Agenda and minutes

There were no apologies.

There were no declarations.

To agree the public minutes and non-public summary of the previous meeting held on 15 September 2025.

RESOLVED - That, the public and non-public summary minutes of the meeting held on 15 September 2025 were agreed as a correct record.

Members are asked to note the Committee’s Outstanding Actions List.

The Committee received a report of the Town Clerk concerning outstanding actions.

The Chairman had advised that Members defer any questions until the non-public session, as the outstanding action related to confidential information concerning the recruitment of an external Member.

RESOLVED - That, the report be noted.

Members are asked to note the Committee’s Work Programme.

The Committee received a report of the Group Chief Internal Auditor concerning the amendments to the proposed Committee dates for 2026, and the revised schedule of meetings for 2027.

The Chief Strategy Officer highlighted three items needing updating in the work programme:

• May 2026 - Annual Risk Management Report
• July 2026 - Risk Appetite Update, which would provide a key update incorporating ongoing work on risk appetite and any revisions required following consideration by Service Committees and Boards
• November 2026 – Risk Appetite Update

The work programme would be updated ahead of the next Committee meeting.

A Member sought clarification on the use of the term ‘work programme’, noting that it suggested the inclusion of the underlying audits and reviews. The Member revealed how the programme was more of a Committee programme and suggested that the terminology be clarified to indicate that underlying work, projects, and reviews are scheduled and managed separately. The Group Chief Internal Auditor suggested that renaming it ‘Committee Cycle of Business’ might provide greater clarity.

RESOLVED - That, the report be noted.

Report of the Group Chief Internal Auditor.

The Committee received a report of the Group Chief Internal Auditor concerning an update on the activity of the Anti-Fraud and Investigation team during the first half of the 2025/26 reporting year.

The following discussion took place:

a)    The Deputy Chair commended the Counter Fraud and Investigations Team for their work and the quality of the report and requested further information on the key themes arising from the recent fraud prevention workshops. The Counter Fraud & Investigations Manager explained that findings primarily related to employee matters, with significant themes emerging around collaboration between the Investment Property Group and Commercial teams in addressing risks. A joint session was planned to facilitate this work.

b)    A Member queried whether the report should reference mid-year 2025–26 rather than 2024, the Officer confirmed that this was a mistake. The Member also encouraged inclusion of return on investment (ROI) metrics and drawing on sector examples to enhance the report.

c)    A Member expressed his interest in reading the investigations and processes undertaken but noted the absence of any reference to criminal proceedings. He queried whether police involvement formed part of the process, due to significant figures which indicated large-scale fraud. The Officer confirmed that police involvement occurred where necessary, noting that most investigations were managed internally and prosecutions were undertaken under Local Government powers under the Fraud Act. One case was awaiting trial at the Old Bailey, scheduled for next Spring, and two further business rates cases were being prepared for prosecution.

d)    A Member requested further information regarding Social Housing Tenancy Fraud and its interaction with credit reference agencies. The Officer explained that credit reference data was used to review mortgage records, deceased data, and links to other addresses, as well as check whether tenants were listed at different properties. The process generated risk scores

Report of the Chief Strategy Officer.

The Committee received a report of the Chief Strategy Officer updating Members on the City of London Corporation’s risk management which included the corporate and top rated red departmental risk registers.

The following points were noted:

a)    Risk titles - The Deputy Chair commented on the naming of new risks and noted that the titles were not always clear and amending the wording might provide greater clarity. The Chief Strategy Officer responded that this would be raised with risk owners and the Chief Officer Risk Management Group (CORMG). She explained that the current approach to titles and descriptions was intentional, following previous Committee feedback to avoid excessive detail to maintain a clear focus on the risk itself.

b)    Risk CR35 - A Member sought clarity on risk CR35, Unsustainable Medium-Term Finances – City Fund. They queried whether potential Government proposals on business rates redistribution could affect the current risk score and noted that the target score was set at half the current level, questioning the realism of achieving this by the end of the financial year given the constant trajectory. The Chamberlain advised that by March 2026, more information would be available on transitional relief within the settlement period, which was expected to provide financial cover for the next couple of years.

c)    Chief Risk Officer Network - A Member asked whether engagement with the Chief Risk Officer Network would continue following the Chief Strategy Officer’s attendance at their launch (hosted by the former Lord Mayor). The Chief Strategy Officer confirmed this and outlined two ways this was taking place: through the City of London Corporation as host, and through engagement with risk practitioners to integrate risk into business decision-making. The Chief Strategy Officer further advised that the Chief Risk Officer Summit would again be hosted by the City of

Report of the Group Chief Internal Auditor.

The Committee received a report of the Group Chief Internal Auditor updating Members on the Internal Audit activity between 1 July 2025 and 30 September 2025.

The following questions were raised during discussion:

a)    A Member requested further information regarding the Internal Audit review of consultancy use. The Member noted that the reported range of £20m–£60m in 2024/25 was significant and observed that this linked to the recommendations made. He also noted that management actions were scheduled for completion by October with a follow-up in November and asked for an update on progress. The Group Chief Internal Auditor confirmed that of the three recommendations made, one had been fully implemented, and progress was being made on the remaining two. He advised that the recommendation relating to the chart of accounts was well advanced and linked to the implementation of the new SAP system and transition to the new ERP platform.

b)    A Member requested clarification on whether a system existed to map consultancy expenditure against internal resources and asked if a skills audit had been undertaken to identify gaps between consultancy provision and in-house capability. The Member queried whether in cases of capacity issues, there was a process for internal training. The Chamberlain explained that the ability to address this effectively required foundational data on roles and responsibilities across the organisation, which would be available through the new SAP system.

c)    The Chief People Officer advised that a strategic workforce planning role would form part of the HR transformation and would be introduced as part of the recruitment drive. He emphasised the importance of data in shaping future workforce planning and confirmed that HR business partners were working to identify the nature of activities undertaken, the skills required, and the most appropriate resourcing approach. Using data would enable informed decisions,

(To follow)

The Committee considered a report of the Chamberlain detailing the consolidated financial statement for City’s Estate, for the year ending 31 March 2025, and the audit findings report. This item was received as a late submission. 

The report author introduced the two late items and advised that he would present items 9 and 10 together due to their similarities. Members were informed that the reports had already been considered by the Finance Committee earlier in November and approved for the necessary delegations to sign, subject to review and approval by the Audit and Risk Management Committee. If Members were content to approve the recommendations, the required signings could proceed. It was highlighted that the key messages from the Finance Committee regarding the City’s Estate accounts were to note the overall reduction on the net asset position, which reflected the scale of investment across major programmes and the need to dispose of assets to fund them. Overall, it was conveyed that the reports demonstrated progress.

The Committee discussed the decline in net assets of the City’s Estate. The Chamberlain explained that the asset base was being drawn down to fund investment in operational property, which was acceptable during periods of growth but required careful management. She acknowledged that the current level of drawdown was unsustainable and reflected a significant catch-up period following years of underinvestment in operational property.

Auditors from Crowe summarised their findings for Members, noting that the Audit was nearly completed. 

Management Accounts:

The Auditors addressed concerns regarding management accounts and recommended that the City Corporation adopt a process for routinely producing them. This recommendation was raised previously and aimed to strengthen top-level controls and provide formal oversight throughout the year.

The Chamberlain confirmed that monthly accounts were provided to all committees and boards, with reports including any internal

Report of The Chamberlain.

The Committee considered a report of the Chamberlain providing an update on the annual reports and financial statements for the 11 Sundry Trust charities for the year ended 31 March 2025.

RESOLVED – That Members,

• Recommend approval to the Chairman and Deputy Chairman of Finance Committee, for signing of the 11 charities presented for the year ended 31 March 2025, for those charities where the Corporation is Trustee;
• Recommend to the Chairman and Deputy Chairman of Finance Committee, the authority to recommend the accounts to the Aldermen for the Emanuel Hospital charity where the Corporation is acting by the Court of Aldermen as the named corporate trustee; and to the individual trustees of the Sir William Coxen Trust Fund and the Samuel Wilson Loan Charity for the year ending 31 March 2025

There were no questions.

There was no other business raised.

MOTION, that – under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of the Schedule 12A of the Local Government Act.

RESOLVED, that – under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of the Schedule 12A of the Local Government Act.

To agree the non-public minutes of the previous meeting held on 15 September 2025.

RESOLVED: That, the non-public minutes of the previous meeting held on 15 September 2025 be approved as an accurate record, with the ransomware policy shared.

Non-Public Appendix to be received in conjunction with Item 7.

The Committee received the non-public appendix, which was received in conjunction with item 7. The appendix outlined the status of each corporate risk.

There were no questions raised.

The Committee discussed the one outstanding action list which was at item 4.