The Audit and Corporate Governance Committee of Camden Council was scheduled to discuss a range of important financial and governance matters. Key topics included deep dives into climate-related risks and cyber and data security, alongside the review and approval of the Annual Governance Statement for 2024/25 and the 2024-25 Statement of Accounts. The committee was also set to consider the Pay Policy Statement for 2026/27 and recommend the Members' Allowances Scheme for the same year. Finally, the committee's work and training plan for the upcoming year was to be reviewed, along with an update on actions from previous meetings.

Risk Deep Dive - Climate

The committee was scheduled to receive a report providing an overview of the climate-related principal risk to enhance understanding of how this risk is being managed. The purpose of this deep dive was to enable the committee to fulfil its duties regarding the monitoring of the Council's effective operation of risk management. The report highlighted that the climate risk has two key elements: the realisation of the Council's ambition to support a zero-carbon borough by 2030, and Camden's preparedness for future climate hazards such as increased summer temperatures and intense rainfall. The report noted that the zero-carbon risk is governed by the Cabinet-approved Climate Action Plan 2026-30, which replaced previous plans. It also acknowledged the significant investment required for decarbonisation, with an estimated funding gap exceeding £500 million. Regarding preparedness for climate risk, the report detailed primary hazards facing Camden, including flooding and heatwaves, and identified vulnerable populations such as the elderly, children, those with disabilities, and those living in poverty. The report also referenced national concerns about inadequate UK preparations for climate change, citing a Climate Change Committee report that stated, The UK's preparations for climate change are inadequate.

Risk Deep Dive - Cyber and Data Security

A report was scheduled to provide members with an overview of the cyber and data security principal risk to enhance their understanding of how this risk is being managed. The purpose of this deep dive was to enable the committee to fulfil its duties regarding the monitoring of the Council's effective operation of risk management. The report highlighted the intensifying cyber security risk environment facing the UK public sector, with local government remaining a high-value target. It noted the sophistication and resourcefulness of threat actors and the amplified impact of attacks due to interdependencies created by shared platforms and third-party suppliers. Camden's cyber risk was assessed as having a likelihood of a significant incident scored at 3 out of 5, with an estimated probability of around 20%, and an impact scored at 5 out of 5, reflecting potential severe consequences. The report detailed Camden's cyber security capability, including investment in a dedicated team and the operation of an Information Security Management System (ISMS). It also highlighted collaboration with peers across London through membership of Information Security for London (ISfL) to achieve a more consistent cyber security baseline.

Annual Governance Statement 2024/25

The committee was presented with the Annual Governance Statement (AGS) for 2024/25 for approval. This statement assesses the Council's performance across all its activities and describes its governance arrangements, specific arrangements for the financial year, processes for reviewing effectiveness, 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 insufficient time to complete the audit, 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.

2024-25 Statement of Accounts and Audit Completion Report

This report was scheduled to present the Audit Completion Report from the external auditor, Forvis Mazars, on the Council's 2024/25 accounts, along with the final 2024/25 Statement of Accounts for approval. The report indicated that despite a full audit of the 2024/25 accounts, Forvis Mazars would be issuing a disclaimed audit opinion due to insufficient assurance over opening balances following a prior disclaimed year. This was attributed to the backstop legislation and the timeframes for rebuilding assurance. 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. Forvis Mazars also provided recommendations to strengthen internal controls or enhance business efficiency, which management had responded to. The committee was asked to note the draft Audit Completion Report, approve the Statement of Accounts, and authorise the Director of Finance to make any final minor amendments.

Camden Learning - Annual Accounts 2024/25

The committee was scheduled to receive the audited 2024/25 Camden Learning Directors' Annual Report and Financial Statements. Camden Learning Limited is a private company limited by guarantee, with the Council holding a 19% stake. The report noted that Camden Learning is commissioned by the Council to deliver school improvement and support services, with most of its income derived from these services and purchases by Camden schools. The company's governance is overseen by a board of directors, and its financial results for the period showed a pre-tax surplus of £178,000. The report highlighted that all Camden schools are members of the partnership, and the Council plays a leading role in establishing it. The company's aim is to drive improvement and achievement for all, based on the pillars of excellence and equity.

Pay Policy Statement 2026/27

The committee was asked to review and recommend to Council the proposed Pay Policy Statement for 2026/27. This statement summarises the pay accountability requirements under the Localism Act 2011. The report indicated that the statement remains largely unchanged from the previous year, with updated figures for the London Living Wage and Camden's Minimum Earnings Guarantee. Key figures updated included 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 also 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 these were confirmed.

Members' Allowances Scheme 2026/27

The committee was invited to recommend to Council the Members' Allowances Scheme for the 2026/27 financial year. The report noted that local authorities are legally required to agree such a scheme annually and must have regard to recommendations from an independent remuneration panel. Camden uses the Independent Panel on the Remuneration of Councillors in London (IRP), whose 2023 report was attached. The report indicated that Camden's member allowances have consistently remained below the IRP's recommendations, with a long-term aim to align them. The proposed scheme includes an uplift of 3.2% to the basic allowance, bringing it to £16,551.27, and a 10% increase to the Independent Persons' allowance.

Work and Training Plan and Action Tracker

The committee was presented with a summary of plans for its work programme and training for the remainder of the 2025/26 municipal year. This included noting the work plan, agreeing any amendments, and considering the training programme. The report highlighted that the work plan follows a similar pattern to previous years, incorporating reports required by terms of reference, regulations, or CIPFA guidance, as well as previously requested reports. A suite of refresher training on key areas such as risk management, accounts, external audit, internal audit, anti-fraud, and treasury management was scheduled to take place every two years, with a full induction programme for new members. The committee was asked to indicate if there were any additional training areas members wished to explore. An action tracker detailing progress on actions arising from previous meetings was also provided.