The Audit Committee of Hertsmere Borough Council is scheduled to meet on Monday, 29 September 2025, to discuss risk management, fraud prevention, internal audit progress, and the presentation of the 2024/25 Statement of Accounts. The meeting will also cover the approval of minutes from the previous meeting.

Here's a breakdown of the key topics:

Presentation and Approval of Statement of Accounts for 2024/25

The committee is scheduled to consider the 2024/25 Statement of Accounts. The report pack includes the unaudited Statement of Accounts for 2024/25 as an appendix. The committee will be asked to note:

• The statutory backstop arrangements for the council's external audit services, with a deadline for audit completion and sign-off by 26 February 2026.
• Three technical amendments that have not yet been included in the published draft, but which have no impact on the financial position reported .

Risk Management Update

The committee will be asked to note the strategic risks outlined in the Risk Management Update report. The report includes an appendix highlighting 'red' risks, which are those at the top end of the likelihood/impact assessment, as well as any changes that have occurred since the previous meeting in June 2025.

The report also provides an update on devolution and local government reorganisation (LGR). According to the report pack, work is ongoing to draft three preferred options for Hertfordshire, ahead of the November 2025 deadline. These options are scheduled to be presented to the Full Council on 19 November, and then to the Cabinet. The report pack states that members of staff, residents and other stakeholders were given the opportunity to engage in the process, and that information sessions were held with these groups in early September.

The report also notes that at the previous meeting, members requested that consideration be given to establishing a separate corporate risk for Elstree Film Studios. The Corporate Governance Group reviewed this matter and concluded that the risk associated with failure to repay the loan should remain under the risk of External Financial Pressures. The Studios Management Board is actively working to repay the loan, and the agreement with MBS is delivering operational efficiencies and is expected to generate income to support loan repayment.

The report pack also notes that a new risk has been added regarding the potential designation as a Special Measures Planning Authority. According to the report pack, a high rate of planning decisions being overturned at appeal, combined with a lowered threshold for designation, may result in the council being designated by the Secretary of State. This could lead to loss of control over planning applications, reduced local influence, financial impacts, reputational damage, and diminished public trust. Mitigations include training for both Planning Committee Members and Officers on report writing and presentation skills.

The committee will also be asked to confirm whether the risk focus report for the meeting on 29 January 2026 is to remain the risk of Project Management. The report pack notes that there is currently work in progress to establish a proportionate project management framework for the council, which may reduce and remove the need to have this recorded as a separate risk.

Anti-Fraud Plan 2025/26 - Progress Report

The committee will be asked to note the progress by council officers and the Shared Anti-Fraud Service (SAFS) to deliver the 2025/26 Anti-Fraud Plan.

The report pack states that between April and August 2025, 46 allegations of fraud had been received, affecting service areas such as housing, council tax, procurement, and Blue Badge misuse. It also notes that SAFS currently have 34 cases under investigation, or at referral stage, with estimated losses of £623,000 recorded in this caseload.

The report pack also notes that SAFS and council officers ensured that all data required for submission as part of the Cabinet Office 'National Fraud Initiative' (NFI) was uploaded in late 2024. The output from this exercise produced 1,294 general matches, creditors and council tax reports. Officers from SAFS and the council have been reviewing the various reports/matches prioritising high-risk areas, this work has identified 17 potential frauds, with savings through prevention of £72,000 reported so far.

The report pack also notes that a new offence of 'Failing to Prevent Fraud' introduced by the Economic Crime and Corporate Transparency Act 2023 came into force in September this year. Along with all other councils Hertsmere Borough Council will be caught by this legislation and SAFS are liaising with the Local Government Association (LGA) and FFCL to better understand the risks and implications of this new legislation so the council is prepared for it.

Internal Audit 2025/26 - Progress Report

The committee will be asked to note the progress report from the Shared Internal Audit Service (SIAS).

The report pack notes that as at 12 September 2025, 38% of the 2025/26 Audit Plan days had been delivered. The report also includes a schedule detailing the implementation status of high priority audit recommendations. Of the five high priority recommendations, four have now been assessed as implemented and one as partially implemented with a revised target date.

SIAS Annual Report 2024/25

The committee will be asked to review the annual report from the Shared Internal Audit Service (SIAS).

The report pack includes a summary of the levels of delivery, shared learning, managing challenges, developing people and processes, customer service and performance.

The report pack notes that SIAS completed 221 assurance and other projects to draft or final report stage as at the date of compiling the Annual Assurance Opinions for 2024/25, giving the assurance opinions and recommendations detailed in the charts included in the report.