The Governance, Audit, Risk Management and Standards Committee (GARMS) convened to discuss several key reports, including the statement of accounts, health and safety, risk management, and treasury management, and appointed Councillor Gazanfa Ali as Vice-Chair. The committee approved the establishment of a Standards Working Group, and agreed to recommendations regarding the statement of accounts, housing complaints, the corporate risk register, the anti-fraud report, the GARMS committee annual report, the draft annual governance statement, and the internal audit annual report. Discussions were detailed, particularly around financial performance, audit processes, and risk mitigation strategies.

• Appointment of Vice-Chair Councillor Gazanfa Ali was appointed as Vice-Chair of the committee, following a nomination by Councillor Dan Anderson and seconded by Councillor Dean Gilligan.

• Establishment of the Standards Working Group The committee agreed to establish the Standards Working Group, an advisory group comprising one member from each political group on the council and an independent person chairing the meetings.

• Statement of Accounts 2024-2025 The committee reviewed the draft Statement of Accounts 2024-2025 and the audit progress report from Mazars, the external auditor. Sharon Daniels, Strategic Director of Finance, presented the report, highlighting a £1.5 million surplus added to the earmarked reserve. Key points included:

  • The council published the draft accounts before the 30 June deadline.
  • The audit work was scheduled to take place between July and November.
  • Purvi, from the finance team, noted two major changes: the ceiling effect as per IS-19 and IFRIC-14[^2] and the introduction of IFRS-16[^3], which resulted in an additional £19 million in assets with corresponding liabilities. [^2]: IS-19 and IFRIC-14 are accounting standards related to employee benefits and the limitation on measuring a defined benefit asset. [^3]: IFRS-16 is an international financial reporting standard specifying how to account for leases.
  • Suresh Patel from Mazars explained the move from a disclaimed audit opinion to an unqualified opinion over a couple of years, following guidance from the National Audit Office[^4]. [^4]: The National Audit Office scrutinises public spending for Parliament and publishes reports on its findings.
  • Harry from Mazars mentioned additional fees for new significant risk items, including the migration of payroll data from Low Key to Zealous and the implementation of IFRS 16.
  • Councillor Ghazanfar Ali sought clarification on other loans listed on page 74 of the statement, and a downward revaluation of council dwellings.
  • Councillor Kanti Rabadia questioned the additional fees for risks already known and the PSA's[^5] awareness of these issues. [^5]: PSAA likely refers to Public Sector Audit Appointments Limited, an independent company that appoints auditors for local government bodies in England.

  The committee agreed to the recommendations set out on page 16 of the agenda.

• Annual Health and Safety Report for 2024-2025 Clyde and Stacy presented the Annual Health and Safety Report for 2024-2025, noting a 16% decrease in reported incidents. Key discussion points:

  • There were four RIDDOR incidents, the same as the previous year.
  • A notice of contravention was issued by the Health and Safety Executive[^6] (HSE) due to breaches around legionella control at Glebe School. [^6]: The Health and Safety Executive is a UK government agency responsible for the encouragement, regulation and enforcement of workplace health, safety and welfare, and for research into occupational risks.
  • The 'Don't Ignore It, Report It' campaign was launched to promote incident reporting.
  • Training was carried out for the senior leadership team.
  • The employee assistance programme (EAP) utilisation rate was 7.3%, below the sector benchmark.
  • Councillor Dean Gilligan asked about the rollout and timeframes for improved loan working safety measures.
  • Councillor Dan Anderson questioned the context of fire risk assessments and coverage.
  • Councillor Kuha Kumaran asked about the asbestos arrangement review and requested previous years' incident data for comparison.
  • Councillor Baradia asked about the verdict of the asbestos arrangements.

  The committee agreed to the recommendations set out on page 190 of the agenda.

• Annual Housing Complaints Report 2024/2025 Megan presented the Annual Housing Complaints Report 2024/2025, highlighting a significant increase in housing complaints and a decrease in response timeliness, attributed to the implementation of a new housing management system. Key points:

  • There were 458 stage one complaints and 64 stage two complaints.
  • Tenant satisfaction with complaint handling increased.
  • Measures were developed to improve response quality and timeliness, including weekly complaints meetings and monthly learning from complaints meetings.
  • Councillor Dan Anderson asked about mitigations put in place ahead of the system transition and lessons learned.
  • Alex, the director, confirmed that the IT department was integrated into the system implementation process, and lessons were being learned to minimise disruption to residents.
  • The committee agreed to the recommendations set out.

• Corporate Risk Register Update Q4 2024-2025 Alex presented the Corporate Risk Register Update Q4 2024-2025, identifying four red risks:

  • Increasing homelessness and demand for temporary accommodation.
  • Inability to deliver the council's approved MTFS[^7] over the next three years. [^7]: MTFS is likely to refer to Medium Term Financial Strategy.
  • Failure to meet the demand for adult social care within the budget.
  • Failure to fulfil the council's health and safety duties.

  Alex noted that London councils overspent by approximately £0.5 billion on temporary accommodation. He also mentioned that there was less money for London as part of the local government settlement. The committee agreed to the recommendations.

• Corporate Anti-Fraud Team Annual Report 2024-2025 Justin presented the Corporate Anti-Fraud Team Annual Report 2024-2025, summarising that the team received 181 fraud referrals, closed 152 cases, and achieved £1.8 million in fraud loss avoidance. Key discussion points:

  • The team achieved 4 out of 5 key performance indicators.
  • The return on investment for the team was approximately 8 to 1.
  • Councillor Dan Anderson asked about the trust in the whistleblowing policy.
  • Justin clarified that the whistleblowing policy is reported on separately and is overseen by HB Public Law.
  • Councillor Kuha Kumaran suggested including a separate column for cyber technology crime.
  • Councillor Ali asked for clarification on creditor matches.

  The committee agreed to the recommendations on page 305.

• GARMS Committee Annual Report 2024-2025 Tracy presented the GARMS Committee Annual Report 2024-2025, summarising the committee's work over the past year. Key points:

  • The committee received reports on all areas of its responsibility.
  • Three changes were made to the terms of reference to reflect new global internal audit standards.
  • The committee approved the report and updated terms of reference.

• Draft Annual Governance Statement 2024-2025 Tracy presented the Draft Annual Governance Statement 2024-2025, identifying four areas requiring improvement:

  • Adult social care
  • Children's social care
  • The school's PFI contract
  • Significant cost pressures

  Councillor Dean Gilligan asked about the support from Islington for children's social care. The committee agreed to the recommendations.

• Internal Audit Annual Report 2024-2025 and Internal Audit Strategy 2025-2028 Tracy presented the Internal Audit Annual Report 2024-2025 and the Internal Audit Strategy 2025-2028. Key points:

  • 80% of recommendations were fully implemented, and 15% were good.
  • The strategic plan sets out the mission, purpose, and vision for the next three years.
  • Councillor Ali asked about the deferral of the consul tax audit.
  • Councillor Gilligan questioned the prioritisation of those in need.
  • Councillor Kumaran asked about the asbestos arrangements and the increase in cyber technology crime.

  The committee agreed to the recommendations on page 345.

• Treasury Management Annual Outturn Report 2024-25 Sharon presented the Treasury Management Annual Outturn Report 2024-25, highlighting that the council did not need to borrow as expected due to internal financing. Key points:

  • Capital expenditure was £66 million, lower than the estimated £175 million.
  • The borrowing requirement was £26 million, but no new borrowing was undertaken.
  • The council benefited from the Bank of England rate not dropping as drastically as expected.
  • Councillor Ali asked about variances in table one.
  • Councillor Kumaran sought clarification on the differences in debt figures and the reconciliation between the £412 million and £447 million debts.

  The committee agreed to the recommendations set out on page 364.

• Exclusion of the Public and Part II Item The committee moved into a closed session to discuss a confidential appendix related to the Treasury Management Annual Outturn Report 2024-2025.