The Audit and Risk Committee meeting scheduled for 25 June 2025 was set to review significant financial audit progress reports, including updates on disclaimed audits and ongoing work by external auditors Grant Thornton. The committee was also scheduled to consider the Counter Fraud Annual Report for 2024/25 and the Work Programme for the upcoming year.

BDO Update on Disclaimed Audits

The committee was scheduled to receive an update from BDO regarding the disclaimed audits of the Council's Statement of Accounts for the financial years 2019/20, 2020/21, 2021/22, and 2022/23. This update was expected to cover the progress made in addressing the issues that led to the disclaimer of audit opinions for these years. The report indicated that the work BDO needed to undertake was substantially complete, with management in the process of correcting material inconsistencies. A key area of consideration was transactions between the Council and the London Borough of Barking and Dagenham Pension Fund, including prepayments and loans, for which BDO had sought independent legal advice. The report also noted that BDO's work on the value for money arrangements for these years was not yet complete.

Grant Thornton Audit Progress Report

Grant Thornton was scheduled to provide a progress report on their audit of the Council's Statement of Accounts for 2023/24 and 2024/25, alongside a sector update. The issuance of the audit opinion for the 2023/24 financial statements was contingent on the outcome of the previous years' audits. For the 2024/25 audit, the planning stage was underway, with fieldwork anticipated to begin in October 2025. The planned completion date for the 2024/25 audit was 27 February 2026, in line with the Accounts and Audit (Amendment) Regulations 2024. The report highlighted ongoing work in understanding accounting estimates, key business processes, IT systems, and group consolidation processes. Grant Thornton's value for money audit for 2024/25 was also in progress, with potential risks identified including the development of a savings plan, governance arrangements for Council companies, the financial sustainability of the Housing Revenue Account (HRA), and the effectiveness of the Asset Management Strategy.

Grant Thornton Progress Report on Pension Fund Accounts

The committee was due to receive an update on Grant Thornton's progress with the audit of the Pension Fund Accounts for 2023/24 and 2024/25. The audit work for the 2023/24 Pension Fund Accounts was reported as complete, with an expected disclaimer of opinion, pending the resolution of the previous years' audits. For the 2024/25 audit, Grant Thornton's opinion was also expected to be a disclaimer due to a lack of assurance over opening balances. The auditor's report on the Pension Fund Accounts could only be issued concurrently with the auditor's report on the main Council Accounts, which was anticipated by February 2026.

Counter Fraud Annual Report 2024/25

The Counter Fraud and Risk Manager, Kevin Key, was scheduled to present the annual report detailing counter fraud work undertaken during 2024/25. This report was to consolidate all aspects of the team's activities, including corporate fraud and housing investigations. The report outlined the number of referrals received, cases accepted for investigation, and outcomes such as disciplinary actions, prosecutions, and the recovery of funds. It also detailed housing investigations, including property recoveries and savings achieved through various checks. The report also touched upon the Regulation of Investigatory Powers Act (RIPA) and its oversight.

Work Programme 2025/26

The committee was scheduled to review and discuss its Work Programme for the upcoming year, 2025/26. This programme outlines the key agenda items and reports anticipated for future Audit and Risk Committee meetings, indicating the committee's planned focus areas for the year ahead. The programme included planned reviews of audit reports, governance statements, and counter fraud strategies.