Audit Committee Reports Strong Control Environment and Positive Assurance on Internal Controls

Hammersmith and Fulham Council's Audit Committee has reported a strong control environment, according to its annual report for the 2024/25 municipal year. The committee reviewed its effectiveness against CIPFA guidance, specifically the 'CIPFA Toolkit for Effective Audit Committees and the CIPFA Skills and Knowledge Framework for Audit Committee members', and confirmed its role was being performed in line with best practice. Minor improvements were identified, which have been or will be addressed in the 2025/26 municipal year . An Independent Member was also appointed for a fixed term of three years, commencing in October 2025, as recommended by CIPFA guidance.

During the 2024/25 municipal year, the committee met on four occasions: 31 July 2024, 06 November 2024, 09 December 2024, and 10 March 2025. Key topics discussed included the External Audit Plan 2023/24, Audit Risk Assessment and Statement of Accounts Update, External Audit Programme & Sector Update, Head of Internal Audit Annual Report 2023/24, Risk Management Update, Corporate Anti-fraud Service Annual Report 2023/24, Statement of Accounts 2023/24, Annual Audit Report (Value for Money) 2023/24, Internal Audit Update 2024/25, Risk Management Update and Corporate Risk Register 2024/25, Treasury Management Outturn Report 2023/24, Health & Safety Update April 2023 to March 2024, Annual Complaints Report 2023/24, Mid-year Treasury Management Review 2024/25, Internal Audit Strategy 2025-2028, Internal Audit Charter & Mandate, Global Internal Audit Standards, Internal Audit Plan 2025/26, Risk Management Strategy 2025-2028, and the Corporate Anti-fraud Service Half-Year Report 1 April to September 2024.

Assurance was received regarding the Council's internal control arrangements, with 89% of audits receiving a positive assurance opinion. The external auditors, Grant Thornton, provided an unmodified opinion on the Council and Pension Fund Accounts, noting a 'strong control environment'. Within the audit of the main statement of accounts, Grant Thornton made two medium priority and five low priority recommendations, with one prior year recommendation for follow-up. For the pension fund accounts, there was one new recommendation (already implemented) and one prior year recommendation to implement. Grant Thornton also made one improvement recommendation in their Annual Audit Report (AAR) for 2023/24, suggesting the Council should 'include more scenario planning in developing its annual budget'.

The Internal Audit strategy sets out how the Service will deliver against new standards, including a suite of proposed Key Performance Indicators. The Audit Charter and Mandate were also approved. The Corporate Anti-Fraud Service provides a counter-fraud and investigation service for fraud attempted or committed against the Council, in line with legislation.

The Audit Committee's work throughout the year has consistently delivered robust scrutiny of the Council's governance structures and financial reporting processes, promoting the consistent application of best practices and upholding strong internal controls. The committee's annual report can be found here.