The Audit and Governance Committee of Waltham Forest Council met on 6 May 2025 to consider a range of reports related to the council's financial and governance arrangements. The agenda included updates on school finances, the final statement of accounts, accounting policies, grant certifications, anti-fraud activities, internal audit progress, and the annual governance statement.

LA Maintained School Financial & Governance Overview

The committee was scheduled to review a report outlining the financial responsibilities and processes for local authority maintained schools, those which are not academy schools. The report included a summary of assurance opinions given to schools within the borough over the past three years. The report pack included a sample of the cycle of work provided to governing bodies that buy into Waltham Forest’s Governor Services, to ensure that all statutory requirements are achieved, and information collated and published. The report pack noted that all LA maintained schools within the London Borough of Waltham Forest are subject to an internal audit review at least every three years. The frequency may be increased where emergent risks and issues are identified, for example if the school is in deficit, there has been a change in leadership or where limited assurance has been provided in previous year. The report pack also noted that during 2024-25, The Downsell School received a Limited Assurance report due to a high-risk finding regarding the lack of complex passwords and enforced password changes. The Leytonstone School also received a Limited Assurance report. The report pack stated that Internal Audit follows up on all No and Limited Assurance Internal Audit Reports and provides an update to the Audit & Governance Committee.

Final Signed Statement of Accounts 2023-24

The committee was scheduled to consider the final signed statements of accounts for 2023-24 for both the London Borough of Waltham Forest and the Waltham Forest Pension Fund. The report pack noted that the London Borough of Waltham Forest accounts were issued a Disclaimer of opinion because of the Accounts and Audit (Amendment) Regulations 2024, requiring publication by 28 February 2025. The external auditor, KPMG, stated that they had been unable to obtain sufficient appropriate audit evidence over a number of areas of the financial statements. The report pack stated that the Pensions Fund accounts for 2023-24, in the auditor’s opinion, “give a true and fair view of the financial position” as at 31st March 2024, and “have been properly prepared in accordance with CIPFA/LASAAC Code of Practice”. The Auditor’s Annual Report included the Value for Money audit findings, with the auditor's opinion stating: Our opinion is that the Council does have appropriate arrangements in place. We identified no significant weaknesses in respect of arrangements to secure economy, efficiency, and effectiveness in the use of resources. The Council’s ISA260 report noted one priority one control deficiency in relation to declaration of interest forms, and two priority two control deficiencies in relation to bank reconciliation and review of pensions valuation methodology.

Accounting Policies 2024-25 and 2025-26

The committee was scheduled to review and approve the accounting policies for 2024-25 and 2025-26. The report pack stated that the proposed policies included one significant change in relation to IFRS16 Leases and a minor change in relation to Property, Plant and Equipment (PPE) expenditure recognition threshold. The report pack stated that the principal change in relation to IFRS 16 is that it removes the existing classifications of operating and finance leases, and requires lessees to recognise assets and liabilities on the balance sheet for all leases with a term of more than 12 months unless the underlying individual asset is of low value (less than £10,000). The report pack stated that the proposed change to the policies in relation to recognition of Property, Plant and Equipment (PPE) is to reduce the threshold in recognising initial cost capital expenditure down to £10,000 from £20,000 in previous years.

Grants and Returns Certification 2024-25

The committee was scheduled to note the outcome of the procurement exercise for External Audit appointment for Grant Claims and Returns Certification works for 2024-25. The report pack stated that Grant Thornton had been selected to undertake these audits for 2024-25, at a total cost of approximately £65,000 excluding VAT. The grants and returns requiring certification were listed as:

• Housing Benefit Assurance Process (HBAP)
• Teachers Pensions End of Year Certificate (EOYC)
• Pooling of Housing Receipts

Corporate Anti-Fraud Team Annual Report 1 April 2024 to 31 March 2025

The committee was scheduled to receive an update on the work of the Corporate Anti-Fraud Team (CAFT) for the financial year 2024-2025. The report pack included a proposed Proactive and Reactive Fraud Plan for 2025-26, and noted that CAFT had three key areas of workstreams: Proactive, Reactive and Redress. The report pack listed the highlights from 1 April 2024 to 31 March 2025, including:

• 4 Cautions
• 1 Prosecution for subletting
• 7 Dismissals
• 5 Written Warnings
• Recovered 64 council properties
• Prevented 8 Right-To-Buy fraudulent applications, with a total discount value of £1,091,200
• 2 Unlawful Profit Orders awarded totaling £3,728
• 254 Blue Badges seized or cancelled and 54 successful prosecutions
• NFI 2024-25 identified savings totalling £247,053 The report pack stated that CAFT had been working on a data matching exercise with the NFI London Fraud Hub, and that the total overpayment identified by the council on LFH since they joined the Hub in March 2022 is £817,763. The report pack stated that CAFT had been working with housing colleagues to conduct a Gas Forced Entry keys audit on properties where the lawful tenant has failed to collect the keys to the property in a timely manner, and that CAFT had reviewed 119 cases. The report pack stated that CAFT had launched a Food Innovation Fund to offer grants to local VCS groups who want to move towards more innovative food practices and a more diversified offer of food support for residents. The report pack stated that the Digital Inclusion Strategy was developed in 2022 outlining an ambitious vision and delivery plan to ensure everyone in the borough has the skills, tools, and support to thrive in an increasingly digital world. The report pack stated that the Council is working in partnership with the University of Portsmouth to deliver a once-in-a-generation opportunity to deliver the first higher education campus within the borough. The report pack stated that the Council continues to build on the legacy of becoming the first London Borough of Culture in 2019. The report pack stated that the Council has successfully become a Borough of Sanctuary for refugees and asylum seekers. The report pack stated that the Council has secured £39 million of government funding to projects in Walthamstow, Chingford Mount and Higham’s Park and Leyton Underground Station. The report pack included a briefing paper on The Economic Crime and Corporate Transparency Act 2023 (ECCTA), noting that a new corporate offence of a failure to prevent fraud comes into effect on 01 September 2025, and that ECCTA increases Local Authority accountability, and they may be prosecuted if they fail to prevent fraud.

Progress Update on delivering the 2024-25 Internal Audit Plan

The committee was scheduled to receive an update on the progress made on the 2024-25 Internal Audit Plan and also a briefing on the changes implemented by the new Global Internal Audit standard. The report pack included a chart showing the status of the delivery of the 2024-25 Internal Audit plan, and a table showing the outcomes of final reports completed that have not yet been reported to Committee. The report pack stated that during 2024-25, Internal Audit completed three follow-up audits for schools that received Limited Assurance in the last Internal Audit Report. The report pack stated that the new Global Internal Audit standards (GIAS) consisted of five domains, 15 principles and 52 standards.

Annual Governance Statement

The committee was scheduled to approve the draft Annual Governance Statement. The report pack stated that the Annual Governance Statement will remain a live document up to the point when the audited Financial Statements are signed by the Council, and that if any significant matters arise that relate to 2024/25 that could affect the Annual Governance Statement, it will be amended accordingly. The report pack included a summary of the actions the Council will take in the year ahead to address the main governance issues identified in the review of effectiveness. The report pack stated that the council is committed to transparency and believes residents have a right to see what is going on and to hold the council to account. The report pack stated that the council is leading the largest programme of homebuilding in a generation, creating homes for people at affordable prices. The report pack stated that the Council continues to build on the legacy of becoming the first London Borough of Culture in 2019. The report pack stated that the Council has successfully become a Borough of Sanctuary for refugees and asylum seekers. The report pack stated that the Council has secured £39 million of government funding to projects in Walthamstow, Chingford Mount and Higham’s Park and Leyton Underground Station. The report pack stated that the Council won the LGC Workforce Award in the category ‘Best Equality, Diversity and Inclusion Employer’.