The Audit and Corporate Governance Committee of Camden Council was scheduled to discuss the Council's reward strategy and pay schemes, review internal audit progress, and examine the risk management framework and principal risks facing the organisation. The meeting also included updates on treasury management, the auditor's annual report, and the committee's own work and training plan.

Annual Reward and Terms and Conditions Update

The committee was scheduled to receive an update on Camden's Reward Strategy, focusing on how the Council is responding to the challenging labour market to remain competitive and mitigate recruitment and retention risks. The report also covered politically restricted positions within the Council. Camden's Reward Strategy is built around five pillars: Fair Pay, Benefits, Culture and Environment, Wellbeing, and Development. The strategy aims to lead local authorities in pay, encourage value-adding behaviours, offer benefits that connect employees to the communities they serve, foster a positive workplace, provide flexibility, and ensure sustainability and environmental minimisation. The report highlighted the Council's commitment to fair pay, including a minimum earnings guarantee of £33,244, and its ongoing efforts to address gender, ethnicity, and disability pay gaps. It also detailed the Council's benefits package, its focus on relational working and leadership development, and its wellbeing initiatives. Finally, the report outlined the framework for politically restricted posts, detailing the categories of 'specified' and 'sensitive' posts and the implications for employees.

Review of Camden Pay and Reward Schemes

A key item on the agenda was a proposal to amend the Council's My Reward Scheme. The report sought approval to remove the 1% payment option, retaining a single 2% reward. This change is part of a broader Pay and Performance Review aimed at ensuring Camden's pay and reward framework remains equitable, transparent, and sustainable. The proposal aims to simplify scheme administration, promote equity and consistency in recognition outcomes, and reinforce a culture of meaningful recognition. Analysis of scheme usage indicated that the 1% award level was used more frequently in certain services and for specific staff groups, leading to uneven patterns of recognition. Retaining a single, higher-value award is intended to strengthen the perceived value of the scheme. The report also referenced wider Pay and Performance Review Phase Two proposals, including amendments to appointment pay discretions and a refreshed performance framework.

Internal Audit Interim Report 2025-26

The committee was to receive an update on the work undertaken by Internal Audit for the 2025-26 Internal Audit Plan, covering the period from 1 April to 31 October 2025. The report aimed to assure the committee that the Council has a sound framework of governance, risk management, and internal control. It detailed the delivery of the audit plan, the performance of the audit function, highlighted areas with high-priority recommendations, and commented on the implementation of audit recommendations. The report included updates on planned reviews, including those related to key financial systems, IT security, and health and safety, as well as follow-up reviews on previous audit recommendations. Assurance opinions ranged from 'Limited' to 'Substantial', with specific high-priority recommendations noted for staff expenses.

Risk Management Strategy and Framework

The committee was presented with the Council's updated Risk Management Strategy and Framework, revised in September 2025. This report aimed to enable the committee to monitor the effective development and operation of risk management. The revised framework incorporated feedback from an external review by Zurich insurers and guidance from the Local Government Association. Key enhancements included the addition of a definition for 'opportunity risk', expanded details on roles and responsibilities, and a clearer articulation of the Camden Management Team's (CMT) responsibility for driving a positive risk culture. The report also outlined planned risk management enhancements for the next year, including risk management training, the development of a detailed risk appetite statement, and a quality assurance programme for risk registers.

Principal Risk Report 2025

This report provided an update on actions being taken to mitigate key principal risks and presented the Council's position as at October 2025. It highlighted that the Council continues to operate in a multifaceted risk context shaped by financial constraints and increasing service demand. Key themes included financial sustainability, recruitment and retention challenges, and meeting the needs of residents. The report detailed that 21 out of 29 principal risks remained outside the agreed target score. One new risk, Special Educational Needs and Disability (SEND) Funding and Provision, had been escalated to the principal risk register. Two risks, Energy Costs and Equal Pay for Equal Value, were de-escalated. A watchlist item for the Coroner's service was also noted due to resourcing pressures. The committee was asked to agree two areas for risk deep dives in 2026.

Risk Deep Dive - Complaints in Property Management

This report provided an overview of the Complaints in Property Management principal risk to enhance the committee's understanding of how this risk is being managed. The report detailed the rising number of complaints, adherence to the Housing Ombudsman's Complaint Handling Code, and the outcomes of a Paragraph 49 investigation by the Housing Ombudsman into the Council's handling of leaks, damp and mould, complaints, and repairs. The report outlined the Housing Ombudsman's recommendations and the significant improvements implemented by the Council, including a new Lessons Learned Lead, a completions team, and the introduction of new IT systems (ROCC and Madetech). The Housing Ombudsman had confirmed satisfaction with the Council's progress and closed its investigation. The report also highlighted the outlook for the next 12 months, acknowledging that complaints are likely to continue, and detailed the Housing Investment Strategy aimed at addressing the root causes of property condition complaints.

Review of the Council's Complaints Policy and Procedure

The committee was asked to approve a revised Council's complaints policy and procedure, last amended in 2023, to align with the amended Housing Ombudsman's Complaint Handling Code. The report also sought approval for the District Management Complaint procedure, which must align with the Council's policy. The amendments were described as generally having a positive impact, making the policy clearer and more accessible, without representing fundamental changes. The revised policies were proposed for immediate publication if approved.

Treasury Management Mid-Year Report 2025-26

This report presented the Council's treasury mid-year position and activity for 2025/26, outlining compliance with regulatory requirements and treasury indicators, and providing an update on the economic context. The Council maintained a prudent borrowing strategy based on internal borrowing, avoiding new external debt and saving an estimated £9.4 million annually. The report detailed the borrowing position, noting an increase in the Capital Financing Requirement (CFR) due to capital programme revisions and IFRS16 accounting adjustments. It also highlighted the Council's investment portfolio, which prioritised security and liquidity, and noted the launch of a Community Municipal Investment (CMI) to fund sustainability initiatives. The report confirmed full compliance with treasury and prudential indicators.

2024/25 Auditor's Annual Report and Pension Fund Audit Completion Report

This report presented the external auditor's (Forvis Mazars) findings for the 2024/25 financial year. It detailed the status of the ongoing audit of the Council's accounts, stating that work was on track for completion by the February 2026 backstop deadline. Due to previous disclaimed opinions, the auditor is undertaking a process of rebuilding assurance on opening balances, meaning an unqualified opinion for 2024/25 is not expected. The report assessed Camden's Value for Money (VFM) arrangements as satisfactory in terms of Financial Sustainability, Governance, and Improving Economy, Efficiency and Effectiveness. The Audit Completion Report for the Pension Fund indicated that an unqualified opinion was anticipated for 2024/25, following a qualified opinion in the previous year.

Work and Training Plan and Action Tracker

This report summarised the committee's work programme and training plans for the remainder of 2025/26. It invited the committee to note and amend the work plan, consider the training programme, and indicate any additional training areas. The report also provided an action tracker detailing progress on actions arising from previous meetings. The committee's terms of reference and CIPFA guidance on evaluating audit committee effectiveness were also attached.

Note: The information provided is based solely on the documents made public for the meeting. It does not reflect any discussions that took place or decisions that were made during the meeting.