Barking and Dagenham Council's internal audit team is grappling with significant recruitment and retention challenges, impacting its ability to deliver its full audit plan. The Audit and Risk Committee heard on Wednesday, March 25, 2026, that while the internal audit service is committed to its responsibilities, a reliance on interim staff and vacant permanent roles is creating pressure.
Bash Fowora, Interim Head of Audit, presented the draft Internal Audit Charter, Strategy, and Audit Plan for 2026/27. He highlighted that the service is working to align with new Global Internal Audit Standards, which require adoption from April 2025. These standards, structured into five domains—Purpose of Internal Auditing, Ethics and Professionalism, Governing the Internal Audit Function, Managing the Internal Audit Function, and Performing Internal Audit Services—necessitate specific changes for the council's internal audit function. These include updating its audit methodology, which involves collaboration with other London Boroughs, training sessions, and revised guidance, leading to a refreshed internal audit charter, a more risk-based approach to audit planning, and a greater emphasis on the quality assurance and improvement program. The strategy outlines a co-sourced model, using a small in-house team supplemented by external providers.
Shabana Kausar, Director of Financial Services and Deputy S151 Officer, acknowledged the staffing constraints within both the internal audit and finance teams, noting the reliance on interim support. The internal audit team currently faces three full-time vacancies, including the Head of Internal Audit and two Internal Audit Officers. Recruitment for the Head of Internal Audit position has been completed, with the new starter due to commence at the end of June. Recruitment for the two Internal Audit Officer roles is scheduled to begin later in the year. The finance department is also experiencing vacancies in corporate finance, particularly for technical roles such as chief accountants, closing accountants, and capital accountants, which are proving difficult to fill due to a limited pool of experienced interims.
The committee discussed the need for stability in the finance team and the difficulties in retaining staff. Officers noted a high churn rate
across the organisation, leading to a loss of tacit knowledge, with staff often leaving for other London boroughs offering more competitive pay, including market supplements, greater flexibility in working arrangements, and clearer career progression paths. The report for the 2025/26 Audit Plan and Accounting Policies also detailed the accelerated timeline for audits, which, combined with constrained staffing and specialist capacity, presents a significant risk to meeting deadlines. Failure to meet these deadlines could result in a material risk to the November deadline for the 2025/26 audit, impact timely completion of key year-end tasks, and hinder efforts to rebuild audit assurance, potentially delaying the move away from disclaimed opinions. The timely completion of the audit is also crucial for the formation of the Annual Governance Statement.
Despite these challenges, the council is implementing improvement measures. The co-sourced model, utilising a small in-house team supplemented by external providers through the Cross Council Assurance Service (CCAS) framework, is intended to provide additional capacity and specialist skills
when needed. This approach allows the council to maintain its co-sourced support model into 2026/27,
with the expectation that external input will reduce over time
as the in-house team is strengthened. This model aims to ensure audit quality by providing access to a wider pool of expertise and capacity, thereby enabling the delivery of the audit plan and addressing risks effectively. Other measures include lessons learned sessions, quarterly balance sheet reviews, and enhanced training for finance staff. Specialist support has also been secured for specific accounting areas, and additional interim staff are being brought in to bolster the team.
Public reports pack Wednesday 25-Mar-2026 19.00 Audit and Risk Committee
