The Audit Committee of Ealing Council met on Wednesday 22 July 2026 to review the council's financial performance and audit strategies. Key discussions included the Treasury update for Quarter 4 of the 2025/26 financial year, the Statement of Accounts and Annual Governance Statement for 2025/26, and the Audit Strategy Memo for 2025/26. The committee also received an update on the Internal Audit and Investigations team's performance.

Treasury Update (Outturn) 2025/26

Emma Horner, Assistant Director for Strategic and Corporate Finance, presented the Treasury Management Quarter 4 outturn for 2025-26. The report confirmed that all treasury management activities were conducted in accordance with approved limits and the Treasury Management Strategy. The council's investment balance at the end of March 2026 was £290.109 million, with £109 million invested with the Debt Management Office. A planned reduction in the investment balance was noted, attributed to expenditure from the capital program. The committee noted the treasury management activities and performance against targets for the period.

Statement of Accounts and Annual Governance Statement 2025/26

Emma Horner also presented the draft Statement of Accounts and Annual Governance Statement for 2025/26. The report detailed the council's financial position and revenue activities for the year. Councillor Lewis raised several questions regarding fly-tipping, the winding up of Broadway Living, the increase in council employees earning over £50,000, and concerns about spending on repairs and maintenance versus supervision and management. Emma Horner addressed these points, stating that the fly-tipping question would be taken away for a response, that Broadway Living's impact would be assessed at relevant committees, and that the increase in higher earners and repairs and maintenance spending would be investigated further or handled by the Housing Board. Councillor Roy questioned the adequacy of general fund reserves and the government's plan to address the deficit on the Dedicated Schools Grant. Mike Pinder, Assistant Director for Audit and Investigation, responded that the strategic director of resources was satisfied with the current level of reserves and that SEND reform plans had been submitted to the government. Councillor Martin inquired about the final version of the Statement of Accounts, and it was clarified that the final audit report would be ready by January 2027. Mike Pinder also addressed questions regarding group arrangements and health and safety considerations in housing, explaining the processes in place for monitoring company performance and identifying governance issues.

Audit Strategy Memo 2025/26

Suresh Patel, a partner at Forvis Mazars, presented the audit strategy memo for 2025/26. He explained the responsibilities of the auditors, including auditing the accounts, forming a view on value for money arrangements, and the rights of local electors to ask questions about accounts. The memo outlined the plan for auditing the council accounts and the pension fund. A key focus was rebuilding assurance following disclaimed audit opinions in previous years, with a timeline aiming to publish accounts by the end of January 2027. Lessons learned from the previous year's audit were discussed, including actions for both the auditors and the council regarding working papers, evidence quality, and query management. Audit risks identified included management override of controls, valuation of property, plant and equipment, valuation of the local government pension scheme, and IFRS 16 implementation for leases and PFI contracts. Councillor Martin inquired about the audit process for pensions in light of the move to the London Collective Investment Vehicle (LCIV), and Suresh Patel confirmed this would not change the audit process. Councillor Johnson asked about interviewing independent officers for pensions, which Suresh Patel stated was not typical. Councillor Roy questioned the three-way communication between the audit committee, officers, and auditors, and Suresh Patel suggested having private meetings with auditors as good practice.

Annual Conclusion and Quarter 4 Internal Audit and Investigation Update Report

Michele Woodhatch, Deputy Head of Audit, presented the annual conclusion and Quarter 4 update report for internal audit and investigations. The report indicated that the council's governance, risk management, and internal control arrangements were effective. While most internal audit reviews showed systems operating as intended, areas for improvement were identified in health and safety and housing services. The counter fraud and investigations team had a successful year, resulting in savings of £1.4 million and the recovery of 20 council properties. Councillor Rice raised concerns about health and safety in housing services and the sign-off of repairs, and Mike Pinder explained the follow-up process for findings. Councillor Martin suggested highlighting carried-forward items from the report for clarity, and Mike Pinder confirmed these would be included in the next item. Councillor Roy questioned the implementation of audit recommendations, particularly those with passed deadlines and no revised dates, and Mike Pinder provided updates on these specific issues. He also discussed the customer questionnaire feedback and the enhanced vetting process. Councillor Johnson inquired about inter-council sharing of vetting information, which Mike Pinder explained was problematic due to human rights legislation but could be flagged through the national fraud initiative. Mike Pinder also addressed the increase in outstanding high-risk recommendations, explaining it was due to a combination of factors including a large number falling due simultaneously and ongoing issues in specific areas. The committee noted the performance of the internal audit and investigations team and key issues arising during Quarter 4. The committee was asked to approve the Anti-Money Laundering Policy and the Fraud Risk and Anti-Fraud Proactive Plan.

Draft Internal Audit Plan 2026/2027

Mike Pinder presented the draft internal audit plan for 2026/27, outlining a more agile and flexible approach. The plan prioritises high-impact reviews and allows for responsiveness to emerging risks. The five-year rolling strategy was explained, detailing the cycle for auditing different areas. Councillor Martin inquired about housing data quality, which Mike Pinder confirmed was a key focus. Councillor Roy asked about the capacity to deliver the plan, and Mike Pinder expressed confidence due to successful recruitment and the availability of a resilience contract for specialist audits. The committee reviewed the draft internal audit plan and it was approved.

Quarter 4 Risk Management Update

Mike Pinder presented the Quarter 4 risk management update, noting that the number of strategic risks remained at 13 with minor updates to mitigations. Councillor Roy expressed interest in the safeguarding risk, questioning the implication of replacing children at risk with a families first policy. Mike Pinder clarified this was a response to central government policy and that mitigations were in place to manage the associated risks. Councillor Alan questioned the council's compliance with new procurement regulations, and Mike Pinder confirmed that audits indicated the council was moving in the right direction. Councillor Johnson inquired about the building safety implementation date, and Mike Pinder stated this was being followed up with housing services to confirm the intention behind the reported completion date. The committee noted the progress on the strategic risk register and heat map, and the risk management policy was recommended to Cabinet for approval.