The Audit and Governance Committee of Sutton Council was scheduled to review the council's financial health, operational risks, and internal audit progress. Key discussions were anticipated around the annual insurance review, the outcome of a code of conduct hearing, and the annual complaints report. The committee was also set to examine the corporate risk register, review savings delivery, and receive updates on internal audit and fraud investigations.

Annual Insurance Review

The committee was scheduled to consider the annual insurance review report, which outlines the insurance service's delivery models and its contribution to the council's overall risk management framework. The report details the revenue generated from providing insurance services to other public sector organisations, including Bromley Council, Kingston Council, and Merton Council. It also covers the procurement of new insurance policies for property, terrorism, and high-value commercial buildings. A significant section of the report was dedicated to the buildings insurance for Aspects, 1 Throwley Way, detailing the reduction in costs following the rectification of unsafe external cladding. The report also outlines the funding structure of the insurance programme, which combines self-insurance and external catastrophe insurance, and provides an overview of claims handling performance.

Code of Conduct Hearing Panel Outcome

A report was scheduled to detail the outcome of a Code of Conduct Hearing Panel that convened on 17 July 2025. This panel considered three complaints and subsequent investigations relating to Councillor Sheldon Vestey. The report was expected to outline the panel's conclusions regarding Councillor Vestey's compliance with the Code of Conduct, the recommendations made, and the status of Councillor Vestey's response to these recommendations. The report also noted the external costs associated with the investigations and hearing.

Annual Complaints Report

The committee was due to receive the Annual Complaints Report for 2024/25, providing an overview of customer contact and complaints received across various council services. The report details the volume of calls to the contact centre, corporate and statutory complaints, education complaints, and housing landlord complaints. It highlights key themes and drivers of dissatisfaction, including service failure, communication issues, and officer conduct. The report also summarises the findings of the Local Government and Social Care Ombudsman and the Housing Ombudsman, detailing upheld complaints and lessons learned. Additionally, it outlines proposed changes to the Local Government and Social Care Ombudsman's Complaint Handling Code.

Review Risk Register and Discuss Mitigation

The committee was scheduled to review the updated Corporate Risk Register for September 2025. This report provides an overview of the key risks facing the council and the mitigating actions being taken. Significant risks discussed were expected to include the council requiring exceptional financial support to set a balanced budget in future years, due to pressures in social care, temporary accommodation, and SEND support, as well as the potential impact of the proposed Fair Funding Review. Another key risk was the failure to reduce carbon emissions in line with council commitments and the impacts of extreme weather events. The report also detailed risks associated with the Housing Revenue Account, damp and mould in social housing, technology failure, cyber security, and the negative impact of planned NHS changes. Changes to current and target risk scores since the last review were also to be presented.

Review of Savings Delivery

This report was intended to provide the first annual update on the delivery of budgeted savings for 2025/26. It details the progress made in achieving the planned savings, which are crucial for mitigating financial sustainability risks. The report outlines the savings targets, the directorates responsible for delivery, and the progress monitored through the budget monitoring process. It also details savings delivered through the transformation programme and provides a forecast of the amount of savings expected to be delivered by the end of the financial year, highlighting any areas where savings are unlikely to be fully delivered and the reasons why.

Internal Audit Progress Report

The committee was scheduled to receive an update on the progress of the Internal Audit Plan for 2025/26. The report summarises the audit activity undertaken up to August 2025, including the number of audits completed, in progress, and due to start. It details the assurance opinions given for completed audits, categorised as Substantial, Reasonable, Limited, or No Assurance, and outlines the priority of recommendations issued. The report also provides an update on Priority 1 recommendations that are overdue and details changes to the audit plan. Specific financial systems and school audits were also to be reviewed.

Fraud Referrals and Investigations Update

This report was scheduled to summarise the results of the council's counter-fraud and investigations work undertaken during 2025/26. It details the number of fraud cases worked on, broken down by type, including tenancy fraud, temporary accommodation, housing applications, and employee fraud. The report also presents performance against key objectives and targets, such as properties brought back into council control and housing applications withdrawn due to fraud. It highlights the importance of partnership working with the South West London Fraud Partnership (SWLFP) and details the financial savings achieved through fraud investigations. The report also covers the use of the Regulation of Investigatory Powers Act (RIPA) and compliance with the Local Government Transparency Code.

Provisional Work Plan

The committee was to review the provisional work plan for future Audit and Governance Committee meetings, including items scheduled for the January 2026 meeting. This plan outlines upcoming governance and audit items to be discussed.