The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council met on Thursday 18 January 2024 to review internal audit progress, grant certification work, the status of the 2020/21 audit, and information governance. The committee expressed extreme concern over the lack of progress in signing off the Council's 2020/21 Statement of Accounts and noted the progress made in various audit and certification areas.

Internal Audit Exception, Recommendations and Progress Report Q3

Caroline Glitre, Head of Internal Audit, presented the Q3 report, detailing progress against the Internal Audit Plan for the period 1 October to 31 December 2023. The committee noted that 70% of the annual audit programme had been delivered, with one Limited Assurance report issued concerning Business Continuity Management (BCM). Members welcomed updates on BCM, acknowledging that while documents were not fully updated, the council's response to the Covid-19 pandemic demonstrated effective management. The committee requested that a report on BCM, including recommendations and improvements, be presented to Cabinet.

Regarding ongoing audit actions for Starters, Leavers, and Movers (SLaM), officers explained that the upcoming Oracle Finance and HR system, due to launch in April, would improve the tracking of staff details and data dissemination. The committee also noted that the performance against Key Performance Indicator (KPI) 2, Verification that at least 90% of Critical and High Risks have been mitigated by management at the time of follow up, was 67% for Q3, which was below the target but an improvement on previous quarters. Progress was also noted on the implementation of audit actions for Premises, Licensing, and Gambling policies, with most high-risk recommendations expected to be addressed soon.

The committee resolved to note the work completed on the Internal Audit Q3 report and the specific work undertaken concerning schools.

Grants Certification Work Report 2021/22

Mohammed Ahmed, Chief Accountant, presented the report on Grants Certification. Members congratulated the officers on the accuracy of their work, particularly in relation to the Housing Benefit Subsidy claim, and thanked them for their input and performance.

The committee resolved to note the completion of the certification of the Housing Benefit Subsidy for 2021/22 and the progress made on the 2021/22 & 2022/23 Capital Pooling Return, the 2022/23 Housing Benefit Subsidy certification, and the 2020/21 Teachers' Pensions Audit.

Update on Status of 2020/21 Audit

Lisa Blake, Head of Public Sector Assurance at BDO UK LLP, provided an update on the external audit of the Council's Statement of Accounts. The committee was informed that while the 2020/21 audit had progressed, outstanding work remained, particularly concerning the valuation of infrastructure assets like Brent Cross. BDO teams were returning to this audit following the Christmas break, with additional resources in place.

Significant discussion focused on the whistleblowing complaint and the ongoing review by Grant Thornton UK LLP (GT). BDO confirmed they would liaise with GT regarding the conclusion of the 2020/21 audit in light of the complaint's outcome. A meeting had been held with the Chief Executive and officers before Christmas, with further meetings scheduled with GT in 2024. The committee was assured that work undertaken by GT would be used to minimise duplication.

Lisa Blake announced her retirement from BDO, with Ciaran McLaughlin appointed as her successor. Ciaran McLaughlin confirmed his responsibility for the 2020/21 audit and sought assurance on the satisfactory progress of the work to date. The committee was reminded that audit requirements change annually and that information previously provided might need to be resubmitted.

Members expressed concern about the delays, referencing assurances given at the previous meeting regarding a full update on the whistleblowing complaint's implications. Lisa Blake explained that the complaint spanned several years and a definitive timetable could not be provided until all information evaluations were complete. She clarified a misunderstanding regarding BDO's internal consultation, stating that they were required to consult with their Forensic Team and determine, in conjunction with GT, whether GT's proposed work could be used or if additional information was needed.

Councillor Arjun Mittra moved, and Councillor Peter Zinkin seconded, a motion to amend the recommendation to read: That the Committee noted the lack of progress towards the sign off of the Council's 2020/21 Statement of Accounts. This motion was carried.

SIRO Report

Clair Green, Executive Director of Assurance, presented the first annual Senior Information Risk Owner (SIRO) report. The report summarised information governance risks, issues, and the council's activities to ensure appropriate governance of information, assuring the committee that policies and practices align with legal obligations and good governance principles. Members noted that cyber security updates would be included in the next risk register. The committee agreed to consider further steps to promote good practice in information governance.

The committee resolved to note the council's activities and position regarding information risk and to consider any further steps for promoting good practice in information governance.

Committee Forward Work Programme

The committee noted the remaining meetings scheduled for the current municipal year and that the council calendar for the next municipal year had been circulated.

Any Item(s) that the Chair Decides are Urgent

The Chair raised an urgent item concerning the minutes of the previous meeting on 27 November 2023, specifically quoting an extract regarding the status of the 2020/21 audit and the whistleblowing complaint. This highlighted the ongoing nature of discussions around the audit and the complaint.