The General Purposes and Audit Committee of Bexley Council met on 30 July 2025 to discuss internal audit and counter fraud activity, treasury management, and early release of pension benefits. The committee was also scheduled to review and ratify the updated internal audit plan for 2025/26.

Annual Head of Internal Audit Report

The committee was scheduled to consider the annual report from the Head of Internal Audit for 2024/25. The report was intended to provide an opinion on the overall adequacy and effectiveness of the council's framework of governance, risk management, and control. According to the report, the opinion was based on internal audit work from 2024/25, which was planned to give sufficient assurance on the council's management of its key risks.

The report stated that the council had adequate and effective systems of internal control in place to manage the achievement of its objectives, but that assurance could never be absolute. The report also noted that internal audit work had identified a number of opportunities for improving controls and procedures.

The report also covered counter fraud activity, stating that the Counter Fraud team's activity had been reported to the committee at each of its meetings in 2024/25, and that a new annual counter fraud plan was ratified by the committee in March 2025.

The report noted that Heather Buckingham, Head of Assurance, is also responsible for the council's risk management, counter fraud and insurance services, and that from 30 June 2025, this had also extended to health and safety. The report stated that to manage the risk to organisational independence, internal audit would report to the committee on the steps taken to ensure independence when insurance, risk management and health and safety are audited.

Internal Audit and Counter Fraud Progress Reports

The committee was scheduled to receive an update on internal audit activity from 18 March 2025 to 9 July 2025, as well as counter fraud activity from 1 March to 9 July 2025.

The report noted that the internal audit work of the council was being carried out by an in-house team, which includes a Head of Assurance and two contracted internal auditors, and that work was underway to recruit permanent staff.

According to the report, since the last meeting of the General Purposes and Audit Committee, one report had been issued in final form, regarding the management of actual and potential data breaches. Six audits had been issued in draft form, regarding:

• Key financial systems: Business / Non-Domestic Rates Collection
• H&S policy audit
• Transparency Code Compliance
• Complaints
• Employees Gifts and Hospitality
• Emergency Housing Landlord Health and Safety Compliance

The report stated that the Counter Fraud team are primarily informed of potential frauds via the biennial National Fraud Initiative¹ and reports of potential frauds made by members of the public, council employees, and other organisations including housing associations.

The report also included data on the number of fraud cases logged and closed during the reporting period, as well as the savings achieved through counter fraud activity.

Updated Internal Audit Plan

The committee was scheduled to review and approve the updated internal audit plan for 2025/26. The report noted that the plan had been revised to align further to the Global Internal Audit Standards (GIAS). The report also stated that each audit included in the plan had been aligned to the strategic risk register and the council's corporate priorities.

The report noted that eight audits had been deferred from the 2024/25 internal audit plan to the 2025/26 plan, resulting in an increase of approximately 85 budgeted days overall.

The report also included an updated Internal Audit Charter for 2025/26, which was based on the model public sector template provided by the IIA.

Annual Report on Redundancy, Severance and Early Release of Pension Benefits

The committee was scheduled to note a report describing the grounds on which early release of pension benefits can be made. It detailed the number of redundancy terminations in 2024/25, the number of ill health retirements and flexible retirements and comments on the effectiveness of the Council's existing early retirement policies.

The report stated that during the 2024/25 financial year one employee left the council due to redundancy with entitlement to the release of Local Government Pension Scheme (LGPS) benefits. One employee left as a result of ill health retirement and LGPS benefits were also released for six individuals requesting flexible retirement.

Annual Treasury Management Outturn Report

The committee was scheduled to note the treasury management activities and performance against targets for the financial year 2024/25.

The report stated that the council's treasury management debt and cash investment position is managed to ensure adequate liquidity for revenue and capital expenditure, security of capital for investments and to manage risks within all treasury management activities.

The report also included information on the council's borrowing position, compliance with treasury limits, and investment strategy. According to the report, the council received £2.712m treasury income from its investments.

The report noted that during the 2024/25 financial year, the council made total debt repayments of £2.731 million, and incurred interest payments totalling £7.586 million on its existing loan portfolio.