The Audit and Governance Committee of Waltham Forest Council met on Wednesday, 18 February 2026, to review a range of financial and governance matters. Key decisions included the approval of the 2025-26 Internal Audit Plan, noting the progress made in delivering audits, and the adoption of updated Anti-Fraud, Bribery, and Money Laundering policies. The committee also reviewed the 2024-25 External Audit update, the Draft Statement of Accounts, and the Annual Treasury Management Review for 2025-26.

External Audit Update and Delegated Authority

The committee received an update on the external audit for the 2024-25 financial year. Mohammed Ahmed, Chief Accountant, presented the report, highlighting that the Statement of Accounts needed to be signed by 27 February 2026. The audit findings to date were detailed in Appendix 1, with further findings expected from sample testing. The committee was asked to delegate authority to the Strategic Director of Resources and the Chair of the Audit and Governance Committee to approve and sign the final accounts ahead of the statutory deadline. The committee noted the report and recommended that the Council approve the delegation.

Accounting Policies

The committee considered proposed updates to the Council's accounting policies for 2024-25 and 2025-26. A key amendment to section 2.15, Property, Plant and Equipment, was to recognise interest costs incurred on qualifying assets during their development, acquisition, or construction phase, in line with IAS 23 Borrowing Costs and CIPFA Code of Practice. Previously, such interest costs had not been capitalised. The committee recommended that the Council approve the updated accounting policy regarding the capitalisation of interest costs from 2024-25 onwards and noted other updates to sections concerning Council Tax and non-domestic rates, events after the reporting period, inventories, and highways infrastructure assets.

Annual Review from the Local Government & Social Care Ombudsman (LGSCO)

The committee reviewed the annual report from the Local Government & Social Care Ombudsman (LGSCO) for 2024-25. Jo Tanner, Interim Head of Complaints, presented the findings, which included statistical information on complaints and enquiries received by the LGSCO concerning Waltham Forest Council. The report highlighted that 175 complaints and enquiries were received, with 30 investigations opened. Of these, 21 were upheld, representing a 70% uphold rate, which was noted as an improvement on the previous year. However, the LGSCO's annual review letter raised concerns about the Council's handling of complaints, noting delays in responding to enquiries and late implementation of recommendations. The committee also considered complaints falling under the jurisdiction of the Housing Ombudsman Service (HOS), noting 38 determinations were made with a maladministration rate of 73.3%. Severe maladministration findings were reported in relation to complaints handling and property condition. The committee noted the report and was asked to review the information and make recommendations as required.

Treasury Management Strategy, Minimum Revenue Provision Policy Statement, and Annual Investment Strategy 2026-27

The committee considered the proposed Treasury Management Strategy, Minimum Revenue Provision (MRP) Policy Statement, and Annual Investment Strategy for 2026-27. Debbie Drew, Assistant Director of Pensions & Treasury, and Zainab Roberts, Treasury Manager, presented the report. The strategy outlined the Council's approach to managing its borrowing, investments, and cash flows, prioritising security, liquidity, and yield. The report detailed the Capital Financing Requirement (CFR) forecast, borrowing strategy, and prudential indicators, indicating that financing costs were projected to remain manageable within the General Fund and Housing Revenue Account (HRA). The investment strategy maintained a low-risk approach, focusing on security and liquidity. The committee was asked to recommend that Full Council approve the Treasury Management Strategy Statement, Annual Investment Strategy, and MRP Policy for 2026-27, along with the Prudential Indicators.

Risk Management Update & Strategic Risk Register Quarter 3 2025/26

Andrea Nitschke, Risk and Insurance Manager, presented the Risk Management Update and the Strategic Risk Register for Quarter 3 2025/26. The report detailed 13 strategic risks, with one identified as a 'red' residual risk: SRFG0001, 'Breakdown in financial strategy and resilience', where the inherent likelihood rating had increased. The committee noted that SRFG0002, 'Failure of the Council to adequately respond to the Climate Emergency', had seen its residual likelihood rating reduce from 'almost certain' to 'probable'. Two risks, SRFH0017 ('Failure to achieve a 'Good' rating following a Care Quality Commission (CQC) assessment') and SRFH0019 ('Residents do not receive the required community equipment to meet their needs'), had been de-escalated from the corporate risk register. The committee was asked to note the current Corporate Risk Register and the updates contained within the report.

Progress Update on Delivering the 2025-26 Internal Audit Plan

Gemma Young, Corporate Director of Internal Audit, Anti-Fraud, Revenues & Benefits, provided an update on the progress of the 2025-26 Internal Audit Plan. The report indicated that 31% of the plan was at draft report stage or finalised, 28% was in fieldwork, and 23% had been booked or was being scoped. A small proportion (3%) had been deferred, and 15% cancelled. The report detailed the outcomes of finalised internal audit reports, including one high-risk finding related to 'Contract Management'. Analysis of five assurance reviews completed identified common root causes such as inadequate documentation, insufficient oversight, and unclear roles and responsibilities. The committee noted the progress and the findings from the completed audits.

Corporate Anti-Fraud Team Progress Update Report

The committee received an update on the work of the Corporate Anti-Fraud Team (CAFT) for the period 1 April 2025 to 31 December 2025. Gemma Young introduced the report, highlighting key achievements including the recovery of 54 properties, the prevention of 7 fraudulent Right to Buy applications, and total cashable savings of £61,250.63. The report also detailed activity in housing investigations, Right to Buy fraud, Council Tax Single Person Discount reviews, and joint working with partners like the DWP and the London Fraud Hub. The committee noted the progress of the CAFT and the updated Anti-Fraud Strategy 2026-30.

Review of Corporate Anti-Fraud Team Policies

The committee reviewed proposed updates to the Corporate Anti-Fraud Team's policies, including the Anti-Bribery, Anti-Money Laundering, Anti-Fraud and Corruption, Anti-Fraud and Corruption Response Plan, and Prosecution policies. The report detailed minor amendments made to reflect changes in personnel and legislative updates. The committee was asked to note the report and approve the updated policies.

The Regulation of Investigatory Powers Act 2000 (RIPA)

Mark Hynes, Corporate Director of Governance and Law, presented the report on the Regulation of Investigatory Powers Act 2000 (RIPA). The report stated that there had been no RIPA or non-RIPA authorisation applications submitted during the calendar year 2025, consistent with the previous year. The current RIPA policy, last reviewed in February 2023, had been updated to reflect changes in personnel and recommendations from recent training. The committee was asked to note the information and the updated RIPA Policy and Procedures Manual.

Rationalisation of Committees

The committee considered a report proposing minor changes to the Council's Scrutiny Committee structure. Rianna Terry, Assistant Director of Leadership and Democracy, explained that the changes aimed to rationalise committees, align them with the Council's current structure, and consolidate scrutiny of budget and performance reports within the Scrutiny Coordinating Committee. The key proposal was to merge the Budget Scrutiny Committee with the Scrutiny Coordinating Committee from May 2026. The committee was asked to recommend this merger to Full Council and delegate authority to the Corporate Director of Governance and Law to make necessary amendments to the Constitution. The committee also noted that the Audit and Governance Committee would appoint its full membership of six members from May 2026.

The meeting was held on Wednesday, 18 February 2026, at Waltham Forest Town Hall. Councillor Marie Pye chaired the meeting, with Councillor Steve Terry serving as Vice-Chair. The meeting was attended by various councillors and officers, including Linzi Roberts-Egan, Chief Executive, and Ursula Gamble, Director of Financial Services. The meeting concluded at 7:55 pm.