The Audit, Governance and Standards Committee of Kingston upon Thames Council met on Wednesday 27 March 2024 to review the progress of the Council's financial statement audits, discuss fraud prevention efforts, and examine the corporate risk register. The committee also approved the Internal Audit Charter, Strategy, and Audit Plan for the upcoming year and received an update on the progress of the 2023/24 internal audit work.

Statement of Accounts and External Audit Update

The committee received an update on the ongoing audits of the Council's statement of accounts for 2021/22 and 2022/23. While the 2021/22 audit was nearing completion, the 2022/23 audit was experiencing delays due to complex queries. The auditors had not identified any material errors affecting the Council's reserves or financial outturn to date. Concerns were raised about the potential for a disclaimer opinion if audits were not completed by upcoming backstop dates, a situation officers are working to avoid. The committee noted the report.

2023/24 Fraud Update and 2024/25 Indicative Fraud Plan

An update was provided on the fraud work undertaken by the South West London Fraud Partnership (SWLFP) in 2023/24 and the indicative fraud plan for 2024/25. The report highlighted a significant national increase in reported fraud, with changing motivations for perpetrators and a growing public perception that fraud is a victimless crime. The current financial climate was noted as a factor in an increase in fraud committed out of necessity. The SWLFP's collaborative approach across five boroughs was detailed, along with performance data and sanctions achieved. The report assured members that suitable systems were in place for fraud investigation and prevention, with most referrals coming from in-house teams, indicating a good level of fraud awareness. The committee noted the indicative fraud plan and the work undertaken.

Corporate Risk Register

The committee reviewed an update on high-priority risks identified by directorate and senior management teams. Key areas of concern included the financial impact of risks, particularly those stemming from the cost of living crisis, and the need for transformation to deliver savings. Changes in risk levels over time were presented, and a deep-dive report on the significant issue of nightly paid accommodation for residents in need was discussed. The committee requested that the full risk register be shared as an appendix in future reports and asked for an email update on the work concerning the Maldens Centre and a further report on temporary accommodation in six months. The committee noted the updated risks and actions and acknowledged that the Senior Leadership Team would continue to review the register quarterly.

Internal Audit Charter, Strategy and Audit Plan

The committee approved the proposed Internal Audit Charter, Strategy, and Audit Plan for 2024/25, as required by the Public Sector Internal Audit Standards (PSIAS). The report emphasised the role of Internal Audit in the Council's governance framework, providing assurance on risk management, control, and governance processes. The strategy outlined how the service would be developed and delivered, including resourcing and risk assessment. The 2024/25 plan includes 557.5 days of work for Kingston, with an additional 140 days allocated to the Achieving for Children (AfC) plan. The committee also noted the AfC Internal Audit Plan for 2024/25.

Internal Audit Update Report

A comprehensive report was presented on the work carried out by Internal Audit against the 2023/24 plan, providing assurance on the Council's control environment. Progress against the plan was detailed, showing that most audits were on track for completion. The report highlighted that no audits had been finalised with Limited or No Assurance ratings. An update on outstanding Priority 1 recommendations from previous audits, specifically concerning Damp and Mould and Dukes Avenue, indicated positive progress, with many recommendations implemented. The committee noted the work undertaken by Internal Audit and requested full audit reports for Damp and Mould and Dukes Avenue. Questions were raised about the Cambridge Estate Governance audit, with confirmation that it was due for completion by the end of April 2024 and an update on Priority 1 assessments would be provided at the next meeting.