The Audit and Corporate Governance Committee of Camden Council met on Thursday 05 February 2026 to review the Council's risk management strategies, financial statements, and governance arrangements. Key decisions included noting the progress on climate and cyber security risk management, approving the Annual Governance Statement for 2024/25, and approving the 2024/25 Statement of Accounts, albeit with a disclaimed audit opinion due to prior year issues.

Risk Deep Dive - Climate

The committee received an overview of the Council's management of climate-related risks. The report detailed two key elements of climate risk: the Council's ambition to achieve a zero-carbon borough by 2030 and the preparedness for future climate hazards such as increased summer temperatures and intense rainfall. The Climate Action Plan 2026-30, which replaced previous plans, governs this risk. The report highlighted that borough emissions have fallen by 52% since 2005, and emissions from the Council's own estate (excluding housing) are 64.7% below the 2010 baseline. Significant investment is being made in energy efficiency projects across the Council's estate and in Council housing. For climate preparedness, the Council has one Climate Resilience Officer and has made good progress in building resilience, with 96% of actions from the Climate Adaptation and Resilience Plan delivered or underway. Examples of work include heat risk mitigation through information events and an Adverse Weather Plan, and flood risk management through sustainable drainage systems (SuDS) and updated multi-agency flood plans. The outlook for the next 12 months acknowledges the growing exposure to climate risk, particularly for vulnerable populations, and the significant investment required for adaptation.

Risk Deep Dive - Cyber and Data Security

The committee was presented with an overview of Camden's cyber security capabilities and how this principal risk is being managed. The report highlighted the intensifying cyber security threat landscape facing the UK public sector, with local government remaining a high-value target. Recent incidents in London boroughs have demonstrated the prolonged operational impact of cyber attacks. Camden has invested significantly in its cyber security capability since April 2021, with a dedicated team of nine professionals. The Council actively collaborates with peers through Information Security for London (ISfL) to establish a consistent cyber security baseline. A strong culture of information security is being fostered through regular phishing simulations and training, with targeted technical controls implemented in high-risk social care environments. The Council manages cyber security governance and risk through a structured Information Security Management System (ISMS) and operates a regular programme of independent technical testing. Managing supply chain risks is a significant area of activity, with 80 supplier assessments completed in 2025. Business continuity and incident management plans have been reviewed, and a formal cyber incident response plan is tested every six months. The outlook for the next 12 months indicates a continued focus on strengthening resilience and reducing exposure, acknowledging that cyber risk cannot be eliminated.

Annual Governance Statement 2024/25

The committee was asked to approve the Annual Governance Statement (AGS) for 2024/25. The statement assesses the Council's performance across all its activities and describes its governance arrangements, specific arrangements for the 2024/25 financial year, the review process for the effectiveness of the governance framework, and proposed actions for any significant governance issues identified. The report noted that while the Council received a disclaimed audit opinion on its 2023/24 Statement of Accounts due to time limitations, the external auditor found no significant weaknesses in the Council's Value for Money arrangements. The Head of Internal Audit provided a 'Moderate Assurance' opinion on the Council's internal control framework, indicating adequate overall arrangements with some improvement required. Two significant governance issues were identified through Management Self-Assessment: overspends in the HRA and General Fund due to rising homelessness cases, and increases in Temporary Accommodation rent arrears and associated bad debt provision. The committee was asked to approve the AGS and delegate authority to the Director of Finance for any final minor amendments before publication.

2024-25 Statement of Accounts and Audit Completion Report

The committee was presented with the draft Audit Completion Report from the external auditor, Forvis Mazars, and the final 2024/25 Statement of Accounts for approval. Forvis Mazars has substantially completed its audit work but will be issuing a disclaimed audit opinion on the Council's accounts for 2024/25 due to insufficient assurance on opening balances following prior disclaimed years. This is in line with guidance from the Ministry of Housing, Communities and Local Government, the National Audit Office, and the Financial Reporting Council, which states that local authorities should not be adversely judged for receiving such opinions due to statutory backstop deadlines. The report detailed amendments identified to the draft accounts, including misclassifications and over-reporting of income and expenditure, with no impact on the Council's bottom line. The committee was asked to note the draft completion report, approve the 2024/25 Statement of Accounts, and authorise the Director of Finance and the Chair to approve any remaining amendments and sign the accounts respectively.

Camden Learning - Annual Accounts 2024/25

The committee received the audited 2024/25 Camden Learning Directors' Annual Report and Financial Statements. As Camden Learning is a separate legal entity, these accounts do not form part of the Council's own accounts. The report was presented for information only, with the committee able to offer comments or make recommendations for future actions. The company reported a pre-tax surplus of £178,000 for the period, which was higher than projected due to savings made during the year. The directors considered the financial performance and position of the company to be satisfactory.

Pay Policy Statement 2026/27

The committee was asked to recommend to Council the proposed Pay Policy Statement for 2026/27. The statement summarises the pay accountability requirements under the Localism Act 2011. The proposed statement remains largely unchanged from 2025/26, with updated figures for the London Living Wage and Camden's Minimum Earnings Guarantee. Key figures updated include the London Living Wage (£14.80 per hour), Camden's Minimum Earnings Guarantee (£33,244), and the pay ratio between the Chief Executive and the lowest paid employee (6.9:1). The report noted that national pay awards for 2026/27 were yet to be agreed, and delegated authority was sought for the Director of People and Inclusion to update the policy once confirmed.

Members' Allowances Scheme 2026/27

The committee was invited to recommend the Members' Allowances Scheme for the 2026/27 financial year to Council. The proposed scheme includes an uplift of 3.2% to the basic allowance, bringing it to £16,551.27, in line with the national pay award for officers. All other allowances, except the Independent Persons' Allowance, will also be uplifted by 3.2%. The Independent Persons' Allowance is proposed to increase by 10% to £1,292.50, recognising the responsibility and skill required for the role. The overall cost of the recommended uplift is £49,000 for 2026/27, to be met from the Council's General Fund.

Work and Training Plan and Action Tracker

The committee reviewed its work programme and training plans for the remainder of the 2025/26 municipal year and noted the action tracker for actions arising from previous meetings. Members requested that information on the local government audit backlog and backstop arrangements be included in the induction material for new committee members, and that a training session on reading and interpreting accounts be added to the induction programme. The committee also noted that a survey on its effectiveness would be circulated. The work plan for 2026/27 was also noted, with risk deep dives on SEND and school sufficiency, and cyber and data security to be added.