The Audit and Risk Committee of Islington Council met on Monday 17 November 2025 to discuss the Council's financial position, review audit reports, and assess key risks. Decisions were made regarding the Mildmay Polling District and Polling Places Review, and the committee noted reports on falling school rolls, the principal risk report, and the interim auditor's annual report.

Falling School Rolls

The committee received a report detailing the significant downward trajectory of pupil numbers across Islington, with projections indicating a continued decline in primary and secondary school rolls over the coming years. This trend is mirrored across London, with Islington projecting one of the largest proportionate reductions in Reception pupils. The report outlined the impacts of these falling rolls, including surplus capacity in schools and the resulting financial pressures on individual institutions. The Council's strategic response includes reducing Published Admission Numbers (PANs), amalgamating schools, and, as a last resort, closing schools. Actions taken or planned for September 2023, 2024, and 2025 were detailed, alongside measures to manage licensed deficits and notices of concern for schools in financial difficulty. A Sustainable Schools and Settings Strategy is also being developed.

Principal Risk Report

The committee reviewed the Council's Principal Risk Report for November 2025, which identifies and assesses the key risks facing Islington. The report highlighted an increase in the risk scores for Cyber and Data Security Breach, Serious Fraudulent Activity, and Financial Stability & Resilience. Conversely, Safeguarding Adults and Serious Health & Safety incidents in Housing saw a reduction in their risk scores. The Council continues to operate in a heightened risk environment, with 23 out of 28 principal risks currently scoring above the target level. A revised Risk Management Strategy is being implemented to focus on a more succinct list of 10-12 key risks. Key risk themes identified include the financial resilience of the Council, with projected budget gaps and the potential impact of Fair Funding 2.0 reforms, and the ongoing cost of living crisis, which is increasing demand on Council services and exacerbating homelessness pressures.

Mildmay Polling District and Polling Places Review

A decision was made to approve changes to the polling district and polling place in Mildmay Ward. Following the closure of Highbury Quadrant School as a public venue, the polling station for the NMIC polling district will be moved to St Augustine's Church, located next door to the previous venue. This change is considered to have a minimal impact on residents due to the close proximity of the new location, which offers level access and suitable facilities. The change will take effect from 1 December 2025.

Interim Auditor's Annual Report

The committee received the draft 2024/25 Annual Audit Report from external auditors KPMG. The report indicated that, to date, no significant weaknesses had been identified in the Council's arrangements for financial sustainability, governance, or improving economy, efficiency, and effectiveness. However, the audit work in relation to financial statements and other information was still ongoing, meaning conclusions had not yet been reached in these areas. The report also noted that the auditors had not issued any Public Interest Reports, applied for judicial review, or issued advisory notices during the year.

Verbal Financial Update

An interim verbal update on the Council's financial position was provided. It was noted that the Council's financial position had improved slightly compared to the first quarter, primarily due to a decrease in the number of individuals in temporary accommodation and a slightly lower-than-estimated local government pay award. This has resulted in a shift from a slight surplus to a slight underspend. However, concerns remain regarding potential significant risks in the following year, particularly concerning fair funding for local government.

Other Matters

The committee also noted the Forward Plan, indicating that upcoming meetings would be busy, and reviewed the Action Sheet.

Key Concepts and Policies:

• Fair Funding 2.0: A proposed reform to the local government finance settlement formula, which could significantly impact Islington's funding.
• Medium Term Financial Strategy (MTFS): The Council's plan for managing its finances over several years, including identifying savings to bridge projected budget gaps.
• Dedicated Schools Grant (DSG): Funding provided by the government to local authorities for schools.
• Scheme for Financing Schools (SFS): Regulations governing how schools are funded and managed financially.
• National Fraud Initiative (NFI): A data-matching exercise to help prevent and detect fraud.
• Islington Together 2030 Plan: The Council's overarching strategic plan outlining its priorities and objectives.
• Cyber Assessment Framework (NCSC): A framework developed by the National Cyber Security Centre to assess cyber security resilience.
• Protect Duty (Martyn's Law): Proposed legislation aimed at enhancing security at public venues.
• Integrated Care System (ICS): A framework for health and social care services to work together.
• Mental Capacity Act 2005: Legislation that provides a legal framework for acting for people who lack the mental capacity to make decisions for themselves.
• Procurement Act 2023: New legislation governing public procurement processes.
• Progressive Procurement Strategy 2020/27: Islington Council's strategy for procurement, aiming for value for money and social value.
• Health and Safety at Work etc. Act 1974: Legislation setting out the general duties of employers and employees to ensure health, safety, and welfare at work.
• Corporate Homicide and Corporate Manslaughter Act 2007: Legislation that allows companies and organisations to be prosecuted for serious failings in health and safety.

Organisations and People:

• Councillor Paul Convery: Chair of the Audit and Risk Committee and the Pensions Committee.
• Councillor Nurullah Turan: Vice-Chair of the Audit and Risk Committee.
• Councillor Janet Burgess MBE: Carers Champion.
• Councillor Caroline Russell: Business Manager, Independent and Green Group.
• Councillor Satnam Gill OBE: Member of the Audit and Risk Committee.
• Pardeep Bhatti: Co-Optee on the Audit and Risk Committee.
• KPMG: The Council's external auditors.
• National Audit Office (NAO): Oversees public sector audits.
• Greater London Authority (GLA): Provides population projections for school rolls.
• Department for Education (DfE): Government department responsible for education.
• London Councils: An association representing London local authorities.
• HM Treasury: The UK government department responsible for public finance.
• Information Commissioner's Office (ICO): The UK's independent body set up to uphold information rights.
• Health and Safety Executive (HSE): The national regulator for workplace health and safety in Great Britain.
• Care Quality Commission (CQC): The independent regulator of health and social care services in England.

Places:

• Town Hall, Upper Street, London, N1 2UD: The location of the meeting.
• Council Chamber, Town Hall, Upper Street, N1 2UD: The specific room where the meeting was held.
• Highbury Quadrant School: Previously used as a polling place in Mildmay Ward.
• St Augustine's Church, 108 Highbury New Park, London N5 2DR: The proposed new polling place in Mildmay Ward.
• 222 Upper Street: Location of the Council's primary data centre.