Croydon Council's internal controls have received a vote of confidence, with an internal audit report giving the authority 'Substantial Assurance'.

The Audit & Governance Committee convened on Tuesday 29 July 2025, to review the Annual Head of Internal Audit Report, which detailed the findings of internal audit work completed in 2024/25. According to the report, the Interim Head of Internal Audit's opinion is that Internal Audit can provide Substantial Assurance in relation to the system of internal control, and that the internal controls within financial and non-financial systems operating throughout the year were satisfactory. The report also includes a comparison of assurance levels over the past five years, showing an increase in 'Substantial' assurance compared to the previous year.

2020/21 2021/22 2022/23 2023/24 2024/25
Full Assurance 6% 7% 0% 0% 2%
Substantial Assurance 42% 39% 44% 25% 41%
Limited Assurance 44% 47% 44% 62% 53%
No Assurance 8% 7% 12% 13% 4%

This positive assessment comes as the council continues its efforts to improve governance and financial stability following a period of significant challenges. The Annual Governance Statement (AGS) 2024/25, also discussed at the meeting, highlights the council's ongoing commitment to these improvements.

Pie chart showing levels of assurance from systems audits, with 'Substantial' at 53% and 'Limited' at 42%.
Pie chart showing levels of assurance from systems audits, with 'Substantial' at 53% and 'Limited' at 42%.

According to the Head of Internal Audit Report, 56% of individual systems audits received either Full or Substantial assurance levels. The report also noted areas where improvements are still needed, including contract management, information governance, and housing services. The Audit & Governance Committee reviewed the Internal Audit Strategy and plan for 2025/26, which aims to build on the progress made and address remaining weaknesses.

The AGS Action Plan outlines several actions to improve financial sustainability, governance, and service delivery. These include:

  • Implementing the Improvement & Assurance Panel Exit Strategy Action Plan (Intervention Exit Strategy 2023- 25) relating to governance; culture and leadership; financial stability; service performance; and capacity and capability to improve.
  • Delivering on the Council Improvement Plan 2022-27.
  • Implementing the recommendations from the External Auditors Annual Report relating to financial sustainability; governance; and Improving economy, efficiency and effectiveness.

The AGS Action Plan aligns with several frameworks, including the Improvement & Assurance Panel Exit Strategy, the Council Improvement Plan (2022-2027), and the Croydon Transformation Plan (2024-2029). The criteria for the panel to exit are described in the SoS Guidance as the proxies for success in determining whether the authority has met the duty and should exit intervention. Capacity to Improve.

The Audit & Governance Committee continues to play a key role in overseeing the council's improvement efforts. The committee reviewed the Committee Work Programme for 2025-26, which includes regular updates on internal audit, risk management, and governance.

Council documents indicate a commitment to addressing the remaining challenges and ensuring continued progress in the coming year.