The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council met on Thursday 27 November 2025 to review the council's financial health, risk management, and internal audit progress. Key discussions included the Corporate Anti-Fraud Team's performance, the council's risk register, treasury management activities, and the progress of the external audit for the 2024/25 financial year. The committee also received updates on member development programmes and noted the forward work plan.

Corporate Anti-Fraud Team (CAFT) Half-Yearly Progress Report

The committee received an update on the work of the Corporate Anti-Fraud Team (CAFT) for the first half of the 2025/26 financial year. CAFT reported on its investigations into corporate fraud, concessionary travel fraud, and tenancy fraud. Key achievements included two criminal prosecutions for polygamous working and false timesheet submissions, disciplinary action against a member of staff for working simultaneously at another council, and the prevention of £32,760 in social care funding fraud. Tenancy fraud investigations led to the recovery of 36 properties, valued at £2.37 million in cost efficiencies, and prevented 16 new applications due to ineligibility. Financial investigations under the Proceeds of Crime Act 2002 were also ongoing, with efforts to recover confiscated assets. CAFT also highlighted its advisory role, training initiatives, and participation in International Fraud Awareness Week. The committee noted the progress made against the Annual Anti-Fraud Strategy 2025-26 and supported the team's ongoing efforts.

Quarterly Risks Report

An update was provided on the council's strategic and high-level service risks for Quarter 2 of 2025/26. There were 183 open risks in total, with 24 considered strategic and seven high-level strategic risks. The report detailed risks across various directorates, including finance, business continuity, and statutory duties. Specific risks discussed included revenue overspends due to rising demand for services, the affordability of the capital programme, and potential increases in the North London Waste Authority (NLWA) levy. Concerns were also raised about climate change and net zero targets, and an ongoing equal pay claim. Several high-level service risks were also highlighted, such as increased demand for temporary accommodation and health and safety issues in the private rented sector. The committee noted the status of these risks and the controls and mitigations in place.

Internal Audit Progress Report

The committee reviewed the Internal Audit Exception, Recommendations and Progress Report for Quarter 1 of 2025/26. It was noted that 52% of the annual internal audit programme had been completed, meeting the Q2 target. Eight reviews were completed in the quarter, including an assurance report for Shalom Noam Jewish Primary School. However, there was a decline in the rate of completed actions, with 67% implemented compared to the 90% target. This was attributed to management not completing agreed actions or providing evidence on time. A 'Limited' Assurance report was issued for Shalom Noam Jewish Primary School, highlighting issues with budget monitoring and banking controls. The committee noted the progress made and the follow-up outcomes, while also acknowledging the need for improvement in the timely completion of audit actions.

Treasury Management Performance Update

The Treasury Management Performance Update for Quarter 2 of 2025/26 was presented, detailing treasury management activities in compliance with the approved Treasury Management Strategy Statement. The council secured a £25 million loan from the Public Works Loan Board (PWLB) at 4.22% for 18 months to fund Housing Revenue Account (HRA) capital expenditure. Investment balances decreased from £60.4 million to £42.1 million due to significant cash outflows. Projections indicated a further decline in cash balances in Q3, potentially requiring borrowing to maintain liquidity. Financial advisors MUFG recommended maintaining short-to-medium-term borrowing, with a view to longer-term borrowing when market conditions improve. The report also detailed the capital programme, reserve usage, and the capital financing budget, noting an increase in borrowing requirements. The committee noted the performance update and the strategic priorities for the treasury team.

External Audit Progress Report

Grant Thornton LLP provided an update on the external audit of the Council's Statement of Accounts for 2024/25. Fieldwork had commenced in June 2025 and was ongoing. Challenges were noted regarding the late publication of the council's accounts and difficulties in obtaining appropriate listings for debtors and creditors, which had delayed progress. The auditors indicated that they would be unable to issue an unqualified audit opinion for 2024/25 and would likely issue a disclaimer of opinion due to issues with opening balances, the actuarial valuation of promised retirement benefits, and the classification of employer contributions. The audit team highlighted that work on the Pension Fund's financial statements was also ongoing, with a disclaimer of opinion anticipated. The committee noted the audit progress and sector updates, including information on local audit reform and the implications of the local authority backstop.

Member Development Programme Updates

Updates were provided on the Member Development Programme 2022-2026 and the proposed Member Development 2026-2030 and Induction Programme. The committee noted the progress on training delivered and the interim review for Charter Plus status. Discussions also touched upon encouraging a wider range of individuals to become councillors and the challenges of accommodating training for those with other work commitments. The draft induction programme for 2026-2030 was presented, with feedback sought on proposed engaging session formats like quizzes and polls. The importance of providing essential training early in a councillor's term was emphasized.

Committee Forward Work Programme

The committee noted the Forward Work Programme for 2025-2026, which outlines the topics to be discussed in future meetings.