Redbridge Council has missed the statutory deadline for publishing its draft 2024/25 Statement of Accounts, citing staff turnover, capacity constraints, and delays in receiving information as key factors. The council could face financial penalties and reputational risk for failing to have a good information governance data protection framework.

The delay was revealed in the Annual Audit Results Report 2023/24 – Action Plan Update, which was presented to the Governance and Assurance Committee on 4 November 2025. According to the report, the statutory deadline for publication was 30 June 2025, but the draft was not issued until 22 August 2025.

The report identified several reasons for the delay, including:

  • Staff Turnover and Capacity Constraints: The finance team has experienced significant staff turnover, leading to a loss of knowledge and continuity. With the retirement of the previous, longstanding Chief Accountant, the decision was taken to recruit two interim Chief Accountants to undertake the necessary year end closure work, with the view to retaining the services of one of them for the audit period. A period of handover was undertaken. One of the interims was let go earlier than planned during the closure period.
  • Delays in Information and Responses: The timely completion of the accounts was hindered by delays in receiving critical information from other departments. The Property Team within the Regeneration and Culture Directorate was responsible for delays in providing information and resources around the fixed assets held by the Council, according to the Annual Audit Results Report 2023-24 - Action Plan - Appendix 1.
  • Valuation Timelines: Property, plant, and equipment valuations were not received within the expected timeframes. Externalizing fixed asset valuations for 2024/25 was achieved, with the contract awarded to Sanderson Weatherall LLP. Completion of valuation work was later than hoped, but with significant variations explored and challenged to reach a common understanding.
  • Manual and Inefficient Processes: The team continues to rely heavily on manual processes, particularly in relation to the Fixed Asset Register.

According to the Annual Audit Results Report 2023-24 - Action Plan - Appendix 1, the council is taking steps to address these issues, including securing additional resources within the corporate finance team, externalising fixed asset valuations, and purchasing access to new software for leased assets. The purchase of access to LS2 software to account for leased assets in accordance with IFRS 19 requirements was also completed. IFRS19 accounting arrangements were undertaken on new software and incorporated into main accounts. ELWA, who the council provides accounting services to and had similar new lease asset accounting requirements, have had their accounts complete audit with no adjustments required.

The report also noted that the delay in publication allowed for more work to be undertaken through analytical review and quality assurance, with the expectation that this will enable a smoother audit. External audit work is due to commence in November.

At the same Governance and Assurance Committee meeting, the Internal Audit and Counter Fraud 2025/26 Q2 Update was presented. The report noted that during 2025/26 the team's in-house resources has been impacted by significant sickness absence. Planned reviews have been reviewed, prioritised, and reallocated accordingly, including using backfill resource from the co-source contractor using existing revenue budget.

According to the Information Governance Mid-Year Update Quarter 2 - Report, certain breaches under the data protection legislation can result in penalties ranging between £8.5m up to £17.5m or 4% of the organisation's global annual turnover, whichever is the highest. The report also notes that failure to have a good information governance data protection framework could leave the Council vulnerable to reputational risk and financial penalties.