The Audit & Governance Committee of Croydon Council met on Thursday, 1 February 2024, to review progress on the Annual Governance Statement action plan, discuss the Dedicated Schools Grant deficit management plan, and receive an update on whistleblowing disclosures. Key decisions included noting the progress on financial management, information management, and procurement improvements, as well as the ongoing efforts to manage the Dedicated Schools Grant deficit.

Annual Governance Statement (Update on Action Plan 2022/23)

The committee received an update on the progress of the Annual Governance Statement (AGS) 2022/23 Action Plan. Significant progress has been made in several key areas, including financial management, with substantial work completed on recommendations from the External Auditors' Section 24 statutory recommendations and interim reports for 2019-2022. The council is working towards finalising the 2019-20 accounts by February 2024, with subsequent years planned for completion by September 2024.

Improvements in capital project management were highlighted, with the Capital Internal Control Board overseeing governance and reporting to Cabinet through monthly Financial Performance Reports. The Verto project management software has been implemented to enhance oversight. A new Capital Strategy for 2023-29 has been approved, outlining governance, funding, and risk management for capital programmes.

Housing improvements are progressing through the Housing Transformation Programme, with a focus on repairs, homelessness prevention, and tenant engagement. The Regina Road regeneration programme has appointed key consultants.

The council's governance framework is being strengthened through ongoing reviews of the Constitution and Directorate Schemes of Delegation. Significant progress has been made in information management following an Enforcement Notice from the Information Commissioner's Office (ICO). Backlogs in Freedom of Information (FOI) and Subject Access Requests (SAR) have been reduced, with additional staffing and training implemented. The council is now meeting its 90% FOI response time target, and the ICO's oversight is expected to conclude soon.

The officer induction programme has been relaunched, and a People and Cultural Transformation Plan is being developed. Procurement and contract management are being improved through a revised operating model, skills development, and clearer governance, with revised Contract Standing Orders due for approval in April 2024. The council is also working to embed lessons learned from the Report in the Public Interest (RIPI 2) regarding the refurbishment of Fairfield Hall, with planned sessions and presentations to disseminate these lessons. The Exit Strategy Action Plan, addressing governance, culture, financial strategy, service performance, and capability, is being monitored, with most actions on track for completion by March 2024.

Risk Register Entry 'Deep Dive': Sustainable Parking Services Income

The committee reviewed a 'deep dive' into risk PR0013, 'Sustainable Parking Services Income', which has been a long-standing 'red risk' on the council's corporate risk register. The risk has been downgraded from 'red' to 'amber' due to increased budget sustainability and certainty around income from ANPR cameras. However, the committee noted that the risk register entry requires rewording. Challenges remain, including the impact of socio-economic conditions post-COVID-19, inflationary pressures, and a reduction in commuting, which have affected parking income. The presentation included the 2023/24 Parking Income Budget, totalling £26.186 million, and outlined a new draft Parking Policy focused on customer service, fairness, efficiency, and transparency. Existing controls include reviews of parking fees and charges, monthly income monitoring dashboards, and reconciliation processes. Future controls involve adopting the new Parking Policy and implementing its associated action plan over two years.

Dedicated Schools Grant (DSG) Deficit Management Plan

An update was provided on the Dedicated Schools Grant (DSG) Deficit Management Plan, which has been in place since 2019/20. The plan is being implemented successfully, although there is a risk associated with the increasing number of children and young people with complex Special Education Needs. The report detailed performance against key metrics, including meeting DfE Safety Valve financial and non-financial targets, compliance with accounting regulations, and the robustness of SEND budget monitoring. The council received a £10.960 million cash intervention from the DfE in March 2023 as part of a 'Safety Valve' agreement, with further payments contingent on meeting financial targets. All non-financial targets, such as implementing the Locality SEND Support model and increasing local SEND provision, are on track. The overall DSG deficit is projected to be extinguished by 2026/27. Key areas reporting overspend include out-of-borough and independent school placements due to increases in top-up funding for complex cases. Challenges were also noted with the implementation of a new education system, Synergy, from Capita One.

Quarterly Whistleblowing Update

The committee received an update on whistleblowing disclosures for the period January 2023 to December 2023. Seven disclosures were reported, an increase from the previous period, suggesting greater staff awareness of the policy. The disclosures covered various issues, including the misuse of council vehicles, alleged financial impropriety in a school, and concerns about recruitment processes. Some investigations were upheld, leading to disciplinary action and policy changes, while others were not substantiated. The report noted that the increase in disclosures indicates a positive trend towards greater openness and transparency within the council. The committee requested that future reports include benchmarking data and comparison with previous years' figures.

The meeting also noted the Audit and Governance Committee Action Log, the Committee Work Programme, and the Assurance Mapping Document. The minutes of the previous meeting held on 30 November 2023 were approved.