The Governance, Audit, Risk Management and Standards Committee (GARMS) convened to consider a range of reports, including updates on risk management, audit planning, and the council's governance framework. The agenda included the approval of the Annual Governance Statement, review of the Corporate Anti-Fraud Team's activities, and discussion of the Treasury Management Outturn.

Here's a summary of the key topics that were scheduled for discussion:

External Audit and Financial Reporting

The committee was scheduled to receive updates on the external audit progress for 2023/24 and the audit plan for 2025/26. The report pack included the 2024-25 Grant Thornton Audit Planning Report, which outlined the planned audit strategy for the year ending 31 March 2025, including materiality, key audit risks, and the proposed approach. Key areas of focus for the external auditor's work included:

• Controls
• Inter-company/Group transactions
• Dwelling valuations
• Pension net liability
• Implementation of the new finance system, Oracle
• IFRS 16 leases Implementation¹

The committee was also scheduled to discuss the May 2025 External Audit Progress Report, which noted that the audit work was substantially complete, but Grant Thornton (GT) had been unable to issue an audit opinion because audit opinions for financial years 2020-21 to 2022-23 had not yet been issued, and there were ongoing issues regarding transactions between the council and the pension fund.

Rectification of Pension Fund Prepayments and Repayments

The committee was scheduled to discuss a report on the rectification of prepayments and subsequent repayments between the council and the pension fund. The report pack included an action plan, a pension fund procedure note, and the Executive Director Resources Scheme of Delegation. The report pack also included the 20-21 Annual Governance Statement Updated and the 21-22 Annual Governance Statement Updated.

Quarterly Risks Report

The committee was scheduled to discuss the Quarterly Risks Report, which provided an overview of risks for the latest quarter, focusing on the council’s strategic and high-level service risks. The report pack included Appendix A – Strategic Risks by Category and Appendix B – High Level (15+) Risks by Category. The report noted that there were 188 open risks across the Directorate risk registers in Q4, which was seven less than in Q3. The open risks comprised of 23 strategic risks (two less than in Q3) and 165 service risks (four less than in Q3). Most strategic risks were assigned to either the Statutory duty or Finance category. Summary information was provided on the seven high level (15+) strategic risks (by category):

• Business continuity
  • STR013 Cyber security - business continuity, staff training and governance
• Finance
  • STR017 Revenue overspend
  • STR028 Affordability of the capital programme
  • STR037 Climate change and net zero
  • STR021 Increase in the North London Waste Authority (NLWA) levy
  • STR035 Equal pay claim
• Staffing and culture
  • STR026 Delivery of corporate plan and service priorities

Internal Audit Activity and Plans

The committee was scheduled to receive the Internal Audit Exception Recommendations Report and Q4 Progress Report, along with the Head of Internal Audit Annual Opinion 2024/25 and the Internal Audit Annual Plan 2025/26. The report pack also included the Internal Audit Strategy 2025-2028 and the Internal Audit Charter 2025-26. The Internal Audit Q4 progress report noted that 99% of the 2024/25 annual internal audit programme had been delivered, meeting the Q4 target of 95%. The Internal Audit Q4 Follow-up Outcomes Report showed that 44% of actions followed up in Q4 had been confirmed as implemented, which is below the target of 90%.

SIRO Annual Report

The committee was scheduled to discuss the Senior Information Risk Owner (SIRO) Annual Report 2024 - 2025, which presented a summary of information governance risks, issues, and the council’s activities to ensure appropriate governance of information within the Council. The report noted that the council had a positive culture of reporting information incidents, and that lessons from incidents were used to improve processes and shared across the council to maintain awareness. The report also noted that all staff are required to undertake mandatory Data Protection Essential and Information Security e-learning, and that the council had achieved a compliance rate of 97% for both modules, exceeding the 95% target.

Corporate Anti-Fraud Team (CAFT) Annual Report and Anti-Fraud Strategy

The committee was scheduled to discuss the Corporate Anti-Fraud Team (CAFT) Annual Report 2024-25 and the Anti-Fraud Strategy and Annual Plan 2025-26. The CAFT Annual Report highlighted key achievements, including:

• Corporate Fraud: Investigated 116 cases, resulting in 2 criminal prosecutions and 5 disciplinary actions.
• Concessionary Travel Fraud: Investigated 521 cases, achieving 59 successful criminal prosecutions.
• Tenancy Fraud: Investigated 841 cases, recovering 34 properties and denying 64 Right to Buy applications.
• Financial Investigations: Conducted 22 Financial Investigations under POCA, with ongoing recovery of confiscation orders. The Anti-Fraud Strategy and Annual Plan 2025-26 detailed the team's strategy for preventing and addressing fraud, which falls into five key areas: Govern, Acknowledge, Prevent, Pursue, and Protect.

Treasury Management Outturn

The committee was scheduled to discuss the Treasury Management Outturn 2024/25, which summarised the council’s treasury position throughout the year. The report noted that the council had needed considerable borrowing, with £246m new borrowing in 2024/25, and total borrowing standing at £1,157.1m as of 31 March 2025. The council's Treasury Cash position had reduced from around £57.6 million at 31 March 2024 to approximately £39.1 million at 31 March 2025. The report also set out the strategic priorities for 24/25 (and beyond) identified by the Treasury team:

• Improve processes around collecting quality and timely data for cashflow forecasting and budget monitoring purposes.
• Develop strategy for refinancing external borrowing due February / March 2025.
• Manage working capital and the debtors’ position to ensure that the council is recovering cash as quickly as it can.
• Improve overall reporting to Elected Members and the Senior Leadership Team.
• Update and modernise all key Treasury process documents.
• Monitor the forecast on the Capital Finance Cost Centre especially regarding interest repayments related to existing and potential future borrowing.

Annual Governance Statement and Code of Corporate Governance

The committee was scheduled to discuss the Annual Governance Statement for 2024/25 and the Code of Corporate Governance 2025/26. The Annual Governance Statement outlined the governance framework and measures progress against the Code of Corporate Governance, highlighting any significant governance issues and steps taken to mitigate those issues. The Code of Corporate Governance 2025/26 was prepared in accordance with the CIPFA Delivering Good Governance in Local Government Framework 2016 and included the principles and sub-principles of good governance and how the council complies with them.

Annual Report of the GARMS Committee

The committee was scheduled to discuss the Annual Report of the GARMS Committee 2024-2025, which provided an overview of the committee's activity and effectiveness during the year. The report noted that the GARMS Committee is committed to improving shortcomings in the control environment, rather than apportioning blame.

Committee Forward Work Programme

The committee was scheduled to discuss its forward work programme.