The Audit, Governance and Standards Committee of Kingston upon Thames Council met on Wednesday 25 June 2025 to review the council's audit plans, internal audit performance, treasury management activities, and complaints regarding the Member Code of Conduct. Key decisions included noting the external auditors' plans for the 2024/25 financial year and the annual internal audit report, which provided an overall opinion on the council's governance, risk management, and control processes.

2024/25 Audit Plan

The committee received an overview of the external auditors' plans for the audit of the council's 2024/25 statement of accounts and the pension fund accounts. KPMG, the external auditor, presented draft audit plans, highlighting significant risks such as management override of controls, the valuation of land and buildings, and the valuation of the pension fund obligation. A new risk identified for this year relates to the transition to the IFRS 16 accounting standard. The committee was informed that the audit work is in progress, with a draft plan presented, and that any changes would be reported back. The committee noted the external auditor's plans for the audit of the 2024/25 statement of accounts and pension fund accounts.

Annual Internal Audit Report

Andrew Hamilton, Head of the Shared Audits Partnership and Chief Audit Executive, presented the Annual Internal Audit Report for 2024/25. His overall opinion was that reasonable arrangements are in place for risk management, internal control, and governance. The report indicated that 23 audits were completed, representing 88% of the planned work. Of these, four received a substantial opinion, nine a reasonable opinion, and seven a limited opinion. The increase in limited opinions was noted, though Mr. Hamilton stated he was not significantly concerned, as some were in new audit areas or low-risk areas. Areas highlighted as of more concern, receiving limited assurance, included homeless and temporary accommodation, building safety, and health and safety. A total of 126 recommendations were made, with 24 being priority one. All priority one recommendations were agreed by management, with only one outstanding at the end of the financial year. The committee noted the report and the Chief Audit Executive's annual opinion.

Annual Treasury Management Report

Sue Cuerden, Executive Director of Corporate Services and S151 Officer, presented the Annual Treasury Management Report for 2024/25. The report detailed the council's borrowing and investment activities, confirming that all operations were within the approved Treasury Management Strategy and prudential indicators. The council's total external debt at 31 March 2025 was £327.39 million, with an average interest rate of 3.66%. The council generated just under £4 million in income from its investments, achieving an average rate of return of 5.16%. The report also discussed interest rate forecasts and the council's investment policy, which prioritises security and liquidity over yield. The committee noted the Treasury Management Annual Report and the council's performance against its prudential indicator limits.

Member Code of Conduct Complaints Annual Report 2024/25

Michelle Beaumont, Head of Democratic Services and Elections, presented the annual report on complaints made under the Member Code of Conduct. For the 2024/25 municipal year, five complaints were received. Of these, four were rejected at the preliminary stage, and one was undergoing formal investigation and was pending a decision from the monitoring officer. The report detailed the types of complaints, with unacceptable conduct at Council/Committee and bullying and/or intimidation being the most frequent categories in the current year. The committee received this report for information.