The Audit Committee of Enfield Council met on Monday 22 June 2026 to review a range of financial and governance matters. Key discussions were scheduled to include the external auditor's plans for rebuilding assurance following previous audit opinions, the draft Statement of Accounts for 2025/26, and the audit plans for both the Council and the Pension Fund accounts for the same year. The committee was also set to receive updates on contract procedure rules, procurement services activity, the draft internal audit plan for the first half of 2026/27, and proposed revisions to counter fraud policies and the internal audit charter. Finally, a work programme for the Audit Committee for the upcoming year, 2026/27, was also scheduled for review.

External Audit - Rebuilding Assurance

Grant Thornton's audit plans for the 2025/26 financial year were presented to the committee. The report highlighted the ongoing efforts to rebuild audit assurance following previous disclaimed audit opinions. The auditors indicated that while they did not expect to support an unmodified opinion for the 2025/26 financial statements, their focus would be on in-year transactions and closing balances, with a target sign-off date of 30 November 2026. The auditors outlined a three-year plan to achieve an unmodified opinion by 2027/28, emphasizing that successful recovery depends on the Council providing high-quality draft accounts, comprehensive working papers, and timely audit access. A capacity assessment by the Ministry of Housing, Communities and Local Government (MHCLG) had categorised the Council's audit as Category [B], indicating capability for an ISA-compliant approach but with significant operational difficulties. The report also noted that £137,776 of Building Back Assurance grant funding had been received from MHCLG to resource this work. The committee was asked to note Grant Thornton's Regaining Assurance Strategy.

Draft Statement of Accounts 2025/26

The committee was presented with the draft Statement of Accounts for the financial year 2025/26. This report detailed the Council's financial position for the year, prepared in accordance with the CIPFA 2025/26 Code of Practice on Local Authority Accounting in the UK. The statutory audit deadline for presenting draft accounts for audit was 30 June 2026, with the backstop publication date for the final, audited accounts set for 31 January 2027. The draft Statement of Accounts for 2025/26 was made available for public inspection from 23 June to 3 August 2026. The external audit of these accounts commenced on 15 June 2026 and was scheduled to continue until September 2026. The committee was asked to note the draft Statement of Accounts, including the Pension Fund Accounts.

2025/26 Audit Plans - LBE and Pension Fund Accounts

Grant Thornton's audit plans for the London Borough of Enfield (LBE) Statement of Accounts and the Pension Fund Accounts for 2025/26 were presented. The report detailed the estimated audit fees for both, showing an increase from the previous year. For the LBE Accounts, the estimated fee was £518,004, with additional fees for the use of an audit expert for property valuations (TBC) and IFRS 16 Leases (£3,850). For the Pension Fund Accounts, the estimated fee was £98,352, with additional fees for triennial valuation data testing (£5,000). The report highlighted that the LBE Accounts audit fees were £9,394 above budget, and if the cost of the audit expert remained the same as the previous year, the budget shortfall would be £23,394. The Pension Fund Accounts audit costs would be met from the Pension Fund itself. The committee was asked to note these audit plans and estimated fees.

Annual Report on Contract Procedure Rules and Waiver Procurement Services 2025-2026

This report provided an annual update on Procurement Services' activity, compliance with Contract Procedure Rules (CPRs), waivers approved, and information on the Council's procurement spend for the period April 2025 to March 2026. Procurement Services was described as a corporately led strategic function supporting all service areas through commissioning, procurement, and contract management. The report detailed that Procurement Services led tendering processes for projects over the Procurement Legislation Threshold, which had been adjusted on 1 January 2026. Compliance monitoring was noted as challenging due to system limitations and diminished resources, but the introduction of a new Procurement System, Atamis, was expected to improve functionality, including contract management and spend analytics. The report indicated a significant reduction in 'off contract spend' (gaps) from 31% in April 2023 to 9% by March 2026. Waivers were discussed, with 102 approved in 2025/26 totalling £13.4m, and 28 Direct Awards from frameworks totalling £19.4m. The report also provided an overview of contracts and extensions, with 268 contracts expiring in 2026/27. Social value delivery was highlighted, with Meridian Water delivering approximately £8.05m in social value in FY 2025/26, exceeding targets for local labour and apprenticeships.

Draft 2026-27 Q1 & Q2 Internal Audit Plan

The Head of Internal Audit presented the draft Internal Audit Plan for the first two quarters of 2026/27. The plan was formulated using a risk-based approach, incorporating reviews of the Corporate Risk Register and consultations with Executive Directors and Departmental Management Teams. The plan included 25 audits requiring 330 days to complete, to be resourced by the in-house team (18 audits) and an outsourced provider (7 audits). The report noted that an agile approach was being adopted, with the plan for the remainder of the year to be presented in November 2026. The risk coverage for Q1 & Q2 was planned to focus on high-risk areas, including financial audits, payroll, purchase to pay processes, and specific school audits. The plan also included audits related to counter fraud, building control, leasehold service charges, and Meridian Water contract management.

Counter Fraud Policies

The committee was asked to review and approve revised Counter Fraud policies: the Anti-Money Laundering Policy, Sanction & Prosecution Policy, Whistleblowing Policy, and Anti Bribery and Corruption Policy. These policies were presented as essential for promoting awareness, strengthening deterrence, reinforcing accountability and transparency, and ensuring compliance with relevant legislation and best practice. They support the Council's commitment to protecting public funds and maintaining public confidence by preventing, detecting, and responding to fraud, corruption, and associated criminality. The report stated that these policies collectively promote awareness, strengthen deterrence, reinforce accountability and transparency, and ensure compliance with relevant legislation and recognised best practice.

Draft 2026-27 Internal Audit Charter

The Head of Internal Audit presented the draft Internal Audit Charter for 2026/27 for approval. The Charter formally establishes the authority, role, responsibilities, and organisational position of the internal audit function, in accordance with the Global Internal Audit Standards. The report indicated that the Charter had been reviewed and minor amendments made, including a statement confirming the Audit Committee's role in ensuring the Head of Internal Audit has access to private meetings with the Chair. The Charter was deemed to continue to enable an effective internal audit function, remain aligned with the Standards, provide appropriate authority and independence, and support the function's objectives.

Audit Committee Work Programme 2026/27

The Head of Governance, Scrutiny and Registration Services presented the proposed work programme for the Audit Committee for the year 2026/27. The report explained that the work programme allows committee members and the public to be informed about the committee's business. It noted that many reports are quarterly or annual monitoring documents presented at similar times each year, but that the programme is an evolving document. The work of the Audit Committee, as outlined in the programme, supports the Council's delivery of its objectives by focusing on governance, finance, risk, and control arrangements.

The meeting was also scheduled to include standard items such as welcoming apologies, declarations of interest, and noting the minutes of the previous meeting. Dates for future meetings were also to be noted.