The Audit and Governance Committee of Waltham Forest Council met on Thursday, 9 October 2025, to review treasury management, anti-fraud efforts, internal audit progress, and proposed changes to council procedures and conduct. Key decisions included approving the treasury management mid-year review, noting the progress of the Corporate Anti-Fraud Team, and recommending the adoption of a new protocol for honorary aldermen and changes to council procedure rules and the councillors' code of conduct.

2025-26 Treasury Management Mid-Year Review

The committee reviewed the 2025-26 Treasury Management Mid-Year Report, which detailed the council's financial activities for the first six months of the financial year. The report indicated that the council maintained an average investment balance of £49.9 million, earning an average interest rate of 4.24%, slightly above the benchmark SONIA rate of 4.21%. All treasury management activities were reported to be in accordance with the approved limits and prudential indicators set out in the Treasury Management Strategy Statement 2025/26, with no breaches of indicators. The council held £33.4 million in investments with an average interest rate of 4.05% as of 30 September 2025. The borrowing portfolio stood at £489.7 million with an average interest payable of 3.92% and an average maturity of 22.5 years. The council had not undertaken any long-term borrowing via the Public Works Loan Board (PWLB) during this period. The committee recommended that Full Council approve the treasury management activities for the period.

Corporate Anti-Fraud Team Progress Update Report

An update on the work of the Corporate Anti-Fraud Team (CAFT) for the period 1 April 2025 to 31 August 2025 was presented. The report highlighted significant achievements, including the recovery of 26 properties, the refusal of 7 housing succession applications, and the prevention of 2 fraudulent Right-To-Buy applications. Additionally, 136 Blue Badges were seized or cancelled, leading to 18 successful prosecutions. Fifty-four civil financial penalty notices were issued to private landlords for failing to meet property standards. Total cashable savings identified by the team amounted to £49,580. The report also noted that two council employees received written warnings following investigations, and one officer resigned after a 'Formal Caution' for polygamous working. The committee noted the report.

Progress update on delivering the 2025-26 Internal Audit Plan

The committee received an update on the progress of the 2025-26 Internal Audit Plan. As of 4 September 2025, 12% of the annual plan was at draft report stage or finalised, 21% was in the fieldwork/review stage, 30% was in the scoping/booked stage, and 37% was planned for the third and fourth quarters. Only 1% of the plan had been cancelled and 1% deferred. The report detailed the status of individual audits and highlighted that 22 high-priority actions remained outstanding across various reviews, with follow-up audits in progress or planned. The committee noted the report.

Honorary Alderperson Protocol

The committee considered a proposal to adopt a protocol for conferring the titles of Honorary Alderman, Honorary Alderwoman, and Honorary Alderperson. The protocol outlined criteria for such awards, including a minimum of 12 years' service to the council, with provisions for exceptional circumstances. It also proposed an amendment to the Council's Constitution to explicitly reserve decisions on these awards to the Full Council. The addition of the title 'Honorary Alderperson' was suggested to align with the council's equality commitments. The committee recommended that Full Council adopt the protocol, amend the Constitution accordingly, and note the statutory powers and the proposed addition of the new title.

Constitution Updates - Council Procedure Rules and Councillors' Code of Conduct

Proposed amendments to the Council Procedure Rules and the Councillors' Code of Conduct were presented. The changes to the Council Procedure Rules included increasing the time allotted for public statements to 20 minutes, giving the Mayor discretion to vary speaking times, and amending the deadline for requests to speak to two working days before a meeting. The deadline for questions to the executive was proposed to be moved to five clear working days before a meeting. A minor update to the Councillors' Code of Conduct was also proposed to address circumstances where members act as advocates for their constituents, including a new section on 'Use of position – Advocacy' to manage potential conflicts of interest. The committee recommended that Full Council adopt these proposed changes.