The Lewisham Council Audit and Risk Committee convened to elect a chair and vice-chair, review audit plans and risk management strategies, and discuss external audit updates. Councillor Ava Kessner was elected as chair, and Councillor Luke Sauber as vice-chair. The committee also approved the internal audit plan for 2025-26 and noted the updated corporate risk register.

Here's a more detailed look at the key discussion points:

• Election of Chair and Vice Chair
• Internal Audit Annual Report and Opinion 2024/25
• Internal Audit Plan 2025/26
• Risk Update for Audit and Risk Committee
• External Audit Update
• KPMG - External Audit Plan - Main Audit
• KPMG - External Audit Plan - Pension Fund Audit
• KPMG - Value for Money (VfM) Risk Assessment
• Exclusion of Press and Public

Election of Chair and Vice Chair

Councillor Ava Kessner was elected chair of the committee, and Councillor Luke Sauber was elected vice chair.

Internal Audit Annual Report and Opinion 2024/25

The committee reviewed the Head of Assurance's annual opinion on the adequacy and effectiveness of the council's governance, risk management, and internal control framework. The Head of Assurance's opinion was generally positive, rating the framework as 'Satisfactory', but noted scope limitations due to a reduced number of completed corporate audits and a lack of coverage in key governance areas such as procurement, information governance, and change management.

Richard Benjamin, Head of Assurance, stated that the internal audit service had worked independently and had full access to officers and records. He also noted that a full gap analysis would be conducted against the new Global Internal Audit Standards in 2025/26, and an improvement plan would be presented to the committee.

The committee noted the report and the Head of Assurance's statement of independent completion in conformance with Public Sector Internal Audit Standards¹.

Internal Audit Plan 2025/26

The committee approved the proposed internal audit plan for 2025/26. The plan is risk-based and was developed based on an assessment of the council's strategic objectives, significant risks, and available audit areas. The plan is flexible and will be amended as risks change.

Risk Update for Audit and Risk Committee

The committee reviewed the updated corporate risk register. The report highlighted changes to the register since the last meeting, including the addition of a new risk relating to the PSTN switch-off².

Councillor James Rathbone queried the change in score for LBL 010, Unable to Set a Balanced Budget , arguing that the reduction in risk seemed unjustified given the financial uncertainty the council is facing. He noted the use of reserves to set a balanced budget and the inability to finalise the MTFS³ in July.

An unnamed risk owner acknowledged the points, explaining that the risk register was published before the information feeding into other reports was available. They anticipated the score would increase again in September.

Councillor Stephen Penfold asked about the increased cost of lines that continue to function after the December 2025 PSTN switch-off. Councillor Penfold and Rebecca Short, Head of Resilience, explained that they were working towards the original deadline, and the costs beyond that date were still speculative.

External Audit Update

The committee received an update on the external audit of the 2024/25 Statement of Accounts. The council published a draft of the accounts on 17 June, ahead of the statutory deadline, and the public inspection is underway. The statutory deadline for the audit is 27 February 2026, but officers are aiming to conclude it in November 2025.

A number of recommendations were made as part of the completed 23-24 audits.

A member of the committee asked about the statutory override related to the schools grant, and another asked about rebates and assistance with rent, suggesting that the information provided was inaccurate.

Another member of the committee queried why a loan of £180,000 to Lewisham Granger Holdings LLP did not appear on page 92. Terence Madgett, Chief Accountant, explained that it was because it was a loan, and the money may not have transferred yet.

KPMG - External Audit Plan - Main Audit

KPMG presented their external audit plan for the main audit.

KPMG - External Audit Plan - Pension Fund Audit

KPMG presented their external audit plan for the pension fund audit.

KPMG - Value for Money (VfM) Risk Assessment

KPMG presented their Value for Money (VfM) risk assessment. A member of the committee asked a broad policy question about the impact of moving local government pension funds into regional pools on the audit approach to council pension funds.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the meeting for item 12, the IT Risks Deep Dive Report, due to the likely disclosure of exempt information.