The Audit Committee of Haringey Council met on Thursday, 7 March 2024, to discuss a range of financial and governance matters. Key decisions included the approval of the Annual Internal Audit Plan, Strategy, and Charter for 2024/25, and the adoption of an updated Local Code of Corporate Governance. The committee also received updates on the Strategic Asset Management and Property Improvement Plan, procurement audit progress, and the ongoing challenges with outstanding external audits of the Council's statements of accounts.

Strategic Asset Management and Property Improvement Plan (SAMPIP) Update

The committee received an update on the Strategic Asset Management and Property Improvement Plan (SAMPIP) 2023-28. Mr Jonathan Kirby, Head of Asset Management, highlighted progress on the Corporate Property Model, which aims to centralise property budgets and improve building utilisation. The Property Governance Structure, including the Capital Property Board (CPB), was discussed, with the committee being offered terms of reference for these boards. The Property Performance Matrix, designed to assess buildings based on usage, condition, and strategic need, was also explained. The committee noted that a soft lease reading exercise is underway to understand the Council's responsibilities under existing leases, with plans to procure a new digital system, Technology Forge, to monitor works and lease responsibilities. The committee resolved to note the SAMPIP 2023-28 and its associated action plans, Corporate Property Model, Property Governance Structure, and Property Performance Matrix, to inform the next annual update to Cabinet.

Procurement Audit Update

Mr Barry Phelps, Chief Procurement Officer, provided an update on procurement audit matters. He explained the functionality of the Dynamic Purchasing System (DPS) and its benefits for SMEs, noting that approximately 90% of contracts awarded through the DPS go to SMEs, with around 35% being local Haringey businesses. The Council is developing a social value policy, which will be contractually binding for suppliers and aligned with national procurement strategies. The committee was informed that the new e-procurement system, intended to replace the Haringey Procurement and Contract System (HPCS), has experienced delays due to contract negotiations but is now in the mobilisation phase. The planned go-live dates are July for procurement and contract management functionality, September for invoice scanning, and October for DPS migration. The committee resolved to note the updates and progress on the implementation of the new e-procurement system.

External Audit Plan

Mr Tim Cutler from KPMG introduced the indicative External Audit Plan and Strategy for the year ending 31 March 2024. He explained that the audit plan is still in draft form due to ongoing consultations and the need to await the finalisation of the NAO Code of Audit Practice. The materiality level for the consolidated financial statements was set at £21.8 million. Significant audit risks identified include the valuation of land and buildings, management override of controls, valuation of post-retirement benefit obligations, and expenditure recognition. The committee noted the presentation.

Update on Outstanding Audit of Statement of Accounts 2020/21, 2021/22 and 2022/23

Mr Kaycee Ikegwu, Head of Finance (Housing) and Chief Accountant, presented an update on the outstanding audits. He highlighted the national issue of delayed audit opinions, with only a small percentage of local government bodies having received their 2022/23 audit opinions. The government has proposed backstop arrangements to address the backlog, including amendments to the Accounts and Audit Regulations 2015, which would require audited accounts up to 2022/23 to be published by 30 September 2024. The Council's external auditors, BDO, have proposed recommencing the 2020/21 audit but indicated they would not be able to undertake the subsequent two years' audits, anticipating a disclaimer opinion for those years. The Director of Finance has requested a deferment of the 2020/21 audit recommencement until the outcome of the national consultation is known. The committee resolved to note the position on the outstanding external audits.

Treasury Management Report Q3 2023/24

Mr Tim Mpofu, Head of Pensions and Treasury, introduced the Treasury Management Report for the third quarter of the financial year, ending 31 December 2023. The report detailed the Council's borrowing and investment activities, economic background, and compliance with treasury management prudential indicators. The committee noted the report without significant questions or comments.

Annual Internal Audit Plan, Strategy and Charter 2024/25

Mr Minesh Jani, Head of Internal Audit and Risk Management, presented the proposed Annual Internal Audit Plan, Strategy, and Charter for 2024/25. The plan is risk-based and informed by the Corporate Delivery Plan, risk registers, and changes in legislation. The committee heard that the plan aims to provide coverage across value protection and value-added requirements, aligning with identified key risks. The committee resolved to approve the updated Annual Internal Audit Strategy and Plan for 2024/25, the Internal Audit Charter, and to note the Internal Audit Protocol and the Assurance Risk Map.

Internal Audit Progress Report 2023/24

Mr Minesh Jani also presented the Internal Audit Progress Report for the period 7 October 2023 to 31 January 2024. The report detailed the work undertaken by Internal Audit, including the number of audit reports issued and finalised. The committee heard about areas that received Nil or Limited assurance, including the delivery of Leisure Services, Pendarren House, and the Purchase of Care Plans. For Leisure Services, significant deficiencies were identified in contract management, leading to Nil assurance. Pendarren House received Limited assurance due to gaps in safeguarding training, risk management, and performance monitoring. The Purchase of Care Plans audit also resulted in Limited assurance due to issues with joint-funded care plans, financial assessments, and contract reviews. The committee resolved to note the audit coverage and follow-up work completed.

Anti-Fraud and Corruption Progress Report Quarter 3 2023/24

Ms Vanessa Bateman introduced the Anti-Fraud and Corruption Progress Report for the third quarter of 2023/24. The report summarised the work undertaken by the Audit & Risk Service in relation to anti-fraud and corruption, driven by the Council's Anti-Fraud & Corruption Strategy. The committee resolved to note the activities of the team during the quarter.

Local Code of Corporate Governance

Mr Minesh Jani presented the updated Local Code of Corporate Governance. The revised code brings the previous 2013 version up to date, reflecting current guidance from CIPFA and the evolving governance landscape. The code outlines the Council's commitment to good governance principles, including ethical values, transparency, stakeholder engagement, and robust risk management. The committee welcomed the report and resolved to approve the attached Local Code of Corporate Governance.