The Governance, Audit, Risk Management and Standards Committee (GARMS) met on Monday 15 April 2024 to review the council's counter-fraud framework, risk reports, annual governance statement, and audit plans. Key decisions included the approval of updated counter-fraud and whistleblowing policies, noting the status of ongoing audits, and approving the internal audit and corporate anti-fraud team's annual plan for 2024-25.

Counter Fraud Framework and Whistleblowing Policy Review 2024

The committee reviewed and approved the updated Counter Fraud Framework (CFF) and Whistleblowing Policy documents for 2024. Minor administrative amendments were made, and a specific amendment was agreed for paragraph 1.4 of the CFF policy statement to clarify that all cases are closed following assessment by a senior officer. Future administrative changes to these policies will be delegated 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 risk report, highlighting that there were 210 open risks across directorate risk registers in Q3. Members noted that the Business Continuity risk had increased due to identified shortcomings in processes, with an action plan now in place. Concerns were raised about the economic viability of the Open Door Homes (ODH) acquisitions programme in light of rising interest rates, and officers committed to providing an update on the impact of interest rates above 5% on the programme. The committee also sought clarification on whether the revised Controlled Parking Zones (CPZ) programme had been approved by Cabinet, with an action to confirm this. Strategic Risk STR002, relating to market capacity in Adult Social Care, was discussed, with members agreeing that joint working with external providers and other local authorities would help alleviate pressures.

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. The committee welcomed the LGA Peer Challenge feedback and the subsequent action plan, particularly the proposed creation of a Cabinet Member for Finance and Resources, which was seen as a positive development for scrutiny. Discussions also focused on the wording used to describe the relationship between Cabinet members and officers, with an emphasis on the importance of appropriate challenge and co-production. The committee approved the AGS for inclusion in the Statement of Accounts and noted the Code of Corporate Governance, which will be presented to Full Council for adoption into the Constitution.

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, and Ciaran McLaughlin from BDO UK LLP provided an update on the external audit. The committee noted the lack of progress towards the sign-off of the Council's 2020/21 Statement of Accounts, with outstanding issues including Brent Cross asset classification and infrastructure notes. BDO indicated that due to resourcing issues and the complexity of the work, disclaimer opinions were likely for the 2021/22 and 2022/23 audits. Members expressed disappointment at the delays and the lack of progress, particularly concerning the allocation of resources for the outstanding years. The committee also noted the findings of the Teachers' Pensions return certification for 2020/21, which identified three exceptions that did not require amendments to the return.

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

Caroline Glitre, Head of Internal Audit, and Declan Khan, Assistant Director Counter Fraud, Community Safety & Protection, presented the annual plan for Internal Audit and the Corporate Anti-Fraud Team (CAFT). The committee approved the plan, which includes 800 audit days, a reduction from the previous year due to savings and a decrease in services provided by Capita. Members raised concerns about the Oracle HR system implementation, emphasizing the need for adequate resourcing to monitor its progress. An update report on the Oracle programme was requested for the next meeting. Discussions also covered the CAFT's Key Performance Indicators (KPIs), with a request for them to be reviewed to ensure the 'Prevent' aspect is measurable. The potential impact of Artificial Intelligence on fraudulent activities was also noted as an emerging risk. The committee requested annual information on fraud awareness training provided and its facilitators.

Member Development Programme 2022-2026

Andrew Charlwood, Head of Governance, reported on the Member Development Programme, highlighting Barnet's achievement of LGA Charter Plus Accreditation in January 2024. The committee commended the officers for this achievement and noted the quality of in-house training. Discussions addressed the importance of mandatory training attendance, particularly for Adult and Children's Safeguarding, and the need for improved attendance rates. The committee agreed to the forward plan of development sessions and noted the reduction in the Member Development Budget.

Committee Forward Work Programme

The committee noted their Forward Work Programme for the upcoming meetings.

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

Mohammed Ahmed, Chief Accountant, and representatives from Grant Thornton UK LLP presented the audit risk assessment and external audit plan. Grant Thornton confirmed they had adequate resources for audit planning and value for money work, and that they would be auditing the 2023/24 transactions and closing balances. The committee noted the potential challenges regarding opening balances due to guidance from the Department for Levelling Up, Housing and Communities (DLUHC). Grant Thornton assured the committee that their audit plan was robust and resourced to address issues. The committee noted that the statement of accounts would be based on the old accounting system and would not be impacted by the Oracle implementation. A correction was made to the date of a future committee meeting in the Grant Thornton report. The committee considered the management responses to the audit risk assessment and noted the external audit plan and progress report.

Any item(s) that the Chair decides are urgent

The Chair noted that the Oracle IT system went live in March 2024 and that a report on this would be presented at the next meeting.