The Audit and Risk Committee of Islington Council met on 19 March 2026 to discuss the 2026/27 Internal Audit plan, the biennial whistleblowing monitoring report, and the proposed Code of Corporate Governance. Decisions were made regarding the approval of the Internal Audit strategy and plan, and the Code of Corporate Governance was approved.

2026/27 Internal Audit Plan

The committee reviewed and approved the 2026/27 Internal Audit Strategy and the draft Internal Audit Plan. The strategy outlines how the Internal Audit service will be delivered, with the overarching purpose of providing independent and objective assurance to members and senior management to support effective governance and internal control. The plan details the work to be undertaken, which is based on a structured methodology that considers the council's priorities and principal risks. A significant aspect of the plan is the inclusion of 130 contingency days to allow for flexibility in responding to emerging risks throughout the year.

Councillor Diarmaid Ward, the Chair of the Audit and Risk Committee, highlighted the importance of stabilising key appointments within the council. The committee also discussed the resourcing of the internal audit function. Chris Martin, Assistant Director of Audit & Risk, explained that while the in-house team has strong local knowledge, external specialists are used to supplement workload and skill requirements. He noted that reliance on external partners like PwC would be reduced over time as the in-house team capacity is built through recruitment and apprenticeships. Councillor Satnam Gill OBE expressed a view that the team currently lacks the capacity for a comprehensive internal audit service, suggesting it could function more like a management consultancy to improve processes. He also noted that external providers can be more expensive than internal resources.

The committee was also informed about the upcoming de-merger of the Internal Audit service from Camden Council in July 2025. The plan includes a total of 776 audit days, with 130 allocated as contingency days. The plan covers various areas including corporate risks, community wealth building, health and social care, children and young people, environment and climate change, homes and neighbourhoods, and resources.

Biennial Whistleblowing Monitoring Report

The committee received the biennial whistleblowing monitoring report, which covers the period from 1 August 2025 to 31 January 2026. The report indicated a downward trend in the volume of referrals compared to the previous year, although the complexity of some referrals has increased. A total of four new referrals met the criteria for whistleblowing during this period, with three remaining open and one closed. Additionally, an update was provided on eight referrals that were open at the time of the last report in September 2025, with three still open and five closed.

A discussion ensued regarding the handling of allegations, particularly those with a potential criminal element where evidence was insufficient for internal action. Councillor Gill raised concerns about the threshold for pursuing allegations, suggesting that if there is an indication of a criminal offence, the decision should be left to the police. Paul Clarke, Acting Corporate Director of Resources, explained that disciplinary thresholds are lower than criminality thresholds, and cases are assessed based on the balance of probabilities for HR matters, while police require a higher standard of proof. He clarified that if a case does not meet the threshold for HR investigation, it does not automatically mean it is dropped, and HR processes would be followed. Councillor Janet Burgess MBE expressed concern about the soliciting prostitution case and requested it be revisited.

Code of Corporate Governance

The committee reviewed and approved the proposed Code of Corporate Governance for Islington Council. This code is based on the seven principles outlined in the CIPFA/SOLACE guidance 'Delivering Good Governance in Local Government'. The code sets out the council's governance standards, ensuring that it operates in an effective, honest, and accountable manner.

Councillor Convery noted that the code is based on frameworks from CIPFA and SOLACE, which are private organisations. Paul Clarke explained that these organisations are at the forefront of developing such guidance, distilling collective thoughts from a wider array of people. He stressed that their involvement is for the good of the sector and not for commercial gain. Councillor Convery also raised concerns about the potential for outsourcing the council's policy framework to private entities, questioning the accountability of these organisations. He suggested that the Local Government Association might be a more appropriate body to lead on such frameworks.

The code details how the council upholds each of the seven principles, including behaving with integrity, ensuring openness and stakeholder engagement, defining outcomes in terms of sustainable benefits, determining necessary interventions, developing council capacity, managing risks and performance, and implementing good practices in transparency, reporting, and audit. The code is intended to provide assurance to residents that good governance operates effectively and transparently.