The Haringey Council Audit Committee met on 22 July 2025 to discuss the external audit plan, the draft statement of accounts, the annual governance statement, the annual head of audit report, the updated corporate risk register, the anti-fraud and corruption progress, and the treasury management report.

External Audit Plan

The committee was scheduled to receive an update on the plan to audit the Statement of Accounts for 2024/25. The plan includes the Collection Fund, Housing Revenue Account and Haringey Pensions Fund. The report pack included a draft audit plan from KPMG, which set out their approach, key issues, timescales, staffing and fees. The report noted that auditors are under increasing regulatory pressure to complete additional work and provide additional commentary on financial sustainability, governance and improving economy, efficiency, and effectiveness. The report also noted that a disclaimer audit opinion was issued for 2023/24 and that elements of the opening balances and 2023/24 comparatives are still impacted by previous disclaimers and as such the audit opinion is likely to be modified in relation to this matter. The report also noted some significant challenges in performing the 2023/24 audit including:

• Delays in management providing some of the required information such as sample requests and listings
• Quality & availability of transaction listings
• The valuer was provided with incomplete information to undertake their valuation report
• Quality of audit evidence

The audit plan also identified significant risks including:

• Valuation of land and buildings
• Management override of controls
• Valuation of post retirement benefit obligations
• Fraud risk from expenditure recognition

Draft Statement of Accounts

The committee was scheduled to discuss the council's draft statement of accounts for 2024/25. The report pack noted that the draft statement of accounts highlights the council's performances and achievements during the year. General fund balances (including schools) were £52.2m as at the 31 March 2025 (£67.4m on 31 March 2024). The Housing Revenue Account (HRA) working balance was £20.2m as at the 31 March 2025 (£21.1m in 2023/24). The report pack also noted that the council's balance sheet decreased by £318m in 2024/25 due to an increase in long and short-term liabilities due to higher council borrowing, and a £300m adverse movement in valuation of council's pension position. The narratives to the statement of accounts contains the financial performance highlights and the financial outlook of Haringey. The council implemented the IFRS 16¹ in 2024/25. The Public Inspection period will commence from 10am, Tuesday 1st July 2025 and end at 4pm on Friday 11th August 2025.

The statement from Taryn Eves, Corporate Director of Finance & Resources (Section 151 Officer) noted that the outturn position is a £38m overspend on services, primarily driven by demand and price of services being significantly higher than was envisaged when the budget was set in March 2024, particularly for social care and temporary accommodation. The statement also noted that the Council is determined to be in control of its own destiny and in response to its own financial position, emergency response arrangements have been in place since early 2025 to deliver on a Financial Response and Recovery Plan which has the overall objective of reducing reliance on EFS in the future and improve the Council's financial resilience and sustainability.

Annual Governance Statement

The committee was scheduled to be informed of the statutory requirements to produce an Annual Governance Statement for 2024/25 (AGS) and to review and approve a draft statement relating to the 2024/25 financial year. The report pack included a draft AGS, which commented on the council's governance framework as a whole. The Corporate Leadership Team have identified six areas where the council's governance arrangements need to be strengthened:

• Delivery of savings identified in the Medium-Term Financial Strategy
• Improvements across strategic and operational Asset Management
• Delivery of the Housing Improvement Programme
• Strengthening information governance arrangements
• Having a high-performing workforce
• Procurement and contract management arrangements

Annual Head of Audit Report

The committee was scheduled to be informed of the overall adequacy and effectiveness of the system of internal control and risk management operating throughout 2024/25 and to be presented with a summary of the audit work undertaken to formulate the opinion, including reliance placed on work by other bodies. The report pack included the Annual Internal Audit Report 2024/25, which stated that internal audit work was carried out using a risk-based approach and included reviews of those systems, projects, and establishments to discharge the Chief Financial Officer's responsibilities. The report stated that the Head of Audit and Risk Management was satisfied that sufficient assurance work has been carried out to allow them to form a reasonable conclusion on the adequacy and effectiveness of the council's internal control environment. The report also noted that the contract for the delivery of audit was with a company called Mazars, and that Mazars had carried out their own independent external assessment in 2024 to confirm the robustness of their methodology and compliance with standards and planning to carry out an assessment this year and the outcome was that they were Fully Compliant.

Updated Corporate Risk Register

The Audit Committee was scheduled to note the council's Corporate Risk Register and be satisfied that appropriate mitigating actions are being completed in a timely manner. The report pack included the Corporate Risk Register as at 31 May 2025, and guidance on the register. The most significant Red risks and changes to the corporate risk register were listed as:

• Maintaining and strengthen financial viability/balance across MTFP including failure to deliver identified savings
• Non-delivery of transformational change due to lack of corporate change functions
• Failure to prepare for the impact associated with climate change, including air quality and pollution, extreme weather (e.g. flooding, heat)
• Unable to attract and retain scarce skills or those in high demand
• Failure to meet Housing / Achieve full regulatory compliance for Council Housing Stock standards

Anti-Fraud and Corruption Progress Report

The committee was scheduled to receive a report detailing the work undertaken by the in-house resources in the Audit and Risk team and communicating a fourth quarterly update on completion of the work plan for 2024/25. The report pack noted that the team undertakes a wide range of anti-fraud activity but has two key performance indicators to monitor its work relating to tenancy fraud and the right to buy fraud. The report also noted that the team had been unable to complete the work regarding the Use of Death List information, and that the team deal day to day with many ad hoc requests from management for advice and guidance.

Treasury Management Report

The committee was scheduled to receive an update on the council's treasury management activities and performance quarters ending 31st March 2024, in accordance with the CIPFA Code². The report pack noted that the Council's primary objective when borrowing is to strike an appropriately low-risk balance between securing low interest costs and achieving cost certainty over the period for which funds are required. The report pack also noted that the Council has a significant capital programme which will largely be financed by new borrowing in the upcoming years, and that the Council plans to maintain a balanced portfolio of short and long-term borrowing. The report pack also noted that the Council did breach the voluntary minimum level of cash held by the Council, but that the breach was rectified within a few days.