The Audit & Transparency Committee met to discuss the audit findings, value for money arrangements, and internal audit reports for the Royal Borough of Kensington and Chelsea. The committee approved the 2024-25 audited statement of accounts, delegating authority to the chair and the Section 151 Officer¹ to approve the final version after any further updates. They also reviewed progress against agreed actions and the committee's work programme for the year.

Audit Findings Report 2024/25

The committee reviewed the Audit Findings Report 2024/25 from Grant Thornton, which summarised the external auditors' observations on the audit of the council and pension fund accounts. Mike Curtis, Executive Director of Resources, introduced the report, noting that there were no significant issues related to the Pension Fund accounts. Darren Wells, Director at Grant Thornton, added that the quality of accounts presented for audit were of a good, high quality. Paul, also from Grant Thornton, said that they had completed all their fieldwork, and were now going through their closing processes on the pension fund accounts.

The report highlighted three large adjustments made to the council's accounts:

• A £1.930 million charge to the Comprehensive Income and Expenditure Statement (CIES) to rectify an incorrect accrual, affecting the General Fund balance.
• A £22.280 million adjustment from the revaluation of council dwellings transferred from Assets Under Construction, with no impact on the Housing Revenue Account (HRA).
• A £13.566 million reduction in the NNDR² Appeals Provision, impacting the CIES, with no effect on the General Fund.

Other adjustments related to presentational changes and smaller amendments. Councillor Claire Simmons questioned the increasing number of corrections compared to previous years, attributing it to the transition to the Oracle system and the two-week window where there was no system access.

Councillor Sidney Yankson raised concerns about the valuation of investment property for Ofisy, noting a discrepancy between the reported increase and national trends. He also questioned a £22.2 million statement related to Kelso Cochrane and Acklam Road properties that had not been revalued.

The committee was asked to note the findings and recommendations within the report, approve the 2024-25 audited Statement of Accounts, and delegate authority to the chair and Section 151 Officer to approve the final version if further updates were required.

Annual Report on the Council's Value for Money Arrangements 2024/25

The committee then discussed the Annual Report on the Council's Value for Money Arrangements 2024/25, which summarised Grant Thornton's review of the council's arrangements for securing economy, efficiency, and effectiveness in its use of resources. Darren Wells from Grant Thornton highlighted that no significant weaknesses were identified, but three improvement recommendations were made.

The report assessed the council's arrangements against three criteria:

• Financial sustainability
• Governance
• Improving economy, efficiency and effectiveness

Councillor Claire Simmons noted a savings target for 2025-26 and an improvement recommendation regarding internal audit planning and delivery. She asked if there were any resourcing issues with internal audit. She also asked about the 2% inflation assumption.

The committee was asked to note the findings and recommendation of the annual report and the management responses.

Assurance Report 2025/26

The committee considered the Assurance Report 2025/26, which provided an update on the work of the Internal Audit and Fraud Investigations teams up to August 2025. Six audits had been completed, with five receiving positive assurance opinions.

Tara Usher, Head of Internal Audit, drew attention to an error in the table on page 362, where a recommendation was incorrectly recorded against the Cemeteries and Burials contracts instead of St. Allen's nursery. She also noted that the Environment and Neighbours Deports and Landscapes, Capital Program Monitoring, and St. Anne's Nursery audits still needed to be followed up.

Cindy, Audit Manager, and Joe and Jamie, strategy and HR directors respectively, discussed the audit of the quality impact assessment and equalities, which received limited assurance. Cindy explained that the main recommendations were around data and training. Jamie, director of HR, said that the audit gave them a sense of purpose and direction in terms of where they want to go to next with regards to equality diversity inclusion.

Councillor Claire Simmons expressed disappointment that the equalities impact assessment was not already embedded across the council. She also said that the revised report was a little hard to navigate.

Forward Programme and Action Tracker

Finally, the committee reviewed the Forward Programme and Action Tracker. Councillor Claire Simmons noted that she could not recall receiving a new template for combined experience reporting and that she had not received clarification on performance materiality or amendments to the local code of corporate governance.