The Audit Committee of Hackney Council met on Thursday 16 April 2026 to review a range of reports concerning the Council's financial health, risk management, and internal audit functions. Key decisions included the approval of recommendations from the Audit Committee's Annual Report, the Whistleblowing Annual Report, and the Internal Audit Annual Plan for 2026/27.

Audit Committee Annual Report 2025/26

The Audit Committee reviewed its own Annual Report for 2025/26, which detailed the committee's activities and achievements in overseeing the Council's governance, control, risk management, and financial reporting. The report highlighted the committee's role in scrutinising budget management, noting the challenging financial position but welcoming the multi-year funding settlement which provided greater certainty for financial planning. The committee also reviewed the external auditor's unqualified opinion on the 2024/25 accounts, confirming a true and fair view of the Council's financial position. The report noted the addition of two independent members to the committee, enhancing its independent scrutiny.

Whistleblowing Annual Report 2025/26

The committee considered the Whistleblowing Annual Report for 2025/26, which provided a statistical update on cases received. The report indicated that whistleblowing referrals remain a low percentage of overall referrals to the Audit Investigation Team, but highlighted their importance in promoting an open culture. The committee approved the updated Whistleblowing Policy, which aims to encourage staff to report concerns in good faith without fear of reprisal. The policy covers a range of issues including fraud, corruption, health and safety dangers, and breaches of legal obligations.

Internal Audit Annual Plan 2026/27

The committee reviewed and approved the proposed Internal Audit Annual Plan for 2026/27. This plan outlines the audit service's operational approach, working methods, and specific audits to be undertaken, focusing on areas of highest risk to the Council. The plan is designed to provide independent assurance on the adequacy of the Council's internal control framework, risk management, and governance processes, in line with Global Internal Auditing Standards (GIAS). The committee was assured that the proposed resources are sufficient to deliver the plan and provide necessary assurance.

Audit and Anti-Fraud Progress Report

The committee reviewed the progress and performance of the Audit & Anti-Fraud Service up to 31 March 2026. The report detailed work undertaken, progress on implementing audit recommendations, and statistical information on investigations. The Anti-Fraud Teams reported significant estimated savings of £846,000 from investigations into tenancy fraud, No Recourse to Public Funds (NRPF) cases, and parking concessions during the period December 2025 to March 2026. The report also noted that the Council's participation in the National Fraud Initiative (NFI) data matching exercise for 2024/25 was fully restored following disruptions from the 2020 cyber-attack.

Corporate Risk Update

The committee received an update on the Council's Corporate Risk Register, which includes 8 red risks and 9 amber risks. The report highlighted the intensification of pressures on finance due to the fragile economy, with budgets stretched and costs rising. While the overall financial position risk remains high, a slight decrease in its score was noted following the local government finance settlement, which provided more clarity on funding. The report also detailed other significant risks, including cyber security, management of major capital programmes, impact of new legislation, workforce challenges, information asset management, corporate resilience, safeguarding, risks from unregistered schools, SEND funding, and pressures on temporary accommodation.

Directorate Risk Registers

The committee reviewed risk registers for the Children and Education Directorate and the Adults, Health and Integration Directorate.

The Children and Education Directorate Risk Register highlighted ongoing risks such as delays in responding to Subject Access Requests, the reduction in the use of residential placements, and service demands exceeding available resources, particularly due to the cost of living crisis. Risks related to Special Educational Needs and Disabilities (SEND) were also discussed, including escalating spend impacting budgets and insufficient provision to meet growing demand. Safeguarding failures in schools and risks posed by children not in registered settings were also noted.

The Adults, Health and Integration Directorate Risk Register identified several key risks. In Public Health, these included rising STI rates and outbreaks straining sexual health services, insufficient capacity for health protection, and financial risks due to funding uncertainties. The Mortuary Service faces operational and financial pressures due to an insecure staffing structure. The Integrated Care Partnership (ICP) is threatened by significant ICB workforce reductions, impacting long-term condition prevention and mental health pathways. Within Adult Services, growing demand for care coupled with insufficient funding, provider market fragility, and recruitment challenges were highlighted. Refugee homelessness was also identified as a growing risk due to demand pressures and uncertain funding.

Finance Update and Treasury Management Update

The committee received updates on the Council's financial position and treasury management activities. The Finance Update indicated that while the budget position remains challenging, the multi-year funding settlement provided some clarity. The Treasury Management Update covered activities from January to March 2026, noting borrowing undertaken due to insufficient cash levels and a cautious investment strategy focused on highly rated UK institutions. Average daily cash balances had reduced compared to the previous year, reflecting lower balances and declining interest rates.

Internal Audit Annual Plan 2026/27

The committee reviewed and approved the Internal Audit Annual Plan for 2026/27. This plan details the audit service's operational approach, working methods, and specific audits to be undertaken, focusing on areas of highest risk to the Council. The plan is designed to provide independent assurance on the Council's internal control framework, risk management, and governance processes, aligning with Global Internal Auditing Standards (GIAS).

Audit Committee Work Programme

The committee reviewed its work programme for June 2026, which included items such as the Appointment of the Chair and Vice Chair, Terms of Reference, External Audit Update, Finance Update, Treasury Management Update, Corporate Risk Register, Internal Audit Annual Report 2024/25, Annual Fraud & Irregularity Report 2024/25, Audit Committee Work Programme, and the Internal Audit Annual Plan 2026/27.