The Audit, Governance and Standards Committee is scheduled to meet on Tuesday 03 February 2026 to review a range of reports concerning the council's financial health, risk management, and adherence to standards. Key discussions are expected to cover retrospective contract decisions, internal audit progress, and the council's corporate risk profile.

Retrospective Decision: Integrated Community Equipment Service

The committee is scheduled to review a retrospective decision regarding the Integrated Community Equipment Service. This service provides essential equipment to support individuals in remaining independent at home, including items such as specialist beds and toileting aids. The report details a decision made by the Strategic Director of Children and Adults Services to award a contract to Provide Equipment Hub for a two-year period, with a one-year extension option. This decision was taken under emergency powers due to the urgent need to secure a service following the financial difficulties and subsequent liquidation of the previous provider, NRS Healthcare Ltd. The report outlines how this emergency procurement ensured the council could meet its statutory responsibilities under the Care Act (2014) and the National Health Service Act (2006) without significant disruption to residents.

Report on Retrospective Contract-Related Decisions: Communal Lighting and Electrical Testing Contracts

This report addresses retrospective contract decisions concerning Communal Lighting and Electrical Testing Contracts, specifically Contract A for the North of the Borough and Contract B for the South of the Borough. The committee will be asked to note these retrospective decisions and actions taken by the Director of Repairs and Maintenance to minimise the risk of future retrospective contract decisions. The report explains that the need for retrospective approval arose due to an expansion of the electrical compliance programme following the council's self-referral to the Regulator in June 2024. This created an urgent delivery requirement for Electrical Installation Condition Reports (EICRs) across all council homes by March 2026. The report details the background of the contracts, including their original award and previous extensions, and outlines the drivers for increased expenditure and the challenges in determining the scope and budget. Actions being taken to strengthen contract management, improve forward planning for procurement, and embed new systems like 'True Compliance' are also detailed.

Internal Audit Progress Report February 2026

The committee will receive an update on the work undertaken and the results of audits conducted as part of the 2025-26 internal audit plan. This report, prepared by BDO, provides an overview of the internal audit work completed, including executive summaries of finalised reports and the status of recommendations. It highlights the methodology used, which includes four assurance levels: substantial, moderate, limited, and no opinion. The report also details the progress of the internal audit schools programme and non-audit plan work, such as support for the Local Government Transparency Code 2015. A summary of recommendations status indicates a high implementation rate for high and medium priority recommendations.

Annual Report on Corporate Risk

This report provides an annual update on the council's key risks, summarising the corporate risk management arrangements and the council's risk profile. It outlines the purposes of the corporate risk management process, which include identifying significant risks, consolidating common issues, and ensuring risks are effectively managed to meet corporate and business objectives. The report details the risk categories used by the council, such as Economic, Financial, Reputational, Staffing & Culture, Operational, and Legal & Regulatory. It also presents a breakdown of the number of risks by score range, showing an increase in 'Red' and 'Amber' risks compared to the previous year. The report includes a detailed look at key corporate risks, such as those related to the Housing Revenue Account, Asset Management and Building Safety, Temporary Accommodation, Climate Emergency, Schools and Education, Acute Socio-Economic Factors, Cost of Living Crisis, Health and Wellbeing, Crime and Antisocial Behaviour, Cyber Security, Recruitment and Retention, Medium Term Financial Planning, Capital Programme and Major Projects, and Health & Safety.

Report on the Operational Use of the Regulation of Investigatory Powers Act 2000

The committee is scheduled to receive a report on the operational use of the Regulation of Investigatory Powers Act 2000 (RIPA) in 2025. RIPA provides a legal framework for local authorities to use investigatory powers, ensuring they are used lawfully and proportionately. The report notes that the council's use of these powers is subject to regular inspection by the Investigatory Powers Commissioner's Office. While there were no authorisations sought under RIPA in 2025, the report provides comparative data for previous years. It also details the training provided to officers involved in the authorisation process and outlines the review of the council's RIPA policy and procedures. The report highlights that the use of these powers aims to protect the community, particularly vulnerable individuals, from criminal and anti-social activity.

Review of Complaints Made Under the Members' Code of Conduct in 2025

This report reviews complaints made under the Members' Code of Conduct in 2025. The Localism Act 2011 requires local authorities to have arrangements for investigating such allegations. The report indicates a decrease in the number of complaints received in 2025 compared to previous years. It details that two complaints came from members of the public and two from council members. In three cases, the monitoring officer decided no further action was necessary after an initial investigation, while the fourth case was resolved through a local resolution. The report also mentions the Government's proposed reforms to the standards and conduct framework for local authorities, which aim to increase consistency, provide better support for those raising concerns, and introduce enhanced sanctions.

Whistleblowing Complaints and Outcomes

The committee will receive a report detailing whistleblowing referrals received by the council between October 2024 and September 2025, along with an update on the outcomes of referrals from the previous three years. The council's whistleblowing policy, approved in June 2020 and updated in October 2024, defines what constitutes a whistleblowing issue, including concerns about criminal activity, legal obligations, miscarriages of justice, health and safety, environmental damage, and the concealment of such matters. The report categorises referrals by source (employee, member, public, contractor, anonymous) and by service area (Children & Adults, Governance and Assurance, Environment, Resources, Housing). It outlines the outcomes of investigations, noting that a small number of whistleblowing complaints are received each year, with few resulting in further action. The policy supports the council's commitment to high standards of service and ethical conduct.

Annual Report on the Work and Performance of the Audit, Governance and Standards Committee in 2025-26

This report reviews the committee's work and performance during the 2025-26 municipal year. It aims to inform councillors about the committee's activities concerning audit, financial reporting, treasury management, governance, and standards. The report details the committee's role in providing independent assurance on governance, risk, and control arrangements, as well as scrutinising financial and non-financial performance. It covers internal and external audit activities, the approval of the 2024-25 statement of accounts, and discussions on departmental governance. The report also highlights the committee's work on corporate risk, the council's use of the Regulation of Investigatory Powers Act 2000 (RIPA), whistleblowing outcomes, and the establishment of standards sub-committees. The effectiveness of the committee and training opportunities are also considered.

Annual Work Programme for the Following Year (2026-27)

The committee will consider the proposed draft work programme for 2026-27. This programme is structured around the committee's key functions, including independent assurance of governance, risk management, and control environments; scrutiny of financial and non-financial performance; oversight of financial reporting; scrutiny of treasury management; and promoting high standards of conduct. The draft programme includes standing items such as the annual report of the committee, internal and external audit activity, and reviews of governance arrangements. Members will be asked to consider whether they wish to continue the approach of inviting chief officers to discuss departmental governance or if an alternative approach is preferred. The programme also allows for flexibility to address emerging issues identified through audit reports or other means.

Appointment of Non-Voting Co-opted Members of the Civic Awards Sub-Committee for 2025-26

This report concerns the appointment of four co-opted members to the Civic Awards Sub-Committee for 2025-26. The Southwark Civic Awards scheme recognises exceptional contributions to community life. Following the dissolution of the Southwark Civic Association, the committee is responsible for appointing these members. The criteria for selection include having a good understanding of the borough and its diverse communities, familiarity with the Voluntary and Community Sector (VCS), the ability to evaluate nominations, and not being a nominee or representing a nominated organisation. The sub-committee aims for a sex balance and to reflect the borough's diversity, ideally including at least one member under 25. The names of the nominees will be presented in a closed appendix.