The Audit and Governance Committee of Sutton Council was scheduled to consider a range of reports concerning the council's financial health, governance, and operational efficiency. Key discussions were scheduled to include updates on external and internal audits, fraud investigations, member development, insurance reviews, and the council's risk management framework.

External Audit Progress Report

The committee was scheduled to receive an update on the progress of the external audit. This included a Value for Money Risk Assessment conducted by KPMG for the period ending 31 March 2026. The report indicated that no significant risks were identified in the areas of financial sustainability, governance, or improving economy, efficiency, and effectiveness. The external auditor's report was scheduled to be noted, highlighting that the council was understood to have strong management and governance arrangements in place to maintain value for money, with no recommendations or performance improvement observations suggested by the auditor.

Internal Audit Progress Report

An update on the progress of the Internal Audit plan for 2026/27 was scheduled for discussion. This report was to summarise the work completed up to September 2026, including assurance outcomes and the status of outstanding Priority 1 actions. The Internal Audit service was understood to have sufficient capacity to deliver the agreed plan and that performance and quality were monitored through a Quality Assurance and Improvement Programme. The report was to note that six assurance reviews had been finalised, with no Limited Assurance reports issued. Three Priority 1 actions from previous years were understood to remain outstanding.

Fraud Referrals and Investigations Update

The committee was scheduled to review an update on the council's counter-fraud and investigations work for 2026/27. This report was to summarise the results of the council's efforts to protect itself from fraud and corruption, in line with its Anti-Fraud & Anti-Corruption Strategy and Whistleblowing Policy. The report was to highlight the ongoing threat of fraud, exacerbated by the increased use of Artificial Intelligence (AI) by fraudsters, and note an increased focus on fraud prevention work. Key areas of fraud risk were understood to include housing and tenancy fraud, council tax and benefits fraud, procurement and contract fraud, and cyber-enabled and identity fraud. The report was also to detail the performance results of fraud investigations and the financial savings achieved.

Member Development and Member Induction Update

A report was scheduled to provide an update on the Member Development Programme and the Member Induction Programme. The Member Development Programme was understood to aim to equip councillors with the skills and knowledge to effectively represent residents and improve their understanding of key subject areas relevant to the council's priorities. The report was to include feedback on the induction training sessions held for councillors following the May 2026 local elections, covering topics such as the Code of Conduct, Finance and Policy, Data Protection, and Safeguarding.

Annual Insurance Review

The committee was scheduled to review the annual performance of the council's insurance service. This service was understood to be responsible for the council's insurance programme and to provide claims handling and underwriting advice. The report was to detail the revenue generated from partnerships with other public sector organisations, which was understood to help reduce the council's own insurance overheads. It was also to cover the insurance arrangements for Aspects, a high-rise property, and the impact of the removal of unsafe external cladding on insurance costs. The report was to highlight the positive feedback received from stakeholders regarding the service's performance.

Annual Complaints Report 2025/26

An overview of customer contact and complaints received during 2025/26 was scheduled for discussion. The report aimed to provide assurance that the council learns from feedback to improve services and meets its priority of being an efficient and well-run council. It was to detail corporate and statutory complaints, including those related to adult and children's social care, education, and housing landlord complaints. The report was also to summarise the findings of the Local Government and Social Care Ombudsman and the Housing Ombudsman, and outline the updated complaints policy in line with the Ombudsman's Complaint Handling Code.

Review of Corporate Risk Register

The committee was scheduled to review the updated Corporate Risk Register for September 2026. This report was to summarise the key risks facing the organisation, the actions being taken to mitigate them, and any changes made to the register since the previous review. Key risks highlighted for further review were understood to include the potential need for exceptional financial support to set a balanced budget, the impacts of climate change, pressures on the Housing Revenue Account, technology failure, and the implications of planned NHS changes. A new risk concerning the introduction of the Emissions Trading Scheme (ETS) in 2028 was also to be discussed.

Risk Register Deep Dive: Potential Impact of Frequent Extreme Weather Events and the Response of the Council

This report was scheduled to focus on the risks associated with climate change, specifically the potential impacts of more frequent and severe extreme weather events such as heatwaves, flooding, and drought. It was to outline how these risks are managed, including the mitigations understood to be in place for extreme weather, food scarcity, and the impact on utilities. The report was to highlight that climate adaptation is a key component of the new Environment Strategy being developed for 2027, with research understood to be undertaken to identify areas most at risk and to develop an intelligence-led approach to adaptation.

Review of Savings Delivery

The committee was scheduled to receive an update on the progress made in delivering the 2026/27 budget and planned savings. This report was intended to provide assurance on the council's ability to manage its finances effectively and mitigate the key risk of financial sustainability. The report was to detail the amount of savings forecast to be achieved, identify any savings that were unlikely to be delivered in full, and explain the reasons for any variances. The overall forecast was understood to indicate a high percentage of planned savings were expected to be delivered.