The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council met on 15 April 2024 to review the council's counter-fraud framework, risk management, annual governance statement, audit progress, and member development programme. Key decisions included the approval of updated counter-fraud and whistleblowing policies, noting the council's risk register, and approving the annual governance statement and code of corporate governance. The committee also received updates on the significant delays in the 2020/21 external audit and plans for subsequent years, alongside the annual plan for Internal Audit and the Corporate Anti-Fraud Team (CAFT).

Counter Fraud Framework and Whistleblowing Policy Review 2024

The committee reviewed the updated Counter Fraud Framework (CFF) Policy Statement and Whistleblowing Policy documents for 2024. Declan Khan, Assistant Director Counter Fraud Community Safety & Protection, presented the report, noting that only minor administrative amendments had been made. Members discussed the wording of the Statement of Intent, specifically regarding the application of thresholds for investigations. A motion was agreed to amend Part 1.4 of Appendix 1 to clarify that All cases will be closed on assessment by a senior officer. The committee approved the updated policies and delegated future administrative changes to the Executive Director of Assurance and Public Protection.

Quarterly Risks Report (Q3 2023/24)

Alaine Clarke, Head of Programmes, Performance and Risk, presented the quarterly risks report, highlighting strategic and high-level service risks. Members noted that Business Continuity had been identified as a strategic risk that had increased. An action plan is in place, with regular monitoring meetings scheduled. Concerns were raised about the economic viability of the Open Door Homes (ODH) acquisitions programme, and officers were asked to report back on the impact of potential interest rate rises. The committee also requested updates on the approval status of the revised Controlled Parking Zones (CPZ) programme by Cabinet. The report also detailed pressures on the adult social care market due to staffing shortages, with joint working with external providers and other local authorities identified as a mitigation strategy. The committee noted the status of the council's risks and agreed that officers would provide further updates on the actions discussed.

Annual Governance Statement 2023/24 and Code of Corporate Governance 2024/25

Andrew Charlwood, Head of Governance, presented the Annual Governance Statement (AGS) and the Code of Corporate Governance. Members welcomed the AGS and discussed the Local Government Association (LGA) Peer Challenge and its associated action plan. They noted the evolving nature of the council's new governance system, particularly the potential creation of a Cabinet Member for Finance and Resources, which would introduce an additional layer of scrutiny. The committee approved the AGS for inclusion in the Statement of Accounts and delegated authority for final amendments to the Executive Director of Assurance and Public Protection in consultation with the Chair. They also noted the Code of Corporate Governance 2024/25, which will be presented to Full Council for adoption.

Status of the 2020/21 Audit and Plans for 2021/22 and 2022/23 Audit Delivery, and Teachers' Pensions Return Certification 2020/21

Mohammed Ahmed, Chief Accountant, provided an update on the external audit of the 2020/21 Statement of Accounts. Outstanding items include the Brent Cross asset classification and an infrastructure note. BDO, the external auditors, indicated that the 2020/21 audit is expected to be finalised in August 2024. However, due to national issues and resourcing challenges within BDO, it is likely that disclaimed audit opinions will be issued for the 2021/22 and 2022/23 audits. The committee expressed disappointment at the lack of progress and the potential implications for future audits. BDO confirmed they would continue working on the audits and liaising with central government regarding backstop dates. The committee requested that the 2020/21 Statement of Accounts be signed off by the next meeting and noted the content of BDO's report, highlighting the lack of progress. They also noted the Teachers' Pensions return certification report and findings.

Internal Audit & Council's Corporate Anti-Fraud Team (CAFT) Annual Plan 2024-25

Caroline Glitre, Head of Internal Audit, and Declan Khan, Assistant Director Counter Fraud Community Safety & Protection, presented the proposed annual plan for Internal Audit and CAFT. The plan was developed in consultation with Directorate Senior Management Teams and reviewed against the Council's risk registers. The number of audit days has been reduced from 1,000 to 800, which was noted as still being above the average for some London Boroughs. Members raised questions about the implementation of the ORACLE HR system, the adequacy of resources for monitoring it, and the potential financial implications. They also discussed CAFT's Key Performance Indicators (KPIs), requesting a review to ensure the 'Prevent' objective is measurable. The potential threat of Artificial Intelligence in fraudulent activities was also noted. The committee approved the Internal Audit and CAFT Annual Plan for 2024/25 and requested updates on the ORACLE programme and CAFT's KPIs.

Member Development Programme 2022-2026

Andrew Charlwood, Head of Governance, presented an update on the Member Development Programme, highlighting Barnet's achievement of LGA Charter Plus Accreditation in January 2024, making it one of only three London Boroughs to do so. Members commended the officers for this achievement and discussed the quality of in-house training compared to external facilitators. They also discussed the importance of attendance at mandatory training sessions. The committee agreed the forward plan of Member Development sessions and the LGA leadership development proposal. They noted the Charter Plus accreditation and the feedback from LGA Assessors, which will inform future development work. The reduction in the Member Development Budget was also noted.

Committee Forward Work Programme

The committee noted their Forward Work Programme.

Informing the Audit Risk Assessment and External Audit Plan 2023/24

Mohammed Ahmed, Chief Accountant, presented management's responses to Grant Thornton's audit risk assessment and external audit plan for 2023/24. Paul Dossett and Ajay Jha from Grant Thornton provided an overview of the audit plan and progress. They highlighted identified risks, including expenditure, due to the lack of audited accounts for the previous two years. The committee was advised that 'value for money work' would be completed and an interim annual risk report would be presented at the next meeting. Grant Thornton confirmed they had adequate resources for audit planning and value for money work. The committee noted the progress made by Grant Thornton and the potential challenges related to the ORACLE implementation and the audit of opening balances. A minor correction to the date of a future committee meeting was noted. The committee considered the management responses, noted the audit plan and progress report, and provided comments.

Any item(s) that the Chair decides are urgent

The Chair advised that the ORACLE IT system went live in March 2024 and a report on the database would be presented at the next meeting.