The Audit, Governance and Standards Committee of Kingston upon Thames Council met on Wednesday 27 March 2024 to review the progress of audits, discuss fraud prevention, and examine the council's risk register. The committee noted updates on the council's statements of accounts, received an overview of fraud work and the indicative fraud plan for the upcoming year, and reviewed the corporate risk register, approving the internal audit charter, strategy, and plan for 2024/25.

Statement of Accounts and External Audit Update

The committee received an update on the ongoing audits of the council's statements of accounts for 2021/22 and 2022/23. While progress is being made, the completion of these audits has been delayed due to the time taken to resolve complex queries. The auditors have not identified any material errors affecting the council's financial position. Officers are working closely with the auditors to finalise the 2021/22 accounts and aim to complete the 2022/23 audit and present the findings to the committee at a future meeting. The committee was also informed about ongoing consultations regarding the introduction of 'backstop' dates for the publication of audited accounts, which could lead to a disclaimer opinion if audits are not completed by these deadlines. The council is working to avoid such an outcome. The committee noted the report.

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

An update was provided on fraud work undertaken by the South West London Fraud Partnership (SWLFP) in 2023/24, alongside the indicative fraud plan for 2024/25. The report highlighted a significant national increase in reported fraud, which has become the largest reported crime type. Concerns were raised about a growing public acceptance of fraud and the misconception that it is a victimless crime. The current financial climate has also led to an increase in fraud committed out of necessity. The SWLFP continues to work with social housing providers to address tenancy fraud, having recovered 8 properties and issued notices on a further 3 cases in 2023/24. An online fraud awareness training package has been made available to all officers to reinforce the council's Anti-Fraud and Anti-Corruption Strategy. The committee was assured that suitable systems are in place for the identification and investigation of fraud allegations, with most referrals coming from in-house teams, indicating a good level of fraud awareness among staff. The committee noted the indicative fraud plan for 2024/25 and the fraud work undertaken and performance results for 2023/24.

Corporate Risk Register

The committee reviewed an update on high-priority risks identified by directorate and senior management teams, along with the mitigating actions being taken. The report detailed the top 10 risks, assessed by likelihood and impact, using a traffic light system. Key areas of discussion included the financial impact of risks, particularly due to the cost of living crisis, and changes in risk levels over time. A deep-dive report on nightly paid accommodation was also presented. Two new risks, Building Safety and Recruitment and retention of shortage occupations, had been added to the register since the last report, while Maintenance of the Leisure estate and Cambridge Road Estate and economy risks were removed. The committee requested that the full risk register be shared as an appendix in future reports and asked to be emailed with details of the work on the Maldens centre. A further report on temporary accommodation is to be presented in six months. The committee noted the updated risks and actions and that the Senior Leadership Team will continue to review the risk register quarterly.

Internal Audit Charter, Strategy and Audit Plan

The committee received the proposed Internal Audit Charter, Strategy, and Internal Audit Plan for 2024/25, as required by the Public Sector Internal Audit Standards (PSIAS). The Internal Audit Charter formally defines the purpose, authority, and responsibility of the internal audit activity, authorising its access to records and personnel. The strategy outlines how the service will be developed and delivered, including resourcing and performance measurement. The internal audit plan for 2024/25 includes 557.5 days of work, with an additional 140 days allocated to the Achieving for Children (AfC) plan. The committee resolved to approve the Internal Audit Charter, Strategy, and Internal Audit Plan for 2024/25, and noted the Achieving for Children Internal Audit Plan for 2024/25.

Internal Audit Update Report

A comprehensive report was presented detailing the work carried out by Internal Audit against the 2023/24 plan, providing assurances on the council's control environment. Progress against the 2023/24 plan at the end of February 2024 showed 478.0 audit days delivered out of a planned 557.5 days. The report indicated that no audits had been finalised since the previous update that had been given Limited or No Assurance. The committee was informed of progress on outstanding Priority 1 recommendations, with significant progress made on recommendations related to Damp and Mould and Dukes Avenue. The Priority 1 recommendation for Damp and Mould has been completed, and further progress has been made on the remaining recommendations for Dukes Avenue. At the request of a member, officers agreed to email the full audit reports for Damp and Mould and Dukes Avenue. The committee noted the work undertaken by Internal Audit.