The Audit, Governance and Standards Committee of Southwark Council met on Monday 5 February 2024 to review a range of critical governance and financial matters. Key discussions included the findings of a Corporate Peer Challenge, the progress of the in-housing of the leisure contract, and updates on risk management, cyber security, and internal audit work. The committee also formally adopted a revised Code of Corporate Governance.

Southwark Council Corporate Peer Challenge

The committee received an update on the Local Government Association's Corporate Peer Challenge report and the council's action plan, which was agreed by Cabinet on 17 January 2024. Althea Loderick, the Chief Executive, and Rhona Cadenhead presented the findings. Members had questions for the officers, and it was agreed that the council would ensure publicly visible SMART targets for the housing repairs plan, with named officers responsible for their delivery.

In-housing of the Leisure Contract Update

Toni Ainge, acting Strategic Director of Environment, Neighbourhoods and Growth, and Dave Pugh, Head of Leisure Insourcing, presented a report on the transfer of the leisure service and its first seven months of operation. The committee noted the information provided, and officers undertook to circulate next year's expected financial targets to committee members.

Risk Management and Insurance

Officers presented the annual report on corporate risk and insurance. The committee noted the report and reviewed the current corporate risk register, confirming they would offer no comments to officers prior to its publication by the Strategic Director of Finance.

Southwark Construction - Retrospective Contract Variations

The committee received a report on retrospective contract variations for Southwark Construction projects. Members noted that the current governance process is not fully aligned with construction routes or contracts, leading Southwark Construction to utilise contract standing orders for retrospective cost confirmations. The committee also noted the actions being taken to enhance operational and governance arrangements for new build projects to mitigate future unforeseen costs. Southwark Construction will move to a centrally managed contingency fund with stricter controls.

IT Governance Update - Cyber Security

An update on the council's cyber security status, threats, and mitigations was presented. The committee noted the actions being taken as outlined in the report.

2021-22 Audit Findings Reports for London Borough of Southwark and Pension Fund

Grant Thornton presented their updated audit findings report for 2021-22 for both the council and the Pension Fund. The committee considered the matters raised and noted the adjustments to the main accounts and Pension Fund accounts. They also approved the letters of representation for the council and pension fund required by Grant Thornton to conclude the audit of the 2021-22 statement of accounts. Officers undertook to provide an action plan for internal improvements after the 2022-23 accounts have been signed off.

Auditor's Annual Report on Southwark Council 2021-22

Grant Thornton presented their annual report for 2021-22. The committee noted the report and thanked Grant Thornton for their work.

Informing the Audit Risk Assessment for the Pension Fund 2022/23 and External Audit Plan for the Southwark Pension Fund 2022/23

Grant Thornton presented the audit risk assessment for 2022/23 and the external audit plan for the Southwark Pension Fund for 2022-23. The committee noted both reports.

Internal Audit Plan and Strategy for Internal Audit and Internal Audit Charter

BDO presented the proposed internal audit plan and strategy for 2024-25. Members had questions for BDO, and officers undertook to circulate comments and proposals on the repairs improvement plan and to clarify the approach to auditing housing and street lighting systems. The committee noted the report.

Progress Report on the Work of Internal Audit

BDO presented a progress report on the work of internal audit. The committee noted the report.

Progress Report on the Work of Anti-Fraud

BDO presented a progress report on anti-fraud work. The committee noted the report.

Review of Complaints Made Under the Members' Code of Conduct in 2023

Officers presented a report on complaints made under the Members' Code of Conduct in 2023. The committee noted that there was a decrease in the number of complaints received, with all being dealt with by the monitoring officer without formal investigation or breach findings.

Report on Operational Use of Regulation of Investigatory Powers Act

Officers presented a report on the operational use of the Regulation of Investigatory Powers Act 2000 (RIPA) in 2023. The committee noted the report.

Annual Report on the Work and Performance of the Audit, Governance and Standards Committee in 2023-24

Officers presented the committee's annual report on its work and performance in 2023-24. The committee agreed to forward the report to all councillors and to consider the CIPFA assessment questionnaire in June 2024.

Annual Work Programme for the Following Year (2024-25)

Officers presented the draft work programme for 2024-25. Members had questions, and officers undertook to include a report on governance workings in HR and to discuss the programme of governance conversations. The committee agreed to bring the annual work programme back in June 2024 to confirm the format of governance conversations and agreed the work programme for 2024-25.

Nominations of Non-Voting Co-opted Members of the Civic Awards Sub-Committee for 2023-24

Officers presented nominations for co-opted members of the Civic Awards Sub-Committee. The committee agreed to select three nominations plus the position held for the Civic Society.

Review of Code of Corporate Governance

Officers presented a revised Code of Corporate Governance. The committee formally adopted the revised code with no changes.