The Audit, Governance and Standards Committee of Southwark Council was scheduled to convene on Tuesday 08 September 2026. The meeting's agenda included the approval of minutes from a previous meeting and a review of the council's corporate risk management process.

Review of the Audit, Governance and Standards Committee Terms of Reference

The committee was scheduled to discuss proposed changes to its terms of reference, as outlined in Part 3K of the council's constitution. These changes are necessitated by the introduction of new statutory audit committee functions under section 94 of the English Devolution and Community Empowerment Act 2026. The report recommended that the committee approve these updates and recommend them to Council Assembly for formal adoption. Additionally, the committee was to consider a further report on the potential appointment of an independent member to the committee.

Overview of the Corporate Risk Management Process

This item provided an overview of the council's corporate risk management process, detailing its structured approach to managing uncertainty and supporting effective decision-making. The report outlined the council's risk management objectives, which include supporting strategic aims, embedding risk management into all key activities, and ensuring transparent escalation and communication of risks. The council's risk appetite and approach to risk control, including strategies such as minimising, accepting, transferring, or ceasing activities, were also to be discussed. The report highlighted that departmental risk registers are aggregated to form the corporate risk register, which is reviewed by senior management and the Audit, Governance and Standards Committee. The key corporate risks identified for 2025-26 were also presented, aligning with the council's strategic priorities.

In-Year Review of Work Programme 2026-27: September 2026

The committee was to receive an update on its proposed work programme for the upcoming year. This item aimed to ensure that the committee's priorities reflected its core functions, including providing independent assurance on governance, risk management, internal control, financial reporting, internal audit, and external audit arrangements. The work programme was to be reviewed for appropriate coverage of these key roles, with flexibility to address emerging issues identified through ongoing committee business. Training for members on the committee's role was also to be discussed.

Housing Revenue Account (HRA) Governance and Financial Monitoring

This report provided an update on the governance arrangements for the Housing Revenue Account (HRA), with a specific focus on budget recovery, financial monitoring, and the forward budget-setting process for 2027-28. It aimed to update the committee on the latest revenue and capital outturn position for the HRA and to support the committee's oversight role in ensuring transparency, accountability, and value for money. The report was expected to detail the HRA's financial position, including income and expenditure, the Housing Investment Programme, and the savings programme for 2026-27.

Southwark360: Update on the Enterprise Resource Planning (ERP) Replacement Programme

This report provided an update on the Southwark360 Programme, which aims to replace the council's legacy SAP Enterprise Resource Planning (ERP) system. The report was to cover the programme's delivery plan, benefits realisation, and key risks. It detailed the procurement process for implementation partners and outlined the programme's governance model. The report also highlighted key programme milestones, including the progress of data migration, change management, and testing phases, as well as the primary benefits expected from the new system, such as improved workforce empowerment, decision-making, supplier satisfaction, and data security.

Budget Process

This item provided an overview of the council's budget process, including its financial planning and management cycle, the budget-setting timetable, and planned community engagement activities for the 2027-28 budget and medium-term financial strategy. The report detailed the stages of the budget process, from the initial MTFS development to final approval by Council Assembly, and outlined the planned community engagement activities, including neighbourhood sessions and a digital survey. The report also highlighted the estimated budget gap for the three financial years from April 2027 to March 2030.

Annual Governance Statement 2025-26

The committee was asked to approve the Annual Governance Statement (AGS) for 2025-26. This statement reports on the council's review of its governance arrangements and system of internal control, assessing their effectiveness against the CIPFA/SOLACE framework. The report detailed progress made on issues identified in the previous year's AGS, including actions related to the Housing Improvement Plan, TMO governance, and climate action. It also outlined emerging governance risks for 2026-27 and the medium term, such as financial sustainability and the impact of the macro-economic outlook. The AGS is a mandatory statement accompanying the council's Statement of Accounts.

Overview of Corporate Risk Management Process

This report provided an overview of the council's corporate risk management process, explaining its structured approach to managing uncertainty and supporting effective decision-making. The report outlined the council's risk management objectives, including embedding risk management into all key activities and ensuring transparent escalation of risks. It detailed the four key steps in the risk management process: risk identification, risk assessment, risk mitigation, and risk monitoring and review. The report also listed the key corporate risks facing the council, which align with the council's strategic priorities.

Housing Revenue Account (HRA) Governance and Financial Monitoring

This report provided an update on the HRA's governance arrangements, budget recovery, financial monitoring, and the forward budget-setting process for 2027-28. It detailed the HRA's revenue position for 2025-26, including income and expenditure, and highlighted the ongoing financial pressures. The report also outlined the Housing Investment Programme (HIP) and its funding sources, as well as the risks associated with construction cost inflation and higher interest rates. The committee was informed about the HRA budget for 2026-27, including savings requirements and emerging affordability risks.

Southwark360: Update on the Enterprise Resource Planning (ERP) Replacement Programme

This report provided an update on the Southwark360 Programme, which aims to replace the council's legacy SAP ERP system. The report detailed the programme's vision, procurement strategy, and governance model. It outlined the key programme milestones, including the progress of data migration, change management, and testing phases. The report also identified primary benefits related to core business processes, such as workforce empowerment, improved decision-making, and enhanced supplier and customer satisfaction. Key programme risks, including payroll testing and implementation, and the application support model, were also discussed.

Budget Process

This item provided an overview of the council's budget process, including its financial planning and management cycle, the budget-setting timetable, and planned community engagement activities for the 2027-28 budget and medium-term financial strategy. The report detailed the stages of the budget process, from the initial MTFS development to final approval by Council Assembly, and outlined the planned community engagement activities. The report also highlighted the estimated budget gap for the three financial years from April 2027 to March 2030.

Review of the Audit, Governance and Standards Committee Terms of Reference

The committee was scheduled to review proposed changes to its terms of reference, as set out in Part 3K of the council's constitution. These changes are in response to new statutory audit committee functions introduced by the English Devolution and Community Empowerment Act 2026. The report recommended that the committee approve these updates and recommend them to Council Assembly for formal adoption. The committee was also asked to consider whether to undertake preparatory work for the potential appointment of an independent member to the committee.