Here is a summary of the Audit & Governance Committee meeting held on 18 September 2025, where members reviewed the external audit plans, discussed lessons from auditors' annual reports, and received updates on various council programmes and risk management. The committee also approved the minutes from previous meetings and discussed the appointment of commissioners to the council.

External Audit Plans

The committee reviewed the 2024-25 annual accounts external audit plan presented by Grant Thornton UK Advisory & Tax LLP. The plan included an audit approach, identified risks, and information on materiality and value for money arrangements. The estimated audit fee for the council audit is £628,679 and £102,945 for the pension fund audit. The auditors issued a disclaimed audit opinion for the council's annual accounts between 2019-20 and 2023-24, and as a result, the 2024-25 statement of accounts will not receive an unqualified opinion.

Lessons from Auditors' Annual Reports

The committee considered a report titled Lessons from 2023/24 auditors' annual reports by Grant Thornton, which provided insights on value for money and governance based on a review of 100 auditors' annual reports. The report highlighted challenges related to financial sustainability, governance, and housing, and also provided lessons for organisations undergoing local government reorganisation.

Key findings included:

• Financial sustainability remains a major challenge for most councils.
• Common governance challenges include gaps in risk management, high vacancy rates in internal audit, decentralised contract management, under-supported project management, and the need for stronger, timelier data on performance.
• Councils with Housing Revenue Accounts face challenges in identifying, costing, and managing high volumes of backlog repairs and maintenance work needed to meet regulatory standards.

External Audit Progress Report and Sector Updates

The committee received a progress report on the 2024-25 external audit, including sector updates from Grant Thornton. The sector updates section focused on the implementation of International Financial Reporting Standard IFRS16¹, requiring substantial changes to how leases are accounted for.

Interim Auditor's Annual Report and Value for Money Assessment

The committee considered the Interim Auditor's Annual Report for 2024-25, including the interim Value for Money assessment from Grant Thornton. The report highlighted a continuing key recommendation related to financial sustainability, as well as six improvement recommendations. The Value for Money assessment rated financial sustainability as Red due to significant weaknesses in arrangements, governance as Amber, and improving economy, efficiency and effectiveness as Amber .

Annual Treasury Management Report

The committee reviewed the Council's Treasury Management activities for the year 2024/25, prepared in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) codes of practice². The report reviewed compliance with the Treasury Management Strategy Statement, Capital Strategy and Annual Investment Strategy, and demonstrated compliance with the CIPFA Code on Treasury Management and Prudential Code for Capital Finance.

Oracle Improvement Programme Update

The committee received an update on the progress of the Oracle Improvement Programme. The update included progress on key improvements delivered to the finance, HR, and procurement modules, as well as the focus for the next six months. Key achievements included the implementation of an expenses reimbursement module, improvements to accounts receivable and collections, and enhancements to the planning and budgeting module.

Revenue and Capital Monitoring Improvements

The committee received a further update on progress against the recommendations from two external reviews: the Opening the Books reports by Worth Technical Accounting Solutions, and the Capital Framework Improvement Plan by PWC. The update noted that 60 recommendations (79%) have been completed to date out of the total of 76 recommendations from the Opening the Books reports, and eight recommendations (89%) have been completed to date out of the total nine recommendations from the Capital Framework Improvement Plan.

Corporate Risk Management

The committee reviewed the corporate risk register as at September 2025, aligned to the strategic outcomes of the Mayor's Business Plan. The register contained details of all of the open Part A risks, with complementary Part B appendices containing details of risks with exempt information.

Appointment of Commissioners

Councillor Stephen Lawrence-Orumwense, Director of Legal Services and Monitoring Officer, provided the committee with an update on the appointment of commissioners at Croydon Council. He referred to three key documents: a letter sent to the Chief Executive on 17 July, a formal direction issued under the Local Government Act, and an explanatory memorandum outlining the direction. The Council had been assigned three commissioners with legal authority and one political commissioner, all of whom were accountable to the Secretary of State. While the Council retained its decision-making powers, the commissioners were tasked with providing oversight. Councillor Jane West, the Corporate Director of Resources and Section 151 Officer, stated that early conversations with the commissioners had indicated that officers should continue working as usual.