The Audit and Governance Committee of Waltham Forest Council met on Tuesday 16 April 2024 to review internal audit progress, approve future plans, and discuss financial and governance matters. Key decisions included the approval of the 2024-25 Internal Audit and Anti-Fraud Plans, and the revised Unreasonable Behaviour Policy.

Internal Audit Progress Report

Gemma Young, Corporate Director – Internal Audit & Anti-Fraud Shared Service, presented an update on the progress of the Internal Audit work for the year to date. The committee was informed that 16 audits were at the fieldwork stage, and that outstanding higher priority actions were being followed up.

Limited assurance reports were discussed, including one concerning Waltham Forest Services Ltd, which highlighted payment process and debt management issues. Ms Young explained that while no fraud was found, proper processes had not been followed, compounded by the COVID-19 pandemic. Agreed actions are being implemented and will be followed up. A limited assurance audit on Contract Management Community Equipment also identified high, medium, and low-risk findings. The committee also raised queries regarding SEN transport assurance, specifically concerning a lack of contract documentation and its implications for payment variations. Ms Young clarified that these were complex payments and that work was ongoing to address the issues. The committee noted the report.

Internal Audit and Anti-Fraud Plans 2024-25

The committee considered the draft Internal Audit Plan and the draft Proactive and Reactive Anti-Fraud Plan for 2024-25. Gemma Young introduced the report, outlining the key audits planned for each service area and the audit contingency. The plan allocates over 1000 days for internal audit work, with the team described as well-resourced. The Proactive and Reactive Anti-Fraud Plan builds on the recommendations of the Fighting Fraud and Corruption Locally plan, with over 2000 days allocated to anti-fraud work. New areas of focus include unlawful profit orders and direct payments, though these are not yet fully integrated into the plan pending consultation on staffing restructures. The committee noted the report and agreed to approve both draft plans.

Debt Recovery (People Directorate) Update Report

Nalda Russell-Stowe, Corporate Director for Revenues and Benefits, provided an update on debt recovery within the People Directorate. Since the previous audit report highlighted issues with debt not being chased effectively, several improvements have been implemented. These include migrating the invoicing system to Oracle, transferring debt recovery work to the Revenues and Benefits team, and increasing staffing resources. The overall debt figure for the People Directorate has reduced from £18.14 million to £15.14 million as of February 2024. Benchmarking with other local authorities, such as Brent Council, has informed best practices, including clearer communications to residents. Ms Russell-Stowe estimated that debt recovery would be in a good position within six to nine months. The committee requested an update at a future meeting and a breakdown of debt by service area. The committee noted the report.

External Audit: Accounts 2020/21

Debbie Hanson from Ernst & Young LLP presented the Provisional Audit Results and Pension Fund Audit Results for the year ending 31 March 2021. The audit was substantially complete, with a final opinion pending the completion of the IAS19 pension liability report and work on COVID-19 grants. No significant weaknesses were identified in financial planning or value for money. Areas for improvement were noted in governance processes around council-owned companies, including a lack of documented procedures and oversight of dormant companies. The committee discussed issues around COVID-19 grants and the complexity of the Pension Fund report, particularly a Swap investment which required significant additional work and would drive an additional audit fee. The committee agreed to receive the final report via email. The committee noted the report.

Annual Governance Statement

Mark Hynes, Corporate Director of Governance and Law, presented the draft Annual Governance Statement. He explained that this would remain a live document until the audited Financial Statements were signed. The statement had a more detailed approach than previous versions and included information on complaints, the delay to the external audit, and benchmarking for subject access requests. The committee was informed that the final version would be available within the month. The committee noted the report and approved the draft statement, delegating authority to the Director of Governance and Law, in consultation with the Chair, to make any further amendments before publication.

Unreasonable Behaviour Policy

Mark Hynes also introduced the revised Unreasonable Behaviour Policy. The policy aims to ensure a safe working environment for staff and councillors by regulating unacceptable behaviour from customers and complainants. Following an audit review, several improvements have been made, including establishing a single point of contact, a central record of requests, and requiring the Corporate Director of Governance and Law to approve all decisions to invoke the policy and any sanctions imposed. The committee noted the report and approved the revised policy.

The meeting closed at 9.23 pm.