The Audit Committee meeting scheduled for Wednesday 17 April 2024 was set to review a range of financial and operational reports. Key discussions were expected to include the Tenancy Audit Report, the Accounting Policy for 2023/24, and updates on risk management, internal audit, and counter-fraud activities.

Tenancy Audit Report

The committee was scheduled to receive an update on the Housing Services Tenancy Audit Strategy, covering the period 2023-2024 and outlining the audit programme for 2024-2027. This report was prepared in response to a previous request for information on the strategy and audit data. The Tenancy Audit Policy, detailed in Appendix 1 of the report, outlines the scope and objectives of tenancy audits, which are mandatory visits to all London Borough of Newham (LBN) tenanted properties at least once every three years. The policy aims to update household information, inspect property conditions, identify customer support needs, detect tenancy fraud, discuss rent accounts, and identify under-occupation. The Tenancy Audit Report for March 2024, in Appendix 2, provides performance data for 2023-2024, noting that while a full audit programme had not been in place for some years, increased investment in staffing has enabled the introduction of a three-year rolling programme from April 2024.

Accounting Policy for 2023/24

The committee was recommended to review and approve the Accounting Policies for 2023/24. These policies are in line with the Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 and ensure compliance with relevant accounting standards, including International Financial Reporting Standards (IFRS). The report highlighted that accounting policies generally do not change significantly year-on-year to ensure comparability, and there were no significant changes from 2022/23 to 2023/24. Minor policy changes, such as the rounding of immaterial values, were noted. Changes due to apply from 2024/25, including the capitalisation of debt charges and the adoption of IFRS 16 for leases, were also presented for transparency.

Quarterly Report of Contract Waivers

A summary of contract waivers for the period 1 January 2024 to 31 March 2024 was scheduled for review. Under the Council's Scheme of Delegation, all contract waivers must be reported to the committee responsible for audit functions. The report detailed that 13 waivers were received during this quarter, with 10 approved and 3 rejected. The reasons for waivers included proprietary goods or services available only from a single supplier, unforeseen emergencies, and business continuity requirements to avoid significant disruption.

Quarterly Update on Risk Management and Risk Register

The committee was to receive an updated Corporate Risk Register and risk profile for March 2024. The report noted ongoing issues with Corporate Directors not providing timely updates to their risk registers, which undermines confidence in the risk management system. The report also presented a debate on different approaches to risk management, highlighting the need for significantly enhanced compliance rates regardless of the system adopted. Two directorate risk registers, for Children & Young People and Environment & Sustainable Transport, were also scheduled for discussion.

Quarterly Internal Audit Update Report

This report was to provide an update on the work undertaken by the Internal Audit team between January and March 2024. It included an overview of audits carried out, a summary of recommendation implementation, and an indicative plan for 2024/25. The report detailed progress on various audits, including those related to Strategic Investments, Direct Payments, VAT, and several school audits. It also provided an update on outstanding audit recommendations, with 60% fully implemented as of the end of quarter 4.

Quarterly Counter Fraud Progress Report

The committee was to receive an update on Counter Fraud activity. For the period 1 April 2023 to 31 March 2024, the team had recovered 32 properties due to unlawful subletting and stopped 2 fraudulent succession applications, resulting in the return of 34 properties. The team was working on 128 housing investigations, with 28 awaiting civil court hearings and 5 cases with the legal team for potential criminal prosecutions. The report also highlighted new initiatives for 2024/2025, including taking on further responsibility for succession applications, a project to tackle temporary accommodation costs, and dedicated Council Tax investigations.

Year Ahead Forward Plan

This agenda item was a draft for discussion, outlining the committee's forward plan. A member had requested that the action plan progress on the LGA Peer Review be considered at a future meeting.