The Audit and Risk Management Panel met on Tuesday 17 March 2026 to review the 2024/25 Annual Audit Report, discuss the results of the 2025/26 Internal Quality Assessment for the internal audit function, and consider the draft Audit and Risk Management Panel Annual Report for 2025/26. Key decisions included noting the 2024/25 Annual Audit Report, which received an unqualified audit opinion, and approving the 2026/27 Internal Audit Charter and noting the associated strategy.

2024-2025 Annual Audit Report

The Panel noted the 2024/25 Annual Audit Report, which was prepared by external auditors Forvis Mazars. The report confirmed an unqualified audit opinion for both the Council and the Royal Borough of Greenwich Pension Fund statements of accounts. The auditors highlighted that the Council's financial statements were prepared in accordance with the 2024/25 Code of Practice on Local Authority Accounting, and that the Council provided good quality draft accounts and working papers.

However, the report also identified a significant weakness in the Council's arrangements for financial sustainability, noting the continued reliance on reserves to bridge budget gaps and the non-delivery of planned savings. The report stated, From examining the proposed savings, it is unclear how the Council will maintain an adequate level of reserves if they continue to draw down them and do not deliver sufficient savings and transformation of services. ¹

In terms of governance, the auditors found that the Council had appropriate arrangements in place. For improving economy, efficiency, and effectiveness, a concern was noted regarding compliance with the Regulator of Social Housing requirements, although it was subsequently confirmed that the regulatory notice had been lifted. The report also detailed that the Council's gross external debt as a percentage of its operational boundary remained within limits, indicating prudent financial management in this area. The 2024/25 Annual Audit Report is scheduled to be considered by Full Council on 18 March 2026.

Global Internal Audit Standards - 2025/26 Internal Quality Assessment Result and ECCTA Action Plan

The Panel noted the results of the 2025/26 Internal Quality Assessment (IQA) of the internal audit function, which indicated that the function is making good-faith efforts to conform with the Global Internal Audit Standards (GIAS) but falls short of achieving some major objectives. Improvement actions have been identified, including developing a professional development plan for staff, preparing for an external quality assessment, and updating the audit universe and assurance map.

Additionally, the Panel noted the action plan for implementing requirements of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). This plan addresses the new corporate offence of Failure to Prevent Fraud (FTPF) and outlines steps to create a unified Anti-Fraud Framework based on six principles: top-level commitment, risk assessment, proportionate prevention procedures and due diligence, communication, and monitoring and review.

2026/27 Internal Audit Charter and Internal Audit Strategy

The Panel noted and approved the 2026/27 Internal Audit Charter. This charter, a mandatory element of the GIAS, outlines the internal audit function's purpose, mandate, organisational position, and reporting responsibilities. It confirms the function's commitment to adhering to the GIAS and its independence, reporting functionally to the Audit & Risk Management Panel and administratively to the Director of Finance (Deputy s151 Officer).

The Panel also noted the Internal Audit Strategy for 2026/27, which details the function's vision to be a trusted partner providing high-quality assurance and advisory services. The strategy includes key objectives such as supporting the Council's objectives through risk-based assurance, offering proactive advice, delivering an annual Internal Audit Opinion, and maintaining compliance with GIAS. Supporting initiatives include implementing audit-specific IT software and reviewing/revising audit templates and methodologies.

Draft Audit and Risk Management Panel 2025/26 Annual Report

The Panel noted the draft Audit and Risk Management Panel 2025/26 Annual Report. This report summarises the Panel's work throughout the year, highlighting its role in overseeing governance, risk, and control arrangements. It confirms that the Panel has fulfilled its roles and responsibilities as set out in its Terms of Reference, with members demonstrating commitment and robust challenge. The report will be submitted to Full Council.