The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council met on Tuesday 17 February 2026 to review the council's risk management, construction quality assurance, internal audit progress, treasury management performance, and external audit findings. Key decisions included the approval of recommendations to enhance construction quality assurance processes and the noting of treasury management performance updates and strategic priorities.

Quarterly Risks Report (Q3 2025/26)

The committee received an overview of the council's risks for the third quarter of 2025/26. There were 184 open risks, comprising 24 strategic risks and 160 service risks. Of the strategic risks, seven were scored at a high level, and of the service risks, 17 were scored at a high level. No high-level strategic risks were reduced during the quarter, and two service risks were reduced from high-level. The report highlighted ongoing concerns regarding revenue overspend, the affordability of the capital programme, and the increase in the North London Waste Authority (NLWA) levy. The equal pay claim submitted by trade unions GMB and Unison was also noted as a high-level strategic risk.

A Review of Construction Industry Quality Assurance Policy and Process

The committee discussed a report reviewing the council's construction industry quality assurance policy and process, prompted by concerns over quality control in council-commissioned projects. The report highlighted systemic issues in the construction sector, including failures in fire safety, workmanship, and compliance gaps, leading to significant legal and financial impacts on clients. Recommendations were made to implement structured, independent Quality Assurance (QA) audits for all major projects, mandate material traceability in procurement, strengthen subcontractor prequalification processes, and consider appointing client-side Clerks of Works. The committee agreed to these recommendations, acknowledging the need for enhanced oversight to prevent future defects and ensure compliance with the Building Safety Act 2022.¹

Internal Audit Q3 2025-26 Progress Report

The committee received an update on the progress of the Internal Audit plan for Q3 2025/26. Fourteen audits were completed during the quarter, bringing the total to 26 for the year, achieving 75% of the annual plan. Two audits received 'Limited' assurance: one concerning procurement and supplier management in Highways, and the other regarding officer declarations of interest. The procurement audit identified significant control weaknesses in pre-Oracle procurement and supplier management, and gaps in the use and oversight of Oracle functionality. The declaration of interest audit found a lack of clear ownership and oversight, with no central record of completed forms and instances of undeclared interests. Overall, 87% of high and medium priority actions followed up in Q3 were confirmed as implemented, which is below the target of 90%, indicating a need for sustained improvement.

Treasury Management Performance Update Q3 2025/26

The committee received an update on the council's treasury management performance for the third quarter of 2025/26. Investment balances stood at £58.073 million, with the portfolio yielding an average of 4.19%, outperforming the 7-day SONIA benchmark. Loan debt totalled £1.228 billion. Borrowing during the quarter included £33.82 million from the Public Works Loan Board (PWLB) at an average interest rate of 4.46% and £4.626 million from the Mayor of London Energy Efficiency Fund (MEEF) at 3.25%. The report noted that while the economic environment remains uncertain, interest rates are forecast to ease, and the council's financial advisors, MUFG, recommend maintaining borrowing within the short-to-medium term. The Treasury team's strategic priorities include improving data collection for cashflow forecasting, developing a strategy for refinancing external borrowing, managing working capital, and enhancing reporting.

Treasury Management Strategy Statement (TMSS) 2026/27

The committee reviewed the proposed Treasury Management Strategy Statement (TMSS) for 2026/27. This statement outlines the council's approach to borrowing, investments, and cash flows for the upcoming financial year. It includes updated capital expenditure and funding plans, the Minimum Revenue Provision (MRP) Policy Statement, borrowing and investment strategies, and prudential and treasury indicators. The committee agreed to recommend the TMSS to Cabinet for approval. The strategy emphasizes prudent borrowing, with a focus on matching borrowing terms to capital activity and considering the yield curve and interest rate forecasts. The MRP policy continues to use the asset life method for unsupported borrowing and will maintain a prudent approach to loans to third parties.

2024/25 Auditor's Annual Report

The committee received the auditor's annual report for 2024/25. The report highlighted ongoing concerns regarding financial sustainability, noting the council's increased need for Exceptional Financial Support (EFS). Issues were also raised concerning the governance of subsidiaries and joint venture partnerships, with recommendations made for improvement. The report also reiterated key recommendations regarding the need to improve procurement processes. The auditors indicated that financial sustainability would be a main area of focus for their value for money work in 2025/26.

2024/25 External Audit Findings Report

The committee was presented with the external audit findings for the financial year 2024/25. The auditors identified four adjustments to the financial statements, which have been amended by management, and one unadjusted misstatement. Five new recommendations were made, and follow-up work was performed on previous recommendations. The report highlighted significant findings including delays in the production of accounts and errors within the disclosures made under IFRS 16 leases. Issues were also identified around payroll reporting due to a system migration and work is needed on debtors and creditors listings. The auditors noted positive signs and green shoots but stressed the importance of meeting statutory deadlines, particularly the upcoming November deadline for accounts from 2027 onwards. Concerns were raised about the ongoing issue of pensions data, which has been flagged since 2018.

Committee Forward Work Programme

The committee noted the forward work programme for 2025/26 and the draft programme for 2026/27.

Any item(s) that the Chair decides are urgent

The Chair, Councillor Arjun Mittra, noted that this was his last meeting after 14 years on the committee and 55 meetings. He expressed his gratitude to officers and members for their service and support, highlighting the committee's important role as guard dogs for the council. Councillor Rohit Grover, also leaving the council, was acknowledged for his contributions as a former chair. Councillor Paul Lemon reciprocated the thanks, commending Councillor Mittra's fair and inclusive chairmanship and his legacy in improving the external audit process.