Here is a summary of the scheduled discussions for the Audit and Risk Management Committee meeting on 15 September 2025.

The agenda included a risk management update, review of the committee's annual report and work programme, and discussion of the City Fund and Pension Fund statements of accounts. Also scheduled for discussion were internal and external audits, and counter fraud measures.

Risk Management

The committee was scheduled to receive an update on risk management within the City of London Corporation, including the corporate and top red departmental risk registers. According to the report, since the last update:

• The number of corporate risks had decreased from 14 to 13, with one risk de-escalated to departmental level.
• The number of departmental red risks had decreased from 18 to 16, with two risks de-escalated.

It was noted that work was ongoing to review CR02 Loss of Business Support, and CR39 Recruitment and Retention, to ensure they remained aligned with current and emerging contexts.

The highest scoring corporate risk was CR16 Information Security at Red 24, with actions to mitigate this risk ongoing.

Audit and Risk Management Annual Report

The committee was scheduled to consider the Audit and Risk Management Annual Report 2024-2025. The report covered activity up to 31 March 2025.

Internal Audit Update

The committee was scheduled to receive an update on internal audit activity between 1 April 2025 and 30 June 2025.

City Fund and Pension Fund Statement of Accounts

The committee was scheduled to receive an update on the publication and audit of the 2024/25 Draft Statement of Accounts for the City Fund and Pension Fund.

Counter Fraud and Investigations Annual Report

The committee was scheduled to receive a report concerning the Counter Fraud & Investigations Annual Report.

New & Revised Anti-Fraud & Corruption Strategy

The committee was scheduled to receive a report concerning the new & Revised Anti-Fraud & Corruption Strategy.

Committee Work Programme

The committee was scheduled to receive a report concerning the work plan for the 2025-2026 Civic Year.

Outstanding Actions

The committee was scheduled to receive a report concerning outstanding actions.

Exclusion of the Public

The agenda included a motion to exclude the public from the meeting for certain items due to the likely disclosure of exempt information, as defined in the Local Government Act 1972.

Other Business

The agenda allowed for questions on matters relating to the work of the committee and any other business that the Chair, Alderman Prem Goyal CBE, considered urgent.

Non-Public Items

The agenda included several non-public items, including the non-public minutes of the previous meeting and a non-public appendix to be received in conjunction with the risk management update. There was also an opportunity for non-public questions and any other business that the committee agreed should be considered while the public was excluded.

City Fund and Pension Fund - Statement of Accounts, Audit Findings and external auditor's Annual Audit Report 2024-25

The committee was scheduled to consider the City Fund and Pension Fund – Statement of Accounts, Audit Findings and external auditor's Annual Audit Report 2024-25. The report provided an update on the audit of the Accounts, any changes and the Auditor's findings. The audited 2024-25 City Fund Statement of Accounts were for approval. This set of accounts reflected the changes agreed with the auditors as part of their work. The Audit Findings Reports from Grant Thornton were presented in respect of the City Fund audit and the Pension Fund audit. These documents summarise the results of the audit and include the auditor's recommendation and details of any audit adjustments which have been made to the accounts. A copy of the draft Management Representation letter for the Pension Fund was presented. The draft Management Representation letter for the City Fund was included within the Audit Findings Report. The external auditor's Annual Audit Report summarises all of the work that Grant Thornton have undertaken in relation to the City Fund during 2024-25. The Annual Audit Report includes their commentary on the City Fund's Value for Money (VfM) arrangements.

The Audit and Risk Management Committee was asked to:

• Recommend approval of the 2024-25 Statement of Accounts to Finance Committee.
• Delegate authority to the Chamberlain, in consultation with the Chairman and Deputy Chairman of the Audit and Risk Management Committee, approval of any material changes to the financial statements required before the signing of the audit opinion by Grant Thornton, which is expected by 30th September 2025.
• Consider the Audit Findings Report for the City Fund and Pension Fund 2024-25.
• Approve the management representation letter for the City Fund and the management representation letter for the Pension Fund.
• Consider the Auditor's Annual Audit Report 2024-25

The Pensions Committee was asked to:

• Consider the Audit Findings Report for the Pension Fund 2024-25.

The Finance Committee was asked to:

• Recommend approval of the 2024-25 Statement of Accounts to Finance Committee.
• Delegate authority to the Chamberlain, in consultation with the Chairman and Deputy Chairman of the Finance Committee, approval of any material changes to the financial statements required before the signing of the audit opinion by Grant Thornton, which is expected by 30th September 2025.
• Consider the Audit Findings Report for the City Fund and Pension Fund 2024-25.

The Local Government Pensions Board was asked to:

• Note the Audit Findings Report for the Pension Fund 2024-25

The draft, unaudited 2024-25 Statement of Accounts for the City Fund, which includes the accounts for the Pension Fund, were published on the City of London Corporation's website on 30 June 2025. Following the publication of the City Fund Statement of Accounts a period of public inspection was undertaken, as required by the Local Audit and Accountability Act 2014. The inspection period commenced on Tuesday 1st June and ran for 30 working days, concluding on 11th August 2025. During the inspection period, members of the public had the opportunity to inspect the accounts, and also to question the auditor or raise objections. No inspection requests, questions or objections were received during the public inspection period.

The audit of the 2024-25 Statement of Accounts commenced in June 2025 and has been undertaken by Grant Thornton.

The updated version of the 2024-25 Statement of Accounts for the City Fund and Pension Fund incorporated the following changes and adjustments to the City Fund accounts which have been identified during the audit and results in a total increase in Total Comprehensive (Income) and Expenditure of £90.4m due to:

• Pensions Liability – Application of asset ceiling under IFRIC 14¹, resulting in remeasurement of pensions liability
• Rents received in advance – Correction between long term and short-term balances
• Assets under construction (AUC) – The AUC balance in the draft accounts was classified as Property Plant & Equipment AUC, but some of it related to Investment Properties and Intangible assets. This is now reclassified on the balance sheet

The Audit Findings Report from prior year audits contained thirteen recommendations. Eight of these have now been implemented, and five remain open. Actions to address these remaining recommendations are in place for 2025- 26. Two additional recommendations have been made this year.

The auditors are required to report their commentary on the City Fund's arrangements under specified criteria in relation to VfM –

• Financial sustainability
• Governance
• Improving economy, efficiency and effectiveness (the 3 Es)

The 2023-24 VFM report included 25 improvement recommendations. Of those, sixteen have been addressed and are now closed, four have been superseded by the new recommendations for 2024-25 and five remain open. Of those that remain open, one was not due to take effect in 2024-25 and one is noted as in progress.