The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council met on Thursday 11 June 2026 to review the Council's risk management, financial governance, and audit arrangements. Key discussions included the quarterly risk report, the Corporate Anti-Fraud Team's annual report and strategy, and the external auditors' planning report for 2025/26. The committee also reviewed the Council's Annual Governance Statement and Code of Corporate Governance for the upcoming year, alongside the internal audit's annual conclusion and plan.

Quarterly Risks Report - Q4 2025/26

The committee received an update on the Council's corporate risk register, noting 189 open risks, of which 24 were strategic and 165 were service risks. Seven strategic risks and 20 service risks were rated as high level. The report highlighted that the majority of these risks were finance-related or concerned statutory duties. Councillor Danny Rich, The Mayor of Barnet, raised concerns about joint risks where the Council does not have full control, and how the risk of partners is assessed and managed. Elaine Clarke, Head of Programmes, Performance & Risk, explained that for joint risks with strategic partners like The Barnet Group and Capita CSG, controls and mitigations are managed by the partner, but these risks are jointly reviewed quarterly and signed off by the Council. Councillor Beverley Kotey inquired about the increase in risk STR18, Funding uncertainty due to reduction in local taxation income, and Elaine Clarke attributed this to the end of the contract with the current supplier, a backlog at the Valuation Office Agency, and the continuation of the cost of living crisis. Councillor Ajith Menon asked about the procedural aspects of risk management, specifically how residual risk scores change when treatment actions are completed and the response option moves to 'tolerate'. Elaine Clarke clarified that treatment actions need to be significant enough to affect the scoring, and that risks remain on the register at a 'tolerate' level, not 'high', once the target score is reached. Councillor Alex Prager, Chair of the Governance, Audit, Risk Management and Standards Committee, commended officers for their work in improving the Council's governance, risk management, and internal control arrangements, noting a positive upward trajectory.

Corporate Anti-Fraud Team (CAFT) Annual Report 2025/26 & Anti-Fraud Strategy and Annual Plan 2026/27

Yvette Lynch, Head of Counter Fraud and Trading Standards, presented the Corporate Anti-Fraud Team's (CAFT) annual report for 2025-26 and the strategy and plan for 2026-27. Key achievements included investigating 131 cases of corporate fraud, leading to three successful criminal prosecutions and eight disciplinary actions, with £87,000 in costs recovered. Social care fraud prevention saved £32,000, and 14 cases were awaiting court action. Disabled blue badge fraud saw 32 individuals prosecuted for misuse, with £27,000 in costs awarded. Tenancy fraud investigations identified over 400 cases, recovering 59 social housing properties valued at £3.89 million. Councillor Danny Rich commended the report, highlighting that fraud against the Council is fraud against all council tax payers. He sought clarification on the recovery of £87,000 identified for civil recovery, and Yvette Lynch explained that this often involves adjusting future bills rather than direct cash recovery. Councillor Ajith Menon found the report interesting, particularly the categorisation of fraud amounts, and requested a table in future reports that consolidates all savings, both tangible and intangible. Yvette Lynch explained the team's funding model, which includes service level agreements with Barnet Homes and Parking, and income from proceeds of crime investigations. The committee approved the recommendations, noting a typo correction regarding the total fraud amount awaiting prosecution.

LBB Part 5 Proceeds of Crime Act 2002 (POCA) Policies

Yvette Lynch presented new organisational policies covering cash seizure, account freezing, forfeiture, and listed asset forfeiture under the Proceeds of Crime Act 2002 (POCA). These policies aim to provide a clear framework for the team to use civil recovery powers to seize and forfeit unlawfully obtained funds. Councillor Danny Rich declared an interest as a presiding magistrate and asked about the percentage shared with the Home Office and Ministry of Justice. Yvette Lynch clarified the percentages for Crown Court confiscations and civil recovery, noting that all funds must go through the Home Office for dissemination. The committee approved the adoption of these policies as formal components of the council's counter-fraud framework.

SIRO Annual Report 2025/26

Ali Saka, Head of Assurance and Business Development, presented the Senior Information Risk Owner (SIRO) annual report, summarising information governance risks and the Council's management of these risks and compliance with legal obligations. The report confirmed that information governance arrangements remain effective, with ongoing reviews and improvements. Councillor Beverley Kotey raised concerns about the increase in FOI and EIR requests and the reduction in the timeliness of responses, asking how the Council would ensure this does not worsen. Ali Saka explained that a project is underway to optimise resource utilisation and leverage technology, including proactive data publication. Councillor Kotey also questioned the compliance rate for data protection e-learnings, particularly in Family Services, and what actions were being taken to increase this. Ali Saka detailed the robust process of chasing individuals and line managers, escalating to senior management, and the introduction of system access restrictions for non-compliant staff. The committee noted the contents of the report.

Internal Audit Progress Report Q4 2025/26, Head of Internal Audit Annual Conclusion 2025/26 and Annual Internal Audit Plan 2026/27

Adam Calmonson, Head of Internal Audit, presented several reports. The Annual Conclusion for 2025/26 was Reasonable Assurance, an improvement from Limited Assurance in the prior year, attributed to strengthened governance, senior oversight, a more stable pattern of audit results, and improved audit action implementation (74% from 64%). However, action implementation remains below the 90% target, with weaknesses in procurement, statutory compliance, and corporate governance. Two limited assurance reports were issued in Q4: one on corporate building health and safety compliance, identifying issues with data completeness and reliability regarding asbestos and Legionella; and another on officer declarations of interests, highlighting a lack of clear ownership and oversight. Management has agreed actions for these, with target implementation dates. Councillor Danny Rich questioned the responsibility for school deficits, and it was clarified that the chair of governors and governors are responsible, with the Council able to take over financial responsibility before closing a school. Chris Smith, Assistant Director, Estates and Decarbonisation, provided an update on the asbestos and Legionella issues, stating that a new database is being transitioned to, which will improve management, and that there is sufficient budget allocated as it is a top priority. The committee approved the Internal Audit Annual Plan for 2026/27, noting the strategy and charter.

Evaluating the Impact and Effectiveness of the GARMS Committee: Annual Self-Assessment

Adam Calmonson presented the outcome of two CIPFA self-assessments reviewing the GARMS Committee's effectiveness. The assessment was positive, confirming the Committee operates as a dedicated Audit and Assurance Committee with an appropriate focus. Developmental areas identified include strengthening shared understanding of the Committee's role, supporting member knowledge and skills, and evidencing effectiveness. Councillor Beverley Kotey asked what the Committee could do to help officers deliver improvements in tracking audit recommendations, and Adam Calmonson explained the process of officers attending committee meetings if actions slip three times, and the committee's responsibility in reflecting on action implementation. He also discussed the independence of the Internal Audit role. The committee noted the outcomes and agreed the proposed areas for development.

Treasury Management Outturn 2025/26

Nick Stylianou, Chief Accountant, presented the annual Treasury Management Report. Borrowing increased to £1.317 billion, an increase of £159 million, to invest in the capital programme. Cash balances were maintained above the £45 million liquidity buffer. The report confirmed compliance with the CIPFA Treasury Management Code and Prudential Indicators. Councillor Ajith Menon asked clarifying questions about debt maturity, projected MRP, and accumulated internal borrowing. Councillor Danny Rich inquired about the risk of in-year borrowing reaching the authorised limit and how this limit is set and reviewed. Nick Stylianou explained that the limit is reviewed annually and comes to the committee for scrutiny, and that the Council operates comfortably within both operational and authorised limits. The committee noted the annual Treasury Management Report.

Financial Governance Self-assessment

Elaine Clarke, Head of Programmes, Performance and Risk, introduced the report on the review of financial governance arrangements. A self-assessment checklist was used, and items rated amber or red were incorporated into an action plan. Significant progress has been made, with 44 amber items and one red item remaining. An external assurance review by CIPFA provided feedback that the Council is generally well-run but needs to show pace in reducing the budget gap. Councillor Beverley Kotey asked how the Council would act on this unofficial advice. Elaine Clarke outlined the approach to innovation, understanding cost drivers, and the role of the new Finance and Growth scrutiny committee. The committee noted the report and the ongoing monitoring of the action plan.

Annual Governance Statement 2025/26 and Code of Corporate Governance 2026/27

Andrew Charlwood, Head of Governance, presented the Annual Governance Statement (AGS) and the Code of Corporate Governance. The AGS outlines the Council's governance framework and significant governance issues, with updates on progress. New issues identified in 2025/26 included procurement and contract management, and optimising processes and data quality in Oracle. Closed issues included auditor capacity and the impact of audits on accounts, housing regulation, and pensions prepayment. The Code of Corporate Governance for 2026/27 was prepared in accordance with CIPFA guidance. The committee approved the AGS and the Code of Corporate Governance.

Annual Report of the GARMS Committee 2025/26

Claire Green, Executive Director of Assurance and Public Protection, presented the annual report summarising the committee's work over the past year. Councillor Beverley Kotey congratulated the team on achieving reasonable assurance, an improvement from the previous year, and inquired about plans to embed these improvements, particularly regarding slippage in the final quarter. Adam Calmonson, Head of Internal Audit, explained that while the overall percentage improved, quarter-to-quarter performance was inconsistent. He detailed processes implemented to improve action implementation, including earlier outreach to officers and increased visibility at the Council's Engaged and Effective Board. The committee noted and approved the annual report.

Committee Forward Work Programme

Councillor Alex Prager, Chair, discussed the committee's forward work programme, emphasizing a commitment to maintaining published committee dates where possible, while acknowledging the reactive nature of the committee to external audit slippage. A pledge was made to avoid frequent date changes. Councillor Ajith Menon inquired about the dry run for the upcoming year's audit approval, aiming for November. The Chair confirmed the legal backstop date of 31 January 2027 for audit sign-off, with a committee meeting on 26 November as a target for external audit sign-off. The Chair also requested officers to commence a recruitment process to fill the vacancy for an independent member of the committee. The committee noted the forward work programme and agreed to the recruitment process.

The meeting concluded at 9:14 pm.