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 decisions included noting the external auditor's planning report for 2025-26, approving new policies for cash seizure and asset forfeiture under the Proceeds of Crime Act 2002, and noting the Senior Information Risk Owner's annual report. The committee also received updates on the council's quarterly risk report, the Corporate Anti-Fraud Team's annual performance, and the internal audit progress and annual conclusion for 2025-26.

Quarterly Risks Report - Q4 2025-26

The committee received an update on the council's corporate risk register for the fourth quarter of 2025-26, covering January to March 2026. At that time, there were 189 open risks, with 24 classified as strategic and 165 as service risks. Of these, seven strategic risks and twenty service risks were rated as high-level. The majority of these high-level risks were related to finance or statutory duties. Councillor Danny Rich raised concerns about the increase in the risk rating for Funding uncertainty due to reduction in local taxation income, citing the council's housing development plans and new council tax income. Elaine Clarke, Head of Programmes, Performance & Risk, explained that this increase was due to several factors: the operational transition to a new supplier for council tax services, a backlog of property bandings by the Valuation Office Agency causing billing delays and hardship, and the ongoing cost of living crisis impacting discretionary support funds. Councillor Rich also inquired about the risk of falling pupil numbers and potential school closures, which Elaine Clarke confirmed was being actively managed, with several schools already operating in deficit and recovery plans in place.

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. The team investigated 131 cases of corporate fraud, leading to three successful criminal prosecutions and eight disciplinary actions. Civil recovery identified £87,000 in costs awarded back to the council, with a further £32,000 in social care fraud prevented. The team also prosecuted 32 individuals for misusing cancelled blue badges, recovering £27,000 in costs. Tenancy fraud investigations led to the recovery of 59 social housing properties, valued at £3.89 million in savings. Councillor Danny Rich commended the report, asking for clarification on the recovery of £87,000 identified for civil recovery. Yvette Lynch explained that this amount was primarily related to council tax, and adjustments were made to future bills rather than direct recovery. Councillor Ajith Menon requested a table in the executive summary consolidating all savings, tangible and non-tangible, to better understand the value for money of CAFT's activities. The committee approved the four recommendations in the report, including noting the CAFT annual report and approving the anti-fraud strategy and annual plan for 2026-27.

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

Yvette Lynch, Head of Counter Fraud and Trading Standards, presented new organisational policies covering cash seizure, Part 5 POCA account freezing and forfeiture, and listed assets forfeiture. These policies aim to provide a clear, legally robust framework for exercising 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 different sharing arrangements for Crown Court confiscations versus civil recovery powers. 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, introduced the Senior Information Risk Owner (SIRO) annual report for 2025-26. The report summarised information governance risks, management of these risks, and the council's compliance with legal obligations. It confirmed that information governance arrangements remain effective, with ongoing reviews and improvements. Councillor Beverley Kotey questioned the timeliness of responses to Freedom of Information (FOI) and Environmental Information Regulation (EIR) requests, noting an increase in requests and a decrease in timeliness. Ali Saka explained that a project is underway to improve processes, utilise technology, and proactively publish data. Councillor Kotey also inquired about compliance rates for data protection e-learnings, particularly in the Family Services Division. Adam Calmonson, Head of Internal Audit, explained the robust process for chasing staff and line managers, escalating to senior management, and the introduction of system access restrictions for non-compliance. The committee noted the contents of the SIRO Annual 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 the previous year's Limited Assurance, driven by strengthened governance, senior oversight, and improved audit action implementation. However, action implementation remained below the 90% target. Two limited assurance reports were issued in Q4: one on corporate building health and safety compliance, identifying issues with data completeness and oversight of statutory duties (asbestos and legionella), and another on officer declarations of interest, highlighting a lack of central records and oversight. Management has agreed actions for these reports with implementation dates. The committee approved the Internal Audit Annual Plan for 2026/27, noting its risk-based approach and flexibility. Councillor Danny Rich questioned the responsibility for school finances when a school is running at a deficit, and Adam Calmonson clarified that governing bodies are primarily responsible, but the council can take responsibility for finances before closing a school. Chris Smith, Assistant Director of Estates and Decarbonisation, provided an update on the asbestos and legionella issues, stating that a new database is being implemented and there is sufficient budget to address these priorities. The committee noted the reports and approved the recommendations.

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

Adam Calmonson presented the outcome of two CIPFA self-assessments reviewing the effectiveness of the GARMS Committee. The assessments were positive, confirming the committee operates as a dedicated audit and assurance body with an appropriate focus. However, they identified areas for development, including strengthening shared understanding of the committee's role, supporting member knowledge and skills, and improving how effectiveness and impact are evidenced. Councillor Beverley Kotey asked how the committee could work with officers to improve tracking of audit recommendations, and Adam Calmonson highlighted the process of bringing officers before the committee for repeated non-implementation. The committee noted and approved the proposed areas for development and improvement.

External Auditor's Planning Report 2025/26

Paul Dossett, Key Audit Partner, presented the external auditor's planning report for 2025-26. He highlighted the council's continued reliance on Exceptional Financial Support (EFS) and the focus on financial sustainability. Issues related to subsidiaries and joint venture partnerships were also noted, with recommendations made and adopted by management. Key recommendations were also issued concerning the procurement process. The committee noted the report and provided comments.

Treasury Management Outturn 2025/26

Nick Stylianou, Chief Accountant, presented the annual Treasury Management Report. Borrowing increased to £1.317 billion, primarily to invest in the capital programme. Cash balances were maintained above the £45 million liquidity buffer, and the council remained compliant with its Treasury Management Code and prudential indicators. Councillor Ajith Menon asked clarifying questions about debt maturity, the projected increase in MRP over 30-40 years, and the drop in accumulated internal borrowing. Nick Stylianou explained the annuity method for MRP calculation and the externalisation of borrowing. Councillor Menon also inquired about the risk of in-year borrowing reaching the authorised limit, and Nick Stylianou confirmed the limit is reviewed annually and that the council is operating comfortably within both operational and authorised limits. The committee noted the report.

Financial Governance Self-assessment

Elaine Clarke, Head of Programmes, Performance & Risk, presented the findings of a financial governance review conducted in autumn 2024, ahead of EFS applications. The review used best practice guidance to create a checklist, identifying 44 amber-rated items and one red-rated item, which have been incorporated into an action plan. An external assurance review by CIPFA in May 2026 provided unofficial feedback that the council was generally well-run but needed to show pace in reducing the budget gap. Councillor Beverley Kotey asked how the council would work on this unofficial advice, and Elaine Clarke mentioned papers on financial sustainability, innovation, and cost drivers that would be brought forward. The committee noted the report and made recommendations as they saw appropriate.

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

Andrew Charlwood, Head of Governance, presented the Annual Governance Statement (AGS) for 2025/26 and the Code of Corporate Governance for 2026/27. The AGS outlines the council's governance framework and significant governance issues, detailing progress made in addressing them. The Code of Corporate Governance has been prepared in accordance with CIPFA's framework. The committee approved the AGS, the Code of Corporate Governance, and the assessment of compliance with the Delivering Good Governance Core Principles.

Annual Report of the GARMS Committee 2025/26

Claire Green, Executive Director of Assurance and Public Protection, introduced the annual report summarising the committee's work over the past year. Adam Calmonson, Head of Internal Audit, noted that while the overall implementation rate of audit actions improved to 74% from 64% in the prior year, it remained below the 90% target, with slippage in the final quarter. He explained that responsibility for action implementation lies with officers, and Internal Audit provides support and visibility. Councillor Beverley Kotey inquired about the process for addressing repeated slippage of audit actions, and it was confirmed that officers would be brought before the committee if actions were not implemented on three separate occasions. The committee noted and approved the annual report.

Committee Forward Work Programme

Councillor Alex Prager, Chair of the committee, discussed the forward work programme, noting the importance of maintaining stable committee dates. He highlighted that the committee meeting scheduled for 4 February 2027 was likely to move to the week commencing 18 January 2027 to accommodate the external audit sign-off deadline of 31 January 2027. Councillor Prager also pledged to minimise date changes for future meetings. The committee noted the forward work programme. Councillor Prager also raised the issue of a vacancy for an independent member on the committee, with one position currently filled by Richard Harbord and a previous member, Jack Chan, having stood down in November 2024. The committee agreed to instruct officers to commence a recruitment process to fill the vacancy. The meeting concluded at 9:14 pm.