An audit of Tower Hamlets Council's schools has revealed significant gaps in governance, with two schools receiving a limited assurance opinion. The findings, presented to the Audit Committee on Thursday 23 July 2026, highlighted common issues including inadequate terms of reference for governing bodies, inconsistent interest declarations, and problems with Disclosure and Barring Service (DBS) checks.

Timeline illustrating the EY audit plan for the year ending March 31, 2026, detailing key stages from planning to audit opinion.
Timeline illustrating the EY audit plan for the year ending March 31, 2026, detailing key stages from planning to audit opinion.

Out of 12 schools audited during the 2025/26 financial year, three received a substantial assurance opinion, an increase from the previous year. However, two schools were found to have significant gaps and weaknesses requiring improvement.

Kate Brunning, Interim Head of Internal Audit, Anti-Fraud and Risk, presented the summary report, noting a decrease in the total number of recommendations raised compared to previous years, but an increase in their severity.

Common themes for recommendations continued to be in governance and procurement. Specific issues identified included inadequate terms of reference for governing bodies, inconsistent interest declarations, and DBS check issues. Income collection and banking controls also showed areas for improvement.

The report also detailed a self-assessment of conformance with Global Internal Audit Standards (GIAS), which indicated general conformance but highlighted areas for improvement, particularly regarding the absence of an External Quality Assessment (EQA) in 2025/26. The Head of Internal Audit's annual opinion for 2025/26 provided limited assurance on the Council's governance, risk management, and control arrangements.

A chart illustrating the projected progression of audit opinions from disclaimer to unqualified over several financial years, with associated assurance levels.
A chart illustrating the projected progression of audit opinions from disclaimer to unqualified over several financial years, with associated assurance levels.

Despite these findings, the Council has allocated £4.5 million over three years to support improvements, with £2 million allocated for 2026/27. The external auditors, EY, have indicated that an unmodified opinion might be achievable by 2029-30, assuming all goes well. The full report can be found in the Public reports pack 23rd Jul 2026 Audit Committee.