The Audit and Governance Committee of Newham Council is scheduled to convene on Thursday 30 July 2026. The meeting's agenda includes a review of the draft Statement of Accounts for 2025/26 and the Draft Annual Governance Statement, alongside the External Annual Audit Plan for 2025/26 for both the Council and the Pension Fund. Additionally, the committee is expected to receive an update on Treasury Management for 2025/26 and consider the Audit Charter and Mandate for 2026/27.

Draft Statement of Accounts and Annual Governance Statement 2025/26

The committee is expected to note and comment on the draft Statement of Accounts for the London Borough of Newham for the financial year 2025/26. This comprehensive document, which includes the Council's Consolidated Group accounts and Pension Fund accounts, also incorporates the Draft Annual Governance Statement for 2025/26. The draft accounts were produced and published according to the statutory deadline of 30th June and are available on the Council's website. The narrative report within the statement provides a summary of the Council's performance across key areas, including revenue budget performance, Housing Revenue Account (HRA) performance, Dedicated Schools Budget (DSB) performance, Pension Fund performance, and capital investments. A final version of the accounts will be presented for approval once the external audit has been completed.

External Annual Audit Plan 2025/26

Ernst & Young LLP (EY), the Council's statutory external auditors, are expected to present their Audit Plans for 2025/26. These plans outline the proposed audit approach and scope for both the Council's main statement of accounts and the Newham Pension Fund accounts. The report details EY's audit strategy, including an overview of their approach to Rebuilding Assurance following previous audit challenges, their assessment of the Council's preparedness for the audit, and the scope of their work. The plans also highlight significant accounting and auditing matters, including presumptive risks of management override of controls, risks related to the valuation of property assets and pension liabilities, and the recoverability of loans to subsidiaries. EY's approach to the group audit, including procedures performed centrally and at component locations, is also detailed. The report includes a provisional audit timetable and confirms EY's independence.

Treasury Management Outturn Report 2025/26

This report is expected to provide an overview of the Council's Treasury Management activities for the 2025/26 financial year, fulfilling regulatory requirements under the Local Government Act 2003. It details the Council's borrowing and investment portfolio, including loan balances and average interest rates, and outlines the financing of the Council's capital programme. The report also includes an economic review of inflation and interest rates, and presents prudential indicators that measure the affordability of capital investment plans. The maturity structure of the Council's borrowing is detailed, along with the maximum principal sum invested for periods greater than one year. The report confirms that the Council has no principal sums invested for periods greater than one year.

Audit Charter and Mandate 2026/27

The committee is expected to consider the updated Audit Charter and Mandate for the Internal Audit function for 2026/27. This document formally defines the internal audit function's purpose, authority, responsibility, and position within the organisation, establishing its independence through reporting lines to the Audit and Governance Committee. It outlines the function's compliance with Global Internal Audit Standards (GIAS) and details the roles and responsibilities of the Head of Internal Audit, including the requirement for an annual quality assurance and improvement program. The charter also clarifies the scope and types of internal audit services, emphasizing objectivity and professionalism. The report notes that the delivery of the internal audit plan will be undertaken by a Strategic Audit partner, with oversight from the Council's qualified Head of Internal Audit.

Quarterly Counter Fraud Progress Report

The committee is expected to receive an update on the work of the Counter Fraud Team for the first quarter of 2026/27. This report details the team's efforts in preventing, detecting, and deterring fraud, both internal and external, and managing whistleblowing reports. It highlights successes in housing fraud investigations, including the recovery of properties and the prevention of fraudulent Right to Buy applications. The report also outlines progress on whistleblowing and workplace investigations, proceeds of crime actions, and council tax investigations, providing financial figures for recovered amounts and underpayments identified. The team's participation in the London Counter Fraud Hub and its proactive data matching initiatives are also mentioned. The report concludes with the team's forward plan for 2026/27, including the introduction of mandatory fraud and corruption training for all staff.

Quarterly Update on Risk Management and Risk Register

This report is expected to provide an update on the development of the Council's revised corporate risk management framework. It details progress in establishing a Corporate Minimum Standard for Risk Management, developing and validating the Strategic Risk Register through the introduction of bow tie risk cards, and producing a strategic risk profile. The report outlines the nine principal strategic risks currently identified by the Council, including People & Culture, Financial Sustainability, and Housing Regulatory Compliance, noting that Health & Safety, Housing Regulatory Compliance, and Supplier & Contract Management are currently assessed as the highest areas of residual exposure. The next phase of implementation will focus on rolling out the Corporate Minimum Standard through Directorate Management Teams and developing service and directorate risk registers.

Year Ahead Forward Plan

This agenda item is a draft for noting, indicating a forward plan for future committee business.

Exclusion of Press and Public and Exempt Minutes

The committee is scheduled to consider resolving to exclude the press and public from the meeting for specific items of business where exempt information, as defined in Part I of Schedule 12A to the Local Government Act 1972, is likely to be disclosed. This will be followed by the consideration of the confirmation of the exempt minutes of the last meeting.