The Governance, Audit, Risk Management and Standards Committee of Harrow Council met on Tuesday 22 July 2025 to review the Council's financial statements for 2024-2025, discuss the annual health and safety report, and consider the corporate risk register. Key decisions included the approval of the draft Statement of Accounts for 2024-2025, noting the progress of the external audit, and agreeing to establish a Standards Working Group. The committee also reviewed the Treasury Management Outturn Report for 2024-2025 and the draft Annual Governance Statement for the same period.

Statement of Accounts 2024-2025

The committee received the draft Statement of Accounts for 2024-2025, which reported a surplus of £1.5 million for the financial year, which has been added to earmarked reserves. The Council ended the year with a net asset position of £1,044 million. The external auditors, Forvis Mazars, provided an update on the audit progress, noting that most audit work would take place between July and November 2025, with a hopeful completion in December or January 2025. The auditors also discussed the process of rebuilding assurance following a disclaimed audit opinion on the March 2024 accounts, outlining a phased approach to achieving an unqualified opinion.

Appointment of Vice-Chair and Standards Working Group

Councillor Ghazanfar Ali was appointed as the Vice-Chair of the committee for the current year. The committee also agreed to establish the Standards Working Group, comprising one member from each political group and an independent chair, to advise on standards matters.

Annual Health and Safety Report 2024-2025

The committee received the annual health and safety report, which highlighted a 16% decrease in reported incidents compared to the previous year, with 470 incidents recorded. There were four RIDDOR incidents, and a Notice of Contravention was issued to the authority concerning breaches around the Control of Substances Hazardous to Health (COSHH) regulations relating to Legionella. The report also detailed ongoing work on training, audits, and the promotion of incident reporting through the Don't Ignore It, Report It campaign.

Corporate Risk Register Update Q4 2024-2025

The committee reviewed the Corporate Risk Register for Quarter 4 of 2024-2025, which identified 15 open risks. Four of these were rated as 'RED': increasing homelessness and demand for temporary accommodation, inability to deliver the Council's approved Medium Term Financial Strategy (MTFS) over the next three years, failure to meet the demand for Adult Social Care within budget, and failure to fulfil the Council's Health & Safety duties. A new risk concerning increasing homelessness and the demand for temporary accommodation was added to the register.

Corporate Anti-Fraud Team Annual Report 2024-2025

The committee received the Corporate Anti-Fraud Team's annual report, which detailed that eight out of twelve workstreams were achieved, with two carried forward. Four out of five key performance indicators were met. The team received 181 fraud referrals, closed 152 cases, and achieved 23 positive outcomes, resulting in fraud loss avoidance savings exceeding £1.8 million. The National Fraud Initiative exercise registered 220 positive outcomes, saving approximately £300,000. The overall return on investment for the team was reported as 8:1 for 2024-2025.

GARMS Committee Annual Report 2024-2025 and Updated Terms of Reference

The committee reviewed its own annual report for 2024-2025, noting that it had successfully fulfilled its terms of reference. Three changes were made to the committee's terms of reference to reflect new global internal audit standards, including the need to support the internal audit mandate, ensure unrestricted access for internal audit, and support the Assistant Director Audit & Anti Fraud in cases of disagreement with senior management.

Draft Annual Governance Statement 2024-2025

The committee reviewed the draft Annual Governance Statement for 2024-2025, which outlines how the Council has complied with its local code of corporate governance. Four areas were identified for improvement: Adult Social Care, Children's Social Care, the Schools PFI contract, and significant cost pressures. Improvement plans are underway for all these areas. The report also noted that four out of five improvement areas from the previous year's action plan had been closed.

Internal Audit Annual Report 2024-2025 and Internal Audit Strategy 2025-2028

The committee received the Internal Audit Annual Report for 2024-2025, which stated that 92% of the audit plan was completed, exceeding the 90% target. All recommendations made were agreed for implementation, with 80% fully implemented and 15% partially implemented. The committee also reviewed the draft Internal Audit Strategy for 2025-2028, which sets out the vision, objectives, and approach for the next three years.

Treasury Management Annual Outturn Report 2024-25

The committee received the Treasury Management Outturn Report for 2024-2025. Actual capital expenditure was £66 million against an original estimate of £175 million. The Council did not undertake any external borrowing during the year, financing its capital programme internally. Investment income was £2.5 million higher than expected due to favourable interest rates. The report also noted the disposal of one investment property during the year.

Any Other Business and Exclusion of the Press and Public

No other urgent business was raised. The committee resolved to exclude the press and public from the remaining items of business due to the likely disclosure of exempt information.