The Audit and Risk Committee of Lambeth Council met on Thursday 23 July 2026 to review a range of reports concerning the council's governance, risk management, and financial oversight. Key discussions included the annual internal audit report, which provided a Reasonable Assurance opinion on the council's arrangements, and an update on complaints and enquiries, which revealed a significant increase in overall casework volumes. The committee also reviewed the council's use of surveillance powers under the Regulation of Investigatory Powers Act 2000, noting that no such activities had been authorised since 2017.

Annual Information Governance Report

The committee received the Annual Information Governance Report for 2025/26, which detailed the council's arrangements for handling information securely and lawfully. Between April 2025 and March 2026, 103 potential data breaches were reported, with 92 assessed as valid. All were deemed low-level, and none required reporting to the Information Commissioner's Office. The report highlighted areas for improvement, including mandatory data protection training compliance, data owner responsibilities, and breach learning. The committee noted the report and endorsed the proposed forward improvement actions.

Annual Update on Complaints, Enquiries, and Ombudsman Cases

This report provided an overview of casework performance for 2025/26, indicating a substantial increase in overall volumes from 18,260 in the previous year to 27,563. The largest increases were observed in Members' Enquiries and Stage 1 complaints. While Subject Access Requests (SARs) and Freedom of Information (FOI) requests saw performance improvements, and Ombudsman timeliness remained at 100%, Stage 1 and Stage 2 complaints, along with Members' Enquiries, experienced a decline in performance. This suggests pressure on response times and casework capacity. Housing Management remained the highest-volume area for complaints and enquiries, with significant increases also noted in Growth and Environment. Compensation awarded through complaints resolution decreased slightly overall, but Ombudsman-directed compensation increased, largely driven by Housing. The report identified key root causes for dissatisfaction, including delays, missed actions, communication gaps, and disputes over charges. The committee was informed of ongoing work, including a review of the Housing complaints service and the Customer Access Service Transformation (CAST) programme, with updates to be provided in January 2027.

Internal Audit Annual Report and Opinion

The committee received the Internal Audit Annual Report and Opinion for 2025/26, which provided a Reasonable Assurance opinion on the adequacy and effectiveness of the council's governance, risk management, and internal control arrangements. The report noted that while core governance and financial frameworks are established, control effectiveness is not yet consistent across all areas, particularly in demand-led and operationally complex services. The council operates within a challenging financial environment, requiring exceptional support, which increases the importance of robust financial governance and timely implementation of control improvements. Management's response to identified areas for improvement has shown significant progress, with no overdue high-priority actions. The committee was asked to note the assurance provided by the report.

Management Update for Actions Arising from Limited Assurance Internal Audits

This report provided an update on the progress made against actions identified in internal audits that had previously offered limited assurance. The audits covered areas including Corporate Safeguarding, HR Case Management, Homelessness Prevention and Temporary Accommodation, Temporary Accommodation: Review and Move On, and Unaccompanied Asylum Seeking Children. The committee was asked to consider the progress made and the level of assurance received.

Counter Fraud Annual Report 2025/26

The committee reviewed the Counter Fraud Annual Report for 2025/26, which detailed the service's activities in preventing, detecting, and investigating fraud. Key highlights included the recovery of 79 tenancies through investigations into tenancy fraud, the withholding of over £1.2 million in discounts from fraudulent Right to Buy applications, and the prevention of nine candidates from joining the council due to vetting concerns. The report also noted that the cost of the counter fraud service was significantly less than the value of fraud identified. Plans for 2026/27 include strengthening fraud prevention, focusing on homelessness and temporary accommodation, and continuing efforts to tackle tenancy fraud and undeclared dual working. The committee was asked to consider the outcomes of the report.

Report on Regulation of Investigatory Powers Act 2000

The committee was informed about the council's use of covert surveillance and information gathering techniques under the Regulation of Investigatory Powers Act 2000 (RIPA) during 2025/26. It was noted that the council had not authorised any RIPA-regulated surveillance activities since 2017, a trend observed in other local authorities. This is attributed to legislative changes restricting use to serious crime and a greater reliance on overt investigative methods and technology. The report included an updated policy on Directed Surveillance and Covert Human Intelligence Sources, which the committee was asked to approve. The council's compliance with RIPA is overseen by the Investigatory Powers Commissioner's Office (IPCO).

Directorate Risk Register Presentation

The committee received a presentation on the Directorate Risk Register. This item provided an overview of the key risks facing the council's directorates, the mitigation measures in place, and the assurance provided by management. The discussions highlighted concerns regarding financial sustainability, emergency planning, health and safety compliance, and the potential for violence against residents. The committee engaged in a discussion about the clarity and comprehensiveness of the risk reporting, with specific attention paid to the scoring of risks and the need for consistent information across reports.

The meeting concluded with the committee accepting the recommendations and noting the reports presented.