The Audit Committee of Ealing Council convened to discuss the council's treasury performance, financial accounts, governance, risk management, and audit strategies. The committee noted the treasury management activities, the draft statement of accounts, and the strategic risk register. They also approved the Internal Audit Charter and Strategy, and discussed the audit approach for the upcoming financial year.

Internal Audit and Anti-Fraud Measures

The committee reviewed the progress report on the work of Internal Audit and Anti-Fraud, noting the performance of the Internal Audit and Investigation team. The report highlighted that reactive investigations during the year had resulted in proven cases with a value totalling £1.099m, including notional savings, actual losses and income.

The committee was informed of several proactive anti-fraud measures, including the National Fraud Initiative (NFI) and a fraud hub programme. The NFI had led to the cancellation of 130 blue badges¹, two waiting list applications, and five council tax reduction claims, among other outcomes. The committee also discussed a pilot programme to identify employees and agency staff working for multiple organisations without proper authorisation.

The Assistant Director of Audit and Investigation, Mike Pinder, confirmed that the internal audit team had issued a 'reasonable' annual audit opinion for the year, though this was at the lower end of the scale due to the number of limited assurance reports issued. He also presented the latest fraud report and expressed satisfaction with the team's performance, particularly regarding housing fraud.

The committee agreed to the:

• Internal Audit Charter
• Internal Audit Strategy
• Fraud and Bribery Response plan
• Proactive Fraud plan

The committee also confirmed the adequacy of resources with the Head of Audit.

Financial Performance and Treasury Management

The committee received a treasury update for the fourth quarter of the 2024/25 financial year from Bridget Uku, Finance Manager for Pensions and Treasury. The report outlined the council's borrowing and investment activities, confirming that all treasury management activities were conducted in accordance with the Treasury Management Code of Practice. Investment levels had declined from £511 million to £417 million over the year, reflecting increased capital expenditure. The average return on investments was 4.8%, although this had begun to decline.

The committee noted the council's investment balance of £417.056m as at 31 March 2025, of which £344.000m was invested with the Debt Management Office (DMO). They also noted the Prudential Indicators outturn for 2024/25, which were maintained within the limits set by Full Council in March 2024.

Emma Horner, Assistant Director of Technical Finance, presented the draft Statement of Accounts for 2024/25, highlighting that the most significant changes to the accounts were found in sections 5 and 6, which covered the accounting policies. These had been updated to reflect the introduction of IFRS 16, a new accounting standard relating to leases². She also acknowledged that additional internal checks and reviews had been carried out due to the fact that the council's accounts had not undergone full external audits in recent years.

The committee noted the report and publication date of the draft statement of accounts for the financial year 2024/25 on 30 June 2025.

Risk Management and Governance

Mike Pinder, Assistant Director of Audit and Investigation, provided an update on the council's risk register, noting that it remained a highly dynamic document. He noted that the housing risk had increased during the reporting period, rising from a rating of 12 to 15, due to increased regulatory scrutiny and issues already discussed earlier in the meeting. He also reported an increase in the supplier risk, particularly linked to the review of Broadway Living and Broadway Living Property (BL/BLP).

The committee noted the progress on the Strategic Risk Register (SRR) and Heat Map, and provided comments to officers for their consideration.

Mike Pinder also provided an overview of the process undertaken to develop the Annual Governance Statement. He explained that the team had brought together all relevant sources of assurance, drawing on collective input to ensure the final document reflected a realistic and accurate picture of the council's governance framework.

The committee noted and commented upon the draft AGS.

External Audit Strategy

External auditors from Forvis Mazars provided an update on their audit approach and the current status of their work. They confirmed that their Audit Strategy Memoranda had been issued for both the council and the pension fund and outlined their responsibilities. These included forming and expressing an opinion on whether the financial statements were prepared in accordance with the Code of Practice on Local Authority Accounting, reviewing the council's arrangements for securing value for money, and reporting on the consistency of the financial data included in the Whole of Government Accounts submission.

The auditors addressed the matter of the previously disclaimed audit opinions covering multiple years, explaining that national guidance on how to rebuild assurance for disclaimed accounts had now been published. They noted that audit work would likely be required on the 2021/22, 2022/23, and 2023/24 accounts in order to be able to issue an unqualified opinion for 2024/25.

The committee noted the report and appendix on Forvis Mazars' audit strategy for 2024/25 for Ealing Council's main accounts and the Ealing Pension Fund.

Appendices

The following appendices were included in the meeting:

• Internal Audit Charter
• Internal Audit Strategy
• Fraud and Bribery Response plan
• Economic Crime and Corp Trans act
• Anti-Fraud proactive plan 2025
• Risk report - Q4
• Audit Strategy 2024-25
• LB Ealing Council Audit Strategy Memorandum 2024-25
• LB Ealing Pension Fund Strategy Memorandum 2024-25
• Prudential Indicators - Outturn 2024-25
• Minutes of Previous Meeting
• Audit Committee - Treasury Management Outturn 2024-25
• Statement of Accounts 2024-25
• Statement of Accounts 2024-25
• Annual Governance Statement
• Q4 AI Update and CAE Conclusion to AC