The Cabinet Member for Finance & Corporate, Councillor Johann Beckford, approved the commencement of procurement processes for the provision of internal audit services, utilising framework agreements with Croydon Council and Barnet Council. This decision ensures Haringey Council maintains a statutory internal audit function from October 2026, with a total contract value of up to £2.0m with Croydon Council and up to £4.0m with Barnet Council over extended periods.

Provision of Internal Audit Services

Councillor Johann Beckford, the Cabinet Member for Finance & Corporate, approved the commencement of procurement processes to secure internal audit services for Haringey Council. The decision involves entering into Access Agreements with both Croydon Council and Barnet Council to utilise their respective framework agreements.

Under the agreement with Croydon Council, Haringey Council will call off services from their single-supplier Audit Services Framework Agreement. This will result in a contract with Forvis Mazars Public Sector Internal Audit Ltd (Mazars) to deliver internal audit services from 1 October 2026 for a period of three years and six months, concluding on 31 March 2030. The total cost for this service is capped at £2.0 million over the contract duration.

Additionally, Haringey Council will enter into an Access Agreement with Barnet Council to utilise their multi-supplier Internal Audit and Advisory Services (Cross Council Assurance Service) Framework Agreement. This contract will run from 1 October 2026 to 31 March 2029, with a total cost of up to £1.5 million. The decision also allows for an extension of this contract with Barnet Council for up to an additional five years, until 31 March 2034. If this extension is exercised, the cost would increase by £2.5 million, bringing the aggregated total value of the contract with Barnet Council to £4 million over an eight-year period. The overall annual cost for internal audit services across both agreements will not exceed £0.5 million, accounting for inflationary increases based on 2026/27 tendered prices.

The current internal audit contract was due to expire on 31 March 2026, having been extended to 30 September 2026. As internal audit is a statutory function, it is essential to have an appropriate service in place from 1 October 2026 to ensure ongoing compliance with statutory requirements.

Several alternative options were considered. An in-house service was deemed unlikely to be feasible due to recruitment and retention challenges, although the council will continue to consider recruiting internal audit professionals for specific tasks. An open tender process was not recommended due to the resource intensity and the likelihood of not achieving better value than existing framework options. Utilising the Crown Commercial Services (CCS) framework was also not recommended, as the indicative daily rates were higher than those available under the Croydon Council Framework. A shared service arrangement with another local authority was considered but not recommended at this time, although it may be explored in the future. The recommended options, utilising the Croydon and Barnet Council frameworks, were chosen for their value for money and flexibility.

The decision to use framework agreements is supported by the Council's Contract Standing Orders (CSO) and the Procurement Act 2023. The Chief Procurement Officer noted that these frameworks offer the best method for contracting internal audit services and will provide the best value for money. The Director of Legal and Governance confirmed there were no legal reasons preventing the approval of the recommendations. The report also stated that the contracted providers will be required to demonstrate a strong commitment to equality and fairness in line with the Equality Act 2010.

The internal audit work is considered to make a significant contribution to ensuring the adequacy and effectiveness of internal control throughout the council, aligning with its corporate delivery plan and high-level strategic outcomes. The report also noted that the internal audit work contributes to ensuring adequate and effective internal control across all key priority areas, including those related to carbon and climate change.

The decision document detailing these approvals can be found at Decisions 07th-Sep-2026 11.30 Cabinet Member Signing.pdf. The full reports pack for the meeting is available at Public reports pack 07th-Sep-2026 11.30 Cabinet Member Signing.pdf, and the agenda can be viewed at Agenda frontsheet 07th-Sep-2026 11.30 Cabinet Member Signing.pdf.