The Finance and Audit Committee of Gravesham Borough Council met on 16 September 2025 to discuss a range of financial and governance matters, including budget monitoring reports, audit plans, and counter-fraud strategies. The committee was also scheduled to review the annual report from the Local Government & Social Care Ombudsman, and the Finance and Audit Committee's own annual report. The meeting included discussion of the council's financial position, risk management, and internal controls.

External Audit

The committee was scheduled to discuss the finalised audit plan from Grant Thornton UK LLP for the year ending 31 March 2025. The purpose of the audit plan was to update members on the scope and timing of the statutory audit for the 2024/25 financial year, and to highlight key matters for consideration as part of the audit process.

The audit plan noted a number of key developments impacting the audit approach, including:

• Challenges of Local Government Reorganisation (LGR)
• Local Audit Reform
• National Position on staffing, climate change, the housing crisis, funding, digital transformation and cybersecurity
• Local Context of Gravesham Borough Council
• New accounting standards and reporting developments, including IFRS 16 Leases¹

The audit plan identified a number of significant risks, including:

• Management override of controls
• Valuation of land and building, council dwellings and Investment Properties
• Group consolidation financial statement level risk regarding production of the group accounts including intercompany eliminations
• The Charter redevelopment project assertion level risk regarding significant transaction to the Group PPE L&B Closing Balance (Valuation & Allocation) & AUC transactions (Existence & Accuracy).
• Implementation of IFRS 16

The committee was also scheduled to receive an Audit Progress Report and Sector Updates from Jasmine Kemp, Public Sector Audit Manager at Grant Thornton UK LLP. The report provided an update on the delivery of external audit responsibilities and a summary of emerging issues. The report noted that the 2024/25 draft financial statements were received from management on 10 July 2025, and that the audit team had shared comments with management following review of these financial statements. The report also noted that the auditor's annual report regarding arrangements to secure value for money would be presented to November's Finance and Audit Committee.

The Audit Progress Report and Sector Updates also included a section on the local authority backstop, and regaining assurance. The report noted that the National Audit Office (NAO) has published a new set of guidance for auditors, as part of its Local Audit Reset and Recovery Guidance (LARRIG) series. This sets out key considerations that may assist auditors in regaining assurance at previously backstopped audits.

Budget Monitoring

The committee was scheduled to consider the General Fund Budget Monitoring Report for Quarter One of 2025/26. According to the report, at the end of Quarter One, there was a projected £257k favourable variance for the year. The report also noted that the level of Working Balances at year-end was projected to be £2.783m, which is below the recommended level of £3.25m.

The report also provided an update on the Balancing the Budget programme, noting that since April 2025, further costed initiatives totalling £478k have been implemented and reflected in the Medium-Term Financial Plan (MTFP).

The committee was also scheduled to consider the Housing Revenue Account Budget Monitoring Report for Quarter One 2025/26. According to the report, at the end of Quarter One, expenditure exceeds income by £417k. The report also noted that the level of Working Balances at year end is projected to be £3m, the minimum level of Working Balances for the Housing Revenue Account (HRA).

Internal Audit

The committee was scheduled to receive an Internal Audit Update Report from James Larkin, Head of Internal Audit & Counter Fraud Shared Service. The report provided an update on the work, outputs and performance of the Internal Audit Team for the period 1 April 2025 to 31 July 2025.

The report noted that the first four months of 2025-26 had led to the following audit reviews being finalised:

• Street Cleansing
• Repairs & Supplies Management
• Rough Sleeping Service
• Parking Income Collection
• Community Grants
• Council Tax Discounts, Disregards & Exemptions

The committee was also scheduled to approve the Internal Audit Plan (Q3-Q4) 2025-26. The plan included a number of corporate objective / risk assurance work items, including:

• Tenancy Management – Anti-Social Behaviour
• Debtors
• Commercial Property Management
• Fleet Management
• Housing Allocations
• Local Plan
• HRA Building Compliance (inc gas safety, asbestos testing etc)
• Emergency Planning
• HR Policy Framework
• Procurement Compliance

Counter Fraud

The committee was scheduled to receive a Counter Fraud Update Report from James Larkin, Head of Internal Audit & Counter Fraud Shared Service. The report provided an update on the work, outputs and performance of the Counter Fraud Team for the period 1 April 2025 to 31 July 2025.

The report noted that over the first four months of 2025-26, 34% of projected resource has been delivered across a range of activity. The report also noted that fraud awareness training sessions have taken place with two services, including document verification training for one of those.

The committee was also scheduled to endorse the Counter Fraud & Corruption Strategy 2025. The strategy sets out the council's approach to combating of fraud and corruption and is designed to ensure the risk of such activity is reduced to its lowest possible levels.

Other Matters

The committee was scheduled to receive the Local Government & Social Care Ombudsman Annual Review Letter 2024-25. The letter summarises the complaints and enquiries the Local Government & Social Care Ombudsman (LG&SCO) has dealt with over the past year, along with the action taken.

The committee was also scheduled to endorse the Annual Report Chair of Finance and Audit Committee 2024-25. The report details the achievements of the committee in 2024/25.