The Audit, Standards and Statutory Accounts Committee meeting on 24 November 2025 focused on the 2024/25 accounts and the external auditor's report, an update on internal audit progress, a strategic review of risk management, and a fraud update. Key decisions included approving delegated authority for the Chair to sign the 2024/25 accounts and noting progress on the internal audit plan and the fraud investigation activity.

2024/25 Accounts and the Report of the External Auditor

The committee received an update on the 2024/25 accounts and the subsequent audit from Ernst & Young (EY). Alyssia Atto, Chief Accountant, reported that the audit commenced in July and was expected to be completed and signed off within the next month, aligning with EY's audit plan. A significant positive development is the anticipated receipt of a qualified except for opinion, one year earlier than planned, moving closer to regaining full assurance and a clean opinion. Ben Lazarus from EY presented their report, highlighting the positive progress and thanking the finance team for their cooperation. He noted that while some outstanding items from the report had been largely resolved, a few audit differences, primarily around cut-off errors, were not deemed material or significant. EY's report indicated a positive direction of travel, with most areas showing improvement, though some work remains. The external auditor expects to issue a qualified except for opinion for 2024/25, an improvement from the disclaimed opinion of previous years, due to increased assurance gained. The audit fees for 2024/25 are £312,118, a 340% increase compared to 2021/22, reflecting changes in the audit landscape and regulatory pressures. The committee approved delegated authority for the Chair to sign the 2024/25 accounts and the letter of representation upon completion of the audit.

Internal Audit Update Report

Andrew Hamilton, Assistant Director of the Audit Shared Service, presented an update on the internal audit work for 2025/26 up to 31 October 2025. He reported that 30 pieces of work were complete or in progress, with 12 booked and resource allocated, indicating a reasonable position to complete the plan by year-end. Recruitment efforts are ongoing to address team resource challenges, with new permanent and contract auditors joining. The report highlighted four Priority One recommendations that had passed their due date, with discussions focusing on the reasons for delays, including complexities in areas like funded care contracts and the implementation of technological solutions for fleet vehicle monitoring. The committee agreed to a recommendation that relevant officers would attend the committee meeting in February should Priority One recommendations related to fleet vehicles and funded nursing care not be closed by the end of January.

Strategic Review of Risk Management

The committee was presented with the outcomes of a review into the Council's approach to risk management. Historically, risk management relied on a paper-based system with annual reviews of strategic risks. The proposed new approach aims for a more dynamic, digital, and quarterly framework, starting at a divisional level and escalating to directorate and then director's board meetings. This will be supported by IT colleagues to develop a digital solution, with training provided to the executive board and service leads. The aim is to improve evidence trails, facilitate better understanding of material risks across different layers of the organisation, and allow for trend analysis. The committee approved the next steps for updating the Council's risk management approach, which include seeking approval from both audit committees, working with Corporate IT on a digital solution, procuring training, and producing a revised strategy for approval in March/April 2026.

Fraud Update

Kevin Holland, Assistant Director of Fraud, Risk & Insurance, provided a mid-year update on the work of the South West London Fraud Partnership (SWLFP). He highlighted an increase in referrals for tenancy fraud and abuse, partly attributed to more active engagement with social housing providers. A spike in parking permit fraud was noted, linked to false breakdown claims supported by fake garage invoices. Mr. Holland also discussed the national trend of increased acceptance of fraud and the impact of cost of living pressures. The report indicated that the Council compares favourably with other fraud teams nationally. The committee noted the fraud progress report and the review of activity completed so far during 2025/26.

Committee Work Programme

The committee noted the committee work programme, with a report on Risk Management to be considered at the next meeting. The committee also confirmed that the draft audit plan for 2026/27 would be seen in the February meeting.

Attendees:

• Councillor Richard Bennett (Chair of Audit, Standards and Statutory Accounts Committee)
• Councillor Charlie Engel (Vice-Chair, Audit, Standards and Statutory Accounts Committee)
• Councillor Anton McNulty-Howard
• Councillor James Chard (Vice-Chair Transport & Air Quality Committee.)
• Councillor Carey Bishop
• Councillor Alice Bridges-Westcott
• Councillor Nancy Baldwin (Vice-chair of the Finance, Policy and Resources Committee (Spokesperson for Communities, Equalities & the Voluntary Sector))
• Councillor John Coombs (Vice-chair of the Planning Committee, Spokesperson for Arts)
• Councillor Jeremy Davis
• Neil Chapman
• Michael Doris
• Heather Eyre
• Simone Holliday

Officers Present:

• Alyssia Atto, Chief Accountant
• Ben Lazarus, Ernst & Young
• Andrew Hamilton, Assistant Director of the Audit Shared Service
• Tanya Klajic, Audit Manager
• Anna Popovicci, Deputy Chief Executive
• Kevin Holland, Assistant Director - Fraud, Risk & Insurance
• Fenella Merry, Executive Director of Finance

Decisions Made:

• The minutes of the meeting held on 1 July 2025 were approved.
• Delegated authority was given to the Chair to sign the 2024/25 Accounts and the Letter of Representation upon completion of the audit.
• The committee noted the draft Audit Results Report for 2024/25, the fees update, and the local audit update.
• The committee noted progress against the 2025/26 internal audit plan.
• The committee approved the next steps for updating the Council's Risk Management Approach.
• The committee noted the Fraud Progress report and review of activity completed so far during 2025/26.
• The committee work programme was noted.
• It was agreed that relevant officers would attend the committee in February should Priority One recommendations related to fleet vehicles and funded nursing care not be closed by the end of January.