The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council met on Tuesday 17 February 2026. The committee reviewed the council's risk report for the third quarter of 2025/26, noting 184 open risks, including 24 strategic risks, with seven of these deemed high-level. They also discussed a review of the construction industry's quality assurance policies and processes, agreeing to the recommendations with an amendment to reflect that not all actions were within the committee's terms of reference, requiring officers to formulate an implementation plan with referrals to other committees or cabinet as needed.

The committee received updates on internal audit progress, noting that 75% of the annual plan had been delivered by the end of the third quarter of 2025/26, with 87% of high and medium priority actions confirmed as implemented. Significant discussions also took place regarding treasury management, with the committee noting the performance update for Q3 2025/26 and agreeing to recommend the 2026/27 Treasury Management Strategy Statement to Cabinet. Finally, the committee noted the audit findings for the 2024/25 council and pension fund accounts and approved the statements of account and letters of representation.

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 across the directorate risk registers, a slight increase from the previous quarter. Of these, 24 were strategic risks and 160 were service risks. Seven strategic risks were scored at a high level, including STR013 (Cyber security), STR017 (Revenue overspend), STR028 (Affordability of the capital programme), STR021 (Increase in the North London Waste Authority levy), STR037 (Climate change and net zero), STR035 (Equal pay claim), and STR026 (Delivery of corporate plan and service priorities).

Councillor Paul Lemon raised a question regarding the depot and the risk associated with its relocation to the North London Business Park. Craig Miller, Executive Director for Environment, confirmed that this related to the loss of a section of the former Bills site and the arrangement to take land at the business park to mitigate this. He also noted that work was ongoing regarding potential risks associated with another parcel of land under a lease arrangement, with updates expected in several months. Councillor Edith David inquired about the strategic risks not reducing, specifically within the bad debt area, and whether any change was expected. Elaine Clarke, Head of Programmes, Performance and Risk, stated she would need to take this away and speak to the adults' service.

The committee noted the status of the council's strategic and high-level service risks, including the controls and mitigations in place to manage them.

A Review of Construction Industry Quality Assurance Policy and Process

Chris Smith, Assistant Director – Estates and Decarbonisation, introduced a report reviewing the council's construction industry quality assurance policy and process. The report was prompted by difficulties in quality control on council-commissioned construction projects. The research involved contractors, consultants, and internal officers, with recommendations primarily aimed at improving contractor quality control. The report also included recommendations for the council's own procedures, such as bringing in additional technical support for specific projects.

Councillor Arjun Mittra, Chair of the committee, described this as possibly one of the most consequential bits of work that we've done on this committee, linking it to the aftermath of the Grenfell Tower tragedy. He emphasised the vital importance of this work for ensuring safety.

Councillor Paul Lemon asked about resources, specifically regarding the recommendation to appoint a Clerk of Works for larger projects. Chris Smith explained that the intent was not wholesale management of the supply chain but rather overseeing how the contractor manages their own supply chain. He believed one Clerk of Works would likely suffice for significant projects, and they might not be needed for the entire duration. Councillor Lemon also inquired if this would include works on carriageways and footways. Chris Smith confirmed the report did not cover highways project delivery but stated they would share it with that team if similar issues were experienced.

The committee agreed to the recommendations, with a slight amendment to the wording to reflect that not all actions were within the committee's terms of reference, requiring officers to formulate an implementation plan with referrals to other committees or cabinet as needed.

Internal Audit Q3 2025-26 Progress Report

Adam Calmonson, Head of Internal Audit, presented the progress report for the third quarter of 2025/26. The committee was informed that 14 audits had been completed during the quarter, delivering 75% of the annual plan, which was on track. Implementation performance was encouraging, with 87% of actions tested confirmed as implemented, representing a significant improvement. However, the report highlighted the need for this performance to be sustained for lasting improvement.

Two audits received limited assurance:

• Procurement and Supplier Management (Highways): This review identified three high-risk findings: insufficient evidence of procurement rules being followed, weak setup and use of the council's purchasing system (Oracle), and a lack of routine oversight of supplier spend. Actions have been agreed with relevant leads, and lessons learned will be applied more widely across the council.
• Officer Declaration of Interest Review: This audit found a lack of clear ownership and oversight of the process, with no central record of completed staff declarations of interest and instances where senior review was missing. HR has taken ownership of this process, and actions are underway to strengthen oversight.

Councillor Lemon questioned whether the procurement issues were solely a highways matter or a wider procurement issue. It was clarified that while some document retention issues were specific to highways, the monitoring and oversight fell more within procurement. Unfortunately, no procurement officer was present due to annual leave. Craig Miller, Executive Director, Environment, provided some context regarding the procurement issues, noting that they related to a number of small-value contracts and that there was a live criminal investigation centered around elements of this, meaning limited information could be shared. It was also revealed that two members of staff had been dismissed as part of that investigation, which involved potential procurement fraud.

The committee noted the work completed and follow-up outcomes within the Internal Audit Q3 progress report.

Treasury Management Performance Update Q3 2025/26

Nicholas Stylianou, Head of Finance and Chief Accountant, presented the treasury management update. As of 1 December 2025, investments stood at £58.073 million, and loan debt had risen to £1.228 billion. The borrowing requirement for the capital program in 2025/26 was £190.1 million. Borrowing taken out during the quarter amounted to £33.82 million at an average rate of 4.46%, which was within forecast levels. The report highlighted that the council's cash flow model is now operational and being used for borrowing decisions. Financial advisors MUFG expect PWLB rates to decline, with 50-year borrowing still considered high. MUFG continued to advise borrowing short maturities, around two years, while mixing this with 18-month to two-and-a-half-year terms to avoid all loans maturing simultaneously.

Councillor David inquired about the £1.226 billion borrowing figure, asking if it was solely an accumulation of capital programs or included other elements like house building that generate a return. Nicholas Stylianou explained it was a mixture, including historic borrowing for the capital program, HRA borrowing, and regeneration schemes, many of which have assets generating income. An action was agreed to provide a breakdown of what the borrowing was for at the next meeting.

The committee noted the Treasury Management Performance Update and the updates to the Treasury team's strategic priorities.

Treasury Management Strategy Statement (TMSS) 2026/27

Abigail Hammond, Finance Manager, Treasury, presented the TMSS for 2026/27. The report outlined the council's approach to borrowing, investments, and cash flows for the upcoming financial year, including updates on the capital expenditure and funding, minimum revenue provision policy statement, investment and borrowing strategies, and prudential and treasury indicators.

The committee agreed to recommend the 2026/27 Treasury Management Strategy Statement to Cabinet.

2024/25 Auditor's Annual Report

The committee received the 2024/25 Auditor's Annual Report. The report noted that while there had been progress in completing audits compared to the previous year, key findings remained significant. Issues were raised regarding the ability to produce accounts on time, with a delay in production for the 2024/25 accounts. The implementation of IFRS 16 leases also presented challenges, with errors identified in disclosures requiring substantial redrafting. The report also highlighted issues around payroll due to a system migration and work needed on debtors and creditors listings.

The auditors noted that statutory deadlines for accounts are moving forward, with a November deadline expected from 2027. They anticipate finishing the audit by November 2026.

Councillor Lemon, noting the improvement in external audit timelines compared to previous years, expressed reassurance that the issues were primarily related to data completeness rather than more problematic disputes.

The committee noted the recommendations and provided comments on the 2024/25 annual auditor's report.

2024/25 External Audit Findings Report

The committee received the external audit findings report for the financial year 2024/25. The auditors reported that four adjustments to financial statements had been made by management, and one unadjusted statement was identified. Five new recommendations were made, and follow-up work on previous recommendations was also conducted. A separate IT findings report identified six recommendations regarding IT controls.

The auditors highlighted that while progress had been made in concluding more areas this year, several key findings remained significant. These included the delay in producing the annual accounts and errors within the disclosures made by the council concerning IFRS 16 leases. Issues around payroll due to a system migration and the need to cleanse data for debtors and creditors listings were also noted.

The auditors stressed the importance of meeting the statutory deadline for accounts, which is moving forward. They also noted that the council had made progress in the pension fund audit, enabling a move away from a disclaimed opinion for the following year. However, challenges remained regarding the accuracy of membership data and the triennial valuation.

The committee noted the audit findings for the 2024/25 council and pension fund accounts and approved the statements of account and letters of representation.

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

Councillor Arjun Mittra, Chair of the committee, noted that this was his last meeting after 14 years and 55 audit committee meetings. He expressed his enjoyment of the committee's work and thanked officers and members for their service and support. He highlighted the importance of the committee's role as guard dogs for the council. Councillor Rohit Grover, also leaving the council and a former chair of the committee, was thanked for his contributions. Councillor Lemon reciprocated the thanks to Councillor Mittra, praising his fair, inclusive, and rigorous chairmanship.