The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council is scheduled to convene on Thursday 17 September 2026. The committee's agenda includes a review of the council's risk profile, updates on internal and external audits, and discussions on treasury management performance.

Corporate Complaints and LGSCO Annual Report 2025/26

The committee is scheduled to consider the Corporate Complaints and Local Government and Social Care Ombudsman (LGSCO) Annual Report for 2025/26. This report summarises the council's performance in handling corporate complaints and LGSCO investigations between April 2025 and March 2026. It highlights a significant increase in complaint volumes, with demand rising faster than service capacity. Factors contributing to this include greater accessibility, higher resident expectations, policy and legislative changes, increased charges and debt recovery, pressure on temporary accommodation and SEND provision, and the growing complexity of AI-generated submissions. Despite the rise in demand, several quality indicators have improved, such as a smaller proportion of complaints being upheld, a fall in the escalation rate to the Ombudsman, and a reduction in compensation payments. The report also notes that Barnet had the eleventh-lowest rate of upheld LGSCO complaints in London and received no additional concern letter for the second consecutive year.

Complaints About Councillors 2025/26

A report will be presented outlining complaints received about councillors between March 2025 and April 2026, along with any identified trends. Nine complaints were dealt with during this period, a slight increase from the previous year. The report details the nature of each complaint, the provisions of the Members Code of Conduct alleged to have been breached, and the decision reached. One case involved a breach of the Code, resulting in the councillor being asked to attend training and issue an apology. A lesson identified is the importance of councillors ensuring they have an out-of-office message on their emails to manage resident expectations regarding response times.

Quarterly Risks Report - Q1 2026/27

The committee will review the council's strategic and high-level service risks for the first quarter of 2026/27. A total of 191 open risks are being actively managed, an increase from the previous quarter. The number of high-level risks has risen from 27 to 30, primarily driven by financial pressures, with high-level finance risks increasing from 9 to 16. The report notes that while the overall risk management framework remains effective, the organisation continues to face a challenging risk environment, particularly concerning financial sustainability and housing pressures. Four new strategic risks have been identified: STR041 Loss of local control, STR042 Political uncertainty, STR043 Payroll insourcing, and STR044 Global instability. Three risks have increased to a high level: AD004 Care provider failure, AD007 Workforce instability (ASC), and ES037 School falling rolls. One risk, GRW025 Unsafe/Unhealthy Living Accommodation - Private Rented Sector, has reduced from a high level.

Internal Audit Progress Report - Q1 2026/27

This report provides an update on the delivery of the 2026/27 Internal Audit Plan and progress in implementing agreed audit recommendations. Two reviews were completed in the first quarter, meeting the target of 25% to 30% of the annual programme. No 'Limited' or 'No' Assurance reports were issued. However, follow-up work on high-priority actions revealed that only 28% were completed, with 36% partly completed and 36% not completed, falling significantly below the council's target of 90%. This persistent low implementation rate has implications for the council's control environment and the Head of Internal Audit's annual conclusion. A review of Damp and Mould arrangements within The Barnet Group identified three high-risk findings and two medium-risk findings, with improvement plans established by The Barnet Group.

Treasury Management Performance Update - Q1 2026/27

The committee will receive an update on treasury management activities for the first quarter of 2026/27. Activities have been conducted in full compliance with the Treasury Management Strategy Statement, with no breaches reported. At the end of Q1, treasury investment balances were £77.637 million, and loan balances totalled £1.339 billion. The economic environment remains uncertain, with interest rates at 3.75% and CPI above target. Financial advisors recommend maintaining borrowing within the short-to-medium term. The increase in borrowing, combined with reduced reserves, places additional pressure on the Capital Financing budget, which is being actively managed. The Treasury function is focused on maintaining liquidity and making strategic borrowing decisions, with ongoing efforts to enhance processes and procedures.

External Audit Progress Report 2025/26

Grant Thornton LLP will provide an update on the progress of the external audit for the council's 2025/26 financial statements. Audit planning is complete, and fieldwork began in June 2026, with residual work scheduled to commence in September. Testing will focus on in-year transactions and closing balances. The audit of the Pension Fund accounts is substantially complete, with a draft findings report issued to management. Based on current procedures, an except for audit opinion is anticipated for the 2025/26 council accounts due to issues with prior year membership data and potential classification of employer contributions. However, auditors expect to move away from a disclaimed opinion. The final Audit Findings Report, Auditor's Annual Report, and Audit Report are due in November 2026.

Committee Forward Work Programme

The committee will review its forward work programme for 2026-2027, noting upcoming reports and discussions. This includes scheduled reviews of corporate complaints, risks, internal and external audits, treasury management, and financial governance.

Any item(s) that the Chair decides are urgent

The Chair may decide to bring forward any urgent items for discussion that have not been included on the published agenda.