The Governance, Audit, Risk Management and Standards Committee of Harrow Council met on Wednesday 02 April 2025 to review the council's audit strategies, risk registers, and internal audit and anti-fraud plans for the upcoming year. The committee also received an update on a Housing Ombudsman determination.

Audit Strategy 2024/2025

The committee was scheduled to receive an update on the audit strategy for the London Borough of Harrow Council for the year ending 31 March 2025. This included information on the planned audit approach, significant audit risks, and key judgement areas. The report also detailed the audit team and confirmed the independence of the auditors, Forvis Mazars LLP. The strategy outlined the planned procedures for the audit, including risk assessment, fieldwork, and completion stages. Significant risks identified for the council's audit included management override of controls, valuation of the net defined pension liability, valuation of property, plant and equipment, migration of payroll data, and the implementation of IFRS 16. For the Pension Fund audit, significant risks included management override of controls, valuation of investments within level 3 of the fair value hierarchy, and migration of payroll data. The report also detailed the proposed audit fees for both the council and the pension fund.

Directorate Risks Updates

The committee was scheduled to review the risk registers for the Culture, Environment and Economy Directorate and the Housing and Regeneration Directorate for the third quarter of the 2024-2025 financial year.

For the Culture, Environment and Economy Directorate, the report indicated three open risks. None were rated RED, with two rated AMBER and one rated GREEN. The risks were:

• Failure to continue provision of Leisure Services (rated AMBER D2), with procurement delays noted.
• Failure to procure build contractors for the Future High Streets Fund (FHSF) Meanwhile Use and Kiosk projects (rated GREEN D3), with minor delays anticipated.
• Fraud is committed resulting in financial loss at the Directorate (rated AMBER C3), with ongoing mitigation measures in place.

For the Housing and Regeneration Directorate, there were 11 open risks. Four were rated RED, six AMBER, and one GREEN. Key RED risks included:

• Housing do not deliver health and safety statutory duties and regulatory requirements (rated RED C2), a corporate risk with ongoing implementation of audit recommendations.
• PFI schools contracts remain unmanaged without sufficient controls in place (rated RED B2), a new risk identified following an audit with 'No' assurance.
• The Estates and Facilities Service are unable to effectively manage and resource the necessary works across Council assets (rated RED C2), with reviews of the Corporate Landlord function and Estates and Facilities structure underway.
• Planning are unable to meet new legislative and policy requirements (rated RED C2), with ongoing reviews of structure and potential impacts of new legislation.

Two new risks were identified for the Housing and Regeneration Directorate in Q3: PFI schools contracts remaining unmanaged, and a corporate risk related to the Failure to respond sufficiently to the outcomes of the Grenfell Tower Public Inquiry Phase 2 (rated AMBER D2).

Housing Ombudsman Determination

The committee was scheduled to receive a report detailing a determination by The Housing Ombudsman following a resident's complaint. The complaint concerned the council's handling of defective windows and roof repairs, as well as the associated complaint process. The Housing Ombudsman determined there was severe maladministration in the handling of the defective windows and maladministration in the handling of the roof repairs and the associated complaint. The Ombudsman ordered the council to apologise in writing, pay £1,700 in compensation, contact the resident regarding window installation quality, and conduct a senior management review of the case. Recommendations were also made for staff attendance at Housing Ombudsman workshops. The report indicated that the council had complied with all orders and recommendations, receiving positive feedback from the Ombudsman on its response.

Internal Audit Annual Plan 2025/2026

The committee was asked to review and approve the Internal Audit Annual Plan for 2025/26 and the reviewed Internal Audit Charter. The plan is risk-based and developed in accordance with the Global Internal Audit Standards (GIAS). The report highlighted the functional reporting relationship of the Assistant Director, Audit & Anti-Fraud to the GARMS Committee, while noting that objectivity is impaired due to the Assistant Director's responsibility for the Corporate Anti-Fraud Team, Corporate Risk Management, and the Annual Governance Statement. This gap is mitigated by management assurance, oversight from GARMS and CLT, and limited assurance from external auditors. The plan outlines the available operational audit days and the audit techniques to be used.

Corporate Anti-Fraud Annual Plan 2025-2026

The committee was asked to review and approve the Corporate Anti-Fraud Plan for 2025-26. The plan is risk-based and informed by internal and external factors, including national reports and trends. Key workstreams include a corporate fraud risk assessment, review of the Corporate Anti-Fraud & Corruption Strategy, coordination of the National Fraud Initiative (NFI) data match exercise, and raising awareness of new legislation under the Economic Crime and Corporate Transparency Act 2023. The plan also details specific work on housing fraud, social care fraud, council tax and business rates fraud, and disabled parking badge misuse. The Corporate Anti-Fraud Team consists of 6 FTE officers, all Accredited Counter Fraud Officers.

Review of Treasury Management Strategy 2025/26

The committee received a report detailing the council's Annual Treasury Management Strategy Statement for 2025/26, including Prudential Indicators, Minimum Revenue Provision Policy Statement, Annual Investment Strategy, and Annual Capital Strategy. The committee resolved to recommend these matters to the Cabinet for consideration. A separate training session for committee members on Treasury Management was also confirmed.