The Governance, Audit, Risk Management and Standards Committee (GARMS) of Barnet Council met on Thursday 27 November 2025. The committee received updates on the council's anti-fraud strategy, risk management, internal and external audits, and treasury management. Key decisions included noting the progress of various audits and endorsing the council's forward work programme.

Corporate Anti-Fraud Team (CAFT) Half Yearly Progress Report

The committee received an update on the work of the Corporate Anti-Fraud Team (CAFT) for the first half of the 2025-26 financial year. CAFT investigated 97 cases of alleged fraud, resulting in two criminal prosecutions for polygamous working fraud and false timesheet submissions, and one disciplinary action against a member of staff. Prevention work included refusing a social care service, estimated to have prevented £32,760 in fraud. Council Tax fraud cases led to £1,000 in administrative penalties and £35,223.18 identified for civil recovery. Ten cases are awaiting prosecution with a total fraud amount of approximately £1.7 million.

In relation to concessionary travel fraud, 258 cases were investigated, leading to 22 successful criminal prosecutions, two simple cautions, and four warning letters. Three Blue Badges were seized. Tenancy fraud investigations resulted in the recovery of 36 properties, valued at £2.37 million in cost efficiencies, and the denial of six Right to Buy applications, preventing discounts of £96,000.

CAFT also conducted 18 financial investigations under the Proceeds of Crime Act 2002 (POCA), with ongoing recovery of confiscation orders. The team delivered fraud awareness training to various services and a session for councillors is planned for November. The council's mandatory fraud prevention e-learning module has been updated.

Quarterly Risks Report

The committee received an overview of the council's strategic and high-level service risks for the second quarter of 2025/26. There were 183 open risks in total, with 24 considered strategic and 159 service risks. Of these, seven strategic risks and 14 service risks were rated as high-level (15 or above).

Key strategic risks discussed included cyber security, revenue overspend due to rising demand for services, the affordability of the capital programme, an increase in the North London Waste Authority (NLWA) levy, and the ongoing equal pay claim. Service risks highlighted included cyber security technical infrastructure, bad debt in adult social care, school budget pressures, increased demand for temporary accommodation, and health and safety issues at the Colindale office.

The committee noted that three service risks had been reduced in Q2: SEN demand management and statutory compliance, strain on SEN transport, and support for development. No strategic risks were reduced, and no high-level strategic or service risks were closed in Q2.

Internal Audit Exception, Recommendations and Progress Report

The committee was informed that by the end of Q2, Internal Audit had completed 52% of its annual programme, meeting its target. Eight reviews were completed in the quarter, including an assurance report for Shalom Noam Jewish Primary School. However, there was a decline in the rate of completed actions, with 67% implemented compared to a target of 90%. This was attributed to management not completing agreed actions or providing evidence on time.

A 'Limited' Assurance report was issued for Shalom Noam Jewish Primary School, highlighting issues with budget monitoring, banking, purchasing, and payroll. The report detailed two high-priority issues related to budget monitoring and banking, and two medium-priority issues concerning purchasing and payroll.

The committee also noted the annual review of the Global Internal Audit Standards (GIAS) Essential Conditions, with a gap analysis indicating full alignment with the standards.

Treasury Management Performance Update

The committee received an update on the council's treasury management activities for the second quarter of 2025/26. The council borrowed £25 million from the Public Works Loan Board (PWLB) at an interest rate of 4.22% to fund Housing Revenue Account (HRA) capital expenditure. Investment balances decreased from £60.4 million at the end of March 2025 to £42.1 million at the end of September 2025 due to significant cash outflows.

The report indicated that borrowing is expected to increase in Q3 and Q4 due to declining cash balances. MUFG, the council's financial advisors, recommended maintaining short-to-medium-term borrowing and transitioning to longer-term borrowing when market conditions are more favourable. The anticipated increase in borrowing and drawdown of reserves is placing pressure on the Capital Financing budget, which is being actively managed.

The committee noted that the council's capital expenditure forecast for 2025-26 in relation to borrowing had decreased by 60%, approximately £163 million, due to the re-evaluation of non-statutory schemes.

External Audit Progress Report

Grant Thornton LLP provided an update on the external audit of the council's financial statements for 2024/25. Fieldwork began in July 2025 and is ongoing. The audit team noted delays in the production of the council's accounts, missing the statutory deadline of 30 June 2025, and challenges in obtaining appropriate listings for debtors and creditors.

The audit opinion for 2024/25 is expected to be a disclaimer of opinion due to the inability to obtain assurance over opening balances, the valuation of promised retirement benefits, and the classification of employer contributions. The audit team is working towards completing remaining procedures in January 2026, with the audit opinion targeted for February 2026.

The committee also received updates on sector-wide issues, including local government financial sustainability, the Spending Review, the Fair Funding Review, and public procurement.

Member Development Programme Update

The committee received updates on the Member Development Programme for 2022-2026 and the proposed Induction Programme for 2026-2030. Feedback from members indicated a desire for more engaging training sessions, including quizzes and polls. Concerns were raised about the difficulty of attending training during working hours, particularly for councillors with other jobs. The importance of recorded sessions for flexibility was highlighted, as was the need to attract younger councillors. The committee also discussed the complexity of the councillor role and the significant improvement in support and training provided by officers.

The draft member induction programme for 2026 was presented, with feedback sought on making sessions engaging and avoiding information overload at the start. Training on SIL (Section 106) and NSIL (Neighbourhood Community Infrastructure Levy) was also confirmed as planned.

Committee Forward Work Programme

The committee noted the Forward Work Programme for 2025-26, which includes regular updates on corporate anti-fraud, risk management, internal and external audits, treasury management, and member development.

The meeting concluded with the committee noting the forward work programme.