The Governance, Audit, Risk Management and Standards Committee (GARMS) met on Monday 07 October 2024 to discuss the council's risk register, treasury management performance, corporate complaints, and audit progress. Key decisions included noting the council's strategic and high-level service risks, approving the Q1 Treasury Management Performance Update, and noting the progress on various external and internal audits.

Quarterly Risks Report (Q1 2024/25)

The committee received an overview of the council's strategic and high-level service risks for the first quarter of 2024/25. It was noted that there were 202 open risks across the organisation, with 25 strategic risks and 177 service risks. The report detailed specific high-level strategic risks, including those related to environmental sustainability, cyber security, financial challenges, and the affordability of the capital programme. Several service risks were also highlighted, such as increased demand for temporary accommodation, school budget pressures, and the strain on SEN transport. The committee requested further information on the funding required for the sustainability programme and updates on the Brent Cross programme's economic impact should interest rates decrease.

Treasury Management Performance Update - Q1 2024/25

David Spreckley, Head of Pensions and Treasury, presented the Q1 2024/25 Treasury Management Performance Update. The committee was informed that the council had borrowed £10 million and treasury investment balances had risen by £40 million during the quarter. Despite falling interest rates, the council continues to borrow to fund its Capital Programme, placing pressure on the Capital Financing budget. The report detailed changes to the Capital Programme, reserve usage, and external borrowing levels. Strategic priorities for the Treasury team were outlined, including improving data collection for cashflow forecasting, developing a strategy for refinancing £85 million of external borrowing, and managing working capital. The committee noted the update and the strategic priorities identified.

2023/24 - Corporate Complaints and Local Government and Social Care Ombudsman (LGSCO) Annual Report

Officers presented the annual report on corporate complaints and LGSCO investigations for 2023/24. The committee noted a significant improvement in performance, with a 14% decrease in corporate complaints received compared to the previous year and a lower proportion of upheld complaints (37%). The number of LGSCO investigations had also reduced by 46%, with an upheld rate of 5.7 per 100,000 residents, which is below the London average. The LGSCO's annual letter acknowledged the council's improved performance in responding to enquiries. The committee noted and agreed the actions taken by the council to remedy issues and improve performance.

Complaints About Councillors April 2023 - March 2024

The Monitoring Officer presented a report outlining complaints received about councillors between April 2023 and March 2024. Six complaints were dealt with during this period, a decrease from the previous year. For one complaint, the resident did not provide details. In two cases, the councillor apologised, and in two cases, no breach of the code of conduct was found. In one instance, the councillor was found not to be acting in their capacity as a councillor. The committee noted the report.

Internal Audit Exception Recommendations Report and Q1 Progress Report 9th May 2024 to 30th June 2024

Clair Green, Executive Director of Assurance and Public Protection, presented the Q1 progress report for Internal Audit. The committee was informed that 36% of the annual internal audit plan had been completed, exceeding the target of 25%. There were no 'Limited' or 'No' assurance reports issued. Follow-up work on high and medium priority actions indicated that 47% were implemented, 48% were in progress, and 5% were not implemented. The committee noted the general work completed and the work on schools.

External Audit 2020/21, 2021/22 and 2022/23

Ciaran McLaughlin from BDO provided a verbal update on the external audits for 2020/21, 2021/22, and 2022/23. The committee was advised that legal advice would be sought regarding a Pension Fund transaction. BDO confirmed that all audits would be completed by the 13 December 2024 backstop date, but noted that disclaimed opinions might be issued due to the time constraints. The committee expressed dismay at the lack of progress and the prolonged delays, particularly concerning queries about bank details and audit committee minutes. Councillor Ella Rose moved a motion to amend the recommendation to reflect limited and unsatisfactory progress, which was unanimously agreed.

2023/24 External Audit Progress Report

Paul Dossett from Grant Thornton presented an update on the 2023/24 external audit. The committee was informed that fieldwork had commenced in July and was ongoing. A draft Audit Findings Report would be presented in November. The committee noted the audit progress and sector update, and provided comments on the matter.

Committee Forward Work Programme

The committee discussed its forward work programme and requested that an audit of the Treasury management systems be brought forward for the next committee meeting. Councillor David also requested a report from the Adults Financial Sustainability Board. The committee noted that the dates for the 2025 municipal year would be moved and members would be canvassed for their availability.

The meeting concluded with the Chair declaring no other urgent items.