The Audit and Corporate Governance Committee of Camden Council met on Thursday 26 March 2026 to review the draft 2026-27 Internal Audit and Investigations Plan, receive an update on principal risks facing the Council, and consider the audited financial statements for Camden Living Limited. The committee also discussed minor constitutional changes, accounting policies for the upcoming financial year, and the committee's work and training plan.

Draft 2026-27 Internal Audit and Investigations Plan

The committee was asked to approve the Annual Internal Audit and Investigations Plan for 2026-27. This plan is risk-based and includes internal audit's resource requirements, its approach to using other sources of assurance, and any work needed to rely on those sources. The plan was developed considering the Council's objectives, principal risks, and intelligence from various sources, including audit plans from other local authorities and CIPFA good governance guidelines. The investigations plan details planned anti-fraud activity, including proactive reviews, fraud awareness training, and participation in the National Fraud Initiative. The committee was recommended to approve the Internal Audit Strategy, the 2026-27 Internal Audit Plan, the Principal Risk Assurance map, and the 2026-27 Annual Investigations Plan.

Principal Risk Update

This report provided an update on the action being taken to mitigate key principal risks facing the Council, presenting the Council's position as at February 2026. The update covered risks related to financial resilience and strategy, Housing Revenue Account (HRA) financial resilience, increasing homelessness, financial resilience of residents, delivering net zero carbon and improving climate resilience, High Speed 2 and Euston, and cyber and data security. The report noted that while the Council had received a three-year funding settlement, this provided flat funding in cash terms, meaning no additional funding for inflation and demographic pressures. Overspends were reported in the General Fund for 2024/25 and forecast for 2025/26, driven by temporary accommodation and social care costs. The HRA faced pressures from repairs, interest rates, and new budget requirements related to Awaab's Law. Homelessness continued to increase, with significant pressure on temporary accommodation costs. The Household Support Fund was ending and being replaced by the Crisis and Resilience Fund, which represented a reduced funding envelope for resident financial resilience. The Climate Action Plan 2026-30 had been approved, with significant progress made on reducing borough-wide emissions. High Speed 2 and Euston developments included the start of tunnelling and the final consultation on the Euston Area Plan. Cyber security risk was assessed as increased nationally, with the Council maintaining a structured approach to risk management and regularly testing its incident response plan. A watchlist item regarding the Coroner's service was also discussed, noting a delay in the transfer of responsibility for Coroner's Officers from the Metropolitan Police to Camden Council.

Camden Living Financial Statements 2024/25

The committee was briefed on the audited financial statements for Camden Living Limited (CL) for the 12-month period ending 31 March 2025. CL, a wholly owned subsidiary of Camden Council, was established to improve housing opportunities. The report demonstrated that the company continues to trade viably, reporting a profit of £247,000 after tax for the year, largely due to a one-off repairs refund and management fee income from refugee properties. The company had a bank balance of £1.9 million and net assets of £987,000. The independent auditors, Forvis Mazars, provided an unqualified audit opinion, confirming the accounts give a true and fair view and have been properly prepared. The committee was asked to note the financial statements for their information.

Minor Constitutional Changes

The committee considered minor proposed changes to the Council's Constitution, intended to be included in the annual report to the May Council meeting. These changes were designed as tidying-up and clarifications, not seeking to make significant changes to decision-making or Member rights. Proposed amendments included clarifying the process for affixing the Council's Common Seal, both physically and electronically, and noting the intention to propose the creation of two staff appeal sub-committees. The report also addressed the allocation of statutory roles, specifically the Section 151 officer role, and outlined the process for appointing a qualified candidate to this position, which might necessitate minor amendments to the Constitution.

Accounting Policies for the 2025/26 Statement of Accounts and Update on Financial Reporting

The committee was asked to approve the accounting policies for preparing the 2025/26 statement of accounts. Annually, the Council reviews its accounting policies against the relevant legislative framework and guidance. Key changes for 2025/26 include the application of indexation to asset valuations for non-investment assets held at revaluation, as required by the updated CIPFA Code of Practice. This change aims to address challenges in providing audit assurance on carrying values without annual revaluations. The report also detailed other minor updates to the Code of Practice, including changes related to publication dates, the annual governance statement, statutory overrides for infrastructure assets and pooled investments, and the adoption of IFRS 17. A minor change was also proposed to the depreciation policy for Right of Use assets to align with the Minimum Revenue Provision (MRP) policy, allowing for a pro-rata depreciation charge in the year of acquisition and disposal. The committee was also asked to delegate authority to the Director of Finance to approve any further amendments to accounting policies during the preparation of the accounts. An update on the reporting of the 2024/25 accounts was also provided, confirming their publication within statutory deadlines.

Work and Training Plan and Action Tracker

The committee reviewed its work plan for the 2026/27 municipal year, noting the proposed schedule of reports and training sessions. Members welcomed the training provided as part of the Member Induction Programme and requested consideration be given to an early review of the Members' Allowances Scheme. The committee also noted the action tracker, detailing progress on actions arising from previous meetings. The work plan was noted with the addition of a treasury management update to the September meeting. The details of the Member Induction programme and ongoing training were also noted.