The Audit and Risk Committee of Lewisham Council met on Tuesday 8 September 2026 to discuss the external audit update, internal audit progress, and the corporate risk register. Key discussions included the progress of the 2025/26 external audit, the status of internal audit engagements, and an update on significant risks facing the council, such as cyber security and the cost of living impact on residents.

External Audit Update

Terence Madgett, Chief Accountant, provided an update on the external audit for the 2025/26 financial year. The draft Statement of Accounts was published on 24 June 2026, ahead of the statutory deadline, with the public inspection period running from 16 June to 5 August 2026. Officers confirmed they were not aware of any formal objections raised by the public. The detailed audit fieldwork commenced in August and is well underway, with the expectation that the audited Statement of Accounts will be presented to the council in November 2026. All prior year audit recommendations are considered closed, with the exception of those relating to improvements in the income management system, which is experiencing delays due to a separate system update.

Councillor James Rathbone raised a question about the accessibility of documentation related to the Housing Improvement Plan, which Gillian Douglas, Executive Director of Housing, confirmed would be made available to the committee. Fleur Nieboer from KPMG confirmed that the audit is on track for completion by the end of November.

Internal Audit Progress Update

Richard Benjamin, Head of Assurance, presented the internal audit progress report for the 2026/27 plan, covering audits completed up to August 2026. Seven engagements were completed, with most receiving positive opinions. However, the Major Repairs and Refurbishments audit received a limited assurance rating due to notable weaknesses in data quality and management, particularly concerning the reconciliation between IT systems and manual spreadsheets.

Councillor Gavin Moore requested that full internal audit reports be made available to committee members as a routine matter. Michael Reece, interim Director of Quality and Improvement, addressed concerns about the Major Repairs and Refurbishments audit, expressing confidence that most actions would be delivered within target timescales, although some extensions were recommended. Gillian Douglas provided further context on the council's efforts to maintain council housing stock to a good standard, highlighting ongoing work to address hazards and improve the decency of homes.

The committee also discussed the Adult Safeguarding and Governance Summary audit, which identified areas for improvement. It was clarified that this audit focused on governance reporting rather than the safeguarding process itself, and an action plan was already in place. A recommendation was made to provide an update from the adult safeguarding team at the next meeting.

Risk Management and Corporate Risk Register Update

Richard Benjamin presented an overview of the council's corporate risk register and the development of risk management arrangements. Five risks had changed score since the previous report: Cost of Living Impact on Residents and Major Information Governance Failure increased, while Housing Management Software Implementation Failure, Capacity Constraints and/or Budget Pressures to Strategic Health Partners, and Failure to Achieve Full Regulatory Compliance for Council Housing Stock decreased.

Councillor Claire Wills raised concerns about the reporting of Failure to Achieve Full Regulatory Compliance for Council Housing Stock (LBL001), questioning the justification for reducing its risk score given the findings of the Major Repairs audit. Gillian Douglas explained the progress made in improving the Decent Homes Standard and reducing Category 1 hazards, arguing that the council has good knowledge of its stock and is moving in the right direction.

The committee also discussed Significant Disruption to IT Partner (STS) (LBL023), with David Austin, Executive Director of Corporate Resources, noting that a decision regarding future options would be made by Mayor and Cabinet.

Regarding Extreme Heat Preparedness and Exercise Helios, Councillor Rathbone declared an interest as an employee of Canico Project/V22 Communities, the operator of Crofton Park Library, which had been mentioned as having closed due to extreme heat. David Austin confirmed that the council had maintained essential services during the recent heatwaves and that lessons learned from Exercise Helios and the operational response would be incorporated into future planning. The committee requested more detailed reports on adverse weather planning and assurance that partners had been consulted.

The committee also discussed the Cost of Living Impact on Residents (LBL013), which had increased due to ongoing economic volatility. David Austin outlined mitigation measures, including the implementation of the crisis resilience grant and a strategic review of services to address residents' needs more holistically.

Finally, the committee requested more detailed reports on several risk items, including cyber security, IT partnership risks, housing management software implementation, risk scoring methodology, and climate resilience outcomes. A deep dive into risks within the Housing Directorate was suggested for a future meeting.