The Audit and Risk Management Panel met on Wednesday, 3 September 2025, to discuss the Council's cyber risk position, the implementation of the Procurement Act 2023, and the Strategic Risk Register. The Panel also reviewed the draft Annual Governance Statement for 2024/25 and the Draft Statement of Accounts for 2024/25.

Cyber Risk Position

The Panel was asked to agree to consider the report on the cyber risk position in a closed session. This item was discussed in private due to its sensitive nature, following concerns raised in previous meetings about the increasing risk of cyber attacks on public sector organisations. The strategic risk register indicated an upward trend in this area.

Update on the Implementation of the Procurement Act 2023

The Panel considered the actions taken by officers to implement the Procurement Act 2023, which represents the most significant changes to public sector procurement in 30 years. The Act, enacted on 24 February 2025, focuses on transparency, managing conflicts of interest, supporting SMEs, and social value. Key actions taken by the Procurement Team include revising Contract Standing Orders, purchasing and implementing a new eProcurement System, establishing a Strategy and Contract Management Team, and rolling out a new Contract Management Framework and training. A social value system called Match My Project (MMP) has also been implemented, allowing suppliers to offer social value services to local community organisations. The Panel was asked to note and comment on the report.

Strategic Risk Register

The Panel was asked to consider and comment on the Royal Borough's Strategic Risk Register, which was agreed by the Greenwich Management Team (GMT). The register identifies key risks threatening the Council's plans and strategies, along with the controls and mitigating actions in place. GMT scrutinises these risks regularly to ensure they remain relevant and that identified controls and mitigating actions are effective. No new or escalated risks were identified for inclusion in this reporting cycle. The register will also be presented to Cabinet and Full Council.

Annual Governance Statement 2024/25

The Panel received the draft Annual Governance Statement (AGS) for 2024/25 for comment prior to its approval alongside the Statement of Accounts. The AGS explains how the Council has complied with its governance framework and is consistent with the principles of good governance set out in the CIPFA/SOLACE Framework. It includes the results of a review of the effectiveness of the system of internal control. The statement highlights areas for improvement, including the Medium Term Financial Strategy (MTFS), compliance with health and safety standards in social housing, and cyber security. The Council is continuing to work with the Regulator of Social Housing to address issues raised in a regulatory notice.

Internal Audit and Anti-Fraud Performance 2024/25 (Q1-Q3)

The Panel noted the Internal Audit and Anti-Fraud performance for the period 01 April 2025 to 30 June 2025 (Q1). Of the 66 audits planned for 2025/26, work commenced on 19 (29%), with 4 (6%) completed. The report provided a comparison of Q1 performance with previous years, a summary of completed audits including assurance opinions and recommendations, and the status of all audits in the plan. Follow-up actions on outstanding recommendations were also reported. The Anti-Fraud team received 25 referrals relating to Housing Benefit/Council Tax Support fraud, 8 allegations of tenancy and housing related fraud, and commenced investigations into 20 corporate-related matters, primarily Blue Badge misuse.

Draft Statement of Accounts 2024/25

The Panel considered and commented upon the authority's draft Statement of Accounts for the year ended 31 March 2025, including the Pension Fund Accounts. The draft accounts have been prepared in accordance with International Financial Reporting Standards (IFRS) and the Code of Practice on Local Authority Accounting. The report outlined the timetable for the consideration and approval of the accounts, including the inspection period for public rights. An unqualified audit opinion is anticipated following Council's approval of the audited accounts. The Statement of Accounts includes detailed notes on expenditure and funding, reserves, property, plant and equipment, financial instruments, pension schemes, and related party transactions.

The meeting also included the confirmation of minutes from the previous meeting held on 16 July 2025 and a review of the action log. Apologies were received from Councillor Hyland. Thomas Tyson was welcomed as a new independent member.