The Audit & Governance Committee of Croydon Council met on Thursday 17 September 2026 to review a range of financial and governance matters. The meeting's agenda included updates on external and internal audits, the annual governance statement, and the council's risk assessment. Information was provided through a public reports pack, which detailed the topics scheduled for discussion.

Informing the Audit Risk Assessment 2025-26

The committee was scheduled to consider the responses prepared by management regarding questions posed by the external auditor, Grant Thornton UK LLP, to inform the 2025-26 audit risk assessment. These responses, developed through collaboration between various council departments including Legal Services, Insurance and Risk, Internal Audit, and Finance, were intended to ensure consistency with the committee's understanding and to allow for any additional comments. The report recommended that the committee consider and approve these responses.

2025-26 External Audit Progress Update

A progress update from the Council's external auditor, Grant Thornton UK LLP, was scheduled for discussion. This report detailed the progress of the 2025-26 audit across key areas, including a review of significant risks identified in the audit plan, transaction sampling, and work across financial statement areas. It also summarised the build-back assurance work programme, outlining steps the Council is taking to rebuild full assurances over financial statements. The report noted that the auditor expected to issue their annual report in December 2026, ahead of the statutory deadline for final accounts publication. Sector updates were also included, covering Adult and Children's Social Care, the Annual Governance Statement, and a Ministry of Housing, Communities and Local Government consultation on revised statutory guidance for the Best Value Duty.

Interim Auditor's Annual Report for Year Ending 31 March 2026

The committee was scheduled to consider the Interim Auditor's Annual Report for the year ending 31 March 2026, also from Grant Thornton UK LLP. This report included an interim Value for Money assessment of the Council's arrangements. It was noted that this was an interim report, and audit findings were subject to further update as the 2025-26 audit continued. The report highlighted a retained statutory recommendation concerning Financial Sustainability and a new key recommendation regarding the Dedicated Schools Grant (DSG) deficit. A new improvement recommendation concerning Governance was also raised, focusing on rebuilding assurance over financial statements. The Value for Money assessment indicated a Red rating for Financial Sustainability due to significant weaknesses in cost and debt reduction, and the DSG deficit. Governance and Improving economy, efficiency and effectiveness were rated Amber.

Annual Head of Internal Audit Report & Internal Audit Update Report

The committee was set to receive the Annual Head of Internal Audit Report for 2025/26 and an update on Internal Audit's work. This report was intended to provide an overall conclusion on the effectiveness of the Council's framework for governance, risk management, and control, based on the work completed by Internal Audit during the year. It was also to include the results of the Head of Internal Audit's self-assessment against professional standards, the resultant action plan, and findings from a benchmarking exercise conducted by the London Audit Group. The report was expected to conclude that the Council's overarching framework for governance, risk management, and control accords with proper practice, while also identifying key issues and areas for improvement.

Whistleblowing Policy and Procedure and Disclosures Update

Proposed amendments to the Council's Whistleblowing Policy and Procedure were scheduled for consideration. These amendments aimed to improve clarity, ensure legislative compliance, align reporting with the Constitution, and enhance the administration of whistleblowing disclosures. The report also provided an update on whistleblowing referrals received between October 2025 and July 2026, detailing the nature of concerns raised and the progress of investigations.

Annual Governance Statement 2025/26 and Action Plan

The committee was asked to consider and approve the Council's Annual Governance Statement (AGS) for 2025/26 and its accompanying Governance Improvement Plan. The review concluded that the Council's corporate governance framework remained substantially compliant with good governance principles and continued to operate effectively, while acknowledging significant governance weaknesses requiring further improvement. These weaknesses included financial sustainability, SEND financial governance, the transformation programme reset, workforce capacity, information governance, complaints management, and external audit recommendations. A Governance Improvement Action Plan was developed to address these areas during 2026/27. The committee was also asked to note that the Monitoring Officer, in consultation with the Chief Executive and Corporate Director Resources, could make final presentational, factual, or minor amendments before publication with the Statement of Accounts.

Committee Annual Report 2024/25 and 2025/26

The committee was recommended to receive the Annual Reports for both the 2024-2025 and 2025-2026 municipal years. These reports summarise the committee's work, findings, and recommendations, fulfilling the constitutional requirement to report annually to Full Council on the committee's performance and effectiveness. The committee was also asked to agree that these reports be presented at the next meeting of Full Council on 21 October 2026.