Agenda and minutes

Apologies for absence were received from Councillors Blackman, Brown and Kansagra, and from Rhys Jarvis (Independent co-opted member).

Members noted that Councillor Georgiou was attending as a substitute for Councillor Brown with Councillor Ibrahim attending as a substitute for Councillor Blackman.

In addition, it was reported that Councillor Jayanti Patel was attending in an informal capacity to represent Councillor Kansagra.

Members are invited to declare at this stage of the meeting, the nature and existence of any relevant disclosable pecuniary or personal interests in the items on this agenda and to specify the item(s) to which they relate.

David Ewart (Independent Chair) declared a personal interest as a member of CIPFA.

Councillor Donnelly-Jackson declared a personal interest in relation to item 3 - Minutes of the Previous Meeting & Action Log, given that she was in the process of being appointed as a Council representative to the boards of the Council owned subsidiary companies i4B Holdings Ltd and First Wave Housing Ltd.

No other declarations of interest were made by members during the meeting.

To hear any deputations received from members of the public in accordance with Standing Order 67.

There were no deputations considered at the meeting.

4.1      To approve the minutes of the previous meeting held on Tuesday 24 March 2026 as a correct record.

4.2      To note the updated Action Log from previous meetings of the Audit & Standards Advisory Committee.

(Agenda republished to include the minutes from the previous meeting on 15 June 2026)

In reviewing the minutes from the 24 March 2026, two corrections were identified in relation to Min 7: External Audit Update Report, which were as follows:

• Under the 3^rd bullet point reference to the statutory deadline for signing off the 2025–26 accounts should have been recorded as the 31st January (rather than 21st) and Grant Thornton's internal target being to have signed all local authority audits by the end of November (rather than the 20th November).

Subject to the above corrections, it was RESOLVED that the minutes of the previous meeting of the Committee held on Tuesday 24th March 2026 be approved as a correct record.

Members noted the update provided in relation to the Action Log of issues identified at previous meetings, which it was noted would remain subject to ongoing review by the Chair and Vice-Chair. The Chair advised that he had received a number of queries regarding three outstanding items. One, relating to environmental risk, which was noted as having been responded to, and two other queries relating to council procurement and fire safety/gas safety logs for i4B. These actions were being progressed, with officers confirming they would be followed up with responses to be provided for the Committee in advance of the next meeting.

To consider any matters arising from the minutes of the previous meeting.

None.

Following on from its referral at the previous meeting in March 2026, this report presents the Monitoring Officer’s Annual Report to the Audit and Standards Advisory Committee (ASAC) for 2025. The report provides an update on Member conduct issues and the work of the Audit and Standards Advisory Committee, the Audit and Standards Committee (ASC) and the Monitoring Officer during 2025 together with the quarterly reports for Q3 & Q4 2025-26 on gifts and hospitality registered by Members and the status of Member training following the May 2026 elections.

Members are asked to note that the report also includes details on a proposed amendment to the Members’ Code of Conduct Complaints Procedure, which (subject to approval) will require referral to the Audit & Standards Committee for formal approval and adoption. The amendment relates to the proposed extension of the normal deadline for carrying out an initial assessment under the Members’ Code of Conduct Complaints Procedure to 15 working days.

Bianca Robinson (Principal Lawyer, Constitution, Governance and Finance) introduced a report from the Corporate Director Finance & Resources presenting the Monitoring Officer's Annual 2025 which provided an update on Member conduct issues and the work of the Monitoring Officer during 2025 together with the Q2 & Q3 quarterly reports on gifts and hospitality registered by Members and status of Member training following the May 2026 elections. In presenting the report, the following key points were highlighted:

·            The summary of the Committee's work on standards-related issues during 2025, including monitoring of member declarations of gifts and hospitality, attendance at mandatory training, standards-related case law, use of RIPA powers, the Annual Governance Statement, and the consultation on changes to the national standards regime undertaken during 2025, as detailed within sections 3.2 and 3.3 of the report.

·            The summary of gifts and hospitality declared by members during Q3 & 4 2025–26, as detailed within Appendix B of the report.

·            The summary of complaints (totalling ten) which had been received by the Monitoring Officer during 2025 alleging breaches of the Members’ Code of Conduct. Of these complaints, members were advised three had not progressed beyond the Initial Assessment Stage; six had not progressed beyond the Assessment Criteria Stage and one had not progressed beyond the Review Stage with a summary of each complaint and outcome detailed within Appendix A of the report.

Having reviewed the experience in dealing with the complaints received, members were advised of the time consuming nature in their investigation and assessment with the disposal of complaints even at relatively early stages of the process often identified as requiring the need for engagement and consultation with an Independent Person.  Whilst the current Code of Conduct Complaints Procedure required the Monitoring Officer to carry out an initial assessment of complaints within 10 working days officers were now of the view (based on the number and nature of complaints being received) that a more realistic timescale was required in order to better manage expectations and reflect the time required for assessment, with it therefore recommended to the Audit and Standards Committee that the normal timeframe for carrying out initial assessments be increased from 10 to 15 working days.

·            One Monitoring Officer advice note had been issued during 2025 providing practical guidance on the behaviours that would and would not constitute bullying (under paragraph 8 of the Code) and intimidation (under paragraph 9 of the Code).

·            All mandatory member training had been completed during 2025. Following the May 2026 local borough elections, a new mandatory member programme was underway, on which updates would continue to be provided for the Committee.

Having thanked Bianca Robinson for the report, the Chair invited questions and comments from the Committee, with the following issues raised:

·            Whilst supportive of the recommended extension of the timescale for initial assessment of complaints by the Monitoring Officer under the Code of Conduct procedure, members were keen to ensure this was subject to ongoing review to ensure the extended period improved the quality of assessments, rather  ...  view the full minutes text for item 6.

This report summarises the activity of Internal Audit for the financial year 2025-26, including an update on work completed since the previous updated provided in December 2025 including a summary on delivery of the Internal Audit Plan, key findings arising from audit work, and the extent to which agreed management actions have been implemented.

The report also provides the annual audit opinion, provided by the Deputy Director Organisational Assurance and Resilience (Head of Internal Audit), on the adequacy and effectiveness of the Council’s framework for governance, risk management and control, which is used to support the Council’s Annual Governance Statement.

Darren Armstrong (Deputy Director Organisational Assurance and Resilience) introduced a report from the Corporate Director Finance & Resources which outlined the activity undertaken by Internal Audit during 2025-26 (and work undertaken since the previous update in December 2025) and included the Annual Audit opinion provided by the Deputy Director Organisational Assurance and Resilience (as Head of Internal Audit) on the adequacy and effectiveness of the Council’s framework for governance, risk management and internal control used to support the Annual Governance Statement.

Members were advised that the report provided a consolidated overview of Internal Audit activity during 2025-26 including delivery of the Internal Audit Plan, key findings arising from audit work, and the extent to which agreed management actions had been implemented.  The Chair advised that questions on the Annual Report would be taken first, followed by separate consideration of the Head of Internal Audit Opinion.

In considering the Internal Audit Annual Report (as detailed within Appendix 1 of the report) the Committee noted the following key points:

·            The ongoing scale and complexity of the Council’s operations with Internal Audit continuing to deliver its work through a risk-based and flexible approach enabling the function to balance the need to provide assurance over core systems and controls while responding to emerging risks, organisational priorities and management requests.  As in previous years the 2025-26 Internal Audit Plan (approved by the Committee in March 2025) had been structured across four components: Core assurance- providing assurance over key financial systems and fundamental controls; Agile risk-based work – enabling responsive coverage of emerging and priority risk areas; Consultancy and advisory work – supporting management in strengthening control design and governance and Follow-up activity – confirming that agreed audit actions had been implemented and embedded.  Members were reminded that the approach outlined had been designed to reflect Internal Audit’s move towards a more agile and risk-focused model, ensuring that assurance activity remained aligned to the Council’s evolving risk profile while maintaining appropriate coverage of core systems.

·            In terms of the approach outlined, members were advised that the Internal Audit Plan had therefore been designed to address key risk areas identified with the potential to impact on delivery of the Council’s objectives, drawing on the Strategic Risk Register, prior audit findings, sector intelligence and consultation with senior management with delivery of the Plan providing assurance across a broad range of areas, including - key financial systems; high inherent risk areas; ICT and cyber controls; major programmes and operational services as well as cross-cutting corporate functions such as procurement and contract management.  At the same time, the plan had also retained flexibility to respond to emerging risks and priorities which had enabled Internal Audit to undertake additional work, including advisory reviews and management-requested assurance, where this has been identified as beneficial, with the Internal Audit structure including the ability to utilise external specialist expertise through the ongoing co-sourced provider arrangements providing a structure able to cover the full breadth of council risk.

Taken together the programme of work had  ...  view the full minutes text for item 7.

The report sets out a summary of the counter fraud activity undertaken in 2025-26, including both proactive and reactive work across a range of fraud risks and also fulfils the requirements of the Local Government Transparency Code 2015, which requires local authorities to publish details of their counter-fraud activity.

Darren Armstrong, Deputy Director Organisational Assurance & Resilience, introduced a report from the Corporate Director Finance & Resources presenting the Council’s Annual Counter Fraud Report for 2025-26, which summarised the counter fraud activity undertaken across multiple fraud types (including internal fraud, housing tenancy fraud, external fraud and proactive work) and had been designed to support the Committee in obtaining assurance on the robustness of the Council’s counter fraud arrangements.  The report also fulfilled the requirements of the Local Government Transparency Code 2015, which required local authorities to publish details of their counter-fraud activity.

In considering the report the following key issues were noted:

·            The high priority identified in terms of counter fraud activity given the inherent and significant level of risk posed by fraud to the Council, with the Council having established a well developed approach towards tackling fraud and corruption based on a combination of reactive and proactive prevention and detection activities in line with best practice.

·            The Annual Counter Fraud Plan had been designed to ensure that resources were being effectively targeted and deployed to prevent and detect fraud, underpinned by the Council’s Anti-Fraud and Bribery & Whistleblowing policies.  A summary of all reactive and proactive counter fraud activity undertaken in 2025-26 had been detailed within the Annual Counter Fraud Report attached as Appendix 1 to the report.

·            The broad programme of counter fraud activity undertaken during 2025–26 which had included reactive investigations as well as proactive preventative work across all major fraud risk areas involving 34 internal fraud referrals which members were advised had involved 31 cases concluded;152 housing fraud cases, with 133 cases closed and 40 external fraud referrals, with 61 cases concluded.

·            Across these areas, fraud and/or irregularity had been identified in a number of cases, with outcomes ranging from recovery of assets and prevention of financial loss through to strengthening of controls and referral for further action.  Members were advised that tenancy and housing fraud remained one of the Council’s highest priority fraud risks due to its direct financial impact and the importance of ensuring that social housing continued to be allocated fairly and to those in genuine need. During 2025–26, the Counter Fraud and Investigation activity had delivered strong outcomes in this area, including the conclusion of 22 fraudulent housing cases, resulting in the recovery or protection of properties and a notional financial benefit of approximately £1.45 million.  This work had included the recovery of properties where tenants were no longer in occupation, prevention of fraudulent succession claims and identification of unauthorised occupants.  In response to emerging risks, members were advised the service had also strengthened preventative controls, including introduction of enhanced verification for Right to Buy applications, implementation of a structured verification process for tenancy succession applications and increased use of data and intelligence tools to identify anomalies and improve assurance with the approach not only felt to support the recovery of properties but also strengthen the integrity of the housing allocation processes, reducing the risk of future fraud.

·            Whilst referrals in relation to external  ...  view the full minutes text for item 8.

To receive the annual report from Chair of the Audit and Standards Advisory Committee.  The report covers the work of both the Audit & Standards Advisory Committee as well as the Audit & Standards Committee for the municipal year 2025-26.

Members are asked to note that the report has been prepared independently by the Chair of the Audit & Standards Advisory Committee.

David Ewart, as Chair, introduced the Annual report produced as Chair of the Audit & Standards Advisory Committee which covered the work of both the Advisory and Audit & Standards Committee during the 2025-26 Municipal Year, in line with the requirements and principles set out within CIPFA’s Position Statement regarding Audit Committees.

In noting the report was the fourth annual report produced under the current requirements David Ewart (as Chair) highlighted the following as key issues identified through the work undertaken across both Committee’s during 2025-26:

·            Thanks were recorded to members of the previous committee for their work during the year, and to the independent members for their continued support.

·            The high and increasing level of risks being faced by the Council and across local government as a whole, given the continuing pressures on local authority finances and need to ensure robust system of governance and financial control were maintained.

·            The Council’s financial resilience and sustainability. Whilst noting that Brent remained in a relatively good position with regard to financial sustainability, with an adequate (albeit reducing) level of reserves, it was recognised that the Council had not been able to contain expenditure within budget during 2024-25.  In commending the efforts made to ensure Brent had been one of the few authorities to have the external audit of its accounts signed off before the backstop date, the Committee had noted there remained a number of ongoing issues which may lead to future problems in terms of the Council’s financial resilience.  These included ongoing pressures on demand for Council services (which had been recognised as a key issue by the External Auditors in their annual (Value for Money) report and accompanying recommendations for action) along with level of external debt given the impact of higher interest rates.

·            The Council’s governance and internal control arrangements.  Whilst confirmed as sound within both the External Auditor’s Value for Money report for 2024-25 (with the exception of their findings concerning Financial Sustainability and the improvements in the Housing service) and Head of Internal Audits report and opinion issued in June 2025 a number of areas had been identified for ongoing review particularly in relation to the continuing need (whilst recognising the improvements made) to address the ‘second line’ of defence (i.e. the monitoring and reporting of information and data, by management, in respect of the effectiveness of the ‘first line’ of defence) and implementation of internal audit recommendations/actions and need to address the management of Housing Compliance, following the Council’s self-referral to the Housing Regulator.  In addition, the Committee had also noted the recommendations made by the Corporate Peer Challenge focussed around strengthening the Council’s financial management in relation to development of the Medium-Term Financial Strategy (MTFS), use and restoring of General Fund and Housing Revenue Account (HRA) reserves to sustainable levels and financial processes to improve income generation, productivity, and efficiency.

·            The focus on delivery of the Internal Audit Plan and move towards a more agile and risk-focused model, ensuring that assurance activity remained aligned to the  ...  view the full minutes text for item 9.

This report sets out the draft Annual Governance Statement (AGS) for 2025-26 as required by the Accounts and Audit Regulations 2015 (as amended) which details the outcome of the annual review of the effectiveness of the Council’s governance framework, including its system of internal control.

Members are asked to note that the the format and structure of the AGS has been refreshed for this year and is aligned with the CIPFA/SOLACE Delivering Good Governance in  Local Government Framework Addendum (2025) and is being presented to the Audit & Standards Advisory Committee for consideration, in advance of referral on to the Audit and Standards Committee for formal approval.

Darren Armstrong (Deputy Director Organisational Assurance & Resilience) introduced a report from the Corporate Director finance & Resources that set out the draft Annual Governance Statement (AGS) for 2025-26 as required by the Accounts and Audit Regulations 2015.

In presenting the report the Committee noted that the Annual Governance Statement (AGS) was a statutory requirement bringing together the outcome of the annual review of the Council's governance framework and system of internal control with the statement having been developed collaboratively between Organisational Assurance, Legal, Finance and senior management across the Council, ensuring it reflected a full council perspective and a balanced body of evidence.  Members were advised that the format had changed significantly this year, aligning to the CIPFA/SOLACE “Delivering Good Governance” framework and its 2024 addendum to improve clarity and strengthen the link between governance principles, evidence and outcomes for residents.

Pameel Crowther Newman (Head of Litigation and Dispute Resolution & Acting Monitoring Officer) then presented the statement in detail, with the following key points noted:

·            The AGS evidence compliance with the Accounts and Audit Regulations in providing a structured evaluation of how the Council's governance arrangements, including internal control, risk management and organisational structure, supported delivery of its priorities. The statement was noted to have been prepared with reference to the seven core principles of the CIPFA/SOLACE “Delivering Good Governance in Local Government” framework.

·            In developing the 2025–26 AGS, particular emphasis had been placed on moving away from a standardised, compliance-based approach towards a more organisation-specific and reflective narrative. The aim had been for the Statement to present a clear and transparent account of how governance arrangements had operated in practice over the course of the year. Accordingly, the AGS had been positioned not only as a statement of compliance, but as a narrative of assurance, improvement, and accountability including a clear, comprehensive and transparent account of how the Council’s governance arrangements had operated, how their effectiveness has been reviewed and how the Council intended to strengthen them further moving forward.

·            The Council was reported to have continued to operate in a challenging financial, economic and regulatory environment, with sustained demand-led pressures (particularly in temporary accommodation and social care) and increased regulatory expectations relating to housing safety compliance and financial reporting. Despite this, the Council had maintained a robust and mature governance framework, supported by strong statutory officer leadership, effective member oversight and well-established assurance arrangements.  The Significant governance issues identified had been identified in Section 6 of the AGS, which members noted had related to housing compliance (including the Council's self-referral to the Regulator of Social Housing), the Procurement Improvement Plan (following the procurement peer review), and the asset register and valuation process with an Improvement Action Plan having been developed to address the main issues and key actions identified as a result, as detailed within Appendix 1 of the AGS.

·            Details were also provided in relation to progress made in delivery of the Improvement Plan from 2024-25, as set out in Section 5 of the AGS.  This had included  ...  view the full minutes text for item 10.

To receive and consider the Indicative External Audit Plans (including the Pension Fund) for the year ending 31 March 2025.

As additional background, members are also being asked to note the External Audit progress and assurance report along with relevant sector updates which has also been attached for consideration.

(Agenda republished to include the External Audit Progress and Sector Update Report on 15 June 2026)

Sophia Brown (Key Audit Partner, Grant Thornton) introduced the External Audit Progress update for the Council including the External Audit Plan for both the Council and Pension Fund for year ending 31 March 2026.  In presenting the report the following key points were highlighted:

·            The significant risks identified for the 2025–26 audit were standard risks for local authorities, with no Brent-specific risks this year; the fraud risk relating to income recognition had been fully rebutted, with audit work focused on the risk relating to cut-off of non-pay expenditure.

·            A change to the accounting code meant land and buildings would, in intervening years between five-yearly valuations, be revalued using an appropriate index (or desktop valuation where no suitable index existed) for the first time in 2025–26 as a change applying to all local authorities with the audit team working closely with finance officers on the processes and controls supporting this and the fixed asset register.

·            Regarding the audit fee, which was set via Public Sector Audit Appointments (PSAA), this was noted to be £560,502. Planning materiality for the Council had been set at £23.2 million (subject to revision once gross expenditure for the year was confirmed), with a “clearly trivial” threshold of £1.16 million and a specific, lower materiality of £20,000 applied to senior officer remuneration and termination benefits, given the public sensitivity of this information.

·            Two significant weaknesses had been raised in relation to 2024–25: one concerning financial sustainability (medium-term financial planning and the development of a pipeline of recurrent savings and income generation) and one on the “economy, efficiency and effectiveness” area, relating to the Council's self-referral to the Regulator of Social Housing. Improvement recommendations had also been raised regarding the property strategy, reflecting the Dedicated Schools Grant deficit and Housing Revenue Account planning within the Medium-Term Financial Plan, and strengthening capacity and capability within the finance team to meet statutory reporting deadlines.

·            As an update on progress, the draft 2025–26 financial statements were confirmed to have been received from the finance team, representing welcome progress. Whilst the statutory deadline for completing the 2025–26 audit remained the end of January 2027, Grant Thornton were aiming to have substantially complete their work by mid-September 2026 with the findings reported to the Committee in September, a considerably shorter timeframe than in recent years, supported by early interim audit work already undertaken.

·            An independence consideration was noted: Sophia Brown had previously been part of the audit team prior to becoming Key Audit Partner for the Council, representing a potential familiarity threat; a two-year extension to the standard five-year engagement period had been approved by Grant Thornton's ethics function and by PSAA, with agreed safeguards set out in the plan.

Having thanked Sophia Brown for the plan, the Chair invited questions, with the following issues raised:

·            In seeking further clarification relating to the independence disclosures, officers assured members that the specific point regarding the standard cap on non-audit work did not apply to housing benefits work, which formed the majority of the other  ...  view the full minutes text for item 11.

To consider the Committee’s work programme for the 2026 -27 Municipal Year and note the dates identified (as set out below) for future meetings:

·            Monday 16 June 2026 (including Member Learning & Development session)

·            Monday 27 July 2026

·            Wednesday 23 September 2026

·            Monday 30 November 2026

·            Tuesday 2 February 2027

·            Wednesday 24 March 2027

Please note all of the above meetings are scheduled to commence at 6pm and will be held in person at Brent Civic Centre.

It was RESOLVED to note the Committee’s Forward Plan and Work Programme for the 2026-27 Municipal Year with the dates for further meetings noted as:

• Wednesday 27 July 2026
• Wednesday 23 September 2026
• Monday 30 November 2026
• Tuesday 2 February 2027
• Wednesday 24 March 2027

It was noted that development of the Committee’s work programme would continue to be kept under close review with the Chair and Vice Chair working closely with officers to ensure sufficient balance capacity was maintained to allow for the appropriate consideration of each item at future meetings and members invited to raise any additional items they considered should be included, as part of the ongoing review of the Committee's effectiveness.

Notice of items to be raised under this heading must be given in writing to the

Deputy Director Democratic & Corporate Governance or their representative before the meeting in accordance with Standing Order 60.

There were no items of urgent business raised for consideration at the meeting.