The Audit Committee of Hackney Council is scheduled to convene on Wednesday, 17 June 2026. The meeting's agenda includes a review of the external audit plan for 2025/26, an update on treasury management activities, and a discussion of the corporate risk register. Additionally, the committee will receive the internal audit annual report for 2025/26 and the annual fraud and irregularity report for the same period.

External Audit Plan 2025/26

The committee is scheduled to consider the External Audit Plan for 2025/26, as prepared by the Council's external auditors, Forvis Mazars LLP. This plan outlines the auditors' approach to auditing the Council's accounts for the financial year ending 31 March 2026. It details the audit scope, timeline, materiality thresholds, identified risks, approach to Value for Money (VFM) assessments, and confirmation of auditor independence. The plan highlights significant risks such as management override of controls, valuation of property, plant and equipment, and investment properties. It also identifies enhanced risks related to IFRS 16 Leases and PFI. The report details the proposed audit fees for 2025/26, noting an increase for the main Council audit and a decrease for the Pension Fund audit.

Treasury Management Update Report

A Treasury Management Update Report will be presented, covering activities from April 2026 to May 2026. This report aims to provide the Audit Committee with an overview of the Council's investment and borrowing arrangements, in line with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management. The report notes economic highlights such as GDP growth, inflation rates, and the labour market, as well as the Bank of England's Monetary Policy Committee's decision on the Bank Rate. It details borrowing and debt activity, including the Council's current external borrowing of £343 million. The report also covers investment policy and activity, noting a decrease in average daily cash balances and investments placed in highly rated UK institutions. Counterparty updates and a credit score analysis are provided, indicating strong counterparty credit quality. The report compares interest earnings for April-May 2026 with the same period in 2025/26, noting a reduction due to lower cash balances and declining interest rates.

Corporate Risk Register

The Corporate Risk Register for June 2026 is scheduled for review. This report updates members on the current register, outlining how risks within the Council are identified and managed throughout the financial year. It assists the committee in its role of overseeing corporate governance. Notable risks highlighted include the Council's Financial Position, with a predicted overspend of £8.3 million for the current financial year even after utilising reserves, driven by increasing costs in Temporary Accommodation and Adult/Children's Social Care. Cyber Security is another significant risk, with ongoing efforts to defend against new vulnerabilities. Other risks include Workforce impacts from budgetary pressures, Corporate Resilience, safeguarding of persons, Temporary Accommodation pressures, Climate Change, New Legislation, and the Corporate Transformation Programme. The report also details controls in place to manage these risks, such as spend control measures, 'invest to save' programmes, and project and programme management for the transformation programme.

Internal Audit Annual Report 2025/26

The Internal Audit Annual Report for 2025/26 will be presented, detailing the performance of the Internal Audit service during the year and the areas of work undertaken. It will include an opinion on the soundness of the control environment in place to minimise risk to the Council. The report summarises assurance levels from completed audits, noting a slight decline in the percentage of 'Significant' and 'Reasonable' assurance rated audits compared to the previous year, though overall stability is indicated. It also details the priority of recommendations made, with a significant number categorised as 'High' or 'Medium'. The report provides an overall assurance opinion of 'Reasonable', concluding that the Council's control framework is adequate despite ongoing challenges. Key themes identified include ICT Audits, Key Financial Systems, and Risk Management. The report also outlines management's response to audit recommendations, noting that 45% of high priority recommendations were fully implemented and 45% partially implemented by the agreed timescale.

Annual Fraud & Irregularity Report 2025/26

The Annual Fraud and Irregularity Report for 2025/26 will be presented, providing a status report and analysis of reported fraud and irregularity within Hackney. The report highlights the tangible financial outcomes from fraud investigation work, estimating significant savings from investigations into Tenancy Fraud, No Recourse to Public Funds, Blue Badge misuse, Proceeds of Crime Act cases, and Non-Financial Irregularities. It details the work of the Audit Investigation Team (AIT) and the Tenancy Fraud Team (TFT), comparing referral numbers and outcomes over several years. The report includes a breakdown of referrals by directorate and type, and an analysis of investigation outcomes such as dismissals, prosecutions, and recovered properties. It also covers Blue Badge fraud, Migrant Children and Families Team (MCFT) investigations, and Tenancy Fraud investigations, including the recovery of properties and cancellation of housing applications and Right to Buy claims. The National Fraud Initiative (NFI) 2024 outcomes are also presented, detailing cleared and ongoing matches across various categories. Future developments include proactive fraud plans, continued work with partners, and the development of a fraud risk register.

Audit Committee Work Programme

The committee will review its work programme for upcoming meetings, including scheduled items for 17 June 2026, 29 October 2026, 26 January 2027, and April 2027. These items include the appointment of the Chair and Vice Chair, noting the Terms of Reference, external audit updates, treasury management reports, corporate risk register reviews, internal audit reports, and the annual fraud and irregularity report. The work programme also includes specific deep dives and the approval of the Treasury Management Strategy for 2026/27 and the Internal Audit Plan for 2026/27.