The Governance, Audit, Risk Management and Standards Committee met on Monday 20 July 2026 to review the draft Statement of Accounts for 2025-2026, discuss the audit strategy for the year, and examine the directorate's risk register. Key decisions included noting the draft Statement of Accounts and approving the audit strategy for the Council and the Pension Fund.

Draft Statement of Accounts and Audit Strategy

The committee reviewed the draft Statement of Accounts for 2025-2026, which indicated an in-year surplus of £3 million, contributing to a general fund balance of £10 million. The Housing Revenue Account (HRA) reported a surplus of £2.3 million, while the Collection Fund showed a deficit of £3.84 million. The draft Statement of Accounts also highlighted a net asset position of £1,036 million as at 31 March 2026.

The external auditors, Forvis Mazars LLP, presented their Audit Strategy Memorandum for both the Council and the Pension Fund. They outlined their planned scope, approach, and timeline for the audit, identifying significant risks such as management override of controls, the valuation of pension liabilities and property, and the implementation of IFRS 16. The auditors confirmed their independence and noted that the Council's audit opinion for 2024-2025 was disclaimed due to national audit backlogs, with a qualified opinion expected for 2025-2026 and 2026-2027, aiming for an unmodified opinion by 2027-2028.

Directorate Risk Register

Cathy Knubley, Strategic Director of Culture, Environment and Economy, presented the directorate's risk register for Quarter 1 of 2026-2027. Seven open risks were identified, with four rated amber and three green. The most significant amber risks included the occurrence of fraud leading to financial loss, failure to deliver the Highways Programme, and challenges in procuring rapid EV charging infrastructure. New risks identified were related to the failure of the council's enforcement contractor, Kingdom, to adhere to its code of conduct, and procurement challenges for rapid EV charging.

Treasury Management Outturn

Sharon Daniels, Strategic Director of Finance, presented the Treasury Management Outturn Report for 2025-2026. The report detailed the Council's capital expenditure, financing, and limits, showing that gross borrowing remained within the authorised limit. The Council's underlying need to borrow increased, with additional external borrowing undertaken, partly to repay a LOBO loan and finance HRA capital expenditure. Investment income was slightly below budget due to a reduction in the base rate. The report also noted a loan to the West London Waste Authority.

Annual Housing Complaints Report

Megan Zinkrich, Head of Insight and Housing Strategy, presented the Annual Housing Complaints Report for 2025-2026. The report indicated an increase in complaint volumes, reflecting improved access to the complaints process and higher demand. The top three complaint themes were repairs and property condition, damp and mould, and heating, hot water, and boiler issues. Service improvements are underway to address timeliness and quality of complaint handling. The report also highlighted that vulnerable and elderly residents comprised the largest group of complainants.

Annual Health and Safety Report

Richard Brooks, Strategic Director for Corporate Resources and Innovation, presented the Annual Health and Safety Report for 2025-2026. The report noted an 8% increase in reported incidents, potentially due to improved reporting practices. Violence and aggression were identified as prevalent incident types. The report highlighted positive progress in health and safety governance, with 100% completion of leadership training and over 95% completion of mandatory health and safety training across the organisation. The corporate risk level for health and safety was reduced from red to amber.

Internal Audit and Risk Management Annual Report

Tracy Barnett, Assistant Director for Audit and Anti-Fraud, presented the Internal Audit and Risk Management Annual Report for 2025-2026. Internal Audit achieved 92% of its annual plan, exceeding its target. 100% of management's agreed recommendations were accepted for implementation. The report also detailed the Internal Audit Strategic Plan for 2025-2028 and the updated Risk Management Strategy, which introduced a more numerically based approach to risk assessment.

Corporate Anti-Fraud Team Annual Report

Justin Phillips, Service Manager for the Corporate Anti-Fraud Team, presented the team's annual report for 2025-2026. Of the 15 workstreams in the plan, nine were achieved, with four out of five key performance indicators met. The combined loss and loss avoidance total for fraud investigations and National Fraud Initiative work amounted to just over £2 million, representing a return on investment of approximately 7:1.

Regulation of Investigatory Powers Act 2000 (RIPA)

Artie Hansrani, Principal Lawyer, presented the report on the Regulation of Investigatory Powers Act 2000 (RIPA). The report detailed minor updates to the Council's RIPA policy following an inspection by the Investigatory Powers Commissioner's Office. It was noted that the Council undertook no RIPA activity during 2025.

Treasury Management Outturn Report (Appendix 1)

Sharon Daniels, Strategic Director of Finance, presented the Treasury Management Outturn Report for 2025-2026. The report detailed the Council's borrowing and investment activities, noting an increase in the borrowing portfolio and a slight rise in the average interest rate. Investment returns were broadly in line with expectations, tracking the reduction in the base rate.

Any Other Urgent Business

No other urgent business was raised.

The meeting concluded with a move to Part II, with members of the public asked to leave and recording stopped.