The Audit & Governance Committee of Croydon Council met on Thursday 14 March 2024 to discuss the 2019/20 financial statements and the external audit findings. The committee was recommended to delegate authority to the Section 151 Officer to sign the 2019/20 Council and Pension Fund accounts and letters of representation to Grant Thornton LLP. They were also asked to note the 2019-20 Audit Findings Report and the External Audit Plan for 2020-21.

External Audit Findings Report on the 2019-20 Statement of Accounts

The committee received the final 2019-20 Audit Findings Report from Grant Thornton UK LLP. This report detailed fourteen adjustments to the financial statements, resulting in a £206 million adjustment to the Council's 2019/20 Comprehensive Income and Expenditure Statement. Grant Thornton issued a 'Disclaimer' audit opinion on the financial statements due to ongoing police investigations related to the refurbishment of Fairfield Halls and potential misuse of public office. This disclaimer means the auditors were unable to form an opinion on the financial statements. The report also highlighted a material valuation uncertainty regarding land and buildings, investment properties, and the pension fund liability due to the impact of Covid-19.

The committee was informed that a 'Disclaimer' opinion was also anticipated for the 2020/21 accounts, with the hope that the 2021/22 accounts would be the first to receive a 'clean opinion'. The Value for Money (VFM) external audit work was complete up to 2022/23, with the 2022/23 report expected at the April meeting. The committee noted that the council's response to the government's consultation on a backstop date for auditing local government accounts had been circulated.

The committee resolved to delegate authority to the Section 151 Officer, in consultation with the Chair, to sign the 2019-20 Council and Pension Fund accounts and letters of representation to Grant Thornton LLP. They also resolved to note the 2019-20 Audit Findings Report and the External Audit Plan for 2020-21.

Anti Fraud & Corruption Strategy

The committee was asked to review and approve Croydon's refreshed Anti-Fraud & Corruption Strategy. The strategy had been updated to reflect the establishment of the Counter Fraud Shared Service with the London Borough of Lambeth, with a greater emphasis on fraud prevention. The strategy outlined a five-pronged approach: 'govern, acknowledge, prevent, pursue and protect', and referenced the Nolan Principles of public life. The committee resolved to approve the refreshed strategy.

Core Business Systems Assurance Review Update

This report provided an update on the work undertaken to ensure the effective utilisation of the council's core IT business applications. The committee noted the complexity of assuring governance across Croydon's core business applications, with 50% of these systems being managed by services rather than the central IT function. A Digital Internal Control Board (DICB) had been established to champion improved governance of IT systems. The report proposed a work plan for 2024/25 for further improvements, and the committee agreed that updates would be presented annually.

Internal Audit Annual Plan, Strategy and Charter

Dave Phillips, Head of Internal Audit, presented the report for review and approval. The committee was asked to approve the Internal Audit Charter, Strategy, and the plan of audit work for 2024/25. The committee requested more narrative to justify the prioritised areas in the plan and to explain how they linked to key areas of assurance. Officers agreed to provide this additional information and to circulate the previous year's audit plan for information. The committee resolved to approve the Internal Audit Charter, Strategy, and the plan of audit work for 2024/25, subject to these actions.

People & Cultural Transformation Update

Dean Shoesmith, Chief People Officer, provided an update on the People and Cultural Transformation Strategy 2022-2026. The report highlighted achievements to date, work in progress, and planned actions. Key initiatives included management training, leadership development programmes, improvements to reasonable adjustments, the launch of positive action talent development programmes, and the council's accreditation as a menopause-friendly employer. Benchmarking data was provided, and officers confirmed that progress was being monitored by the Workforce Internal Control Board. The committee commended the quality of the strategy and noted its link to the wider transformation work. The committee resolved to receive the update and note the achievements, work in progress, planned actions, and the contents of the report and Action Plan.

The meeting concluded at 9:20 pm.