The Audit Committee of Ealing Council convened to review the council's financial performance and audit progress. Key discussions were scheduled to cover treasury management updates, the progress of external audits by Forvis Mazars, internal audit findings, risk management, whistleblowing reports, and the committee's workplan.

Quarter 1 Treasury Update

The committee was scheduled to receive an update on the council's borrowing and investment activities for the quarter ending 30 June 2026. The report indicated that all treasury management activities had been conducted within approved limits. It was noted that the Bank of England maintained a bank rate of 3.75% throughout the period, and no long-term borrowing was raised. The council's investment return averaged 3.916%, exceeding the average SONIA overnight rate of 3.730%. The report also detailed the economic background, including UK GDP growth, inflation rates, and unemployment figures, as well as forecasts for interest rates. The council's investment priorities were outlined as security of capital, liquidity, and yield, with investments made with institutions on the council's approved counterparty list.

Audit Update (Forvis Mazars)

Forvis Mazars, the council's external auditors, were scheduled to provide an update on their audit progress for the financial year ending 31 March 2026. The report highlighted that the auditors' work on the council's main audit and the Ealing Pension Fund audit was nearing completion. A revised approach to the 2025/26 audit was agreed upon, which would still result in a disclaimed audit opinion for that year but aimed to enable progress towards an unqualified opinion for the 2026/27 audit. The auditors also noted that they had received correspondence from three members of the public regarding the draft 2025/26 accounts, and one local elector had made a valid objection, which was being investigated. The report also detailed the framework for the value for money work, focusing on financial sustainability, governance, and improving economy, efficiency, and effectiveness. Two risks of significant weakness in value for money arrangements were identified: the persistence of prior year governance weaknesses related to building safety and compliance data, and risks associated with the closure of the council's wholly owned subsidiaries, Broadway Living (BL), Broadway Living RP (BLRP), and Greener Ealing Limited (GEL).

Quarter 1 Internal Audit and Investigation Update Report

Mike Pinder, Assistant Director of Audit and Investigations, was scheduled to present an update on the performance of the Internal Audit and Investigation team for the period 1 April 2026 to 30 June 2026. The report detailed the progress against the 2026/27 internal audit plan, with 20% of reports issued to draft or final stage, exceeding the target for the first quarter. The report also provided an update on the follow-up of high-risk recommendations, noting that 14 remained outstanding, an increase from the previous quarter. The Counter Fraud and Investigations performance was also to be reviewed, with £524,000 in proven cases detailed, comprising £504,000 in notional savings and £20,000 in actual losses. Pro-active anti-fraud work, including the National Fraud Initiative (NFI) and the NFI Fraud Hub, was also to be discussed, with estimated savings of £872,000 from the NFI data match and £392,000 from the NFI fraud hub to date. The report also covered the outcomes of Enhanced Vetting (EV) for new recruits, with 5 cases failing or being prevented between 1 April and 30 June 2026.

Quarter 1 Risk Update

This report provided an update on the council's strategic risks, owned and managed by the Strategic Leadership Team (SLT). Since the previous quarter, the number of risks had increased to 14, with the addition of a risk related to regulatory compliance in Children's Services following an OFSTED focused visit. Minor updates to mitigations on other risks were noted, with no changes to risk scores. The report included the Strategic Risk Register (SRR) and a Heat Map, with comments invited from the committee.

Whistleblowing – Annual Report

The committee was scheduled to receive an annual report on whistleblowing disclosures made under the council's policy between 1 September 2025 and 31 August 2026. The report indicated that the whistleblowing policy had been reviewed and updated during the year to include sexual harassment cases, reflecting changes in legislation. As of 31 August 2025, there were two existing open cases. Between 1 September 2025 and 31 August 2026, one new referral was received, and two 'Whistleblowing' cases were closed. One case remained open, with an update to be provided in the next review. The report also included the Whistleblowing Policy for the committee's agreement.

Audit Committee Workplan

The committee was presented with a draft indicative work plan for 2026/27 for their consideration and agreement. The plan outlined the proposed areas of work for the committee throughout the year, noting that it was indicative and subject to change based on evolving circumstances and emerging risks. The workplan included regular updates on internal audit progress, external audit reports, the Statement of Accounts, the Annual Governance Statement, risk management, treasury management, and whistleblowing reports.