Home Decisions Meetings News
← Back to Audit, Finance & Performance

Audit, Finance & Performance

Wednesday 15th July 2026 • View on LB Hillingdon’s website
Meeting documents
👥 Attendance details📄 Agenda frontsheet PDF 391 KB📦 Agenda reports pack PDF 18 MB📝 Printed minutes PDF 252 KB
Read the text of: Agenda frontsheet PDF 391 KB (1 page)
_________________________________________________________________________ - Page 1 - Minutes Standards Committee Assessment Sub- Committee Monday, 5 July 2010 Meeting held at Room A261 - Civic Centre Published on: 5 July 2010 Members Present: Malcolm Ellis (Chairman) Councillors Barrett, Hensley and MacDonald Officers Present: Messrs Alagh and White 2. DECLARATIONS OF INTEREST There were no declarations of interest in matters coming before the meeting. 3. CONFIRMATION THAT ALL THE ITEMS WILL BE DEALT WI TH IN PART II It was confirmed that the business of the meeting would be conducted in private. 4. ASSESSMENT OF COMPLAINT The Sub-Committee met to consider an allegation made by Mr Graham Horn that Councillor Gardner had contravened one or more provisi ons of the Members’ Code of Conduct (the Code) which she had undertaken in writing to observe. Members satisfied themselves that, if proven, the alleg ation would constitute a breach of paragraphs 3 [1] (you must treat others with respect) and 5 (you must not conduct yourself in a manner which could reasonably be re garded as bringing your office or authority into disrepute). In considering the complaint against the agreed assessmen t criteria Members concluded that the Complainant had not submitted suffici ent information to satisfy the Sub-Committee that the complaint should be referr ed for investigation or other action. RESOLVED: That no further action be taken in relati on to the complaint against Councillor Gardner. A full written summary of the decision is available to the public.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

Read the text of: Printed minutes PDF 252 KB (1 page)
_________________________________________________________________________ - Page 1 - Minutes Standards Committee Assessment Sub- Committee Monday, 5 July 2010 Meeting held at Room A261 - Civic Centre Published on: 5 July 2010 Members Present: Malcolm Ellis (Chairman) Councillors Barrett, Hensley and MacDonald Officers Present: Messrs Alagh and White 2. DECLARATIONS OF INTEREST There were no declarations of interest in matters coming before the meeting. 3. CONFIRMATION THAT ALL THE ITEMS WILL BE DEALT WI TH IN PART II It was confirmed that the business of the meeting would be conducted in private. 4. ASSESSMENT OF COMPLAINT The Sub-Committee met to consider an allegation made by Mr Graham Horn that Councillor Gardner had contravened one or more provisi ons of the Members’ Code of Conduct (the Code) which she had undertaken in writing to observe. Members satisfied themselves that, if proven, the alleg ation would constitute a breach of paragraphs 3 [1] (you must treat others with respect) and 5 (you must not conduct yourself in a manner which could reasonably be re garded as bringing your office or authority into disrepute). In considering the complaint against the agreed assessmen t criteria Members concluded that the Complainant had not submitted suffici ent information to satisfy the Sub-Committee that the complaint should be referr ed for investigation or other action. RESOLVED: That no further action be taken in relati on to the complaint against Councillor Gardner. A full written summary of the decision is available to the public.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

Attendance
Present: Councillor Tony Eginton, Councillor Henry Higgins, Councillor Adam Huddle, Councillor Stuart Mathers, Councillor John Riley, Councillor Daniel Singham

Agenda

12. Apologies for absence
There were no apologies for absence.
13. Declarations of interest
Councillor Tony Egiinton declared a non-pecuniary interest in agenda item 6 as he is a retired member of the Local Government Pension Scheme. He remained in the room for the discussion of the item.
14. To confirm that all items marked Part I will be considered in Public and that any items marked Part II will be considered in Private
All items were heard in Part I.
15. Minutes of the Meeting held on 9 June 2026 PDF 225 KB
RESOLVED: That the minutes of the meeting held on 9 June 2026 be confirmed as an accurate record.
📄 Minutes of the Meeting held on 9 June 2026 PDF 225 KB
Read the text of this document (3 pages)
Minutes AUDIT, FINANCE & PERFORMANCE COMMITTEE 9 June 2026 Meeting held at Committee Room 5 - Civic Centre Committee Members Present: Councillors Henry Higgins (Vice-Chair), Adam Huddle, John Riley and Tony Eginton LBH Officers Present: Tony Zaman – Chief Executive Officer Pete Carpenter – Director – Pensions, Treasury & Statutory Accounts Matthew Wallbridge – Chief Operating Officer Daniel Toohey – Head of Legal Services Lloyd White – Head of Democratic Services Anisha Teji – Senior Democratic Services Officer Councillors Present: Councillor Stuart Mathers, Leader of the Labour Group Councillor Sital Punja 2. APOLOGIES FOR ABSENCE (Agenda Item 1) Apologies for absence were received from Councillor Kaushik Banerjee. 3. DECLARATIONS OF INTEREST (Agenda Item 2) Councillor Tony Eginton declared a non -pecuniary interest due to being a retired member of the pension scheme. He remained for the discussion of all items. 4. TO CONFIRM THAT ALL ITEMS MARKED PART I WILL BE CONSIDERED IN PUBLIC AND THAT ANY ITEMS MARKED PART II WILL BE CONSIDERED IN PRIVATE (Agenda Item 3) It was confirmed that all items would be heard in Part I. 5. MINUTES OF THE MEETING HELD ON 14 MAY 2026 (Agenda Item 4) RESOLVED: That the minutes of the meeting held on 14 May 2026 be confirmed as an accurate record. 6. MINUTES OF THE PREVIOUS AUDIT COMMITTEE MEETING HELD ON 10 FEBRUARY 2026 (Agenda Item 5) RESOLVED: That the minutes of the previous Audit Co mmittee held on 10 February 2026 be confirmed as an accurate record subject to a minor typo. 7. RECRUITMENT FOR INDEPENDENT CHAIR OF THE COMMITTEE (VERBAL) (Agenda Item 6) The Committee was informed that recruitment arrangements wer e being finalised. A timetable had been set for advertising, shortlisting and interviews, leading to a report to Full Council to confirm the appointment. Members sought clarification on the interview process. It was explained that a shortlist of candidates would be interviewed before Members agreed the preferred appointment. It was also noted that there may be recruitm ent challenges due to increased demand for independent members. RESOLVED: Members noted the verbal update on the Recruitment of the Independent Chair of Audit, Finance and Performance Committee. 8. EXTERNAL AUDIT UPDATE: PROCESS FOR AUDITING THE 2024/25 ACCOUNTS MAIN ACCOUNTS AND PENSION FUND ACCOUNTS (Agenda Item 7) This item was deferred to the meeting on 15 July 2026. 9. GOVERNANCE REVIEW IMPROVEMENT PLAN UPDATE (Agenda Item 8) The Committee was informed that the Governance Review Improvement Plan (GRIP) provided a strategic framework to strengthen governance, improve accountability and enhance financial resilience, with updates presented across financial, directorate and constitutional governance. It was noted that progress had been made in financial governance, including strengthened spend controls, progress on closing the accounts, and improvements to systems such as Oracle, alongside plans to address longer -term financial sust ainability and enhance monitoring through new reporting approaches. Members were also advised that progress across directorates had improved the use of performance, financial and risk data through integrated reporting and dashboards, enabling a more joined -up and efficient approach. Constitutional updates had been approved, with further minor changes and a future report on procurement standing orders expected. During the disc ussion, Members welcomed the progress made through the GRIP and noted that no actions were rated red. However clearer reporting and greater assurance was requested in some areas. It was suggested that the report could be simplified, with a clearer focus on the current position as some updates were difficult to follow and appeared unchanged. Members also requested more detail on service delivery models, a summary of the Lawyers in Local Government report and greater transparency around governance arrangements, including the Improvement Board and Digital Change Board. In response, officers advised that work on service delivery models was ongoing following the 2026/27 budget work and further detail would be brought to a future meeting. The Monitoring Officer c onfirmed that a summary of the Lawyers in Local Government report would be shared after the meeting. Officers also noted that the Improvement Board has not yet been established and that reporting arrangements would be confirmed once it was in place. Update s from internal governance boards would continue to be reported through existing summary reports to Cabinet. In response to questions on Oracle, officers explained that the main risks related to embedding new processes and improving data quality at sourc e. This was being supported by ongoing system reviews and stronger data governance. Members further queried the Council’s key risks and were advised that the primary concern remained delivering against the £50 million budget gap and achieving financial sus tainability within a challenging timeframe. Additional discussion focused on training, culture and accountability, with officers confirming that mandatory training, clearer ownership by budget managers and improved reporting arrangements would support cult ural change and stronger governance. Officers added that a more integrated and preventative approach to debt management was being introduced alongside improvements in data accuracy and forecasting. Whil st progress had been made it was noted that continued improvement particularly in delivering savings and making best use of systems remained important. RESOLVED: That the update to the Governance Review Improvement Plan be noted. 10. FORWARD PLAN (Agenda Item 9) RESOLVED: That the Forward Plan be noted. 11. WORK PROGRAMME (Agenda Item 10) Members agreed to submit suggestions for future work programme topics, including areas for ongoing monitoring and more detailed review and requested that key items such as the interna l audit report Q4, Annual Governance Statement and council companies be considered for inclusion. RESOLVED: That the work programme be noted. The meeting, which commenced at 6.00 pm, closed at 7.18 pm. These are the minutes of the above meeting. For more information on any of the resolutions please contact Anisha Teji on ateji@hillingdon.gov.uk. Circulation of these minutes is to Councillors, Officers, the Press and Members of the Public.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

16. Counter Fraud Annual Report 2025/26 PDF 144 KB
The Annual Counter Fraud Report 2025/26 was presented to the Committee. It was reported that counter fraud activity had delivered £12.7 million of financial benefit to the Council across housing, revenues and adult social care. Members were advised that 113 Council properties had been recovered and 36 emergency accommodation units had been closed generating significant savings. Adult social care outcomes had improved by 47%, while revenues outcomes had increased by 71% in the final quarter. Businesses not paying business rates had also been identified and billed approximately £2.4 million. It was noted that data matching activity had doubled during the year which supported earlier fraud detection and improved outcomes. The Counter Fraud Team had also received a Local Excellence Award in recognition of its data led approach and performance. Members welcomed the positive results achieved by the Counter Fraud Team. It was noted that resources were focused on high-value investigations, with further work planned in adult social care, debt recovery and fraud detection. Members were advised that tenancy fraud cases were identified through referrals, data matching, neighbourhood officer intelligence and proactive visits, with no evidence of an increase in housing fraud. It was also noted that a vacant post had temporarily reduced revenue inspections although the post had since been filled and outcomes had improved. The Committee congratulated the Counter Fraud Team on its achievements and noted the report. RESOLVED: That the Committee noted the Counter Fraud Annual Report for 2025/26.
📄 Counter Fraud Annual Report 2025/26 PDF 144 KB
Read the text of this document (1 page)
Classification: Public Audit, Finance & Performance Committee – 15 July 2026 AUDIT, FINANCE & PERFORMANCE COMMITTEE – 2025/26 Counter Fraud Annual Report Committee name Audit, Finance & Performance Committee Officer reporting Alex Brown – Head of Counter Fraud Papers with report 2025/26 Counter Fraud Annual Report Ward All HEADLINES The attached report presents the Committee with summary information on all Counter Fraud work covered in relation to 2025/26 and assurance in this respect. It also provides an opportunity for the Head of Counter Fraud to highlight to the Committee any significant Counter Fraud issues that have arisen which they need to be aware of. Further, the report enables the Committee to h old the Head of Counter Fraud to account on delivery of the Counter Fraud Strategic Plan and facilitates in holding management to account for managing issues identified during the course of the Counter Fraud Team activity. RECOMMENDATIONS: That the Audit Committee: 1. Note the Counter Fraud Annual Report for 2025/26; and 2. Suggests any comments/amendments. SUPPORTING INFORMATION The Counter Fraud Team supports the Council in meeting its statutory responsibility under section 151 of the Local Government Act 1972 for the prevention and detection of fraud and corruption. The work of the team underpins the Council’s commitment to a zero toleranc e approach to fraud, bribery, corruption , and other irregularities, including any money laundering activity. BACKGROUND PAPERS The Counter Fraud team holds various background research documents in relation to the Counter Fraud Strategy & workplan.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 2025-26 CFT Annual Report for AC , item 16. PDF 2 MB
Read the text of this document (20 pages)
COUNTER FRAUD ANNUAL REPORT TO AUDIT COMMITTEE: 2025/26 1st April 2026 HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 2. Contents The Counter Fraud key contacts in connection with this report are: Alex Brown Head of Counter Fraud t: 01895 556811 e: abrown@hillingdon.gov.uk Page 1. INTRODUCTION 3 2. EXECUTIVE SUMMARY 3 3. COUNTER FRAUD ACTIVITY 2025/26 6 4. COUNTER FRAUD PERFORMANCE 2025/26 10 5. FORWARD LOOK 2026/27 11 APPENDIX A - Loss Prevention Performance 2025/26 13 APPENDIX B - KPIs and Actual Performance 2025/26 14 APPENDIX C - Proactive CF Projects 2025/26 15 APPENDIX D - Counter Fraud Benchmarking 2024/25 17 APPENDIX E - Glossary of Terms 18 APPENDIX F - Social Media Campaigns 20 HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 3. 1. INTRODUCTION 1.1 The Role of the Counter Fraud Team 1.1.1 The Counter Fraud Team (CFT) in Corporate Services led by the Chief Operating Officer supports the Council in meeting its statutory responsibility under section 151 of the Local Government Act 1972 for the prevention and detection of fraud and corruption. The team is led by the Head of Counter Fraud and the work of the CFT underpins the Council’s commitment to a zero tolerance approach to fraud, bribery, corruption and other irregularities, including any money laundering activity. 1.1.2 As well as counter fraud activity, the CFT also conduct a range of other types of investigative work which do not necessarily have a criminal element to them i.e. revenue inspections, disciplinary investigations, etc. There is also a range of preventative work that the team is responsible for carrying out, such as fraud awareness training and ensuring the Council have up-to-date and appropriate corporate investigation policies and procedures. The CFT also leads on the Council's assessment of the risk of fraud and corrupti on a cross all council services. 1.1.3 This year the Head of Counter Fraud has also led the work for the council on reducing debt across the council. 1.2 The Purpose of the Counter Fraud Annual Report 1.2.1 The Counter Fraud Annual Report 2025/26 provides the Council’s Corporate Management Team (CMT) and the Audit Committee with information on the counter fraud work carried out during 2025/26. It summarises for CMT and the Audit Committee the key findings from the quarterly progress reports presented during the year. In addition, it provides an opportunity for the Head of Counter Fraud (HCF) to highlight any significant issues arising from the counter fraud work in 2025/26. 1.2.2 The Annual Report also highlights to CMT, the Audit Committee and other key stakeholders , the performance of the CFT in meeting its strategic and operational objectives (as set out in the Counter Fraud Str ategy 2025 to 2028 and The Annual Operational Plan, which provides an opportunity for the HCF to be held to account in this respect. 2. EXECUTIVE SUMMARY 2.1 Since Covid the world has faced large periods of economic uncertainty which has led to significant pressures on demand led services within the public sector. These pressures create an environment where opportunistic fraud can occur. However, with a well-resourced service, top level commitment and a risk-based plan the team are strategically placed to tackle all high- risk areas of fraud. This has led the CFT to achieving c£12.7m in financial Benefits. 2.2 In 2025 the CFT management team entered the service into the Public Sector Counter Fraud Awards 2026 for Local Excellence and Team of the Year. The nomination into both categories was based on the teams multi -disciplined approach to risk, its focus on the use of data for detection and high levels of outcomes . The team were crowned winners of the Local Excellence award which is testament to the teams’ efforts to protecting the public pursue. 2.3 Housing fraud, in particular tenancy fraud, has remained the highest fraud risk to the Council and an area of focus for the CFT , with the team conducting civil and criminal investigations into suspected cases of housing fraud, alongside proactive loss prevention projects. This has achieved overall loss prevention savings of c£7.9m in 25/26. These savings included the recovery of 113 Council properties due to tenancy fraud ; this represents an increase of 1 property on the previous year’s outcomes (24/25). The increase represents the highest property recovery achieved in a single year. HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 4. 2.4 With the cost-of-living crisis Housing services have seen a significant rise in those requiring support due to homelessness over recent years. This has led to increased numbers currently in emergency accommodation. This increased demand presents the Council with a higher risk of fraud. The CFT residency check all emergency accommodation to highlight any occurrences of non -occupation or sublet ting. In total 36 cases of accommodation placements were cancelled saving c£967k. 2.5 The CFT has focused its efforts into improving its coverage and activity within Social Care in 2025/26 by moving into new areas such as debt recovery. In total c£380k of financial savings have been identified, demonstrating an increase of 47% on the previous year’s outcomes, this is mainly due to the recovery of c£163k in Adult Social Care (ASC) debt. The piloted project for debt recovery visits has been extremely successful yielding a high return on investment (ROI), this work will be expanded in 26/27 with its own dedicated resource. Additional activity in the areas of direct payments and commissioned care is now built into the 26/27 work plan. 2.6 In the area of Revenues, the team has delivered 5,812 inspection visits during 2025/26, which is a 15% decrease from 2025/26. This is due to the team having a vacancy which will be recruited to in 2026/27. Despite this, the team has prioritised its work in areas that maximise revenue for the Council. This effective way of working has led to the CFT generating c£2.4m in additional business rates billings which is an increase of 71% compared to 2024/25. In 25/26 the team will continue this approach whilst also reviewing and improving processes using technology and dig ital solutions. This in turn will create greater capacity to increase revenue. 2.7 The CFT has operated with a Home Office Onsite Immigration Official (OSIO) integrated within the Counter Fraud Team since 2018. The OSIO support ed the Council in decision making for those that require assistance for Housing or Social Care by providing real-time Home Office data. In 2025/26 the OSIO co ntributed savings of c£ 32k to the overall counter fraud financial target. Unfortunately, in mid -2025 this service was withdrawn nationally by the Home Office. The service has now bee n replaced by an online portal to request data. This is vital to support front line services in decision making. 2.8 The CFT has increased its activity in data matching in 2025/26 across multiple fraud risk. The increase in data usage supports early detection in fraud that is cost effective. The team has access to better quality data sets through the business intelligence team that have been used for NFI and he London Counter Fraud Hub In 2025/26 data matching to highlight instances of Council Tax Re duction (CTR) and Single Person Discount (SPD) fraud resulted in c£306k of savings which is a 99% increase on 24/25. 2.9 The CFT has continued to carry out focused proactive projects as part of its strategic approach to tackle fraud in the Council ’s highest risk areas. These area s are considered to be susceptible to fraud and financial loss. Per the table at Appendix C the CFT conducted 8 proactive projects in 2025/26. The proactive drives provide assurance across the Council and highlights, where needed, any further preventative measures. 2.10 Part of the CFT’s remit is to raise awareness internally and externally, as well as promoting positive outcomes from its work. Across 25/26 the team has worked closely with the Corporate Communications Team to educate on the risks of fraud, how to report fraud, as well as share some of the successes of the CFT. Appendix F showcases some of the media work delivered in 25/26. 2.11 Chart 1 over the page, summarises the areas in which the CFT has achieved loss prevention savings (cost reductions) in 2025/26 by each quarter. The majority of loss prevention savings have been achieved by the CFT within Housing due to the team’s work in tenancy fraud. A full breakdown of all CFT loss prevention savings can be found at Appendix A. HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 5. Chart 1 - CFT Loss Prevention Savings Achieved in 2025/26 2.12 Chart 2 below summarises the allocation of CFT resource in 2025/26. Similar to previous years, the team has spent the majority of its time working within the area of Housing . The resourcing and time spent in Housing has decreased by 9% compared to 25/26, yet the team has achieved improved outcomes. The CFT has doubled its time spent on data matching using data for early detection which has had a direct impact on the improved results relating to CTR & SPD Fraud. Chart 2 - CFT Allocated Resource in 2025/26 2.13 In 2025/26 the CFT received a total of 539 referrals for investigation from both internal and external sources (compared to 584 in 2024/25). Chart 3 provides a summary of the trend in referrals over the year. 2.14 Though referrals have decreased by 8%, outcomes have remained or increased in line with previous years. The HCF and management will plan another year of fraud awareness and engagement to re-enforce the Councils anti-fraud culture and increase referrals in areas of high risk; this will include the use of the Councils internal communication platform. £0 £500,000 £1,000,000 £1,500,000 £2,000,000 £2,500,000 £3,000,000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Housing Social Care Revenues Immigration 53% 9% 23% 2% 1% 12% Housing Social Care Revenues Internal Investigations & Consultancy Reviews Debt recovery Fraud Risk Assessment & Data Matching HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 6. Chart 3 - Number of 2025/26 Referrals by Quarter *Referrals generated through CFT proactive projects or data matching exercises 3. ANALYSIS OF COUNTER FRAUD ACTIVITY IN 2025/26 3.1 This section provides a more detailed analysis of the activities of the CFT during 2025/26, detailing specific work streams and the trends within each area for comparison and contrast. The activities of the CFT were predominantly focused on three main fraud areas. Housing, Social Care and Revenues. The CFT also conducted proactive Blue Badge operations during the year as well as investigating allegations of Blue Badge misuse. 3.2 Housing Fraud 3.2.1 Throughout 2025/26 tenancy fraud investigations, emergency accommodation visits and proactive project work in homelessness and tenancy management has continued to be the key areas of work for the CFT. The CFT continues to proactively identify and investigate instances of tenancy fraud. This combined approach has enabled the team to d eliver effective loss prevention savings and recover a substantial amount of Council properties. 3.2.2 In 2025/26 the CFT transferred low fraud risk work such as verifications back to the service area to lead. This has created capacity for the service to take on emergency accommodation residency checks as business as usual and focus its efforts in areas of higher risk. 3.2.3 During the year, Hillingdon Councils approach to tackling Housing fraud took centre stage on a national level. The Counter Fraud Manager for Housing has been a guest speaker at multiple conferences including the National Anti-Fraud Network, London Borough Fraud Investigation Group and Tenancy Fraud Forum showcasing best practice and how Hillingdon tackles housing fraud. This has led to the Counter Fraud Manager being appointed as an executive member of the Tenancy Fraud Forum committee, giving Hillingdon a voice at the national table. 3.2.4 As per Chart 4 over the page , most of the counter fraud activity that was conducted within housing is heavily focussed on tenancy fraud investigations. The time spent on tenancy fraud investigations has increased by 11%, though we have seen a slight increase in outcomes, this is mainly due to the complexity of the cases and the need to take investigations through the judicial system. 0 10 20 30 40 50 60 70 80 Q1 Q2 Q3 Q4 External Internal CFT* Average HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 7. Chart 4 - CFT Work Within Housing Services in 2025/26 3.2.5 Per Table 1 below, in 2025/26 the CFT successfully recovered an outstanding 113 Council properties. This is a n increase on outcomes from 202 4/25 and represents the highest property recovery figure ever achieved by the CFT for the fourth consecutive year . The increased risk of tenancy fraud from the cost-of-living crisis, combined with the improvement in data matching, and the effective processing of investigations by the CFT has contributed to this success. Table 1 ~ Housing Tenancy Fraud Cases Housing Tenancy Fraud 2025/26 2024/25 2023/24 Cases £k/value* Cases £k/value Cases £k/value Total number of recovered properties 113 £7,910k 112 £7,840k 103 £5,768k *Calculated using the new Tenancy Fraud Forum valuation. 3.2.6 Chart 5 (over the page) summarises the loss prevention outcomes of the team by area of counter fraud activity within Housing. The team’s high levels of property recovery have contributed to the majority of the savings. In addition, the CFT continued with the emergency accommodation visiting project which led to 36 emergency accommodation placements being closed, saving c£967k. With the ongoing successes of uncovering fraud within this area of housing the CFT will continue to allocate resources into the rolling visiting project for 2026/27. 76% 1% 9% 1% 11% 2% Inv - Tenancy fraud Inv - Right to Buy Inv - B&B Vfs - Allocations Vfs - Right to Buy Vfs - First Time Buyers, Mutual Exchange & Tenancy Succession HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 8. Chart 5 - CFT Loss Prevention Outcomes in Housing 2025/26 3.3 Revenues 3.3.1 The CFT carries out inspections of businesses and domestic properties in the borough, Council Tax exemptions and discounts (such as SPD ) and data matching work through the National Fraud Initiative (NFI), as well as maximising revenue through the identification of Beds in Sheds/Annexes. The work of the CFT aims to improve efficiency and increase productivity by applying proven effective visiting processes and investigati ve techniques to maximise revenue. This ensures that Business Rates and Council Tax are correctly applied to all properties, including business premises and new-build properties. 3.3.2 Table 2 outlines the performance of the Revenues Inspection function against the previous year. The CFT has maintained its performance against the KPI, providing an effective and efficient service. The volume of inspections has remained largely stable allowing the team to remain focused in its approach of prioritising income generation through the Revenues Maximisation project. Table 2 ~ Revenues Inspections Performance 2025/26 Revenues Inspections 2025/26 2024/25 Change Total number of inspections completed 5,812 6,861 -1049 / -15% Percentage within 10 day target 99% 99% N/A 3.3.3 The CFT continued to proactively identify Beds in Sheds within the borough and a total of 80 unregistered dwellings during the year have been added to the Council Tax list . These previously unlisted properties resulted in loss prevention savings of c£73k through additional council tax billing. The identification of Beds in Sheds will continue to be a priority for the CFT with further work planned for 2026/27. 3.4 Revenue Maximisation 3.4.1 The continued focus on areas of loss prevention within NNDR has proven to be highly successful. The team have maintained its activity in this area identifying unknown businesses for ratings or those businesses that should have an increased RV through its own proactive projects and working with suppliers. This has led to billings being issued to businesses to the value of c£2.4m with the Council retaining 15% under the business rates retention model. £0 £500,000 £1,000,000 £1,500,000 £2,000,000 £2,500,000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Prevention of Accommodation Costs Property recovery Other savings/loss prevention HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 9. 3.4.2 This area of work highlighted the benefits of utilising data and using investigative practices to support inspections. With positive financial outcomes across several years, the CFT will continue to prioritise Revenues Maximisation projects during 2026/27. 3.5 National Fraud Initiative 3.5.1 The National Fraud Initiative (NFI) is a bi -annual data matching exercise overseen by the Cabinet Office. Results from the NFI matching were received at the end of Q3 2024/2 5 with work to review this workstream continuing through 2025/26. 3.5.2 Significant resource has been allocated to reviewing the NFI matches with reviews being carried out by Counter Fraud Analysts , leading to record results across a number of areas, including:  69 Housing register applications being closed where the applicant’s circumstances had changed, and they no longer qualified for housing support  Council Tax Reduction Scheme overpayments identified totalling £134,231  Two employees who were found to be carrying out polygamous working resigned from the Council  An overpayment of £79,841 in Commissioned Social Care costs identified where the Council was still being billed for a resident who had passed away 3.5.3 The NFI also produces an annual review of Council Tax Single Person Discount claims which are matched against Electoral Roll records which identified savings of £132,801.47 during 2025/26. Matches for the new financial year were received during Q4 and are being reviewed. 3.5.4 The CFT is recognised as a leading member of the NFI backed by the London Counter Fraud Hub (LCFH) which aims to proactively identify instances of cross borough fraud and loss and to provide access to regularly updated data from other public sector bodies. 3.5.5 During 2025/26 the LCFH has provided fortnightly data matching between council tenancy records and death registration information. This has identified 18 properties where the council was unaware of the death of the tenant, and which has led to the properties being recovered and returned to use earlier and more efficiently that would otherwise be the case. This has provided a notional financial saving of £1,260,000. 3.5.6 In addition to the NFI data matching the CFT ha s established internal data matching which makes use of internal council data to identify cases where council tenants have passed away and the tenancy has not ended. This internal report has identified a further 38 properties providing a notional financial saving of £2,660,000. 3.6 Blue Badge Fraud 3.6.1 The CFT have continued to support disabled motorist and protecting the blue badge scheme during 2025/26. Working collaboratively with the Metropolitan Police in tackling known hot spot areas a proactive operation was carried out at a local school in response to complaints received by the Council. 3.6.2 A total of 12 Prosecutions for Blue Badge misuse were carried out during 2025/26 leading to fines totalling £4,062 and prosecution costs of £8,623 being awarded to the Council. HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 10. 3.7 Social Care 3.7.1 During the year the CFT have continued to deploy resources to tackle fraud across various areas within Social Care. The team’s approach has been to work proactively and reactively to reduce the Council’s exposure to fraud in areas that pose considerable financial risk. The steps taken have enabled the team to cover vast areas within both adults and children’ social care. 3.7.2 The proactive approach taken by the team within Financial Assessments, has seen over 576 verifications processed in -order to highlight instances where service users have misrepresented their circumstance or failed to disclose information as part of the financial assessment process. In total, 23 cases of suspected fraud have been investigated with these cases achieving c£146k in loss prevention savings. 3.7.3 Verifications have also been completed where residents are supported by the Council under the provisions of Section 17. A total of 41 Veri fications were completed during 2025/26 leading to loss prevention savings of c£56k. 3.7.4 Chart 6 below, summarises the loss prevention outcomes of the team for the work carried out within Social Care. Over the course of 2025/26 the CFT has continued to raise its profile within these services and engage positively with stakeholders, which has delivered loss prevention savings of c£559k. Chart 6 - CFT Loss Prevention Outcomes in Social Care 2025/26 3.8 Fraud Awareness Campaign 3.8.1 The CFT has continued to embed an effective counter fraud culture within the Council. A total of 7 Fraud Awareness sessions were conducted over the course of the year. Each presentation was tailored to incorporate the different fraud risks encountered by each service area. These sessions give officers the tools to spot and report fraud, whilst encouraging them to champion a counter fraud culture organisation wide. 4. ANALYSIS OF THE COUNTER FRAUD TEAM PERFORMANCE 2025/26 4.1 The CFT introduced a suite of KPIs in 2018/19 which were agreed and implemented in liaison with CMT and the Audit Committee. These KPI’s are continuously reviewed to reflect service requirements and to encourage the service to improve performance. 4.2 The KPIs allow effective measurement of performance and enable the team and the HCF to be better held to account by CMT and Audit Committee. The table at Appendix B sets out the performance by the CFT against the KPIs throughout 2025/26 by quarter and previous years. £0 £20,000 £40,000 £60,000 £80,000 £100,000 £120,000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Section 17 Commissioned Care Debt Recovery Financial Assessments Other HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 11. 4.3 As illustrated in Appendix B, performance against KPIs has remained consistent throughout the financial year. The team has also achieved 9 of the 9 KPI targets which is a considerable achievement. The team’s overall performance can be attributed to the management information available and the management team’s engagement with staff around performance. 4.4 The table at Appendix A provides a detailed breakdown of the loss prevention performance of the Counter Fraud Team during 2025/26. The table highlights the increase in Revenues and Social Care; this is mainly due to improvements in revenues maximisation and the work carried out in debt recovery. 4.5 During 2025/26 the CFT has actively sought to obtain data from each London Borough relating to counter fraud activity and produced benchmarking information which is set out at Appendix D. This data relates to reported figures in counter fraud annual reports to oversight committees for 2024/25. There is a significant inconsistency between authorities in terms of what they each report to their oversight committees and the variation in values they each place on individual activities. As a result, this makes comparison between authorities in terms of individual counter fraud work areas difficult to quantify. 4.6 Nevertheless, there are several areas of general commonality (as set out in Appendix D), including the performance on housing fraud and Blue B adge which are present across most London Boroughs. 5. FORWARD LOOK 2026/27 5.1 Looking ahead to 2026/27, the CFT as part of the Council's Counter Fraud Strategy 2025-28 will continue to develop its risk-based approach, focusing on the areas of highest fraud risk within services. Key to this is the continued engagement with service areas on fraud risks and controls to support and underpin the Council’s “Fraud Universe” which steers the CFT Annual Operational Work Plan. 5.2 Moving ahead, there are a number of key priorities for the CFT. These include:  Implementation of the Counter Fraud Annual Operational Work Plan 2026/27, with a full and ongoing reassessment of the fraud risk profile of the Council to ensure the CFT adapts to any emerging risks;  Launch a new programme of Fraud Awareness, this will include a new mandatory e- learning package for new starters and a refresher course for existing staff . In addition, a new internal comms campaign will be launched providing insights into fraud risks , indicators and reporting;  Review and improve all processes to ensure the team is efficien t, effective and modernised through technology and digitalisation. New technology is already in place and new processes in design;  Data & Reporting to improve management information and decision making including the use of Power BI dashboards . A greater use of data will enhance fraud detection and support the deployment of resources effectively;  Sustain the level of performance the team achieved in the last 3 years into 26/27, by focusing on our strategic objectives , KPIs and the financial loss prevention target by deploying a risk based approach to fraud;  After the success of the debt recovery visiting pilot the team is to recruit to 7.0 FTE on a fixed term basis to support debt reduction across ASC, Corporate Debtors and Housing; HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 12.  In addition, the Head of Counter fraud will continue to lead the Corporate Debt Recovery Group which has seen a collaborative multi-services approach to reduce the current debt position and look at ways to prevent debt from occurring. The group has set out key principles on how the Council should operate . Activity is underway with many actions expected to be completed in 26/27;  Increase reach and activity across Social Care to support the protection of budgets through reactive and proactive activity. 5.3 The CFT would like to take this opportunity to formally record its thanks for the co -operation and support it has received from the management and staff of the Council, CMT and the Audit Committee during 2025/26. Alex Brown APCIP Head of Counter Fraud 1st April 2026 HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 13. APPENDIX A: CFT Loss Prevention Performance 2025/26 Work Area Description Quarter 1 Quarter 2 Quarter 3 Quarter 4 2025/26 Housing Right to Buy discounts £98,800 £112,800 £136,400 £0 £348,000 Property Recovery (notional savings) £1,890,000 £1,960,000 £2,030,000 £2,030,000 £7,910,000 Other savings/loss prevention £134,604 £295,690 £269,209 £270,952 £970,455 Social Care Section 17 and UASC* £3,544 £35,417 £54,338 £0 £93,299 Financial Assessments £11,295 £15,926 £110,531 £9,087 £146,839 Direct Payments £0 £0 £0 £0 £0 Other (Including Debt Visits) £129,830 £96,572 £12,888 £79,842 £319,132 Revenues Single Person Discount £7,307 £11,355 £69,244 £70,578 £158,484 Council Tax Reduction, Exemptions & Arrears £48,626 £43,869 £38,380 £28,649 £159,524 Unlisted Buildings £29,366 £20,054 £10,222 £13,556 £73,198 Housing Benefit Overpayments £1,086 £28,279 £32,131 £4,787 £66,283 NNDR** £1,639,354 £22,801 £733,651 £76,348 £2,472,154 Blue Badge Simple Caution & Financial Penalty £2,578 £8,382 £1,725 £0 £12,685 Immigration Officer Social Care Savings £10,265 £17,708 £0 £0 £27,973 Internal Pension & Salary Overpayments £1,285 £0 £240 £0 £1,525 Totals Loss Prevention Savings £304,975 £510,458 £570,078 £357,737 £1,743,248 Notional Savings £3,246,832 £2,007,136 £2,668,861 £2,097,926 £10,020,755 Cashable Savings £453,557 £146,998 £258,294 £128,334 £987,183 Costs awarded and penalties £2,578 £21,413 £1,725 £0 £27,716 Total £4,007,942 £2,680,141 £3,498,958 £2,583,997 £12,771,039 * Average weekly cost against average length of support. This figure fluctuates but has been provided by the Council's Business Performance Team. ** NNDR operates under a business rates retention model with the Council keeping 15% of income. HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 14. APPENDIX B: KPIs and Actual Performance 2025/26 CFT KPIs Target Q1 Q2 Q3 Q4 25/26 24/25 1. Percentage of fraud referrals risk assessed within 3 working days 95% 97% 100% 100% 100% 99% 99% 2. Verification work timescales for completion: a. Right to Buy case completion within 28 working days 95% 100% 98% 100% 100% 99% 98% b. Financial Assessments completion within 7 working days 95% 100% 100% 100% 100% 100% 100% c. Section 17 reviews completion within 7 working days 95% 93% 100% 100% 100% 98% 100% 3. Investigation plan completion within 5 working days of case allocation 95% 100% 99% 100% 100% 99% 99% 4. Tenancy fraud referrals received resulting in property recovery 30% 70% 74% 75% 86% 79% 67% 5. Investigations resulting in loss prevention/financial saving outcome 40% 36% 41% 41% 44% 42% 43% 6. Revenue inspections completed within 10 working days of referral date 95% 99% 99% 99% 99% 99% 99% HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 15. APPENDIX C: Proactive Counter Fraud Projects 2025/26 Proactive Project & Rationale Project Outcomes Beds in Sheds – Q1 and ongoing 'Beds in Sheds' is the term used to describe buildings or annexes on private properties that have been erected without the Valuation Office being made aware and that can be considered habitable. This means that the building or annexe should be charged Council Tax. The CFT carried out unannounced visits to properties that were highlighted via referrals and intelligence checks.  Number identified for bringing into Council Tax - 80  Investigations continuing - 8  Income generation - £73,197.90 Bungalow Residency – Q1 & Q2 The CFT carried out unannounced residency checks on the bungalow stock within the borough. The purpose of the project was to identify any sub -letting of accommodation, instances of non -occupation, as well as noting any safe-guarding concerns.  Number of properties visited - 353  Properties Recovered – 5  Investigations continuing - 2  Financial Savings - £350,000 Gas & Electrical Checks Access – Q4 Working collaboratively with internal departments, the CFT conducted unannounced visits to all social housing properties that were overdue a gas safety or electrical safety check for 12 months or longer. The purpose of this project was to reduce the number of properties that were overdue these inspections, whilst also identifying pote ntial cases of non - occupation or subletting  Number of properties visited - 12  Investigations continuing - 4 National Fraud Initiative (NFI) - Ongoing The National Fraud Initiative (NFI) main exercise is a bi-annual data match against numerous public and private sector data sources. The National Fraud Initiative (NFI) Recheck is an annual data match where SPD data is matched against the Electoral Roll.  £108,077.09 Savings from Single Person Discount matching  £134,231 CTR overpayments  £79,841 in overpaid Commissioned Social Care costs London Counter Fraud Hub - Ongoing The London Counter Fraud Hub is designed to bring London Boroughs together, sharing data to identif y cases of fraud, loss or error. The first in house data matching exercise using the LCFH, matched tenancy records against the death register. This highlights any properties that the Council are unaware that the tenant has passed away.  Number of properties returned - 18  Financial Savings - £1,260,000 Internal Revenues Maximisation - Ongoing The Revenues Investigation Unit have carried out a series of pro-active action days monitoring and reviewing business rates listings in high -risk areas which has identified new and improved premises to increase business rates billing.  Additional business rates billing - £1,632,419 HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 16. Temporary Accommodation Residency – Ongoing The CFT carried out unannounced residency checks on all service users residing in Temporary Accommodation properties. The purpose of the project was to identify any sub - letting of accommodation, instances of non-occupation, as well as verifying those that had applied for social housing and ensuring that they were still eligible.  Number of properties visited - 695  Placements Closed - 36  Investigations continuing - 8  Financial Savings - £967,712 Council Tax Exemptions – Ongoing The CFT carried out desk top checks of Class E & F exemptions utilising data matching and in-house data. This highlighted any properties that the Council were unaware that the tenant ha d passed away or was residing elsewhere due to care needs.  Number of properties returned - 38  Financial Savings - £2,660,000 HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 17. APPENDIX D: Counter Fraud Benchmarking 2024/25 London Borough Council Properties Returned RTB Cancelled Housing Applications Closed Council Tax & CTRS Blue Badge Outcomes* Social Care Barking & Dagenham 9 73 £169,521 Barnet 34 64 1 £31,876 87 Bexley 14 20 Brent 5 9 11 Bromley £8,943 129 Camden 22 48 4 City of London 6 5 Croydon 37 Ealing 3 2 £24,293 Enfield 22 8 3 £2,679 Greenwich 19 £1,069,502 Hackney 26 1 6 £97,390 16 Hammersmith & Fulham 27 5 1 £34,474 £42,262 Haringey 42 49 2 Harrow 11 2 3 £114,101 Havering 7 50 1 Hillingdon 112 3 73 £154,413 13 £313,864 Hounslow 8 3 2 £4,372 Islington 78 3 4 10 Kensington & Chelsea 27 1 21 £929 Kingston 7 9 £600 10 Lambeth 81 8 £22,301 54 £600,000 Lewisham 10 1 5 18 Merton 5 £800 Newham 54 9 3 £1,101,301 Redbridge Richmond 6 1 £8,035 Southwark 15 36 61 21 Sutton 12 1 3 £7,239 Tower Hamlets 36 12 £87,671 Waltham Forest 64 8 £96,415 54 Wandsworth 29 6 29 £42,000 Westminster (City of) 34 1 9 £1,333 17 Where the cell is greyed out, the data was not available to us from the council in question. * = Successful outcomes for Blue Badges are defined as fines and/or prosecutions but excludes seized badges. HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 18. APPENDIX E: Glossary of Terms Beds in Sheds 'Beds in Sheds' is the term used to describe habitable outbuildings, or annexes to private properties being utilised without the awareness of the Council or the Valuation Office Agency (VOA). Blue Badge A Blue Badge provides parking concessions and helps people with non-visible and visible disabilities or health conditions park closer to their destination. The Blue Badge enables holders to park in designated disabled person’s parking bays either on the public highway or privately owned car parks. In addition, badge holders can park on single or double yellow lines for up to 3 hours. Direct Payments The Council are responsible for administering direct payments to service users who have been assessed as needing care and support services. The payments are made to allow applicants to access care to meet their social care needs, such as support with living tasks and social activities. Disabled Facility Grant The council offers a range of financial support schemes for people with disabilities, such as the Disabled Facilities Grant (DFG). The DFG is a means tested scheme that allows eligible applicants to receive financial support to make adaptations to their home, if they, or someone living at the property is disabled. Financial Assessments The Council is under a financial and legal obligation to carry out this means tested assessment for each service user. The Financial Assessment (FA) identifies whether the applicant(s) is eligible to receive funding towards their care costs. Fraud Hub (LCFH) Utilising the existing Cabinet Office infrastructure and systems, most London based local authorities have agreed to upload internally held data sets for proactive data matching exercises. These regularly agreed upon exercises will lead to the identification of possible fraud, loss or error. National Fraud Initiative The National Fraud Initiative (NFI) is a data matching exercise co -ordinated by the Government Cabinet Office and conducted every 2 years. There is also an annual review of claimants in receipt of Single Persons discount data that is matched against the Electoral Roll data. The NFI matches data from over 1,200 organisations, including councils, the police, hospitals and almost 100 private companies to identify potential fraud and error. New Homes Bonus The New Homes Bonus (NHB) is a grant that is paid by central government to incentivise local housing growth. Onsite Immigration Enforcement Official The Onsite Immigration Enforcement Official (OSIO) provides enhanced access to Home Office data for the purpose of assessing cases involving immigration issues and for assisting in a range of counter fraud work. Right to Buy The Right to Buy (RTB) process is a statutory scheme whereby a tenant(s) can apply to purchase their property at a significant discount from its market value. There are strict conditions that must be met by the applicant(s) if they are to qualify for the discount. HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 19. Revenues Maximisation The use of internally held data and the utilisation of external data partners to identify previously unlisted commercial and domestic properties, along with identifying commercial properties that have undertaken modifications or improvements that would result in the revaluation of its Rateable Value (RV). Commercial entities are under no obligation to inform Council Tax as to when they have started trading or if their RV needs to be recalculated. The Council will only retain 15% of the identified rates. Section 17 The CFT provides assurance and mitigates the risk of fraud within Children’s Social Care, in particular the allocation of emergency accommodation provided under Section 17 of the Children’s Act 1989. The verification process seeks to validate a family’s reason for approach as well as their financial circumstances, as applica nts claim to be destitute and requiring accommodation and or financial support. The CFT conducts verification checks on all applicants approaching the Council. Small business Rates Relief The Small Business Rates Relief (SBRR) scheme is designed to reduce the amount of business rates payable by small businesses. This reduction is available to ratepayers who occupy a property with a rateable value of no more than £15,000. Unaccompanied Asylum-Seeking Children Unaccompanied Asylum-Seeking Children (UASC) are children and young people who are seeking asylum in the UK but have been separated from their parents or carers. Whilst their asylum claim is processed, they are cared for by the Council and provided with accommodation and or financial support. HILLINGDON COUNCIL COUNTER FRAUD ANNUAL REPORT 2025/26 Counter Fraud Annual Report 20. APPENDIX F: Social Media Campaigns

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

17. External Audit Update: Process For Auditing The 2025/26 Accounts Main Accounts And Pension Fund Accounts PDF 213 KB
The Committee received the External Audit Update and Audit Planning Reports for both the Council and Pension Fund. Members were advised that work was continuing to rebuild assurance following previous disclaimed audit opinions. Publication of the draft 2025/26 accounts had been delayed due to outstanding accounting issues relating to Council housing properties although these were expected to be resolved shortly. The audit was due to begin in August 2026 and conclude in November 2026. It was noted that the Pension Fund had continued to receive clean audit opinions. The external auditors outlined their approach to the 2025/26 audit and highlighted the challenges of rebuilding assurance following delays in previous years. Property valuations remained a key audit risk although the Council's decision to carry out a full valuation of its property portfolio during 2025/26 was expected to support the audit process. During discussion, Members noted that Hillingdon was one of only two London boroughs yet to submit its draft 2025/26 accounts and emphasised the importance of continuing to strengthen financial management, governance and reporting. It was confirmed that progress would be monitored through delivery of the audit plan, implementation of audit recommendations, improvements in reserves, budget monitoring and the achievement of savings targets. The Committee heard that independent challenge and support continued to be provided through the Council's Improvement Board which included representatives from the Local Government Association and other local authorities. Members sought clarification on property valuations, asset management and the audit timetable. Officers explained that valuations remained a significant audit risk due to the scale and complexity of the Council's property portfolio and confirmed that a comprehensive review of the Council's assets was underway, supported by additional resources and a new asset management system. It was also noted that further finance support had been secured and work was continuing with auditors to improve the quality and timeliness of information provided. Members were advised that the 2025/26 accounts would continue to receive a disclaimed opinion because assurance from previous years had yet to be fully rebuilt although the audit would help establish assurance for future years. Progress was expected to be reflected through a reduction in audit findings and continued improvements to financial processes. An update was also provided on Oracle related bank account matching processes which remained manual but were expected to become automated following planned system improvements. RESOLVED: That the Committee noted the draft plan of the Audit of the 2025/26 Council Accounts and the audit of the 2025/26 Pension Fund Accounts.
📄 External Audit Update: Process For Auditing The 2025/26 Accounts Main Accounts And Pension Fund Accounts PDF 213 KB
Read the text of this document (3 pages)
Audit, Finance and Performance Committee – 15 July 2026 Part I – Public EXTERNAL AUDIT UPDATE: PROCESS FOR AUDITING THE 202 5/26 ACCOUNTS MAIN ACCOUNTS AND PENSION FUND ACCOUNTS Committee name Audit, Finance and Performance Committee Officer reporting Pete Carpenter- Director Pensions, Treasury & Statutory Accounts Papers with report Council Audit Planning Report 2025/26 Pension Fund Audit Planning Report 2025/26 Ward All HEADLINES This report provides the committee sets with the high-level process for the Audit of the 202 5/26 Council and Pension Fund Accounts. RECOMMENDATIONS: That the Audit Committee: 1. Note the draft plan for the Audit of the 2025/26 Council Accounts. 2. Note the draft plan for the Audit of the 2025/26 Pension Fund Accounts. SUPPORTING INFORMATION The Ministry of Housing, Communities and Local Government has announced measures to tackle the backlog of local government audits and have proposed backstop dates for the publication of audited accounts: 2025/26: 31 January 2027 2026/27: 30 November 2027 2027/28: 30 November 2028 The backstop legislation has resulted in significant numbers of Councils receiving “Disclaimer Opinions” due to time constraints and number of audits required to be delivered to comply with the legislation resulting in Auditors collectively not having the time to complete Audits and therefore issue “Disclaimer Opinions”. The Council has received “Disclaimer Opinions” for the past three years. The Pension fund has unqualified audits for the corresponding period. A total of 227 disclaimed audit opinions have been issued by auditors to local government bodies because of the “final” backstop date for the 2023 -24 financial year. This is 4 9.3% of all local government Audits in England. Update on 2024/25 Statement of Accounts audit Opinions for both the Council and the Pension Fund accounts were made by the backstop date of the 27th February. Audit Reports and final Statement of Accounts for the Council are set out on the Councils website at the following link: https://pre.hillingdon.gov.uk/performance-spending/statement-accounts Audit, Finance and Performance Committee – 15 July 2026 Part I – Public Council Audit Planning Report 2025/26 The purpose of the planning report is to provide the committee with a basis to review our proposed audit approach and scope for the 2025/26 audit, in accordance with the requirements of the Local Audit and Accountability Act 2014, the National Audit Office’s 2024 Code of Audit Practice, the Statement of Responsibilities issued by Public Sector Audit Appointments (PSAA) Ltd, auditing standards, and other professional requirements. Key items highlighted in the planning report include:  The shared strategy for recovery from the disclaimed audit opinions and rebuild assurance.  Key risks to be assessed include: o Presumptive risk of management override of control o Risk of fraud in revenue and expenditure recognition, through inappropriate capitalisation of revenue expenditure or use of capital reserves o Valuation of land and buildings, including surplus assets o Valuation of pension assets and liabilities o Valuation of council dwellings  Value for Money Assessments centre on the below and delivery of 2024/25 audit recommendations: o Financial sustainability - How the Council plans and manages its resources to ensure it can continue to deliver its services o Governance - How the Council ensures that it makes informed decisions and properly manages its risks o Improving economy, efficiency and effectiveness - How the Council uses information about its costs and performance to improve the way it manages and delivers its services. The Council has not delivered its 2025/26 Draft Accounts to the 30 th June deadline (one of 7 not to deliver to this deadline in London and 54 across England) and as per the legislation has posted a “Notice of Delay” on the Council’s website. The audit is expected to be completed in mid November to enabler the draft 2025/26 Audit Report to be issued by the 30th November 2026. Pension Fund Audit Planning Report 2025/26 The purpose of th e planning report is to provide the Committee with a basis to review our proposed audit approach and scope for the 2025/26 audit, in accordance with the requirements of the Local Audit and Accountability Act 2014, the National Audit Office’s 2024 Code of Audit Practice, the Statement of Responsibilities issued by Public Sector Audit Appointments (PSAA) Ltd, auditing standards, and other professional requirements. This report summarises our evaluation of the key issues driving the development of an effective audit. We have aligned our audit approach and scope accordingly. Key issues highlighted are:  Presumptive risk of management override of controls.  Valuation of complex and hard to value investments (Level 3 Investments).  IAS26 Disclosure – Actuarial present value of promised retirement benefits.  Completeness of investment income. Draft 2025/26 Pension Fund accounts were passed to the External Auditors by the 30 th June Audit, Finance and Performance Committee – 15 July 2026 Part I – Public deadline. FINANCIAL IMPLICATIONS In September 2024 the PSAA launched a consultation on the fee scale for 2024/25 audits. Following consultation, PSAA has published the 2025/26 scale of audit fees for bodies that have opted into its national auditor appointment scheme . The fee values for 202 5/26 are £542,111 (£433,673 in 2024/25) for the Council aud it and £9 6,295 (£92,572 in 2024/25) for the Pension Fund. EY have advised there will be scale fee variations in respect of the 2024/25 audit but this has not yet been finally approved by PSAA at this time. LEGAL IMPLICATIONS The Secretary of State for Communities and Local Government delegated statutory functions (from the Audit Commission Act 1998) to P ublic Sector Audit Appointments (PSAA) on a transitional basis under powers contained in the Local Audit and Accountability Act 2014. BACKGROUND PAPERS Council Audit Planning Report 2025/26 Pension Fund Audit Planning Report 2025/26

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 Provisional Audit Planning Report , item 17. PDF 4 MB
Read the text of this document (57 pages)
Provisional Audit Planning Report Year ended 31 March 2026 London Borough of Hillingdon 30 April 2026 The UK firm Ernst & Young LLP is a limited liability partnership registered in England and Wales with registered number OC300001 and is a member firm of Ernst & Young Global Limited. A list of members’ names is available for inspection at 1 More London Place, London SE1 2AF, the firm’s principal place of business and registered office. Ernst & Young LLP is a multi-disciplinary practice and is authorised and regulated by the Institute of Chartered Accountants in England and Wales, the Solicitors Regulation Authority and other regulators. Further details can be found at http://www.ey.com/UK/en/Home/Legal. Private and Confidential 30 April 2026 Dear Audit Committee members Provisional Audit Planning Report 2025/26 We are pleased to attach our provisional Audit Planning Report for the forthcoming meeting of the Audit Committee. The purpose of this report is to provide the committee with a basis to review our proposed audit approach and scope for the 2025/26 audit, in accordance with the requirements of the Local Audit and Accountability Act 2014, the National Audit Office’s 2024 Code of Audit Practice, the Statement of Responsibilities issued by Public Sector Audit Appointments (PSAA) Ltd, auditing standards, and other professional requirements. This report is intended solely for the information and use of the Audit Committee and management, and is not intended to be, and should not be used, by anyone other than these specified parties. We welcome the opportunity to discuss this report with you on 28 May 2026 as well as understand whether there are other matters which you consider may influence our audit. Yours faithfully Stephen Reid, Partner For and on behalf of Ernst & Young LLP Enc Audit Committee London Borough of Hillingdon Hillingdon Civic Centre 225-226 High St Uxbridge UB8 1UW Confidential — All Rights Reserved Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 3 1 4 7 Audit risks 2 Overview of our 2025/26 audit strategy 3 56 8 Value for money Audit materiality Scope of our audit Audit team Audit timeline Appendices Public Sector Audit Appointments Ltd (PSAA) issued the ‘Statement of responsibilities of auditors and audited bodies’. It is available from the PSAA website (https://www.psaa.co.uk/managing-audit-quality/statement-of-responsibilities- of-auditors-and-audited-bodies/statement-of-responsibilities-of-auditors-and-audited-bodies-from-2023-24-audits/). The Statement of responsibilities serves as the formal terms of engagement between appointed auditors and audited bodies. It summarises where the different responsibilities of auditors and audited bodies begin and end, and what is to be expected of the audited body in certain areas. The ‘Terms of Appointment and further guidance (updated October 2025)’ issued by the PSAA (Terms of appointment and further guidance from 1 October 2025 - PSAA) sets out additional requirements that auditors must comply with, over and above those set out in the National Audit Office Code of Audit Practice 2024 (the NAO Code) and in legislation, and covers matters of practice and procedure which are of a recurring nature. This report is made solely to the Audit Committee and management of the London Borough of Hillingdon. Our work has been undertaken so that we might state to the Audit Committee and management of the London Borough of Hillingdon those matters we are required to state to them in this report and for no other purpose. To the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the Audit Committee and management of the London Borough of Hillingdon for this report or for the opinions we have formed. It should not be provided to any third-party without our prior written consent. Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report Overview of our 2025/26 audit strategy01 4 Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 5 As the Council’s body charged with governance, the Audit Committee plays a crucial role in ensuring assurance over both the quality of the draft financial statements prepared by management and the Council’s wider arrangements to support a timely and efficient audit. Failure to achieve this will significantly increase the level of resources required to fulfil our respective responsibilities. As part of our responsibilities, we assess and report on the adequacy of the Council’s external financial reporting arrangements, as well as the effectiveness of the Audit Committee in fulfilling its role within those arrangements as part of our Value for Money assessment. Our ability to complete the audit is dependent on the timely formulation of appropriately supported accounting judgements, provision of accurate and relevant supporting evidence, access to the finance team and management’s responsiveness to issues identified during the audit. Wherever necessary, we will consider invoking other statutory reporting powers to highlight any weaknesses in these arrangements. We direct Audit Committee members and officers to the Public Sector Audit Appointment Limited’s Statement of Responsibilities (paragraphs 26-28) for expectations on preparing financial statements (see Appendix A). The purpose of this report We are now in Phase 2 of the implementation of the Ministry for Housing, Communities and Local Government’s (MHCLG) measures to address the backlog facing local government audit. Throughout 2023/24 and 2024/25, we applied a structured, risk-based prioritisation approach to local government audits to support a return to unqualified audit opinions wherever feasible, while still meeting statutory backstop requirements. Our approach recognises that recovery depends heavily on the Council’s own capacity and preparedness and that audit effort must be targeted where it can deliver meaningful assurance. Management has overall responsibility for leading and sustaining the Council’s recovery from a disclaimed audit opinion. This includes ensuring that the financial statements are prepared in accordance with proper practices and supported by complete, accurate and timely audit evidence. To deliver this, it is essential that management:  Strengthen the underlying control environment, particularly in areas linked to prior year disclaimers;  Provide high quality working papers and ensure that all audit evidence is complete, consistent and readily accessible;  Allocate sufficient, knowledgeable resources throughout the audit cycle;  Actively engage with auditors, promptly addressing findings and resolving weaknesses in financial reporting arrangements; and  Communicate transparently with the Audit Committee, as those charged with governance, ensuring that committee members have clear visibility of risks, progress and emerging issues. In line with the National Audit Office’s Local Audit Reset and Recovery Implementation Guidance (LARRIGs) - and specifically the guidance on rebuilding assurance following a disclaimed opinion - management must support the restoration of reliable opening balances and enable a phased progression from disclaimed to qualified and ultimately unmodified audit opinions. Achieving this requires sustained delivery of the “natural rebuild,” through the completion of all planned audit procedures across successive annual cycles, alongside targeted work to rebuild assurance over historical balances, including both usable and unusable reserves, where cumulative gaps in evidence present the most significant challenges. Our shared strategy to rebuild assurance 2025/26 audit strategy overview: Rebuilding assurance Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 6 Appendix A explains the expected timeline to full assurance set out within the NAO’s LARRIG 01 guidance, along with our assessment of the Council’s status. During 2023/24 and 2024/25, the focus of the rebuild process has been on this “natural” rebuild, to complete all planned audit procedures for each respective audit year. As set out in our Audit Results Reports dated 18 March 2025 and 27 February 2026, we were not able to complete all planned audit procedures for the following reasons: • For 2023/24, we encountered difficulty in performing our audit procedures due to a combination of poor-quality working papers and supporting information being provided by the Council and capacity limitations within the Council’s finance team. Due to the implementation of the backstop date of 28 February 2025 for the completion of that audit, we agreed with management that both Council and audit resources would be prioritised on those account areas which contribute the most towards the rebuilding of assurance following the disclaimed 2022/23 audit report. Consequently, we were not able to complete all of our planned procedures. • For 2024/25, commencement of our year-end audit fieldwork was delayed as a result of the Council not publishing its draft Statement of Accounts until 22 September 2025, nearly three months after the statutory deadline for commencement of the public inspection period of 1 July 2025. In addition, we again encountered difficulty in performing our audit procedures due to delays in the provision of working papers and supporting information by the Council, including where such information is held outside of the Council’s finance team, and capacity limitations within the Council’s finance team. Due to the implementation of the backstop date of 27 February 2026 for the completion of the audit, during the execution of our audit we worked with management where progress was not satisfactory to prioritise the Council’s and audit resources on those account areas which contribute the most towards the rebuilding of assurance following previous disclaimed audit reports and/or there was the highest probability of being able to complete our planned audit procedures by the backstop date. Consequently, we were not able to complete all of our planned procedures. As part of our interim audit procedures for 2025/26, we will undertake a detailed risk assessment to evaluate the risk of material misstatement in the opening reserves balances at 1 April 2025, and to assess management’s readiness to support the historic rebuild process over transactions and balances in 2022/23 that were not subject to audit. This work is expected to be completed by 30 June 2026 and is essential to determining whether the pre-2023/24 gaps in assurance - particularly those relating to reserves and other cumulative balances - can be sufficiently addressed to support future progression towards qualified or unmodified audit opinions. We will discuss the outcome of our risk assessment over the opening reserves balances with management to confirm our planned approach for 2025/26. However, because we were unable to complete all planned audit procedures for 2023/24 and 2024/25 for the reasons outlined above, it is unlikely that we will commence any rebuilding of assurance over the historic position during the 2025/26 audit cycle. In line with our established prioritisation principles, we will focus our audit resources on rebuilding assurance for those bodies where planned audit procedures were completed in 2023/24 and 2024/25, in order to support the sector wide objective of returning to unmodified audit opinions as quickly and sustainably as possible. It is therefore critical that management ensure they can provide high quality working papers, robust audit evidence, and resolve the underlying issues identified in prior years as part of the 2025/26 audit cycle. This will be essential to avoid any further delay in the eventual process for rebuilding assurance over the Council’s historic position. Our shared strategy to rebuild assurance continued 2025/26 audit strategy overview: Rebuilding assurance Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 7 An audit timetable has been agreed with management. In Section 7 we include a provisional timeline for the audit. It is essential that all parties collaborate to ensure compliance with this timeline. Timeline Our ability to complete the audit is dependent on the timely formulation of appropriately supported accounting judgements, provision of accurate and relevant supporting evidence, access to the finance team and management’s responsiveness to issues identified during the audit. Our 2024/25 reporting included our assessment of the effectiveness of the Council’s arrangements to support the external audit process across a range of relevant measures (reproduced in Appendix A). We concluded that the Council was not fully prepared for the audit and that improvements were required in relation to:  the provision of a complete and high-quality draft Statement of Accounts to the agreed timetable;  the provision of working papers and other supporting information, including where such information is held outside of the Council’s finance team, in line with the agreed Client Assistance Schedule and timetable; and  the availability of key finance personnel to support the execution phase of the audit in accordance with the agreed project plan. We will continue to report on our assessment of the quality of the Council’s financial statements’ preparation and support, to support ongoing transparency of the audit process to those charged with governance, and to facilitate benchmarking and tracking of progress in future years. Please refer to Appendix B for our update on independence. Our independence considerations In accordance with the NAO Code, our primary objectives are to conduct work that supports the delivery of our audit report to the Council. Additionally, we aim to ensure that the Council has established proper arrangements for securing economy, efficiency, and effectiveness in its use of resources, as mandated by relevant legislation and the requirements of the NAO Code. We will issue an Audit Results Report that the summarises our opinion on the financial statements by 30 November 2026 and the results of other procedures required by the Code. This includes our assessment of the control environment, including our follow up of the recommendations that we made in 2024/25 (refer to Appendix C). In addition, our Auditor’s Annual Report will conclude on whether the Council has put in place ‘proper arrangements’ to secure economy, efficiency and effectiveness on its use of resources and report a commentary on those arrangements. Scope of our audit Preparedness for audit 2025/26 audit strategy overview: Rebuilding assurance Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 8 The purpose of our audit is to obtain reasonable assurance to express an opinion about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. There is one significant change to the scoping for the audit of the 2025/26 financial statements, relating to the implementation of CIPFA’s Bulletin 22 in relation to the valuation of Property, Plant and Equipment. The following ‘dashboard’ summarises the significant accounting and auditing matters outlined in this report. It seeks to provide the Audit Committee with an overview of our initial risk identification for the upcoming audit and any changes in risks identified in the current year. DetailsChange from PYRisk identified Risk/area of focus There is a risk that the financial statements as a whole are not free from material misstatement whether caused by fraud or error. We perform mandatory procedures regardless of specifically identified fraud risks. No change in risk or focus Fraud riskPresumptive risk of management override of controls Under ISA 240 there is a presumed risk that revenue may be misstated due to improper revenue recognition. In the public sector, this requirement is modified by Practice Note 10 issued by the Financial Reporting Council, which states that auditors should also consider the risk that material misstatements may occur by the manipulation of expenditure recognition. We have assessed the risk is most likely to occur through the inappropriate capitalisation of revenue expenditure. No change in risk or focus Fraud riskRisk of fraud in revenue and expenditure recognition, through inappropriate capitalisation of revenue expenditure or use of capital reserves The valuation methods for land and buildings, including surplus assets, involve higher risk estimates due to the significant assumptions and judgements involved, and for which the Council uses external specialists. These estimates heighten the risk of material errors. For the 2025/26 financial statements, the Council will be required to apply CIPFA Bulletin 22 which reassesses the current regime of valuation for non-investment assets across the public sector. The guidance mandates a quinquennial revaluation or a five-year rolling programme for formal valuations, supported by annual indexation in the intervening years. The Council has opted to perform revaluation of the entirety of the asset base to which CIPFA Bulletin 22 applies as at 31 March 2026, to establish a baseline for indexation to be applied in the following years. Given full revaluations will not be required again until 2030/31, with indexation applied in intervening years, it is even more important that valuations as at 31 March 2026 are appropriate and that the Council is able to support completion of audit procedures over these valuations. No change in risk Additional focus due to implementation of CIPFA Bulletin 22 Significant riskValuation of land and buildings, including surplus assets Audit risks and areas of focus 2025/26 audit strategy overview: Audit risks and materiality Confidential — All Rights Reserved 2025/26 audit strategy overview: Audit risks and materiality London Borough of Hillingdon Audit Planning Report 9 Materiality Planning materiality £15.4m Materiality has been set at £15.4 million, which represents 1.5% of gross expenditure on provisions of services in 2024/25 (2024/25: £14.4 million, 1.4%). Performance materiality £7.7m Performance materiality has been set at £7.7 million, which represents 50% of materiality. We will report all uncorrected misstatements relating to the Comprehensive Income and Expenditure Statement and Balance Sheet that have an effect on the deficit on provision of services, and misstatements in the other comprehensive income and expenditure, over £0.77 million. Other misstatements identified will be communicated to the extent that they merit the attention of the Audit Committee. Audit differences £0.77m Audit risks and areas of focus continued DetailsChange from PYRisk identified Risk/area of focus Accounting for the Council’s participation in the Hillingdon Pension Fund involves significant estimation and judgement, including financial and demographic assumptions. There is a risk that the net pension asset/liability recognised is materially misstated, as its recognition and measurement is subject to significant management judgement, including the application of the IAS 19 asset ceiling and the assessment of the Council’s ability to realise future economic benefits. The Council engages an actuary to undertake the calculations on their behalf. ISAs (UK) 500 and 540 require us to undertake procedures on the use of management experts and the assumptions underlying fair value estimates. No change in risk or focus Risk of material misstatement Valuation of pension assets and liabilities The carrying amount of Council dwellings represents a significant balance in the Council’s financial statements and is subject to revaluation changes on an annual basis. Management is required to make material judgmental inputs and apply estimation techniques to calculate the year end balances recorded in the balance sheet. Note: The changes to be implemented under CIPFA Bulletin 22 set out on the previous page are not applicable to the valuation of council dwellings. No change in risk or focus Risk of material misstatement Valuation of council dwellings Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 10 Under the NAO Code we are required to:  Satisfy ourselves that the Council has made proper arrangements to secure economy, efficiency and effectiveness in its use of resources, having regard to NAO AGN 03.  Design work to provide sufficient assurance to support reporting against the Code’s specified reporting criteria outlined below;a n d  Apply a risk-based approach to our work, informed by sector knowledge, the Annual Governance Statement, evidence from the financial statements audit and relevant work of other bodies. In undertaking our risk assessment, we obtain an understanding of the key processes the Council has in place, including financial management, risk management and partnership working arrangements. Our Auditor’s Annual Report, which will be issued before 30 November 2026, will include a summary of our commentary on the arrangements in place against each of the three value for money criteria and recommendations raised as a result of any significant weaknesses identified. A key part of our work will be the follow up of previous recommendations to provide the Committee with assurance on the pace of planned improvements. Improving economy, efficiency and effectiveness How the Council uses information about its costs and performance to improve the way it manages and delivers its services. Governance How the Council ensures that it makes informed decisions and properly manages its risks. Financial sustainability How the Council plans and manages its resources to ensure it can continue to deliver its services.  No additional risks identified, however we note that risks identified against other reporting criteria have implications for the effectiveness of arrangements under this reporting criteria.  Quality of Council Information (inc. impact on ability to support the external audit)  Capacity of the finance team  Financial sustainabilityRisks of significant weaknesses in arrangements identified in 2025/26:  No recommendations were raised within 2024/25 specifically in relation to improving economy, efficiency and effectiveness.  Two recommendations issued as statutory recommendations in July 2025; and  Two further recommendations issued as part of our 2023/24 audit not satisfactorily addressed during 2024/25.  Five recommendations issued as statutory recommendations in July 2025; and  One further recommendation issued in our Auditor’s Annual Report on 27 November 2025. Recommendations identified in 2024/25 (refer to Appendix C): 2025/26 audit strategy overview: Value for money Our risk assessment Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 11 Audit risks02 Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 12 We have set out the significant risks (including f raud risks denoted by*) identified for the current year audit along with the rationale and expected a udit approach. The risks identified below may change to reflect any significant findings or subsequent issues we identify during the audit. Our response: Key areas of challenge and professional judgementWhat is the risk, and the key judgements and estimates? In order to address the risks outlined we will carry out a range of procedures including:  Identifying fraud risks during the planning stages of our audit;  Inquiry of management about risks of fraud and the controls put in place to address those risks;  Understanding the oversight given by those charged with governance of management’s processes over fraud;  Discussing with those charged with governance the risks of fraud in the entity, including those risks that are specific to the entity’s activities and financial position;  Considering whether there are any fraud risk factors associated with related party relationships and transactions and if so, whether they give rise to a risk of material misstatement due to fraud;  Considering the effectiveness of management’s controls designed to address the risk of fraud and determining an appropriate strategy to address those identified risks of fraud;  Performing mandatory procedures regardless of specifically identified fraud risks, including testing of journal entries and other adjustments in the preparation of the financial statements;  Undertaking procedures to identify significant unusual transactions; and  Considering whether management bias was present in the key accounting estimates and judgements within the financial statements. Having evaluated this risk, we have considered whether we need to perform other audit procedures not referred to above. We concluded that those procedures included under the risk ‘inappropriate capitalisation of revenue expenditure’ are required. In accordance with ISA 240, the presumptive risk of management override of controls is present at every entity and we design the appropriate procedures to consider such risk.  Management has the primary responsibility to prevent and detect fraud. It is important that management, with the oversight of those charged with governance, has put in place a culture of ethical behaviour and a strong control environment that both deters and prevents fraud.  Our responsibility is to plan and perform audits to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatements whether caused by error or fraud. Our response to significant risks Presumptive risk of management override of controls* Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 13 Our response: Key areas of challenge and professional judgementWhat is the risk, and the key judgements and estimates?Financial statement impact In order to address the risks outlined we will carry out a range of procedures including:  Testing additions to Property, Plant and Equipment (PPE) to ensure that the expenditure incurred and capitalised is clearly capital in nature;  Assessing whether the capitalised spend clearly enhances or extends the useful life of asset rather than simply repairing or maintaining the asset on which it is incurred;  Considering whether any development or other related costs that have been capitalised are reasonable to capitalise, i.e., the costs incurred are directly attributable to bringing the asset into operational use;  Testing transactions recorded as REFCUS, if material, to ensure that it is appropriate for the revenue expenditure incurred to be financed from ringfenced capital resources; and  Seeking to identify and understand the adjustments made between usable reserves and unusable capital reserves to confirm they are appropriate, and agreeing the value of such adjustments to other financial statement balances or appropriate supporting evidence. Under ISA 240 there is a presumed risk that revenue may be misstated due to improper revenue recognition. In the public sector, this requirement is modified by Practice Note 10 issued by the Financial Reporting Council, which states that auditors should also consider the risk that material misstatements may occur by the manipulation of expenditure recognition. We have assessed the risk is most likely to occur through the inappropriate capitalisation of revenue expenditure or use of capital reserves. We have assessed that the risk of misreporting revenue outturn in the financial statements is most likely to be achieved through:  Revenue expenditure being inappropriately recognised as capital expenditure at the point it is posted to the general ledger;  Expenditure being classified as revenue expenditure financed as capital under statute (REFCUS) when it is inappropriate to do so;  Inappropriate adjustments between usable reserves and unusable capital reserves. If this were to happen it would have the impact of understating revenue expenditure and overstating Property, Plant and Equipment (PPE) and/or REFCUS in the financial statements. Our response to significant risks Inappropriate capitalisation of revenue expenditure or use of capital reserves* Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 14 Our response: Key areas of challenge and professional judgementWhat is the risk, and the key judgements and estimates?Financial statement impact In response to this risk we will carry out a range of procedures including:  Seeking to understand the Council’s approach to the valuation of land and buildings, including surplus assets;  Reviewing and assessing management’s assessment and planned approach to CIPFA Bulletin 22;  Reviewing and appraising the work performed by the Council’s valuer, including the adequacy of the scope of the work performed, their professional capabilities and the results of their work;  Sample testing key asset information used by the valuers in performing their valuation (e.g. floor plans to support price per square metre);  Involving our EY internal specialists to challenge the work performed by the Council’s valuers, focusing on more material assets assessed as posing higher risk of material misstatement;  Assessing any changes to the useful economic lives against the most recent valuer assessments;  Testing accounting entries have been correctly processed in the financial statements;  Sample testing transfers from assets under construction to ensure timely reclassification upon completion, and confirming for a sample of assets that remain within assets under construction that development is still in progress; and  Reviewing and assessing management’s impairment assessment of ongoing and completed capital projects to ensure assets are held at an appropriate value. The valuation methods for land and buildings, including surplus assets, involve higher risk estimates due to the significant assumptions and judgements involved, and for which the Council uses external specialists. These estimates heighten the risk of material errors. For the 2025/26 financial statements, the Council will be required to apply CIPFA Bulletin 22 which reassesses the current regime of valuation for non- investment assets across the public sector. The guidance mandates a quinquennial revaluation or a five-year rolling programme for formal valuations, supported by annual indexation in the intervening years. The Council has opted to perform revaluation of the entirety of the asset base to which CIPFA Bulletin 22 applies as at 31 March 2026, to establish a baseline for indexation to be applied in the following years. Given full revaluations will not be required again until 2030/31, with indexation applied in intervening years, it is even more important that valuations as at 31 March 2026 are appropriate and that the Council is able to support completion of audit procedures over these valuations. The relevant account balances in the 2024/25 financial statements were:  Other land and buildings: £833.7 million  Surplus assets: £44.8 million Our response to significant risks Valuation of land and buildings, including surplus assets Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 15 We have identified other areas of the audit, that have not been classified as significant risks, but are still important when considering the risks of m aterial misstatement to the financial statements and disclosures. Other areas of audit focus Our response: Key areas of challenge and professional judgementWhat is the risk, and the key judgements and estimates?Financial statement impact Valuation of pension assets and liabilities In response to this risk we will carry out a range of procedures including:  Liaising with the auditor of the Hillingdon Pension Fund to obtain assurances over the information supplied to the actuary, including membership data supplied in respect of the 2025 triennial valuation of the Hillingdon Pension Fund, and confirm joint assurances in respect of employer and employee contributions;  Engaging our EY actuarial specialists to assess the work of the Council’s actuary, including evaluating the reasonableness of the Pension Fund actuary’s calculations by comparing them to the outputs of our own auditor’s specialist’s model. This will involve a consideration of the net asset/liability and any calculation of the asset ceiling in accordance with IFRIC 14 where relevant;  Assessing the work of PwC, who are appointed to consider actuarial assumptions used at the year end for all local government sector bodies;  Reviewing and testing the accounting entries and disclosures made within the Council’s financial statements in relation to IAS 19, as well as any asset ceiling applied under IFRC 14; and  Assessing the valuation and disclosure of unfunded liabilities, for which there are no plan assets to meet the pension liabilities. The Local Authority Accounting Code of Practice and IAS 19 require the Council to make extensive disclosures within its financial statements regarding its membership of the Local Government Pension Scheme administered by the Council. The Council’s pension fund deficit is a material estimated balance and the Code requires that this liability be disclosed on the Council’s balance sheet. The information disclosed is based on the IAS 19 report issued to the Council by the Council’s actuary. Accounting for this scheme involves significant estimation and judgement and therefore management engages an actuary to undertake the calculations on their behalf. ISAs (UK) 500 and 540 require us to undertake procedures on the use of management experts and the assumptions underlying fair value estimates. The Council’s net pension asset or liability is measured as the sum of the long-term payments due to members as they retire against the Council’s share of the Hillingdon Pension Fund’s investments. At 31 March 2025, the Council’s net asset totalled £40.3 million but was constrained to a £100.4 million net liability by the accounting requirements of IFRIC 14. An unfunded liability of £20.1 million was also recorded on the Council’s balance sheet. Confidential — All Rights Reserved Our response: Key areas of challenge and professional judgementWhat is the risk, and the key judgements and estimates?Financial statement impact Valuation of council dwellings In response to this risk we will carry out a range of procedures including:  Seeking to understand the Council’s approach to the valuation of council dwellings;  Reviewing and appraising the work performed by the Council’s valuer, including the adequacy of the scope of the work performed, their professional capabilities and the results of their work;  Sample testing key asset information used by the valuers in performing their valuation (e.g. nature and number of beacons, valuations of units within beacons);  Testing accounting entries have been correctly processed in the financial statements; and  Ensuring that the social housing discount factor has been applied to the valuations of any council dwellings acquired during the period under audit. The carrying amount of Council dwellings represents a significant balance in the Council’s financial statements and is subject to revaluation changes on an annual basis. Management is required to make material judgmental inputs and apply estimation techniques to calculate the year end balances recorded in the balance sheet. Council dwellings held on the Council’s balance sheet at 31 March 2025 totalled £898.4 million. London Borough of Hillingdon Audit Planning Report 16 Other areas of audit focus Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 17 Value for money03 Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 18 Financial sustainability How the Council plans and manages its resources to ensure it can continue to deliver its services. Governance How the Council ensures that it makes informed decisions and properly manages its risks. Improving economy, efficiency and effectiveness How the Council uses information about its costs and performance to improve the way it manages and delivers its services. The Council is required to maintain an effective system of internal control that supports the achievement of its policies, aims and objectives while safeguarding and securing value for money from the public funds and other resources at its disposal. As part of the material published with the financial statements, the Council is required to bring together a commentary on the governance framework and how this has operated during the period in a governance statement. In preparing the governance statement, the Council tailors the content to reflect its own individual circumstances, consistent with the requirements of the relevant accounting and reporting framework and having regard to any guidance issued in support of that framework. This includes a requirement to provide commentary on arrangements for securing value for money from the use of resources. Under the NAO Code we are required to consider whether the Council has put in place ‘proper arrangements’ to secure economy, efficiency and effectiveness on its use of resources. The Code requires the auditor to design their work to provide them with sufficient assurance to enable them to report to the Council a commentary against specified reporting criteria (see below) on the arrangements the Council has in place to secure value for money through economic, efficient and effective use of its resources for the relevant period. The specified reporting criteria are: Value for money Council’s responsibilities for value for money Auditor responsibilities Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 19 The NAO’s guidance notes require us to conduct a risk assessment that collects sufficient evidence to document our evaluation ofthe Council's arrangements, allowing us to draft a commentary under the three reporting criteria. This involves identifying and reporting on any significant weaknesses in those arrangements and making appropriate recommendations. In considering the Council’s arrangements, we consider:  The Annual Governance Statement;  Evidence of arrangements during the reporting period;  Evidence obtained from our audit of the financial statements;  The work of inspectorates and other bodies; and  Any other evidence that we deem necessary to facilitate the performance of our statutory duties. We then evaluate whether there is evidence indicating significant weaknesses in arrangements. According to the NAO's guidance, determining what constitutes a significant weakness and the extent of additional audit work required to address the risk is based on professional judgment. The NAO indicates that a weakness can be considered significant if it:  Exposes, or could reasonably be expected to expose, the council to significant financial loss or risk;  Leads to, or could reasonably be expected to lead to, significant impact on the quality or effectiveness of service or on the council’s reputation or unlawful actions;  Identifies a failure to take action to address a previously identified significant weakness, such as failure to implement or achieve planned progress on action/improvement plans. When planning work identifies a risk of significant weakness, the NAO’s guidance requires us to consider the additional evidence needed to verify whether there is a significant weakness in arrangements. This involves conducting further procedures as necessary. We are required to report our planned procedures to the Audit Committee. If we determine that the Council has not made proper arrangements for securing economy, efficiency, and effectiveness in its use of resources, the NAO Code mandates that we reference this by exception in the audit report on the financial statements. Additionally, we are required to provide a commentary on the value for money arrangements in the Auditor’s Annual Report. The NAO Code specifies that this commentary should be clear , readily understandable, and highlight any issues we wish to draw to the Council’s or the wider public’s attention. This may include matters that are not considered significant weaknesses in arrangements but should still be brought to the Council’s attention. It will also cover details of any recommendations from the audit and the follow-up of previously issued recommendations, along with our assessment of their satisfactory implementation. Our 2025/26 Auditor’s Annual Report must be issued in draft by 30 November 2026 to comply with the requirements of the NAO Code. Planning and identifying risks of significant weakness in value for money arrangements Reporting on value for money arrangements Value for money Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 20 Value for money Value for money risk assessment We have completed our initial value for money planning, where we have considered:  Our entity level controls and understanding the business assessment;  The Council’s risk register;  Council meeting minutes and our planning meetings with management;  Key financial and budget information;  Key performance and internal audit reports; and  Findings of other inspectorates, review agencies and other relevant bodies. As part of our initial planning work, we considered whether there were any risks of significant weakness in the body’s arrangements for securing value for money that we needed to perform further procedures on. The risks we have identified are detailed in the table below, along with the further procedures we will perform. We will continue to review the body’s arrangements and report on our observations to the Audit Committee. 2025/26 expected procedures to respond2025/26 risk assessment2024/25 judgements on arrangementsCriteria We developed a detailed understanding of the Council’s arrangements with regards to financial sustainability through to February 2026 as part of the prior year audit. We will draw on our observations of these arrangements to inform our conclusions on the Council’s arrangements for 2025/26, as well as:  Reviewing the Council’s progress through to 31 March 2026 against its Financial Modernisation Programme.  Reviewing the Council’s final outturn for 2025/26 against budget, including the extent to which the Council was able to deliver the savings included within its 2025/26 budget;  Reviewing the Council’s 2026/27 Budget and Medium-Term Financial Strategy, approved in February 2026, as well as the accompanying Section 25 report of the Council’s Section 151 Officer;  Assessing whether the Council’s reporting during 2026/27 of its performance against its 2026/27 budget provides evidence of the reliability of the assumptions underpinning the Council’s 2026/27 Budget and Medium-Term Financial Strategy; and  Assessing the financial resilience of the Council against external benchmarks.  A risk of significant weakness has been identified relating to financial sustainability.  The prior year significant weakness is an indicator of a risk in the current year. Based on our current understanding we consider it likely we will continue to report by exception in 2025/26. The Council did not have proper arrangements in place to identify and manage risks to its financial sustainability. Financial sustainability Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 21 Value for money Value for money risk assessment continued 2025/26 expected procedures to respond2025/26 risk assessment2024/25 judgements on arrangementsCriteria We will respond to this identified risk by:  Reviewing the Council’s progress through to 31 March 2026 against its Governance Review Improvement Plan (GRIP);  Obtaining and reviewing the data quality audit the Council had planned to take place during 2025/26;  Enquiring of management as to the actions taken to address any findings and recommendations of the above data quality audit, as well as reviewing any evidence available to support the implementation of those actions;  Considering whether indicators of weaknesses in the quality of the Council’s information are highlighted by other reviews, including the annual opinion of the Council’s Head of Internal Audit; and  Considering our observations over the quality of the Council’s financial records and other supports for the financial statements during the execution of our audit procedures.  A risk of significant weakness has been identified relating to the quality of Council information.  The prior year significant weakness is an indicator of a risk in the current year. The Council did not have proper arrangements in place to ensure the quality of Council information. Quality of Council information (inc. impact on ability to support external audit) We will respond to this identified risk by:  Reviewing the Council’s progress through to 31 March 2026 against its Financial Modernisation Programme.  Considering whether the Council is able to meet the statutory deadline for commencement of the public inspection period of its 2026/27 accounts by 1 July 2026;  Considering our observations over the quality of the Council’s financial statements, and the Council’s ability to support the execution of audit procedures, through the delivery period of our audit.  A risk of significant weakness has been identified relating to the capacity of the Council’s finance team.  The prior year significant weakness is an indicator of a risk in the current year. The Council did not have proper arrangements in place to ensure the capacity of its finance team was sufficient to support the level of activity required of it. Capacity of the finance team Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 22 Audit materiality04 Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 23 Materiality Materiality For planning purposes, materiality for 2025/26 has been set at £15.4 million. This represents 1.5% of the Council’s 2024/25 gross expenditure on provision of services in the 2024/25 financial statements. It will be reassessed throughout the audit process. We have chosen gross expenditure on provision of services as we consider that this is of primary interest to the users of the financial statements. We have chosen 1.5%, which is in the middle of the range of percentages within our audit approach for comparable size councils, after consideration of a range of factors such as the public profile of the entity and the level and nature of its borrowings. We have marginally increased our materiality from the 1.4% of gross expenditure on provision of services applied in 2024/25 as the Council’s receipt of exceptional financial support means the Council’s financial position is not as precarious in 2025/26 as it was during 2024/25. Planning materiality £15.4m Performance materiality £7.7m Audit differences £0.77m Gross expenditure on provision of services £1,031m We request that the Audit Committee confirm its understanding of, and agreement to, these materiality and reporting levels. Key definitions Planning materiality — the amount over which we anticipate misstatements would influence the economic decisions of a user of the financial statements. Performance materiality — the amount we use to determine the extent of our audit procedures. We have set performance materiality at £7.7 million which represents 50% of planning materiality. We have used 50%, which is at the lower end of the range within our audit approach, after consideration of a range of factors including the difficulties encountered in performing audit procedures in prior years and the significant weakness in arrangements we reported in relation to the quality of the Council’s data and capacity of the Council’s finance team for 2024/25. Audit difference threshold — We will report to you all uncorrected misstatements over £0.77 million, relating to the Comprehensive Income and Expenditure Statement and Balance Sheet that have an effect on the deficit on provision of services, and misstatements in the other comprehensive income and expenditure, over £0.77 million. Other uncorrected misstatements, such as reclassifications and misstatements in the Statement of Cash Flows or disclosures, and corrected misstatements, will be communicated to the extent that they merit the attention of the Audit Committee, or are important from a qualitative perspective. Specific materiality — we report all differences identified over £5,000 for remuneration disclosures, and apply a lower judgemental materiality to our audit work in this area to reflect our understanding that an amount less than our materiality would influence the economic decisions of users of the financial statements in relation to this. We do not apply a specific lower materiality to the disclosure of related party transactions; however, we do consider the materiality of transactions as they apply to both parties involved. Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 24 Scope of our audit05 Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report In accordance with the NAO Code, our primary objectives are to conduct work that supports the delivery of our audit report to the Council. Additionally, we aim to ensure that the Council has established proper arrangements for securing economy, efficiency, and effectiveness in its use of resources, as mandated by relevant legislation and the requirements of the NAO Code. We will issue an audit report that covers: 1. Financial statement audit Our opinion on the financial statements:  Whether the financial statements give a true and fair view of the financial position of the Council and its expenditure and income for the period in question; and  Whether the financial statements have been prepared properly in accordance with the relevant accounting and reporting framework as set out in legislation, applicable accounting standards or other direction. Our opinion on other matters:  whether other information published together with the audited financial statements is consistent with the financial statements. Other procedures required by the Code:  Examine and report on the consistency of the Whole of Government Accounts schedules or returns with the body’s audited financial statements for the relevant reporting period in line with the instructions issued by the National Audit Office. 2. Arrangements for securing economy, efficiency and effectiveness (value for money) We are required to consider whether the Council has put in place ‘proper arrangements’ to secure economy, efficiency and effectiveness on its use of resources and report a commentary on those arrangements. Internal audit We will review internal audit plans and the results of their work. We will reflect the findings from these reports, together with reports from any other work completed in the year, in our detailed audit plan, where they raise issues that could have an impact on the financial statements. In 2024/25, the Council’s Head of Internal Audit concluded that they could provide no assurance over the internal control, risk management and governance arrangements during 2024/25. Audit process and strategy Objectives of our audit scoping 25 Confidential — All Rights Reserved Audit team06 London Borough of Hillingdon Audit Planning Report 26 Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 27 The engagement team is led by Stephen Reid, who has overall responsibility for the performance of the audit and for the auditor’s report issued on behalf of EY. Stephen is supported by Chloe Wilkinson, who joins the audit team for 2025/26 as a second partner. Stephen Reid Key Audit Partner Mark Rutter Senior Manager Cameron Halliday Manager Diva Bhagi Lead Senior Specialist (PPE) EY Real Estates Specialist (Pension) Specialist PWC consulting actuary and EY Actuaries When auditing key judgements, we are often required to use the input and advice provided by specialists who have qualifications and expertise not possessed by the core audit team. The areas where EY specialists are expected to provide input for the current year audit are: In accordance with Auditing Standards, we will evaluate each specialist’s professional competence and objectivity, considering their qualifications, experience and available resources, together with the independence of the individuals performing the work. We also consider the work performed by the specialist in light of our knowledge of the Council’s business and processes and our assessment of audit risk in the particular area. For example, we would typically perform the following procedures:  Analyse source data and make inquiries as to the procedures used by the specialist to establish whether the source data is relevant and reliable;  Assess the reasonableness of the assumptions and methods used;  Consider the appropriateness of the timing of when the specialist carried out the work; and  Assess whether the substance of the specialist’s findings are properly reflected in the financial statements. SpecialistsArea EY Real EstatesValuation of Land and Buildings EY ActuariesPensions disclosure Audit team leadership Our approach to the use of specialists Audit team Chloe Wilkinson Partner Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 28 Audit timeline07 Confidential — All Rights Reserved Planning Walkthroughs Substantive testing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Auditor’s Annual Report Audit opinion on the Council’s financial statements and Auditor’s Annual Report summarising the results of our 2025/26 work at the Council Audit Planning Report Reporting our independence, risk assessment, planned audit approach and the scope of our audit Audit Results Report Reporting our conclusions on key judgements and estimates and confirmation of our independence Below is a timetable showing the key stages of the audit and the deliverables we have agreed to provide to you through the audit cycle in 2025/26. From time to time matters may arise that require immediate communication with the Audit Committee and we will discuss them with the Audit Committee Chair as appropriate. We will also provide updates on corporate governance and regulatory matters as necessary. London Borough of Hillingdon Audit Planning Report 29 Timetable of communication and deliverables Timeline Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 30 Appendices08 Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 31 As set out in Appendix B our fee is based on the assumption that the Council complies with PSAA’s Statement of Responsibilities of auditors and audited bodies. See https://www.psaa.co.uk/managing-audit-quality/statement-of-responsibilities-of-auditors-and-audited-bodies/statement-of-responsibilities-of-auditors-and-audited-bodies-from-2023- 24-audits/. In particular, the Council should have regard to paragraphs 26-28 of the Statement of Responsibilities which clearly set out what is expected of audited bodies in preparing their financial statements. We set out these paragraphs in full below: Preparation of the statement of accounts 26. Audited bodies are expected to follow Good Industry Practice and applicable recommendations and guidance from CIPFA and, as applicable, other relevant organisations as to proper accounting procedures and controls, including in the preparation and review of working papers and financial statements. 27. In preparing their statement of accounts, audited bodies are expected to:  prepare realistic plans that include clear targets and achievable timetables for the production of the financial statements;  ensure that finance staff have access to appropriate resources to enable compliance with the requirements of the applicable financial framework, including having access to the current copy of the CIPFA/LASAAC Code, applicable disclosure checklists, and any other relevant CIPFA Codes.  assign responsibilities clearly to staff with the appropriate expertise and experience;  provide necessary resources to enable delivery of the plan;  maintain adequate documentation in support of the financial statements and, at the start of the audit, providing a complete set of working papers that provide an adequate explanation of the entries in those financial statements including the appropriateness of the accounting policies used and the judgements and estimates made by management;  ensure that senior management monitors, supervises and reviews work to meet agreed standards and deadlines;  ensure that a senior individual at top management level personally reviews and approves the financial statements before presentation to the auditor; and  during the course of the audit provide responses to auditor queries on a timely basis. 28. If draft financial statements and supporting working papers of appropriate quality are not available at the agreed start date of the audit, the auditor may be unable to meet the planned audit timetable, and the start date of the audit will be delayed. As we have outlined in prior years, our ability to complete the audit is dependent on the timely formulation of appropriately supported accounting judgements, provision of accurate and relevant supporting evidence, access to the finance team and management’s responsiveness to issues identified during the audit. We presented our views on the effectiveness of the Council’s arrangements to support external financial audit across a range of relevant measures as part of our 2024/25 Audit Results Report. We have repeated this assessment on the following page. Where we have been unable to undertake all planned procedures, this is likely to extend the timetable to recover assurance on the Council’s financial statements, see page 34 for further details. Appendix A – Rebuilding assurance: responsibilities The Council’s responsibilities Observations from 2024/25 Confidential — All Rights Reserved London Borough of Hillingdon Audit Planning Report 32 Appendix A – Rebuilding assurance: responsibilities Factors impacting the execution of the 2024/25 audit Explanation Status Area GA R The financial statements were published on 22 September 2025, nearly three months after the statutory deadline for commencement of the public inspection period of 1 July 2025.IneffectiveTimeliness of the draft financial statements Ensuring the quality of the draft financial statements was one of management’s reasons for the delayed publication of the draft financial statements. Compared to 2023/24, the draft financial statements were of a noticeably better quality with significantly fewer internal inconsistencies or typographical and arithmetic errors, although our checks did identify a small number of such points. We did however note a number of incorrect restatements of the prior period comparatives within the draft financial statements which management has agreed to revert in the final statements. Requires improvement Quality and completeness of the draft financial statements The original timetable agreed with management for the delivery of supporting working papers was predicated on the Council having draft financial statements prepared by 30 June 2025. The delays in finalising the draft financial statements also resulted in delays providing the supporting working papers for audit. Against revised timelines agreed with management,

Text extracted automatically from the PDF, so layout, tables and images are not shown. Only the start of this long document is shown here. Open the original PDF on LB Hillingdon’s website.

📄 26 HPF - LG 225UK Audit Planning Report 2526 , item 17. PDF 843 KB
Read the text of this document (32 pages)
Provisional Audit Planning Report Year ended 31 March 2026 Hillingdon Pension Fund 28 April 2026 The UK firm Ernst & Young LLP is a limited liability partnership registered in England and Wales with registered number OC300001 and is a member firm of Ernst & Young Global Limited. A list of members’ names is available for inspection at 1 More London Place, London SE1 2AF, the firm’s principal place of business and registered office. Ernst & Young LLP is a multi-disciplinary practice and is authorised and regulated by the Institute of Chartered Accountants in England and Wales, the Solicitors Regulation Authority andother regulators. Further details can be found at http://www.ey.com/UK/en/Home/Legal. Private and Confidential April 2026 Dear Audit Committee Members, Audit Planning Report 2025/26 We are pleased to attach our Audit Planning Report for the forthcoming meeting of the Audit Committee. The purpose of this re port is to provide the Committee with a basis to review our proposed audit approach and scope for the 2025/26 audit, in accordance with the requirements of the Local Audit and Accountability Act 2014, the National Audit Office’s 2024 Code of Audit Practice, the Statement of Responsibilities issued by Public Sector Audit Appointments (PSAA) Ltd, auditing standards, and other professional requirements. This report summarises our evaluation of th e key issues driving the development of an effective audit. We have aligned our audit approach and scope accordingly. This report is intended solely for the information and use of the Audit Committee and management, and is not intended to be, and should not be used, by anyone other than these specified parties. We welcome the opportunity to discuss this report with you on 28 May 2026 as well as understand whether there are other matte rs which you consider may influence our audit. Yours faithfully Debbie Hanson For and on behalf of Ernst & Young LLP Enc Audit Committee London Borough of Hillingdon Uxbridge UB8 1UW Confidential — All Rights Reserved Confidential — All Rights Reserved Hillingdon Pension Fund Audit planning report 3 1 1 4 4 7 7 Audit risks Audit risks 2 2 Overview of our 2025/26 audit strategy Overview of our 2025/26 audit strategy 3 3 5 5 6 6 Audit materiality Audit materiality Scope of the audit Scope of the audit Audit team Audit team Audit timeline Audit timeline Appendices Appendices Public Sector Audit Appointments Ltd (PSAA) issued the ‘Statement of responsibilities of auditors and audited bodies’. It is available from the PSAA website (https://www.psaa.co.uk/managing-audit-quality/statement-of-responsibilities- of-auditors-and-audited-bodies/statement-of-responsibilities-of-auditors-and-audited-bodies-from-2023-24-audits/). The Statement of responsibilities serves as the formal terms of engagement between appointed auditors and audited bodies. It summarises where the different responsibilities of auditors and audited bodies begin and end, and what is to be ex pected of the audited body in certain areas. The ‘Terms of Appointment and further guidance (updated October 2025)’ issued by the PSAA (Terms of appointment and further guidance from 1 October 2025 - PSAA) sets out additional requirements that auditors must comply with, over and above those set out in the National Audit Office Code of Audit Practice 2024 (the NAO Code) and in legislation, and covers matters of practice and procedure which are of a recurring nature. This report is made solely to the Audit Committee and management of London Borough of Hillingdon. Our work has been undertake n so that we might state to the Audit Committee and management of London Borough of Hillingdon those matters we are required to state to them in this report and for no other purpose. To the fullest extent permitted by la w we do not accept or assume responsibility to anyone other than the Audit Committee and management of London Borough of Hillingdon for this report or for the opinions we have formed. It should not be provided to any third -party without our prior written consent. Confidential — All Rights Reserved Hillingdon Pension Fund Audit planning report Overview of our 2025/26 audit strategy01 {68}: 4 Confidential — All Rights Reserved 2025/26 audit strategy overview: Rebuilding Assurance Hillingdon Pension Fund Audit planning report 5 As the Fund’s body charged with governance, the Audit Committee plays a crucial role in ensuring assurance over both the qual ity of the draft financial statements prepared by management and the Council’s wider arrangements to support a timely and efficient audit. Failure to achieve this will signifi cantly increase the level of resources required to fulfil our respective responsibilities. Our ability to complete the audit is dependent on the timely formulation of appropriately supported accounting judgements, pr ovision of accurate and relevant supporting evidence, access to the finance team and management’s responsiveness to issues identified during the audit. We direct Audit Committee m embers and officers to the Public Sector Audit Appointment Limited’s Statement of Responsibilities (paragraphs 26-28) for expectations on preparing financial statements. The purpose of this report Our 2024/25 reporting included our assessment of the control environment at the Pension Fund. We concluded that the Pension F und had sufficient controls for the audit but that improvements were required in relation to disclosures in the financial statements and strengthening diligence when reviewing the treatment of distributions by the custodian to ensure that classification is correct. We will continue to report on our assessment of the quality of the Pension Fund’s financial statements’ preparation to suppor t ongoing transparency of the audit process to those charged with governance, and to facilitate benchmarking and tracking of progress in future years. Preparedness for audit In accordance with the NAO Code, our primary objectives are to conduct work that supports the delivery of our audit report on the Pension Fund financial statements to the Council. We are also required to issue an Auditor’s Statement on the consistency of the pension fund accounts within its Annual Report , to the audited financial statements. We will issue an Audit Results Report that the summarises our opinion on the financial statements by 30 November 2026 and other procedures req uired by the Code. This includes our assessment of the control environment, including our follow up of the recommendations that we made in 2024/25, if any. Scope of our audit In Section 6 we include a provisional timeline for the audit. It is essential that all parties collaborate to ensure complian ce with this timeline. The completion of initial planning procedures is currently delayed due to outstanding data analytics from the Pension Fund. To maintain the agreed audit timetable, it is essential that this information is provided promptly. Significant delays may result in a revised timeline and a potential scale fee variatio n. Timeline There are no issues that we believe impact our independence and objectivity. Please refer to Appendix B for our update on in dependence. Our independence considerations Confidential — All Rights Reserved 2025/26 audit strategy overview: Audit risks and materiality Hillingdon Pension Fund Audit planning report 6 The purpose of our audit is to obtain reasonable assurance to express an opinion about whether the pension fund financial sta tements as a whole are free from material misstatement, whether due to fraud or error. The following ‘dashboard’ summarises the significant accounting and auditing mat ters outlined in this report. It seeks to provide the Audit Committee with an overview of our initial risk identification for the upcoming audit and any changes in risks identifie d in the current year. Risk/area of focus Risk identified Change from PY Details Presumptive risk of management override of controls Fraud risk No change in risk or focus There is a risk that the financial statements as a whole are not free from material misstatement whether caused by fraud or error. We perform mandatory procedures regardless of specifically identified fraud risks. Valuation of complex and hard to value investments (Level 3 Investments) Significant risk No change in risk The Fund’s investments includes a significant balance of level 3 investments, £270 million as at 31 March 2025, such as pooled investment vehicles, property and private debt whose prices are not publicly available. These may contain a number of assets where significant judgements are taken by Investment Managers to value those investments. There is a risk that these are materially misstated given the complexity of the measurement and degree of estimation involved. IAS26 Disclosure – Actuarial present value of promised retirement benefits Risk of material misstatement No change in risk IAS 26 requires post-employment benefit plans to disclose annually the basis used to determine the actuarial present value of promised retirement benefits, including the key demographic and financial assumptions applied. For 2025/26, the estimate will reflect the results of the new 2025 triennial valuation, updated where necessary, and incorporates factors such as mortality rates, expected pay progression, inflation measures and long-term investment yields. We consider there to be a risk relating to the estimation process, the completeness and accuracy of data used, and the appropriateness of the assumptions selected by the actuary. Completeness of investment income Risk of material misstatement No change in risk There is a risk that investment income is incomplete where distributions are reinvested and not clearly reported by fund managers or custodians. This risk has crystallised in prior years, where reinvested distributions were not identified or recognised as income, resulting in a material understatement of investment income and a corresponding overstatement of the change in market value of investments. Audit risks and areas of focus Confidential — All Rights Reserved 2025/26 audit strategy overview: Audit risks and materiality Hillingdon Pension Fund Audit planning report 7 Materiality Planning materiality £14.1m Materiality has been set at £14.1 million, which represents 1% of total net assets in 2024/25. Performance materiality £10.6m Performance materiality has been set at £10.6 million, which represents 75% of materiality. Audit differences £0.7m We will report to you all uncorrected misstatements over £0.7 million, relating to the Fund Account and Net Asset Statement. Other uncorrected misstatements, such as misstatements in disclosures, and corrected misstatements will be communicated to the extent that they merit the attention of the Committee or are important from a qualitative perspective. We will revisit our materiality on publication of the draft pension fund financial statements. Confidential — All Rights Reserved Hillingdon Pension Fund Audit planning report 8 Audit risks02 {68}: Confidential — All Rights Reserved Our response to significant risks Hillingdon Pension Fund Audit planning report 9 We have set out the significant risks (including fraud risks denoted by*) identified for the current year audit along with the rationale and expected audit approach. The risks identified below may change to reflect any significant findings or subsequent issues we identify during the audit. Presumptive risk of management override of controls* What is the risk, and the key judgements and estimates? Our response: Key areas of challenge and professional judgement In accordance with ISA 240, the presumptive risk of management override of controls is present at every entity and we design the appropriate procedures to consider such risk. ▪ Management has the primary responsibility to prevent and detect fraud. It is important that management, with the oversight of those charged with governance, has put in place a culture of ethical behaviour and a strong control environment that both deters and prevents fraud. ▪ Our responsibility is to plan and perform audits to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatements whether caused by error or fraud. To address the risks outlined we will carry out a range of procedures including: ▪ Identifying fraud risks during the planning stages; ▪ Inquiry of management about risks of fraud and the controls put in place to address those risks; ▪ Understanding the oversight given by those charged with governance of management’s processes over fraud; ▪ Discussing with those charged with governance the risks of fraud in the entity, including those risks that are specific to the entity’s business sector (those that may arise from economic industry and operating conditions); ▪ Considering whether there are any fraud risk factors associated with related party relationships and transactions and if so, whether they give rise to a risk of material misstatement due to fraud; ▪ Considering the effectiveness of management’s controls designed to address the risk of fraud and determining an appropriate strategy to address those identified risks of fraud; ▪ Performing mandatory procedures regardless of specifically identified fraud risks, including testing of journal entries and other adjustments in the preparation of the financial statements; ▪ Undertaking procedures to identify significant unusual transactions; and ▪ Considering whether management bias was present in the key accounting estimates and judgements in the financial statements. Confidential — All Rights Reserved Our response to significant risks Hillingdon Pension Fund Audit planning report 10 Valuation of complex hard to value investments (Level 3 Investments) Financial statement impact What is the risk, and the key judgements and estimates? Our response: Key areas of challenge and professional judgement Misstatements that occur in relation to complex investments valued at Level 3 fair value hierarchy such as unquoted equities, property and pooled investments could affect the valuation of the Net Assets. Total of level 3 investments held by the Fund at 31 March 2025 was £270 million. The Fund’s investments include unquoted pooled investment vehicles such as private debt, infrastructure and property investments. These may contain a number of assets where significant judgements are taken by Investment Managers to value those investments. The nature of these types of investments, means that errors in judgement could result in a material valuation error. To address the significant risk, we will carry out a range of procedures including: ▪ Analysing the schedule of investments to determine the level of judgement and estimation risk, to identify the population of hard to value assets as at 31 March 2026; ▪ Obtaining an understanding and evaluating the work of fund managers, and Custodian, including ISAE3402 control reports (or equivalent) where available; ▪ Reviewing the latest audited accounts for the relevant Fund Managers to ensure there are no matters arising that highlight weaknesses in the funds valuation; ▪ Reviewing the basis of valuation of unquoted investments and assessing the appropriateness of the valuation methods used; and ▪ Performing analytical procedures and checking the valuation output for reasonableness against our own expectations, where the latest audited accounts were not as at 31 March 2026. We will also: • Ensure correct classification, presentation and disclosure of items in the financial statements and corresponding notes; • Review investment valuation disclosures to verify that significant judgements surrounding the valuation Investments have been appropriately made in the financial statements; ▪ Perform triangulation work to agree amount per the financial statements to Fund Manager and to Custodian; and ▪ Test accounting entries have been correctly processed in the financial statements We will involve our Pensions Centre of Excellence in undertaking this work, and If necessary other internal valuation specialists. Confidential — All Rights Reserved Other areas of audit focus Hillingdon Pension Fund Audit planning report 11 IAS26 Disclosure – Actuarial present value of promised retirement benefits Financial statement impact What is the risk, and the key judgements and estimates? Our response: Key areas of challenge and professional judgement IAS 26 requires post-employment benefit plans to disclose annually the basis used to determine the actuarial present value of promised retirement benefits, including the key demographic and financial assumptions applied. For 2025/26, the estimate reflects the results of the new 2025 triennial valuation, updated where necessary, and incorporates factors such as mortality rates, expected pay progression, inflation measures and long-term investment yields. We consider there to be a risk relating to the estimation process, the completeness and accuracy of data used, and the appropriateness of the assumptions selected by the actuary. To address the risks outlined we will carry out a range of procedures including: ▪ Assessing the competence of management’s actuary, Hymans Robertson; ▪ Engaging with the NAO’s consulting actuary, PwC, and our EY Pensions Advisory Team to review the IAS 26 approach and assumptions applied by management’s actuary to assess whether these are reasonable and compliant with IAS 26; ▪ Ensuring that the IAS 26 disclosure is in line with the relevant standards and consistent with the valuation provided by the actuary; and ▪ Assessing the adequacy and clarity of disclosures relating to actuarial assumptions, sensitivities and estimation uncertainty in accordance with the CIPFA Code and ISA (UK) 540 (Revised). We have identified other areas of the audit, that have not been classified as significant risks, but are still important when considering the risks of material misstatement to the financial statements and disclosures. Confidential — All Rights Reserved Other areas of audit focus Hillingdon Pension Fund Audit planning report 12 Completeness of investment income Financial statement impact What is the risk, and the key judgements and estimates? Our response: Key areas of challenge and professional judgement Misstatements that occur in relation to completeness of investment income would result in investment income being understated and a corresponding overstatement of the change in market value of investments. Total investment income in 2024/25 was £17,573 million. Total profit and losses on disposal of investments and changes in market value of investments in 2024/25 was £52,595 million. There is a risk that investment income is incomplete where distributions are reinvested and not clearly reported by fund managers or custodians. This risk has crystallised in prior years, where reinvested distributions were not identified or recognised as income resulting in a material understatement of investment income and a corresponding overstatement of the change in market value of investments. This is indicative of a potential control weakness over the identification, completeness and classification of investment income. To address the risks outlined we will carry out a range of procedures including: ▪ Agreeing the investment income back to the fund manager reports to ensure completeness and accuracy, and that any distributions reinvested in the fund are correctly treated. ▪ Performing analytical procedures and checking the output for reasonableness against our own expectations. Confidential — All Rights Reserved Hillingdon Pension Fund Audit planning report 13 Audit materiality03 {68}: Confidential — All Rights Reserved Materiality Hillingdon Pension Fund Audit planning report 14 For planning purposes, materiality for 2025/26 has been set at £14.1 million. This represents 1% of the Pension Fund’s net assets at 31 March 2025. It will be reassessed throughout the audit process. In an audit of a Pension Fund, we consider the net assets to be the appropriate basis for setting the materiality as they represent the best measure of the schemes’ ability to meet obligations rising from the pension liabilities. We have provided supplemental information about audit materiality in Appendix D. Planning materiality — the amount over which we anticipate misstatements would influence the economic decisions of a user of the financial statements. Performance materiality — the amount we use to determine the extent of our audit procedures. We have set performance materiality at £10.6 million which represents 75% of materiality. We have considered factors such as the number of errors in the prior year, the adequacy of the control environment, and any significant changes in 2025/26 when determining the percentage of performance materiality. Audit difference threshold — We will report to you all uncorrected misstatements over £0.7million, relating to the Fund Account and Net Asset Statement. Other uncorrected misstatements, such as misstatements in the disclosures and corrected misstatements will be communicated to the extent that they merit the attention of the Audit Committee or are important from a qualitative perspective. Hillingdon Pension Fund materiality Key definitions We request that the Audit Committee confirm its understanding of, and agreement to, these materiality and reporting levels. Planning materiality £14.1m Performance materiality £10.6m Audit differences £0.7m Net Assets £1,410m Confidential — All Rights Reserved Hillingdon Pension Fund Audit planning report 15 Scope of our audit04 {68}: Confidential — All Rights Reserved Audit process and strategy Hillingdon Pension Fund Audit planning report 16 In accordance with the NAO Code, our primary objectives are to conduct work that supports the delivery of our audit report to the Hillingdon Pension Fund. We will issue an audit report that covers: 1. Financial statement audit Our opinion on the financial statements: ▪ Whether the financial statements give a true and fair view of the Revenue and Fund Account and Net Asset Statement for the Pe nsion Fund for the period in question; and ▪ Whether the financial statements have been prepared properly in accordance with the relevant accounting and reporting framewo rk as set out in legislation, applicable accounting standards or other direction. Our opinion on other matters: ▪ whether other information published together with the audited financial statements is consistent with the financial statement s. Other procedures required by the Code: ▪ Reviewing and reporting on matters on which we report by exception as required. ▪ We are also required to issue an Auditor’s Statement on the consistency of the pension fund accounts within its Annual Report , to the audited financial statements. Objectives of our audit scoping Internal audit We will review internal audit plans and the results of their work. We will reflect the findings from these reports, together with reports from any other work completed in the year, in our detailed audit plan, where they raise issues that could have an impact on the financial statements. Confidential — All Rights Reserved Audit team05 {68}: Hillingdon Pension Fund Audit planning report 17 Confidential — All Rights Reserved Audit team Hillingdon Pension Fund Audit planning report 18 The global engagement team is led by Debbie Hanson, who has overall responsibility for the performance of the audit and for the auditor’s report issued on behalf of EY. In the current year, Debbie Hanson is supported by Chloe Wilkinson as other engagement partner. Audit team leadership Lead audit partner* Debbie Hanson Nimisha Dosa Manager Josna Jose Senior Niña Rose Cutaran Senior EY Centre of Excellence - Pensions Specialist PWC consulting actuary and EY Actuaries When auditing key judgements, we are often required to use the input and advice provided by specialists who have qualifications and expertise not possessed by the core audit team. The areas where EY specialists are expected to provide input for the current year audit are: In accordance with Auditing Standards, we will evaluate each specialist’s professional competence and objectivity, considering their qualifications, experience and available resources, together with the independence of the individuals performing the work. We also consider the work performed by the specialist in light of our knowledge of the Group’s business and processes and our assessment of audit risk in the particular area. For example, we would typically perform the following procedures: ▪ Analyse source data and make inquiries as to the procedures used by the specialist to establish whether the source data is relevant and reliable ▪ Assess the reasonableness of the assumptions and methods used ▪ Consider the appropriateness of the timing of when the specialist carried out the work ▪ Assess whether the substance of the specialist’s findings are properly reflected in the financial statements. Our approach to the use of specialists Area Specialists Investment Valuation EY Centre of Excellence - Pensions Pensions Fund valuation and disclosures EY Actuaries PwC (Consulting Actuary to the NAO on behalf of audit providers) Other engagement partner Chloe Wilkinson Confidential — All Rights Reserved Hillingdon Pension Fund Audit planning report 19 Audit timeline06 {68}: Confidential — All Rights Reserved Planning Walkthroughs Substantive testing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Signing of Audit Opinion Audit opinion on the Pension Fund accounts and consistency statement on the Pension Fund Annual Report for year ended 31st March 2026 Audit planning report Reporting our independence, risk assessment, planned audit approach and the scope of our audit Audit Results Report Reporting our conclusions on key judgements and estimates and confirmation of our independence Timetable of communication and deliverables Below is a timetable showing the key stages of the audit and the deliverables we have agreed to provide to you through the au dit cycle in 2025/26. From time to time matters may arise that require immediate communication with the Audit Committee and we will discuss them wi th the Audit Committee Chair as appropriate. We will also provide updates on corporate governance and regulatory matters as necessary. Hillingdon Pension Fund Audit planning report 20 Timeline Confidential — All Rights Reserved Hillingdon Pension Fund Audit planning report 21 Appendices07 {68}: Confidential — All Rights Reserved Appendix A — PSAA Statement of Responsibilities Hillingdon Pension Fund Audit planning report 22 As set out in Appendix B our fee is based on the assumption that the Fund complies with PSAA’s Statement of Responsibilities of auditors and audited bodies. See https://www.psaa.co.uk/managing-audit-quality/statement-of-responsibilities-of-auditors-and-audited-bodies/statement-of-responsibilities-of-auditors-and-audited-bodies-from-2023- 24-audits/. In particular, the Fund should have regard to paragraphs 26-28 of the Statement of Responsibilities which clearly set out what is expected of audited bodies in preparing their financial statements. We set out these paragraphs in full below: Preparation of the statement of accounts 26. Audited bodies are expected to follow Good Industry Practice and applicable recommendations and guidance from CIPFA and, as applicable, other relevant organisations as to proper accounting procedures and controls, including in the preparation and review of working papers and financial statements . 27. In preparing their statement of accounts, audited bodies are expected to: ▪ prepare realistic plans that include clear targets and achievable timetables for the production of the financial statements; ▪ ensure that finance staff have access to appropriate resources to enable compliance with the requirements of the applicable f inancial framework, including having access to the current copy of the CIPFA/LASAAC Code, applicable disclosure checklists, and any other relevant CIPFA Codes. ▪ assign responsibilities clearly to staff with the appropriate expertise and experience; ▪ provide necessary resources to enable delivery of the plan; ▪ maintain adequate documentation in support of the financial statements and, at the start of the audit, providing a complete s et of working papers that provide an adequate explanation of the entries in those financial statements including the appropriateness of the accounting policies used and th e judgements and estimates made by management; ▪ ensure that senior management monitors, supervises and reviews work to meet agreed standards and deadlines; ▪ ensure that a senior individual at top management level personally reviews and approves the financial statements before prese ntation to the auditor; and ▪ during the course of the audit provide responses to auditor queries on a timely basis. 28. If draft financial statements and supporting working papers of appropriate quality are not available at the agreed start date of the audit, the auditor may be unable to meet the planned audit timetable, and the start date of the audit will be delayed. The Fund’s responsibilities Confidential — All Rights Reserved Appendix B - Independence and Fees Hillingdon Pension Fund Audit planning report Planning stage Final stage ▪ The principal threats, if any, to objectivity and independence identified by Ernst & Young (EY) including consideration of all relationships between you, your affiliates and directors and us; ▪ The safeguards adopted and the reasons why they are considered to be effective, including any Engagement Quality review; ▪ The overall assessment of threats and safeguards; ▪ Information about the general policies and process within EY to maintain objectivity and independence ▪ The IESBA Code requires EY to provide an independence assessment of any proposed non-audit service (NAS) to the PIE audit client and will need to obtain and document pre-concurrence from the audit committee/those charged with governance for the provision of all NAS prior to the commencement of the service (i.e., similar to obtaining a “pre-approval” to provide the service). ▪ In order for you to assess the integrity, objectivity and independence of the firm and each covered person, we are required to provide a written disclosure of relationships (including the provision of non - audit services) that may bear on our integrity, objectivity and independence. This is required to have regard to relationships with the entity, its directors and senior management, its affiliates, and its connected parties and the threats to integrity or objectivity, including those that could compromise independence that these create. We are also required to disclose any safeguards that we have put in place and why they address such threats, together with any other information necessary to enable our objectivity and independence to be assessed; ▪ Details of non-audit/additional services provided and the fees charged in relation thereto; ▪ Written confirmation that the firm and each covered person is independent and, if applicable, that any non-EY firms used in the group audit or external experts used have confirmed their independence to us; ▪ Details of any non-audit/additional services to a UK PIE audit client where there are differences of professional opinion concerning the engagement between the Ethics Partner and Engagement Partner and where the final conclusion differs from the professional opinion of the Ethics Partner ▪ Details of any inconsistencies between FRC Ethical Standard and your policy for the supply of non -audit services by EY and any apparent breach of that policy; ▪ Details of all breaches of the IESBA Code of Ethics, the FRC Ethical Standard and professional standards, and of any safeguards applied and actions taken by EY to address any threats to independence (for breaches of the FRC Ethical Standard include details of its significance); and ▪ An opportunity to discuss auditor independence issues. The FRC Ethical Standard 2024 and ISA (UK) 260 ‘Communication of audit matters with those charged with governance’, requires us to communicate with you on a timely basis on all significant facts and matters that bear upon our integrity, objectivity and independence. The Ethical Standard requires that we communicate formally both at the planning stage and at the conclusion of the audit, as well as during the course of the audit if appropriate. The aim of these communications is to ensure full and fair disclosure by us to those charged with your governance on matters in which you have an interest. In addition, during the course of the audit, we are required to communicate with you whenever any significant judgements are made about threats to objectivity and independence and the appropriateness of safeguards put in place, for example, when accepting an engagement to provide non -audit services. We ensure that the total amount of fees that EY and our network firms have charged to you and your affiliates for the provisi on of services during the reporting period, analysed in appropriate categories, are disclosed. 23 Required communications Confidential — All Rights Reserved Appendix B - Independence and Fees continued Hillingdon Pension Fund Audit planning report 24 Overall Assessment We highlight the following significant facts and matters that may be reasonably considered to bear upon our objectivity and i ndependence, including the principal threats, if any. We have adopted the safeguards noted below to mitigate these threats along with the reasons why they are considered to be effect ive. However we will only perform non-audit services if the service has been pre-approved in accordance with your policy. Overall, we consider that the safeguards that have been adopted appropriately mitigate the principal threats identified and w e therefore confirm that EY is independent and the objectivity and independence of Debbie Hanson, your audit engagement partner and the audit engagement team have not been comp romised. Self interest threats A self interest threat arises when EY has financial or other interests in your company. Examples include where we have an inv estment in your company; where we receive significant fees in respect of non-audit services; where we need to recover long outstanding fees; or where we enter into a business relatio nship with you. At the time of writing, there are no long outstanding fees. We believe that it is appropriate for us to undertake those permitted non-audit/additional services set out in Section 5.40 of the FRC Ethical Standard 2024 (FRC ES), and we will comply with the policies that you have approved. None of the services are prohibited under the FRC's ES and the services have been approved in accordance with your policy on pre-approval. At the time of writing, there are no non-audit fees with Hillingdon Pension Fund. No additional safeguards are required. A self interest threat may also arise if members of our audit engagement team have objectives or are rewarded in relation to sales of non-audit services to you. We confirm that no member of our audit engagement team, including those from other service lines, has objectives or is rewarded in relation to s ales to you, in compliance with FRC ES Section 4. There are no other self interest threats at the date of this report. Relationships, services and related threats and safeguards Self review threats Self review threats arise when the results of a non-audit service performed by EY or others within the EY network are reflected in the amounts included or disclosed in the financial statements. There are no self review threats at the date of this report Management threats Partners and employees of EY are prohibited from taking decisions on behalf of management of your company. Management threats may also arise during the provision of a non-audit service in relation to which management is required to make judgements or decisions based on that work. There are no management threats at the date of this report. Confidential — All Rights Reserved Appendix B - Independence and Fees continued Hillingdon Pension Fund Audit planning report 25 Other threats Other threats, such as advocacy, familiarity or intimidation, may arise. There are no other threats at the date of this report. EY Transparency Report EY has policies and procedures that instil professional values as part of firm culture and ensure that the highest standards of objectivity, independence and integrity are maintained. Details of the key policies and processes in place within EY for maintaining objectivity and independence can be found in our annual Transparency Report which the firm is required to publish by law. The most recent version of this Report is for the period ended 30 June 2025 and can be found here: EY UK 2025 Transparency Report. Confidential — All Rights Reserved Appendix B — Independence and Fees continued The duty to prescribe fees is a statutory function delegated to Public Sector Audit Appointments Ltd (PSAA) by the Secretary of State for Housing, Communities and Local Government. This is defined as the fee required by auditors to meet statutory responsibilities under the Local Audit and Accountability Act 2014 in accordance with the requirements of the Code of Audit Practice and supporting guidance published by the National Audit Office, the financial reporting requirements set out in the Code of Practice on Local Authority Accounting published by CIPFA/LASAAC, and the professional standards applicable to auditors’ work. The agreed fee presented is based on the following assumptions: ▪ officers meeting the agreed timetable of deliverables; ▪ our financial statement opinion and value for money conclusion being unqualified; ▪ appropriate quality of documentation is provided by the Fund; ▪ an effective control environment; and ▪ compliance with PSAA’s Statement of Responsibilities of auditors and audited bodies. See https://www.psaa.co.uk/managing-audit- quality/statement-of-responsibilities-of-auditors-and- audited-bodies/statement-of-responsibilities-of-auditors- and-audited-bodies-from-2023-24-audits/. In particular the Fund should have regard to paragraphs 26–28 of the Statement of Responsibilities which clearly sets out what is expected of audited bodies in preparing their financial statements. These are set out in full on the previous page. If any of the above assumptions prove to be unfounded, we will seek a variation to the agreed fee. This will be discussed with the Fund in advance. Hillingdon Pension Fund Audit planning report 26 All fees exclude VAT 1. The 2024/25 work has just been completed, and a final fee will be determined shortly. We have submitted a scale fee variation to PSAA for additional 2024/25 work including investment valuations and quality and preparation issues, as well as the incremental work by our IT audit specialists to provide assurance over the migration of financial records of the Hillingdon Pension Fund from Oracle R12 to Oracle Fusion alongside the work performed as part of the Council’s audit for 2024/25. 2. For 2025/26 the planned fee represents the base fee, i.e., not including any extended testing. The scale fee also may be impacted by a range of other factors which will result in additional work, which include but are not limited to: ▪ Consideration of correspondence from the public and formal objections. ▪ New and revised accounting standards ▪ Non-compliance with law and regulation with an impact on the financial statements. ▪ The need to exercise auditor statutory powers. ▪ Prior period adjustments. ▪ Modified financial statement opinions ▪ We expect to request an additional fee for 2025/26 because it is a triennial valuation year which requires extended audit testing of the membership data submitted to the actuary. Current Year Prior Year £ £ Total Fee — Code Work 96,295 92,572 Proposed Scale Fee Variation Note 2 Note 1 Total fees 96,295 92,572 Confidential — All Rights Reserved Appendix C — Required communications with the Audit Committee We have detailed the communications that we must provide to the audit committee. Our Reporting to you Required communications What is reported? When and where Terms of engagement Confirmation by the audit committee of acceptance of terms of engagement as written in the engagement letter signed by both parties. The statement of responsibilities serves as the formal terms of engagement between the PSAA’s appointed auditors and audited bodies. Our responsibilities Reminder of our responsibilities as set out in the engagement letter Audit planning report – April 2026 Planning and audit approach Communication of: ▪ The planned scope and timing of the audit ▪ The planned use of internal audit ▪ The significant risks identified When communicating key audit matters this includes the most significant risks of material misstatement (whether or not due to fraud) including those that have the greatest effect on the overall audit strategy, the allocation of resources in the audit and directing the efforts of the engagement team Audit planning report – April 2026 Significant findings from the audit ▪ Our view about the significant qualitative aspects of accounting practices including accounting policies, accounting estimates and financial statement disclosures ▪ Significant difficulties, if any, encountered during the audit ▪ Other significant matters, if any, arising from the audit that were discussed, or subject to correspondence with management ▪ Circumstances that affect the form and content of our auditor’s report ▪ Other matters if any, significant to the oversight of the financial reporting process Audit results report – expected September 2026 Hillingdon Pension Fund Audit planning report 27 Confidential — All Rights Reserved Appendix C — Required communications with the Audit Committee continued Our Reporting to you Required communications What is reported? When and where Going concern Events or conditions identified that may cast significant doubt on the entity’s ability to continue as a going concern, including: ▪ Whether the events or conditions constitute a material uncertainty related to going concern ▪ Whether the use of the going concern assumption is appropriate in the preparation and presentation of the financial statements ▪ The appropriateness of related disclosures in the financial statements Audit results report – expected September 2026 Misstatements ▪ A request that any uncorrected misstatement be corrected ▪ Material misstatements corrected by management ▪ Uncorrected misstatements and their effect on our audit opinion, unless prohibited by law or regulation ▪ The effect of uncorrected misstatements related to prior periods Audit results report – expected September 2026 Fraud ▪ Enquiries of the audit committee to determine whether they have knowledge of any actual, suspected or alleged fraud affecting the entity ▪ Any fraud that we have identified or information we have obtained that indicates that a fraud may exist ▪ Unless all of those charged with governance are involved in managing the entity, unless prohibited by law or regulation any identified or suspected fraud involving: ▪ Management; ▪ Employees who have significant roles in internal control; or ▪ Others, when the identified or suspected fraud is other than clearly inconsequential. ▪ The nature, timing and extent of audit procedures necessary to complete the audit when fraud involving management is suspected ▪ Matters, if any, to communicate regarding management’s process for identifying and responding to the risks of fraud in the entity and our assessment of the risks of material misstatement due to fraud ▪ Any other matters related to fraud, relevant to Audit Committee responsibility Audit results report – expected September 2026 Hillingdon Pension Fund Audit planning report 28 Confidential — All Rights Reserved Appendix C — Required communications with the Audit Committee continued Our Reporting to you Required communications What is reported? When and where Related parties Significant matters arising during the audit in connection with the entity’s related parties Audit results report – expected September 2026 Independence Communication of the relevant ethical requirements, including those related to independence, that we apply for the audit engagement, including any independence requirements specific to audits of financial statements of the entity. Communication of all significant facts and matters that bear on EY’s, and all individuals involved in the audit, integrity, objectivity and independence Communication of key elements of the audit engagement partner’s consideration of independence and objectivity such as: ▪ The principal threats ▪ Safeguards adopted and their effectiveness ▪ An overall assessment of threats and safeguards ▪ Information about the general policies and process within the firm to maintain objectivity and independence ▪ Breaches of IESBA Code of Ethics, local independence regulations or professional standards (for breaches of the FRC Ethical Standard, include details of the breach and its significance) Communication whenever significant judgements are made about threats to integrity, objectivity and independence and the appropriateness of safeguards put in place. Communication of relevant information to those charged with governance, to enable them to provide concurrence on the non-audit services being provided. Audit planning report – April 2026 Audit results report – expected September 2026 Hillingdon Pension Fund Audit planning report 29 Confidential — All Rights Reserved Appendix C — Required communications with the Audit Committee continued Our Reporting to you Required communications What is reported? When and where External confirmations ▪ Management’s refusal for us to request confirmations ▪ Inability to obtain relevant and reliable audit evidence from other procedures Audit results report – expected September 2026 Consideration of laws and regulations ▪ Subject to compliance with applicable regulations, matters involving identified or suspected non - compliance with laws and regulations, other than those which are clearly inconsequential and the implications thereof. Instances of suspected non-compliance may also include those that are brought to our attention that are expected to occur imminently or for which there is reason to believe that they may occur ▪ Enquiry of the audit committee into possible instances of non-compliance with laws and regulations that may have a material effect on the financial statements and that the audit committee may be aware of Audit results report – expected September 2026 Internal controls ▪ Significant deficiencies in internal controls identified during the audit Management Letter of Representation Audit results report – expected September 2026 Hillingdon Pension Fund Audit planning report 30 Representations Written representations we are requesting from management and/or those charged with governance Audit results report – expected September 2026 System of quality management How the system of quality management (SQM) supports the consistent performance of a quality audit Audit results report – expected September 2026 Material inconsistencies and misstatements Material inconsistencies or misstatements of fact identified in other information which management has refused to revise Audit results report – expected September 2026 Auditors report ▪ Any circumstances identified that affect the form and content of our auditor’s report Audit results report – expected September 2026 Confidential — All Rights Reserved Appendix D — Additional audit information Hillingdon Pension Fund Audit planning report 31 In addition to the key areas of audit focus outlined within the plan, we have to perform other procedures as required by audi ting, ethical and independence standards and other regulations. We outline the procedures below that we will undertake during the course of our audit. ▪ Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, desi gn and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. ▪ Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Pension Fund’s internal control. ▪ Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclos ures made by management. ▪ Concluding on the appropriateness of management’s use of the going concern basis of accounting. ▪ Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and whethe r the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. ▪ Maintaining auditor independence. Objective of our audit Other required procedures during the course of the audit For the purposes of determining whether the accounts are free from material error, we define materiality as the magnitude of an omission or misstatement that, individually or in the aggregate, in light of the surrounding circumstances, could reasonably be expected to influence the economic decisions of the users of the financial statements. Our evaluation of it requires professional judgement and necessarily takes into account qualitative as well as quantitative considerations implici t in the definition. We would be happy to discuss with you your expectations regarding our detection of misstatements in the financial statements. The amount we consider material at the end of the audit may differ from our initial determination. At this stage, however, it is not feasible to anticipate all of the circumstances that may ultimately influence our judgement about materiality. At the end of the audit we will form our final opinion by reference to all matters that could be significant to users of the accounts, including the total effect of the audit misstatements we identify, and our evaluation of materiality at that date. Purpose and evaluation of materiality EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com. Ernst & Young LLP The UK firm Ernst & Young LLP is a limited liability partnership registered in England and Wales with registered number OC300001 and is a member firm of Ernst & Young Global Limited. Ernst & Young LLP, 1 More London Place, London, SE1 2AF. © 2025 Ernst & Young LLP. Published in the UK. All Rights Reserved. UKC-038208 (UK) 03/25. Creative UK. ED None Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young LLP accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material. ey.com/uk EY | Building a better working world EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets. Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow. EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories. All in to shape the future with confidence.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

18. Risk Assurance Annual Report 2025/26 PDF 137 KB
The Risk Management Annual Report was presented to the Committee. Members were advised that there had been a positive shift in 2025/26 from simply recording risks to actively managing them, with greater ownership across services and directorates. At year end, 222 risks had been recorded, including 26 red risks although this had reduced to 16 following a post year-end review. It was also noted that the Council’s risk management maturity had improved from risk aware to risk defined. Members discussed the Council’s key financial risks and were advised that Exceptional Financial Support, the rebuilding of reserves and the anticipated return of Dedicated Schools Grant funding had strengthened the Council’s financial resilience. Assurance was also provided that significant risks were monitored through the corporate risk register while operational risks were managed within individual services. Risk management training and guidance continued to be embedded across the organisation to support decision making and service delivery. The Committee welcomed the progress made and noted the report. RESOLVED: The Committee noted the Risk Management Annual Report for 2025/26 and the actions taken to improve risk management arrangements.
📄 Risk Assurance Annual Report 2025/26 PDF 137 KB
Read the text of this document (1 page)
Classification: Public Audit, Finance & Performance Committee 15 July 2026 RISK MANAGEMENT ANNUAL REPORT 2025/26 Committee name Audit, Finance & Performance Committee Officer reporting Claire Baker, Head of Risk Assurance Papers with report Risk Management Annual Report for 2025/26 Ward All HEADLINES This report presents a summary of the Risk Management work undertaken across the Council during 2025/26. The report provides assurance to the Audit, Finance and Performance Committee that risks are being managed within the relevant services and mitigating actions are being implemented. The report also includes a summary of the Council’s red rated risks, also known as the Corporate Risk Register throughout the year. RECOMMENDATIONS That the Committee: 1. Notes the Risk Management Annual Report for 2025/26 and the actions taken to improve risk management arrangements. SUPPORTING INFORMATION NIL BACKGROUND PAPERS NIL

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 Risk Management Annual Report for 2025-26 , item 18. PDF 696 KB
Read the text of this document (9 pages)
RISK MANAGEMENT ANNUAL REPORT 2025/26 April 2026 HILLINGDON COUNCIL RISK MANAGEMENT ANNUAL REPORT 2025/26 2 CONTENTS 1. INTRODUCTION 3 2. RISK MANAGEMENT IN 2025/26 3 3. YEAR END RISK REGISTER UPDATE 4 4. CORPORATE RISK REGISTER 5 5. FORWARD PLAN 6 APPENDIX A: CORPORATE RISK REGISTER 7 APPENDIX B: RISK SCORING METHODOLOGY 9 HILLINGDON COUNCIL RISK MANAGEMENT ANNUAL REPORT 2024/25 3 1. INTRODUCTION 1.1 Hillingdon Council has a statutory responsibility to ensure arrangements are in place for managing risks. Risk management is a crucial element of good management and a key part of corporate governance. Although risks can never be entirely eliminated, proportionate and targeted action can be taken to reduce risks to an acceptable level. 1.2 Managing risk should be viewed as a mainstream activity and something that is an integral part of everyday management across the organisation. Risk Management involves the early identification of risks, assessing their potential consequences , and determining the most effective way to reduce the likelihood and/or impact of the risk. Th e Council’s Risk Management Policy provides a framework to ensure: • Clear accountabilities and well defined roles and responsibilities for managing risks • Risks are promptly identified and their likelihood and impact on Council business is accurately assessed and appropriate action is taken to mitigate the potential risk • Employees have the knowledge and skills to identify and manage risks • Decisions are taken having considered relevant risks • The impact of risk management is evaluated 2. RISK MANAGEMENT IN 2025/26 2.1 This was the second year using the online risk management system, JCAD, implemented in April 2024. During the first year the focus was on training officers to use the system, with reliance on the Head of Risk Assurance to support services to maintain their risk registers . Therefore in 2025/26 there has been a significant movement towards ensuring services are managing their own risk registers and embedding risk management into day-to-day corporate governance arrangements across the council. 2.2 Key Performance Indicators (KPIs) in relation to risk management have also been updated during 2025/26 and aligned to the wider performance reporting framework. These KPIs were reported t o the Corporate Management Team and the Audit Committee as part of the quarterly risk assurance reports. Performance against the risk indicators has been improving throughout the year including a reduction in the number of risks overdue for review, the number of unscored risks and the number of risks with no mitigating actions assigned. 2.3 Aligning performance and risk management helps to provide complete oversight of performance against desired outcomes and the actions taken to mitigate the potential risks that could impact on this performance. Work will be undertaken in 2026/27 to further develop these reports as part of the wider implementation of the balanced scorecards. HILLINGDON COUNCIL RISK MANAGEMENT ANNUAL REPORT 2025/26 4 3. YEAR END RISK REGISTER UPDATE 3.1 The number of risks recorded has decreased from 242 risks at the end of 2024/25 to 222 risks at the end of 2025/26. This indicates services are taking mitigating action to reduce identified risks to an acceptable level and reviewing their risk registers to close risks when they are no longer required. 3.2 There were 26 red rated risks on the risk register at the year end . In line with the Risk Management Policy these form the corporate risk register shown in section four of this report. 3.3 At the year -end there were four unscored risks on the risk register. These were all new risks added in February and March, and risk scores were added for three of the four in early April. 3.4 At the end of the year there were only ten risks overdue for review , an increase from five in January 2026 but a positive decrease from 41 risks as of November 2025. The majority of these were green rated risks , and only one was red rated relating to the Councils budget position in 2025/26. This was reviewed and closed at the beginning of April following the Exceptional Financial Support agreement. 3.5 All risks added to the Risk Management System should have actions in place to reduce the likelihood or impact of the risk. If a risk does not have mitigating actions to reduce the risk score it should be considered whether the risk is being tolerated, and whether it is within the Council’s risk appetite to tolerate the risk at that level. 3.6 At the end of 2025/26 there were 24 risks without actions allocated on the risk management system. This is 10.6% of all risks, but a reduction from 14% of all risks as of January 2026 and 56% of all risks at the end of 2024/25. This includes two red rated risks however actions were added to one of these shortly after the year end, and the other was closed as tolerated. 1 1 3 9 3 1 3 1 2 0 2 4 6 8 10 Children's Services Directorate Finance Directorate Adult Services and Health Directorate Residents Services Chief Executive Office Risks without Actions by Directorate GREEN AMBER RED 5 14 4 16 38 1111 20 7 15 45 6 5 2 18 13 1 0 20 40 60 80 100 120 Children's Services Directorate Finance Directorate Adult Services and Health Directorate Corporate Services Residents Services Chief Executive Office Total Risks by Directorate #N/A RED AMBER GREEN 1 0 0 1 5 0 0 2 10 1 2 3 4 5 6 7 8 Children's Services Directorate Finance Directorate Adult Services and Health Directorate Corporate Services Residents Services Chief Executive Office Overdue for Review by Directorate GREEN AMBER RED #N/A HILLINGDON COUNCIL RISK MANAGEMENT ANNUAL REPORT 2025/26 5 3.7 In total at the year -end there were 274 actions allocated against 198 risks on the system (153 against 107 risks at the end of 2024/25). Of these only eight were actions overdue for review (3%). 3.8 This reflects the work completed to ensure that all risks had action plans in place as a priority area within 2025/26, and services are keeping these actions updated. This will be a continued area of focus in 2026/27 and will also involve reviewing the Council’s risk appetite statement to ensure risks are not closed as tolerated above the acceptable level. 3.9 Finally, the graph below shows the risk status for each risk, as recorded by the risk owner, split between the different risk categories. The highest proportion of risks were categorised as Financial risks, with a total of 65 risks under this category, and this is not unexpected due to the increased focus on finances throughout the year. 4. CORPORATE RISK REGISTER (CRR) 4.1 The Council’s Corporate Risk Register (CRR) is an essential part of the Local Authority’s Risk Management arrangements. The CRR documents any operational risks from the risk management system which are graded 'red' due to their potential likelihood and impact on the Council. These risks are then monitored by the Corporate Management Team and used to inform the Strategic Risks presented to the Audit Committee in the Strategic Risk Report. The Corporate Risk Register is outlined in Appendix A. 4.2 The CRR is presented to the Corporate Management Team (CMT), Corporate Governance Group and the Audit Committee quarterly. The Corporate Management Team is responsible for ensuring the identified risks are being managed and mitigating actions are being implemented. The Corporate Governance Group and Audit Committee maintain oversight of the risk management arrangements and monitor the CRR to gain assurance the arrangements are working effectively. 1 1 11 1 3 0 1 2 3 4 Children's Services Directorate Finance Directorate Adult Services and Health Directorate Corporate Services Residents Services Chief Executive Office Actions Overdue for Review GREEN AMBER 12 3 10 2 1 1 1 2 24 23 1 33 3 4 6 3 2 7 2 1 8 5 2 1 22 2 12 7 11 4 2 5 0 10 20 30 40 50 60 70 Financial Fraud, Loss and Error Non-Statutory Service… Statutory Service Provision Workforce IT & Technology Health & Safety (including… Project/Transformation Reputational Risk Status by Risk Category Decreasing Risk Static Increasing Risk New HILLINGDON COUNCIL RISK MANAGEMENT ANNUAL REPORT 2025/26 6 4.3 The CMT undertook a detailed review of the Corporate Risk Register following the year end and reduced a number of risk scores where mitigating actions may not have been taken into consideration when setting the risk score. This is not reflected in this a nnual report as it was after the year end but will be highlighted in the risk report to the next Audit Committee meeting. 4.4 Analysis of Corporate Risk Register Number of Corporate Risks brought forward from 2024/25 26 Number of new Corporate Risks in 2025/26 16 Number of retired Corporate Risks in 2025/26 16 Number of Corporate Risks where the Risk Scores have increased 4 Number of Corporate Risks where the Risk Scores have decreased 1 Number of Corporate Risks where the Risk Scores have remained static 22 Total Number of Corporate Risks at the end of 2025/26 26 5. 2026/27 FORWARD PLAN 5.1 Move to 'Risk Managed' 5.2 The Chartered Institute for Internal Audit's Risk Maturity Model is a benchmarking tool to assess the Council's organisation’s risk maturity. In accordance with this model our current risk maturity level is 'Risk Defined', the middle of the five maturity levels. 5.3 This assessment is an improvement from the end of 202 4/25 and reflects the increased scrutiny of risks at an operational level and the more consistent use of the risk management system. 5.4 It is an asp iration to continue to develop the organisation’s risk maturity to the next level of ‘Risk Managed’. Work is ongoing to improve the alignment of risk information with the wider corporate strategies and performance reporting scorecards to enable Corporate Directors to monitor risks within their areas more effectively and hold officers accountable for managing their risks. HILLINGDON COUNCIL RISK MANAGEMENT ANNUAL REPORT 2025/26 7 APPENDIX A: CORPORATE RISK REGISTER CRR Risk: 2024/25 Q4 2025/26 Q1 2025/26 Q2 2025/26 Q3 2025/26 Q4 Reviewed Date EDUSEN0004 - Uncertainty over the Safety Valve Agreement and impact if it is not held by DfE Static B1 22/04/2025 PLANRE0010 - Delivery of Carbon Neutrality by 2030 Static C2 23/04/2025 PLANRE0015 - Unable to spend S106 funding on time Static D1 03/04/2025 TECH0001 - Cyber Security Decrease D1 Static D1 24/12/2025 PENS0015 - Failure of employers to deliver accurate and timely employee administration information Static A3 Static A3 04/08/2025 HOUMAN0024 - Current RSH inspection notice - Reputational risk of failing against the standards required. New C2 Static C2 23/07/2025 CHILSC0012 - Increasing cost of external residential provision and reduce internal resilience Static C2 Static C2 Static C2 01/12/2025 PLANRE0008 - Planning, Building Control and Land Charges System (Ocella) unsupported and unfunded from Jan 2027 Static A2 Static A2 Decrease C2 24/11/2025 LANDB0022 - Complaint reporting and management New C2 Static C2 Static C2 01/12/2025 FINMAN0007 - Insufficient capacity to meet support demand Static C2 Static C2 Static C2 Static C2 15/01/2026 LANDB0004 - Decent Homes/ Thermal efficiencies Static B1 Static B1 Static B1 Static B1 16/01/2026 LANDB0011 - Housing Landlord Service - Not Meeting Regulatory Requirements Static A2 Static A2 Static A2 Static A2 13/01/2026 PROCUR0025 - Financial Resilience of Contracts Static C2 Static C2 Static C2 Static C2 Static C2 31/03/2026 STRAF0002 - Ability to Deliver a Balanced Budget in the Short & Medium Term Static A1 Static A1 Static A1 Static A1 Static A1 05/01/2026 LANDB0003 - Decarbonisation Static C2 Static C2 Static C2 Static C2 Static C2 19/03/2026 TRSA0005 - Liquidity Risk Static D1 Static D1 Static D1 Increase C1 Static C1 30/03/2026 HOUSNE0001 - High Levels of Homelessness Demand Static C2 Static C2 Static C2 Static C2 Static C2 31/03/2026 LANDB0019 - Lone-working devices - no visiting officers within housing have lone working devices. Static B2 Static B2 Static B2 Static B2 Static B2 26/03/2026 PROPER0001 - Disposal Programme Static D1 Static D1 Static D1 Static D1 Static D1 19/03/2026 HILLINGDON COUNCIL RISK MANAGEMENT ANNUAL REPORT 2025/26 8 PROPER0011 - Insurance Valuations Static A1 Static A1 Static A1 Static A1 Static A1 31/03/2026 PENS0011 - Failure of the pool in management of funds / access to funds New D1 Static D1 Static D1 Static D1 Static D1 26/03/2026 LANDB0021 - Compliance IT systems and reliance on spreadsheets New C2 Static C2 Static C2 Static C2 Static C2 19/03/2026 ASSETS0018 - Upcoming Regulatory Compliance and Enhanced Operational Efficiency New C2 Static C2 Static C2 Static C2 Static C2 09/03/2026 BUSTRA0002 – The transformation programme is required to deliver significant savings in order for the Council to achieve a balanced budget. New C2 Static C2 Static C2 Static C2 Static C2 22/01/2026 LANDB0025 – There is concern in all areas of the service with Data Quality and Performance analysis New B2 Static B2 Static B2 Static B2 Static B2 26/03/2026 LANDB0026 – - Rent increasing because of operating model and structure of the line management. New B2 Static B2 Static B2 Static B2 Static B2 26/03/2026 HOUSNE0014 – Static or increased demand for TA New C1 Static C1 Static C1 27/01/2026 HOUSNE0018 – Overwhelmed by NASS evictions New B2 Static B2 Static B2 27/01/2026 HOUSNE0024 – Lack of TA supply within capped rates New C2 Static C2 Static C2 27/01/2026 HOUSNE0025 – Do not deliver service plan target New C2 Static C2 Static C2 27/01/2026 RESIDE0001 – Contractor Failure New B2 Static B2 Static B2 07/01/2026 GREENS0029 – Tree strategy compliance New B2 Static B2 Static B2 25/03/2026 GREENS0031 – Tree strategy compliance for inspections, rectification work and management. New C2 Static C2 26/03/2026 PLANRE0006 – Heathrow Airport expansion Increase D1 Static D1 02/02/2026 PUBPRO0010 – Staff Recruitment New C2 Static C2 30/03/2026 FLEET0002 – Fuel costs and availability New A3 25/03/2026 HOUSNE0034 – Temporary Accommodation Management System New C2 09/03/2026 HOUSNE0035 – Inability to meet current need or service improvements New B2 09/03/2026 HOUSNE0036 – Disrepair, damp and mould and compliance New B2 09/03/2026 TRSA0008 – Building back audit opinions New A3 30/03/2026 HESAFE0004 – Inadequate resource for H&S advice Increase C2 19/01/2026 REV0022 – Council Tax Collection Increase C2 31/03/2026 HILLINGDON COUNCIL RISK MANAGEMENT ANNUAL REPORT 2025/26 9 APPENDIX B: RISK SCORING METHODOLOGY

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

19. Internal Audit Annual Report 2025/26 PDF 41 KB
The Committee received the Internal Audit Annual Report 2025/26 and was advised that, despite staffing vacancies, the audit plan had been successfully delivered, with 40 audits and reviews completed during the year. Most reviews received substantial or reasonable assurance. However, a limited assurance opinion was issued for the Council's overall governance, risk management and control framework, and a no assurance opinion was issued for the Green Spaces review. Members heard that improvements had been made to budget monitoring, performance reporting, risk management and governance arrangements, with further work planned to embed these changes across the organisation. During discussion, Members sought assurance on audit capacity and the delivery of savings programmes. It was confirmed that recruitment was underway to strengthen the team and that available resources would continue to focus on the Council's highest risk areas. The delivery of savings would also continue to be monitored through established governance and reporting arrangements. The Committee was advised that a more robust budget-setting process had been introduced for 2026/27 and that arrangements were in place to identify and manage emerging risks. It was noted that Internal Audit continued to play an important role in supporting wider governance and financial improvements, with further Member training planned to enhance understanding of audit reporting. In relation to the Green Spaces review, Members were advised that management changes had been made and that improvements to governance, performance monitoring and budget oversight had already been implemented in response to the findings. RESOLVED: That the Committee noted the Internal Audit Annual Report for 2025/26 and the work undertaken by Internal Audit during the period.
📄 Internal Audit Annual Report 2025/26 PDF 41 KB
Read the text of this document (1 page)
Classification: Public Audit, Finance & Performance Committee 15 July 2026 INTERNAL AUDIT ANNUAL REPORT 2025/26 Committee name Audit, Finance & Performance Committee Officer reporting Claire Baker, Head of Internal Audit Papers with report Internal Audit Annual Report for 2025/26 Ward All HEADLINES The Global Internal Audit Standards and CIPFA UK Public Sector Application Note requires the Head of Internal Audit to deliver an Annual Internal Audit Report and Opinion Statement, which can be used by the Council to inform the Annual Governance Statement. This annual report and opinion statement summarises the work performed by Internal Audit during 2025/26 and the key findings from their reviews. RECOMMENDATIONS That the Committee: 1. Notes the Internal Audit Annual Report for 2025/26 and the work undertaken by Internal Audit during the period. SUPPORTING INFORMATION NIL BACKGROUND PAPERS NIL

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 Internal Audit Annual Report for 2025-26 , item 19. PDF 558 KB
Read the text of this document (12 pages)
INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 April 2026 HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 2. Contents The key contacts in connection with this document are: Claire Baker Head of Internal Audit cbaker@hillingdon.gov.uk Page 1. INTRODUCTION 3 2. SUMMARY OF 2025/26 INTERNAL AUDIT WORK 3 3. HEAD OF INTERNAL AUDIT OPINION 5 4. REVIEW OF INTERNAL AUDIT PERFORMANCE 6 APPENDIX A - DETAILED INTERNAL AUDIT ACTIVITY 8 APPENDIX B - CHANGES TO THE IA PLAN 11 APPENDIX C - INTERNAL AUDIT DEFINITIONS 12 HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 3. 1. INTRODUCTION 1.1 Internal Audit (IA) provides an independent assurance and advisory service focusing on risk management, internal control, and governance processes. It is a requirement of the Local Government Accounts and Audit Regulations 2015 that the Authority undertakes an effective IA, taking into account public sector standards or guidance. 1.2 The IA service must adhere to the Global Internal Audit Standards (GIAS) and the UK Public Sector Application Note. The H ead of Internal Audit reports separately to the Audit Committee regarding the conformance with the Standards. 1.3 This annual report summarises the main findings arising from the 2025/26 IA work and the annual Head of Internal Audit (HIA) opinion. 2. SUMMARY OF 2025/26 INTERNAL AUDIT WORK 2.1 In total 40 pieces of IA work were delivered as part of the 2025/26 IA plan. This includes 24 assurance reviews, 11 advisory reviews and 5 grant claim audits. This is a slight reduction from the level of review s completed in the prior year due a 26% reduction in the team (1.8FTE) and increased focus on some larger advisory reviews. FIGURE 1: IA WORK COMPLETED BY REVIEW TYPE 2.2 Four reports are currently being finalised. These will be reflected in the ongoing 2026/27 IA workplan. Any significant findings from these reviews have been taken into consideration as part of the Annual HIA Opinion reported below. 2.3 Of the 24 assurance reviews completed in the year, 60% resulted in a SUBSTANTIAL or REASONABLE assurance opinion. This is an improvement from 52% in 2024/25. Overall, 36% of the assurance reviews resulted in LIMITED opinions and there was one NO assurance review. Definitions of the IA assurance levels are included at Appendix C. 16 27 33 29 24 7 2 7 10 11 6 10 7 7 5 0 5 10 15 20 25 30 35 40 45 50 2021/22 2022/23 2023/24 2024/25 2025/26 Assurance Advisory Grant Claim HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 4. FIGURE 2 IA ASSURANCE RATINGS AS A PERCENTAGE OF ASSURANCE REVIEWS COMPLETED 2.4 Within the 24 IA assurance reviews completed in 2025/26, we raised 75 IA assurance recommendations in total. This is a significant decrease compared to prior years due to the reduction in ‘no’ and ‘limited’ assurance reports and the ongoing trend to consolidate findings by focusing on the root cause of each issue. FIGURE 3 IA ASSURANCE RECOMMENDATIONS BY SIGNIFICANCE RATING 2.5 The individual assurance reviews carried out during 2025/26 are listed in Appendix A, including the assurance levels achieved and the number of findings raised. 2.6 Five planned advisory reviews and six ad-hoc advisory reviews were also completed during the year, and seven grant claim audits. These are also detailed in Appendix A. Ad-hoc advisory work includes providing supportive advice and guidance to services across the Council, enhancing the role of IA in helping Council services improve as part of a collaborative approach. 2.7 The IA team was reduced to five full time officers at the beginning of the year. One Assistant Manager and one Internal Auditor left the organisation, and one Internal Auditor went on maternity leave. We were able to replace one Internal Auditor post with a new Trainee Internal Auditor . However we were unable to recruit to the Assistant Manager role as planned, which significantly impacted on the capacity in the team. HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 5. 3. HEAD OF INTERNAL AUDIT OPINION STATEMENT 2025/26 3.1 The r ole of the IA service is to provide the Audit Committee and Corporate Management Team (CMT) with an independent assessment of the effectiveness of the internal control , risk management and governance arrangements to ensure the Council’s objectives are achieved. This opinion statement is also a source of assurance for the Chief Executive and Leader of the Council in completing the Annual Governance Statement ( AGS), which forms part of the statutory Statement of Accounts. 3.2 During 2025/26 the IA service had unrestricted access across the council, received reasonable co-operation from officers, and had sufficient resources to enable it to provide adequate coverage of the council’s control environment. Therefore, there are no qualifications to the 2025/26 HIA opinion statement. Our approach also complies with the Global Internal Audit Standards and CIPFA UK Public Sector Application Note. 3.3 Our IA work during 2025/26 was carried out in accordance with the IA work plan approved by the Audit Committee . The overarching opinion in this report takes into consideration the areas and risks reviewed by IA in the year , as well as the wider control environment and other sources of assurance received during the year. 3.4 Following a challenging year in 2024/25, the HIA has seen clear steps towards strengthening internal controls, risk management and governance arrangements across the council during 2025/26. In particular, there has been improved access and accuracy of performance information and more consistent reporting in relation to key risks and budget information. Overall, 40% of the IA reports completed in 2025/26 were given Reasonable assurance and 20% were Substantial assurance. However, 36% were given a Limited assurance opinion and one was given No Assurance. 3.5 The Corporate Governance Group met monthly throughout 2025/26 to monitor the actions to improve governance outlined in the Governance Review Improvement Plan. The plan covers three core workstreams: financial governance, directorate governance and constitutional governance. The group have recorded good progress against the plan and reported to the Audit Committee quarterly. However, it is an ongoing process to embed the new governance processes in all service areas and IA will be undertaking assurance reviews in 2026/27 to ensure key areas of the new arrangements are operating effectively in practice. 3.6 Budget monitoring has been a key area of focus during 2025/26 , and the council is not unique in facing financial challenges, with a number of other Local Authorities also seeking additional financial support for 2026/27. At the time of this report t here is a forecasted £36m overspend against the agreed budget for 2025/26, with £21m due to service pressures in children’s services (£6.1m), adult social care (£6.5m) and Housing (£8.3m). These pressures were reported from early in the year and the IA Savings Programme review noted many planned savings were marked as unlikely to be achieved within the first quarter without additional alternative savings identified . New savings monitoring and budget oversight arrangements developed during 2025/26 have helped to ensure the forecast remained consistent throughout the second half of the year, however further work is required to improve the effectiveness of these arrangements and identify further savings going forward. 3.7 Additional spend controls were introduced towards the end of the year to strengthen the financial oversight of non -statutory expenditure over £500. Initial testing at the year-end showed that officers were complying with the spend control procedures and expenditure was being reduced when compared to previous years. New budget HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 6. setting processes , including more scrutiny of proposed savings, were also implemented for the 2026/27 budget however it was too early to assess the effectiveness of these changes at the time of this report. This will be reviewed as part of the 2026/27 Budget Monitoring and Savings Monitoring reviews. 3.8 There is still significant work to be done to improve financial governance, including the re-launch of the Oracle system and the wider Finance Modernisation Programme to embed financial management into day-to-day practice within the services. The Budget Delivery advisory review undertaken in stages throughout 2025/26 confirmed awareness and accountability of budgets at a budget manager level improved throughout the year. However, there was still significant reliance on finance business partners to set forecasts , and concerns about access to the correct budget information. The ongoing issues with the Oracle system have impacted on budget managers’ confidence in the system, with some reverting to excel monitoring arrangements outside the system as noted in the Highways and Greenspaces reviews. 3.9 During 2025/26 t here has also been a move toward more collaboration between directorates and a number of cross-cutting projects initiated. This includes the debt project and greater collaboration between Housing and Social Care as noted in the Housing and Social Care Collaboration report. Internal Audit has undertaken several advisory reviews to support some of these cross-cutting projects, including the debt discovery work and corporate policies and procedures discovery work. 3.10 The HIA also takes into consideration the action taken to address recommendations raised in previous years. In particular, the detailed follow up review in relation to HRA and B&B Arrears identified significant progress had been made to address the previous recommendations raised in the Limited and No assurance reports completed in 2024/25 . Overall Reasonable Assurance was given in relation to the actions taken. 3.11 Based on the IA findings raised in 2025/26, one key area of improvement for 2026/27 is the development of oversight arrangements for cross-cutting controls to ensure consistency across the organisation. This includes implementing central registers for corporate policies, assets and grants, and ensuring there is regular formal oversight of strategic priorities. Following the election in May 2026 , a review of the strategic priorities should also be undertaken and formalised into clear corporate, directorate and service plans, and aligned to a documented assurance framework. 3.12 Overall, the HIA is required to provide an assurance rating for the year. This takes into consideration the work undertaken to improve internal controls and governance arrangements however it must also reflect this is an area of continuous improvement and many of these actions are still evolving and not yet fully embedded. Although the HIA has concluded a Limited assurance opinion for 2025/26 they are optimistic we will see further improvements , and a reasonable assurance opinion is achievable if the current positive momentum is maintained. Compliance with the new governance arrangements will be tested as part of the 2026/27 Internal Audit plan. 4. INTERNAL AUDIT PERFORMANCE 2025/26 4.1 The IA team was reduced from seven to five officers at the beginning of the year. One reduction was expected and taken into consideration when the workplan was set for the year . However, we were unable to recruit to the Assistant Manager role as planned, which significantly impacted on the capacity in the team. In total 871 IA days were undertaken against a plan of 927 days (915 days in 2024/25). HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 7. 4.2 IA Key Performance Indicators (KPIs) measure the quality, efficiency and effectiveness of the IA service . Performance against the IA KPIs is reported to the Audit Committee quarterly through the IA Progress Report. At the year-end IA fully achieved all six of the agreed KPIs in relation to the IA work. 4.3 Two further KPIs relating to management engagement with IA were partially met. The IA team has limited control over th ese KPIs, however they are used to indicate the level of engagement from other services and monitor the final outcome s of the IA work. As part of the Quality Improvement Action plan (QIAP) for 2026/27 the team are developing more automated solutions for engaging with services to improve these KPIs going forward. These include developing performance dashboard s to allow Corporate Directors to proactively monitor IA work and recommended actions within their areas. 4.4 Finally, the new Global Internal Audit Standards became mandatory in the UK Public Sector from the beginning of 2025/26. The IA undertook a self-assessment against the standards during the year and found the Council was generally complying with the requirements. This review also included the UK Public Sector Application Note and the Code of Practice on the Governance of Internal Audit. Any areas of improvement have been included in the QIAP and will be taken forward throughout 2026/27 to ensure ongoing compliance with the Standards. HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT Key: IA = Internal Audit H = High Risk M = Medium Risk L = Low Risk O = Observation 2025/26 8. APPENDIX A: DETAILED INTERNAL AUDIT ACTIVITY PLANNED ASSURANCE & ADVISORY REVIEWS IA Ref. IA Review Area Date Final Report was Issued Assurance Level Management Actions H M L O P2 Capital Programme Final Report Issued 19 May 2025 REASONABLE - 7 - - S8 PEEPs in Highrise Buildings Final Report Issued 18 June 2025 LIMITED - 3 - - A01 Commissioned & Direct Payments Final Report Issued 13 June 2025 ADVISORY - - - - C1 DSG (Safety Valve Plan (Part 2)) Final Report Issued 19 June 2025 SUBSTANTIAL - 1 - - H2 Housing H&S requirements Final Report Issued 3 June 2025 SUBSTANTIAL - - 1 - H1 Data Quality H&C Final Report Issued 21 August 2025 REASONABLE 1 1 - - H1 Community Safety Final Report Issued 21 August 2025 LIMITED - 2 1 - S1 Agency Expenditure & Checks Final Report Issued 17 September 2025 REASONABLE - 3 - - P3 Greenspaces Final Report Issued 22 October 2025 NO 1 6 - - C1 School’s pre-employment checks Final Report Issued 23 October 2025 REASONABLE - 2 1 - P2 Corporate Estate Final Report Issued 24 October 2025 LIMITED 1 2 1 - P5 Highways Final Report Issued 4 November 2025 LIMITED 1 2 - - X1 Documentation Security Final Report Issued 16 December 2025 LIMITED - 4 1 - X1 Directorate Business and Financial Plans Final Report Issued 28 November 2025 REASONABLE - 3 - - X2 Savings Programme Final Report Issued 1 December 2025 REASONABLE / LIMITED 1 3 - - F3 Income Generation: Business rates Final Report Issued 16 December 2025 SUBSTANTIAL - - 2 - X4 Corporate Policies and Procedures Final Report Issued 16 January 2026 ADVISORY - - - - X8 Debt Discovery Work Final Report Issued 27 January 2026 ADVISORY - - - - HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT Key: IA = Internal Audit H = High Risk M = Medium Risk L = Low Risk O = Observation 2025/26 9. IA Ref. IA Review Area Date Final Report was Issued Assurance Level Management Actions H M L O C6 Health and Safety in Schools Final Report Issued 09 March 2026 LIMITED - 2 1 - C4 Housing and Social Care Collaboration Final Report Issued 11 March 2026 REASONABLE 1 1 - - H3 Temporary Accommodation Action Plan Final Report Issued 17 March 2026 REASONABLE - 2 - - X3 Budget Delivery Final Report Issued 20 March 2026 ADVISORY - - - - F2 Income Generation Final Report Issued 20 March 2026 ADVISORY - - - - S3 Emergency Planning Final Report Issued 14 April 2026 REASONABLE - 3 - - H9 Awaab’s Law Implementation Final Report Issued 07 May 2026 LIMITED 1 3 - - H7 Housing Allocations Final Report Issued 07 May 2026 LIMITED 1 2 1 - H4 B&B & HRA Arrears Final Report Issued 08 May 2026 REASONABLE 1 - - - C3 Multiagency working Final Report Issued 08 May 2026 SUBSTANTIAL - - 1 - F5 Procurement Final Report Issued 18 May 2026 SUBSTANTIAL - 1 1 1 Total Number of IA Recommendations Raised 9 53 11 2 HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT Key: IA = Internal Audit H = High Risk M = Medium Risk L = Low Risk O = Observation 2025/26 10. IA AD-HOC CONSULTANCY & GRANT CLAIM VERIFICATION REVIEWS IA Ref. IA Review Area Current Status Z01 Grievance Investigation Completed Z02 Internal Review with Counter Fraud Completed Z03 Adult Mental Health Service Completed Z04 Debt Project Completed Z05 Environment Support Completed Z06 P-Card Review Completed G01 Housing Return Completed G02 Housing Benefit Grant Claim Delayed to 2026/27 G03 Bus Service Operators Grant Completed G04 Mayors Charity Account Completed G05 Trading Standards Grant Verification Completed G06 Disability Facilities Grant Claim Completed HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 11. APPENDIX B: IN YEAR CHANGES TO THE INTERNAL AUDIT PLAN Internal Audit is most effective when it adapts to emerging risks and other sources of assurance received to avoid duplication. The IA team maintain an audit monitoring spreadsheet which is used to track all audit reviews, including new areas added in year , and identify any areas that can be postponed where capacity is needed for higher risk areas. The original Internal Audit plan presented to the Audit Committee in January 2025 included 3 5 planned audits. Of these, 18 reviews were removed from the plan during the year (listed below) and 12 audits were added . This resulted in 29 planned reviews completed in the year , as listed in Appendix A. Ref. IA Review Removed Reason for the Change S4 HR information This review was delayed until 2026/27 due to ongoing changes and limited capacity in the service. A new Head of HR was appointed at the end of the year and this will be taken forward in 2026/27. C2 Data Quality CSC These reviews were originally included in the plan to support the development of new performance dashboards and to provide assurance in relation to the accuracy of the data included. They were removed from the plan as a separate review was undertaken by the Business Intelligence team and it was felt Internal Audit would be duplicating their work. S6 Data Quality Corporate Services P4 Data Quality Place A2 Data Quality C5 ContrOCC H6 Anti-Social Behaviour This was replaced by a review of Awaabs Law as it was considered a higher priority at the time. H5 Tenant Engagement This was removed following the Housing Regulator’s inspection as the feedback was positive and the areas of improvement had already been identified and were being addressed following the inspection. P6 Planning These reviews were removed at the planning stage as alternative reviews had been undertaken and actions had already been implemented to address the concerns raised when the IA plan was originally developed. They were replaced by higher priority areas including, Community Safety, Housing Allocations and the Debt Discovery work. A1 Social Care Charges S7 Integrated front door P1 Project Management Civic centre project P7 HRA Acquisitions S5 Gifts, Hospitality & Conflicts of interest These reviews were removed following discussion at the Corporate Governance Group as there were other external reviews providing assurance in these areas. It was felt Internal Audit would be duplicating their work. F1 Project Management - Oracle Project S2 Cabinet Engagement X6 Contract Management At the planning stage this review was replaced with a more specific review of Procurement rather than the onwards contract management. X5 Transformation and Change Governance This review was replaced with the Savings Programme review as many of the transformation projects related to planned savings. Further work in relation to project management will be included in the 2026/27 plan. HILLINGDON COUNCIL INTERNAL AUDIT ANNUAL REPORT & OPINION STATEMENT 2025/26 12. APPENDIX C: INTERNAL AUDIT DEFINITIONS ASSURANCE LEVEL DEFINITION SUBSTANTIAL There is a good level of assurance over the management of the key risks to the Council objectives. The control environment is robust with no major weaknesses in design or operation. There is positive assurance that objectives will be achieved. REASONABLE There is a reasonable level of assurance over the management of the key risks to the Council objectives. The control environment needs some improvement in either design or operation. There is a misalignment of the level of residual risk to the objectives and the designated risk appetite. There remains some risk that objectives will not be achieved. LIMITED There is a limited level of assurance over the management of the key risks to the Council objectives. The control environment has significant weaknesses in either design and/or operation. The level of residual risk to the objectives is not aligned to the relevant risk appetite. There is a significant risk that objectives will not be achieved. NO There is no assurance to be derived from the management of key risks to the Council objectives. There is an absence of several key elements of the control environment in design and/or operation. There are extensive improvements to be made. There is a substantial variance betwe en the risk appetite and the residual risk to objectives. There is a high risk that objectives will not be achieved. RISK DEFINITION HIGH The recommendation relates to a significant threat or opportunity that impacts the Council’s corporate objectives. The action required is to mitigate a substantial risk to the Council. In particular it has an impact on the Council’s reputation, statutory compliance, finances or key corporate objectives. The risk requires senior management attention. MEDIUM The recommendation relates to a potentially significant threat or opportunity that impacts on either corporate or operational objectives. The action required is to mitigate a moderate level of risk to the Council. In particular an adverse impact on the Department’s reputation, adherence to Council policy, the departm ental budget or service plan objectives. The risk requires management attention. LOW The recommendation relates to a minor threat or opportunity that impacts on operational objectives. The action required is to mitigate a minor risk to the Council as a whole. This may be compliance with best practice or minimal impacts on the Service's reputation, adherence to local procedures, local budget or Section objectives. The risk may be tolerable in the medium term. OBSERVATION This includes any items Internal Audit would like to highlight that may not directly relate to a finding. This includes notable performance and innovative controls that should be shared with others, potential concerns raised during the audit that are outside the scope of the review and will be considered separately, and any areas of improvement that had already been addressed by management at the time of the review.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

20. Audit Committee Annual Report 2025/26 (to Full Council on 17 September PDF 42 KB
The Committee reviewed the draft Annual Report and suggested a number of amendments. It was noted that delays in the preparation of the Council’s accounts had arisen from both local and national factors and Members requested that the report be amended to reflect this more accurately. Members also noted that greater reference should be made to the Committee’s governance responsibilities, including oversight of the Council’s constitutional arrangements, financial regulations and whistleblowing policy. It was agreed that the proposed amendments would be shared with officers and incorporated into the final report. Subject to those changes, the report was approved. RESOLVED: That authority be delegated to Democratic Services in consultation with the Chair to agree the final wording of the amendments and, subject to this, the report be approved.
📄 Audit Committee Annual Report 2025/26 (to Full Council on 17 September PDF 42 KB
Read the text of this document (1 page)
Classification: Public Audit, Finance & Performance Committee 15 July 2026 AUDIT COMMITTEE ANNUAL REPORT 2025/26 Committee name Audit, Finance & Performance Committee Officer reporting Claire Baker, Head of Internal Audit Papers with report Draft Audit Committee Annual Report for 2025/26 Ward All HEADLINES This draft report summarises the work of the previous Audit Committee during 2025/26 and how the Committee met their responsibilities for reviewing the key areas within its remit. In line with good governance, the Audit, Finance and Performance Committee should ensure that the wider Council is aware of the work completed by the Committee on its behalf. This draft report is proposed to be presented to Council in September so that it can be assured that the Audit Committee was acting appropriately on its behalf during 2025/26. Due to the recent changes to the Committee this report has also been shared with previous Audit Committee members for comments in advance of this meeting. RECOMMENDATIONS That the Committee: 1. Reviews and Approves the Draft Audit Committee Annual Report for 2025/26 before the report is presented to Council. SUPPORTING INFORMATION NIL BACKGROUND PAPERS NIL

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 Draft Audit Committee Annual Report for 2025-26 , item 20. PDF 356 KB
Read the text of this document (6 pages)
ANNUAL REPORT OF THE AUDIT COMMITTEE 2025/26 HILLINGDON COUNCIL AUDIT COMMITTEE ANNUAL REPORT 2025/26 2. 1. INTRODUCTION 1.1 In line with best practice guidance, the Audit Committee is required to submit an annual report to Council outlining the Committee’s activities over the previous year. This report summarises the work of the Audit Committee during 2025/26 and how it has undertaken its responsibilities for reviewing the key areas within its remit. Specifically, these include: • Internal Audit • External Audit • Counter Fraud • Risk Management • Financial reporting process of the Statement of Accounts. 1.2 In compliance with the Accounts and Audit Regulations 2015, the Audit Committee has reviewed the effectiveness of the systems of internal control , by receiving regular reports from these areas above that contribute to the control framework. This report provides an opportunity for Council Members to review the work of the Audit Committee and comment on its contribution and performance. 2. Key Activities of the Audit Committee 2.1 The Terms of Reference (ToR) of the Committee are attached at Appendix A. 2.2 During the 2025/26 municipal year, the Audit Committee met on five occasions: 14 May 2025, 24 July 2025, 28 August 2025, 18 November 2025 and 10 February 2026. 2.3 Membership and attendance of the Audit Committee comprised as follows: Member name Appointment Meeting Attendance Mr John Chesshire Chair 24 July, 28 August, and 10 February Cllr Nick Denys Vice-Chair 14 May, 24 July, 28 August, 18 November and 10 February Cllr Tony Burles Committee Member 14 May, 24 July, 28 August, 18 November and 10 February Cllr Henry Higgins Committee Member 14 May, 24 July, 28 August and 18 November Cllr June Nelson Committee Member 14 May, 24 July and 28 August Cllr Douglas Mills Committee Member 14 May, 28 August, 18 November ad 10 February Cllr Sital Punja Reserve Member 10 February 2.4 The Audit Committee received no dedicated training sessions during 202 5/26. Two training sessions were arranged but cancelled as members were not available to attend. Given membership stability during this period this was not considered a significant risk, and training had been provided shortly before the beginning of the year. 2.5 The role delegated by the Council to the Audit Committee is to provide independent assurance over the governance, risk management and the system of internal control in operation at the Council. The Audit Committee has fulfilled this role by undertaking the following key activities: HILLINGDON COUNCIL AUDIT COMMITTEE ANNUAL REPORT 2025/26 3. a) Oversight of Internal Audit • The Audit Committee oversaw the activity of the Council’s Internal Audit service to assist it in its role of monitoring the internal control, risk management and governance arrangements of the Council's operations. • During 2025/26, the Audit Committee reviewed the 2024/25 Annual Internal Audit Report and Head of Internal Audit Opinion Statement, the 2026/27 Annual Internal Audit Plan, and quarterly progress reports and operational plans. • The Audit Committee met privately with the Head of Internal Audit in line with best practice. • The Audit Committee sought assurances from the Head of Internal Audit over plan delivery, coverage, and overall performance in respect of key performance indicator results. • The Audit Committee sought explanations from the Head of Internal Audit about the recommendations emanating from ‘Limited’ or ‘No’ assurance audits and monitored the ongoing implementation of actions through the follow up process. • Finally, the Audit Committee also monitored the actions taken by the Internal Audit service to ensure compliance with the Global Internal Audit Standards. The Audit Committee is satisfied that Internal Audit is effective and adds value to the Council through the professional planning and delivery of its risk-based, independent and objective assurance and advisory services. b) Oversight of External Audit • The Audit Committee has reviewed the activity of the Council’s External Auditors (Ernst & Young) to assist it in its role of monitoring the internal control and financial governance arrangements of the Council's operations. The Audit Committee has received and considered the external audit plan, progress updates and reviewed External Audit performance. • The Audit Committee met privately with Ernst & Young in line with best practice. • During 2025/26 the Audit Committee reviewed the 2023/24 Statement of Accounts, Audit Completion Report, and Value for Money report. This had been delayed from the prior year due to the ongoing national delays, which are consistent with many other local authorities. • In February 202 6 the Audit Committee received the 202 4/25 Statement of Accounts, draft Audit Results report and the draft Pension Fund Accounts and Audit Results Report. These were finalised following the meeting. The Audit Committee is satisfied with the Council’s External Audit arrangements during 2025/26 and the clarity, depth and approach taken by External Audit. c) Prevention and Detection of Fraud and Corruption • The Council operates a zero-tolerance policy towards all fraud and corruption. The Counter Fraud Team (CFT) conducts proactive and reactive counter fraud activity to highlight fraud, loss and error. This minimises the Council’s exposure to fraud and maximises its preventative savings. • The Audit Committee has received quarterly progress reports from the CFT, a n Annual Report for 2024/25, and a detailed 2026/27 Annual Operational Plan. The team has responsibility for the oversight of the effectiveness of the Council’s policies and procedures to prevent and detect fraud and corruption. HILLINGDON COUNCIL AUDIT COMMITTEE ANNUAL REPORT 2025/26 4. • The Audit Committee sought assurances from the Head of Counter Fraud over the focus and prioritisation of counter fraud activity, together with the team’s overall performance in respect of key performance indicator results. • In 2025/26, the CFT achieved several successful outcomes, including a total of c£12.7m in financial benefits across Council services. These savings included loss prevention savings of c£7.9 and the recovery of 1 13 council properties due to tenancy fraud, an increase on the previous year’s outcomes. The Audit Committee is satisfied with the effectiveness of the Council’s counter fraud arrangements during 2025/26 and are pleased to see the excellent results delivered once again by the Counter Fraud Team during this period. d) Risk Management • The Audit Committee received quarterly risk management reports, including Key Performance Indicators and a summary of the Corporate Risk Register as part of the Committee's role to independently assess the Council's risk management arrangements. • Previous concerns in relation to the high number of risks overdue for review and without actions have been addressed and there was good performance against the key performance indicators by the year end. • The Audit Committee also received a copy of the Council’s Strategic Risk Register and confirmed the strategic risks were being managed appropriately to help ensure the Council’s strategy is achieved. The Audit Committee is satisfied that the Risk Management arrangements enable it to provide sufficient challenge to officers around the ir identification and management of the Council’s key risks. e) Approval of Financial Accounts • Throughout 2025/26, the Audit Committee was provided with audit progress reports on the Council’s annual statement of accounts for 2024/25. This included considering whether appropriate accounting policies have been followed in relation to the accounts. The Audit Committee also reviewed the Council’s Annual Governance Statement as part of the draft and final accounts for 2023/24 and 2024/25. • Weaknesses identified by External Audit in relation to financial reporting, data quality and financial sustainability were highlighted by the Audit Committee and further assurance requested from officers to ensure appropriate actions were taken to address these. The Audit Committee is satisfied previous challenges with the production, reporting and ultimate approval of the financial accounts are being addressed, and appropriate work is being undertaken to improve controls, better manage financial risks and enhance the associated processes. 3. Conclusion 3.1. The Audit Committee considers that it has continued to make a n appropriate contribution to helping ensure that the key elements of the governance framework are given proper consideration and are appropriately challenged. HILLINGDON COUNCIL AUDIT COMMITTEE ANNUAL REPORT 2025/26 5. APPENDIX A: AUDIT COMMITTEE TERMS OF REFERENCE The Constitution defines the Terms of Reference for the Audit Committee as: The Audit Committee’s role is to: • Review and monitor the Council’s audit, governance, risk management framework and the associated control environment as an independent assurance mechanism; • Review and monitor the Council’s financial and non-financial performance to the extent that it affects the Council’s exposure to risk and/or weakens the control environment; • Oversee the financial reporting process of the Statement of Accounts. Decisions in respect of strategy, policy and service delivery or improvement are reserved to the Cabinet or delegated to Officers. Internal Audit 1) Review and approve (but not direct) the Internal Audit Strategy to ensure that it meets the Council's overall strategic direction. 2) Review, approve and monitor (but not direct) Internal Audit’s planned programmes of work, paying particular attention to whether there is sufficient and appropriate coverage. 3) Through quarterly Internal Audit summary reports of work done, monitor progress against the Internal Audit Plan and assess whether adequate skills and resources are available to provide an effective Internal Audit function. Monitor the main Internal Audit recommendations and consider whether management responses to the recommendations raised are appropriate with due regard to risk, materiality and coverage. 4) Make recommendations to the Leader of the Council and Cabinet Member for Finance on any changes to the Council’s Internal Audit Strategy and plans. 5) Review the Annual Report and Opinion Statement and the level of assurance this provides over the Council’s corporate governance arrangements, risk management framework and system of internal controls. 6) Consider reports dealing with the activity, management and performance of internal audit services. 7) Following a request to the Corporate Director of Finance and, subject to the approval of the Leader of the Council or Cabinet Member for Finance, to request work from Internal Audit. External Audit 8) Receive and consider the External Auditor’s annual letter, relevant reports and the report to those charged with governance. 9) Monitor management action in response to issues raised by External Audit. 10) Receive and consider specific reports as agreed with the External Auditor. 11) Comment on the scope and depth of External Audit work and ensure that it gives value for money, making any recommendations to the Corporate Director of Finance. HILLINGDON COUNCIL AUDIT COMMITTEE ANNUAL REPORT 2025/26 6. 12) Be consulted by the Corporate Director of Finance over the appointment of the Council’s External Auditor. 13) Following a request to the Corporate Director of Finance and, subject to the approval of the Leader of the Council or Cabinet Member for Finance, to commission work from External Audit. 14) Monitor arrangements for ensuring effective liaison between Internal Audit and External Audit, in consultation with the Corporate Director of Finance. Governance Framework 15) Maintain an overview of the Council’s Constitution in respect of contract procedure rules and financial regulations and where necessary, bring proposals to the Leader of the Council or the Cabinet for their development. 16) Review any issue referred to it by the Chief Executive, Corporate or Executive Director, any Council body or external assurance providers including inspection agencies. 17) Monitor and review (but not direct) the authority’s risk management arrangements, including regularly reviewing the corporate risk register and seeking assurances that appropriate action is being taken on managing risk. 18) Review and monitor Council strategy and policies on anti -fraud and anti -corruption including the ‘Raising Concerns at Work’ policy making any recommendations on changes to the Leader of the Council and relevant Corporate / Executive Director. 19) Oversee the production of the authority’s Annual Governance Statement and recommend its adoption. 20) Review the Council’s arrangements for corporate governance and make recommendations to the Corporate Director of Finance on suggested actions to improve alignment with best practice. 21) Where requested by the Leader of the Council, Cabinet Member for Finance or Corporate Director of Finance, provide recommendations on the Council’s compliance with its own and other published standards and controls. Accounts 22) Review and approve the annual statement of accounts. Specifically, to consider whether appropriate accounting policies have been followed and whether there are concerns arising from financial statements or from the external auditor that need to be brought to the attention of the Council. 23) Consider the external auditor’s report to those charged with governance on issues arising from the external audit of the accounts. Review and reporting 24) Undertake an annual independent review of the Audit Committee’s effectiveness and submit an annual report to Council on the activity of the Audit Committee.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

21. Risk Assurance Reports PDF 137 KB
The Committee received the Risk Assurance Report and was advised that 196 risks were recorded on the corporate risk register as at 1 July 2026, following a review of risks across the organisation. Resident Services continued to hold the highest number of risks and 16 risks were rated red. Members sought clarification on the reduction in recorded risks and were advised that most had been closed following review, with a small number removed as duplicates. It was noted that red risks were overseen by the Corporate Management Team, while other risks were managed within individual services and directorates. Members also discussed risk ownership and were advised that further work was underway to strengthen the review and management of risks. The Committee also considered the risk relating to Heathrow expansion and was advised that the focus remained on managing any potential impacts on the Borough and its services. It was further noted that variations in risk scores reflected both the likelihood of a risk occurring and the level of control available to mitigate it. RESOLVED: That the Committee noted the Risk Assurance report and considered the level of assurance received.
📄 Risk Assurance Reports PDF 137 KB
Read the text of this document (1 page)
Classification: Public Audit, Finance & Performance Committee 15 July 2026 RISK ASSURANCE REPORT JULY 2026 Committee name Audit, Finance & Performance Committee Officer reporting Claire Baker, Head of Risk Assurance Papers with report Risk Assurance Report (July 2026) Ward All HEADLINES The Risk Assurance Report presents to the Audit, Finance & Performance Committee with a summary of the Council’s risks from the Risk Management System at the 01 July 2026. The Risk Report focuses on key performance indicators to support the Committee gain assurance risks are being managed effectively across the Council and mitigating actions are being implemented. The report also includes a summary of the Council’s most significant red rated risks, also known as the Corporate Risk Register. RECOMMENDATIONS That the Committee: 1. Notes the Risk Assurance report and considers the level of assurance received SUPPORTING INFORMATION NIL BACKGROUND PAPERS NIL

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 Risk Assurance Report (July 2026) , item 21. PDF 538 KB
Read the text of this document (8 pages)
RISK ASSURANCE REPORT 01 July 2026 HILLINGDON COUNCIL RISK ASSURANCE REPORT 2 CONTENTS The key contacts in connection with this document are: Claire Baker Head of Internal Audit and Risk Assurance cbaker@hillingdon.gov.uk Page 1. INTRODUCTION 3 2. RISK REGISTER UPDATE 3 3. CORPORATE RISK REGISTER UPDATE 5 APPENDIX A: SUMMARY OF CORPORATE RISK REGISTER 7 APPENDIX B: RISK SCORING METHODOLOGY 8 HILLINGDON COUNCIL RISK ASSURANCE REPORT 3 1. INTRODUCTION 1.1 Hillingdon Council has a statutory responsibility to ensure arrangements are in place for managing risks. Risk management is about managing opportunities and threats to objectives to help create an environment of “no surprises”. It is a crucial element of good management and a key part of corporate governance. Although r isks can never be entirely eliminated , proportionate and targeted action can be taken to reduce risks to an acceptable level. 1.2 Managing risk should be viewed as a mainstream activity and something that is an integral part of everyday management. Risk Management involves the early identification of risks, assessing their potential consequences, and determining the most effective way to reduce the likelihood and/or impact of the risk. The Council’s Risk Management P olicy provides a framework to ensure there are clear roles, responsibilities and methodologies for identifying, recording and managing risks. 1.3 This report summarises the Council’s Risk Register as at the date on the front of the report, and outlines the work undertaken since the last Audit, Finance and Performance Committee meeting to improve risk management arrangements. It is designed to support the Committee to monitor and review the authority’s risk management arrangements, as per the Committee’s terms of reference. 2. RISK REGISTER UPDATE 2.1 There were 196 total risks recorded on the Risk Management System at the time of this report. This is a reduction from 222 risks at the beginning of the year: 2.2 There are two risks reported without a Directorate, these have been added at a corporate level as they are cross cutting and relate to the Civic Centre and staff sickness absence due to mental heath and work related stress. 2.3 There were 16 red rated risks on the risk regis ter. This is a significant decrease from 26 at the end of 2025/26 following a thorough review by the Corporate Management Team . Since the last Risk As surance Report was presented to the Audit, Finance and Performance Committee four red risks were closed, nine red risks were downgraded to amber or green and removed from the corporate risk register, and three were added to the register . The details of the red rated risks are shown on the corporate risk register in section three. 2.4 There were three unscored risks at the time of this report. One was a new risk recently added to the register however one was added in March 2026 and one was added in May 2026. This is still a low number of unscored risks and therefore a positive indication officers are comfortable scoring risks in line with the Council’s Risk Scoring Methodology (see Appendix B) to ensure they are escalated and monitored appropriately. HILLINGDON COUNCIL RISK ASSURANCE REPORT 4 2.5 At the time of this report there were 25 risks overdue for review, this is an increase from ten risks at the beginning of the year but a positive decrease from 41 risks in November 2025. 2.6 There was one red rated risk overdue for review at the time of this report . Details of the red risks are highlighted in the corporate risk register in section three. 2.7 In the last two months there were six new risks added to the risk register: 2.8 In the last two months there were 21 risks closed and removed from the risk register. This includes one red rated risk relating to decarbonisation which was closed following the Council’s investment programme for green homes , as there are s eparate risks in place for this programme. HILLINGDON COUNCIL RISK ASSURANCE REPORT 5 2.9 All risks added to the Risk Management System should have actions allocated to reduce the likelihood or impact of the risk. If a risk does not have actions in place to reduce the risk score it should be considered whether the current risk score is within the Council’s risk appetite level and therefore it is appropriate to tolerate the risk. 2.10 As at the time of this report there were 22 risks without actions on the risk management system. This is 11% of all risks and consistent with 24 risks at the end of 2025/26. This includes no red rated risks. 2.11 In total there were 233 actions allocated against risks on the system. Of these 34 actions were overdue for review at the time of this report (15%). This is an increase from 3% overdue at the end of 2025/26 and includes two actions linked to red rated risks relating to Inadequate health and safety resources and fuel price volatility within Adult Social Care. 3. CORPORATE RISK REGISTER UPDATE 3.1 The Council’s Corporate Risk Register (CRR) is an essential part of the Council’s Risk Management arrangements. The CRR includes any operational risks from the Risk Management System graded 'red' due to their potential likelihood and impact. These risks are then monitored by the Corporate Management Team and used to inform the Strategic Risks presented to the Audit , Finance and Performance Committee through the Strategic Risk Report. The Corporate Risk Register is outlined in Appendix A. 3.2 The Corporate Management Team is responsible for ensuring the identified risks are being managed and mitigating actions are being implemented. The Audit, Finance and Performance Committee maintain oversight of the risk management arrangements and monitor the CRR to gain assurance the arrangements are working effectively. HILLINGDON COUNCIL RISK ASSURANCE REPORT 6 3.3 Since the last Risk Assurance report presented to the Audit, Finance and Performance Committee the following risks were removed from the Corporate Risk Register: CRR Risk: STRAF0002 - Ability to Deliver a Balanced Budget in the Short & Medium Term Closed (14/04/2026): Following discussion at the Corporate Management Team and Finance Senior Management Team. The risk was no longer applicable following the confirmation of EFS. LANDB0003 - Decarbonisation Closed (05/05/2026): The Council has an investment programme in place for green homes and therefore the risk has been reduced to a tolerable level. Separate risks are in place for the programme. TRSA0003 - Liquidity Risk Reduced to Green (17/04/2026): Once EFS was confirmed the Council can now source the required funding and therefore this risk has been significantly reduced. LANDB0019 - Lone-working devices - no visiting officers within housing have lone working devices. Closed (03/06/2026): This risk was originally reduced to amber in April when approval to purchase the devices was received. It was then reduced further to green in May when the devices were purchased and closed once the devices were being rolled out. PROPER0011 - Insurance Valuations Reduced to Amber ( 27/04/2026): Planned investment is now in place and actions in place to improve asset information and valuations. PENS0011 - Failure of the pool in management of funds / access to funds Reduced to Amber ( 29/06/2026): The pool to which we belong has made tremendous progress in ensuring adequate implementation of "Fit for the future" regulations. Investment Management Agreement (IMA) has been signed which allows us to monitor adherence to the agreement, and a transition plan for the remainder to the fund has been agreed for implementation. LANDB0021 - Compliance IT systems and reliance on spreadsheets Reduced to Amber (05/05/2026): The new IT system is in place and in the final testing stage with no issues noted to date. LANDB0025 - There is concern in all areas of the service with Data Quality and Performance analysis. Reduced to Amber (27/04/2026): The service has appointed new staff to improve data quality and have built several Power Bi Dashboards to monitor performance and progress across the service. ASSETS0018 - Upcoming Regulatory Compliance and Enhanced Operational Efficiency Reduced to Amber (05/05/2026): This risk was reduced following the implementation of the new HRA risk and performance governance groups. These groups have been established to ensure compliance and improve efficiencies. GREENS0029 - Lack of compliance with the approved Tree strategy Closed ( 28/04/2026): There is an action g roup in place to improve compliance with the Tree Strategy and maintain oversight . There is also a separate risk in place for this (GREENS0025) and therefore this risk has been closed to reduce duplication. GREENS0031 – non-compliant with our approved tree policy Reduced to Amber (08/06/2026): The new action group referenced above has issued batches of key works to improve compliance. Therefore, this risk of non-compliance has been reduced. PUBPRO0010 - Stalled recruitment to the Private Sector Housing Team Reduced to Amber (06/05/2026): This risk score was reassessed by the service following a change in risk owner. It was downgraded from red to amber. FLEET0002 – Fuel costs and availability Reduced to Amber (26/06/2026): There has been some tentative price softening following the recent peace deal between USA and Iran and a potential for further reduction. 3.4 Since the last Audit, Finance and Performance Committee the following risks were added to the Corporate Risk Register: TECH0001 - Cyber Security Increased to Red (22/06/2026): These risks were increased from amber to red following recent potential vulnerabilit ies identified in one of the Council’s systems. TECH0002 - Network Resilience and ICT Disaster Recovery PROVID0002 - Fuel price volatility and supply disruption on Home to School transport and providers Added at Red (24/04/2026): This risk was added within Adult Social Care due to the g eopolitical instability driving volatility and increases in fuel prices and wider transport operating costs. This creates cost pressure and sustainability risks for providers, including SEN Home to School Transport operators and the provider contracts where travel is required. HILLINGDON COUNCIL RISK ASSURANCE REPORT 7 APPENDIX A: SUMMARY OF CORPORATE RISKS CRR Risk: 31 March 2026 1 July 2026 Last Reviewed Next Review Due PROCUR0025 - Financial Resilience of Contracts Static C2 Static C2 31/03/2026 31/08/2026 HOUSNE0001 - High Levels of Homelessness Demand Static C2 Static C2 31/03/2026 10/07/2026 PROPER0001 - Disposal Programme Static D1 Static D1 22/06/2026 22/07/2026 LANDB0026 - Rent increasing because of operating model and structure of the line management. Static B2 Static B2 29/06/2026 29/07/2026 BUSTRA0002 - The transformation programme required to deliver significant savings in order for the Council to achieve a balanced budget. Static C2 Static C2 22/01/2026 22/07/2026 RESIDE0001 - Risk of contractor failure and/or increasing costs of providers delivering statutory or critical services Static B2 Static B2 07/04/2026 10/07/2026 PLANRE0006 - Heathrow Airport Expansion Static D1 Static D1 28/04/2026 28/07/2026 HESAFE0003 - Inadequate resource in relation to Health & Safety advice within the organisation Increase C2 Static C2 17/04/2026 17/07/2026 HOUSNE0034 – Temporary Accommodation Management System New C2 Static C2 09/03/2026 10/07/2026 HOUSNE0035 – Inability to meet current need or service improvements New B2 Static B2 09/03/2026 10/07/2026 HOUSNE0036 – Disrepair, damp and mould and compliance New B2 Static B2 23/06/2026 31/07/2026 TRSA0008 – Building back audit opinions New A3 Static A3 01/05/2026 30/09/2026 REV0022 – Council Tax Collection Increase C2 Static C2 31/03/2026 30/09/2026 TECH0001 - Cyber Security Increase C1 22/06/2026 22/12/2026 TECH0002 - Network Resilience and ICT Disaster Recovery New C2 22/06/2026 22/12/2026 PROVID0002 - Fuel price volatility and supply disruption on Home to School transport and providers New C2 22/05/2026 22/06/2026 HILLINGDON COUNCIL RISK ASSURANCE REPORT 8 APPENDIX B: RISK SCORING METHODOLOGY

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

22. Introduction to Overview and Scrutiny PDF 986 KB
The Committee received an introduction to its overview and scrutiny role, alongside its audit and assurance responsibilities. Members were advised that the Committee would scrutinise Cabinet decisions, review policies and services, monitor performance and support value for money across the Council. It was noted that, as the Council’s lead body for finance and performance scrutiny, the Committee would receive regular budget and performance reports. The work programme would remain flexible, allowing Members to suggest future scrutiny topics and single meeting reviews. Members were asked to share any suggested areas for review with the Chair and Democratic Services. It was also noted that a dedicated scrutiny training session would be arranged later in the summer to support Members in their role. RESOLVED: That the Committee noted the update.
📄 Introduction to Overview and Scrutiny PDF 986 KB
Read the text of this document (34 pages)
Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public INTRODUCTION TO OVERVIEW & SCRUTINY IN HILLINGDON Committee name Audit, Finance and Performance Committee Officer reporting Mark Braddock, Statutory Scrutiny Officer Papers with report Appendix A – List of previous Policy Reviews Appendix B – Scrutiny Call-in App Guidance Appendix C – Chapter 6 – Constitution HEADLINES **This introductory paper relates solely to the Committee’s overview and scrutiny role** The Audit, Finance and Performance Committee has been established to carry out the Council’s independent audit and assurance function and a distinct overview and scrutiny function in relation to the Council’s finance, performance and corporate services. The Committee will maintain a clear independence and se paration between these two distinct roles through its meetings, work programme and agenda structure. The Independent Chair (currently under recruitment) will help oversee this separation - ensuring independent audit oversight alongside robust scrutiny of finance, performance, governance, procurement, transformation and commercialisation. As a councillor and committee member, you have been elected by your residents because you will represent them in ensuring the Council provides the services they need, to the standard they expect. By understanding their needs, councillors who sit on overview and scrutiny committees can bring a different and independent perspective to the governance and policy-making processes of the Council, which can help drive improvement and positive change in local services. This introductory report provides Committee Members with information about: 1. The role of this committee in relation to overview & scrutiny in Hillingdon; 2. How the committee will operate in this regard and; 3. Scrutiny rules, support and guidance. Note: Democratic Services will give a fuller briefing and presentation after the formal part of the meeting has finished outlining the key information within this report and answer any further questions Members may have. RECOMMENDATION: That the Committee notes the report and seek any clarifications required. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public The Committee’s role What is “overview and scrutiny”? Larger councils are required in law to have more than one overview and scrutiny committee as part of their core governance arrangements. The structure is local choice and most larger councils like Hillingdon, have a number of such committees usually structured around cross-cutting service areas, engaging Councillors (not in the Cabinet) in a variety of activity. Their role is somewhat analogous to that of Select Committees in Parliament, broadly to: 1. Assist in the development of Council policy and the improvement of services and efficiency; 2. Review and evaluate the actions of the executive (i.e. Cabinet / Cabinet Member) before and after decisions are taken; 3. Have the power to make reports and recommendations on such matters and; 4. Scrutinise local health services and crime and disorder (if in a committee’s remit). As set out in statutory scrutiny guidance, issued in 2019 and updated 2024, the principles of effective overview and scrutiny are to:  provide constructive ‘critical friend’ challenge  amplify the voices and concerns of the public  be led by independent* people who take responsibility for their role  drive improvement in public services *relating to combined authorities where the chair is independent Stressed in this guidance, is that “All members and officers should recognise and appreciate the importance and legitimacy the scrutiny function is afforded by the law. It was created to act as a check and balance on the executive and is a statutory requirement for all councils operating executive arrangements and for all combined authorities and combined county authorities.” The guidance adds that “Scrutiny committee members have a unique legitimacy derived from their being democratically elected councillors in the first instance. The insights that they can bring by having this close connection to local people are part of what gives scrutiny its value.” In Hillingdon, this important overview and scrutiny work is undertaken through 3 select committees and the Audit, Finance & Performance Committee (when in a scrutiny session) , who each undertake a wide range of work in support of the above roles. This is demonstrated through the Annual Report to Full Council listed in Appendix A. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public How overview and scrutiny in Hillingdon is arranged Following the Council’s AGM on 14 May 2026, overview and scrutiny arrangements are as set out below, with remits aligned neatly to the relevant Cabinet Member portfolios and Officer Directorates. This alignment is important, as it secures an accountable framework to the Council’s governance arrangements. The Children, Families, Health & Care Select Committee has established a Corporate Parenting Panel to undertake development activity with Children in the Council’s Care / Care Leavers, who also attend such meetings . Here, Councillors listen to their view and p ropose changes where required. Select Committee Chairs may, on an exceptional basis, agree a single review panel to undertake, for example, a cross-cutting policy review, reporting back to a Select Committee. What are the general responsibilities of this committee? All committees have general responsibilities, which they undertake on a regular basis, and are built into each of their multi-year work programmes. These are: 1) Monitoring the Cabinet Forward Plan, which lists future reports for decision to the Cabinet and Cabinet Members over the coming months and year; 2) Post-decision scrutiny - this is the statutory call-in procedure, which can be exercised up to 5 working days after a Cabinet or Cabinet Member decision is made, should the committee agree via a majority to do this (further guidance below); 3) Undertaking the statutory external scrutiny of local public agencies, e.g. Safer Hillingdon Partnership, Police, Fire Brigade, NHS, Health services etc… (if in Terms of Reference) 4) May undertake a review into past Cabinet or Cabinet Member decisions taken, e.g. after 6 months to check their implementation; 5) Undertake in-depth or single meeting policy reviews on topics within their remit to improve Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public services and recommend changes to the decision-making Cabinet – this is a substantial area of committee activity and explained further below in this report. 6) Monitor the implementation of previous committee policy reviews, which have been approved by the Cabinet. A list of recent reviews is set out in Appendix A; 7) Help shape key policy framework documents before they go to Cabinet and full Council for final approval, e.g. Local Plan, Housing Strategy, Licensing Policies; 8) Receive information reports on specific areas within their remit, and may undertake site visits or other activities as part of their work; 9) May exercise the statutory “Councillor Call for Action” (mechanism of last resort) which has not yet been used in Hil lingdon given the current petition scheme largely deals with such matters. Budget and performance scrutiny During 2025/26, all Select Committees received regular budget and performance reports. Following a decision of Full Council on 14 May 2026, this ap proach has been updated to strengthen oversight, reduce duplication and enable more focused scrutiny. The key change is where the routine reporting sits. The regular cycle of finance and performance reports via Cabinet is now considered by the Audit, Finance & Performance Committee, which acts as the Council’s lead body for finance and performance oversight. On behalf of all Select Committees, it reviews these reports, considers Cabinet’s annual draft budget proposals, and maintains a council -wide view of value for money and service delivery. It will also share any significant issues with the relevant Select Committee where more detailed, service-level scrutiny is needed. This relationship works both ways. The 3 Select Committees continue to scrutinise finance and performance within their service areas as part of their reviews, and can raise issues, highlight risks, or feed their views into the Audit, Finance & Performance Committee to inform its work and the Council’s wider financial oversight. In simple terms, the previous routine reporting cycle after Cabinet now sits with this Committee, but with a clear and active dialogue between all committees. All reports remain publicly available to support transparency and informed, joined-up scrutiny. Remit of this Committee This Committee’s remit is in two parts (1) Audit and Assurance and (2) Overview and Scrutiny. This paper deals with (2) the Overview and Scrutiny remit. S pecific Terms of Reference are set out below, as per the Council’s Constitution. They set the parameters (Cabinet Member portfolios and service areas) in which the Committee can undertake reviews, monitor, request reports from and provide input to Cabinet on matters, as per its general responsibilities above: 1. To be the lead committee on finance oversight council-wide. 2. On behalf of select committees to receive regular finance, performance and risk reports to monitor council services, budgets and to help ensure value for money, taking into consideration the committee’s independent role as part of its audit and assurance remit. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public 3. On behalf of select committees, to comment on the Cabinet’s proposed annual budget plans for the Council before final consideration by Cabinet and approval by the full Council; 4. To inform select committees or their respective members of any pertinent finance and performance issues identified through any investigations, which may require further service review by the relevant select committee. 5. To undertake the overview and scrutiny role in relation to the following Cabinet Member portfolio(s) and service areas: Cabinet Portfolios Officer Directorates Service Areas Leader of the Council Chief Executive’s Office Governance Finance Finance Financial Strategy & MTFS Strategic & Operational Finance Financial Management Statutory Accounting, Investments and Pensions All Finance (inc. General Fund, Schools Budget, Revenues and Benefits, Housing Revenue Accounts) Counter Fraud Procurement & Commissioning Internal Audit & Risk Assurance Corporate Services, Digital & Transformation Corporate Services Transformation Cross-cutting Commercialisation It is important that the Committee remains wholly within its Terms of Reference when undertaking scrutiny activity and Democratic Services can advise further on this if required at meetings, as and when potential items are requested to be looked into by the committee. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public How committees operate Multi-year work programme (scrutiny session activity) The Committee’s scrutiny work is planned and delivered through a work programme, which is reviewed at every meeting, alongside the distinct audit and assurance work programme . This is a live document that sets out the forward programme of scrutiny activity and enables the Committee to plan, prioritise and adapt its work over time. In its scrutiny capacity, the Committee will focus on:  Regular financial scrutiny, including the consideration of the monthly budget monitoring reports presented to Cabinet, allowing Members to review financial performance, emerging pressures and delivery of savings;  Performance monitoring, through the receipt of six-monthly corporate performance reports, enabling structured oversight of service delivery and outcomes;  Risk oversight, including ongoing review of key strategic and operational risks to ensure that they are properly identified, managed by services.  Annual budget scrutiny, including coordinated Member consideration of the Cabinet’s annual budget proposals and submitting comments, prior to determination by Full Council; Alongside this core programme of monitoring, the work programme will also provide for targeted scrutiny activity, which may include focused reviews or deep dives into specific service, financial, performance or risk -related issues where further Member challenge or assurance is required ,. The Cabinet Forward Plan, outlining future Cabinet business will also be a standard item on the work programme. As with other select committees, the work programme will gradually operate on a multi-year basis (rather than municipal year) which enables the Committee to take a longer -term, strategic view, while maintaining consistent oversight of financial management, performance and risk across the Council. It is important to keep the work programme manageable , and thereby the activity undertaken at each meeting , achievable. For example, ea ch additional information report requested by the Committee will have additional resource implications for council se rvice areas. Good timing is also a factor to enable officers sufficient notice to prepare any information or committee report given competing demands on their service areas. A report later in this agenda sets out a proposed “draft” work programme that the Committee will update and refine as the months and years progress. Undertaking policy reviews A key role of such committees are to shape and develop policies and deliver improvements to council services. Over the years, committees have undertaken suc cessful in-depth reviews and this has resulted in a number of positive changes locally, with some also affecting policy at a national level. The typical cycle of a more in-depth policy review is as follows: Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public 1. Selection of topic; 2. Scoping and structuring the review; 3. Witness & evidence stage (this is the main activity seeking out evidence); 4. Draft recommendations considered; 5. Final report, with recommendations, approved by Committee; 6. Report referred to Cabinet for consideration and decision; 7. If agreed by Cabinet, monitoring of the approved recommendations at a later date. Some committees opt for quick single meeting reviews where the topic and service area to be scrutinised is very focussed. It is advisable that any review is done one at a time, given resourcing. In undertaking reviews, committees have a lot of tools at their disposal to get the best outcome. This is usually gained from the external witnesses that participate , the evidence and data considered but importantly the voice of users or residents concerned. It is vital for the committee to have both qualitative and quantitative data to support their inquir ies. Committee are also not bound by their formal structure of evening meetings. Site visits, informal meetings and workshops can sometimes be more productive in gathering evidence. Useful things that Councillors themselves can also do in preparation for reviews are:  Prepare your own draft questions for witnesses in advance;  Find out more about any individual or external organisation invited;  Do your own additional research on the topic - you may find something officers don’t!  Use your network of councillors in other local authorities to seek any views;  Talk to residents at surgeries about the review - get their thoughts. Policy reviews will be a matter for a more detailed discussion at the July or September meeting of the committee. However, for information, Appendix A to this report, sets out the previous reviews undertaken by Overview and Scrutiny Committees in Hillingdon over the last 5 year s, so Members can get a flavour of the activity that has taken place. Scrutiny call-in procedure One of the statutory roles of this committee and other select committees is to scrutinise decisions made by the Cabinet and Cabinet Members. After a decision is published, it cannot be implemented for five working days. This is known as the scrutiny call-in period. During this five -day period, a Member of the relevant committee may, in exceptional circumstances, request that a decision is called-in for further consideration. If a majority of the Committee supports the request, the decision is formally called -in and cannot be implemen ted until it has been reconsidered by the original decision-maker. To support this process, a Scrutiny Call-in App was introduced in 2021. The App provides a simple and accessible way for Members to submit a call -in request using either a mobile device or a laptop. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public All Cabinet and Cabinet Member decisions published by Democratic Services include the relevant committee for the decision – and a direct link to the App, enabling Members to act quickly should a call -in be required. Further guidance on how to use the App is set out in Appendix B. While the guidance is intentionally comprehensive, the App itself is straightforward to use. Democratic Services will provide user guides for both mobile and laptop access, which will be circulated to all Councillors. It is important to note that some decisions cannot be called-in. These include decisions relating to the budget and policy framework (such as the annual budget), as well as properly designated urgent decisions. Members are expected to use the call -in process responsibly and only where there are clear and substantive grounds for further scrutiny, ensuring that the process is not used unnecessarily or inappropriately. Urgency decisions In exceptional circumstances the Chairs of the relevant committee have the prerogative to decide to (or not to) waive the 5 working day scrutiny call-in period, where Cabinet or Cabinet Member decisions are deemed urgent and/or where a key decision has not been given notice on the Forward Plan and the Chair agrees that it can be taken urgently. These are called “urgent” or “special urgency” decisions and you will be notified of these by Democratic Services. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Rules, support and guidance The rules relating to Overview and Scrutiny Appendix C sets out Chapter 6 of the Council’s Constitution. These are the formal rules by which this committee and select committees operate and carry out their responsibilities, and summarised in this report. Members are advised to keep a copy of this for future reference. It is also available on the Council’s website. The Committee’s relationship with Cabinet Committees should be a constructive, and where required, critical friend of the Cabinet. Set out at the end of Chapter 6 of the Constitution, is the Protocol on Overview & Scrutiny and Cabinet Relations. This sets out the practical expectations of each party, to ens ure an effective relationship that adds value to overview and scrutiny in Hillingdon. Direct officer support to the Committee Primary support will come from Anisha Teji, your Clerk to this Committee and Senior Democratic Services Officer . Anisha will act as the primary link with the Chair, Committee and Council Officers, witnesses and other parties involved in carrying out the planned work. Anisha will also lead on research and commissioning information to support the work of the Committee. Additionally, service areas in the Council will be able to offer support, for example, in the execution of any surveys or more in -depth research or statistical information that may be required, if reasonable in nature. As required in law, the Council has appointed a Statutory Scrutiny Officer, who will oversee support to all committees and give guidance. Information to committees Overview and scrutiny committees will have access to a wide range of public, internal and possibly confidential information when undertaking their reviews and other scrutiny activity . Committees also have access to all Cabinet and Cabinet Member reports once published, including all those that are confidential in nature. Any information requests relating to your work, should be directly linked to the committee’s work being undertaken and made via the committee meeting itself , with the committee agreeing to it . Bar the Chair, Members should not contact officers outside the meeting for information relating to their role on the committee. Usually, the Clerk to the Committee will arrange for that information to either be brought back to a subsequent meeting or circulated around outside the meeting if more desirable. Councillors will need to be aware that there will understandably be some information, under the domain of the Cabinet or Cabinet Member that they will not have automatic access to, unless the Leader of the Council or Cabinet Member permits its release . This will include, for example, briefing notes or draft reports before they are published by Democratic Services. However, as per the Protocol on Overview & Scrutiny and Cabinet Relations , good information-sharing between the Committee and Cabinet Member is always encouraged, where feasible. All meetings of the committee are generally in public. Should it be required in exceptional circumstances, committees can operate in a closed (private) session where the information to be discussed meets the legal test not to disclose such matters to the public. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Questioning attendees Council officers will inevitably attend most committee meetings to answer questions about matters on the agenda . Similarly, Cabinet Members may also attend if invited . There are also formal procedures for compelling attendance by senior officers and Cabinet Members, though this has yet to be used in recent times , as people attend willingly . External witnesses and residents will also attend as part of policy reviews. In any questioning, Councillors should take care to ensure this is conducted in a fair and balanced manner and not extend to personal criticism. What committees cannot do In its scrutiny role, this Committee, by its very nature is ‘non-executive’ in function. What this means, is that this committee and other select committees cannot make formal decisions like the Cabinet or other decision-making bodies of the Council. They also cannot formally instruct officers attending meetings to take a particular course of action or make a decision. Committees may, however, seek to suggest matters to officers and ultimately can make formal recommendations to decision-makers, namely the Cabinet. Also, such c ommittees, understandably given their nature, cannot be a mechanism to raise an individual complaint that ma y have been received from a resident, particularly if it includes personal information. However, anecdotal information gained through a councillors’ insight can be useful to highlight matters when appropriate. It is usual for committees to discuss more general findings and issues, rather than individual matters. Broadcasting of meetings All committees are broadcast live on the Council’s YouTube channel : Hillingdon London. Whilst meetings are required to be held in person with Councillors present, the Council has the capability for witnesses and external parties to attend virtually and give evidence, if required. Essential reading and references  The Good Scrutiny Guide – Centre for Governance and Scrutiny This expert guide book is recommended for reading, and covers all aspects of scrutiny.  Statutory Scrutiny Guidance 2019 This is the latest guidance issued by the Government on how overview and scrutiny should operate. The Council considered this in full at its meeting in September 2019. Updated here in 2024.  Councillors’ Work Book on Scrutiny This Local Government Association guide, whilst prepared before the above statutory guidance was issued, is still relevant and has been designed as a learning aid for elected councillors, whether you have been a councillor for some time, or whether you have been elected more recently.  Select Committee’s Annual Report 2025/26 – showing the breadth of activity over the last year and a useful guide as to what the committees do.  Full Council decision report - 14 May 2026 on the new audit/overview and scrutiny arrangements. BACKGROUND PAPERS Council Constitution Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Appendix A - List of recent relevant policy reviews List below shows only those policy reviews relevant to this committee’s revised remit over the last 4 years. All reviews and their recommendations were approved by Cabinet and relevant committees have monitored their implementation at subsequent meetings. 2024 – Review into Procurement – securing value for our residents 2022 - Empty Homes Council Tax Premium 2022 – Performance Monitoring and Reporting by Hillingdon Council Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Appendix B – Scrutiny Call-in App Guidance Below is a summary of the full guidance which will be issued to Councillors on how to use the App, alongside user guides to download / access the App: 1. All Cabinet and Cabinet Member decisions notices clearly identify the relevant Committee, and thereby Members of, who can attempt to call-in any decision. 2. The decision notices clearly show the last date and time any call-in request can be made, i.e. which is 5 working days at 5pm after the date the decision notice was published. 3. It can only be a Member of the Committee shown on the decision notice that can initiate any call-in request. A Member cannot initiate a call-in on behalf of another committee membership. 4. The call-in request is done via the Scrutiny call-in App. This ‘App’ can be accessed via a link for a computer or laptop - or downloaded via an App if you have an iPad or mobile device. Details how to do access the App will be provided. 5. The App has a simple online form to complete where you can provide details. 6. Once the online form is submitted, the call-in request is then sent via an automated email to ALL Members on the Committee including the Councillor on the committee that initiated it. 7. Councillors do not have to respond to the email, but if they wish to indicate their approval (or rejection) of the request, they will need to click on the link in the email to do so. Importantly, this also applies to the Councillor initiating the call-in request too. 8. Upon a majority of Members indicating their approval via the App (and before the end of the scrutiny call-in period), it then becomes a valid call-in and Democratic Services are automatically alerted via the App. The decision of the Cabinet or Cabinet Member is then put on hold and cannot be implemented. 9. On the App there is a handy “call-in history” section where you can view the status of any current and past call-in requests. Call-ins requests cannot be initiated at formal committee meetings. So, those requests that do not receive a majority are not reported to the Committee. Only those that are valid with a majority of Members approving will then be heard at a Committee meeting as part of the next steps in the scrutiny call-in process. Helpful user guides available to download the App will be circulated separately for:  iPad/mobile  Laptop Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Appendix C – Chapter 6 (Extract from Council Constitution) Audit, Finance & Performance Committee / Select Committee Arrangements The Council has established an Audit, Finance and Performance Committee which performs two distinct roles on behalf of the Council:  Audit and assurance: providing independent assurance on the adequacy and effectiveness of the Council’s governance, risk management and internal control framework, including oversight o f internal and external audit, the Annual Governance Statement and the Statement of Accounts.  Overview and scrutiny: undertaking a separate scrutiny role in relation to the Council’s finance, performance and corporate services, including the ability to make reports and recommendations to the Cabinet and Council in line with overview and scrutiny arrangements. In addition to this Committee, the Council has established other Select Committees to discharge overview and scrutiny functions across Cabinet portfolios and services. Collectively, these committees support good governance by: (1) assisting in policy development and service improvement; (2) reviewing Cabinet decisions before and after they are taken; (3) making reports an d recommendations; and (4) undertaking statutory external scrutiny where required, including health and crime and disorder scrutiny functions. About these Committees The Council has appointed the following committees to discharge these functions: The Committees will mirror Cabinet Member portfolios and Directorate Structures as far as practicable. The Residents’ Services Select Committee and the Children, Families, Health & Care Select Committee will undertake the statutory external scrutiny functions on crime & disorder and health respectively. Chair of the Committees may jointly agree to establish a Task and Finish Review Panel to undertake detailed Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public reviews. The Children, Families, Health & Care Select Committee will establish a Panel to oversee t he corporate parenting responsibilities of the Council. The terms of reference for each of these Committees and their Panels, where established, are set out in this Chapter. Councillor Membership and attendance The Council will appoint to these committe es as it considers appropriate from time to time. Membership will be on a proportional basis to each Select Committee. For the Children, Families, Health & Care Select Committee, membership may also include co-opted Members as set out. All Councillors except Members of the Cabinet and Cabinet Assistants may be Members of a Select Committee. However, no Member may be involved in scrutinising a decision with which he/she has been directly involved or has a prejudicial interest. All Council lors, including Cabinet Members, may attend a Select Committee meeting and address the Chair of that Committee only at his/her discretion. Committee members shall hold office until they resign, are removed from office or their successors are appointed. Co-opted Members & Education Representatives Each Committee shall be entitled to recommend to Council the appointment of permanent non -voting co- optees, or agree as a committee a non -voting co-optee for a limited duration as an advisor to assist with a specific review or work activity, for example, a subject matter expert from the local community. The Children, Families, Health & Care Select Committee shall additionally include in its membership the following Co-opted voting education representatives, where duly appointed or elected: 1) 1 Church of England diocese representative; 2) 1 Roman Catholic diocese representative; and 3) Such other representatives of faiths and denominations as may be appointed by the Council subject to a direction being issued by the Secretary of State. 4) A minimum of 2 and maximum of 5 parent governor representatives elected by parents. Education representatives may only vote on matters relating to education, whether in respect of schools or wider educational issues, that are on the agenda. They may in addition speak, but not vote, on any other matters within the remit of the committee. All co-opted members of a select committee are bound by the Members and Co-opted Members Code of Conduct as set out in Part 3, Chapter 21. Quorum The quorum for the Audit, Finance & Performance Committee will be 3 Members and for other Select Committees shall be 4 Members of the committee. Chair and Vice-Chair The posts of Chair and Vice-Chair of the Committees will be decided by the Membership of that particular committee. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Role and Remit General Terms of Reference The Following Terms of Reference are common to the select committees and the Audit, Finance & Performance Committee in discharging its overview and scrutiny function only: 1. To conduct reviews of policy, services or aspects of service which have either been referred by Cabinet, relate to the Cabinet Forward Plan, or have been chosen by the Committee according to the agreed criteria for selecting such reviews; 2. To monitor the performance of the Council services within their remit (including the management of finances and risk), noting the lead role of the Audit, Finance & Performance Committee in this regard. 3. To consider the Forward P lan and comment as appropriate to the decision -maker on Key Decisions which relate to services within their remit (before they are taken by the Cabinet); 4. To review or scrutinise decisions made or actions taken by the Cabinet, a Cabinet Member, a Council Committee or an officer. 5. To make reports and recommendations to the Council, the Leader, the Cabinet, a Select Committees or any other Council Committee arising from the exercise of the preceding terms of reference. 6. To exercise the right set out in this Chapter of the Call -in Procedure Rules and to call -in and recommend for reconsideration any key decisions made but not yet implemented by the Cabinet, a Cabinet Member, a Council Cabinet Sub -Committee or an officer. This would include any key decision that needs further information from the decision-maker to explain why it was taken. 7. In accordance with the Local Government and Public Involvement in Health Act 2007, t o consider ‘Councillor Calls For Action’ (CCfA) submissions. Committees will not investigate individual complaints. Councillor Call for Actions The CCfA is a process designed to help Councillors resolve issues and problems on behalf of their residents, acting as a last resort for people who have been unable to get issues resolved through other means. CCfA should not be regarded merely as a scrutiny process and an issue can only become a CCfA once a Councillor has exhausted all other steps to resolve an issue in his or her ward such as a petition hearing, correspondence with elected Members and officers, questions to Council etc. Whilst CCfA’s may be submitted by all Councillors on any issue, there are certain exceptions which are: (a) An issue relating to a planning appeal, licensing appeal or where a person has an alternative avenue to resolve an issue (e.g. through an appropriate complaints process) (b) Any matter which is vexatious, discriminatory or not reasonable to be included in the agenda for, or to be discussed at, a meeting of the Select Committee Procedure 1) A Member may submit a CCfA in writi ng to the Head of Democratic Services who will seek to confirm with the Member concerned if all other potential avenues to resolve the issue in question have been exhausted and that the request does not fall within the exemptions detailed above. If necessary, the Head of Democratic Services will discuss the matter with the Leader of the Council, the appropriate Cabinet Member and the Chief Whip. 2) If satisfied that the CCfA is valid the Head of Democratic Services will submit the request to the appropriate C ommittee Chair for inclusion on the agenda for the next meeting of the Select Committees. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public 3) Relevant officer(s) and / or representatives from partner organisations may be invited to attend and information can be requested from such organisations. 4) Discussion would take place at Committee to explore potential solutions and the item would end with the Committee recommending a course of action to the appropriate body – including detailed financial consequences and budgetary proposals. 5) The process may not necessarily resolve the issue immediately, but the process will act as a spur for Members and officers to work together to jointly develop policies to overcome the problem. Audit, Finance & Performance Committee The Audit, Finance and Performance Committee is established to carry out the Council’s independent audit and assurance function and a distinct overview and scrutiny function in relation to the Council’s finance, performance and corporate services. The Committee will maintain a clear independence and separation between these two distinct roles through its meetings, work programme and agenda structure. Membership will be politically balanced, and determined by the Full Council. Membership will include an independent non-voting Co-opted Member as Chair with relevant financial expertise. The Vice-Chair will come from the majority group. No Cabinet Member shall serve concurrently on the Committee. Audit and assurance functions The Committee’s role is to:  Review and monitor the Council’s audit, governance, risk management framework and the associated control environment, as an independent assurance mechanism;  Review and monitor the Council’s financial and non-financial performance to the extent that it affects the Council’s exposure to risk and/or weakens the control environment;  Oversee the financial reporting process of the Statement of Accounts. Decisions in respect of strategy, policy and service delivery or improvement are reserved to the Cabinet or delegated to Officers. Internal Audit 1) Review and approve (but not direct) the Internal Audit Strategy to ensure that it meets the Council's overall strategic direction. 2) Review, approve and monitor (but not direct) Internal Audit’s planned programmes of work, paying particular attention to whether there is sufficient and appropriate coverage. 3) Establish a direct reporting relationship with the Head of Internal Audit and work with the Corporate Management Team to ensure Internal Audit can perform without interference from management and has unrest ricted access to the data, records, information, personnel, and physical properties necessary to fulfil the internal audit mandate. 4) Through quarterly Internal Audit summary reports of work done, monitor progress against the Internal Audit Plan and assess whether adequate skills and resou rces are available to provide an effective Internal Audit function. Monitor the main Internal Audit recommendations and consider whether management responses to the recommendations raised are appropriate with due regard to risk, materiality and coverage. 5) Make recommendations to the Leader of the Council and Cabinet Member for Finance on any changes to the Council’s Internal Audit Strategy and plans. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public 6) Review the Annual Report and Opinion Statement and the level of assurance this provides over the Council’s corporate governance arrangements, risk management framework and system of internal controls. 7) Discuss with the Head of Internal Audit the quality assurance and improvement program and agree the plan and scope of any externa l quality assessment. Consider reports dealing with the activity, management and performance of internal audit services and approve the Head of Internal Audit’s action plans to address any areas of improvement. 8) To be fully consulted on any recruitment, a ppointment or dismissal of the Head of Internal Audit and provide input to Corporate Management Team in relation to their reporting lines, and performance evaluation. If necessary, collaborate with Corporate Management Team to establish appropriate safegua rds if Head of Internal Audit roles and responsibilities impair, or appear to impair, the internal audit function’s independence. External Audit 9) Receive and consider the External Auditor’s annual letter, relevant reports and the report to those charged with governance. 10) Monitor management action in response to issues raised by External Audit. 11) Receive and consider specific reports as agreed with the External Auditor. 12) Comment on the scope and depth of External Audit work and ensure that it gives value for money, making any recommendations to the Corporate Director of Finance. 13) Be consulted by the Corporate Director of Finance over the appointment of the Council’s External Auditor. 14) Following a request to the Corporate Director of Finance and, subject to the approval of the Leader of the Council or Cabinet Member for Finance, to commission work from External Audit. 15) Monitor arrangements for ensuring effective liaison between Internal Audit and External Audit, in consultation with the Corporate Director of Finance. Governance Framework 16) Maintain an overview of the Council’s Constitution in respect of contract procedure rules and financial regulations and, where necessary, bring proposals to the Leader of the Council or the Cabinet for their development. 17) Review any issue referred to it by the Chief Executive, Corporate or Executive Director, any Council body or external assurance providers including inspection agencies. 18) Monitor and review (but not direct) the authority’s risk management arrangements, including regularly reviewing the corporate risk register and seeking assurances that appropriate action is being taken on managing risk. 19) Review and monitor Council strategy and policies on anti -fraud and anti-corruption including the ‘Raising Concerns at Work’ policy making any recommendations on changes to the Leader of the Council and relevant Corporate Director / Chief Operating Officer. 20) Oversee the production of the authority’s Annual Governance Statement and recommend its adoption. 21) Review the Council’s arrangeme nts for corporate governance and make recommendations to the Director of Legal & Governance (Monitoring Officer) and/or Corporate Director of Finance on suggested actions to improve alignment with best practice. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public 22) Where requested by the Leader of the Council, Cabinet Member for Finance or Corporate Director of Finance, provide recommendations on the Council’s compliance with its own and other published standards and controls. Accounts 23) Review and approve the annual statement of accounts. Specifically, to consider whether appropriate accounting policies have been followed and whether there are concerns arising from financial statements or from the external auditor that need to be brought to the attention of the Council. 24) Consider the external auditor’s report to those charged with governance on issues arising from the external audit of the accounts. Review and reporting 25) In respect of Audit and Assurance functions, to u ndertake an annual independent review of the Committee’s effectiveness and submit an annual report to Council on the activity of the Committee. Formal duty of senior officers to attend for Audit & Assurance purposes Whilst Council officers will invariably attend meetings voluntarily, in fulfilling its role, and should it be required, the Committee may require the Head of Paid Service and/or any senior officer (third tier and above) to attend before it to explain in relation to matters within its remit and it shall be the duty of those persons to attend if so required. Where any senior off icer is required to attend the Committee under this provision, the Chair will inform the Head of Democratic Services. The Head of Democratic Services shall inform the officer in writing or by email giving at least 10 working days’ notice of the meeting at which he/she is required to attend. The notice will state the nature of the item on which he/she is required to attend to give account and whether any papers are required to be produced for the Committee. Where the account to be given to the Committee will require the production of a report, then the officer concerned will be given sufficient notice to allow for preparation of that documentation. Where, in exceptional circumstances, the officer is unable to attend on the required date, then the Committee shall, in consultation with the officer, arrange an alternative date for attendance. When calling senior officers under this provision, the Committee will remain bound by the Code of Conduct for Members and Co-opted Members, ensure questioning is conducted in a fair and balanced manner and not of a personal critical nature. Overview and Scrutiny functions 6. To be the lead committee on finance oversight council-wide. 7. On behalf of select committees to receive regular finance, performance and risk reports to monitor council services, budgets and to help ensure value for money, taking into consideration the committee’s independent role as part of its audit and assurance remit. 8. On behalf of select committees, to comment on the Cabinet’s proposed annual budget plans for the Council before final consideration by Cabinet and approval by the full Council; Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public 9. To inform select committees or their respective members of any pertinent finance and performance issues identified through any investigations, which may require further service review by the relevant select committee. 10. To undertake the overview and scrutiny role in relation to the following Cabinet Member portfolio(s) and service areas: Cabinet Portfolios Officer Directorates Service Areas Leader of the Council Chief Executive’s Office Governance Finance Finance Financial Strategy & MTFS Strategic & Operational Finance Financial Management Statutory Accounting, Investments and Pensions All Finance (inc. General Fund, Schools Budget, Revenues and Benefits, Housing Revenue Accounts) Counter Fraud Procurement & Commissioning Internal Audit & Risk Assurance Corporate Services, Digital & Transformation Corporate Services Transformation Cross-cutting Commercialisation Corporate Resources & Infrastructure Select Committee To undertake the overview and scrutiny role in relation to the following Cabinet Member portfolio(s) and service areas: Cabinet Portfolios Officer Directorates Service Areas Leader of the Council Chief Executive’s Office Communications & Resident Engagement Residents Services Strategic Property Growth Strategy Inward Investment Business Engagement Heathrow Airport High Speed 2 (HS2) Corporate Services, Digital & Transformation Chief Executive’s Office Democratic Services Human Resource, incl. health and safety Legal Services Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Corporate Services Business Intelligence & Digital Services Planning, Housing & Property Residents Services Directorate Planning Services (incl. planning policy, building control, planning enforcement, specialist planning & conservation areas) Regeneration (incl. town centres, master planning) Local Plan Building Control & Safety Housing Strategy HRA Delivery Plan Housing Management (incl. tenancy) Homelessness Prevention Rough Sleeper Prevention Private Rented Sector Housing / HMOs Property, incl. Estates & Acquisitions Commercial Leases & Disposals Capital Programme / Major Construction Facilities Management / Security Planned Works and Repairs & Engineering of Housing/Corporate Estate Residents Services Select Committee To undertake the overview and scrutiny role in relation to the following Cabinet Member portfolio(s) and service areas: Cabinet Portfolios Officer Directorates Service Areas Residents Services Residents Services Green Spaces Crematorium Services Waste Services Highways (incl. Highways strategic assessment & safety, Highways Policy and infrastructure including EV) Transportation (incl. road safety, traffic management and parking management schemes) Car Park operations, street parking Fleet Management Library Services Leisure Services Theatres, Museums & Cultural Services Adult Social Care & Health Mortuary Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Community, Environment & Enforcement Residents Services Climate Action / Air Quality Flooding & watercourses Environmental Projects Planning Enforcement Community Safety & Cohesion CCTV Anti-Social Behaviour Street Scene Enforcement Trading Standards, Environmental Health & Licensing (incl. Safety of Sports Grounds) Imported Food Office Parking Enforcement Emergency Response Strategic Climate Action Plan (cross-cutting) Voluntary Sector (cross-cutting) Corporate Services, Digital & Transformation Resident Experience (cross-cutting) STATUTORY COMMITTEE Statutory Crime and Disorder Scrutiny This Committee will act as a Crime and Disorder Committee as defined in the Crime and Disorder (Overview and Scrutiny) Regulations 2009 and carry out the bi-annual scrutiny of decisions made, or other action taken, in connection with the discharge by the responsible authorities of their crime and disorder functions. Duty of partners to attend and provide information The Crime and Disorder (Overview and Scrutiny) Regulations 2009 permits this Select Committee to make a request in writing for information to bodies who form the local Crime and Disorder Reduction Partnership (Safer Hillingdon Partnership), which includes the Police. The Committee should scrutinise the work of the partnership at least once a year and may also require the attendance before it of an officer or employee of a responsible authority or of a co-operating person or body in order to answer questions. The Committee may not require a person to attend unless reasonable notice of the intended date of attendance has been given to that person. Children, Families, Health & Care Select Committee To undertake the overview and scrutiny role in relation to the following Cabinet Member portfolio(s) and service areas: Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Cabinet Portfolios Officer Directorates Service Areas Children, Families, Health & Care Children’s Services Children’s Social Care Children & Families Support Safeguarding, Quality Assurance, Partnerships and Residential Care Education & SEND Prevention & Youth Justice Adult & Community Learning Music Services Adult Social Care & Health Direct Care & Business Deliver Adult Social Work & Transport Health/Public Health Sport & Physical Activity Heathrow Health Control Unit Health Integration Immediate Response Services Adult Safeguarding Hospitals & Localities Sustained Support Services Mental Health Residents Services Domestic Abuse Services Services to Asylum Seekers (Cross-Cutting) Older People / Age Friendly Strategy STATUTORY COMMITTEE Statutory Healthy Scrutiny This Committee will also undertake the powers of health scrutiny conferred by the Local Authority (Public Health, Health and Wellbeing Boards and Health Scrutiny) Regulations 2013. It will:  Work closely with the Health & Wellbeing Board & Local HealthWatch in respect of reviewing and scrutinising local health priorities and inequalities.  Respond to any relevant NHS consultations. Duty of partners to attend and provide information The Local Authority (Public Health, Health and Wellbeing Boards and Health Scrutiny) Regulations 2013, imposes duties on ‘responsible persons’ to provide a local authority with such information about the planning, provision and operation of health services in the area of the authority as it may reasonably require to discharge its health scrutiny functions through the Health & Social Care Select Committee. All relevant NHS bodies and health service providers (including GP practices and other primary care provide rs and any private, independent or third sector providers delivering services under arrangements made by clinical commissioning groups, NHS England or the local authority) have a duty to provide such information. Additionally, Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Members and employees of a relevant NHS body or relevant health service provider have a duty to attend before a local authority when required by it (provided reasonable notice has been given) to answer questions the local authority believes are necessary to carry out its health scruti ny functions. Further guidance is available from the Department of Health on information requests and attendance of individuals at meetings considering health scrutiny. This Select Committee will establish a Panel to support strong oversight of the Coun cil’s corporate parenting responsibilities. The Committee may appoint 3 Members to this Panel based on political balance. Membership may include non-Cabinet Members not on the Committee. The Committee may also appoint relevant Council officers and other external stakeholders to the Panel and agree its chairship and operation. In agreeing its operation, the Committee will provide for the Panel not to be able to establish any other sub- group or body to carry out its responsibilities. Corporate Parenting Panel Terms of Reference as approved by the parent Select Committee The purpose of the Panel is to support the Select Committee in championing corporate parenting across the Council, directly engaging children in the Council’s care and care experienced young people in the democratic and decision-making process, working with them and partners to monitor relevant service and improve outcomes and life chances. Membership will comprise of: Voting Members 3 Elected Members, who be appointed by the Children, Families, Health & Care Select Committee based upon political balance, one of whom to be appointed as Chair. A Vice-Chair may also be appointed. Elected Members do not need to be Members of the parent Committee but cannot be Cabinet Members. 3 named substitutes, appointed by the Select Committee may attend in the absence of the appointed Members of the Panel and that they need not be Members of the parent Committee but cannot be Cabinet Members. Non-voting Members a) Up to 5 Children in Care Council Members (one of whom the Chair or Vice-Chair may ask to assist them informally in chairing a specific meeting).* b) Senior Officer from Children's Services c) Participation Manager d) Assistant Director for Education and Vulnerable Children e) The Local Authority’s designated Looked After Children Nurse or Doctor f) 1 x Foster Carer representative g) Assistant Director for Corporate Parenting and Fostering h) Advisors i) Relevant Council officers, e.g. from Social Care, Early Intervention and Prevention, Housing Service, along with exter nal representatives, e.g. Department for Work and Pensions, may attend relevant Panel meetings as advisors. Council officers should attend the Panel to present any reports to the Panel regarding their service area. *This gives Children in Care Council rep resentatives, in an informal capacity, a unique opportunity to get experience of assisting the Chair or Vice-Chair in the running of the meeting. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Meetings and Operation a) The Panel will meet four times a year and in private* b) The Panel will have in place a work programme for its activity. c) The Chair of the Panel, in conjunction with other members, shall agree the dates of the Panel for the ensuing year, where possible. d) The Chair of the Select Committee should authorise any additional meetings that may be requ ired or requested by the Chair of the Panel. e) The Panel will allow themes and agenda topics to be brought to them from the Children in Care Council (CiCC), with themes identified at each meeting. f) The Chair of the Panel will agree agenda items in advance of the meeting. g) The Panel cannot establish any other sub-groups or bodies to carry out its responsibilities. *Unlike the parent Select Committee, the Panel is not required to operate under statutory procedures outlined in the Local Government Act 1972 and ac cess to information rules do not apply. This allows the Panel to be conducted in a flexible way to suit the requirements of the Members and young people participating in it. Terms of Reference a) To champion the seven corporate parenting principles introduced by the Children and Social Work Act 2017. b) To support the work of the Select Committee overseeing the Council’s corporate parenting responsibilities by providing a strategic overview and monitoring of the statutory services for Looked After Children (LA C) and care experienced young people across the Borough, reporting back to the Committee on any findings, as appropriate. c) To actively engage young people who are looked after by the Council, along with care experienced young people, in order to ensure they have an opportunity to influence the development of services, participate in the decision-making and democratic process. d) To receive annual reports of the work of the Independent Reviewing Officers, Looked After Children Health Team, Corporate Parenting Service, Virtual School and Fostering and Adoption Service. e) To consider the impact on outcomes for children on other relevant activities linked to Looked After Children and care experienced young people's lived experiences, e.g. emotional wellbeing. f) To undertake any associated activity, review or task as requested by the Select Committee, reporting back to the Committee if directed. g) That through the Chair of the Panel, to advise the Select Committee and Cabinet Member portfolio holder on matters relating to corporate parenting. h) To present the minutes of the Panel to a subsequent meeting of the Select Committee, where the Chair of the Panel, along with any Children in Care Council Members, may attend to update the Committee on the Panel’s work. Audit, Finance & Performance Committee – 15 July 2026 Classification: Part I - Public Task & Finish Review Panels Membership Membership of a Review Panel may include non-Cabinet Members not on the ‘parent’ Committee(s) or co- opted Members. Panel membership will be subject to the usual political balance rules. ‘Review’ Panel Terms of reference Chair of the committees may jointly agree to establish Task and Finish Review Panels as set out in these Procedure Rules on the following matters: 1. Focussed reviews within a particular Committee’s remit 2. Cross-cutting reviews that cover the remit of more than one Committee; 3. Any functions, but within the purview of the Council, not included within the remit of any Committee; A single Task and Finish Review Panel may be in operation at any one time and co-ordination of this will be by the five Select Committees Chair and any Panel will be subject to the approval of the Leader of the Council. The Chair will jointly agree the review topic, terms of reference, membership and Chairship of any Panel. They will also agree the timescale for undertaking the review, including which Committee it will report back its findings to for consideration, prior to any report being presented to Cabinet. For reviews that span across the remit of more than one committee, any findings from a Panel will be reported to the Corporate Resources & Infrastructure Select Committee, unless the Chair jointly agree otherwise. North West London Joint Health & Overview and Scrutiny Committee The Council agreed on 18 November 2021 that the Council

Text extracted automatically from the PDF, so layout, tables and images are not shown. Only the start of this long document is shown here. Open the original PDF on LB Hillingdon’s website.

23. Budget Outturn 2025/26 PDF 141 KB
The draft Budget Outturn Report for 2025/26 was presented to the Committee. Members were advised that the Council's overspend had reduced to £29.0 million by year end, reflecting improvements in both service and corporate budgets. It was noted that earmarked reserves had been rebuilt and that Exceptional Financial Support (EFS) had been essential in enabling the Council to balance its budget and stabilise its financial position. The Committee was informed that the Dedicated Schools Grant deficit had reduced during the year following targeted interventions, while the Housing Revenue Account had achieved a broadly balanced outturn. Capital expenditure totalled £252 million against a budget of £343 million, reflecting a level of programme slippage broadly in line with previous years. Members sought clarification on several technical aspects of the report, including the operation of the Collection Fund, reserve movements, recharges and the use of flexible capital receipts. It was explained that a more cautious approach had been taken to the use of flexible capital receipts during the year in order to preserve resources and strengthen the Council's financial resilience. The Committee also discussed the costs and benefits of the Council's financial improvement and governance programmes. It was suggested that information on the level of investment and resulting benefits be provided in future to help Members assess value for money and monitor progress. RESOLVED: That the Committee reviewed and noted the attached Cabinet report in line with its Council-wide financial overview and scrutiny role.
📄 Budget Outturn 2025/26 PDF 141 KB
Read the text of this document (1 page)
Classification: Public Audit, Finance & Performance Committee – 15 July 2026 BUDGET OUTTURN 25/26 Committee name Audit, Finance & Performance Committee Corporate Director(s) responsible Pete Carpenter, Deputy s151 Officer Matthew Wallbridge – Chief Operating Officer Daniel Kennedy – Corporate Director of Residents Services Papers with report Cabinet Paper – Council Budget 2025/26 Draft Outturn Position Cabinet reporting Reported to Cabinet on 25 June 2026 HEADLINES This report enables the Committee to review the Council’s draft outturn position and monitor budget performance. As the lead body for finance scrutiny, the Committee will receive reports promptly after Cabinet, allowing Members to effectively challenge key risks and variances at pace and ensure spending and savings remain on track. RECOMMENDATION That the Committee review the attached Cabinet report and seek any clarifications where necessary, in line with its Council-wide financial overview and scrutiny role. INFORMATION Following changes agreed by Full Council in May 2026, financial scrutiny has been streamlined to provide clearer and more effective oversight. This Committee’s constitutional responsibilities are: 1. To be the lead committee on finance oversight council-wide. 2. On behalf of select committees to receive regular finance, performance and risk reports to monitor council services, budgets and to help ensure value for money, taking into consideration the committee’s independent role as part of its audit and assurance remit. 3. On behalf of select committees, to comment on the Cabinet’s proposed annual budget plans for the Council before final consideration by Cabinet and approval by the full Council; 4. To inform select committees or their r espective members of any pertinent finance and performance issues identified through any investigations, which may require further service review by the relevant select committee. 5. To undertake the overview and scrutiny role in relation to all financial matters. There should be a clear two -way relationship between this Committee and the three Select Committees. This Committee can highlight key finance and performance issues for more detailed service-level review, while select committees can suggest issues t o this Committee where wider financial oversight is needed. This communication should take place when important or emerging issues arise, typically through Members and Democratic Services, ensuring joined-up scrutiny. LEGAL & FINANCE IMPLICATIONS As set out in the Cabinet report. BACKGROUND PAPERS: NIL

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 Outturn Report 2025-26 , item 23. PDF 1 MB
Read the text of this document (38 pages)
Cabinet Report – 25 June 2026 (Part 1 – Public) COUNCIL BUDGET – 2025/26 DRAFT OUTTURN POSITION Cabinet Member & Portfolio Councillor Eddie Lavery Cabinet Member for Finance Responsible Officer Pete Carpenter, Deputy s151 Officer Report Author & Directorate Matt Davis, Director of Strategic & Operational Finance Andy Goodwin, Head of Strategic Finance Papers with report Appendices A1-A4 HEADLINES Overview This report provides the Council's draft outturn financial position and performance against the 2025/26 revenue and capital budgets. At Outturn, the Council is reporting an overspend of £28.985m, representing a positive movement of £7.763m on Month 10:  £3.868m of this reduction is linked to underspending in Service Departments.  £3.895m is a positive variance in corporate budgets of which the vast majority is linked to timing differences of Collection Fund transactions which become payable in 2026/27 and 2027/28. £7.350m of this difference will be used to rebuild Earmarked Reserves used to balance the final 2024/25 Outturn position resulting in a net £0.413m reduction in the overall outtu rn position to a £36.335m overspend. The 2025/6 revenue monitorin g po sition was stabilised from month 6 due to the work being undertaken in the Finance Modernisation Programme , including increased focus on financial compliance to process. Over a number of years, the Council has adopted a strategy of doing all it can to maintain quality services whilst keeping the costs to residents as low as possible, through transforming how the Council operates and its consequent costs. However, like many local authorities across the country Hillingdon is facing financial challenges related to the increase of inflation rates across all of its service areas, utilities and running costs, as well as increases in demands for services following the Covid-19 pandemic and the impact of the recent Government National Insurance increase. As these pressures intensified, the Council undertook a detailed review of its financial position and the sustainability of its medium-term finances. In the summer of 2025, the council’s extern al auditors issued a Section 24 Statement citing concerns across: financial governance and oversight; budget setting and savings realism; financial Cabinet Report – 25 June 2026 (Part 1 – Public) management capacity; monitoring and accountability; and medium -term sustainability planning. This had already been identified by the council and actions had been taken to address these issues. Significant improvements are now underway. The council’s Governance Review Improvement Plan (GRIP) and the Finance Modernisation Programme (FMP), both introduced at the s tart of 2025, are strengthening financial controls, accountability and oversight. As a consequence of the low level of reserves in the 2024/25 accounts and the 2025/26 reported financial position, the council successfully applied to the Ministry of Housing, Communities and Local Government (MHCLG) for Exceptional Financial Support (EFS) to manage the curr ent challenge. Without EFS, the council could not have set a legally balanced budget in 2026/27. The Dedicated Schools Grant (DSG) outturn position presents a reduced in-year deficit for 2025/26 in respect of the High Needs Block, decreasing from £14.8m to £10.2m (a net reduction of £4.6m on 2024/25). This reflects the impact of a range of interventions that have partially mitigated ongoing demand pressures within the High Needs Block. The overall in -year deficit is £9.9m, resulting in a cumulative DSG de ficit of £75.8m. The Department for Education (DfE) has announced the introduction of the High Needs Stability Grant, which is expected to fund up to 90% of the cumulative DSG deficit, subject to the submission and approval of a robust SEND reform plan, payment is expected in Autumn 2026. Based on the DfE’s indicative methodology, the Council anticipates receiving approximately £71.8m. This would leave a residual deficit of approximately £4.0m to be managed by the Council. The Housing Revenue Account (HRA) is reporting a breakeven position at outturn, with all service areas within the ringfence ultimately funded with the available rent yield, with a shortfall in rent being offset by a reduced capital financing cost. The Capital Programme Outturn position is £252.9m against a Budget of £343.6m. This is split between:  General Fund - £74.5m against a budget of £124.5m  Housing Revenue Account - £178.4m against a budget of £219.1m Putting our Residents First Delivering on the Council Strategy 2022-2026 This report supports our ambition for residents / the Council of: An efficient, well-run, digital-enabled council working with partners to deliver services to improve the lives of all our residents This report supports our commitments to residents of: A Digital-Enabled, Modern, Well-Run Council Financial Cost N/A Relevant Committee Audit, Finance & Performance Ward(s) All Cabinet Report – 25 June 2026 (Part 1 – Public) RECOMMENDATIONS That the Cabinet: 1. Note the 2025/26 General Fund Overview as set out in Section 1 of the report; 2. Note the 2025/26 Revenue Outturn position as set out in Section 2 of the report; 3. Note the 2025/26 Capital Outturn position as set out in Section 2 of the report; 4. Approve the General Fund Capital Budgets to be carried forward into 2026/27 as per Section 2 of the Report; 5. Approve the updated Reserves Levels as set out in Section 2; 6. Note the HRA Outturn Position and Carry Forward Amounts as set out in Section 2 of the Report; 7. Approve the bring ing forward of £11.6m of funding from 2027/28 (where there is £39.3m budgeted) into 2026/27 to allow for the demolition works on the Hayes Regeneration Scheme; 8. Note the DSG Deficit Position as set out in Section 2 of the Report; 9. Note the final Treasury Position for the year (including the Prudential Indicators). 10. Appoint Cabinet Members to the following bodies; a) Shareholder Committee - Cllr Steve Tuckwell (Chair); Cllr Richard Mills (Vice - Chair); Cllr Eddie Lavery; Cllr Susan O’Brien and Cllr Nick Denys. b) West London Economic Prosperity Board – Cllr Steve Tuckwell (re- appointment); 11. Approve acceptance of £310,000 of grant funding from the Violence Reduction Unit (VRU) for 2026/27 and 2027/28 for direct investment in prevention activity for children at risk of suspension and exclusion from school. 12. Approve acceptance of £255,000 of capital grant funding from the GLA’s Green Roots Fund, for the delivery of three river restoration projects within the Yeading Brook/Crane Catchment. 13. Approve acceptance of DfE Arts Council Music Hub £147k Capital Grant for musical instruments, equipment, and technology to benefit children and young people. 14. Approve the acceptance of capital grant funding paid by MHCLG from Round 4 of the Local Authority Housing Fund, with Hillingdon’s allocation totalling £14,713,800. Reasons for recommendation 1. The reason for Recommendations 1 to 9 is to ensure that the Council achieves its budgetary objectives, providing Cabinet with the update on performance at year end 2025/26 against budgets approved by Council on 27 February 2025. An update on the Council's Treasury Management activities is included within this section of the report. Recommendation 10 updates, following the election, the Council’s representation on: i. The Shareholder Committee, a formal Cabinet sub -committee which discharges the shareholder functions in respect of the Council’s two wholly -owned companies: Hillingdon First Ltd. and The Hillingdon Care Company. ii. The West London Economic Prosperity Board, a formal joint committee of West London boroughs, where the Term of Office expired at the election. 2. As both bodies relate to executive functions, appointments must be made by the Cabinet Cabinet Report – 25 June 2026 (Part 1 – Public) 3. Recommendation 11 requests acceptance of grant funding that has been o ffered by the VRU for the period April 2026 to March 2028 which, if accepted by Cabinet, will be utilised to cover the staffing costs associated with targeted prevention initiatives that reduce exclusions and serious youth violence, improve engagement in e ducation, and support vulnerable children and families who are affected by school exclusion. The funding enables collaboration with schools and partners to provide early intervention and tailored support, helping young people stay in education and reducing the need for statutory intervention. 4. Recommendation 12 requests acceptance of capital grant funding for three schemes (Grange Park, Queens Walk East and Queens Walk West) , with these projects aiming to restore natural river processes, enhance biodiversity , improve water quality, and strengthen climate resilience across the Yeading Brook corridor. They will also create new opportunities for community engagement, volunteering, and long -term stewardship through partners including ZSL and local residents’ groups. 5. Recommendation 13 requests acceptance of capital funding from the Department of Education (DfE) to fund music related services which includes adapted / adaptive instruments for children and young people with SEND and provision for music technology. 6. Recommendation 14 requests acceptance of capital funding of £14.7m from the MHCLG under the Local Authority Housing Fund initiative which runs from 2026/27 to 2029/30 aiming to increase affordable housing across the country , with this funding linked to the Council’s Housing Revenue Account and temporary accommodation strategies. Alternative options considered / risk management 7. There are no other options proposed for consideration. Committee comments None at this stage. The Audit, Finance & Performance Committee will consider the Outturn position at their meeting on 15 July 2026, as part of their overview and scrutiny role. Legal There is no specific statutory requirement prescribing the timing or content of in -year budget monitoring reports to Cabinet. However, under section 151 of the Local Government Act 1972, the Council is required to make proper arrangements for the administration of its financial affairs, and the Council’s s151 Officer has an ongoing duty to ensure that the Council maintains a balanced budget. In practice, regular budget monitoring reports to Members form a key part of demonstrating compliance with these duties, consistent with the expectations of the CIPFA Financial Management Code and external audit. It is accordingly in keeping with the principles of good governance for the Outturn report to be brought to Cabinet, in relation to the Council’s budget position. Any relevant legal implications are referred to elsewhere within the body of this report. Cabinet Report – 25 June 2026 (Part 1 – Public) SECTION 1 - GENERAL FUND OVERVIEW SUMMARY GENERAL FUND REVENUE 8. The General Fund Outturn position reports an overspend of £ 28.985m representing a improved position of £ 7.763m from the Month 10 update presented to Cabinet . This improvement is split between departmental budgets with a £3.868m improvement and Corporate Budgets with a £3.985m improvement. 9. The Council has continued to work through the Finance Modernisation Programme, which is focused on modernising financial processes, capability an d understanding across the Council, bringing in best practice and supporting the Council in its work to improve its financial position, this process is being done with partners Grant Thornton with oversight from the Local Government Association. 10. The below table sets out the 2025/26 outturn position against the Month 10 Cabinet update. Table 1 Revenue Outturn Position 11. This position is £7.763m less than the previously forecast overspend position that has been reported since Month 6. 12. £3.868 is an improvement to the departmental position, for which the det ail is set out in Section 2. This includes the reallocation of funding from corporate budgets to match grant usage. This underspend position is a 0.4% improvement against the gross budget a nd a 1.4% improvement against the net budget. Cabinet Report – 25 June 2026 (Part 1 – Public) 13. £3.895m is an improvement in corporate budgets of which the vast majority is linked to timing differences of Collection Fund transactions which become payable in 2026/27 and 2027/28. As such this “underspend” will need to be transferred to an Earmarked Reserve. 14. £7.350m of this difference will be used to rebuild Earmarked Reserves used to balance the final 2024/25 Outturn position resulting in a net £0.413m reduction in the overall outturn position to a £36.335m overspend. This is set out in more detail in paragraph 23. 15. The Government’s Fair Funding Review 2.0 s hows that from 2026/27 funding will migrate outwards from Inner London boroughs to Outer London, with this review having been delayed due to the pandemic. Whilst it is recognised that the Council has had to operate within the funding settlement for 2025/26, it is also recognised that should the Fair Funding Review have taken place when originally planned, the Council’s position is likely to have been significantly more favourable. 16. The outcome has produced new allocations for the three -year period from 2026/27. The council was pleased that Hillingdon’s funding needs have at last been recognised, with Core Spending Power rising from £290.3 million in 2025/26 to £395.6 million in 2028/29. However, this increase will be phased in over three year and assumes the full 4.99 % Council Tax increases over this period. 17. The closing Reserves Position for 2024/25 is set out in the table below. These reserves were deemed to be inadequate by the Section 151 Officer, and the Council entered conversations with MHCLG around the possibility of seeking Exceptional Financial Support (EFS) from the Government. Table 2 – Closing 2024/25 Reserve Position 18. Following the negotiations set out in paragraph 17 above, the Government were “minded to” award the Council the following Exceptional Financial Support (EFS) amounts: i. 2025/26 - £88m ii. 2026/27 - £62m iii. 2027/28 - £23m 19. The Council has submitted data to MHCLG for validation of the “minded to” amounts but in common with other Councils in the process is still awaiting a final response. 20. The 2025/26 Outturn position assumed £40m to rebuild reserves, £40m to cover the £2025/26 overspend position and £4m of headroom. Cabinet Report – 25 June 2026 (Part 1 – Public) 21. The 2025/6 Outturn position is £28.985m, representing a positive movement of £7.763m on Month 10. As part of the 2024/25 closure process, £9.329m of Earmarked Reserves were used to support the General Fund with the view that these would need to be built back as part of the 2025/26 closure process. £7.350m of this positive movement will be used to build back the following Earmarked Reserves which were significantly reduced as part of the 2024/25 closure process: i. Business Rates Smoothing Reserve (Payments in 26/27 & 27/28) - £3.500m ii. Insurance Reserve - £2.000m iii. Planning Reserves - £0.850m iv. Risk Reserves (inflation Pressures) - £1.000m 22. The Council’s outturn position applies £ 83m of the EFS amount . This represents a £5m reduction of the initial “minded to” decision and will save the Council circa £0.4m a year in debt charges. This outturn position builds back the following reserves: i. General Fund - £40.000m in total ii. Final Overspend Position - £28.985m iii. Rebuilding of Earmarked Reserves as per Paragraph 14 - £7.350m iv. Rebuilding of Risk Reserve to ensure the Council has the funds to transform and move to a sustainable budget - £6.665m 23. The closing Reserves Position is as follows: Table 3 – Closing 2025/26 Reserves Position 24. It should be noted that comparing these total reserves figure (General Fund plus Earmarked Reserves) of £67.821m, it is still significantly less than the average figure across London as set out in their 2024/25 Accounts of £137.7m (£18.6m General Fund, £119.1m Earmarked Reserves). This does not include the Schools Reserve. 25. The departmental contributions to and from reserves are set out in Appendix A1. Cabinet Report – 25 June 2026 (Part 1 – Public) Capital Position Summary – General Fund 26. The General Fund capital position was a spend of £74.4m against a budget of £124.5m - an underspend position of £ 50.0m. The outturn of £7 4.4m compares to a forecast at Period 9 (February Cabinet report) of £76.6m . More detail on specific positions are set out in the Capital section. 27. Due to this level of underspending, there are a signif icant number of projects where the business is requesting to carry forward amounts into the 2026/27 financial year. These items are set out in Appendix A 1 for approval and amount to £ 22.9m (previously forecast and reported in Period 9 to be £50.0m). The remainder of the amounts will be approved as part of the M2 2026/.27 Monitoring Report in July. HRA Summary 28. The H ousing Revenue Account (H RA) is reporting a Break -Even po sition. The 2025/26 closing HRA General Balance is £15.0m, in line with the target level set out in the Council’s budget strategy. 29. The HRA Capital Programme outturn position for 2025/26 was £178.4m against an approved budget of £219.1m, resulting in a variance of £40.8m. The £178.4m outturn compares to the Period 9 forecast of £186.4m . Part of the variance relates to project rephasing, with £8.1m slipping into 2026/27 as acquisitions are legally completed, and constructed houses move through handover stage Dedicated Schools Grant and Schools Summary 30. The Dedicated Schools Grant (DSG) recorded an in -year deficit of £9.9m at the end of 2025/26, a marked improvement from the £15.0m deficit in 2024/25, reflecting the impact of mitigation measures implemented by the Council. Howe ver, ongoing pressures , primarily within the High Needs Block due to rising demand, placement costs, and insufficient funding from the Department for Education (DfE) , continue to dr ive overspending. As a result, the cumulative DSG deficit increased to £75. 8m by 31 March 2026. Although statutory override remains in place until March 2028 to ringfence this deficit and protect general reserves, the scale of the shortfall highlights continued financial challenges within SEND provision. 31. Encouragingly, the DfE ha s announced a High Needs Stability Grant, which could cover up to 90% of the Council’s cumulative DSG deficit, subject to approval of a robust SEND reform plan, with funding expected in Autumn 2026. Based on current estimates, this would provide approximately £71.8m, leaving a residual pressure of around £4.0m for the Council to manage. Collection Fund Position 32. The Collection Fund is reporting an overall deficit of £7.4m at outturn, an adverse movement from Month 10 of £2.4m . This is mainly driven by the prior year deficit on Council Tax of Cabinet Report – 25 June 2026 (Part 1 – Public) £10.7m included within the position , with Council Tax and Business Rates reporting in -year surpluses of £1.86m and £0.784m respectively. 33. However, the Business Rates position includes a shortfall in Business Rates income of £4.8m which reflects the difficult economic conditions many businesses in the borough are experiencing, with a higher income than expected from the Section 31 Grant of £0.825m and an underspend on budgeted Growth Levy of £4.756m driving the overall Business Rates surplus. 34. Lower business rate income for 2025/26 was anticipated in the 2026/27 budget setting process and the shortfall itself is deferred via the Collection Fund Adjustment Account . However, the Levy on Business Rate growth in 2025/26 fell as the result of the in-year shortfall and is not deferred by the Collection Fund Adjustment Account. The differences in required accounting treatment therefore result in a lower Levy in the 2025/26 accounts, whereas the deficit does not impact the General Fund until future years. Treasury Position 35. External borrowing was required during 2025/26 to finance the capital programme and ensure liquidity was maintained. The total loan portfolio increased by £140.03m, leaving a balance at year-end of £657.51m (GF £317.39m, HRA £340.12m) 36. Over the year the Council’s loan portfolio had an average interest rate of 4.07% (4.44% 2024/25). Interest paid over the year totalled £23.46m (GF £10.54m, HRA £12.92m), an increase of £6.94m from 2024/25 due to the increasing level of debt. 37. The investment income return for the year on day -to-day operational treasury balances excluding strategic pooled funds was 4.02% (4.93% 2024/25), resulting in income for 2025/26 of £2,066k (£2,349k in 2024/25), the reduction due to falling market interest rates. 38. The Council can confirm that it complied with the Treasury Indicators for 2025/26 per the Prudential Code, set in February 2025 as part of the Council’s Treasury Management Strategy. Cabinet Report – 25 June 2026 (Part 1 – Public) SECTION 2 - DETAIL 2025/26 Revenue Outturn Position Service and Corporate Operating Budgets 39. The following are the major changes since P10: Finance - £0.340m Improvement since P10 Statutory Accounts, Investments and Pensions - £1.201m Favourable. Mainly due to favourable movements on interest (£454k) and investment returns (£841k) offset by a contribution to Earmarked Reserves for the Finance Modernisation Programme (£350k) Strategic & Operational Finance - £0.608m Adverse. Adverse movement of £617k reflecting agency staffing movements between Strategic & Operations of £35k, £66.7k Public Health Grant was assumed in staffing, included in recharges and adverse movements on the Housing Benefit Subsidy £460k Strategic Finance - £0.253 Adverse. Mainly due to assumed recharges to HRA (£241k) and Schools (£100k), which could not be realised. Adult Social Care £0.541m Adverse movement since P10 Dir of Adult Social Services - £3.200m Favourable o £1.55m Fav - Integrated Care Board (Health) contribution for community equipment not forecast o £0.700m Fav - Minimum NHS contribution income to Better Care Fund not forecast o £0.650m Fav - Duplicate forecast for care cost inflation o £0.300m Fav - Direct Payment clawbacks higher than forecast Safeguarding £0.600m Favourable - Integrated Care Board income for community equipment overperformance not forecast ASC Placements - £1.300m Favourable- o £0.900m Fav - Direct Payment clawbacks higher than forecast o £0.400m Fav - Legal provision release, write-off budgets not being utilised and the increase in bad debt provision being less than forecast Hospital and Localities - £0.300m Adverse - Expenditure relating to minimum NHS contribution income to Better Care Fund not forecast Public Health Budget - £1.343m Adverse - Previous forecasts did not include full range of relevant codes £4.00m Movement to Earmarked Reserves Cabinet Report – 25 June 2026 (Part 1 – Public) Children & Young People - £0.711m Improvement since P10 This Favourable improvement is mainly attributable to a £0.2m underspend on legal costs, alongside a reduction in Cared for Children placement costs. The reduction in placement costs reflects increased recharges received from the ICB and children moving from higher-cost external placements into in-house residential provision. This shift supports the Council’s wider sufficiency and value-for-money strategy, reducing reliance on expensive external placements while improving cost control and placement stability for children. Place - £2.256m Improvement since P10 Property Services - £0.539m adverse movement driven by: o £0.400m reduction in admin fee income driven by fewer property disposals than forecast at M10. o £0.100m S106 funding was forecasted in M10, however in M12 it was identified this funding stream had been exhausted. Operational Assets - £0.168m favourable movement driven by HRA funding of FM works, previously thought to be charged to Operational Assets. Environmental and Leisure - £2.236m favourable movement driven by: o -£1.300m increased income for EPR grant - previously held centrally. o -£0.600m increased income from Breakspear Crematorium, due to increased cremations and recovery of previously written off debt. o -£0.150m staffing underspend in Waste. o -£0.100m increased Household Refuse & Recycling Centre trade income. o -£0.063m reduction of Power Day Waste Weekends rental costs Planning, Regeneration and Environment - '£0.391m favourable movement due to higher-than-normal pre-applications and minor applications received in M12. Homes and Communities - £2.297m Improvement since P10 Housing - £1.907m Favourable o B&B Headlease payable to Landlords: The month 10 forecast included outstanding invoices dating back to the 1st April 2024 (2 Years). The approach at 2024-25 close of accounts was to only accrue for invoices due in the current financial year. This was a change in approach from previous years and satisfied the auditors. The accrual at year end 2025/26 was therefore for invoices due in 2025/26 only, creating a favourable movement of £765k o B&B Bad Debt: The Month 10 forecast included an adjustment for rent charged on Chagos Rent accounts. This client group is under R99 - Resettlement and Strategic Partnership, not R81 Housing. There is a contra movement under R99 £500k o Recharge to section 106 funding - £500k favourable o Year reconciliation of rental income from the Housing System to the GL - £138k favourable Cabinet Report – 25 June 2026 (Part 1 – Public) Community Safety and Enforcement - 'Favourable movement £0.548m driven by: o -£0.300m increased income in the Imported Food Unit. o -£0.250m reimbursement of costs from the Landlord for the Waking Watch. o -£0.200m improvement in Parking non-staff costs due to forecast spend not materialising. o Offsetting the following pressures: o -£0.120m reduced funding in the CCTV service; £0.070m costs not recharged to the HRA & £0.050m Transformation funding not utilised. o -£0.100m pressure due to the M10 forecast excluding Proceeds of Crime Act income which is shared with the Metropolitan Police. Community Services - 'Favourable movement of £0.407m driven by: o -£0.179m favourable movement for Battle of Britain Bunker made up of £0.111m in reduced non-staff costs and a £0.068m increase in visitor income. o -£0.109m underspend in the Leisure Centre due to a reduction in building maintenance costs o £0.154m Libraries underspend due to staffing costs recharged to the Household Support Fund, agreed in M12. Resettlement and Strategic Partnership - £565k Adverse o B&B Headlease payable to Landlords: The month 10 forecast included outstanding invoices dating back to the 1st April 2024 (2 Years). The approach at 2024-25 close of accounts was to only accrue for invoices due in the current financial year. This was a change in approach from previous years and satisfied the auditors. The accrual at year end 2025/26 was therefore for invoices due in 2025/26 only, creating a favourable movement of £139k o B&B Bad Debt (£500k): The Month 10 forecast included an adjustment for rent charged on Chagos Rent accounts under R81 Housing. This client group is under R99 - Resettlement and Strategic Partnership, not R81 Housing. There is a contra movement under R81. o B&B Bad Debt (£195k): Final year end calculation and reconciliation of the provision held on the balance sheet Chief Operating Officer - £1.071m Adverse movement since P10 Procurement – adverse movement £587k. Reduction in flexible use of capital receipts £349k forecast in M10, £270k Provision created for Procurement savings (Planned funding from flexible use of capital receipts, however not forecast in M10). Transformation – adverse movement £226k, reduction in flexible use of capital receipts of £241k offset by staffing underspend and £4k income from other services (Crematorium) Technology – favourable movement of £95k, an underspend of £480k across contracts and licences offset by £284k reduction in use of flexible capital receipts and £86k reduction in recharge from capital. Cabinet Report – 25 June 2026 (Part 1 – Public) Digital – Adverse movement £381k, £355k reduction in the use of flexible capital receipts, £28k reduction in recharges to capital offset by £2.5k favourable non staffing movement Resident Hub – favourable movement £28k, consisting of £36k underspend on various none staffing expenditure, offset by £3k on Staffing and £4k on income ** Note that during the year the council changed its approach to transformation funding reflecting its funding position and most transformation where required being funded through operational budgets. Chief Executive £0.124m Adverse movement since P10 Democratic Services – favourable movement £60k. Over-achieved on Income, underspent on various areas of material purchase and supplies and services and a small underspend on staffing. Legal – adverse movement £108k. £203k reduction in use of flexible capital receipts. Underspend on computer software and Counsel fees, under recovery on recharges compared to M10 forecast, underspend on staffing. Human Resources –Adverse movement £103k. £187k reduction in use of flexible capital receipts offset by £31k underspend on advertising appointments and £22k underspend on L&D. Communications – favourable movement £27k Minor underspends across various non staffing £20k and additional income of £7k (Hillingdon People) Savings Tracker 40. The final savings tracker for 2025/26 is set out below: Table 4: Savings Tracker Cabinet Report – 25 June 2026 (Part 1 – Public) 41. At outturn, £17.8m (46%) of the savings and interventions are being recorded as banked, with a further £1.2m (3%) on track for delivery, with a further £1.1m (3%) being at initial stages of delivery. In addition, £4.1m (11%) are being reported as having pote ntial challenges in delivery, with alternative delivery methods being delivered in-year where appropriate, with the savings ultimately expected to be delivered in full. A further £14.4m of savings have been written out of the Council’s budget from 2025/26. It should be noted that the 2026/27 budget approved by Council in February 2026 built back £61.3m into base budget s. This ensured that the starting point for managers to manage their budgets reflected the financial position of the past 2 years and known pressures in 2026/27. This difference was funded via the EFS application. Transformation savings 42. As part of the 2025/26 budget process, transformation initiatives of £17m, to be funded from Capital receipts were agreed. 43. These initiatives were reviewed as part of the 2025/26 monthly monitoring process , and the month 6 monitoring set out that to support the delivery of the savings programme, the Council would be utilising £5.7m of capital receipts to fund transformation costs, in line with Government guidance. This was a significant reduction over what was agreed in the budget and reflected the Councils financial position and the availability and prioritisation of resources. 44. The final outturn position is that transformation initiatives totalled £3.642m - with these being funded from Capital Receipts.: i. Finance - £0.442m ii. Adults and Health - £0.092m iii. Children, Families and Young People - £0.695m iv. Place - £0.075m v. Homes and Communities - £0.492m vi. Chief Operating Officer - £1,800m vii. Chief Executive - £0.046m Cabinet Report – 25 June 2026 (Part 1 – Public) 2025/26 Capital outturn position including Carried Forward Amounts 45. The Council General Fund final capital outturn was £74.5m against a budget of £ 124.5m. This is £2m reduction on the position reported at Period 9. Full detail of the Capital Programme is set out in Appendix A2. 46. As at year-end, a total variance of £ 50.0m is reported against the 202 5/26 approved capital programme. This comprises a cost variance underspend of £1.5m and a rephasing proposed slippage variance of £48.5m into 2026/27. These variances are presented in Table 5 and those 100% grant funded are recommended to Cabinet for approval , including proposed rephasing into 2026/27. 47. These totals include rephasing amounts of which i. £22.9m are fully funded by Grant (Green in Appendix A2) ii. £12.4m are partially funded by Grant (Yellow in Appendix A2) iii. £13.2m are funded from Council Resources. 48. It is proposed that those items that are 100% funded by Grant (listed in Appendix A2) are approved to be carried forward, but those items that are partially Grant funded or funded from Council resources are reviewed over the next month and a final decision made as part of the 2026/27 Month 2 Monitoring which will be presented in July 49. Across the five-year programme to 2028/29, the General Fund Capital Programme is forecast to remain within the overall approved budget envelope, with variances reflecting the timing of expenditure rather than permanent underspends, except where specific cost pressures have been formally declared. Table 5 General Fund Capital Programme Summary Cabinet Report – 25 June 2026 (Part 1 – Public) 50. The principal risks and variances associated with this position are summarised in the following paragraphs by Cabinet Portfolio: i. Resident’s Services – Programmes within the Resident’s Services Directorate report a total variance of £ 45.2m in 2025/26, comprising a rephasing variance of £44.5m and a cost variance of £ 0.7m underspend. The key rephasing is primarily driven by key schemes, including Hillingdon Water Sports Facility of (£7.0), Schools Building Condition Works (£6. 3), D.F.G (£4.4), Harefield Family Hub new building (£2.2m) and the Special Resource Provision programme (£10.1m). Further significant rephasing is reported on variance in Investment in Home Care Capacity (£3.3m), Secondary school expansions (£4.8m) and Otterfield Road Library (£1.4m), alongside (£5.0m) of rephasing acro ss several smaller schemes. This position is partially offset by £ 6.8m overspend comprising of Civic Centre transformation, Jubilee Leisure Centre and Carbon initiatives schemes which are broadly offset by (£7.5m) of underspend across a range of other projects . All ongoing major project are proposed for rephasing into 2026/27, with major schemes expected to deliver within their approved budget. Community & Environment comprise of one capital scheme with a small capital budget of £0.2m, the scheme reported an underspend of £0.1m in 2025/26. ii. Corporate Services – This directorate reports a total variance of £5.0m for 2025/26, comprising a cost variance of £1.1m underspend and a rephasing variance of £3.9m. The cost variance is primarily driven by a (£ 1.1m) underspend within the Corporate Technology and Innovation Programme with a further (£3.9m) of rephasing into 2026/7 reflecting changes in delivery timelines. iii. Finance – The Finance & Transformation portfolio reports a net variance of £0.9m in 2025/26, comprising a £2.4m underspend relating to the Purchase of Vehicles offset by a overspend of £1.5m on the Devolved Capital to Schools capital scheme. iv. Adult Service and Health – The Adult Services and Health reports a cost var iance of £1.2m for 2025/26 reflecting an overspend on the Equipment Capitalisation – Social scheme. Cabinet Report – 25 June 2026 (Part 1 – Public) Capital Financing - General Fund Table 6: Capital Financing 51. Table 6 provides the financing position for the General Fund Capital Programme for 2025/26. Total financing applied during the year was £7 4.5m, compared to the approved budget of £124.5m. This reflects the wider rephasing of capital projects into future years, with financing requirements deferred in line with forecast project delivery. 52. Financing in 202 5/26 was primarily sourced from Prudential Borrowing (£ 52.7m), external Grants & Contributions (£ 16.5m), Section 106 (£2.6m), and Community Infrastructure Levy (CIL) funding (£2.7m). Cabinet Report – 25 June 2026 (Part 1 – Public) HRA Outturn Position 53. The Housing Revenue Account (HRA) is reporting a breakeven position in line with the Month 10 update. The 2025/26 closing HRA General Balance is £15.0m, in line with the target level set out in the Council’s budget strategy. The table below presents key variances after a £11.7m transfer to balances that contributes to financing the capital programme. Table 7: Housing Revenue Account 54. At Month 12 rental income and other incomes report a £0.1m pressure. An additional 291 homes that were acquired or built were let to tenants t hat increased rental income. Rental income was reduced by 99 units sold under Right to Buy (RTB) that was 74 units higher than budget following the Government change to RTB rules in November 2024. The volume and duration of voids were higher than budget as homes acquired needed repairs and refurbishment to meet decent homes standards. 55. The HRA Operating Costs Budget is £38.8m and at outturn posted a £2.8m overspend. The operational variance related to service improvements undertaken to meet regulator updates, and also to meet the demand for more social housing with a focus on providing more stable housing for homeless clients. 56. The detail behind the service delivery of the blocks included in table 7 are as follows: i. Operational Assets budget funds the services provided for repairs and maintenance, void repairs, compliance and inspections. Cabinet Report – 25 June 2026 (Part 1 – Public) ii. The Director of Housing budget includes tenancy management and tenants’ services. The budgets include utility costs, and these will continue to be monitored given the volatility of the electricity and gas markets in recent times. iii. The Other Service Areas budget includes the Careline contract, HRA specific ICT costs and the revenue regeneration costs. iv. The Contribution to Shared Services budget includes the development and risk contingency, overheads and corporate and democratic core charges, and the bad debt provision. 57. The MTFS savings target was £1.0m with this saving not being delivered by virtue of the Council’s general fund savings against support services undergoing transformation th at remains in progress. Notably the HRA consumed more support services as it also began its own improvement programmes, hence the recharge to the HRA for these support services could not be reduced. 58. As at Month 12 the capital programme financing budget of £46.9m is reporting an underspend of £2.7m. Depreciation was £0.7m under budget as work to stock and higher than average volume of acquisitions took effect. Revenue contributions to fund the HRA capital programme was £3.7m under budget in line with reduc ed expenditure. Interest on borrowing was a net £2.3m over budget as loans that had been refinanced were at higher interest rates. HRA Capital Expenditure 59. Table 8 sets out the HRA Capital Programme outturn position for 2025/26. Total expenditure for the year was £178.4m against an approved budget of £219.1m, resulting in a variance of £40.8m. Part of the variance relates to project rephasing, with £8.1m slipping into 2026/27 as acquisitions are legally completed, and constructed houses move through handover stage. The rephased expenditure is recommended for carry forward into 2026/27, reflecting the Council’s continued commitment to support the delivery of decent, a ffordable housing. Over the five-year period, the programme tracks close to the approved £549.2m budget. Table 8: HRA Capital Expenditure Cabinet Report – 25 June 2026 (Part 1 – Public) 60. HRA capital programme supports acquisitions, new build and investment in the Council’s existing stock. An additional 291 homes were delivered by March 2026, with 219 acquisitions, 42 buybacks, and 30 new builds from the Hayes regeneration scheme. The underspend in major projects is due to lack of supply of suitable properties that match tenancy profiles. Works to stocks underspend is related to reconfiguration of cyclical maintenance and replacement programmes as the high volume of acquisitions absorbed internal and external contractor capacities. 61. Hayes Estates Regeneration scheme was reprofiled to revised del ivery timelines, with construction handover of 30 units under Hayes Town Centre Phase 1 in Autumn 2025. This will be followed closely with 80 units handed over by Summer 2026. Future phases of this regeneration scheme were approved by Council in February 2 026 that w as to deliver over 500 units by 2032/33. 62. However, the regeneration scheme phases are recommended to be brought forward to safeguard the significant grants received from the GLA to finance costs. Also, there is the potential to save £10m on the overall construction costs of the Hayes Regeneration Scheme if demolition begins in 2026/27 under contract. As such, it is requested that Members approve the bringing forward of £11.6m of funding from 2027/28 (where there is £39.3m budgeted) into 2026/27 to allow for the demolition works to take place in 2026/27. 63. The impact of rephasing Hayes Regeneration scheme and the addition of Local Affordable Housing Fund Release 4 on the MTFS is to increase expenditure by £68.95m over the five years. Grant funding is estimated to increase by £15. 16m, and prudential borrowing is estimated to rise by £35.82m. The income multiplier exceeds the threshold by rising to 5.2 in 2029/30 compared to being below the threshold in the February approved plan. Where costs are contained within the proposed revised MTFS envelope the breach for one year could be considered to be within the risk tolerance for the Council. 64. Investment in the existing stock through the Works to Stock programmes was under budget. Cyclical maintenance was on profile; however, the Green Homes initiatives, adaptations and conversions or extensions were under profile. Rephasing has been undertaken to reflect the timing of planned works in the 2026/27 MTFS. Full details of the programme are set out in Appendix A3. HRA Capital Financing 65. Table 9 outlines the HRA capital financing position for 2025/26. Total financing applied in - year amounted to £178.4m, against the approved budget of £219.1m, reflecting a variance of £40.7m. Rephasing of £8.1m is recommended for carry forward into 2026/27 to support the Council’s ongoing delivery of decent affordable housing. Cabinet Report – 25 June 2026 (Part 1 – Public) Table 9: HRA Capital Financing 66. The programme continues to be predominantly financed by external grants and prudential borrowing, supplemented by revenue contributions and capital receipts. The Council’s financing strategy remains focused on maximising external funding streams wherever possible before deploying internal resources, ensuring best use of grant funding opportunities to reduce borrowing requirements. 67. Over the five -year period, the HRA financing plan remains balanced, with total resources forecast to align to the approved programme value of £508.5m. The service continues to actively pursue grant opportunities, particularly to support sustainability and energy efficiency upgrades across the housing stock, while ensuring revenue and borrowing contributions are optimised to support the broader housing investment strategy. Cabinet Report – 25 June 2026 (Part 1 – Public) DSG Deficit Position 68. The Dedicated Schools Grant (DSG) total Block for the Maintained Schools is reporting an in-year deficit of £9.9m at outturn, representing a significant improvement from the £15.0 reported at outturn 2024/25 as a result of a broad range of positive measures being deployed by the Council. The in -year deficit is largely driven by High Needs placement demand and cost pressures which continue to be significantly underfunded in the DSG settlement that the authority receives from the DfE. This position means that the cumulative deficit carried forward to 2026/27 is £75.8m 69. There is currently a time -limited statutory override in place until 31 March 2028 effectively keeping the Schools Budget deficit behind a ringfence which ensures that this deficit does not impact upon general reserves 70. The Department for Education (DfE) has announced the introduction of the High Needs Stability Grant, which is expected to fund up to 90% of the cumulative DSG deficit, subject to the submission and approval of a robust SEND reform plan, payment is expected in Autumn 2026. Based on the DfE’s indicative methodology, the Council anticipates receiving approximately £71.8m. This would leave a residual deficit of approximately £4.0m to be managed by the Council. Schools Budget 71. The final o utturn for the Dedicated Schools Grant (DSG) in the 2025/26 financial year indicates an overspend of £9.9 million, predominantly attributable to sustained demand pressures within High Needs placements 72. This represents a 34% reduction in the overspend compa red to the previous year, reflecting a positive trajectory in financial performance and the impact of mitigation strategies implemented during the year. 73. Despite this improvement, the cumulative DSG deficit as at 31 March 2026 stands at £75.8 million, underscoring the ongoing financial challenges within the High Needs Block and the need for continued strategic oversight and intervention. Cabinet Report – 25 June 2026 (Part 1 – Public) Table 10: DSG Income and Expenditure Summary Dedicated Schools Grant Income (nil variance) 74. There was no material difference in the amount of DSG received by the LA from the DfE compared to the final DSG allocation due. High Needs Block (£10.2m Overspend) 75. The overspend reflects ongoing pressures in the cost of High Needs placements, largely driven by inflationary factors which are not reflected in the funding from the DfE. This continues to be the area of DSG with the most significant pressure ending the ye ar with a £10.2m overspend, thus adding significantly to the overall DSG deficit. This position represents an improvement from 2024/25 with the achievements in the efficiency of resource allocation being as a result of the constructive work being undertake n by the service. The outturn for 2025-26 saw the overall DSG deficit increase to £75.8m as the full impact of some of efficiency improvements begin to be felt. This outcome is a significantly better result than expected and is an encouragement of the actions and strategy of the SEND service approach in meeting the needs of pupils with educational needs in the borough. 76. The overspend reflects ongoing pressures in the cost of High Needs placements, largely driven by inflationary factors which are not reflect ed in the funding from the DfE. This continues to be the area of DSG with the most significant pressure ending the year with a £10.2m overspend, thus adding significantly to the overall DSG deficit. This position represents an improvement from 2024/25 with the achievements in the efficiency of resource allocation being as a result of the constructive work being undertaken by the service. The outturn for 2025-26 saw the overall DSG deficit increase to £75.8m as the full impact of some of efficiency improvements begin to be felt. This outcome is a significantly better result than expected and is an encouragement of the actions and strategy of the SEND service approach in meeting the needs of pupils with educational needs in the borough. Cabinet Report – 25 June 2026 (Part 1 – Public) Schools Block (£0.1 underspend) 77. The Schools Block includes all funding paid directly to mainstream schools as part of their delegated budget share, including the funding recouped by the ESFA and paid to mainstream academies. 78. There is also a growth contingency fund which is funded from the Schools Block. Schools that are expanding, in agreement with the local authority, to meet basic need pupil population growth, receive additional funding to provide financial recompense throughout the relevant financial year to cover the cos t of this agreed and planned growth. The underspend is in relation to the growth funding coming in lower than the amount allocated for 2025/26. Early Years Block (£0.2m Underspend) 79. The Early Years Block has delivered an underspend of £0.2m. This comprises a £0.1m underspend against the contingency budget and a further £0.1m underspend within the 4% retained budgets, primarily attributable to staff vacancies within the Early Years advisory team during the year. Central School Services Block (nil variance) 80. The published DSG budget allocations confirmed a 20% decrease in the Central School Services Block provided for historic commitments. The block funding was used for the funding for ongoing responsibilities as well as historic commitments with no variance against budget. Collection Fund 81. A deficit of £7.379m is reported within the Collection Fund at outturn, representing a £2.4m adverse movement from Month 10. Within the Collection Fund, an adverse position is reported within Council Tax of £ 7.391m, with a small surplus of £0.012m within Business Rates. This position is driven by: i. Council Tax is presenting an in -year surplus of £1.86m against a £1 54.1m budget, however a variance of £9.25m on the budgeted prior year deficit takes Council Tax into the overall £7.391m adverse position. ii. Business Rates is presenting an in-year surplus of £0.784m against a £72.1m budget, largely due to higher than anticipated Section 31 grant income of an additional £0.825m and an underspend on the Growth Levy budget of £4.76m. Underachievement of gross Business Rates income of £4.8m and the prior year deficit of £0.772m brings the overall surplus down to £0.012m. 82. As well as a shortfall on Business Rates income, the adverse position is due to the review of Bad Debt Provision based on analysis provided by Capita , who manage Business Rates recovery for Hillingdon, of outstanding debt. This has been mitigated by releasing some of Cabinet Report – 25 June 2026 (Part 1 – Public) the Business Rates Appeals Prov ision held as we anticipate the number of appeals to decrease, since this is the final year that the current Business Rate valuation list is valid. 83. Any surpluses or deficits within the Collection Fund impact on the Council’s future year budgets, with the position reported up to Month 9 impacting on the 202 6/27 saving requirement, leading to £5.5m being included in the Council’s refresh of the budget strategy approved by Cabinet and Council in February 2026, with any further updates between Month 10 and outturn impacting on 2027/28. This position therefore will increase the Council’s gross saving requirement by £2.4m for 2027/28. The salient risks and variances within this position are summarised in the following paragraphs by Cabinet Portfolio. Treasury Management Update as at 31 March 2026 84. External borrowing was required during 202 5/26 to finance capital expenditure and ensure liquidity was maintained. The total loan portfolio increased by £1 40.03m as set out in the table below, leaving a balance at year-end of £657.51m (GF £317.39m, HRA £340.12m). Table 11 - The Borrowing Requirement and Debt Management 85. New loans totalling £100m were taken under the HRA to take advantage of the concessionary PWLB rate for HRA capital financing, of which £20m were five years or less, and £80m was taken over a longer duration. New loans of £250m were taken under the General Fund of which £165.5m were replacing maturing debt including short term temporary local authority loans. Cabinet Report – 25 June 2026 (Part 1 – Public) 86. Over the year the Council’s loan portfolio had an average interest rate of 4.07% (4.44% 2024/25). Interest paid over the year totalled £23.46m (GF £ 10.54m, HRA £12.92m), an increase of £6.94m from 2024/25 due to the increasing level of debt. 87. As set out in the 2026/27 Budget Report in February 2026, the Council required Exceptional Financial Support (EFS) of up to £88m in 2025/26. EFS is not operational capital expenditure on new projects and programmes however it is delivered as a capitalisation directive enabling the Council to effectively treat revenue costs as capital, allowing those costs to be financed by borrowing and resulting in an increase to the Council’s capital financing requirement (CFR) in a similar way to ordinary capital expenditure. 88. The Council’s outturn position requires £83m of the EFS amount to be applied to replenish general balances/reserves. Hence the CFR increases to £761.59m with the inclusion of EFS. (31/3/2025 £586.94m). The balance of £7.74 m in other long-term liabilities reflects leased assets on the balance sheet resulting from IFRS16 lease accounting which became mandatory from 2024/25. The difference between the total CFR and external borrowing levels represents the level of internal borrowing, primarily supported by the Council’s own reserves and working capital. The Council’s underlying future external borrowing requirement, ie the difference between the CFR and total actual external borrowing has reduced by £ 50.6m to £13.3m (before EFS) at the end of the financial year as external borrowing has increased by more than the year-on-year increase in the CFR in 202 5/26. As was the case last year this indicates that previous internal borrowing against reserves and working capital is now requiring to be replaced with external debt in order to maintain liquidity. 89. As at the 31 March 2026, the Council held £544.51m of PWLB debt (£232.39m General Fund and £312.12m HRA) containing a broad range of loan types including both Maturity and EIP loans with fixed rates and with varying maturities. 90. In addition, the Council has £38m of market loans (£10m General Fund and £28m HRA), with £10m loans repaid during the year (£5m General Fund and £5m HRA) where the LOBO (Lenders Option Borrowers Option) loan provider exercised their right to apply a new significantly higher interest rate which was not favourable for the council . These consist of £12m fixed-rate loans and £26m LOBO loans. During the year there was £67.0m of naturally maturing longer term PWLB debt and £133m of local authority temporary borrowing maturities. 91. After declining sharply early in the financial year following the announcement of US tariffs, sentiment in financial markets had improved but equity and bond markets remained volatile throughout. However, the latter part of the period was dominated by the US/Israel war with Iran, which saw equity markets fall sharply, and bond yields rise as concerns over the inflationary impact from sharply higher oil and other commodity prices outweighed the flight - to-quality into government bonds often seen in conflicts. Cabinet Report – 25 June 2026 (Part 1 – Public) 92. The PWLB certainty rate for 10-year maturity loans was 5.38% at the beginning of the period and 5.72% at the end. The lowest available 10-year maturity rate was 5.13% and the highest was 5.88%. Rates for 20-year maturity loans ranged from 5.71% to 6.37% during the period, and 50-year maturity loans from 5.46% to 6.24%. 93. In the first half of the year, the cost of short-term borrowing from other local authorities closely tracked the Base Rate at around 4.15% - 4.30%. However, the second half saw an increase in rates as liquid cash began to reduce across the country, from 4.50% to 4.75 % dependent on start date and duration of borrowing. March saw a steep rise in rates with many councils needing to borrow over the financial year end – rates were between 5.00% to 7.00%. Borrowing Update 94. CIPFA’s 2021 Prudential Code is clear that local aut horities must not borrow to invest primarily for financial return and that it is not prudent for local authorities to make any investment or spending decision that will increase the capital financing requirement, and so may lead to new borrowing, unless di rectly and primarily related to the functions of the Authority. PWLB loans are no longer available to local authorities planning to buy investment assets primarily for yield unless these loans are for refinancing purposes. 95. The Council does not plan to bor row to invest primarily for commercial return and so is unaffected by the changes to the Prudential Code. However, the Council holds a £3.8 m portfolio in commercial investment properties that were purchased prior to the change in the CIPFA Prudential Code. The Council is not actively seeking to increase this type of investment exposure. These assets are not held for normal operational activity but held under long-term commercial leases. 96. A discounted PWLB HRA rate which is 0.4% below the GF certainty rate was made available from 15th June 2023. The availability of this rate has been extended to March 202 7. The discounted rate is to support local authorities borrowing for the Housing Revenue Account and for refinancing existing HRA loans. In 202 5/26 a total of £1 00m new PWLB borrowing accessed this discounted rate, to support financing the HRA capital programme which contains significant budgeted prudential borrowing for new housing developments and th e Hayes regeneration programme. Investment Activity 97. The investment income return for the year on day -to-day operational treasury balances excluding strategic pooled funds was 4.02% (4.93% 2024/25), resulting in income for 2025/26 of £2,066k (£2,349k in 2024/25), the reduction due to falling market interest rates. The table below shows day-to-day operational treasury investment balances on 31st March 202 6 plus strategic pooled funds. Cabinet Report – 25 June 2026 (Part 1 – Public) Table 12 – Investment Activity 98. The weighted average balance of these investments over the year was £66.39m (£62.62m in 2024/25). 99. In keeping with CLG’s Guidance on Investments, during 2024/25 short -term money was placed in instant access Money Market Funds and short-term deposits with the DMADF and occasionally local authorities to ensure liquidity was maintained. Rates payable on these activities were comparable with other medium-term duration deposit options and so there was no opportunity cost in keeping cash liquid. 100. The average return on total investments including strategic pooled funds was 4.09%. Rates being offered on DMADF deposits and Money Market Funds were higher at the beginning of the year, around 4.50%, falling to below 4% due to Bank of England base rate cuts during the year. 101. Security of capital remained the Council’s chief investment objective, and this was maintained by following the Council’s counterparty policy as set out in its Treasury Management Strategy Statement for 202 5/26. Investments during the year included deposits with the Debt Management Office and five local authorities as well as investments in AAA -rated Money Market Funds and Pooled Funds. In addition, instant access balances were held with UK Banks within the Councils counterparty limits. All bank placements held a minimum or higher credit rating of A- for UK counterparties.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Only the start of this long document is shown here. Open the original PDF on LB Hillingdon’s website.

24. Annual Performance Report 2025/26 PDF 164 KB
The Committee received a performance update covering a range of Council services. Members were advised that progress had been made in stabilising homelessness services through additional management capacity and targeted improvement work. Strong performance was also reported in waste collection and recycling, reflecting continued investment in these services. In Children's Services, it was noted that the main challenge remained the increasing cost and complexity of care packages rather than rising demand. Members heard that additional Council-run children's homes had opened, foster carer recruitment had increased and work to reduce the Dedicated Schools Grant deficit had delivered positive results. While demand for SEND services remained high, progress had been made in reducing placement costs. The Committee was advised that Adult Social Care continued to face growing demand and increasingly complex needs. It was noted that the voluntary and community sector played an important role in providing early intervention and preventative support, helping residents maintain their independence and reducing pressure on statutory services. Work to manage costs while maintaining positive outcomes for residents was ongoing. Members discussed fly-tipping, littering and public realm services. It was reported that proactive enforcement activity, targeted operations and rapid clearance arrangements remained in place to tackle fly-tipping. Seasonal increases in litter and overflowing bins were also highlighted, with resources adjusted where necessary to respond to demand. During discussion, Members suggested that future benchmarking information should, where possible, include comparisons with statistical neighbours. Additional performance information relating to road safety and crime trends was also requested in future reporting. RESOLVED: That the Committee reviewed and noted the attached Cabinet report in line with its Council-wide financial overview and scrutiny role.
📄 Annual Performance Report 2025/26 PDF 164 KB
Read the text of this document (1 page)
Classification: Public Audit, Finance & Performance Committee – 15 July 2026 ANNUAL PERFORMANCE REPORT 2025/26 Committee name Audit, Finance & Performance Committee Officer reporting Matthew Wallbridge, Chief Operating Officer Papers with report Cabinet Paper – Annual Performance Report (reported to Cabinet on 25 June 2026) Cabinet reporting Reported to Cabinet on 25 June 2026 HEADLINES This report provides the Committee with an opportunity to review the Council’s Annual Performance Report for 2025/26. It sets out the Council’s performance across Cabinet portfolios and supports the Committee’s overview and scrutiny role in reviewing how services are performing and how this supports accountability, transparency and continuous improvement. RECOMMENDATIONS That the Committee review the attached Cabinet report and seek any clarifications where necessary, in line with its Council-wide performance overview and scrutiny role. INFORMATION Following changes agreed by Full Council in May 2026, performance reporting has been streamlined to provide clearer and more effective oversight. This Committee’s constitutional responsibilities are: 1. On behalf of select committees to receive regular finance, performance and risk reports to monitor council services, budgets and to help ensure value for money, taking into consideration the committee’s independent role as part of its audit and assurance remit. 2. To inform select committees or their respective members of any pertinent finance and performance is sues identified through any investigations, which may require further service review by the relevant select committee. There should be a clear two -way relationship between this Committee and the three Select Committees. This Committee can highlight key performance issues for more detailed service - level review, while select committees can suggest performance monitoring issues to this Committee where regular oversight is needed. This communication should take place when important or emerging issues arise, typically through Members and Democratic Services, ensuring joined-up scrutiny. LEGAL & FINANCE IMPLICATIONS As set out in the Cabinet report. BACKGROUND PAPERS: NIL

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 REPORT Cabinet Member Report - Annual Performance Report 2025-26 , item 24. PDF 332 KB
Read the text of this document (8 pages)
Cabinet report – 25 June 2026 (Part 1 Public) ANNUAL PERFORMANCE REPORT, 2025/26 Cabinet Member & Portfolio Cllr Richard Mills – Cabinet Member for Corporate Services, Digital and Transformation / All Cabinet Members Responsible Officer Matthew Wallbridge, Chief Operating Officer Report Author & Directorate Ian Kavanagh, Head of Business Intelligence, Corporate Services Papers with report Annual Performance Report 2025/26 HEADLINES Summary This report presents Council’s Annual Performance for 2025/26. It outlines the performance cycle and shows corporate performance for 2025/26 across all current Cabinet portfolios, which have been updated following the local elections. Putting our Residents First Delivering on the Council Strategy 2022-2026 This report supports the Council’s ambition of an efficient, well-run, digital-enabled council working with partners to deliver services to improve the lives of all our residents. This report supports our commitments to residents of:  Safe and strong communities  A thriving economy  A digital-enabled, modern, well-run council  Thriving, healthy households  A green and sustainable borough Financial Cost None Relevant Committee All Ward(s) All RECOMMENDATIONS That Cabinet: 1. Note the Annual Performance Report for 2025/26, as attached in Appendix 1 2. Note that it will also be presented to the Audit, Finance & Performance Committee in discharging its overview and scrutiny role. Cabinet report – 25 June 2026 (Part 1 Public) Reasons for recommendation(s) Performance management is a critical function in local government, enabling councils to use data-driven insights to improve outcomes for residents. It supports accountability—both internally and externally—by demonstrating how public services respond to local needs and ensure value for money. The Council’s performance framework is aligned with the current Council Strategy and incorporates a suite of reports accessible to services, senior management, the Corporate Management Team, and Cabinet. This annual report draws on key performance indicators and monitoring data to assess progress against strategic objectives. Where applicable, it includes the most recent data available, including pre-2025/26 benchmarks. Notably, the report integrates indicators from the governments newly updated Local Outcomes Framework (LOF), which defines 16 priority outcomes and 100+ measures—most of which are statutory and allow for regional and national comparison. Hillingdon will contribute to the development of the LOF and will assimilate its measures into the Council’s performance management framework. Alternative options considered / risk management None, as it is good business practice to report performance to decision-makers. Overview & Scrutiny consideration Following Cabinet’s consideration of this Annual Report, the Audit, Finance & Performance Committee have scheduled prompt consideration of this on their work programme to enable the monitoring of the performance of services within their respective remits. This ensures the Council can discharge its overview and scrutiny responsibilities effectively. SUPPORTING INFORMATION 1. Performance management is about using data to drive evidence-based decision making to challenge current ways of working and service delivery models. It is an important tool for local government to take responsibility for its own performance and for the public and national governments to hold local service providers to account, ensuring they respond to local needs and that public money is being spent wisely. 2. Performance management includes a range of processes and methods to identify shared goals and various measurements of progress towards these. Closely aligned to the concept of governance it ensures arrangements are in place so an authority’s objectives can be achieved. 3. Within Hillingdon, performance is aligned to the Council Strategy, where a suite of performance reports is available to services, senior management teams, our Corporate Management Team, and the Leader and Cabinet. Cabinet report – 25 June 2026 (Part 1 Public) 4. This report uses key performance indicators and benchmarking data to show performance and value on key services for financial year 2025/26 (or in some cases, the latest data available). 5. The Annual Performance Report for 2025/26 presents a detailed and transparent account of how Hillingdon council is performing across its core service areas, with a clear emphasis on putting residents first. The report reflects a council that is actively responding to significant challenges—rising demand, financial pressures, and evolving community needs—while maintaining a strong commitment to service quality, accountability, and resident wellbeing. Residents Services (Planning, Housing & Property; Residents Services; Community, Environment & Enforcement Portfolios) 6. Along with most of London, demand from homeless households in Hillingdon is high which has increased the use of temporary accommodation. Longer stays are compounding the issue with more households remaining in temporary accommodation for more than six months. This is caused by challenges in accessing affordable settled housing to move on from temporary accommodation. 7. The service is facing both a rising inflow and a slower outflow, which suggests structural pressure in housing supply rather than short-term spikes. We have seen rising homelessness presentations, with new approaches from homeless households consistently above 600 each month, meaning the growth in new cases is feeding directly into higher temporary accommodation use and associated costs. 8. Paid accommodation costs increased through 2024/25, with rising demand and higher private rental costs pushing up spending, coupled with an increase in high-cost placements. Using more council-owned properties for temporary accommodation appears to have mitigated the financial impact. Proactive market management has achieved results; after a nightly cost cap was introduced at the start of 2025/26, tenancies above the cap reduced significantly during the year. 9. Hillingdon has a lower than average number of children placed in temporary accommodation with their family – our plans to reduce the use of temporary accommodation will secure more settled accommodation for more families with children. 10. The Repairs Service continues to show clear improvement momentum — both completion levels and on-time delivery are presented as improving, with sustained target achievement since September 2024. 11. Repair demand is high and steady — 3,000 repair requests per month are logged, with emergency volumes stable and routine repairs fluctuating modestly. Completion performance is improving — overall repair completion rates are steadily rising, indicating stronger operational delivery despite sustained demand. 12. The volume of planning applications has remained consistently strong, with approximately 3,250 applications received during 2025/26. The Development Management Service has maintained a high level of performance, continuing to meet all statutory targets for the timely determination of applications. While the proportion of appeals allowed at 42% is currently Cabinet report – 25 June 2026 (Part 1 Public) above the London average and represents an increase on the previous year, this is being actively addressed. 13. Ongoing work to systematically review appeal outcomes is helping to refine decision-making processes, strengthen policy application, and drive continuous improvement in performance. The Building Control Service has taken a proactive approach to safeguarding residents by increasing enforcement activity, ensuring that poor construction practices are identified and addressed more effectively, and contributing to higher standards across developments. 14. Significant progress has been made in advancing the council’s place-shaping priorities. This includes the adoption of the Uxbridge Vision, the development of a regeneration framework for Hayes, the preparation of the council’s first Growth Plan, and continued progress on the Local Plan review. The planning authority is also proactively preparing to respond to the government’s proposals for the expansion of Heathrow Airport, including a third runway. 15. These proposals present far-reaching place-shaping implications extending well beyond the airport boundary. In parallel, changes to national planning policy, particularly in relation to the green belt, are being carefully considered. Considering these evolving factors, the decision has been taken to delay the stage of the Local Plan. This will ensure that a robust, comprehensive and coordinated response can be developed, positioning the borough to effectively manage future growth and respond to strategic challenges and opportunities. 16. Classified roads are performing better than the wider benchmark — for A roads and motorways, Hillingdon is shown at 4% requiring maintenance versus a London average of 8%. B and C roads also compare well — Hillingdon records 2% requiring maintenance against a London average of 10%. Unclassified roads remain relatively strong — 5% versus a London average of 12%. 17. Department for Transport Road Maintenance Ratings – Hillingdon is one of only two London boroughs ranked green on the DfT ratings map (released January 2026) demonstrating how effective Hillingdon is at tackling potholes and resurfacing roads. 18. EV infrastructure is currently behind but has a credible expansion plan — current provision is low relative to London, but the funding and installation pipeline imply a meaningful future uplift . 19. Public charging availability is still behind London overall — Hillingdon is shown at 75.3 chargers per 100,000 population in Q4 2025, versus a London mean of 338.6. 20. Strategic investment is underway — the slide notes a £7.5 million funding award through the Local Electric Vehicle Infrastructure programme. The borough is set to receive 1,673 new charging points, which suggests a major improvement programme rather than incremental change. 21. Both green spaces and trees service requests show a year-on-year reduction, suggesting maintenance activity is starting to reduce the volume of issues reported. For green spaces, the main request categories remain overgrowth and weeds; for trees, the dominant issues are branches and tree health, with fewer requests about roots. The decline suggests more effective maintenance, better targeting of common issues, and, in the case of trees, support Cabinet report – 25 June 2026 (Part 1 Public) from an updated tree policy. 22. Anti-social behaviour remains persistently high — monthly ASB cases average over 600 per month, with seasonal variation but no real sign of a sustained drop. Relative performance is better than London overall — despite the high absolute numbers, Hillingdon has consistently lower rates than the London average. Crime levels are also high and fairly stable — recorded crime averages around 2,600 incidents per month, fluctuating month to month but without a major directional shift. 23. Residual household waste is worse than average — Hillingdon collected 532 kg per household in 2024/25, above the London average of 487 kg. Recycling and composting performance is a stronger area — Hillingdon records 37% of household waste sent for recycling and composting, ahead of the London average of 32%. 24. Food waste separation is only slightly ahead of average at 4.5% (just above the London average of 4%), with improvement efforts focused on trials in flat blocks and resident education. 25. Fly-tipping enforcement activity is exceptionally low relative to London — Hillingdon records 24 enforcement actions per 1,000 incidents, compared with a London average of 638.9. Data coverage is part of the caveat — the incidents shown are only those reported to the local authority and exclude incidents reported directly to the Environment Agency. Children’s Services (Children, Families, Health and Care Portfolio) 26. Referrals into children’s social care are a key indicator of safeguarding demand, reflecting the volume of concerns reaching the threshold for statutory intervention and providing an important measure of both system pressure and the effectiveness of prevention and early help. 27. The number of children subject to Child Protection Plans has reduced over the year, which may indicate early impact from the revised social care delivery model. The number of Cared for Children has also fallen. However, this trend should be interpreted with caution, as 26% of the Cared for Children cohort are unaccompanied asylum-seeking children, where demand is externally driven and cannot be mitigated through prevention or early intervention. 28. Placement costs remain a major budget pressure. Although the number of external residential placements has reduced, the cost of those placements has continued to rise at rates significantly above inflation, reflecting sustained market instability and increasing complexity of need. Hillingdon also continues to carry a disproportionate level of responsibility for unaccompanied asylum-seeking children. 29. Year-end figures alone do not fully capture this pressure, as once the borough reaches the 0.1% threshold, young people transfer to other authorities through the National Transfer Scheme. This sustained flow has a longer-term consequence for care leaver services, as the borough supports a disproportionately large care leaver cohort linked to previous asylum demand and to earlier years when the transfer scheme operated less effectively. Cabinet report – 25 June 2026 (Part 1 Public) 30. Hillingdon recorded 34 first-time entrants to the youth justice system in 2024, below the London average of 42, indicating comparatively stronger performance in preventing initial entry into the system. In the 12 months to Q1 2024, 28.8% of young people who had offended went on to reoffend, broadly in line with the London average of 28.9%. This suggests that while first-time entry is relatively well controlled, reducing reoffending remains a persistent challenge. The strategic response therefore rightly emphasises multi-agency intervention, recognising the links between offending, trauma, deprivation, discrimination, and unmet health needs. 31. Demand for SEND assessments continues to rise, both locally and nationally. This appears to reflect not only increasing levels of need, but also system uncertainty following delays to recent SEND reform announcements, which have contributed to anxiety among families and professionals. The resulting growth in demand is placing additional pressure on the DSG High Needs Block and has implications for the robustness of financial forecasting. 32. Funded early education uptake is a clear area of relative strength. In 2025, 87.3% of 3- and 4-year-olds in Hillingdon accessed funded early education, above the London average of 85.4%, suggesting strong engagement with universal early years provision. 33. Post-16 engagement presents a more mixed picture. In 2025, 2.5% of 16–17-year-olds were not in education, employment or training, slightly above the London average of 2.0%. However, this should be understood in the context of Hillingdon’s comparatively low rate of unknown destinations. This suggests that the higher NEET figure is more likely to reflect stronger tracking and identification than materially weaker participation. Adult Social Care and Health (Children, Families, Health and Care Portfolio) 34. Referrals into Adult Social Care are relatively steady, averaging 665 per month. Home- based support is becoming more complex — the number of unique clients receiving home care has fallen gradually, while the number of active services has increased, indicating more people are receiving multiple forms of support at once. Reablement is a key response — the council is using more short-term reablement support to help residents regain independence and reduce escalation into longer-term, higher-cost care. 35. Independent living remains a relative strength — 81.1% of adults aged 18–64 receiving long- term support were living in their own home or with family in 2024/25, slightly above the London average of 78.8%. 36. Residential and nursing support placements average 740 per month, while average support hours per resident on an adult support plan have stayed broadly stable, with an increase throughout the year from 58.1 to 66.1 hours of support given. The age profile of new entrants is consistent each month — an average of 42 in those aged 18–64, and 82 years in those aged 65+. 37. Assessment speed is a clear challenge — Adult Social Care has an internal target to complete 80% of new client assessments within 28 days, but this has been missed consistently during the last two financial years. The service explicitly balances speed with quality — delays are partly attributed to complex needs, multi-agency coordination, and planned reviews, with the narrative emphasising triage and professional judgement rather Cabinet report – 25 June 2026 (Part 1 Public) than simple throughput. 38. Completed assessment volume remains substantial — monthly assessment totals demonstrate sustained operational effort by social workers despite the timeliness gap. Overall implication — this is a capacity-and-complexity story rather than a collapse in delivery; the team is completing large volumes, but not always within the intended timeframe. 39. Quality of life scores are comparatively positive — in 2024/25, Hillingdon scored 19.1 out of 24 on the adult social care quality-of-life measure, above the London average of 18.6. Overall satisfaction is broadly in line with London — the borough scored 62% for satisfaction with care and support, close to the London average of 61.2%. 40. Perceived control over daily life is another strong area — 75.2% of surveyed service users reported having adequate or as much control over daily life as they wanted, compared with 72.5% across London. Taken together, these measures suggest decent lived experience — despite pressure on assessments and increasing complexity, users report good outcomes and a sense of autonomy. 41. Carer quality-of-life outcomes are weaker than peers — Hillingdon scored 6.8 out of 12 for carer-related quality of life in 2024/25, below the London average of 7.2. Carer satisfaction with services is stronger — 36.3% of carers were extremely or very satisfied with support and services, above the London average of 33.0%. Workforce turnover is a positive signal — staff turnover in the formal care workforce was 14.9% in 2024/25, well below the London average of 20.1%, which the presentation links to stronger continuity and better outcomes. 42. 19.9% of children in Reception were overweight or living with obesity in 2024/25, lower than both London and England. The picture worsens by Year 6 — prevalence rises to 36.2% by Year 6, a gap of 16.3 percentage points from Reception, which is similar to London but higher than the England gap. 43. Childhood obesity as a major long-term health risk and notes it as a priority for the local health and wellbeing strategy through 2025–28. 44. 30.8% of adults were physically inactive in 2024/25, significantly worse than the London average of 21.9%. Corporate Services (Corporate Services, Digital & Transformation / Finance Portfolios) 45. Cyber threats remain persistent and volatile — the cyber security slide describes monthly attack attempts rising and falling, with periodic spikes rather than a steady decline, which suggests the council is operating in a constantly changing threat environment. Phishing is the higher-volume risk — phishing attempts are described as much more frequent, at times exceeding 7,000 per month, even if recent months have been lower. Mitigations are in place with learning and development across the organisation, as well as a secure technology infrastructure to block threats. Cabinet report – 25 June 2026 (Part 1 Public) 46. Phone demand has fallen compared with the previous year — 2025/26 saw fewer total calls handled by our contact centre. Abandoned call rates remain a pressure point — although total call volumes are down. The transition towards digital channels continues but show that phone-based access still matters and service quality over that channel remains important. 47. Counter fraud performance is well above target — the council recovered £12.8 million in 2025/26, significantly ahead of the £8.8 million target. Operational activity is substantial — the same slide reports 113 fraud recoveries and 36 emergency housing units closed, releasing homes and resources back into use. This is one of the clearest positive performance stories in the section, showing tangible financial value from fraud detection across housing, business rates, and adult social care. Financial Implications There are no direct financial implications to the Council associated with the recommendations in this report. RESIDENT BENEFIT & CONSULTATION The benefit or impact upon Hillingdon residents, service users and communities? This report enables residents, communities, and service users to understand how well services are performing, ensuring transparency, accountability, and continuous improvement in meeting local needs. Consultation & Engagement carried out (or required) None required. CORPORATE CONSIDERATIONS Corporate Finance Corporate Finance have reviewed this report and concur with the Financial Implications set out above, noting there are no direct financial implications associated with the recommendation within this report. Legal Regular reporting on performance indicators is good governance practice that aids in accountability and openness in the provision of performance-related information and relevant data, and in turn assists Members in relati on to broader dec ision-making. There are no direct legal implications associated with the recommendations within this report. BACKGROUND PAPERS Previous performance reports to Cabinet

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 APPENDIX Annual Performance Report 2025-26 FINAL COPY , item 24. PDF 4 MB
Read the text of this document (77 pages)
London Borough Of Hillingdon Performance Report 2025/26 Leader of the Council: Cllr Steve Tuckwell For councils, performance management uses data to drive evidence-based decision making, challenging current ways of working and service delivery models. It helps local government take responsibility for its performance and allows our residents to hold us to account, ensuring we are meeting local needs and spending their money wisely. Performance management involves setting shared goals and measuring progress towards them. It ensures governance arrangements are in place to achieve an authority's objectives. In Hillingdon, performance is aligned with the Council Strategy, providing performance reports to services, senior management teams, the Corporate Management T eam, and the Leader and Cabinet. This annual report uses key performance indicators and monitoring data to show the performance of key services for the financial year 2025/26 (it should be noted that 2024/25 is the latest data for some metrics). Where possible, we have benchmarked these against comparable authorities and have used the latest published data. Cabinet Member: Cllr Nick Denys Portfolio: Planning, Housing and Property Safe and strong communities A thriving economy Thriving, healthy households Our commitments to residents Corporate Director: Dan Kennedy, Residents Services Along with most of London, demand from homeless households in Hillingdon is high, in part driven by private sector landlords evicting tenants combined with a shortage of suitable and affordable housing supply, which has in turn increased the use of temporary accommodation. The Housing Service is facing both a rising inflow and a slower outflow from temporary accommodation. We have seen rising homelessness presentations, with new approaches to the Council from homeless households consistently above 600 each month. Expenditure on accommodation increased in 2024/25, with rising demand and higher private rental costs pushing up spending, coupled with an increase in higher-unit cost placements. During 2025/26 a strategy to reduce the use of temporary accommodation and associated expenditure by preventing homelessness, securing more private and social rented accommodation and introducing price controls was actively delivered. Proactive market management has achieved results; after a nightly cost cap was introduced at the start of 2025/26, tenancies above the price cap reduced significantly during the year. Hillingdon has a lower than average number of children placed in temporary accommodation with their family – our plans to reduce the use of temporary accommodation will secure more settled accommodation for more families with children. The Council Housing Landlord Repairs Service continues to show clear improvement momentum— both completion levels and on-time delivery have continued to improve, with sustained achievement since September 2024. Repair demand is high and steady — 3,000 repair requests per month are logged, with emergency volumes stable and routine repairs fluctuating modestly. Completion performance is improving— overall repair completion rates are steadily rising, indicating stronger operational delivery despite sustained demand. Responsive repairs completed per 1,000 properties remains below the target of 295. However, the on-time completion target is consistently above 89%. Repairs performance has shifted from pressure management to more dependable delivery. Turning to the Planning Service, the volume of planning applications has remained consistently strong, with approximately 3,250 applications received during 2025/26. The Development Management Service has maintained a high level of performance for the timely determination of applications. While the proportion of appeals allowed at 42% is currently above the London average and represents an increase on the previous year, this is being actively addressed. Ongoing work to systematically review appeal outcomes is helping to refine decision-making processes, strengthen policy application, and drive continuous improvement in performance. The Building Control Service has taken a proactive approach to safeguarding residents by increasing enforcement activity, ensuring that poor construction practices are identified and addressed more effectively, and contributing to higher standards across developments. Significant progress has been made in advancing the council’s place-shaping priorities. This includes the adoption of the Uxbridge Vision, the development of a regeneration framework for Hayes, the preparation of the council’s first Growth Plan, and continued progress on the Local Plan review. The planning authority is also proactively preparing to respond to the government’s proposals for the expansion of Heathrow Airport, including a third runway. These proposals present far-reaching place-shaping implications extending well beyond the airport boundary. In parallel, changes to national planning policy, particularly in relation to the green belt, are being carefully considered. In light of these evolving factors, the decision has been taken to allow more time to consider the currentthe stage of the Local Plan. This will ensure that a robust, comprehensive and coordinated response can be developed, positioning the borough to effectively manage future growth and respond to strategic challenges and opportunities. The number of households in temporary accommodation has continued to rise steadily since mid-2023, peaking at 1,839 in October 2025. 1,753 households were living in temporary accommodation in March 2026. Alongside this, the number of households staying in temporary accommodation for over six months (lower slide) has increased, reflecting the challenges in securing suitable affordable alternative housing. The continued rise in both overall usage and duration reflects sustained pressure on housing supply and limited exit pathways from temporary accommodation. Housing Needs and Homelessness In line with the rest of London, Hillingdon is experiencing increased demand from homeless families for assistance, given the shortage of affordable suitable accommodation. High demand is coming from private tenants experiencing evictions by their landlord in a market where there is strong demand for private rented homes, including from those living in inner London. When a household approaches us at risk of homelessness, we have a duty to help them. If attempts to prevent homelessness are unsuccessful, we place the household into temporary accommodation, if they are eligible. This is the number of new residents who are asking for support that are at risk of being homeless leading to increases in temporary accommodation usage and spend. The number of new homelessness presentations each month has shown a significant increase during the last three years. In April 2023, there were 297 new cases, rising sharply to a peak of 722 in October 2025, indicating a year-on-year upward trend. This suggests increasing pressure on housing and support services, particularly during the winter months, where figures were consistently above 600. Housing Needs and Homelessness The cost of paid accommodation and the number of high-cost tenancies continued to increase in 2024/25 - largely due to increasing demand, the rising cost of renting accommodation from private landlords, the cost of which was offset by the council using more of its own properties for temporary accommodation. With the introduction of a new policy to capping nightly costs (introduced at the beginning of 2025/26), high-cost tenancies over the price cap have reduced considerably throughout the financial year. Housing Needs and Homelessness The London comparison chart shows a very wide variation for the number of children living in temporary accommodation across boroughs, with a small number of boroughs much higher than the rest; the horizontal line is the London average (not a target). Hillingdon has a lower than average number of children placed in temporary accommodation with their family – our plans to reduce the use of temporary accommodation will secure more settled accommodation for more families with children. Housing Needs and Homelessness People sleeping rough are defined as those sleeping or about to bed down in open air locations and other places including tents and make-shift shelters. The snapshot does not include people in hostels or shelters, sofa surfers or those in recreational or organised protest, squatter or traveller campsites. The snapshot records only those people seen, or thought to be, sleeping rough on a single night. The snapshot does not include everyone in an area with a history of sleeping rough, or everyone sleeping rough in areas across the October to November period. The count includes Heathrow Airport which does attract additional rough sleepers to Hillingdon. The Council works closely with partner organisations in Hillingdon and London including Heathrow Airport Limited to provide supportive pathways to end rough sleeping. The annual snapshot takes place in the autumn (between 1/10 and 30/11), rather than summer where numbers are likely to be higher due to warmer temperatures, or winter, where numbers may be lower as there are more temporary night shelters set up to ensure people do not sleep on the streets in very cold weather. Local authorities across England take an annual autumn snapshot of rough sleeping using either a count-based estimate of visible rough sleeping, an evidence-based estimate meeting with local partners, or an evidence-based estimate meeting including a spotlight count in specific areas. Hillingdon’s value is 40, just above the London average of 37. Housing Needs and Homelessness This is the percentage of all minor development planning applications (PAs) whether or not they have a Planning Performance Agreement (PPAs), Extension of Time (EoT) and/or Environmental Impact Assessment (EIA), determined in a timely manner. A timely manner is statutorily defined as within eight weeks or unless an application is subject to Environmental Impact Assessment, in which case a 16- week period applies, for all minor applications. Minor includes: dwellings, general industry / storage and warehousing, offices, light industry, retail and services, traveller caravan pitches and other developments. Building Control and Planning This is the percentage of all major development planning applications (PAs) whether or not they have a Planning Performance Agreement (PPAs), Extension of Time (EoT) and/or Environmental Impact Assessment (EIA), determined in a timely manner, each financial year. A timely manner is statutorily defined as within 13 weeks or unless an application is subject to Environmental Impact Assessment, in which case a 16-week period applies, for all major applications. Major includes the same categories as minor but also public service infrastructure developments. Building Control and Planning Each month, typically more than 3,000 repair requests are logged. Emergency job volumes have remained stable, while routine repairs have fluctuated slightly. Despite this, overall repair completion rates have steadily improved, meaning more issues are being resolved on time. This improvement helps ensure that homes remain safe, functional, and comfortable. A more reliable Repairs Service also means residents experience fewer delays, with reduced need for repeated follow-ups. The significant capital investment programme being delivered to improve homes for Hillingdon tenants will over time reduce the number of repairs required each month. This is already showing success, for example with the reduction in jobs for boiler repairs following the programme to replace boilers in domestic properties. Operational Assets – Housing Repairs The top graph looks at the number of jobs that have been logged that are either classed as emergency or routine. Emergency jobs require either next day or out of hours attendance. Routine jobs are up to 90 working days depending on the severity. The bottom graph looks at overall jobs completed. The top graph shows the number of responsive repairs completed for every 1,000 properties. This is used to measure the average core demand (target line) placed on the sector. Based on this, the sector's average is 295. The bottom graph also looks at responsive repairs completed on time but as a percentage and the target for this is 89%. Since September 2024, Hillingdon has consistently achieved the target of responsive repairs completed within the required timescales each month which means most residents can now expect a more dependable and timely repairs service. Operational Assets – Repairs Cabinet Member: Cllr Wayne Bridges Portfolio: Residents Services Safe and strong communities A digital-enabled, modern, well-run council Our commitments to residents yr Corporate Director: Dan Kennedy, Residents Services Green spaces and trees - Both the green spaces and trees slides describe a year-on-year reduction in resident service requests, suggesting maintenance activity is starting to reduce the volume of issues being reported. For green spaces, the main request categories remainovergrowth and weeds; for trees, the dominant issues are branches and tree health, with fewer requests about roots. The reduction in enquiries is due to better targeting of common issues, and, in the case of trees, support from an updated tree policy. Residual waste and recycling performance - Residual household waste rates are higher than average when lower rates are preferred — Hillingdon collected 532 kg per household in 2024/25, above the London average of 487 kg. Recycling and composting performance is a stronger area— Hillingdon records 37% of household waste sent for recycling and composting, ahead of the London average of 32%. Food waste separation is slightly ahead of average — the food composting slide reports 4.5%, just above the London average of 4%, with improvement efforts focused on trials in blocks of flats and resident education campaigns. In summary, the borough appears to be doing better on selected recovery streams like recycling and composting, but produces a higher level of residual waste overall. Road condition performance The condition of roads in Hillingdon is better than average. Classified roads are performing better than the wider benchmark— for A roads and motorways, Hillingdon is shown at 4% requiring maintenance versus a London average of 8%. B and C classified roads also compare well — Hillingdon records 2% requiring maintenance against a London average of 10%. Unclassified roads remain relatively strong — 5% versus a London average of 12%. Department for Transport (DfT) Road Maintenance Ratings – Hillingdon is one of only two London boroughs ranked green on the DfT ratings map (released January 2026) demonstrating how effective Hillingdon is at tackling potholes and resurfacing roads. Electric vehicle charging infrastructure EV infrastructure has a strong and credible expansion plan in Hillingdon — current provision is low relative to London, but the funding and installation pipeline imply a meaningful future uplift. Public charging availability in Hillingdon is behind London overall — Hillingdon is shown at 75.3 chargers per 100,000 population in Q4 2025, versus a London mean of 338.6. Strategic investment is underway — a £7.5 million funding has been awarded through the Local Electric Vehicle Infrastructure programme. The borough is set to receive 1,673 new charging points, as part of a major expansion programme rather than incremental change. Community, Environment and Enforcement – Green Spaces Fewer service requests about green spaces suggest improvements are making a real impact. This chart shows a year-on-year reduction in service requests related to green spaces - such as overgrowth, weeds, grass cutting, and parks. Most requests in 2025/26 focused on overgrowth and weeds, but the overall decline points to more effective maintenance and positive outcomes for residents. By targeting the most common issues and listening to community feedback, the council has reduced new reports and helped keep parks and green areas cleaner, better maintained, and more enjoyable for everyone. Community, Environment and Enforcement – Trees Fewer tree-related service requests suggest positive progress in local tree management. This chart shows the trend in service requests regarding trees - covering issues like branches, tree health, and roots. Most requests in 2025/26 focused on branches and health, with fewer concerns about roots. The overall reduction in reports indicates that the council’s proactive approach is working assisted by an updated tree policy. By targeting the most common issues, the council has improved response and maintenance - helping to keep Hillingdon’s trees healthy, safe, and enjoyable for all. This approach is being actively applied in 2026/27. Household waste levels impact both the environment and local services. This chart shows residual household waste per household (kg) collected by each London borough in 2024/25. Hillingdon collected 532 kg per household, above the London average of 487 kg per household. Higher waste volumes suggest greater environmental pressure and increased demand on local infrastructure. Reducing waste through recycling, reusing, and mindful consumption is key to keeping Hillingdon cleaner, greener, and more sustainable. Community, Environment and Enforcement – Household waste (kg per household) Our reuse, recycling and composting performance is helping reduce emissions and protecting natural resources. This top chart shows the percentage of household waste sent for reuse, recycling and composting—such as food and garden waste—across London boroughs in 2024/25. Hillingdon’s value of 37% is above the London average (32%). Hillingdon’s strong performance in this area supports a cleaner, greener borough by cutting emissions and making better use of natural resources. Community, Environment and Enforcement – Household waste sent for reuse, recycling and composting Recycling performance is key to reducing environmental impact and waste disposal costs. This chart shows the percentage of household waste collected separately as food waste in 2024/25. Hillingdon, marked in red collected 4.5%, just above the London average of 4%. T o improve recycling rates and reduce contamination, Hillingdon is trialling new recycling bins in selected flat blocks, supported by targeted education to encourage correct usage. This initiative, alongside community events, features inHillingdon People magazine, marketing campaigns, and direct communications, aims to raise awareness, foster better habits, and boost both the quality and quantity of recyclable materials collected. Community, Environment and Enforcement – Food composting Highways – Classified Roads This is the percentage of the local authority’s A roads and motorways (owned principal roads) where maintenance should be considered. This represents the percentage of road that is in the worst condition measured in 10 metre sections. In 2024/25, the percentage of Hillingdon’s A roads and motorways where maintenance should be considered was 4%, which is below the London average (8%). Highways – Classified Roads This is the percentage of the local authority’s B and C roads (non-principal roads) where maintenance should be considered. This represents the percentage of road that is in the worst condition measured in 10 metre sections. In 2024/25, the percentage of Hillingdon’s B and C roads where maintenance should be considered was 2%, which is below the London average (10%). As the graph demonstrates, some authorities have not submitted data to the Department for Transport. Highways - Unclassified Roads This is the percentage of the local authority's unclassified roads (U roads) where maintenance should be considered. There is no mandated method for collection of U road condition, hence a variety of road condition monitoring techniques are used by local authorities. In 2024/25, the percentage of Hillingdon’s unclassified roads where maintenance should be considered is 5%, which is below the London average (12%). As the graph demonstrates, some authorities have not submitted data to the Department for Transport. This chart shows the number of potholes reported each month during the past two financial years. Potholes are a common concern for many residents as they affect road safety and can damage vehicles. Looking at the data, you can see that the number of reported potholes can change a lot from month to month, often spiking in winter and early spring, when cold and wet weather causes the most damage to road surfaces. Compared to last year, this year has seen fewer reports in several months, especially in April and October, which shows improvement. The very wet period from January 2026 to March 2026 contributed to a spike in pot holes being reported. By tracking these numbers, the council can better understand when and where road repairs are needed most and focus resources to keep roads safer and smoother for everyone in Hillingdon. Highways - Potholes Department for Transport Road Maintenance Map In January 2026, Hillingdon was one of only two London boroughs ranked green on the Department for Transport Road Maintenance Ratings map, showing how effective Hillingdon is at tackling potholes, resurfacing roads and restoring pride to a local area.​ Highways – Electric vehicle (EV) charging Public EV charging devices per 100,000 population In Q4 (Oct-Dec) 2025, the number of publicly available electric vehicle charging devices (all speeds) per 100,000 population in Hillingdon was 75.3, which is below the London mean of 338.6 (based on charging devices at all speeds). The council has joined forces with Brent, Ealing, Hammersmith & Fulham, Haringey and Harrow to secure £7.5 million from the government's Local Electric Vehicle Infrastructure (LEVI) fund. The partnershipis in the process of procuring a supplier to install and manage the new EV charge points across all five boroughs, with1,673 new EV charging points set to be installed across Hillingdon. Cabinet Member: Cllr Susan O'Brien Portfolio: Children, Families, Health and Care Our commitments to residents Thriving, healthy households Corporate Director: Julie Kelly, Children’s Services Referrals into children’s social care are a key indicator of safeguarding demand, reflecting the volume of concerns reaching the threshold for statutory intervention and providing an important measure of both system pressure and the effectiveness of prevention and early help. The number of children subject to Child Protection Plans has reduced over the year, which may indicate early impact from the revised social care delivery model. The number of Cared for Children has also fallen. However, this trend should be interpreted with caution, as 26% of the Cared for Children cohort are unaccompanied asylum-seeking children, where demand is externally driven and cannot be mitigated through prevention or early intervention. Placement costs remain a major budget pressure. Although the number of external residential placements has reduced, the cost of those placements has continued to rise at rates significantly above inflation, reflecting sustained market instability and increasing complexity of need. Hillingdon also continues to carry a disproportionate level of responsibility for unaccompanied asylum-seeking children. Year-end figures alone do not fully capture this pressure, as once the borough reaches the 0.1% threshold, young people transfer to other authorities through the National Transfer Scheme. This sustained flow has a longer-term consequence for care leaver services, as the borough supports a disproportionately large care leaver cohort linked to previous asylum demand and to earlier years when the transfer scheme operated less effectively. Hillingdon recorded 34 first-time entrants to the youth justice system in 2024, below the London average of 42, indicating comparatively stronger performance in preventing initial entry into the system. In the 12 months to Q1 2024, 28.8% of young people who had offended went on to reoffend, broadly in line with the London average of 28.9%. This suggests that while first-time entry is relatively well controlled, reducing reoffending remains a persistent challenge. The strategic response therefore rightly emphasises multi- agency intervention, recognising the links between offending, trauma, deprivation, discrimination, and unmet health needs. Demand for SEND assessments continues to rise, both locally and nationally. This appears to reflect not only increasing levels of need, but also system uncertainty following delays to recent SEND reform announcements, which have contributed to anxiety among families and professionals. The resulting growth in demand is placing additional pressure on the DSG High Needs Block and has implications for the robustness of financial forecasting. Funded early education uptake is a clear area of relative strength. In 2025, 87.3% of 3- and 4-year-olds in Hillingdon accessed funded early education, above the London average of 85.4%, suggesting strong engagement with universal early years provision. Post-16 engagement presents a more mixed picture. In 2025, 2.5% of 16–17-year-olds were not in education, employment or training, slightly above the London average of 2.0%. However, this should be understood in the context of Hillingdon’s comparatively low rate of unknown destinations. This suggests that the higher NEET figure is more likely to reflect stronger tracking and identification than materially weaker participation. A referral to children’s social services happens when someone is concerned that a child may be at risk of harm. This prompts the local authority to assess whether the child or family needs support or protection. All referrals require statutory intervention. The graph shows the number of referrals received each month during the past two financial years. This helps us understand demand for services, spot emerging concerns, and evaluate the impact of early help and prevention work. Referrals can come from many sources, including residents, schools, health professionals, or the police. Children, Families, Health and Care – Social Care Demand - Referrals Our children are those cared for by the local authority. This includes children seeking asylum who have no parent or guardian in the UK. The council and elected members hold parental responsibility and corporate parenting duties for most of these children. The top graph shows the total number of cared for children at the end of each month. This helps us track long-term demand and plan the right level of support and resources. Higher numbers generally mean increased pressure on council services and budgets. Hillingdon had corporate parenting duties to 305 children at the end of March 2026. The figure has remained relatively consistent throughout the year. The bottom graph shows how many children came into our care each month. Spikes in this data highlight pressure points in safeguarding and a growing need for placements, especially during times of increased family breakdown or risk to children. Children, Families, Health and Care – Looked After Children (Our Cared for Children) High-cost residential placements are often used in emergency situations or for children with high-risk needs. Monitoring these placements helps us plan more effectively, manage costs, and explore more local, sustainable options. It also highlights the number of children placed in external residential settings, those not managed by Hillingdon which are significantly more expensive than in-house alternatives. To address and disrupt the market we have invested in increased local capacity, impact of which is being seen from February 2026 and expectation is for further improvement and reduction over the next financial year. By tracking this data, we aim to meet children’s needs while maintaining financial sustainability. Children, Families, Health and Care – Placements – Where Our Children Live Child Protection Plans (CPPs) are implemented when there is a significant concern that a child may be at risk of harm, including abuse, neglect, or other forms of abuse. These plans are developed through multi-agency collaboration and outline specific actions to safeguard the child and promote their overall wellbeing. They are reviewed regularly to ensure that the support provided remains appropriate and effective. The top graph illustrates the total number of children subject to an active Child Protection Plan at the end of each month. Monitoring this figure helps us understand the overall level of safeguarding demand and informs workforce and resource planning. The bottom graph shows the number of new Child Protection Plans initiated each month. Fluctuations in this data can indicate changes in local safeguarding pressures, such as increased risks within families or improved identification of harm through professional vigilance. As of March 2026, there were 202 children with active Child Protection Plans, a decrease from 240 at the end of 2024/25. Children, Families, Health and Care – Child Protection Plans As a port authority area, due to the presence of Heathrow Airport, Hillingdon continues to play a critical role in supporting unaccompanied asylum -seeking children (UASC). These young people arrive in the UK without a parent or guardian and therefore have significant vulnerabilities. Consequently, they require tailored support to ensure their safety, wellbeing and integration. The graph on the left shows the number of UASC supported by each London borough in 2024/25. Hillingdon has the third highest number (68) when compared to other boroughs; the average in London is 32. The National Transfer Scheme (NTS) enables the redistribution of UASC across local authorities to ensure a more equitable sharing of responsibility and to prevent disproportionate pressure on port authority areas like Hillingdon; under the NTS a number of UASC have been successfully transferred to other local authorities helping to manage local capacity while ensuring children continue to receive appropriate care. The numbers therefore don’t entirely reflect the activity as many more children receive a service prior to transfer to their permanent local authority. Care costs for unaccompanied asylum seeking children are funded by central government. Children, Families, Health and Care – Unaccompanied Asylum-Seeking Children Children, Families, Health and Care – Care Leavers Local authorities have a statutory duty to support care leavers, young people who have been in the care of the local authority, as they transition into adulthood. This support extends beyond the age of 18 and includes the provision of a personal adviser, pathway planning, and access to advice, emotional support, and practical assistance with housing, education, employment, training, and financial management. The duty continues until at least the age of 21, and in many cases up to age of 25, depending on the young person’s needs and level of engagement. A key measure of this support is the suitability of accommodation provided to care leavers. Ensuring that young people have access to safe, stable, and appropriate housing is fundamental to their wellbeing and long -term outcomes. The graph on this page shows how each London borough performed in 2024/25. As a port authority borough, Hillingdon supports a significantly higher number of care leavers than many other local authorities, due in part to the volume of UASC who enter care locally and later transition into care leaver status. This places additional pressure on housing, education, and support services. In response, Hillingdon continues to strengthen its care leaver offer, with a focus on increasing access to suitable accommodation, improving pathway planning, and ensuring young people are well supported to achieve independence and thrive in adulthood. Children, Families, Health and Care – Social Worker Recruitment and Retention Recruiting and retaining qualified children’s social workers remains a significant national challenge, driven by rising demand, high caseloads, and increasing competition across the sector. These pressures are particularly acute in areas like Hillingdon, where the complexity and volume of cases, especially linked to our role as a port authority, require a highly skilled and resilient workforce. Maintaining a stable and experienced team is essential for building trusted relationships with children and families, ensuring continuity of care, and delivering high quality, timely interventions. The graph (top left) shows the latest published vacancy rates for children’s social workers across London. Monitoring these rates is critical for identifying workforce pressures and informing strategic planning. In Hillingdon, we have taken proactive steps to strengthen recruitment and retention, including the introduction of a refreshed workforce strategy, enhanced supervision and support structures, and targeted recruitment campaigns. We are also investing in professional development pathways and promoting Hillingdon as a place where social workers can thrive and make a meaningful impact. Our social work vacancy rates are higher in the last year as we reduced the overall number of social worker posts from August 2025 as part of our revised social care delivery model aligned to The Families First Partnership Programme. Children, Families, Health and Care – Early Contact with the Youth Justice System In 2025, Hillingdon recorded 45 first-time entrants to the youth justice system, similar to the London average of 44. This metric is a key indicator of how many children and young people are entering the criminal justice system for the first time, either through conviction or youth caution. A lower rate of first-time entrants is often interpreted as a sign of effective early intervention and prevention strategies, reflecting the strength of local safeguarding partnerships and the proactive work of services across education, social care and health. In Hillingdon, this positive trend aligns with the borough’s strategic commitment to a child first approach, which prioritises the rights, needs, and potential of children while aiming to divert them from formal justice pathways wherever possible. Children, Families, Health and Care – Youth Justice: Reoffending Rates While the rate of first-time entrants is encouraging, it is important to note that reoffending rates remain a concern. In the 12 months to Q2 2024, 30.3% of young people known to have committed an offence in Hillingdon reoffended, above the London average of 28.5%. This measure tracks the proportion of young people who commit a further proven offence within a year of a previous offence. A deep dive auditcommissioned by the Youth Justice Strategic Partnership Board, identified that the majority of reoffending happened between the first offence and becoming known to Youth Justice Services. Children in the youth justice system often face multiple and overlapping challenges, including social deprivation, trauma, discrimination, and unmet health needs. These factors underscore the importance of joined-up working across sectors, ensuring that interventions are not only timely but also holistic and tailored to individual circumstances. Children, Families, Health and Care - Children with SEND – Need Assessment Education, Health and Care Needs Assessment (EHCNA) Requests are formal applications that trigger a multi-professional review of a child’s needs. Increasing numbers may indicate greater awareness, earlier identification, or growing demand for support, all contributing to timely and appropriate provision. The year began with 67 requests and saw several peaks in demand, particularly in the early months. A noticeable dip occurred during the summer period, with numbers rising again in the latter part of the year. By the end of March 2026, the number of requests had increased to 76. EHC Needs Assessments Agreed to Assess The EHCNA Agreed to Assess stage reflects the council’s decision to proceed with a full Education, Health and Care Needs Assessment. This represents a formal commitment of professional and administrative resources to thoroughly assess and understand the child’s needs. Rising volumes increase pressure on council services. This demand also drives higher assessment and support costs, impacting overall budget sustainability. At the start of the 2025/26 financial year, 72% of EHCNA requests were agreed to proceed to assessment in April. By the end of the year, this had decreased to 66% in March 2026. Agree to assess levels remained higher month-on-month compared to last year, indicating a higher proportion of requests being progressed to formal assessment. This suggests more appropriate requests are being received for assessment. Children, Families, Health and Care - Children with SEND – Need Assessment Children, Families, Health and Care – Children with SEND, EHCP Demand We are tracking both the number of Education, Health and Care Plans (EHCPs) issued and the volume of Needs Assessment Requests. EHCPs define the tailored support that children and young people with SEND are entitled to, ensuring they have access to the appropriate education, health, and care services. Number of Education Health Care Plans (EHCPs) At the start of the financial year, there were 3,536 active EHCPs. Duringthe year, the number steadily increased, reflecting continued demand for support. As of the end of March 2026, the total stood at 3,795 - representing an overall increase of approximately 7.3% compared to the start of the year, more than double the increase throughout 2024/25 (3.1%). Children, Families, Health and Care – Children with SEND, EHCP Demand The Agreed to Issue decision is made by week 16 of the process.This measure captures whether, following an Education, Health and Care Needs Assessment (EHCNA), the decision is to issue an EHCP . It reflects how often the council agrees that statutory support is needed and will be provided for a child or young person with SEND. In 2025/26, the rate of agreed-to-issue decisions fluctuated during the year. Typically, this outcome does vary throughout the year. Children, Families, Health and Care – Final EHCP 20 Week Timeliness This indicator tracks the percentage of final Education, Health and Care Plans (EHCPs) issued within 20 weeks of the initial request, in line with the statutory timescale set out in the SEND Code of Practice. Exemptions apply in limited cases (e.g. during periods of school closures), but in most circumstances, a plan should be completed within 20 weeks. A higher percentage reflects better timeliness and system responsiveness to children and young people with special educational needs. At the start of the financial year 2025/26, 71% of final EHCPs were issued within 20 weeks. Timeliness has fluctuated throughout 2025/26 but then faced a dip by the end of March 2026. However, performance in March was above national average (46%). Children, Families, Health and Care – Funded Early Education for 3 and 4-Year Olds In 2025, 87.3% of children aged 3 and 4 in Hillingdon were registered for government funded early years provision. Higher than the London average (85.4%). This number reflects how many children in this age group are benefiting from the government’s offer of free early education, helping them get a strong start to their learning and development. Providing funded early education supports children’s social, emotional, and cognitive skills, preparing them well for starting school. Children, Families, Health and Care - NEET Outcomes for 16–17 Year Olds Percentage of Young People (16-17) Not in Education, Employment or Training (NEET) In 2025, 2.5% of 16 and 17-year-olds in Hillingdon were not in education, employment or training (NEET). This is higher than the average for London (2%). The chart compares Hillingdon’s NEET rate with other London boroughs, showing that while some areas perform better, a number of boroughs face even higher NEET rates. Monitoring and addressing NEET levels is important to help young people access opportunities and support them to achieve positive outcomes. By focusing on this indicator, the council can work with local schools, employers, and training providers to help more young people in Hillingdon stay engaged and move into successful futures. Corporate Director: Sandra Taylor, Adult Social Care and Health Referrals into Adult Social Care are relatively steady, averaging 665 per month. Home-based support is becoming more complex— the number of unique clients receiving home care has fallen gradually, while the number of active services has increased, indicating more people are receiving multiple forms of support at once. Reablement is a key response— the council is using more short-term reablement support to help residents regain independence and reduce escalation into longer-term, higher-cost care. Independent living remains a relative strength— 81.1% of adults aged18–64 receiving long-term support were living in their own home or with family in2024/25, slightly above theLondon average of 78.8%. Residential and nursing support placements average 740 per month, while average support hours per resident on an adult support plan have stayed broadly stable, with an increase throughout the year from 58.1 to 66.1 hours of support given. The age profile of new entrants is consistent each month— an average of 42 in those aged 18–64, and 82 years in those aged 65+. Assessment speed is a clear challenge— Adult Social Care has an internal target to complete80% of new client assessments within 28 days, but the presentation states this has been missed consistently duringthe last two financial years. The service explicitly balances speed with quality— delays are partly attributed to complex needs, multi-agency coordination, and planned reviews, with the narrative emphasising triage and professional judgement rather than simple throughput. Completed assessment volume remains substantial— monthly assessment totals demonstrate sustained operational effort by social workers despite the timeliness gap. Overall implication— this is a capacity-and-complexity story rather than a collapse in delivery; the team is completing large volumes, but not always within the intended timeframe. Service user experience - Quality of life scores are comparatively positive— in 2024/25, Hillingdon scored19.1 out of 24on the adult social care quality-of-life measure, above theLondon average of 18.6. Overall satisfaction is broadly in line with London— the borough scored62% for satisfaction with care and support, close to theLondon average of 61.2%. Perceived control over daily life is another strong area— 75.2% of surveyed service users reported having adequate or as much control over daily life as they wanted, compared with 72.5% across London. Taken together, these measures suggest decent lived experience— despite pressure on assessments and increasing complexity, users generally report good outcomes and a sense of autonomy. Carer experience and workforce stability Carer quality-of-life outcomes are weaker than peers— Hillingdon scored6.8 out of 12for carer-related quality of life in2024/25, below theLondon average of 7.2. Carer satisfaction with services is stronger— 36.3% of carers were extremely or very satisfied with support and services, above the London average of 33.0%. This creates an important contrast— carers seem somewhat more satisfied with services than peers in other boroughs, but their own overall wellbeing remains lower. Workforce turnover is a positive signal— staff turnover in the formal care workforce was14.9% in 2024/25, well below theLondon average of 20.1%, which the presentation links to stronger continuity and better outcomes. Public Health: Childhood weight and adult physical activity Reception-age prevalence is comparatively better— 19.9% of children in Reception were overweight or living with obesity in2024/25, lower than both London and England The picture worsens by Year 6— prevalence rises to36.2% by Year 6, a gap of16.3 percentage pointsfrom Reception, which is similar to London but higher than the England gap. Childhood obesity as a major long-term health risk and notes it as a priority for the local health and wellbeing strategy through 2025–28. Adult inactivity — 30.8% of adults were physically inactive in2024/25, significantly worse than theLondon average of 21.9%. Adult Social Care’s front door is managing high volumes while maintaining strong control of demand through effective triage. Most contacts are resolved at first point or through existing services, ensuring statutory intervention is targeted appropriately. Over the period, 57,482 contacts were managed (around 4,100 per month), with only 16% progressing to a new referral. The majority were either linked to existing client records (42%) or resolved at first contact (36%). Demand is appropriately focused on statutory and higher-risk activity, including Care Act assessments and safeguarding, alongside hospital discharge, equipment, Deprivation of Liberty Safeguards and Mental Health Act work. Overall, this reflects a well-managed, high-volume service that is delivering the right response, meeting Care Act duties, and focusing resources on residents with the greatest need. Children, Families, Health and Care - Adult Social Care Demand Community long-term support is characterised by increasing complexity, with more residents requiring coordinated, multi-service packages. Currently, 2,521 people are supported through 3,978 services (c.1.6 per person), with long durations (c.2 years) reflecting sustained reliance on community provision, which accounts for around 75% of all activity. Demand is increasingly shaped by complexity, with higher reliance on combined support across home care, direct payments, supported living and outreach. This is driving both cost and delivery pressure across the system. Targeted use of reablement and digital tools such as AskSARA is strengthening early intervention and self-directed support, helping residents maintain independence and reducing avoidable escalation into long-term provision. Community services now form the backbone of Adult Social Care delivery. Performance, flow and financial grip are increasingly dependent on sufficient community capacity and stability. Demand remains structurally embedded, with core cohorts (physical care, learning disability and mental health) requiring long-term support and limited natural exit without active intervention. Children, Families, Health and Care - Adult Social Care Demand Performance data shows that in 2024/25, 81.1% of adults aged 18–64 receiving long-term support were living in their own home or with family, which is above the London average of 78.8%. This indicates that Hillingdon is performing well in the London region in enabling independent living, with a higher proportion of residents supported outside of institutional settings. The data suggests that current approaches, including community-based support and reablement, are contributing to residents maintaining independence and stability. Higher performance in this measure reflects a system that is successfully supporting people to remain in familiar environments, reducing reliance on more intensive forms of care, and improving overall outcomes for residents and reducing costs. Children, Families, Health and Care - Adult Social Care The top graph shows the number of monthly contacts by age range 18-64 and 65+. Contacts average 4,000 to 4,500 per month, with those aged 65+ driving more demand. The middle chart shows the average age within those ranges, with the 65+ cohort accounting for the larger share of contacts in most months. Average ages are very stable— within each age band, the average age barely changes over time: 18–64, around 42 years 65+, around 82 years The age profile is predictable— while contact counts fluctuate modestly, the underlying age mix within each band remains highly consistent. The bottom chart shows how many people aged over 85 have contacted adult social care services each month. The numbers are showing a downward trend in 2025/26. Children, Families, Health and Care - Adult Social Care Demand Adult Social Care ensures that everyone contacting the service is triaged at the point of contact, enabling an immediate response to risk, need and urgency. This approach supports timely decision-making and ensures that residents receive the right advice, intervention or onward allocation at the earliest opportunity. The service monitors the completion of Care Act assessments, with a locally agreed operational target for them to be completed within 28 days of referral. This measure relates to the full completion of assessments rather than initial response and is not a statutory requirement under the Care Act 2014. Performance against this target is influenced by operational factors including case complexity, multi-agency involvement, and specific cohorts such as hospital pathways and individuals subject to the Mental Health Act. While not all assessments are completed within the 28-day timeframe, residents are routinely seen, risk assessed and supported earlier in the process, with priority given to those with the greatest need. This demonstrates overall a responsive and well-managed service that is effectively balancing demand, complexity and timeliness, while maintaining a clear focus on safety, proportionality and person-centred practice. Children, Families, Health and Care - Adult Social Care Assessments The graph shows the volume of Adult Social Care assessments completed each month, demonstrating the scale of activity undertaken across the service. This sustained level of delivery reflects the ongoing work of teams managing high volumes of demand, progressing complex cases and ensuring that residents receive appropriate support. It also highlights the role of professional judgement in balancing timeliness with quality, with interventions often initiated at an earlier stage while formal assessment processes are completed. Every year, a survey is sent to randomly selected service users. This provides an excellent way for service users to feed back on a multitude of topics. It’s also helpful for Hillingdon and the government to understand service users’ views so that services can continue to be improved. This measure is an average quality of life score based on responses to the Adult Social Care Survey. It is a composite measure using responses to survey questions covering the eight domains identified in the Adult Social Care Outcome Framework (ASCOF): control, dignity, personal care, food and nutrition, safety, occupation, social participation and accommodation. In 2024/25, Hillingdon scored 19.1 out of 24, based on responses to surveys sent to service users; the average for London was 18.6. The higher the score, the better quality of life. ‘Service users’ definition: People receiving partly or wholly supported care from their local authority and not wholly private, self-funded care. Children, Families, Health and Care - Adult Social Care Service User Survey Responses (1) Children, Families, Health and Care - Adult Social Care Service User Survey Responses (2) Every year, a survey is sent to randomly selected service users. This provides an excellent way for service users to feed back on a multitude of topics. It’s also helpful for Hillingdon and the government to understand service users’ views so that services can continue to be improved. It’s important that service users’ satisfaction with care and support is as high as possible. In 2024/25, Hillingdon scored 62%, for social care- related satisfaction with care and support, based on responses to surveys sent to service users; this is similar to the London average of 61.2%. The higher the score, the more satisfied. Score based on those responding: 'I am extremely satisfied’ or 'I am very satisfied’ to 'Overall, how satisfied or dissatisfied are you with the care and support services you receive’ and those responding: 'I am very happy with the way staff help me, it's really good’ to 'How happy are you with the way staff help you?‘ ‘Service users’ definition: People receiving partly or wholly supported care from their local authority and not wholly private, self-funded care. Every year, a survey is sent to randomly selected service users. This provides an excellent way for service users to feed back on a multitude of topics. It’s also helpful for Hillingdon and the government to understand service users’ views so that services can continue to be improved. It’s important that service users have as much control over their daily life as possible. In 2024/25, Hillingdon scored 75.2%, for those service users who reported having control over their daily life, based on responses to surveys sent to service users, higher than the London average of 72.5%. The higher the score, the more service users had control. Score based on those responding: ‘I have as much control over my daily life as I want’ or ‘I have adequate control over my daily life’ to: ‘Which of the following statements best describes how much control you have over your daily life?’ ‘Service users’ definition: People receiving partly or wholly supported care from their local authority and not wholly private, self-funded care. Children, Families, Health and Care - Adult Social Care Service User Survey Responses (3) Every two years, a survey is sent to randomly selected carers. This provides an excellent way for carers to feed back on a multitude of topics. It’s also helpful for Hillingdon and the government to understand carers’ views so that services can continue to be improved. In 2024/25, Hillingdon scored 6.8 out of 12, for carer- related quality of life, based on responses to surveys sent to carers, lower than London (7.2). The higher the score, the better quality of life. The score takes into consideration: -occupation -control -personal care -safety -social participation -encouragement/support. ‘Carer’ definition: Person providing unpaid support, where they have: -received ongoing support during the year, even if no review of those arrangements took place And/or -have been assessed or reviewed for support during the year, even if no support was provided. Children, Families, Health and Care - Adult Social Care Carer Survey Responses (1) Carer-reported quality of life In 2024/25, Hillingdon achieved a carer satisfaction score of36.3% for care and support services—based on survey responses from carers. This isabove the London average of 33.0%, indicating relatively higher satisfaction among local carers. The score reflects those who responded with 'extremely satisfied'or 'very satisfied'to the question: “Overall, how satisfied or dissatisfied are you with the support or services you and the person you care for have received from Social Services in the last 12 months?” The term ‘carer’ refers to individuals providing unpaid support who either received ongoing support during the year (even without a formal review) or were assessed or reviewed for support (even if no support was ultimately provided). Children, Families, Health and Care - Adult Social Care Carer Survey Responses (2) Overall satisfaction of carers with social services In 2024/25, Hillingdon’s proportion of staff in the formal care workforce leaving their role was 14.9%, below the London average of 20.1%. It is based on directly employed staff only, agency staff are not included in these estimates. Higher staff leaver rates indicate that a greater share of social care staff have left their roles in the previous 12 months. A lower turnover rate reflects greater workforce stability and consistency, which supports better outcomes for residents. Children, Families, Health and Care - Adult Social Care Staff Turnover There is concern about the rise of childhood obesity and the implications of obesity persisting into adulthood. The risk of obesity in adulthood and risk of future obesity-related ill health are greater as children get older. Studies tracking child obesity into adulthood have found that the probability of children who are overweight or living with obesity becoming overweight or obese adults increases with age. The health consequences of childhood obesity include Type 2 Diabetes, hypertension and the exacerbation of conditions such as asthma and psychological problems such as social isolation, low self-esteem, teasing and bullying. 19.9% of Reception children were overweight or living with obesity in 2024/25, lower than both London and England. Children, Families, Health and Care – Public Health, prevalence of overweight (including obesity) in Reception aged children Year 6 prevalence of overweight (including obesity) was 36.2% in 2024/25; this represents a difference of 16.3 percentage points from Reception to Year 6, similar to London but higher than England differences (16.2 and 12.7). Hillingdon’s trend is below England for Reception but above England for Year 6. Reducing childhood obesity is a strategic priority for Hillingdon’s Health andWellbeing Board throughout 2025-28. Children, Families, Health and Care – Public Health, prevalence of overweight (including obesity) in Year 6 children This is the percentage of respondents aged 19 and over, doing less than 30 moderate intensity equivalent (MIE) minutes' physical activity per week in bouts of 10 minutes or more in the previous 28 days expressed as a percentage of the total number of respondents. In 2024/25, the percentage of physically inactive adults in Hillingdon was 30.8%, above the London average of 21.9%. Children, Families, Health and Care – Public Health, physical activity (adults) Cabinet Member: Cllr Adam Bennett Portfolio: Community, Environment and Enforcement Our commitments to residents Safe and strong communities A green and sustainable borough Corporate Director: Dan Kennedy, Residents Services Anti-social behaviour (ASB) and crime - Anti-social behaviour remains persistently high — monthly ASB enquiries average over 600 per month, with some seasonal variation but no real sign of a sustained drop. Relative performance is better than London overall — despite the high absolute numbers, Hillingdon has consistently lower rates than the London average. Crime levels are also high and fairly stable — recorded crime averages around 2,600 incidents per month, fluctuating month to month but without a major directional shift. Fly-tipping enforcement - Enforcement activity is exceptionally low relative to London — Hillingdon records 24 enforcement actions per 1,000 incidents, compared with a London average of 638.9. Data coverage is part of the caveat — the incidents shown are only those reported to the local authority and exclude incidents reported directly to the Environment Agency. What it means in practice — this is presented less as a clean performance judgment and more as a reminder that enforcement statistics need context before drawing conclusions.

Text extracted automatically from the PDF, so layout, tables and images are not shown. Only the start of this long document is shown here. Open the original PDF on LB Hillingdon’s website.

25. Forward Plan PDF 236 KB
RESOLVED: That the Forward Plan be noted.
📄 Forward Plan PDF 236 KB
Read the text of this document (2 pages)
Audit, Performance & Finance Committee – 15 July 2026 Part I – Public CABINET FORWARD PLAN Committee name Audit, Finance & Performance Committee Officer reporting Anisha Teji, Democratic Services Papers with report Appendix A – Latest Forward Plan Ward As shown on the Forward Plan HEADLINES To monitor the Cabinet’s latest Forward Plan which sets out key decisions and other decisions to be taken by the Cabinet collectively and Cabinet Members individually over the coming year. The report sets out the actions available to the Committee. RECOMMENDATION That the Committee considers the Cabinet Forward Plan. SUPPORTING INFORMATION This is for consideration under the Committee’s Overview and Scrutiny distinct remit only. The Cabinet Forward Plan is published monthly, usually around the first or second week of each month. It is a rolling document giving the required public notice of future key decisions to be taken. Should a later edition of the Forward Plan be published after this agenda has been circulated, Democratic Services will update the Committee on any new items or changes at the meeting. As part of its Terms of Reference, the Committee should consider the Forward Plan and , if it deems necessary, comment as appropriate to the decision-maker on the items listed which relate to services within its remit. For reference, the Forward Plan helpfully details which committee’s remit covers the relevant future decision item listed. The Committee’s monitoring role of the Forward Plan can be undertaken in a variety of ways , including both pre -decision and post -decision scrutiny of the items listed . The provision of advance information on future items listed (potentially also draft reports) to the Committee in advance will often depend upon a variety of factors including timing or feasibility, and ultimately any such request would rest with the relevant Cabinet Member to decide. However, the 2019 Protocol on Overview & Scrutiny and Cabinet Relations (part of the Hillingdon Constitution) does provide guidance to Cabinet Members to:  Actively support the provision of relevant Council information and other requests from the Committee as part of their work programme;  Where feasible, provide opportunities for committees to provide their input on forthcoming executive reports as set out in the Forward Plan to enable wider pre -decision scrutiny (in addition to those statutorily required to come before committees , i.e. policy framework documents – see para. below). Audit, Performance & Finance Committee – 15 July 2026 Part I – Public Therefore, in general, the Committee may consider the following actions on specific items listed on the Forward Plan: Committee action When How 1 To provide specific comments to be included in a future Cabinet or Cabinet Member report on matters within its remit. As part of its pre-decision scrutiny role, this would be where the Committee wishes to provide its influence and views on a particular matter within the formal report to the Cabinet or Cabinet Member before the decision is made. This would usually be where the Committee has previously considered a draft report or the topic in detail, or where it considers it has sufficient information already to provide relevant comments to the decision-maker. These would go within the standard section in every Cabinet or Cabinet Member report called “Committee comments”. The Cabinet or Cabinet Member would then consider these as part of any decision they make. 2 To request further information on future reports listed under its remit. As part of its pre-decision scrutiny role, this would be where the Committee wishes to discover more about a matter within its remit that is listed on the Forward Plan. Whilst such advance information can be requested from officers, the Committee should note that information may or may not be available in advance due to various factors, including timescales or the status of the drafting of the report itself and the formulation of final recommendation(s). Ultimately, the provision of any information in advance would be a matter for the Cabinet Member to decide. This would be considered at a subsequent Committee meeting. Alternatively, information could be circulated outside the meeting if reporting timescales require this. Upon the provision of any information, the Committee may then decide to provide specific comments (as per 1 above). 3 To request the Cabinet Member considers providing a draft of the report, if feasible, for the Committee to consider prior to it being considered formally for decision. As part of its pre-decision scrutiny role, this would be where the Committee wishes to provide an early steer or help shape a future report to Cabinet, e.g., on a policy matter. Whilst not the default position, Committees do occasionally receive draft versions of Cabinet reports prior to their formal consideration. The provision of such draft reports in advance may depend upon different factors, e.g., the timings required for that decision. Ultimately any request to see a draft report early would need the approval of the relevant Cabinet Member. Democratic Services would contact the relevant Cabinet Member and Officer upon any such request. If agreed, the draft report would be considered at a subsequent Committee meeting to provide views and feedback to officers before they finalise it for the Cabinet or Cabinet Member. An opportunity to provide specific comments (as per 1 above) is also possible. 4 To identify a forthcoming report that may merit a post- decision review at a later Committee meeting As part of its post-decision scrutiny and broader reviewing role, this would be where the Select Committee may wish to monitor the implementation of a certain Cabinet or Cabinet Member decision listed/taken at a later stage, i.e., to review its effectiveness after a period of 6 months. The Committee should note that this is different to the use of the post-decision scrutiny ‘call-in’ power which seeks to ask the Cabinet or Cabinet Member to formally re-consider a decision up to 5 working days after the decision notice has been issued. This is undertaken via the new Scrutiny Call-in App members of the relevant Committee. The Committee would add the matter to its multi- year work programme after a suitable time has elapsed upon the decision expected to be made by the Cabinet or Cabinet Member. Relevant service areas may be best to advise on the most appropriate time to review the matter once the decision is made. BACKGROUND PAPERS  Protocol on Overview & Scrutiny and Cabinet relations adopted by Council 12 September 2019  Scrutiny Call-in App

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

📄 260715 - Forward Plan , item 25. PDF 125 KB
Read the text of this document (2 pages)
Status Consultation / Scrutiny Ref Business Item Further information Ward(s) NEW ITEM CABINET meeting Cabinet Member Shareholder Committee Full COUNCIL Cabinet Member(s) Responsible Relevant Committee Report Author Corporate Director Responsible Public or Private (with reason) Consultation related to any decision & planned scrutiny committee engagement 154 Consideration of setting a licensed deficit budget for any schools in the Borough A standard report each year, where Cabinet may consider whether it is required to set any licensed deficit budget for any schools that have applied. TBC 23 July Cllr Susan O'Brien / Cllr Eddie Lavery Audit, Finance & Performance Luisa Hansen Steve Muldoon / Pete Carpenter / Julie Kelly Public SI Monthly Council Budget - monitoring report The Cabinet receives a monthly report setting out in detail the Council’s revenue and capital position. All 23 July Cllr Eddie Lavery Audit, Finance & Performance Andy Goodwin / Matt Davis Steve Muldoon / Pete Carpenter Public Audit, Finance & Performance Committee to review after Cabinet SI Monthly Council Budget - monitoring report The Cabinet receives a monthly report setting out in detail the Council’s revenue and capital position. All 17 September Cllr Eddie Lavery Audit, Finance & Performance Andy Goodwin / Matt Davis Steve Muldoon / Pete Carpenter Public Audit, Finance & Performance Committee to review after Cabinet 134 Banking, Client Money Manager and Merchant Services Following delegated authority from Cabinet in 2019, the Leader and relevant Cabinet Member will consider contract decisions for the Council's banking services, Client Money Manager Account and Merchant Services. N/A September Cllr Eddie Lavery Audit, Finance & Performance Annette Reeves / Trudie Eldriny / Michelle Kenyon Steve Muldoon Private (3) SI Hillingdon First Ltd. reporting The Shareholder Committee, comprising relevant Cabinet Members, will receive the Annual Accounts and Annual Business Plan for the Council's property and trading company. N/A 17 September Shareholder Committee Members Corporate Resources & Infrastructure TBC Sandra Taylor Private (3) SI The Hillingdon Care Company Ltd. Reporting The Shareholder Committee, comprising relevant Cabinet Members, will receive the Annual Accounts and Annual Business Plan for the Council's care services and trading company. N/A 17 September Shareholder Committee Members Children, Families, Health & Care TBC Dan Kennedy Private (3) SI Audit, Finance & Performance Committee Annual Report The Committee is required to submit an annual report to Council outlining its activities over the previous year in relation to its distinct audit and assurance work sessions: Internal Audit, External Audit, Counter Fraud, Risk Management and the Financial reporting process of the Statement of Accounts. A further report will be submitted to the Council in May regarding the Committee's separate overview and scrutiny sessions as part of the Annual Scrutiny Report. N/A 24 September N/A Audit, Finance & Performance Committee Democratic Services / Claire Baker Steve Muldoon Public OCTOBER 2026 Decision-Maker Cabinet / Committee Leads & Officers JULY 2026 SEPTEMBER 2026 1 Status Consultation / Scrutiny Ref Business Item Further information Ward(s) NEW ITEM CABINET meeting Cabinet Member Shareholder Committee Full COUNCIL Cabinet Member(s) Responsible Relevant Committee Report Author Corporate Director Responsible Public or Private (with reason) Consultation related to any decision & planned scrutiny committee engagement Decision-Maker Cabinet / Committee Leads & Officers 136 Corporate Peer Review The Local Government Association (LGA) conducts Corporate Peer Challenges to provide councils with constructive peer feedback on their performance and improvement strategies. Reports and action plans are published following these reviews, detailing findings and recommendations, which will be presented to Cabinet for consideration. N/A NEW ITEM 22 October Cllr Steve Tuckwell All LGA Tony Zaman / All Public 135 The Council's Insurance Contracts Cabinet will consider contracts with insurance providers, following a competitive tender exercise for the Council's insurance which is up for renewal. N/A 17 September Cllr Eddie Lavery Audit, Finance & Performance Harrison Thorpe / Trudie Eldriny Steve Muldoon / Pete Carpenter Private (3) SI Monthly Council Budget - monitoring report The Cabinet receives a monthly report setting out in detail the Council’s revenue and capital position. All 22 October Cllr Eddie Lavery Audit, Finance & Performance Andy Goodwin / Matt Davis Steve Muldoon Public Audit, Finance & Performance Committee to review after Cabinet SI Monthly Council Budget - monitoring report The Cabinet receives a monthly report setting out in detail the Council’s revenue and capital position. All 19 November Cllr Eddie Lavery Audit, Finance & Performance Andy Goodwin / Matt Davis Steve Muldoon Public Audit, Finance & Performance Committee to review after Cabinet 162 Biannual Performance Report Cabinet will receive its biannual report performance report for the current year, looking back on how the Council is delivering on key service metrics and the Council Strategy - and looking ahead at planned actions. N/A 17 December Cllr Richard Mills Audit, Finance & Performance Ian Kavanagh Matthew Wallbridge Public Audit, Finance & Performance Committee to review after Cabinet SI Monthly Council Budget - monitoring report The Cabinet receives a monthly report setting out in detail the Council’s revenue and capital position and other key financial decisions required. All 17 December Cllr Eddie Lavery Audit, Finance & Performance Andy Goodwin / Matt Davis Steve Muldoon Public Audit, Finance & Performance Committee to review after Cabinet SI 2027/28 Budget and Future Medium- Term Financial Strategy (BUDGET FRAMEWORK) This report will set out the Medium Term Financial Strategy (MTFS), which includes the draft General Fund reserve budget and capital programme for 2027/28 for consultation, along with indicative projections for the following four years. This will also include the HRA rents for consideration and may include Council Tax Reduction Scheme proposals. All 17 December 25 February 2027 Cllr Eddie Lavery Audit, Finance & Performance Andy Goodwin / Matt Davis Steve Muldoon Public Public consultation, consultation with the Audit, Finance & Performance Committee, along with statutory consultation with businesses ratepayers. SI = Standard Item that may be considered each month/regularly The Cabinet's Forward Plan is an official document by the London Borough of Hillingdon, UK Schedule of Individual Cabinet Member Decisions that may be taken each month (standard items non key-decisions) NOVEMBER 2026 DECEMBER 2026 2

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

26. Work Programme & update on Independent Chair recruitment PDF 311 KB
RESOLVED: That the Committee noted the update on the recruitment for the Independent Chair of the Audit Committee and work programme.
📄 Work Programme & update on Independent Chair recruitment PDF 311 KB
Read the text of this document (9 pages)
Classification: Public Audit, Finance & Performance Committee – 15 July 2026 AUDIT, FINANCE & PERFORMANCE COMMITTEE – MULTI-YEAR WORK PROGRAMME Committee name Audit, Finance & Performance Committee Officer reporting Anisha Teji, Democratic Services Papers with report None Ward All HEADLINES This report is to enable the Audit, Finance & Performance Committee to review planned meeting dates and the work programme. RECOMMENDATIONS That the Committee considers the Work Programme and agrees any amendments. SUPPORTING INFORMATION The Committee's meetings will start at 6pm. Forthcoming meeting dates are as follows and the work programme set out afterwards which can be adjusted as the Committee sees fit: Meetings Room 5 August 26 CR 5 Potential special meeting for Ind. Chair interviews 23 September 26 CR 5 3 November 26 CR 5 25 November 26 CR 5 27 January 27 CR 5 3 March 27 CR 5 1 April 27 CR 5 5 May 27 CR 5 Classification: Public Audit, Finance & Performance Committee – 15 July 2026 Meeting Date: 5 August 26 Audit/Assurance Session Overview/Scrutiny Session Lead Officer M2 Monthly Budget Monitoring (reported to Cabinet on 23 July 26) Steve Muldoon – Finance Strategic Risk Register Steve Muldoon / Pete Carpenter – Finance Forward Plan Anisha Teji - Democratic Services Work Programme Anisha Teji - Democratic Services Report Deadline: 24 July 2026 Meeting Date: TBC – Special Meeting Interviews for Ind. Chair TBC Democratic Services Report Deadline: TBC Classification: Public Audit, Finance & Performance Committee – 15 July 2026 Meeting Date: 23 September 2026 Audit/Assurance Session Overview/Scrutiny Session Lead Officer Governance Review Improvement Plan Update + Financial Modernisation Plan Update s151 – Steve Muldoon Matthew Wallbridge Daniel Toohey, Monitoring Officer Report back to Full Council on Section 24 recommendations Pete Carpenter - Statutory Accounting, Investments & Pension Updates on Accounts + AGS sign off by Members Pete Carpenter - Statutory Accounting, Investments & Pension External Audit item Pete Carpenter - Statutory Accounting, Investments & Pension Risk Assurance Reports Claire Baker - Internal Audit & Risk Assurance Counter Fraud Progress Report 26/27 Q1 Alex Brown – Counter Fraud Internal Audit Update Claire Baker - Internal Audit & Risk Assurance M4 Monthly Budget Monitoring (reported to Cabinet 17 September) Steve Muldoon – Finance Forward Plan Anisha Teji - Democratic Services Work Programme Anisha Teji - Democratic Services Report Deadline: 11 September 2026 Classification: Public Audit, Finance & Performance Committee – 15 July 2026 Meeting Date: 3 November Audit/Assurance Session Overview/Scrutiny Session Lead Officer Service Scrutiny item - TBC TBC M5 Monthly Budget Monitoring (reported to Cabinet on 22 October) Steve Muldoon – Finance Forward Plan Anisha Teji - Democratic Services Work Programme Anisha Teji - Democratic Services Report Deadline: 21 October 2026 Classification: Public Audit, Finance & Performance Committee – 15 July 2026 Meeting Date: 25 November 2026 Audit/Assurance Session Overview/Scrutiny Session Lead Officer Governance Review Improvement Plan Update + Financial Modernisation Plan Update s151 – Steve Muldoon Matthew Wallbridge Daniel Toohey, Monitoring Officer External Audit Draft Annual Reports (Pension Fund & Council) Risk Assurance Reports Claire Baker - Internal Audit & Risk Assurance Internal Audit Update Claire Baker - Internal Audit & Risk Assurance Counter Fraud Progress Report – 26/27 Q2 Alex Brown – Counter Fraud Forward Pan Anisha Teji - Democratic Services M6 Monthly Budget Monitoring (reported to Cabinet on 19 November) Steve Muldoon – Finance Work Programme Anisha Teji - Democratic Services Report Deadline: 13 November 2026 Classification: Public Audit, Finance & Performance Committee – 15 July 2026 Meeting Date: 27 January 2027 Audit/Assurance Session Overview/Scrutiny Session Lead Officer Statement of Accounts Cabinet Budget Proposals on behalf of all Select Committees (reported to Cabinet 17 December) Steve Muldoon – Finance Strategic Risk Register Steve Muldoon – Finance Bi- Annual Performance Report 26/27 (reported to Cabinet 17 December) Matthew Wallbridge/ Ian Kavangh – Corporate Services Forward Plan Anisha Teji - Democratic Services Work Programme Anisha Teji - Democratic Services Report Deadline: 15 January 2027 Classification: Public Audit, Finance & Performance Committee – 15 July 2026 Meeting Date: 3 March 2027 Audit/Assurance Session Overview/Scrutiny Session Lead Officer Governance Review Improvement Plan Update + Financial Modernisation Plan Update s151 – Steve Muldoon Matthew Wallbridge Daniel Toohey, Monitoring Officer External Audit item Risk Assurance Reports Claire Baker - Internal Audit & Risk Assurance Internal Audit Update Claire Baker - Internal Audit & Risk Assurance Internal Audit Plan 27/28 Claire Baker - Internal Audit & Risk Assurance Internal Audit Charter Claire Baker - Internal Audit & Risk Assurance Counter Fraud Operational Work Plan 27/28 Alex Brown – Counter Fraud Counter Fraud Progress Report – 26/27 Q3 Alex Brown – Counter Fraud M9 Monthly Budget Monitoring (reported to Cabinet 18 February) Steve Muldoon – Finance Forward Plan Anisha Teji - Democratic Services Work Programme Anisha Teji - Democratic Services Report deadline: 19 February 2027 Classification: Public Audit, Finance & Performance Committee – 15 July 2026 Meeting Date: 1 April 2027 Audit/Assurance Session Overview/Scrutiny Session Lead Officer Service Scrutiny item - TBC TBC M6 Monthly Budget Monitoring (reported to Cabinet 25 March) Steve Muldoon – Finance Forward Plan Anisha Teji - Democratic Services Work Programme Anisha Teji - Democratic Services Report Deadline: 19 March 2027 Classification: Public Audit, Finance & Performance Committee – 15 July 2026 Meeting Date: 5 May 2027 Audit/Assurance Session Overview/Scrutiny Session Lead Officer Governance Review Improvement Plan Update + Financial Modernisation Plan Update s151 – Steve Muldoon Matthew Wallbridge Daniel Toohey, Monitoring Officer External Audit Claire Baker - Internal Audit & Risk Assurance Risk Assurance Annual Report – 26/27 Claire Baker - Internal Audit & Risk Assurance Internal Audit Annual Report – 26/27 Claire Baker - Internal Audit & Risk Assurance Committee Annual Report - 26/27 Counter Fraud Progress Update– 26/27 Q4 Alex Brown – Counter Fraud M6 Monthly Budget Monitoring (reported to Cabinet 29 April) Steve Muldoon – Finance Forward Plan Anisha Teji - Democratic Services Work Programme Anisha Teji - Democratic Services Report deadline: 23 April 2027

Text extracted automatically from the PDF, so layout, tables and images are not shown. Open the original PDF on LB Hillingdon’s website.

Page Updated: