The Governance Standards and Audit Committee of Merton Council scheduled a meeting to discuss several key items, including a review of polling places, an external audit progress report, an internal audit progress report, a fraud update, and the key strategic risks register. The committee was also expected to discuss a member induction plan for 2026 and the appointment of an independent person.

Review of Polling Places

The committee was asked to consider recommendations regarding polling places in two wards.

In Hillside, the report pack noted that Drake House, the current polling place for polling district MC, would be unavailable in 2026 due to planned building works at Wimbledon Guild. It was recommended that Hillside Church be designated as the new polling place. The report pack stated that both councillors for Hillside ward had been consulted and agreed with the proposal. Councillor Hicks had raised concerns about pedestrian safety on Worple Road, and Electoral Services had agreed to discuss temporary lights with the highways team.

In Wandle ward, AFC Wimbledon had volunteered the Cherry Red Records Stadium for use as a polling station. It was recommended that a new polling district, OD, be created in Wandle ward to accommodate the stadium, and that the stadium be designated as the polling place. The report pack noted that the new polling district would contain roughly 850 electors from new build properties on Plough Lane, Greyhound Parade, Summerstown, and Copper Mill Lane. The report pack stated that both councillors for Wandle ward had been consulted and agreed with the proposal.

External Audit Progress Report

The committee was scheduled to receive an interim audit results report from Ernst & Young LLP (EY), the council's external auditor. The report summarised the status of the audit for the year ended 31 March 2025.

The report noted that a disclaimer of opinion was issued on the council's 2022/23 and 2023/24 financial statements. For 2024/25, EY had continued to audit the closing balance sheet and in-year transactions, but had not yet obtained sufficient evidence to have reasonable assurance over all in-year movements and closing balances. EY was considering whether to issue a qualified 2024/25 audit opinion rather than a disclaimer.

The report pack stated that the audit timeline had been moved from November 2025 to January 2026 due to the timing and quality of supporting documentation and analysis provided by management.

The report pack also identified a number of key areas of focus for the audit, including:

• Misstatement due to fraud or error
• Incorrect capitalisation of revenue expenditure
• Incorrect valuation of other land and buildings and surplus assets
• Incorrect valuation of IAS 19 net pension liability¹
• IFRS 16, Leases²

The report pack stated that uncorrected misstatements above the Summary of Audit Differences (SAD) were as follows:

£1.97m related to extrapolated misstatements on accruals arising from the incorrect re-accrual of expenditures that had already been paid.

The report pack also noted that management had corrected misstatements amounting to £1.0m on the understatement of the valuation of other land and buildings.

Internal Audit Progress Report

The committee was scheduled to receive an internal audit progress report for the period up to October 2025. The report summarised Internal Audit's progress in delivering the Annual Audit Plan, which comprised a total of 765 chargeable days.

The report pack stated that, since April 2025, twenty-five audit assurance reviews had been undertaken, with the following assurance opinions:

• 0 (0%) Substantial Assurance
• 16 (64%) Reasonable Assurance
• 9 (36%) Limited Assurance
• 0 (0%) No Assurance

The report pack also stated that 155 audit recommendations had been issued to management, of which:

• 20 (13%) were Priority 1
• 106 (68%) were Priority 2
• 29 (19%) were Priority 3

The report pack detailed changes to the Internal Audit Plan 2025/26, including the addition of audits for Risk Management, and Planning Enforcement Notice and Local Land charges.

The report pack also provided updates on the progress of Priority 1 audit actions, with details of outstanding actions from previous years.

Fraud Update

The committee was scheduled to receive a fraud update report on the activity completed during 2025/26. The report sought to provide the committee with assurance over the arrangements for protecting the council, its residents and service users against fraud and corruption.

The report pack stated that Merton Council entered into a shared fraud investigation service, known as the South West London Fraud Partnership (SWLFP), with Kingston, Richmond, Sutton & Wandsworth Councils, in April 2015.

The report pack summarised fraud investigations and performance results, with details of fraud/abuse referrals, overpayments, and notional savings identified as a result of fraud work.

The report pack also provided information on the Regulation of Investigatory Powers Act 2000 (RIPA)³, and the Local Government Transparency Code⁴.

Key Strategic Risks Register

The committee was asked to review the adequacy of the risk management framework and the associated control environment, and to consider the Key Strategic Risks and Issues faced by the council.

The report pack included the council's Risk Management Strategy March 2025, and the Key Strategic Risk Register Q1 2025/26.

The report pack stated that there were currently 12 entries on the Key Strategic Risk Register (KSRR), comprising 9 Key Strategic Risks and 3 Key Strategic Issues.

The report pack noted that there were 7 red Key Strategic Risks / Issues on the KSRR, relating to:

• Housing Supply- Affordable Housing
• Annual Savings Programme
• Implementation of the Climate Action Plan
• DSG Safety Valve
• Risk of Cyber attack on the Council's IT Infrastructure and Systems
• Corporate Business Plan & Balanced Budget
• School Budget Deficit

The report pack stated that the score of one Key Strategic Risk/Issue had increased since the last quarterly review: Risk of Cyber attack on the Council's IT Infrastructure and Systems.

The report pack also stated that officers were proposing that one risk be removed: Waste Services Change of Delivery Model & Mobilisation.

Member Induction Plan 2026

The committee was asked to note and discuss a report on the Member Induction Plan 2026, and to approve in principle the proposed induction programme for elected members.

The report pack detailed training which had been provided for councillors during 2022-2025, and requested the committee's feedback.

The report pack set out the proposed Member Induction Programme for 2026, including a main induction event on the evening of Monday 11 May 2026.

The report pack also detailed IT provision for councillors, and information on pensions.

Appointment of an Independent Person

The committee was asked to recommend to Council the appointment of Faye McGillian for a three-year period as an Independent Person for the purposes of Chapter 7 of the Localism Act 2011⁵.

The report pack stated that Independent Persons are appointed for a maximum of two terms of three years, and that Clive Douglas had ended his second term as Independent Person earlier in 2025.

The report pack also stated that the Independent Person will be invited to attend meetings of the Governance Standards and Audit Committee in that capacity.