The Audit, Standards and Statutory Accounts Committee of Richmond Council met on Thursday 10 November 2022 to review governance concerns, internal audit updates, and external audit progress. Key decisions included agreeing actions to strengthen governance arrangements, noting the progress of internal audits, and approving the appointment of Ernst and Young LLP as external auditors for a five-year period.

Review of National Governance Concerns 2021-22

The committee reviewed a report summarising the findings of an internal audit assessment of the Shared Staffing Arrangement (SSA) following national public interest reports into local government failures. While no significant concerns were identified, recommendations were made to enhance governance. These included introducing regular meetings between the Chair and Head of Internal Audit, appointing an additional independent member to the committee, and the Monitoring Officer undertaking an annual review of the committee's effectiveness. All councillors were encouraged to foster an open and transparent culture. The committee noted the report and agreed to the proposed actions.

Internal Audit Update Report November 2022

An update on the work of the Internal Audit Team for 2022-23 to date was presented. Cyber security was highlighted as a major risk, with ongoing efforts to manage and respond to cyberattacks, including mandatory training for all SSA staff. The committee agreed that an annual cyber security report presented to the Director's Board should also be shared with them. Contract monitoring was identified as a persistent risk due to the diverse range of services provided, but support frameworks are available for officers. The committee noted the report and the current performance of internal audit.

During this item, Mr Ted Cremin, a member of the public, raised concerns about the Twickenham Riverside scheme, questioning its value for money given the council's expenditure of £4 million and a further £500,000 required for a Compulsory Purchase Order. He also highlighted the scheme's reliance on a government grant and the associated risk of its unavailability.

Update on the 2021-22 Audit and Appointment of External Auditor from 2023-24 to 2027-28

The committee received an update on the progress of the 2020-21 external audit by EY, which was expected to be delayed beyond its original 30 November 2022 completion date. The delay was attributed to national issues regarding the treatment of infrastructure in local authority accounts and local challenges with land and building valuations. The external report was anticipated to be completed by the committee's next meeting on 2 February 2023. The committee also noted the audit fees and approved the proposed appointment of Ernst and Young LLP as the council's external auditors for the period 2023-24 to 2027-28.

Fraud Update November 2022

An update on the work of the South West London Fraud Partnership (SWLFP) to tackle fraud in 2022-23 was provided. The partnership continues to investigate housing tenancy fraud, recognising that recovering properties can reduce the council's expenditure on temporary accommodation. While no new fraud trends directly affecting the council were identified, a rise in cold-calling fraud was noted. A significant increase in housing application fraud referrals was linked to the National Fraud Initiative's data matching exercise. The committee noted the report and reviewed the activity completed so far.

Members' Gifts and Hospitality

The committee noted a report outlining declarations made by councillors on the Gifts and Hospitality Register between 25 September 2021 and 25 September 2022. Councillors were reminded of their obligation to report even the offer of gifts and hospitality, regardless of whether they were accepted.