The Governance, Audit, Risk Management and Standards Committee of Harrow Council met on Wednesday 2 April 2025 to review audit strategies, directorate risk updates, and annual plans for internal audit and anti-fraud measures. Key discussions included the audit strategy for the upcoming financial year, risk assessments across various directorates, and the approval of the Internal Audit and Corporate Anti-Fraud plans for 2025/26.

Audit Strategy 2024/2025

The committee received an update on the external audit plan for 2024/2025. The Strategic Director of Finance, Sharon Daniels, presented the report, highlighting that the 2023/2024 statement of accounts had been disclaimed due to backstop arrangements. Representatives from Mazars, the external auditors, provided an overview of the significant risks and key judgement areas for the upcoming audit, with planning and risk assessment work expected to be completed by the end of April 2025. Members sought clarification on how significant risks are addressed across multiple audits and the process for rebuilding assurance following the previous year's disclaimer. The auditors confirmed that valuations of property, plant, and equipment would be undertaken once samples were received, and that work would be conducted on the payroll migration. The Chair emphasised the need for a clear plan and timeline for the additional work required, which would be presented at a future meeting. The committee noted the audit strategy memorandum for both the London Borough of Harrow and the Pension Fund.

Culture, Environment and Economy Directorate Risks Update Q3 2024-2025

The committee reviewed the risk register for the Culture, Environment and Economy Directorate for Quarter 3 of 2024/2025. This was the first time this directorate's risk register was presented to the committee, following its recent creation. The Strategic Director for Culture, Environment and Economy, Cathy Knubley, informed members that there were three open risks, none of which were rated as red. The risks identified were: failure to continue provision of Leisure Services (rated Amber D2), failure to procure build contractors for the Future High Streets Fund (FHSF) Meanwhile Use and Kiosk projects (rated Green D3), and fraud resulting in financial loss (rated Amber C3). Mitigation measures for these risks were discussed, including a potential contract extension for Leisure Services and ongoing procurement efforts for the FHSF projects. Members questioned the ongoing nature of the fraud risk, which was clarified as a standard monitoring process across all directorates. The committee noted the report.

Housing and Regeneration Directorate Risks Update 2024-2025

The Housing and Regeneration Directorate presented its risk register for Q3 2024/2025. The Acting Strategic Director, Emma Talbot, explained that this was also the first time this directorate's register was being presented to the committee. The directorate has 11 open risks, with 4 rated red, 6 amber, and 1 green. Key risks highlighted included housing not delivering on health and safety statutory duties (rated Red C2), PFI schools contracts remaining unmanaged (rated Red B2), the Estates and Facilities Service's inability to manage works across Council assets (rated Red C2), and Planning being unable to meet new legislative and policy requirements (rated Red C2). Members sought clarification on the PFI contract obligations and whether any risks had improved in Q4. It was noted that Risk 1 had been reduced and Risk 11 was being removed. A member expressed a desire for more regular updates on directorate risk registers, which was agreed to be discussed further. The committee noted the report.

Housing Ombudsman Determination

The committee received a report detailing a determination by the Housing Ombudsman following a complaint from a Harrow resident. The complaint concerned the Council's handling of defective windows and roof repairs, as well as the associated complaint process. The Ombudsman found severe maladministration in the handling of the window defects and maladministration in the handling of the roof repairs and the overall complaint. The Ombudsman issued orders for an apology, £1,700 in compensation, a senior management review of the case, and recommended staff attendance at relevant workshops. The report confirmed that the London Borough of Harrow had complied with all orders and recommendations, receiving positive feedback from the Ombudsman on the learning and service improvement demonstrated. The committee noted the report and the Ombudsman's findings.

Internal Audit Plan 2025/2026

The committee reviewed the draft Internal Audit Annual Plan for 2025/2026 and the updated Internal Audit Charter. The Assistant Director of Internal Audit and CAFT, Tracy Barnett, presented the report, outlining the adoption of new Global Internal Audit Standards (GIAS) and the resources available for the upcoming year. A member questioned the realism of completing all planned work, with the aim being to achieve a draft report stage on 90% of the plan. The committee approved the Internal Audit Annual Plan 2025/26 and the Internal Audit Charter 2025/26, and noted the annual planning process, strategy, organisational independence, resources, audit techniques, and other sources of assurance.

Corporate Anti-Fraud Annual Plan 2025-2026

The committee received the Corporate Anti-Fraud Team's plan for 2025/2026. The plan was developed considering internal and external factors assessing fraud risks, drawing on data from the Local Government Fraud Strategy, the Council's refreshed Anti-Fraud & Corruption Strategy, and national trends. The plan is to be delivered by an in-house team of six accredited counter fraud officers. The committee approved the Corporate Anti-Fraud Plan 2025-26 and noted the annual plan process, development process, and available resources.

The meeting, which commenced at 6:30 pm, closed at 8:30 pm.