The Audit & Governance Committee of Croydon Council met on Thursday 11 April 2024 to review the Auditors' Annual Report for 2022/23, discuss the council's corporate risk management, and receive an update on the Oracle Improvement Programme. The committee noted the external auditor's findings regarding the council's financial sustainability and governance, and agreed to monitor the implementation of recommendations. They also reviewed the corporate risk register and were updated on the progress of the Oracle Improvement Programme, which aims to enhance the council's core financial and procurement systems.

Auditors Annual Report 2022/23

The committee received the Interim External Auditor's Annual Report for 2022/23 from Grant Thornton. The report highlighted that while the council is making good progress in areas of financial sustainability, governance, and improving economy, efficiency, and effectiveness, there remain risks of significant weaknesses. The council has accepted three new key recommendations and five improvement recommendations from the report. Councillor Jason Cummings, Cabinet Member for Finance, noted that the council is on a journey of improvement, and the external auditor's insights are crucial for continued commitment to improvement and cultural change. The committee resolved to note the report and monitor the implementation of its recommendations.

Anti-Fraud Update Report 1 April 2023 - 31 March 2024

Malcolm Davies, Head of Insurance, Anti-Fraud and Risk, introduced the report detailing the activities of the Counter Fraud Shared Service. The council's proactive preventative anti-fraud measures, including staff vetting and data analytics through the National Fraud Initiative, have generated significant savings. Michael O'Reilly, Head of Counter Fraud Shared Service, provided an overview of the data, noting that comparison data on progress and outcomes would be available in future reports. The committee requested narrative on the cost-benefit relationship and value for money in proactive anti-fraud activities for future reporting. They also noted the council's commitment to training and holding officers accountable for non-compliance. The committee resolved to note the anti-fraud activities of the Counter Fraud Shared Service.

Corporate Risk Management

Malcolm Davies presented the Corporate Risk Register as at April 2024. The register details current corporate risks rated as 'Red'. The committee noted that while there have been improvements in risk management approaches, areas for development remain, particularly in future control measures and the articulation of risk improvement plans. Several risks had escalated to 'Red' status since the last review, including the Public Switched Telephone Network switch-off in December 2025, and insufficient housing options for care-experienced young people. Councillor Jason Cummings, Cabinet Member for Finance, highlighted a cultural shift within the council, with officers now more willing to raise issues early. The committee suggested that risks that have recently become 'Red' would be suitable for 'Risk Deep Dive' sessions. They also noted weaknesses in future control measures and requested clarity on the impact of controls on risk status. The committee resolved to note the contents of the corporate risk register.

Oracle Improvement Programme Update

Alan Layton, Interim Head of Finance, provided an update on the Oracle Improvement Programme Business Case. The programme aims to enhance the council's Oracle platform for Finance, HR, Payroll, and Procurement systems, reflecting best practice and enabling further transformation. The proposed improvements include streamlining processes, automating tasks, and improving user experience. The programme will be delivered over 18 months for Finance and Procurement, with HR expected to take two years. The estimated cost for the Finance and Procurement workstreams, along with programme management and change, is £3.922 million, funded from earmarked reserves. The committee commended the business case work and noted the importance of user benefits and data efficiencies. They also discussed the 'Adopt not Adapt' approach and how data migration risks would be mitigated. The committee resolved to receive the presentation and update.