The Hammersmith and Fulham Audit Committee met to discuss the annual report of the audit committee, the corporate anti-fraud service, health and safety, and treasury management. The committee approved the annual report of the audit committee and agreed to forward it to the full council for information. Members also noted the corporate anti-fraud service half-year progress report, the corporate health and safety annual update, and the mid-year treasury management review.

Annual Report of the Audit Committee

The committee received and approved the Annual Report of the Audit Committee for the municipal year 2024/25, and agreed to forward it to the full council for information. The report summarised the work of the Audit Committee from May 2024 to April 2025.

Councillor Adrian Pascu-Tulbure, Opposition Deputy Leader, suggested including the cost of external audits in the section on external auditors to track year-on-year expenses. He also wanted to stress that external auditors are appointed as part of a shared settlement, not individually.

Charlotte Moar, Co-opted Independent Member, questioned how the committee could be assured it was performing its role in line with best practice, given the action plan to review terms of reference and hold private meetings with auditors and members had not been completed. She also sought clarification on whether the report related to the municipal year 2024-25 or the financial year.

Moira Mackie, Head of Internal Audit, clarified that the standards of the framework assessed against generally overruled that the scores were very good, but there was room for improvements. She also confirmed that the report was for the municipal year, as is normal for their reporting.

Corporate Anti-Fraud Service Half-Year Progress Report

The committee noted the Corporate Anti Fraud Service Half-Year Progress Report, which summarised anti-fraud activities and achievements from 1 April to 30 September 2025.

Andy Hyatt, Head of Fraud, explained a change in reporting to include values attributed to fraud prevention, alongside actual losses. He gave an example of tenancy fraud, where the cost of temporary accommodation is used to calculate potential savings from early intervention.

Councillor Lisa Homan, Chair of the Policy and Oversight Board, praised the report and its costings. She asked about trend data and benchmarking for referrals and frauds, and also about insider fraud risk assessments and controls.

Andy Hyatt responded that trends are monitored by the types of referrals received and by networking with other local authorities. He mentioned the National Anti-Fraud Network's local authority counter fraud survey as a benchmarking tool. He also said that fraud awareness e-learning would be refreshed with a focus on red flags for internal fraud.

Councillor Adrian Pascu-Tulbure raised concerns about the amount of tenancy fraud in the borough and asked about undetected cases and potential resource changes.

Andy Hyatt said that the Chief Executive, Sharon Lea, supported resorting and working with Richard Sway from the housing department to implement best practices, including proactive verification of residency. He noted the importance of good evidence gathering to encourage individuals to return keys and avoid lengthy prosecutions.

Councillor Callum Nimmo asked how the council prevented £5,000 of fraud with a press release. Andy Hyatt explained that it was a notional figure based on the deterrent effect of publicising fraud cases.

Councillor David Morton asked if losses incurred as a result of extended letting voids were monitored. Andy Hyatt confirmed that void costs are factored into the notional value to show the cost to the organisation.

The report stated that between 1 April 2025 and 30 September 2025, the council processed 102 new referrals and concluded 132 investigations. Of the concluded cases, 79 resulted in positive outcomes related to preventing, detecting, deterring, or recovering from fraud loss. The 79 positive outcomes identified have prevented fraud worth an estimated £779,530 and identified a notional loss of £607,423. An additional £409,000 was identified for recovery via court-issued confiscation orders under the Proceeds of Crime Act¹. The report also detailed several specific cases:

• Tenancy Fraud: Non-residency - A tenant applied to transfer her tenancy at Linacre Court to her son and his family, but checks revealed she had moved out and purchased a separate property. The assignment was denied, and the keys were returned.
• Tenancy Fraud: Succession - A daughter applied to succeed to her deceased mother's tenancy on Wood Lane, claiming she had been her primary caregiver. However, checks revealed she lived outside the borough. The succession was rejected, and the property was recovered.
• Direct Payments: Criminal Prosecution - A client's daughter created fake invoices to misuse her mother's direct payment funds. She confessed to producing fraudulent documents and was given a suspended sentence and unpaid work.
• Tenancy Fraud: Succession - An applicant claimed to be like her father to a deceased tenant on the White City Estate, but was found to live elsewhere. The property was sublet, and legal action led to the recovery of the property.
• Tenancy Fraud: Abandonment - A husband and wife applied for housing, claiming overcrowding in a property on the White City Estate. However, the tenant was found to live in America. The tenant agreed to give up the property.
• Tenancy Fraud: Non-residency - A family was traced to Nigeria, and their property on the Peabody Estate in Hammersmith was recovered.
• Tenancy Fraud: Non-residency - A male applied to assign a flat on the White City Estate, but was found to be dishonest. The court ordered him to leave the property.
• Tenancy Fraud: Discretionary Succession - An applicant for discretionary succession on Comeragh Road was found to live in Wolverhampton. The court granted possession, and the applicant was evicted.

Corporate Health and Safety Annual Update

Ian Church, Assistant Director, Corporate Property and Health & Safety, presented the Corporate Health and Safety Annual Update for 2024-25. He reported that there were no enforcement actions from the Health and Safety Executive (HSE) during the year, and there was a slight improvement in the number of RIDDORs² reported. He highlighted the strong performance of the housing team in upgrading front doors, installing sprinklers, and achieving a high decent homes standard. He also noted an increase in reported incidents of violence and aggression in libraries, but said that this was due to better reporting. Councillor Lisa Homan asked about mandatory training for staff and the health and safety of contractors on site. Ian Church responded that the target for mandatory training compliance is 100%, and access passes to the new civic campus will not be activated until staff complete the necessary training. He also said that contractors undergo comprehensive pre-qualifications and risk assessments are being reviewed.

Councillor Lisa Homan sought information on violence and aggression in smaller libraries, such as Askew Library and Avonmore Library. Ian Church committed to visiting those libraries and meeting with the teams to understand the issues.

Councillor Adrian Pascu-Tulbure asked about incidents in schools where staff had objects thrown at them. Ian Church did not have specific details but said that near misses were underreported by schools and needed improvement.

Mid-Year Treasury Management Review

Patrick Rowe and Sophie Green presented the Mid-Year Treasury Management Review for 2025-26. Sophie Green stated that borrowing had increased by £82 million since March, and that cash was being used to manage daily liquidity. She also mentioned the liability benchmark, which suggests borrowing $77 million in 2026 and $92 million in 2027 to reach the optimal borrowing level.

Patrick Rowe noted that the council breached the CFR indicator, but that this was not a legal issue.

Councillor Adrian Pascu-Tulbure asked how worried the council was about the additional borrowing requirement. Patrick Rowe responded that the size of the capital programme would have a potentially significant impact on future revenue and the requirements for savings. He rated his worry as a 6 out of 10, citing pressures within the economy.

Councillor Reid stated that the council was in a pretty good position compared to other local authorities and that it was prudent to borrow externally now that rates are coming down.

Councillor Nimmo asked about the Green Investment Fund. Councillor Reid responded that the H&F Green Investment was a rare win, win, win. He also stated that the council had just launched the fifth tranche of the H&F Green Investments and were looking to raise up to a million pounds at a rate of 4.1%.