The Audit Committee of Hammersmith and Fulham Council met to discuss external audit plans, internal audit reports, and anti-fraud measures. The committee approved noting the external audit plans for 2024-25 and the head of internal audit's opinion on the council's governance, risk management, and control framework, as well as the Corporate Anti-Fraud Service annual report for 2024-25. Due to containing exempt information, the cybersecurity update was deferred to a later private session.

External Audit Plans 2024/25

The committee approved noting the external audit plans for the London Borough of Hammersmith and Fulham and the London Borough of Hammersmith and Fulham Pension Fund audit, as prepared by Grant Thornton, the council's external auditor. Paul Cuttle, the new external auditor from Grant Thornton, presented the plans, highlighting that the accounting for leases would be a new area of focus for the 2024-25 audit. He also noted that the council is on track with signing off accounts, comparing favourably to other councils.

Councillor Callum Nimmo asked about the statutory backstop introduced by the government for councils that have not had their accounts signed off for many years. Cuttle confirmed that Hammersmith and Fulham had signed off the last four years of accounts in the last 18 months, and that the council was doing well compared to other councils.

Sidvinder Kalsi, the Executive Director of Finance & Corporate Services, assured the committee of the importance of the external audit in providing independent assurance to residents and other parties that the council's finances are well-managed.

Head of Internal Audit Annual Report 2024/25

The committee agreed to note the head of internal audit's opinion on the accuracy and effectiveness of the council's framework of governance, risk management and control environment. Moira Mackey, the Head of Internal Audit, presented the annual report, highlighting that 91% of the work done was a positive assurance. She noted that a draft report on client affairs actually sits within the finance area of resources, corporate services.

David Hughes, the Director of Audit, Fraud, Risk and Insurance, added that there were no nil assurance audits and that there were good levels of compliance with agreed actions from prior audits.

Councillor Lisa Homan asked about the frequency and effectiveness of meetings between officer groups looking at various issues. Hughes explained that internal audit is actively engaged in these boards, which look at assurance for key areas of risk or performance. Homan also inquired about updates on building safety, particularly in relation to the Grenfell inquiry¹ recommendations. Hughes responded that the building safety group is addressing key measures from the inquiry report, including building safety regulator requirements for building safety cases.

Homan also raised concerns about the Climate Action Plan and whether the council was confident in meeting its targets, given the difficulties in measurement and cross-departmental nature of the plan. Mackey acknowledged that it was a tricky audit to follow up and that it may be a little bit optimistic.

Sharon Lea, the Chief Executive, emphasised the importance of following up on recommended improvements and ensuring that they translate into specific actionables within departments. She added that she personally follows up on items and does not like to see actions left too long in the audit process.

Corporate Anti-Fraud Service Annual Report 2024/25

The committee agreed to note the Corporate Anti-Fraud Service Annual Report for 2024/25. Andy Hyatt presented the report, highlighting an upturn in the amount of money recovered through proceeds of crime and the work of recovering misused tenancies. He also mentioned that the service is reviewing how it values losses to the organisation and what has been prevented by intervening.

Hughes echoed the support from the Chief Executive in tackling fraud, particularly in tenancy fraud and temporary accommodation. He noted that the council is looking at how to use proceeds of crime money to tackle tenancy fraud and get homes back into use for those in need of social housing.

Councillor Homan asked whether housing association partners ever seek the council's help with tenancy fraud. Hyatt responded that the council has a memorandum of understanding with a couple of housing associations, but they have also started getting their own investigators on board. He added that the council has offered to take on cases on their behalf, as long as they get the nomination right for the recovered unit.

Councillor David Morton raised the issue of vehicles being dumped or left uninsured and asked if there was any mechanism to coordinate with the DVLA². Hyatt said that they have not been liaising with the DVLA for that type of issue, but he would take it away and see if there are lines of inquiry and communication that can be opened. Morton also asked about squatting in commercial properties and what could be done about it. Hyatt said that it was the first time he had been alerted to it and that he would have a conversation with the community safety lead and the local MET³ to see how they are tackling it.

Councillor Nimmo asked whether the quantity of properties recovered by the council has increased compared to last year and how the council is first alerted to these cases. Hyatt responded that the numbers were pretty much on an even keel and that referrals come from a mixed bag of sources, including gas engineering checks, council staff, and members of the public.

Cyber Security Update

Due to the report containing exempt information, discussion of the cyber security update was deferred. The committee agreed to pass the proposed resolution to exclude members of the public and press during the consideration of the item.