The Audit and Governance Committee of Newham Council met on Wednesday 05 November 2025 to discuss the council's best value response, the work of the Transformation and Improvement Board, and internal audit updates. Key decisions included noting the progress on the Best Value Response plan, endorsing the council's commitment to improving services for residents, and receiving updates on various internal audit reports concerning housing voids, commercial waste, and gas servicing.

Quarterly Update on the Best Value Response

The committee received the second quarterly update on the council's response to the non-statutory Best Value Notice issued by the Ministry of Housing, Communities and Local Government in May 2025. Maria G. Christofi, Interim Assistant Chief Executive of Change and Improvement, presented the Delivering Best Value for Our Residents Plan, which outlines improvement and transformation priorities up to May 2026.

Key progress highlighted included:

• Stabilising Senior Leadership: Appointments of interim and permanent senior leaders, including an Interim Chief Executive, and progress on restructuring Tiers 2 and 3 posts.
• Culture Change: Development of a corporate Culture Change Plan, building on the LGA Corporate Peer Challenge recommendations, with a focus on strengthening member/officer relations and addressing disappointing staff survey results.
• Financial Sustainability: A forecast £4 million underspend for the current year, despite pressures in adult and children's services. The budget-setting process for 2026/27 has commenced, with a projected £53 million funding gap.
• Housing Services Improvement Programme: Positive progress in addressing repairs backlogs and safety concerns, with an encouraging increase in tenant satisfaction to 71%. The council is exploring a Voluntary Undertaking with the Regulator for Social Housing.
• Transforming Newham For the Future (TNFF): Development of a broader corporate approach to transformation, including establishing a Transformation Portfolio and Programme Management Office (PMO). The Corporate Contact Centre met its KPI of 85% of calls answered for the first time in three years.
• LGA Corporate Peer Challenge Action Plan: 32 out of 38 actions are now complete, with the remaining six, including the Constitution Review and Asset Strategy, progressing well.

The committee was recommended to endorse the Delivering Best Value for Our Residents Plan and note the progress made.

Update on the Work of the Transformation and Improvement Board

The committee received an update on the work of the Newham Transformation and Improvement Board (NTIB), presented by Maria G. Christofi in the absence of Rob Whiteman, Chair of the NTIB. The NTIB's role has been strengthened in light of the Best Value Notice, with a focus on providing quarterly assessments of the council's progress.

Key points from the NTIB's September assessment included:

• Clearer Narrative on Outcomes: A need for sharper prioritisation and complementary performance management metrics with clear accountabilities.
• MTFS and Budget Planning: Concerns about fatalism regarding the budget gap and a recommendation for more active pursuit of transformation business cases and savings.
• Benefits Realisation: A recommendation to ensure benefits identified by the PwC programme are implemented, as progress has been slower than expected.
• Portfolio Management Office (PMO): A recommendation to bring together transformation and change programmes into a PMO approach.
• External Advice: Encouragement to use specialist external advice to complement internal capabilities.
• Temporary Accommodation: A recommendation to explore costs and processes to reduce pressures, including reviewing caseloads, assessment processes, cost variations, procurement outcomes, and linking with the asset management strategy.
• Member and Governance Development: A call for more active planning to address LGA recommendations and improve member/officer working.
• Corporate Landlord Role: A recommendation to develop an effective corporate landlord role with strong data to enable asset rationalisation.
• Housing Regulatory Issues: A call to mainstream the response to housing regulatory issues into the council's improvement and transformation approach.

The NTIB noted significant challenges remaining in housing data quality, resident safety and outcomes, procurement processes, and risk management.

Quarterly Internal Audit Update

Nicole Metivier, Audit Manager, presented the quarterly internal audit update, covering work completed up to 30 September 2025. The report included five limited assurance reports:

• Housing Voids: Received a Limited Assurance opinion with two priority 1 findings concerning segregation of duties, record keeping, and a lack of interim inspections. Management has provided an action plan to address these.
• Commercial Waste Income: Also received a Limited Assurance opinion, with a priority 1 finding related to incorrect invoices and data discrepancies, leading to an estimated £200,000 in lost revenue. A new customer management system, Alloy, has been implemented, and an action plan is in place.
• Alternative Provision: Received a Limited Assurance opinion with two priority 1 findings regarding the lack of a Service Level Agreement (SLA) and the absence of strategic risk reporting for the Pupil Referral Unit (PRU). The school's Head Teacher will provide a verbal update.
• Gas Servicing: Received a Limited Assurance opinion with four priority 1 findings concerning the integration of service delivery teams, quality assurance processes, discrepancies in property data, and inaccurate servicing dates for void properties. Management has provided an update on actions taken.
• Temporary Accommodation Income and Arrears: Received a Reasonable Assurance opinion with three priority 2 recommendations.
• Southern Road Primary: Received a Limited Assurance opinion with two priority 1 findings regarding business interests and IR35 contracts.

The report also summarised schools' audit findings, indicating a decline in the control environment compared to the previous year, and provided an update on outstanding audit recommendations.

Other Key Discussions

• Treasury Management Mid-year Report: Andrew Ward, Deputy Director of Finance, presented the mid-year report, noting that the council's net treasury debt portfolio stood at just over £1.3 billion. No breaches of prudential indicators were anticipated.
• EY Report - External Audit of Housing Benefit Assurance Process: Conrad Hall, Corporate Director of Resources, informed the committee that EY has withdrawn from the Housing Benefit Assurance Process nationally, impacting the audit of housing benefit claims. The council will need to procure another firm.
• Quarterly Report on the Savings Delivery Programme: The report indicated that 25% of savings targets for 2025/26 had been delivered, with 66% on track and 10% showing slippage.
• Annual Complaints Report 2024/25: Olivia Shaw, Assistant Director of Resident Experience, presented the report, highlighting an increase in Stage 1 corporate complaints received and a slight decrease in timeliness. The report also detailed the council's performance in comparison to other London Boroughs regarding Local Government and Social Care Ombudsman (LGSCO) cases, noting a satisfactory remedy rate of 29%.
• Quarterly Report of Contract Waivers: Alison Chessell, Head of Procurement, reported on two approved waivers totalling approximately £323,490, citing reasons such as variations due to project delays and urgency.
• Year Ahead Forward Plan: The committee noted the forward plan, which includes updates on the Tell Jane service and HR culture, as well as a report on the Strategic Transformation and Improvement Board.
• Human Resources Update Report: Gordon McFarlane, Director of Human Resources & Organisational Development, provided updates on the use of agency staff, the Tell Jane whistleblowing service, themes from senior officer exit interviews, and the use of settlement agreements. The report highlighted ongoing reliance on agency staff, particularly in social work roles, and efforts to improve organisational culture and transparency.
• Quarterly Counter Fraud Progress Report: Nick Sharp, Head of Counter Fraud, reported on successful housing fraud investigations, leading to the recovery of 38 properties and notional savings of £1,596,000. Council Tax investigations had identified £299,590 in underpaid tax.
• Quarterly Update on Risk Management and Risk Register: The committee reviewed the Corporate Risk Register, noting the addition of a new risk concerning information governance and the removal of the cost of living risk due to changing economic circumstances.

The meeting concluded with the committee noting the reports and agreeing to the exclusion of the press and public for the remaining agenda items.