The Audit and Risk Committee of Barking and Dagenham Council were scheduled to meet on 25 June 2025 to discuss the council's annual governance, counter fraud activity, and external audit reports. Updates on the council's statement of accounts and pension fund were also scheduled to be reviewed. The committee was also expected to discuss its work programme for the upcoming year.

Audit of Prior Year Accounts

The committee was scheduled to receive updates on the disclaimed audits of the Council Statement of Accounts (CSOA) for the years 2019/20, 2020/21, 2021/22 and 2022/23 from BDO, the council's former external auditors.

BDO stated that their work was substantially complete, and they had communicated material inconsistencies between the primary financial statements and the notes to the accounts to management, who were in the process of correcting them.

However, BDO were still considering a matter relevant to the council's compliance with laws and regulations, relating to transactions between the council and the London Borough of Barking and Dagenham Pension Fund in each of the years 2019/20 to 2022/23. These transactions included:

• prepayments made by the council to the pension fund
• loans made by the council to the pension fund

BDO had sought their own independent legal advice on these transactions. They shared their legal advice with management on 9 June 2025 and requested management's comments on that advice. They were awaiting legal advice on the lawfulness of the loans made by the council to the pension fund.

BDO were also required to consider the council's arrangements for securing value for money in its use of resources for each of the years 2019/20 – 2022/23. To complete this work they needed to:

• Consider the legal position in relation to the transactions between the council and the pension fund
• Complete internal review processes, including Key Audit Partner review of the work undertaken
• Complete drafting of Auditor's Annual Report

BDO included an indicative timeline for completion of their audit, with the aim to complete reporting to the Audit and Risk Committee and issue audit reports in September 2025.

Grant Thornton Audit Progress Report

The committee was scheduled to receive a progress report from Grant Thornton (GT) on the 2023/24 CSOA and preparation of the 2024/25 CSOA, as well as an external audit update.

GT's report provided an overview of audit progress, including any areas requiring further discussion or needing the committee's attention. The issuance and signing of the audit opinion for the 2023/24 financial statements was subject to the outcome and signing of the previous financial years audit (2019/20 to 2022/23).

GT's audit planning visit occurred during the months of February 2025 to April 2025, and they presented their indicative audit plan at the April 2025 committee meeting. The plan remained indicative at this stage as the previous years financial statement audits remained open.

Preliminary audit work on sample selection was scheduled to take place in July 2025, with the fieldwork stage of the audit scheduled from October 2025 to December 2025. GT advised management to prepare a high-quality set of accounts, accompanied by comprehensive and well-organised working papers ready at the start of the audit.

The planned completion date for the 2024/25 financial statement audit was 27 February 2026, in line with the Accounts and Audit (Amendment) Regulations 2024¹.

GT's report also included a series of sector updates in respect of emerging issues which the Committee may wish to consider, including:

• Local Audit Reform and the establishment of a new Local Audit Office (LAO) with effect from 1 April 2026.
• The Local Authority Backstop and regaining assurance.
• New members and the 30th anniversary of the Nolan Principles.
• Challenges faced by local authorities in implementing IFRS 16².
• Reorganisation update.
• Making decisions.
• Housing targets and housing enquiry.
• Crunch point for London council housing finances.
• The remediation of dangerous cladding.
• The changing face of adult social care.
• Free nursery places.
• Complaints data from the Local Government and Social Care Ombudsman.
• Climate change - new role for the Energy Ombudsman.
• Climate change – new report on generating hope.

Pension Fund Accounts

The committee was scheduled to receive an update on the 2024/25 Pension Fund Accounts. The audit work for the 2023/24 Pension Fund Accounts was complete, and GT expected the opinion to be a disclaimer. The issuance and signing of the audit opinion for the 2023/24 financial statements is subject to the outcome and signing of the previous financial years audit (2019/20 to 2022/23).

GT's 2024/25 Pension Fund Audit findings report was scheduled to be reported to the Audit and Risk Committee in February 2026. GT's opinion was expected to be a disclaimer, due to there being no assurances over opening balances.

Counter Fraud Annual Report

The committee was scheduled to discuss the Counter Fraud Annual Report 2024/25. The report summarised all aspects of counter fraud work undertaken during the year.

The report included updates on:

• Corporate fraud activity, including whistleblowing
• Housing investigations
• Regulation of Investigatory Powers Act³ (RIPA)

Work Programme

The committee was scheduled to discuss its work programme for 2025/26, including:

• Updates from BDO and Grant Thornton on the Council Statement of Accounts and Pension Fund Draft Accounts.
• The 2023/24 Annual Governance Statement.
• The Information Governance Annual Report.
• The Internal Audit Annual Report 2024/25.
• Review of Key Counter Fraud Policies & Strategy 2025.
• External Audit updates including Value for Money (VFM) assessments.
• Corporate Risk Register updates.
• Internal Audit reviews.
• Counter Fraud reviews.
• Internal Audit Charter, Strategy & Plan 2026/27.