Barking and Dagenham Council is bracing for continued delays in its audit process, with disclaimers expected on several years' worth of financial statements. The Audit and Risk Committee convened on Wednesday, 25 June 2025, to address the ongoing issues and review counter-fraud measures.
The delays stem from unresolved issues in the Council Statement of Accounts (CSOA) for the years 2019/20, 2020/21, 2021/22 and 2022/23. BDO, the council's former external auditors, are expected to issue a disclaimer of audit opinion due to the local government backstop date for the financial statements. A key sticking point involves transactions between the council and the London Borough of Barking and Dagenham Pension Fund, specifically prepaid employer contributions and loans made by the council to the pension fund. BDO sought independent legal advice on the lawfulness of these loans.
Grant Thornton, the current external auditors, presented an audit progress report on the Council Statement of Accounts for 2023/24 and preparation of the 2024/25 CSOA. The issuance of the audit opinion for 2023/24 is contingent on the resolution of the previous years' audits. Their report highlighted potential risks of significant weakness, including the development of a robust savings plan, governance arrangements related to council companies, and the financial sustainability of the Housing Revenue Account (HRA).
The committee also reviewed the Counter Fraud Annual Report for 2024/25. The report summarised counter-fraud work, including corporate fraud activity, whistleblowing referrals, and housing investigations. Key statistics included 175 corporate fraud referrals, with 51 accepted for investigation, and 1512 new housing investigation cases added, with 1477 completed, leading to 9 properties recovered and savings of £169,521.
The Audit and Risk Committee, chaired by Cllr Jack Shaw, also reviewed its work programme for 2025/26, which includes updates from BDO and Grant Thornton on the Council Statement of Accounts and Pension Fund Draft Accounts, as well as reports on the Annual Governance Statement, Information Governance, Internal Audit, and Counter Fraud. The agenda for the meeting and the public reports pack are available online.