The Audit, Governance and Standards Committee were scheduled to meet on Thursday 13 November 2025 to discuss treasury management, external and internal audits, fraud prevention, and the appointment of independent advisors. The committee was also scheduled to discuss the extension of terms for existing independent members.

External Audit of Accounts

The committee was scheduled to receive the Interim Auditor's Annual Report from KPMG on the external audit of the 2024/25 Statement of Accounts and Pension Fund Accounts. The report sets out the auditor's commentary on the council's arrangements to secure economy, efficiency and effectiveness in its use of resources. It also summarises procedures undertaken to date on key financial statement risks identified in the audit plan.

The report noted that the Code of Audit Practice requires the Auditor's Annual Report to be issued no later than 30 November each year. In order to comply with this requirement, the Auditor's Annual Report was issued prior to the completion of work in relation to the financial statements and other information. Consequently, conclusions had not been reached in respect of these areas.

The committee was to consider delegating authority to Councillor Lynn Henderson, Chair of the Audit, Governance & Standards Committee, and the Council's Executive Director of Corporate Services to approve the final version of the audited accounts.

Treasury Management

The committee was scheduled to discuss the council's treasury management activities during the first six months of the financial year. Treasury management is defined as:

The management of the local authority's borrowing, investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.

The report included an economic overview provided by MUFG, the council's treasury advisors. Their latest interest rate forecast, updated on 11 August, anticipates a fall in short, medium and long-dated interest rates over the next year or two. The report also included details of the council's debt management and cash management activity.

The committee was asked to note the Treasury Management 2025-26 Mid Year Report and the performance against prudential indicators, as detailed in Annex 1.

Internal Audit Update

The Head of the South West London Audit Partnership was scheduled to provide the committee with assurances around the council's control environment, based on work carried out against the 2025/26 Internal Audit plan.

As of 30 October 2025, seven audits had been completed to final report stage, two were at draft stage and a further seven were at fieldwork stage. Six audits had been added to the plan, and three had been cancelled or carried forward to the 2026/27 plan.

One audit, Cash and Bank, had been finalised with a Limited assurance opinion, with two Priority 1 recommendations made. One related to weaknesses in separation of duty controls and management oversight. The other related to system permissions in the PT-X system, which is used to upload payment files to BACS¹. The Audit Team was scheduled to update the committee on management progress in implementing all Priority 1 recommendations. There were four overdue Priority 1 recommendations as of 30 October 2025, relating to Street Lighting, Development Management, and Homelessness and Temporary Accommodation.

South West London Fraud Partnership (SWLFP)

The Head of the South West London Fraud Partnership was scheduled to provide an update on the fraud work undertaken in 2025/26. The SWLFP provides Kingston Council's investigative resource through a shared service with Merton, Richmond, Sutton & Wandsworth Councils.

Priority areas of coverage are agreed through consultation with the Heads of Audit and the Shared Services Board. For 2025/26 there was an increased awareness and focus upon the rising demand and cost of temporary accommodation. The SWLFP also continues to work closely with Social Housing Providers in relation to concerns over tenancy fraud and abuse.

The committee was asked to note the fraud work undertaken and performance results for 2025/26.

Appointment of Independent Persons

The Interim Director of Governance and Law and Monitoring Officer was scheduled to present a report recommending the appointment of two additional Independent Persons, Graham Kitchen and Michael Turner, and an extension of Gary Roger's current term of office. These Independent Persons provide advice to the Monitoring Officer on matters relating to the Member Code of Conduct.

The recommendation was that Graham Kitchen and Michael Turner be appointed to act as Independent Persons under s28 of the Localism Act 2011 for a four year period to 16 December 2029, and that Gary Roger's appointment be extended by a four year period to the end of the municipal year 2029/30. It was also recommended that an allowance of £643.79 per annum be made available for Independent Persons to claim, if they so wish, which would be paid on a pro rata basis.

Independent Members of the Committee

The Interim Director of Governance and Law and Monitoring Officer was scheduled to present a report proposing the extension of the term of the two non-voting Independent Members of the Audit, Governance and Standards Committee, Julian Adams and Manpreet Mahal, for a further two years and 5 months, to 15 October 2028.

The recommendation was that the current terms of Julian Adams and Manpreet Mahal be extended from the time of expiry of the current term for a further two years and 5 month period to 15 October 2028.