The Audit and Governance Committee of Newham Council convened on Thursday 30 July 2026, electing Councillor Kelly Drake as its Vice-Chair. The meeting focused on reviewing the Council's financial performance, risk management, and internal audit functions, with a key outcome being the noting of the draft Statement of Accounts for 2025/26 and the approval of the Internal Audit Charter and Plan for 2026/27.

Election of Vice-Chair

Councillor Kelly Drake was elected as the Vice-Chair of the Audit and Governance Committee for the municipal year 2026-2027.

Draft Statement of Accounts 2025/26

The Committee reviewed the draft Statement of Accounts for the 2025/26 financial year. Officers reported a balanced General Fund position and confirmed that the Council no longer required Exceptional Financial Support for 2026/27. The external auditors, EY, aimed to complete their audit by November 2026, with a statutory deadline of January 2027. Members raised questions regarding subsidiary loans and savings slippage, receiving assurances that these were being managed and reviewed. The Committee resolved to note and comment on the draft Statement of Accounts and the Draft Annual Governance Statement.

External Annual Audit Plan 2025/26

Representatives from EY presented the External Audit Plan for both the Council and the Newham Pension Fund. They highlighted the ongoing work to rebuild assurance following previous disclaimed audit opinions, with a focus on completing planned audit procedures. Key risks identified included management override of controls, inappropriate capitalisation of revenue expenditure, property valuations, loans to subsidiaries, pension liabilities, and bank reconciliations. The Value for Money assessment identified significant weaknesses in financial sustainability, housing governance, financial reporting governance, and subsidiary governance. The Committee resolved to note the contents of the report.

Treasury Management 2025/26 Outturn Report

The Committee reviewed the Treasury Management performance for 2025/26. Key points noted were that investment activities remained within approved limits, and treasury activities complied with the prudential framework. Officers confirmed that Treasury Management Reports are subject to scrutiny by the Audit Committee, Cabinet, and Full Council. The Committee resolved to note the report, including the final position on prudential indicators.

Audit Charter and Mandate

The Committee considered the updated Audit Charter and Mandate, which defines the internal audit function's purpose, authority, and reporting lines. The report highlighted the appointment of a new Chief Audit Executive and the monthly reporting of high-risk overdue actions to the Corporate Leadership Board. The Committee resolved to approve the Audit Charter and Mandate.

Audit Plan 2026/27

The Internal Audit plan for 2026/27 was presented, noting an increased focus on housing services, financial controls, risk management, and key governance arrangements. The plan indicated a near trebling of audits from 12 to 33, supported by an additional £300,000 in resources. The Committee resolved to approve the interim audit plan, budget, and resource plan for 2026/27.

Quarterly Internal Audit Update

This report provided an update on the work undertaken by the Internal Audit Service. The Chair highlighted that a number of high-risk overdue actions were being reported monthly to the Corporate Leadership Board, and that progress reports would be shared with the Chair. The Section 151 Officer explained that the 2025/26 audit plan was not satisfactory for a Council of its size, necessitating additional resources for the 2026/27 plan. The Committee resolved to note the report.

Head of Internal Audit's Annual Report and Opinion for 2025/26

The Committee considered the Head of Internal Audit's annual report, which concluded with a Limited Assurance opinion. This was attributed to significant weaknesses in internal controls, a high proportion of limited assurance audits, slow implementation of recommendations, and governance improvements still being embedded. Members discussed the difference between this opinion and the Interim Monitoring Officer's more positive assessment, with officers explaining the differing scopes and technical thresholds. The Committee resolved to note the report.

Quarterly Counter Fraud Progress Report

The Committee received an update on the Counter Fraud Team's work, highlighting significant achievements including the recovery of 65 council properties, identification of £461,000 in underpaid council tax, and the prevention of 19 fraudulent housing applications. A zero-tolerance approach to fraud was reaffirmed, with mandatory anti-fraud and corruption training and strengthened whistleblowing arrangements noted. The Committee resolved to note the report.

Quarterly Report of Contract Waivers

The Committee noted the summary of contract waivers for the period January to March 2026. A Member commented that this represented substantial progress compared to previous years. The Committee resolved to note the summary of waivers.

Year Ahead Forward Plan

The Committee reviewed the forward plan for the upcoming year. Concerns were raised about the cancellation of the June meeting and the lack of a plan to review recommended changes to the Constitution before the October Full Council meeting. The Chair agreed to review the request for more frequent meetings and to revert in writing regarding constitutional matters. The Committee resolved to note the report.

Date of Next Meeting

The next meeting was scheduled for 4 November 2026, with an additional meeting to be scheduled for late September or early October.

Exclusion of Press and Public

The Committee resolved to exclude the press and public from the meeting to discuss exempt minutes.

Exempt Minutes of the Last Meeting

The exempt minutes of the last meeting held on 11 March 2026 were noted.