The Audit, Governance and Standards Committee of Kingston upon Thames Council met on Wednesday 27 March 2024 to discuss the progress of the council's financial audits, fraud prevention efforts, corporate risks, and internal audit plans. The committee approved the Internal Audit Charter, Strategy, and Internal Audit Plan for 2024/25.

Statement of Accounts and External Audit Update

The committee received an update on the ongoing audits of the Council's statements of accounts for 2021/22 and 2022/23. While the 2021/22 audit was expected to conclude shortly, the 2022/23 audit was still progressing due to complex queries. Auditors had not identified any material errors affecting the Council's financial position thus far. The report noted that external auditors had limited availability beyond early April, and officers were working to finalise the 2022/23 accounts and audit findings for presentation at a future meeting to avoid a disclaimer opinion. Consultations on the introduction of 'backstop' dates for publishing audited accounts had closed, with responses awaited.

2023/24 Fraud Update and 2024/25 Indicative Fraud Plan

An update was provided on fraud work undertaken by the South West London Fraud Partnership (SWLFP) in 2023/24 and the indicative fraud plan for 2024/25. The report highlighted a significant national rise in reported fraud, with fraud becoming the largest reported crime type. It noted changes in the motivations behind fraud, including an increase in those committing fraud out of necessity rather than greed, and a growing trend of committing fraud because I can. The current financial climate was also identified as a factor influencing fraud. The SWLFP continues to work with social housing providers on tenancy fraud and abuse. In 2023/24, eight properties were recovered due to tenancy fraud, with further cases progressing. An online fraud awareness training package has been made available to all officers to reinforce the Council's Anti-Fraud and Anti-Corruption Strategy and Culture. The committee noted the indicative fraud plan for 2024/25 and the fraud work undertaken in 2023/24.

Corporate Risk Register

The committee reviewed an update on high-priority risks identified by directorate and senior management teams. The report detailed the financial impact of these risks, with the cost of living crisis continuing to affect both resident demand for services and the cost of providing them. The report also presented risk score history charts and a deep-dive into nightly paid accommodation as a significant issue. Risks are assessed based on likelihood and impact, using a traffic light system. Since the previous report, two risks had been added (Building Safety and Recruitment and retention of shortage occupations) and two removed (Maintenance of the Leisure estate and Cambridge Road Estate and economy). The committee requested the full register of identified risks be shared at the next meeting and asked to be emailed with details of work on the Maldens Centre. A further report on temporary accommodation was requested in six months. The committee noted the updated risks and actions and that the Senior Leadership Team would continue to review the register quarterly.

Internal Audit Charter, Strategy and Audit Plan

The committee received the proposed Internal Audit Charter, Strategy, and Internal Audit Plan for 2024/25, as required by the Public Sector Internal Audit Standards (PSIAS). Internal Audit is described as a key part of the governance framework, helping the Council monitor the achievement of its strategic objectives and the delivery of cost-effective services. The charter formally defines the internal audit activity's purpose, authority, and responsibility. The strategy outlines how the service will be developed and delivered, including resourcing and performance measurement. The Internal Audit plan for 2024/25 includes 557.5 days for the council and an additional 140 days allocated to the Achieving for Children (AfC) plan. The committee resolved to approve the Internal Audit Charter, Strategy, and Internal Audit Plan for 2024/25 and noted the Achieving for Children Internal Audit Plan for 2024/25.

Internal Audit Update Report

A comprehensive report was presented on the work carried out by Internal Audit against the 2023/24 Internal Audit plan, providing assurances on the Council's control environment. Progress against the 2023/24 plan at the end of February 2024 showed 478.0 audit days delivered out of a planned 557.5 days. The report indicated that no audits had been finalised since the previous update that had been given Limited or No Assurance. An annex detailed outstanding Priority 1 recommendations, with positive progress reported on implementing recommendations related to Damp and Mould and Dukes Avenue. The Priority 1 recommendation for Damp and Mould had been completed. The committee noted the work undertaken by Internal Audit.