The Audit Committee of Enfield Council met on Tuesday 08 September 2026 to review the progress of the external audit for the 2025-2026 financial year, discuss the six-month review of the external auditors' report, and consider various internal audit and governance reports. Key decisions included noting the progress of the external audit, which indicated a likely disclaimed opening balance for the 2025-26 statement of accounts but good progress towards government targets, and noting the findings of the CIPFA Enfield External Assurance Review, which concluded that the council's financial management arrangements show clear signs of improvement but remain fragile.

External Audit Progress and Rebuilding Assurance

The committee received an update from Grant Thornton, the external auditors, on the progress of the 2025-2026 audit. Paul Dossett and Ajay Jha from Grant Thornton presented the report, indicating that while a disclaimed opening balance was likely for the 2025-26 statement of accounts, significant progress had been made. They noted that the council was well positioned to meet the Government's 2027/28 target for rebuilding assurance. Annette Trigg, Director of Finance (Corporate), highlighted the close collaboration between officers and auditors, and the efforts made to be meticulous in the process. A discussion also took place regarding the timing of auditors' reports, with officers explaining the importance of internal processes in ensuring the quality and accuracy of information. The committee agreed to note the report and wider audit updates concerning the regaining assurance process.

Six-Month Review of External Auditors' Report

Olga Bennet, Chief Finance Officer, presented the six-month review of the external auditors' report. The report detailed the council's progress in responding to Grant Thornton's recommendations from the 2024-25 Value for Money report. Significant progress was noted on debt reduction, with external debt for the General Fund reducing from £909 million to £868 million during 2025-26. The Energetik strategic review was also progressing, with a preferred option of a full sale supported by a Golden Share arrangement. The council had also agreed a target of £50 million in capital receipts for 2026-27. Regarding rebuilding risk reserves, a recurring budget had been built into the Medium-Term Financial Plan (MTFP) to ensure target reserves are forecast to be reached within three years. Key recommendations from the external auditors concerning maintaining skilled finance resources, auditing charges to the Dedicated Schools Grant (DSG) budget, and improving risk management focus were also being addressed.

CIPFA Enfield External Assurance Review

Olga Bennet also presented the CIPFA Enfield External Assurance Review Report, commissioned by the Ministry of Housing, Communities and Local Government (MHCLG). The review concluded that Enfield Council's financial management arrangements show clear signs of improvement but remain fragile. It highlighted the need to maintain momentum in delivering transformation and strengthening long-term financial resilience. The report noted improvements in financial realism, risk management, and the 2026-27 budget, but also pointed to ongoing weaknesses such as a prolonged period of disclaimed accounts, reliance on manual workarounds, and finance capacity pressures. The planned implementation of a new ERP system in 2026-27 was deemed critical. The review also assessed the council's capital programme, noting a material de-risking of the capital programme and a disciplined debt strategy, but highlighted execution risk for capital receipts and the Meridian Water programme. Service delivery for core statutory services was rated as good, but the report stressed the importance of implementation maturity for transformation programmes. The committee agreed to note the recommendations and actions from the CIPFA report.

General Fund Debt Repayment (MRP) Judgements and Choices

Olga Bennet presented a report explaining the judgements made as part of the council's debt repayment (Minimum Revenue Provision - MRP) policy. The report detailed three key areas of judgement: the choice between the annuity and equal instalments method for debt repayment, the timing of debt repayments for assets like Meridian Water, and the quantum of debt for Energetik and Housing Gateway Limited that council taxpayers would repay. The report highlighted that the annuity method, which spreads costs over time, is standard practice among London Boroughs and better reflects intergenerational equity. It also detailed the sensitivities and impacts of different judgements on the MRP calculation, particularly concerning Meridian Water and loans to subsidiaries. The committee agreed to note the impact of these key judgements.

Other Audit and Governance Matters

The committee also noted the 2025-26 Annual Audit Committee Report and Review of Effectiveness¹, which detailed the committee's work, its effectiveness review, and identified areas for improvement, including strengthening annual reporting to Full Council and developing a member training plan. Marion Cameron, Head of Internal Audit, presented the Internal Audit and Counter Fraud Annual Report 2025-26², concluding that there was Reasonable assurance over the arrangements for governance, risk management and internal control in the London Borough of Enfield. The report highlighted key themes from audits, including weaknesses in procurement, contract management, governance oversight, financial control, and cyber resilience. The Counter Fraud Team reported detecting and preventing £2.7 million in fraud and recovering 18 social housing properties. The Annual School Internal Audit Report 2025-26³ noted a slight decline in assurance opinions for schools compared to the previous year, with 70 actions agreed to address findings, including high-risk issues in procurement and asset management. Finally, Andrea Kilby, Head of Legal Practice and Compliance, presented the Annual Data Protection Report 2025-26⁴, which detailed a reduction in reported data breaches and highlighted ongoing work on policy, training, and good practice, including the establishment of a Data Compliance Strategy Board.