The Audit and Performance Committee of Westminster Council was scheduled to consider the audited accounts for the Council and the Pension Fund, alongside the external auditor's annual report. The meeting agenda also included a review of the Council's work programme for the upcoming year and an annual report on complaints.

Audited Accounts and Audit Findings Report (Council)

The committee was scheduled to review the audited Statement of Accounts and the Audit Findings Report for Westminster City Council for the financial year ending 31 March 2026. This included a detailed examination of the Council's financial position, performance, internal controls, and risks. The Audit Findings Report from Grant Thornton was expected to outline the outcome of their audit work, including any adjustments made to the accounts and recommendations for improvement.

The report pack indicated that the audit was substantially complete, with Grant Thornton expecting to issue an unmodified opinion on the Council's accounts, subject to the satisfactory completion of some final review work. Key areas of focus for the audit included the Council's new temporary accommodation partnership arrangements and the additional assurance work required following a cyber incident. Several material adjustments were noted in the Audit Findings Report, primarily relating to these temporary accommodation transactions, which involved the formation and accounting treatment of new Limited Liability Partnerships (LLPs). These adjustments included entries for intercompany consolidation, agency transactions in Assets Held for Sale and the Cash Flow Statement, and the recognition of sale and leaseback transactions.

The report also detailed Grant Thornton's assessment of the Council's Value for Money (VfM) arrangements, which were rated as 'green' across the three criteria of Financial Sustainability, Governance, and Improving Economy, Efficiency and Effectiveness. No significant weaknesses or improvement recommendations were identified in this assessment.

Audited Accounts and Audit Findings Report (Pension Fund)

The committee was also scheduled to review the audited Statement of Accounts and Audit Findings Report for the Westminster Pension Fund for the financial year ending 31 March 2026. This would have provided an overview of the Fund's financial position, including its assets, liabilities, and investment performance.

The Audit Findings Report from Grant Thornton was expected to confirm that the accounts presented a true and fair view of the Pension Fund's financial transactions. The report indicated that the Pension Fund's net assets were £2.234bn as at 31 March 2026, showing a net increase over the year, largely due to positive investment performance within global equity mandates. The report also noted that the Pension Fund's funding level had increased to 140% as at 31 March 2025, compared to 128% at the previous triennial valuation. No significant findings or material audit adjustments were reported for the Pension Fund accounts.

External Auditor's Annual Report

The committee was scheduled to receive the external auditor's annual report. This report typically summarises the auditor's overall findings from the audit of the financial statements and the value for money assessment. It would have provided commentary on the Council's arrangements for securing economy, efficiency, and effectiveness in its use of resources, covering financial sustainability, governance, and improving economy, efficiency, and effectiveness. The report pack indicated that Grant Thornton expected to issue an unmodified opinion on the Council's financial statements and had rated the Council's Value for Money arrangements as 'green' across all three criteria.

Annual Complaints Review (Council)

The committee was scheduled to consider the Council's Annual Complaints Review for 2025/26. This report would have provided a summary of complaint performance across various services, including Stage 1 and Stage 2 complaints, and those escalated to the Local Government and Social Care Ombudsman (LGSCO). The report indicated a 19% increase in Stage 1 complaints received, with Housing Services accounting for the majority. Response times were noted to have been affected by a cyber incident in November 2025. The report also highlighted the LGSCO's findings, noting that 18 out of 19 investigated complaints were upheld, with 100% compliance with recommended remedies. Priorities for 2026/27 included implementing a new complaints system and increasing the use of AI to support complaint handling.

Children's Services Annual Complaints Report

A separate report on complaints received by Children's Services for 2025/26 was also scheduled for review. This report would have detailed statutory and non-statutory complaints, themes, volumes, response times, and outcomes. It noted an increase in complaints received, particularly concerning Social Care teams and the Special Educational Needs (SEN) service. The report also highlighted the impact of the cyber incident on response times and provided details of LGSCO investigations and learning from complaints.

Housing Management Annual Complaints Report

The committee was also scheduled to review the Housing Management Service's Annual Complaints Report for 2025/26. This report would have provided performance data on complaints from tenants and leaseholders, including Stage 1 and Stage 2 complaint volumes, response times, and outcomes. It noted that 75% of complaints related to repairs and that response times were impacted by the cyber incident. The report also detailed findings from the Housing Ombudsman Service (HOS), including a maladministration rate of 55%, a reduction from the previous year. The report indicated that the Council had received a Tier 1 further investigation notice from the HOS.

Work Programme

The committee was scheduled to consider and agree the work programme for the 2026/27 municipal year, outlining the topics to be discussed at future meetings. This would have included updates on Q2 performance and finance monitoring, temporary accommodation, treasury management strategy, internal audit progress, and counter fraud activity.