The Audit and Risk Committee of Lewisham Council met on Tuesday, 8 September 2026, to review external and internal audit updates, and to discuss the corporate risk register. Key decisions included noting the progress of external audits, approving recommendations from the internal audit progress report, and agreeing to receive more detailed future reports on specific risks.

External Audit Update

The committee received an update on the 2025/26 external audit. Terence Madgett, Chief Accountant, reported that the draft Statement of Accounts was published ahead of the statutory deadline, with the public inspection period running from 16 June to 5 August 2026. No formal objections were received. The detailed audit fieldwork commenced in August and is progressing well, with an expectation that the audited Statement of Accounts will be presented to the council in November 2026. All prior year recommendations are considered closed, with the exception of those relating to improvements in the income management system, which are still in progress.

Councillor Gavin Moore raised a question about the Housing Improvement Plan and where minutes of the monthly meetings with the regulator of social housing could be viewed. Gillian Douglas, Executive Director of Housing, explained that while there are no formal minutes, the council provides documents to the regulator monthly and these can be made accessible to the committee. Councillor Rathbone noted that scrutiny of such detailed housing matters might be more appropriate for the Housing Select Committee.

Fleur Nieboer from KPMG confirmed that no formal objections had been received regarding the financial statements and that the audit was on track for completion by November.

Internal Audit Progress Update

Richard Benjamin, Head of Assurance, presented the internal audit progress report for 2026/27. Seven audits had been completed between June and August 2026. The audit of Major Repairs and Refurbishments received a Limited assurance rating, highlighting weaknesses in data quality and management. Other completed audits, including Adult Safeguarding - Governance and Virtual School, received Satisfactory or Substantial ratings.

Councillor Gavin Moore requested that full internal audit reports be made available to committee members. Michael Reece, Interim Director of Quality and Improvement, confirmed that the bulk of the 14 actions from the Major Repairs and Refurbishments audit were on track for delivery, with some target dates to be extended. Gillian Douglas added that the audit findings were helpful in identifying actions to underpin the delivery of the capital programme works.

The committee discussed the findings of the Major Repairs and Refurbishments audit, with Councillor Moore suggesting it be referred to the Housing Select Committee. Councillor Rathbone noted that similar discussions had already taken place at the Housing Committee.

The committee also discussed the Adult Safeguarding and Governance Summary, which had several areas for improvement. Richard Benjamin clarified that this was an audit of governance rather than the safeguarding process itself, and that an action plan was already in place.

Risk Management and Corporate Risk Register Update

The committee reviewed the Corporate Risk Register. Two risks had increased in score: LBL013 Cost of Living Impact on Residents and LBL006 Major Information Governance Failure. Three risks had reduced: LBL021 Housing Management Software Implementation Failure, LBL026 Capacity Constraints and/or Budget Pressures to Strategic Health Partners, and LBL001 Failure to Achieve Full Regulatory Compliance for Council Housing Stock. The number of Very High risks remained at two: LBL009 Significant Cyber Security Breach and LBL023 Significant Disruption to IT Partner (STS).

Councillor Rathbone questioned the rating of LBL002 (Unable to effectively improve housing stock), expressing concern that the Possible likelihood rating did not align with the findings of the major repairs audit. Gillian Douglas explained the ongoing work to improve housing stock and the progress made in reducing hazards. Councillor Rathbone also sought clarification on the dates for achieving regulatory compliance for housing stock.

The committee discussed LBL023 (Significant Disruption to IT Partner), with David Austin, Executive Director of Corporate Resources, explaining that a paper was going to Mayor and Cabinet regarding future options.

Regarding Exercise Helios and extreme heat preparedness, the committee requested a more detailed report. David Austin noted that the council had successfully managed through the summer heatwaves, with services continuing to operate. The committee also inquired about the impact of adverse weather on infrastructure and housing stock, and whether this was covered in Exercise Helios. The report indicated that relevant aspects would have been factored in where they related to council services.

The committee agreed to receive more detailed reports on cyber security, IT partnership risks, housing management software implementation, risk-scoring methodology, and climate resilience/Helios exercise outcomes.

Councillor Rathbone declared an interest as an employee of Calico Projects/B22 Communities, the operator of Crofton Park Library, as the library had been mentioned in relation to closures due to extreme heat.

The committee also discussed the potential for a deep-dive session on housing directorate risks at a future meeting, acknowledging that the next agenda was likely to be heavily focused on the external audit and financial accounts.