The Merton and Sutton Joint Cemetery Board were scheduled to meet on 24 June 2025 to discuss the Merton and Sutton Joint Cemetery (MSJC) Abstract of Accounts, and the Annual Governance Statement, as well as to receive client and contractor reports. The board was also scheduled to appoint a chair and vice-chair.

MSJC Abstract of Accounts

The board was scheduled to review and approve the MSJC Abstract of Accounts for 2024-25. The abstract of accounts complies with the Chartered Institute of Public Finance and Accountancy (CIPFA) Accounting Code of Practice, which is compliant with International Financial Reporting Standards (IFRS).¹ The report also proposes a revised 2025-26 budget for approval.

The report notes that the cemetery made a surplus of £254,111 this year. Variances from the budget included:

• Employee costs were £3 over budget
• Running expenses were £20,037 over budget, with overspending on repairs and maintenance, and grounds maintenance.
• Special projects were £353,509 under budget, mainly due to underspending on bearer beams, front railings, and the toilet block.
• Income was £263,254 under budget.

The report also included a breakdown of debtors and pre-payments as of 31 March 2024 and 31 March 2025.

The report also notes that the overall level of the Common Fund Balance is £1,553,731.

The report also included a statement of assurance by Merton's Head of Internal Audit:

The London Borough of Merton Internal Audit service, acting independently and on the basis of an assessment of risk, carried out a selective assessment of compliance with relevant procedures and controls expected to be in operation during the financial year ended 31 March 2025. The Council's financial systems have been examined, and the Head of Internal Audit confirms that the Merton and Sutton Joint Cemetery statements of account for 2024/25 are in accordance with its financial records.

The report also included the revised estimates for the Cemetery for 2025-26 for approval by the board.

The appendices to the report included:

• Cover Information to the Abstract of Accounts
• Movement in Reserves
• Balance Sheet as at 31 March 2023
• Income and Expenditure Account 2022-23
• Cash Flow Statement
• Asset Register
• Precept History
• Loan Repayment Schedule
• Revised 2023/24 Estimates
• Risk Strategy and Register June 2025

Risk Management Strategy

The report pack included the Merton and Sutton Joint Cemetery Board Risk Management Strategy, revised in February 2024.

The policy statement within the strategy says:

MSJC's policy is to manage our risks by identifying, assessing and controlling them, with the aim of eliminating or reducing them to acceptable levels whilst being mindful that some risks will always exist and will never be eliminated.

The strategy outlines the process for identifying and evaluating risks, known as risk assessment. It also incorporates a process for regularly reviewing and updating identified risks.

The strategy defines risk as:

the threat that an event or action may adversely affect an organisation's ability to achieve its objectives and successfully execute its strategies. A risk can be a threat, obstacle, barrier, concern, problem or event that may prevent us fulfilling our objectives.

The strategy also outlines the benefits of risk management, including:

• Stronger ability to achieve our ambitions, aims and objectives as key risks are managed.
• Better decision making as we are more aware of risk.
• Ability to take advantage of opportunities because we understand the risks attached to them.
• Better governance and the ability to demonstrate it to our stakeholders.
• Reduction in failure, loss, damage and injury caused by risk
• Improvement in our ability to adapt to change
• Improvement in our corporate governance
• Compliance with statutory and regulatory requirements

The strategy also discusses organisational awareness of risk and risk management, risk appetite, how risk management integrates with other policies, risk management in projects and partnerships, and risk management and financial planning.

The strategy also includes a section on scoring risk, defining the likelihood and impact of risk, and a risk matrix.

The strategy also outlines the roles, responsibilities and governance of risk management, including the board, officers, client side/contractor, risk owners, and individual staff.

The strategy also includes a risk register with reviews. The risk register includes the following risks:

• MSJCB0001 - Pandemic leading to a reduction in income
• MSJCB0002 - Poor operational service delivery
• MSJCB0003 - Failure of contracting-out arrangements
• MSJCB0004 - MSJC VAT Claim Entitlement
• MSJCB0005 - MSJC Excess Income

Annual Governance Statement

The board was scheduled to note and agree the Annual Governance Statement (AGS) for 2024/25. The Merton and Sutton Joint Cemetery Board (MSJCB) is required to prepare an Annual Governance Statement (AGS) for the year 2024/25 to comply with the Accounts and Audit Regulations 2015².

The statement provides assurance to all stakeholders that MSJC business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively.

The MSJCB has approved and adopted a code of corporate governance, which is consistent with the seven principles and 21 sub-principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government (2016).

The seven principles of the CIPFA/SOLACE Framework "Delivering Good Governance in Local Government (2016) are:

• Principle 1: Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law.
• Principle 2: Developing the entity's capacity, including the capability of its leadership and the individuals within it.
• Principle 3: Defining outcomes in terms of sustainable economic, social, and environmental benefits.
• Principle 4: Managing risks and performance through robust internal control and strong public financial management.
• Principle 5: Implementing good practices in transparency, reporting, and audit to deliver effective accountability.
• Principle 6: Ensuring openness and comprehensive stakeholder engagement
• Principle 7: Determining the interventions necessary to optimise the achievement of the intended outcomes.

The AGS explains how MSJCB has complied with the code and also meets the requirements of the 6(1b) Accounts and Audit Regulations 2015. It is worthy of note at this point that MSJCB utilises the systems and procedures of the London Borough of Merton and as such utilises the work undertaken by this organisation to demonstrate good governance.

The report also included an improvement plan for 2024-25, which included:

• Review of Roles and Responsibilities
• Re-drafting MSJC Constitution

The report also included an improvement plan for 2025-26, which included:

• Review of Roles and Responsibilities
• Re-drafting MSJC Constitution