Three audits at Barking and Dagenham Council have been flagged for limited assurance
, according to a report presented to the Audit and Risk Committee. The audits in question relate to Section 17 of the Crime and Disorder Act 1998, the governance of council companies, and loans and investments.
The limited assurance
designation indicates that while controls are in place, there are areas requiring further strengthening. The report detailed that for Section 17 of the Crime and Disorder Act, there were significant gaps in governance, oversight, and organisational awareness, leading to unclear ownership and inconsistent embedding of responsibilities in decision-making. Management has agreed to address these issues, with actions due for completion by 30 April 2026.
Specifically, the report highlighted a lack of a designated strategic or operational lead for overseeing Section 17 duties, the absence of formal documented guidance for officers on incorporating Section 17 into their work, and no formal mechanism to monitor or report on the outcomes of Section 17 actions. These findings have led to unclear ownership, inconsistent embedding of responsibilities, and reduced compliance assurance.
Regarding parent company governance, while progress has been made in strengthening oversight of the council's wholly-owned companies, weaknesses persist, particularly in the oversight of BD Group. This has resulted in weak day-to-day governance, reduced scrutiny of contractual compliance, and diminished financial accountability. Steps being implemented to address these issues include changes to the Shareholder Agreement and the production of a new Business Plan, with actions due for completion by 30 June 2026.
For loans and investments, the review found that while treasury management practices are aligned with CIPFA requirements, a significant shortfall in Right to Buy receipts was based on unvalidated assumptions. This undermined confidence in the project's financial viability and sustainability. The report states that 'Action yet to be agreed' regarding this high-risk finding, with no timeline yet set for its resolution.
Despite these areas of limited assurance, the Internal Audit Annual Report for 2025/26 concluded that the council's framework of governance, risk management, and internal control is generally satisfactory with some improvements required
. This opinion indicates that the framework is broadly effective, with controls operating well in most areas, though specific weaknesses and non-compliance could put the achievement of objectives at risk.
The majority of audits resulted in reasonable
or substantial
assurance opinions, and no critical
findings were raised during the financial year. The report also identified significant weaknesses in procurement and contract management arrangements, which are not yet fully embedded or consistently applied across the organisation.
The Procurement Reform Readiness
audit was deferred to 2026/27 pending a structure review of the Procurement Team.
Councillor Phil Waker expressed concern about the lack of assurance in contract management. Vanessa Bateman, Head of Assurance, acknowledged these procurement issues, stating that work is underway to address them and that updates will be provided in future reports. She noted that assurances in this area will remain low until governance and internal controls are fully embedded and new systems are rolled out.
More information on the council's audit and risk committee can be found in the Public reports pack Wednesday 01 July 2026.
