The Audit Committee of Hackney Council was scheduled to convene on Thursday 16 April 2026 to review a range of critical governance, risk, and financial reports. Key discussions were expected to focus on the Auditor's Annual Report for 2024-25, updates on treasury management, and the risk registers for the Children and Education, and Adults, Health and Integration Directorates. The committee was also set to consider progress reports on audit and anti-fraud activities, the whistleblowing annual report, and the internal audit plan for the upcoming year.

Auditor's Annual Report 2024-25

The committee was scheduled to consider the Auditor's Annual Report for the 2024-25 financial year. This report, prepared by external auditors Forvis Mazars, provides an overview of their audit activities for Hackney Council and its Pension Fund. The report was expected to detail the auditors' opinion on the financial statements, commentary on the Council's Value for Money (VFM) arrangements, and any other reporting responsibilities.

The report indicated that the auditors proposed unqualified opinions for both the Council and the Pension Fund accounts for the year ended 31 March 2025. However, it also highlighted two significant weaknesses identified in the Council's Value for Money arrangements:

• Financial Sustainability: An unsustainable reliance on usable reserves and one-off resources to bridge budget gaps and undelivered savings targets.
• Governance: A failure to comply with Health and Safety standards in Social Housing, following a self-referral to the Regulator of Social Housing.

The report also noted that the auditors found no significant deficiencies in internal controls but recommended several enhancements, including issues related to related parties, IT controls, and a system fault in the CedAR e5 system.

The external auditors were also due to present their reports and address any questions from committee members regarding the audit of the accounts.

Finance Update

A finance update was scheduled to be presented, likely covering the Council's financial position and performance.

Treasury Management Update

The committee was to receive an update on treasury management activities for the period of January 2026 to March 2026. This report provides an overview of the Council's investment and borrowing arrangements, in line with the Chartered Institute for Public Finance Accountants (CIPFA) Code of Practice on Treasury Management. The report indicated no immediate recommendations, as its purpose was to update the committee on past events.

The economic highlights for the period noted UK GDP growth of 0.1% in Q4 2025, CPI inflation remaining at 3.0% in the 12 months to February 2026, and the Bank of England maintaining the Bank Rate at 3.75%. The Council's borrowing stood at £356 million, including £1.05 million through the Hackney Green Investment initiative. Investment balances had reduced to £23 million by the end of March 2026 compared to £46 million in March 2025, reflecting lower cash balances and declining interest rates.

Directorate Risk Registers

The committee was scheduled to review the risk registers for two key directorates:

• Children and Education Directorate Risk Register: This report was to update members on the corporate risks for the Directorate as of March 2026, detailing how risks are identified and managed. Key ongoing risks highlighted included:

  • The impact of government reforms on Children's Social Care, requiring extensive transformation.
  • The ongoing impact of the 2020 cyber attack on Children and Families Service delivery and Subject Access Requests.
  • Budget pressures related to looked-after children care arrangements and the reduction in the use of residential placements.
  • Service demands exceeding available resources, particularly due to the cost of living crisis.
  • The risk of a child or young person suffering significant harm, injury, or death, with robust safeguarding measures in place.
  • Continued calls on resources for No Recourse to Public Funds (NRPF) cases.
  • For Hackney Education, key risks included those related to Special Educational Needs and Disabilities (SEND) funding, provision, and inspection outcomes.
  • Serious safeguarding failures in schools and settings, and risks posed to children not in school.
  • High levels of pupil exclusion and elective home education arrangements not meeting statutory obligations.
  • Falling rolls and their impact on school budgets, leading to a renaming of the risk to School Financial Sustainability.
  • The impact of school closures and increased pupil mobility on admissions.
  • The effectiveness of provision in schools and the risk of them declining or failing.
  • The long-term viability of traded services.
  • Risks relating to the Synergy education management information system.

• Adults, Health and Integration Directorate Risk Register: This report was to provide an update on corporate risks for the Directorate as of March 2026. Key risks identified included:

  • Public Health: Rising STI rates and outbreaks, health protection capacity, financial risks due to funding uncertainty and pay uplifts, operational and financial pressures at Hackney Mortuary, and threats to the stability of the City and Hackney Population Health Hub due to ICB workforce reductions.
  • Adult Services: Growing demand for care versus insufficient funding, provider market fragility, recruitment challenges, and increasing refugee homelessness.
  • Integrated Commissioning: The evolving City and Hackney Place-Based Partnership, and concerns about potential cost shunting from NHS budget cuts to local authority social care services.

Audit and Anti-Fraud Progress Report

The committee was to review the performance of the Audit & Anti-Fraud Service for the period 1 April 2025 to 31 March 2026. This report included a summary of:

• Performance against key performance indicators.
• Internal Audit work carried out.
• Implementation of high and medium priority audit recommendations.
• School audits.
• Statistical information on the work of the investigation teams, detailing estimated savings from enquiries into tenancy fraud, No Recourse to Public Funds, and blue badge/parking fraud.

The report indicated that the Audit & Anti-Fraud Service faced staffing and capacity issues but had implemented proactive measures. It also highlighted that all internal audit activities must comply with the Global Internal Audit Standards (GIAS) from April 2025.

Whistleblowing Annual Report 2025/26

This report was to summarise the Council's corporate arrangements for whistleblowing and provide a statistical update on cases received in 2025/26. The committee was asked to note the report and approve an updated Whistleblowing Policy. The report highlighted that whistleblowing referrals remain a low percentage of overall referrals but are an important component of the Council's reporting arrangements. It detailed referrals received via the Navex hotline and other internal routes, categorised by department and fraud type.

Internal Audit Annual Plan 2026/27

The committee was to consider and approve 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, based on a risk assessment methodology. The plan aims to strengthen the Council's organisational ability to create, protect, and sustain value by providing independent assurance on risk management, internal control, and governance processes. The report detailed the available audit resources and the approach to be taken, including coverage of key financial systems, compliance reviews, and follow-up work.

Annual Report of the Audit Committee 2025/26

This report was to detail the role of the Audit Committee and summarise its key activities and achievements during the 2025/26 municipal year. It aimed to demonstrate how the committee had fulfilled its role effectively and supported compliance with the Global Internal Audit Standards (GIAS) and other statutory requirements. The report was expected to cover internal control, internal audit, risk management, external audit, anti-fraud and corruption, and financial reporting. The Chair's introduction highlighted the committee's focus on budget management and external audit, noting the unqualified opinion on the 2024/25 accounts. It also mentioned the appointment of two new independent members and thanked officers for their support.

Audit Committee Work Programme

The committee was scheduled to review its work programme for the upcoming municipal year, outlining planned agenda items, decisions required, and lead officers. This included the appointment of the Chair and Vice-Chair, review of Terms of Reference, external audit updates, finance updates, treasury management updates, corporate risk register reviews, and reports on internal audit and anti-fraud performance.

The meeting was scheduled to take place on Thursday 16 April 2026. The information provided indicates that the meeting was pending council publication, meaning that while the agenda and supporting documents were available, the actual discussions and decisions made during the meeting were not yet publicly released.