Team's (CAFT) annual report for 2025-26. The report detailed a significant increase in investigated cases of corporate fraud, with successful criminal prosecutions and disciplinary actions. Notably, £87,000 in costs were identified for civil recovery, and £3.89 million in savings were identified through tenancy fraud investigations, including the recovery of 59 social housing properties. The committee also approved new organisational policies related to cash seizure, account freezing, forfeiture, and listed asset forfeiture, which expand the Council's powers to seize and forfeit unlawfully obtained funds.

Internal Audit and Governance Review

Adam Calmonson, Head of Internal Audit, presented the Internal Audit Progress Report for Q4 2025-26, the Annual Conclusion for 2025/26, and the Annual Internal Audit Plan for 2026/27. The Annual Conclusion indicated Reasonable Assurance, an improvement from the previous year, driven by strengthened governance and oversight, and better implementation of audit actions. However, areas such as procurement, statutory compliance, and corporate governance controls still require improvement. The committee also reviewed the evaluation of the GARMS Committee's effectiveness, which confirmed its role as a dedicated audit and assurance committee but identified developmental areas, including strengthening shared understanding and member knowledge.

Financial Governance and Treasury Management

The committee received a report on the financial governance review, which highlighted significant progress in implementing action plans, although 44 items remained rated amber and one red. An external assurance review by CIPFA indicated that the Council was generally well-run but stressed the need for pace and action in reducing the budget gap. The Treasury Management Outturn report for 2025-26 revealed an increase in total borrowing to £1.317 billion, primarily to fund the capital programme. Cash balances were maintained above the minimum liquidity buffer, and the Council confirmed compliance with its Treasury Management Code and Prudential Indicators.

Annual Governance Statement and Code of Corporate Governance

Andrew Charlwood, Head of Governance, presented the Annual Governance Statement for 2025/26 and the Code of Corporate Governance for 2026/27. The AGS outlined the Council's governance framework and highlighted significant governance issues, including those carried forward from the previous year and new emerging issues. The Code of Corporate Governance, prepared in accordance with CIPFA's framework, sets out principles and sub-principles of good governance. The committee approved both the AGS and the Code of Corporate Governance.

Forward Work Programme and Committee Membership

The committee reviewed its forward work programme, noting that it is reactive to ongoing issues such as external audit slippage. A pledge was made to minimise changes to committee dates. The chair also initiated a recruitment process to fill a vacancy for an independent member of the committee.

The meeting concluded with thanks to the officers and members for their contributions.