The Governance & Assurance Committee of Redbridge Council met on 25 April 2024 to review the Council's financial governance, risk management, and internal audit functions. Key discussions included the interim value for money report, audit planning for the upcoming year, the strategic risk register, and updates on internal audit and counter-fraud activities. The committee also reviewed progress against the CIPFA Financial Management Code, the annual internal audit report, and approved the Annual Governance Statement for 2023/24.

Interim Value for Money Report for 2021/22 and 2022/23

The committee received an interim commentary from Ernst & Young (EY) on the Council's Value for Money (VFM) arrangements for the financial years 2021/22 and 2022/23. EY explained that due to the backlog in local authority audits, they would be focusing on Pension Fund audits and VFM arrangements for these two years, with the outcome of government consultations on clearing the audit backlog yet to be published. Members noted the Council's responses to EY's recommendations and accepted the interim report.

Audit Planning Reports for 2023/24

EY presented their provisional audit planning reports for both the Council's 2023/24 financial statements and the Redbridge Pension Fund. The reports outlined EY's proposed audit approach and scope, identifying key risks and audit strategies. Members noted EY's intention to focus on the 2023/24 audit and not the preceding two years, a decision with which the Council's Section 151 Officer expressed some congruence, confirming her team's work for those years was complete and ready for audit. The committee noted and commented on the audit planning arrangements.

2023/24 Strategic Risk Register Quarter 4

The committee reviewed the Council's Strategic Risk Register for the fourth quarter of 2023/24. Risk Management is an integral part of corporate governance, providing a framework to manage uncertainty and support informed decision-making. The report detailed changes in controls and risk scoring, with 10 strategic risks monitored. The two highest-rated red risks remained: CORP0014, Reduction of available suitable and affordable housing provision for temporary and permanent housing, and CORP0022, Failure to maintain a sustainable Medium Term Financial Strategy in an increasingly uncertain economic outlook. Members noted the ongoing vigilance required regarding cyber security risks, with training being delivered to support cyber-attack response plans. The committee resolved to note and consider the current Strategic Risk Register and its updates.

Internal Audit and Counter Fraud 2023/24 Quarter 4 Update

This report provided an update on Internal Audit and Counter Fraud activities, including the outcomes of completed audits and management's progress in implementing high-risk recommendations. The committee noted that while there had been an improvement in the balance of assurance opinions compared to previous years, the number of limited assurance opinions and the scale of the Council's challenges meant the overall opinion remained Limited Assurance. Members discussed the ongoing nature of Housing and Data risks and noted that efficiency and vigilance were a shared responsibility between the committee and officers. The committee resolved to note the update on Internal Audit and Counter Fraud activity and management's progress in implementing recommendations.

Financial Governance - Update on Progress Against the CIPFA Financial Management Code

The committee received an update on progress made in increasing compliance with the CIPFA Financial Management Code. While the Council fully meets nine of the 17 standards, eight remain partially met, with ongoing actions to improve compliance. There has been positive movement, with some actions showing progress towards fuller compliance. The committee noted the current position and proposed improvement actions, resolving to maintain oversight of compliance through the annual review of the Annual Governance Statement.

Annual Internal Audit Report 2023/24

The Head of Audit and Investigations presented the annual report, which detailed the outcomes of Internal Audit work for 2023/24 and provided the overall annual opinion on the Council's governance, risk management, and internal control framework. The opinion concluded that the Council's arrangements provided Limited Assurance. This was attributed to the number of limited assurance opinions issued and the scale of the Council's challenges, despite an improvement in the balance of opinions compared to previous years. The report also confirmed the Internal Audit team's conformance with Public Sector Internal Audit Standards. Members noted the absence of adverse issues and the steps required to move from a limited to a more assured opinion. The committee resolved to note the Head of Audit and Investigations' overall opinion and annual report.

Annual Governance Statement 2023/24

The committee reviewed the Annual Governance Statement for 2023/24, a public report detailing the robustness and compliance of the Council's governance arrangements. The statement, required by the Accounts and Audit Regulations 2015, follows the CIPFA/SoLACE Delivering Good Governance in Local Government Framework. The statement outlined progress made in addressing previous years' improvement actions and detailed further actions planned for 2024/25. Members considered and noted the statement, resolving to approve it as part of their role in reviewing and approving the Statement of Accounts for 2023/24.

The committee also noted the date of its next meeting as 15 July 2024.