The Governance, Audit, Risk Management and Standards Committee met on Tuesday 19 March 2024, noting the Q3 Corporate Risk Register and the draft 2022/23 Statement of Accounts. The committee also reviewed progress on internal audits and anti-fraud measures, and discussed the Corporate Anti-Fraud and Corruption Strategy.

Corporate Risk Register

The committee received an update on the Council's Corporate Risk Register for the third quarter of the 2023/24 financial year. The register is designed to provide a strategic overview of risks faced by the Council, enabling the implementation of mitigation strategies. Members were informed that a risk related to the failure to stabilise and optimise the Dynamics Finance and Operations system was decreasing as the system's implementation progressed. The committee also noted that staff are now required to work from council sites for a minimum of two days per week. The report was noted by the committee.

Draft 2022/23 Statement of Accounts

The committee reviewed the draft statement of accounts for the 2022/2023 financial year. The interim Director of Finance and Assurance informed members that Harrow Council was the first of Mazars' London clients to have its 2021/2022 statement of accounts approved. The draft accounts for 2022/23 were published on 24 January 2024, with a public inspection period ending on 6 March.

Discussions with officers clarified that auditors had been on-site since January and making good progress. The Council has factored in reductions in central government funding into its budget. This was the first year that WHE was engaged for external valuations of the Council's assets, with the higher end of an acceptable range being used. Discussions were ongoing with WHE to adjust one valuation assumption. The biggest provisions for trade debtors relate to business rates and collection rates. Surplus assets were defined as those not operational but not definitively classified as investments, with the Civic Centre cited as an example.

External auditors from Mazars provided comments, outlining a timetable for the completion of their final review processes by the end of September. They identified four significant risks for the 2022/2023 financial statements: management override of controls, valuation of net defined pension liability, valuation of property, plant and equipment and investment property, and migration of payroll data. The audit for 2022/2023 is intended to be signed off by the end of September, subject to any unforeseen circumstances. The committee noted the report.

Internal Audit and Corporate Anti-Fraud Team Progress

A report detailing the progress of the Internal Audit and Corporate Anti-Fraud Team (CAFT) against their 2023/24 plans, and the outcomes of reactive investigations up to 29 February 2024, was presented. The report covered progress against the Internal Audit Plan, the performance of CAFT, and a self-assessment against UK Public Sector Internal Audit Standards. Members were informed that 75% of the Internal Audit plan had been achieved, with 54 recommendations made to management for improving internal controls, all of which were agreed for implementation, exceeding the 95% target. The progress report was noted.

Corporate Anti-Fraud and Anti-Corruption Strategy

The committee reviewed and noted the draft Corporate Anti-Fraud and Corruption Strategy 2022-26. This strategy has been refreshed to align with the national Fighting Fraud and Corruption Locally 2020s Strategy . Members were informed that the Council has the authority to prosecute under the fraud act if sufficient evidence of fraud is found. A new addition to the strategy focuses on protecting the Council and its residents from fraud. The draft strategy was referred to Full Council for approval.

Treasury Management Strategy

A review of the Treasury Management Strategy for 2024/2025 was presented. The strategy covers capital issues, borrowing, the annual investment strategy, and other treasury matters. The report had previously been presented to Cabinet in February 2024. The committee noted the report.

Application for Dispensation

The committee considered a report on requests for dispensations from two councillors, Councillor Greek and Councillor Rabadia, under section 33 of the Localism Act 2011. The dispensations were requested to allow them to remain and speak during discussions on HSDP (Harrow Strategic Development Partnership) matters. Both councillors are directors of HSDP Nominee Ltd, a company where they represent the council and receive remuneration. The dispensation allows them to stay and speak in meetings concerning HSDP, which will assist them in their board roles. The committee resolved to grant the requests for a dispensation to stay in a meeting and speak, but not to vote.