The General Purposes and Audit Committee of Bexley Council was scheduled to discuss updated financial regulations and contract procedure rules, alongside the annual auditor's report from Ernst & Young LLP (EY) for the year ended 31 March 2025. The meeting agenda also included provisional audit planning reports for Bexley's 2025/26 accounts and the Bexley Pension Fund's 2025/26 accounts, as well as progress reports on internal audit and counter fraud activities.

Updated Financial Regulations and Contract Procedure Rules

The committee was set to consider updated Financial Regulations and Contract Procedure Rules. These regulations provide the framework for managing the London Borough of Bexley's financial affairs and ensuring good procurement practice. The proposed revisions aim to consolidate regulations into nine major sections, introduce a new Scheme of Delegation for Financial Management, and update the Schedule of Financial Approval Limits. Key changes include strengthened internal control arrangements, particularly around procurement and debt management, and clarification of roles and responsibilities for members and officers. The Contract Procedure Rules have been amended to reflect the impact of the Procurement Act 2023, introducing new duties on transparency, reporting, procurement procedures, direct awards, and contract management. The committee was asked to advise the Council that these revisions are suitable for adoption and to delegate the drafting of any final amendments to the Director of Finance and Corporate Services.

Ernst & Young LLP (EY) Auditor's Annual Report for the Year Ended 31 March 2025

The committee was scheduled to receive Ernst & Young LLP's (EY) Auditor's Annual Report for the year ended 31 March 2025. This report summarises the key issues arising from EY's audit work, with a particular focus on the Council's value for money (VFM) arrangements, assessing whether proper arrangements are in place to secure economy, efficiency, and effectiveness in the use of resources. The report was expected to detail five recommendations for improvement concerning property, plant and equipment, year-end debtor listings, completeness of bank accounts, and disclosures on officer and member remuneration. Officers had reportedly agreed with and intended to implement these recommendations. The report was also expected to confirm that the Council had been issued with a disclaimed opinion on the financial statements and that no matters were identified to report by exception regarding the Council's value for money arrangements.

Ernst & Young LLP (EY) Provisional Audit Planning Report for Bexley's 2025/26 Accounts

The committee was to review EY's provisional audit planning report for Bexley's 2025/26 annual accounts. This plan outlines EY's intended audit strategy, assessing key issues to develop an effective audit. A significant focus was expected to be on the continued work needed to rebuild assurance and move the auditor's opinion from a disclaimer in 2024/25 to a qualified opinion in 2025/26. The audit was scheduled to commence in July 2026, concluding in September, with the final audit opinion planned for November. The report detailed identified audit risks, including fraud risks related to revenue and expenditure recognition, the valuation of land and buildings, and the implementation of IFRS 16 leases.

Ernst & Young LLP (EY) Provisional Audit Planning Report for the Pension Fund's 2025/26 Accounts

A provisional audit planning report from EY concerning the Bexley Pension Fund's 2025/26 accounts was also scheduled for discussion. This report outlines EY's planned audit strategy for the Pension Fund, focusing on key issues such as misstatements due to fraud in investment income journals and the valuation of Level 3 investments. The audit was planned to start in July 2026 and conclude in September, with the final opinion expected in November. The report detailed the audit scope, including the involvement of specialists, and the planned approach, which was to be substantive.

Internal Audit & Counter Fraud Progress Reports Q4 2025/26

The committee was to receive an update on internal audit activity from 19 January to 16 March 2026, covering the finalisation of the 2024/25 plan and the continuation of the 2025/26 plan. This included a summary of issued final reports, such as those on Homelessness Duties: System Security (Civica), Elected Members Lobbying and Financial Interests, and Electoral Registration and Photo ID, with assurance ratings provided. The report also detailed draft reports on areas including Direct Payments, General Ledger, and Council Tax. An update on counter fraud activity from 24 December 2025 to 17 March 2026 was also to be presented, including details of new cases logged and closed, and performance outturns for various counter fraud activities, such as Blue Badge and Housing fraud. The committee was also asked to note and approve the Anti-Fraud, Anti-Bribery, Anti-Money Laundering and Anti-Corruption Policy.

Draft Internal Audit Plan 2026/27

The committee was to review and provide feedback on the draft Internal Audit Plan for 2026/27. This plan is a requirement under the Accounts and Audit Regulations 2015 and is designed to be risk-based, supporting an annual opinion on the effectiveness of governance, risk management, and internal control processes. The plan was developed through consultation with directors and senior officers, considering horizon scanning, risk assessments, and previous audit findings. Topical requirements related to cyber security, third parties, and organisational behaviour were also to be considered. The committee was also asked to approve the Internal Audit Charter for 2026/27.

Counter Fraud Workplan 2024-2027, Revised for 2026/27

The committee was to review and ratify the revised Counter Fraud Workplan for 2024-27. This plan is designed to align with the Fighting Fraud and Corruption Locally Strategy and outlines planned activities for 2026/27. The workplan includes corporate fraud investigations, participation in the National Fraud Initiative (NFI) and Fraud Hub, concessionary travel fraud investigations, and fraud awareness training. It also details plans for tackling homelessness, housing, and No Recourse to Public Funds fraud, as well as initiating financial investigations under the Proceeds of Crime Act. The report highlighted the team's expertise, including achieving the UK's first prosecution for NRPF fraud.

Risk Management Update

An update on how risk is managed at Bexley Council was scheduled for discussion. This included the development of a Risk Management Policy, which aims to provide clarity on risk management processes, including the frequency of risk register reviews and the roles and responsibilities involved. The report also presented a summarised version of the Council's strategic risk register, which is reviewed quarterly by the Corporate Leadership Team (CLT) and the General Purposes and Audit Committee (GPAC).

Debt and Debt Recovery as at 27 January 2026

The committee was to receive a report detailing the main types of debt owed to the council, the overall levels of debt, and the debt recovery processes in place. The report provided a summary of outstanding debt as at January 2026, excluding Council Tax and Business Rates, which showed an increase since July 2025. It detailed specific increases in sundry debt (excluding Adult Social Care), sundry debt within Adult Social Care, Parking, and Commercial Rent, offset by a reduction in Housing Benefit Overpayments. The report also provided a breakdown of Council Tax and Business Rates debt, including year-on-year comparisons and details of legal actions being pursued. Information on Housing Benefit Overpayments, Emergency Accommodation debt (for current and former tenants), Commercial Rent, Traveller Sites, and the Bad Debt Provision was also included. The committee was asked to note the position in relation to debt and debt recovery.