Tower Hamlets Council's Audit Committee is facing scrutiny over the independence of its operations, primarily due to the continued presence of a cabinet member. External auditors EY have highlighted this issue, stating that The continued membership of a cabinet member on the audit committee raises concerns regarding the committee's independence.
While the council's constitution permits executive members to sit on the committee, EY's report noted that the appointment of an independent chair in May 2025 did not fully resolve these concerns. The meeting information indicates that the council's constitutional position allows for a cabinet member to sit on the committee, even though they do not hold decision-making powers within the executive. This provision was agreed upon at a full council meeting. The rationale provided for this is that if an executive member is present, compensatory measures, such as an independent chair, should be in place. The council is currently complying with SIPFA guidance on this matter.
Barry Quirk, the Independent Chair of the Audit Committee, acknowledged the validity of the concerns raised by EY. During the committee discussion, he stated, But it's a valid point. It's something that we can continue looking at as we review the effectiveness of the audit committee going forward.
He also facilitated the agreement for statutory officers to investigate the issue further and report back to the committee.
The specific powers or influence a cabinet member's presence might exert that compromises the committee's independence are not explicitly detailed in the meeting information. However, the concern itself, as highlighted by EY, is that the continued membership raises questions about the committee's independence.
The committee discussed the matter and agreed that statutory officers would undertake a further investigation. The findings of this investigation will be reported back to the committee, which will then review the effectiveness of the Audit Committee going forward.
