The Audit Committee of Hammersmith and Fulham Council met on Monday 16 March 2026 to review the council's external audit plan for 2025/26, receive an update on internal audit progress, and discuss the council's risk management framework. Key decisions included noting the external audit plan and receiving updates on internal audit findings and future plans.

External Audit Plan and Audit Risk Assessment 2025/26

The committee received the external audit plan and risk assessment for the financial year 2025/26, prepared by the council's external auditor, Grant Thornton UK LLP. This plan outlines the scope and timing of the statutory audit, identifying significant risks such as management override of controls, valuation of pension assets and liabilities, and the valuation of land and buildings. The audit fee for the council is set at £483,242. The report also detailed the approach to materiality, with planning materiality set at £18.4m, and noted that no significant weaknesses in value for money arrangements had been identified at this stage. The committee was asked to note the audit plan and the council's responses to the auditor's risk assessment queries.

Internal Audit Progress Report (April 2025 to February 2026)

This report summarised the work of Internal Audit for the period, noting that six audits had been finalised, with five receiving positive assurance opinions. Audits of Housing Responsive Repairs and Housing Gas Safety both received substantial assurance, indicating a sound system of control. The audit of St Mary's RC Primary School, however, resulted in limited assurance, with two high and ten medium priority recommendations for improvement, particularly concerning the bank reconciliation process and tracking income from lettings. The report also detailed the status of ongoing audits and those removed from the plan, with explanations for the changes. The committee was asked to note and comment on the report.

Internal Audit Plan 2026/27

The committee reviewed the draft Internal Audit Plan for 2026/27, which is structured around a Strategic Audit Plan covering significant, persistent risks over a three-year period. The annual plan is developed using a 3 plus 9-month approach, allowing for flexibility in response to emerging risks. The draft plan for the first quarter of 2026/27 includes audits of schools, public health contract monitoring, adult placements, and business continuity. Potential audits for subsequent quarters cover areas such as mental health capacity, children's services, housing damp and mould, corporate health and safety, and payroll/HR. The committee was asked to comment on the proposed audit work and consider specific audits for inclusion.

Risk Management Update

This report provided an update on risk management across the council, highlighting the importance of identifying, managing, and communicating risks to safeguard services and residents. The Corporate Risk Register, reviewed by the Strategic Leadership Team (SLT) in March 2026, was presented. While risk mitigations were updated, no changes in risk scores were proposed, reflecting the long-term nature of many identified risks. Key risks discussed included non-compliance with procurement legislation (CR1), IT system compromise due to cyber-attacks (CR3), and failure to identify and address fraud (CR8). The report also noted ongoing monitoring of the situation in the Middle East and its potential impact on the council. The committee was asked to review and comment on the report.