Agenda Document Pack - Audit and Scrutiny Panel - 04/03/2026
North Lanarkshire Council · 4 March 2026
Back to Audit and Scrutiny Panel — 4 March 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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23 February 2026 Members of the Audit and Scrutiny Panel Chief Executive’s Office Rachel Blair Chief Officer (Legal & Democratic) Civic Centre, Windmillhill Street, Motherwell ML1 1AB www.northlanarkshire.gov.uk Notice is given that a Meeting of the Audit and Scrutiny Panel is to be held in the Council Chamber, Civic Centre, Windmillhill Street, Motherwell, ML1 1AB on Wednesday, 04 March 2026 at 14:00 PM which you are requested to attend. The agenda of business is attached. Rachel Blair Chief Officer (Legal & Democratic) Members : Clerk Name: Karen Swan Clerk Telephone: 07919 730272 Clerk Email: committee@northlan.gov.uk S Watson, P Kelly, C Costello, M Hughes, J Hume, D Johnston, J Leckie, A McCrory, M McCulloch, J McLaren, G Robinson. Page 1 of 188
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Agenda 1 Declarations of Interest In Terms of the Ethical Standards In Public Life Etc. (Scotland) Act 2000 Financial 2 Changes to the Code of Practice on Local Authority Accounting 2025/26 Submit report by Chief Officer (Finance and Technology) highlighting significant changes to the code or guidance in the Technical Bulletins impacting on the accounting requirements and presentation of the Council’s 2025/26 Annual Accounts. 7 - 12 Scrutiny Related Items 3 Housing Performance Update Submit report by the Chief Officer (Housing and Communities) providing a response in respect to an explanation for the variance between the red indicators shown in the housing section of the quarterly performance assurance review report and accompanying narrative for these indicators as presented to Panel on 13 November 2025. 13 - 22 4 Auditing Best Value in Local Government - Update Submit a joint report by the Interim Chief Officer (Strategy and Engagement) and the Chief Officer (Legal and Democratic) providing an update on the national approach to auditing Best Value that will be implemented during 2026/27. 23 - 30 5 Scrutiny Work Programme - Annual Update Submit a joint report by the Interim Chief Officer (Strategy and Engagement) and the Chief Officer (Legal and Democratic) providing an annual update in relation to the Work Programme for the Scrutiny function of the Audit and Scrutiny Panel. 31 - 44 Page 3 of 188
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6 Performance Reporting Schedule - Quarterly Performance Assurance Review Submit a joint report by the Interim Chief Officer (Strategy and Engagement) and the Chief Officer (Legal and Democratic) providing the outcome from the latest quarterly performance assurance review that has been undertaken on performance reports previously submitted to council committees during cycle 4 of 2025. 45 - 72 7 Project Management Framework Quality Assurance - Annual Report Submit a joint report by the Interim Chief Officer (Strategy and Engagement) and the Chief Officer (Legal and Democratic) setting out the annual update of the Quality Assurance arrangement as at January 2026 and the review of Project Management Framework Programme. 73 - 96 Audit Related Items 8 Audit and Risk Related Items: Action Log Submit report by the Chief Officer (Audit and Risk) advising of the implementation of outstanding requests and recommendations made by the Panel in respect of audit and risk-related items. 97 - 98 9 Internal Audit: Progress Report Submit report by the Chief Officer (Audit and Risk) providing an overview of Internal Audit activity and audit reports issued since the last update to the Panel in November 2025. 99 - 140 10 Internal Audit: Follow-up of Implementation of Audit Recommendations Submit report by the Chief Officer (Audit and Risk) updating the Panel on the progress made by management in the implementation of Internal and External Audit recommendations. 141 - 154 11 Risk Management Update Submit report by the Chief Officer (Audit and Risk) providing an overview the Corporate Risk Register and developments on Corporate Risks since the last meeting of the Panel. 155 - 162 Page 4 of 188
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12 Audit Scotland – Annual Audit Plan 2025-26 Submit report by the Chief Officer (Audit and Risk) providing oversight of the Audit Scotland Annual Audit Plan 2025-26. 163 - 188 Page 5 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? Ref GT/KS/FC Date ☐ Yes ☒ No 04/03/26 Changes to the Code of Practice on Local Authority Accounting 2025/26 From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone 07583 010692 Executive Summary The Council’s Financial Statements are compiled in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom (the Code) which is based on International Financial Reporting Standards (IFRS), as well as the requirements of accounting and statutory guidance of central government. Further, the Code requires Appointed Auditors to pay due attention to quarterly Bulletins published by Audit Scotland Professional support. The purpose of this report is to highlight any significant changes to the Code or guidance in the Technical Bulletins which may impact on the accounting requirements and presentation of the Council’s 2025/26 Annual Accounts. The 2025/26 Unaudited Annual Accounts are due to be submitted to External Audit by 30 June 2026. Recommendations It is recommended that the Audit and Scrutiny Panel: (1) Acknowledge the contents of the report; and (2) Recognise the actions being taken to ensure the Council submits a fully compliant set of Annual Accounts to External Audit The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning Programme of Work Statutory / corporate / service requirement Item 2 Page 7 of 188
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1. Background 1.1 The Council prepares its Annual Accounts in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom (the Code) which sets out proper accounting practices. The Code, which is updated annually, is developed by CIPFA/LASAAC and based on International Financial Reporting Standards (IFRS). 1.2 Technical Bulletins are issued quarterly by Audit Scotland Professional Support which also provide guidance for Annual Accounts preparation. 2. Report Review of the Code 2.1 Finance maintain an awareness of changes to accounting practices and assess the impact, if any, these changes may have on the Council’s procedures and reported financial position. 2.2 The process for review is carried out throughout the year and includes contributing to consultations on the development of future Codes of Practice; an assessment of the latest edition of the Code; review of the quarterly Audit Scotland Bulletins; and attending CIPFA run workshops to discuss and share best practice for the implementation of any changes adopted by the Code. This process will highlight where changes are required to our financial reporting. 2.3 Finance will work with all relevant parties within the Council to ensure that changes are fully assessed and that any necessary amendments to current working practices are implemented, so that the Council’s Financial Statements remain fully compliant with the Code. 2.4 As identified in the 2024/25 Annual Accounts, the 2025/26 code has reflected amendments to the following standards with an effective date of 1 April 2025, however, there are no material changes expected from the introduction of these amendments; • IAS 1 (Presentation of Financial Statements) – Classification of Liabilities as Current or Non-Current. • IFRS16 (Leases) - Lease Liability in a Sale and Leaseback • IAS 1 (Presentation of Financial Statements) - Non-current Liabilities with Covenants. • IAS 12 (Income Taxes) – International Tax Reform: Pillar Two Model Rules. • IAS7 (Statement of Cash Flows) and IFRS 7 (Financial Instruments) – Supplier Finance Arrangements. Land and Building Valuations 2.5 Following a thematic review undertaken by HM Treasury on Non-Investment Asset Valuation, which identified areas for improvement in the existing approach to asset valuations, a revised approach to asset valuations has been introduced within the 2025/26 Code. The Code requires valuations once every five years or on a five-year rolling basis and has now introduced the requirement for indexation in intervening years. 2.6 Indexation will now be applied in line with the guiding principles outlined in CIPFA Bulletin 22 issued in November 2025. Indexation is a tool used to apply an inflationary Page 8 of 188
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increase to assets by considering the relative change in value using indices based on a range of factors, for example, normal inflation, local cost pressures and, for some assets, the scarcity of resources for replacing the assets. The purpose of applying indexation to asset values is to ensure the value of an asset is kept materially up to date for movements in variables, e.g. build costs, rental income etc. and is an approximation of market changes, not a valuation of a specific asset. The Code does not specify the use of any particular index, with the choice of index being a matter of judgement to be made in the context of providing a reasonable estimate of the movement in the value of an asset from the prior year. As such the appropriate indices to be used by the Council will be identified by our external valuers. 2.7 Members may recall that the Council previously operated a 5-year rolling programme of revaluations where all assets in the same category were revalued at the same time, with a rolling programme in place to ensure that all assets were revalued over the course of each 5-year period. However, as a consequence of a round table discussion held by Audit Scotland on non-current asset valuations, the publication of a Technical Bulletin (2023/1), which contained some actions in respect of asset valuations, and following discussions with Audit Scotland as part of the audit of the 2022/23 accounts, the Council revised it’s approach to asset valuations in 2023/24, moving to a system of taking an annual 20% sample across all asset categories with every asset being valued at least once every five years. 2.8 As a result of this most recent change in relation to indexation, the Council is reverting back to a rolling 5-year programme of revaluations, with all assets in a class being revalued in the same year. As part of the transition towards this, the 2025/26 valuation programme will also include a number of assets which have not been valued in the last 5 years, together with new properties and those where significant capital expenditure has been incurred. 3. Measures of success 3.1 The Council submits a fully compliant set of Annual Accounts to External Audit. 4. Supporting documentation No Supporting Documents. Greg Telfer Chief Officer (Finance and Technology) Page 9 of 188
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ Page 10 of 188
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 11 of 188
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North Lanarkshire Council Report Audit & Scrutiny Panel Does this report require to be approved? Ref SL/KMcG/TH Date ☐ Yes ☒ No 04/03/26 Housing Performance Update From Stephen Llewellyn, Chief Officer (Housing & Communities) E-mail LlewellynS@northlan.gov.uk Telephone 07939 280680 1. Background 1.1 Panel Members will recall the quarterly performance assurance review report presented to the previous Audit and Scrutiny Panel on 13/11/25, which provided the Executive Summary This report provides a response to the Audit and Scrutiny Panel in respect of their request for an explanation of the variance between (a) the red indicators shown in the housing section of the quarterly performance assurance review report presented to the panel on 13/11/25, and (b) the accompanying narrative for these indicators within the same report. In addition to providing a response to the enquiries raised by the Panel, the report also provides supplementary information to ensure performance is considered within the most up to date context and highlights future improvement actions to support transparency and a full understanding of performance outcomes for the service. Recommendations It is recommended that the Audit and Scrutiny Panel (1) Note the explanation for the difference between the red indicators highlighted on the report, and the narrative provided in respect of these. (2) Note the current position in respect of the indicators where no narrative was provided in the previous report. (3) Note the actions we propose to ensure an explanation of all ‘Red’ indicators is provided in all future reports. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth Programme of Work Statutory / corporate / service requirement Item 3 Page 13 of 188
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Panel with the outcome from the latest quarterly performance assurance review that had been undertaken on performance reports previously submitted to council committees during cycle 3 of 2025. 1.2 The composite report presented to the Audit and Scrutiny Panel included performance information in relation to all services of the council, including the housing service, who have twenty-two indicators in the Strategic Performance Framework covering all aspects of the council’s social landlord role. 1.3 Within the report presented on 13/11/25 there were five red indicators within the housing report, but the narrative associated with this report only provided information on two of the areas covered by these indicators, under the section ‘Areas of performance requiring improvement’. 1.4 At the meeting on 13/11/25 members of the Audit and Scrutiny Panel asked the following question: “Can an explanation on the variance between the red indicators on latest performance reports – housing (Pg 17) and the narrative on Pg 18 be provided,” 1.5 In response to this request the panel were advised that a report would be submitted to the February 2026 meeting of the Audit and Scrutiny Panel to provide a detailed response that supports further scrutiny in line with the established approach for enquiries arising from this quarterly report. 2. Report 2.1 This report provides an explanation for the variance between the red indicators shown in the housing performance report and the accompanying narrative for these indicators within the quarterly performance assurance review report presented to the Audit & Scrutiny Panel on 13/11/25. 2.2 The Housing Service have a statutory obligation to report their annual performance in relation to the indicators set in the Scottish Social Housing Charter, to the Scottish Housing Regulator by 31 May each year, and their performance in relation to Scottish Government set indicators by a date in early June, as set each year by the Scottish Government. 2.3 Year end performance as reported to the Scottish Housing Regulator and the Scottish Government is reported through the Strategic Performance Report presented to Housing Committee in August (cycle 3) each year. The information from his cycle 3 report is included in the consolidated report presented to the Audit and Scrutiny panel. 2.4 Due to the timing of the council’s committee cycles, the Strategic Performance Report’s presented to Committee in August (cycle 3) also provides an overview of the YTD performance for the current reporting year. 2.5 Although the cycle 3 report provides an overview of the YTD performance, the narrative contained within the report intentionally focusses on the year end performance results that have been formally reported in our statutory returns. This approach was taken to ensure members have a full understanding of our externally reported outcomes. Page 14 of 188
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2.6 The report presented to Committee in cycle 3 (and included in the report to the Audit & Scrutiny Panel) had a total of five red Indicators (noted below). Of these indicators two were highlighted red within our year end reporting, and the other three were highlighted red in the summary YTD position. 2.7 As the narrative for this report focussed on the year end performance only the two indicators, noted below, which were red at year end, were highlighted as areas for improvement on the report. • Antisocial behaviour- % cases reported in the last year that were resolved. • Housing Services - % tenants satisfied with the standard of the home when moving in 2.8 Of the other three indicators where no narrative was provided, as noted below, two indicators were green at year end, and the remaining indicator was flagged red as this was unavailable for reporting, due to a new system being implemented and reports being in development. Green at year end • Households (under 25 years old) presenting as homeless - % decisions made within 28 days. • Housing repairs - % of reactive repairs carried out in the last year completed right first time. Unable to report • Housing repairs - % of reactive repairs appointment kept. Current position of Indicators where narrative was not provided 2.9 In respect of the three indicators where narrative was not provided, the current position of these, as presented to Housing Committee on 16 February 2026 is noted below: • Households (under 25 years old) presenting as homeless - % decisions made within 28 days – This indicator is meeting target again and falls within the green category in the most recent performance report, however we have noted that although we are still achieving he average timescale of 22 days to make a decision on a homeless case that the YTD performance has dipped slightly and a service audit is ongoing to determine the reasons for the fall in performance levels. Page 15 of 188
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• Housing repairs - % of reactive repairs carried out in the last year completed right first time – This indicator is meeting target again and falls within the green category in the most recent performance report, however it should be noted that a new report is currently under development to incorporate the changes made to how this indicator is calculated by the Scottish Housing regulator and an update on the position will be available at year end. • Housing repairs - % of reactive repairs appointment kept - We do not currently have the facility to report on the percentage of reactive repairs appointments kept and therefore performance in this area cannot be reported on at this time. 2.10 A note of all performance information presented to the Housing Committee on 16 February 2026 is provided in Appendix 1. 2.11 To support transparency and ensure a full understanding of performance outcomes for the service, in all future reports all red indicators will be accompanied by narrative clearly separating the indicators that were reported red in our statutory returns at year end, and those being reported red in the current YTD updates being provided. 3. Measures of success 3.1 That members will have a comprehensive understanding of both the performance reported in statutory returns and the current YTD position, and are also aware of the actions being taken to address any underperforming areas. 4. Supporting documentation 4.1 The most up to date quarterly performance information for 2025/26, as reported to Housing Committee on 16 February 2026 is noted at Appendix 1. Stephen Llewellyn Chief Officer (Housing & Communities) Page 16 of 188
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ Page 17 of 188
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5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 18 of 188
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Appendix 1 Housing High-level performance overview - as at January 2026 Page 19 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref RB/CC/SL Date 04/03/26 Auditing Best Value in local government - update From Carolynne Coole, Acting Chief Officer (Strategy and Engagement) Rachel Blair, Chief Officer (Legal and Democratic) E-mail CooleMillerC@northlan.gov.uk BlairR@northlan.gov.uk Telephone Executive Summary Members of the Audit and Scrutiny Panel are well versed in the Best Value duty which requires the council to ensure arrangements are in place to secure continuous improvement in delivering the best possible services and outcomes for the public. Since implementation of the duty in 2004, all local authorities in Scotland have been subject to ongoing national and local audit processes to ensure they continue to be able to demonstrate Best Value in practice. A new national approach to auditing Best Value came into effect as part of the external auditor five-year appointments from 2022/23. This approach means that: • Auditing Best Value is integrated within the wider scope of the external auditor’s annual audit work which is reported in their Annual Audit Report (AAR). • Thematic Best Value audit work is also undertaken each year by the external auditor as per the Accounts Commission’s requirements to provide assurance on areas of risk / interest across Scotland as at a defined point in time. While Best Value is about ensuring there is good governance and effective management of resources, it’s also about improving the functions and activities the council undertakes to deliver the best possible outcomes and services that improve the everyday lives of local people. Elected Members therefore have a key role to play to ensure the council continues to demonstrate Best Value in practice and - as members of the Audit and Scrutiny Panel are charged with oversight of the governance of the council - this report aims to help Panel members fulfil that role by providing an update on the national approach to auditing Best Value that will be implemented during 2026/27. Recommendations It is recommended that the Audit and Scrutiny Panel: (1) Are aware of the update to the national approach to auditing Best Value, the priority for the year four thematic Best Value audit work, and the implications for the council in this respect, and (2) Endorse their role (in line with the Scheme of Administration) in terms of ensuring the council continues to secure Best Value in practice in line with the statutory duty. Item 4 Page 23 of 188
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1. Background 1.1 Members of the Audit and Scrutiny Panel will recall an annual report to the Panel in February in recent years providing an outline of the national approach in place to auditing Best Value which came into effect as part of the external auditor appointments for the five-year term from 2022/23. 1.2 This approach means that: • Auditing Best Value is integrated within the wider scope of the external auditor’s annual audit work which is reported in their Annual Audit Report (AAR). This includes risk-based work and follow up audit work on Best Value related recommendations from previous audit reports as well as reflecting on reporting against priorities and the use of the Local Government Benchmarking Framework (LGBF). • Thematic Best Value audit work is undertaken each year by the external auditor as per the Accounts Commission’s requirements to provide assurance on areas of risk / interest across councils as at a defined point in time and enable comparisons across Scotland. This means that the council undergoes an assessment each year of particular aspects of Best Value in order to provide the Accounts Commission with the relevant assurances in terms of performance and the quality of services to the public. As the public spending watchdog for local government in Scotland, the duty of the Accounts Commission is to ensure that public money is spent properly, efficiently, and effectively. • Annual Audit Reports (AARs) for each council are reviewed by the Accounts Commission once over the five-year external audit appointment to provide the Commission with assurance on Best Value in each individual council. This is undertaken in line with the statutory Controller of Audit process which is produced under Section 102 of the Local Government (Scotland) Act 1973. 1.3 Since the current approach was implemented, Elected Members have been able to view the corresponding outcome reports through the Audit and Scrutiny Panel and/or Policy and Strategy Committee: Thematic Best Value audit reports 1. The national thematic Best Value audit work for year one (2022/23) focused on the leadership of the development of new strategic priorities. • The outcome from the North Lanarkshire Council audit in this respect was reported to the Audit and Scrutiny Panel in October 2023 and the Policy and Strategy Committee in December 2023. • The national outcome report (Delivering for the future, why leadership matters) was published by Audit Scotland in July 2024: https://audit.scot/uploads/2024-07/nr_240711_best_value_thematic_leadership.pdf 2. The national thematic Best Value audit work for year two (2023/24) focused on workforce innovation (specifically how the council is responding to current workforce challenges through building capacity, increasing productivity, and The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 24 of 188
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innovation). • The outcome from the North Lanarkshire Council audit in this respect was reported to the Audit and Scrutiny Panel in August 2024 and the Policy and Strategy Committee in September 2024. • The national outcome report (Delivering for the future, responding to the workforce challenge) was published by Audit Scotland in August 2025: https://audit.scot/uploads/2025-07/bv_250807_workforce_thematic.pdf 3. The national thematic Best Value audit work for year three (2024/25) focused on transformation (how councils are redesigning and delivering more efficient services to achieve planned outcomes). • The outcome from the North Lanarkshire Council audit in this respect was reported to the Audit and Scrutiny Panel and the Policy and Strategy Committee in September 2025. • Following the audit of all 32 councils, the national outcome report for this theme is scheduled to be published by Audit Scotland later in 2026. Annual Audit Report (AAR) 4. 2024/25 - link to report to Audit and Scrutiny Panel in September 2025. 5. 2023/24 - link to report to Audit and Scrutiny Panel in October 2024. 6. 2022/23 - link to report to Audit and Scrutiny Panel in October 2023. 1.4 As the national thematic Best Value priority changes each year, this report herewith provides members of the Audit and Scrutiny Panel with an overview of the year four thematic Best Value audit work that will be undertaken during 2026/27. This is based on the information available at the time of writing the report. 2. Best Value audit approach in councils The duty of Best Value 2.1 The requirements for external auditors in all areas of their audit work, including Best Value, are set out in the Code of Audit Practice 2021. This is issued by Audit Scotland to define auditors’ objectives and responsibilities, and it is a condition of each auditors’ appointment that they follow the Code. Supplementary guidance is also provided to assist external auditors in meeting the Best Value requirements of the Code; this promotes a consistent approach to the audit work across all 32 councils. 2.2 Having been in place since 2004, the national Best Value guidance was updated in 2020 to better reflect the environment in which councils deliver services with an increasing emphasis on citizens and personalised services, a focus on outcomes, and the need for innovation in designing public services. The 2020 guidance frames Best Value around seven themes and councils are required to demonstrate a focus on continuous improvement in performance around each of these themes: 1. Vision and leadership. 2. Governance and accountability. 3. Effective use of resources. 4. Partnerships and collaborative working. 5. Working with communities. 6. Sustainability. 7. Fairness and equality. Sustainability, and fairness and equality, continue to be cross-cutting themes integral Page 25 of 188
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to all functions and activities carried out by a council to achieve Best Value and deliver the best possible outcomes for the public. Annual Audit Reports (AARs) 2.3 The approach to auditing Best Value includes a regular review of Annual Audit Reports (AARs) by the Accounts Commission. • Annual Audit Reports (AARs) for each council are reviewed by the Accounts Commission once over the five-year external audit appointment to provide the Commission with assurance on Best Value in each individual council. This is undertaken through the statutory Controller of Audit process which is produced under Section 102 of the Local Government (Scotland) Act 1973. • All 32 councils in Scotland are subject to a Controller of Audit report once over the period from October 2023 to August 2027. • Controller of Audit reports focus on each council’s (a) latest Annual Audit Report (AAR), and (b) thematic audit outcome reports. Controller of Audit reports are produced in accordance with statutory legislation and provide a high-level summary of the information and judgements which have already been considered as part of the council’s long-standing annual audit process and corresponding reporting arrangements that includes Audit and Scrutiny Panel oversight. • The current position regarding all 32 councils’ Controller of Audit reports is as noted in the table below. Year 4 councils for Controller of Audit reports are subject to change should another council’s risk profile change significantly. Controller of Audit reports published to date Year 3 - Controller of Audit reports due to be published October 2025 to August 2026 Year 4 - Controller of Audit reports due to be published October 2026 to August 2027 • South Ayrshire • Dundee City • Dumfries and Galloway • Orkney Islands • Moray • Falkirk • Clackmannanshire • City of Edinburgh • Scottish Borders • East Renfrewshire • Fife • Argyll and Bute • Highland • Renfrewshire • East Lothian • Western Isles • North Ayrshire (published October 2025) • North Lanarkshire (published January 2026) • Aberdeenshire • Shetland Islands • Glasgow City • Stirling • Inverclyde • Angus • Perth and Kinross • Midlothian • South Lanarkshire • West Lothian • West Dunbartonshire • East Ayrshire • Aberdeen City • East Dunbartonshire 2.4 The North Lanarkshire Council report produced by the Controller of Audit was considered by the Accounts Commission on 11th December 2025. Following this meeting, the Accounts Commission and the council are expected to comply with statutory legislative requirements in relation to publication. This includes presentation of the report to the Council meeting on 2nd April 2026. Thematic Best Value audit work to be undertaken during 2026/27 2.5 The thematic Best Value audit work for year four will see a focus on Asset Management - how well councils are managing their assets to achieve their corporate objectives and responding to challenges around financial sustainability and climate change - across all 32 councils in Scotland. In considering this matter, external auditors will focus on the following questions: Page 26 of 188
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a) To what extent does the council have a clear asset management strategy and plans that are affordable, and align with its corporate objectives, new ways of working, the changing needs of its population, and net zero commitments? b) To what extent do the council’s governance and accountability arrangements support effective asset management? c) To what extent does the council have a robust approach to working with partners and communities in managing its assets? It is expected that the audit will cover the corresponding strategies and plans for council assets, including council housing stock. 2.6 In providing added context in respect of the year four thematic audit, the external auditors have reiterated the crucial role of self-evaluation and evidence in ensuring the council can demonstrate best use of resources and support continuous improvement. 2.7 The information presented above in respect of the forthcoming year four thematic Best Value audit work has been considered by the senior management team of the council to ensure appropriate arrangements are in place to support the audit process. Discussions are expected to take place with the external auditors in the spring of 2026 when a more detailed audit specification will be provided to inform the evidence required to fulfil the audit. Next steps 2.8 The Annual Audit Report (AAR) for 2025/26, and outcome report arising from the year four thematic Best Value audit work to be undertaken during 2026, are expected to be reported to the Audit and Scrutiny Panel in the autumn of 2026. 2.9 Details of the national audit work programme each year (including both completed and still to be published work) are contained within the Audit Scotland website: https://audit.scot/what-we-do/our-work-programme. As a dynamic work programme, this information is kept under review and updated every three months to ensure it responds to changing circumstances. 2.10 National developments in terms of the approach to auditing Best Value, as well as key findings arising from other councils’ audits, will continue to be kept under review as the process evolves. 3. Measures of success 3.1 Measures of success include: • Regular oversight and monitoring of performance across the organisation to gain assurances in terms of governance and accountability. • Regular review and challenge processes to scrutinise the performance of the council to ensure effective use of resources and that resources are directed in accordance with agreed policy and according to priorities, while ensuring sound decision making and clear accountability for the use of resources in achieving improved outcomes for service users and the local community. • Performance monitoring, management, and reporting arrangements that support the demonstration of improved performance in local services and outcomes, and the delivery of Best Value. 4. Supporting documentation Page 27 of 188
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4.1 Audit Scotland - Auditing and reporting about Best Value: https://audit.scot/best-value Carolynne Coole Acting Chief Officer (Strategy and Engagement) Rachel Blair Chief Officer (Legal and Democratic) 5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The legal impact in this report is only in relation to supporting demonstration of the council’s compliance with the relevant legislation listed below. It does not introduce new legal duties or changes to the council’s statutory duty in this respect. • The Local Government Act 1992 which established the role of the Statutory Direction to direct councils in terms of the “publication of information as to standards of performance”. Page 28 of 188
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• The Local Government in Scotland Act 2003 which introduced the duty of Best Value; this requires that councils “make arrangements to secure continuous improvement in performance”. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The year four Best Value thematic audit on Asset Management will include consideration of net zero commitments. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Ensuring that members of the Audit and Scrutiny Panel are aware of their role and how this supports the council to demonstrate Best Value contributes to the mitigation of the risk on the Corporate Risk Register for governance, leadership, and decision making. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Page 29 of 188
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Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 30 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref RB/CC/SL Date 04/03/26 Scrutiny Work Programme - annual update From Carolynne Coole, Acting Chief Officer (Strategy and Engagement) Rachel Blair, Chief Officer (Legal and Democratic) E-mail CooleMillerC@northlan.gov.uk BlairR@northlan.gov.uk Telephone Executive Summary This report provides an annual update in relation to the Work Programme for the Scrutiny function of the Audit and Scrutiny Panel. Appendix 3 updates on items previously reported to the Panel as well as those scheduled on the Work Programme for the year ahead. Now well established, the Work Programme plays a key role in supporting effective scrutiny and oversight across a range of performance and governance activities. It comprises (1) items, functions, or activities requiring scrutiny identified and submitted by Panel Members and considered through the Assessment and Prioritisation Process, and (2) the presentation of information and reports aligned to the long-term vision set out in The Plan for North Lanarkshire and its supporting strategic frameworks. This approach aims to ensure the council fulfils both (a) its statutory Best Value duty (with scrutiny structures that support Elected Members in reviewing and challenging performance), and (b) the principles of good corporate governance (as set out in the CIPFA Delivering Good Governance in Local Government: Framework (2016)). It also aims to ensure all scrutiny activity remains framed within the context of The Plan for North Lanarkshire and is focused on improving local public services and outcomes. Recommendations It is recommended that the Audit and Scrutiny Panel: (1) Are aware of the annual update to the composite Scrutiny Work Programme and reporting schedule for the scrutiny function of the Audit and Scrutiny Panel, as set out in Appendix 3, (2) Continue to endorse the role of Panel Members in identifying potential issues for inclusion in the Scrutiny Work Programme in line with the Assessment and Prioritisation Process (in Appendix 2) and the overall approach (in Appendix 1), and (3) Continue to carry out their scrutiny role in reviewing and challenging performance to ensure the council fulfils its statutory Best Value duty. The Plan for North Lanarkshire Priority All priorities Item 5 Page 31 of 188
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1. Background 1.1 The Panel’s approach to scrutiny is twofold: (1) Items, functions, or activities requiring scrutiny identified and submitted by Panel Members (in line with the Assessment and Prioritisation Process approved by the Panel in August 2018 and subsequently updated in September 2022). (2) Presentation of information and reports aligned to the long-term vision set out in The Plan for North Lanarkshire and its supporting strategic frameworks (as per the annual position statement report to the Panel in cycle 4 each year). 1.2 This approach supports the Audit and Scrutiny Panel to fulfil its Scheme of Administration remit to provide an “independent review of the council's governance, risk management, performance, and control frameworks, and oversee the financial reporting and annual governance processes.” This also supports compliance with the CIPFA Delivering Good Governance in Local Government: Framework (2016). 1.3 It also contributes to discharging the scrutiny function in line with the Panel’s specific responsibilities in the Scheme of Administration to: • Review and monitor the performance of the council in delivering upon its priorities, outcomes, programme of work, and targets in the council plan; specifically, performance in improving local public services and local outcomes and in demonstrating Best Value. • Review performance to assess whether intended policy outcomes have been achieved. • Consider the council's performance, improvement, and governance arrangements to ensure that approaches continue to facilitate effective and efficient delivery of planned services and outcomes and the council’s vision. 1.4 Since the Scrutiny Work Programme was initially approved in February 2023 various items have been scrutinised, and Panel Members have submitted requests for other specific items, functions, or activities to be considered for inclusion in the Programme (in line with the approved Assessment and Prioritisation Process). As such, various areas of service have been added to the programme to date and undergone scrutiny by the Panel - these are listed in Appendix 3. 1.5 The Panel has also supported the governance role of the council through year end scrutiny reviews of the Strategic Governance Framework and its supporting review programme and the Annual Governance Statement, as well as being the first point of reporting in the council in relation to announcements about each year’s forthcoming national Best Value audit theme. 1.6 A quarterly performance assurance review report has also informed the Scrutiny Work Programme and supports the Panel in maintaining strategic oversight and awareness of the council’s performance by summarising each cycle’s performance reports (i.e. Chief Officers performance review reports at service committees and service specific reporting to meet business and/or statutory obligations). In doing so this report brings together a summary of the council’s performance reports in one composite assurance overview. 1.7 With the Scrutiny Work Programme and programme of reports and process by which Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 32 of 188
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to identify scrutiny items now well established, this report provides an update in respect of the Scrutiny Work Programme for 2026 to 2027. 2. Scrutiny Work Programme Approach to Scrutiny led by Members of the Panel 2.1 The Work Programme for the Scrutiny function of the Audit and Scrutiny Panel is founded on items submitted for consideration being evidence based. This is essential in order to ensure a fully informed assessment and prioritisation process. 2.2 As such, a set of principles were agreed in 2018 which are used to assess and prioritise items to be included in the Scrutiny Work Programme. To ensure scrutiny continues to support delivery of the Programme of Work and The Plan for North Lanarkshire, and focuses on improving local public services and outcomes, these were further reviewed in September 2022. The current set of principles are listed below: 1. Is the issue an area of concern for a wide range of service users, communities, or stakeholders that has been identified by numerous sources and is supported by a substantial bank of evidence? 2. Is the issue strategically significant, i.e. would improvement in this area have a positive impact on the delivery of one or more of the five priorities in The Plan for North Lanarkshire. The five priorities aim to: • Improve economic opportunities and outcomes. • Support all children and young people to realise their full potential. • Improve the health and wellbeing of communities. • Enhance participation, capacity, and empowerment across communities. • Improve North Lanarkshire’s resource base. 3. Can scrutiny add value? Is performance, service delivery, or quality likely to improve as a result of scrutiny? 4. Will scrutiny of the issue support improved delivery of the Programme of Work or improved delivery of any of the supporting strategies, policies, or plans in the Strategic Policy Framework? 5. Does the issue pose a significant risk to the council? 6. Has the issue already undergone scrutiny, or review activity, within a recent timeframe? 7. Will scrutiny be duplicating other review work already underway, or planned, across the council? If so, does the scrutiny process align to the scope of the other review work and will it be able to support the identification of mutually beneficial recommendations for improvement? 8. Is the proposed scrutiny activity timely and can the scrutiny activity be completed within a reasonable timeframe? 2.3 The Assessment and Prioritisation Process - informed by the principles set out in paragraph 2.2 above - is set out in Appendix 2. This process is applied when assessing and prioritising each proposed area of activity or issue put forward by Panel Members. It allows for the relative merits of each issue brought forward by Panel Members to be assessed objectively, thus making the approach to determining whether an issue is appropriate for inclusion in the Scrutiny Work Programme clear and transparent. It also allows for issues to be prioritised if there were potentially competing matters presented for scrutiny. For completeness in terms of the overall approach to scrutiny led by Members of the Panel, the arrangements in place that sit alongside the Assessment and Prioritisation Process are outlined in Appendix 1 (as initially reported to the Panel in September 2023). Page 33 of 188
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2.4 For added context a wide range of information already exists to complement the scrutiny process, this includes: • Performance indicators from the Strategic Performance Framework. • Information on the volume, nature, and outcome of complaints. • Benchmarking results and comparisons (where available), as per the approach reiterated through the annual position statement reported to the Panel in November 2025 and the national dashboard launched by the Improvement Service: https://www.improvementservice.org.uk/benchmarking/explore-the-data. • Demographics and future projections, e.g. for population or households. • Policies in place, or under development, in line with the Strategic Policy Framework review programme. • Improvements identified, to be implemented, or completed following self- evaluation exercises undertaken in line with the Strategic Self-Evaluation Framework review programme. • Elements or mechanisms from the Strategic Governance Framework review programme. Type of scrutiny review 2.5 Appendix 3 includes the specific areas of scrutiny identified by Panel Members as requiring to undergo a spotlight review. To ensure the most effective approach to scrutiny, reviews can take one of three formats once they have passed muster through the Assessment and Prioritisation Process: • Spotlight - short, sharp, focused scrutiny activity which could form one agenda item for a Panel meeting. • In-depth - which can be undertaken by all Panel Members or, if required, a smaller subgroup. This would require a clear scope to be developed along with a timetable for the work to be undertaken. The work of any subgroup would require a report, with recommendations, to be submitted back to the full Audit and Scrutiny Panel for consideration and approval. • Focus - presentation to Panel Members to share information and raise awareness or increase knowledge of a particularly complex area of activity or issue. Composite Scrutiny Work Programme with schedule of reports to future Panel meetings 2.6 While the information set out above supports (a) the items, functions, or activities requiring scrutiny identified and submitted by Panel Members, it also forms the basis for (b) the presentation of information and reports aligned to long-term vision set out in The Plan for North Lanarkshire and its supporting strategic frameworks. As such, both areas are captured in the schedule in Appendix 3. Next steps 2.7 The composite Scrutiny Work Programme in Appendix 3 will be kept up to date and an update provided to the Panel in cycle 1 each year. Any new items, functions, or activities requiring scrutiny will be added to the programme as they are identified, scoped (where additional information is needed to help understand the matter being put forward), and then reviewed through the Assessment and Prioritisation Process. 3. Measures of success 3.1 The key measure of success is that the Audit and Scrutiny Panel continues to Page 34 of 188
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discharge its scrutiny duty and that areas identified for improvement have a positive impact on the council’s ability to deliver the long-term vision and improve local services and outcomes, in line with The Plan for North Lanarkshire. The Scrutiny Work Programme in Appendix 3, and this annual update report, support the provision of a log of scrutiny related requests and recommendations that facilitate ongoing monitoring, management, and continuous improvement. 4. Supporting documentation 4.1 Appendix 1 - Approach to Scrutiny led by Members of the Panel. Appendix 2 - Assessment and Prioritisation Process. Appendix 3 - Composite Scrutiny Work Programme with schedule of reports to Panel meetings - 2026 to 2027 (as at January 2026). Carolynne Coole Acting Chief Officer (Strategy and Engagement) Rachel Blair Chief Officer (Legal and Democratic) 5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Page 35 of 188
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Yes ☒ No ☐ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The legal impact in this report is only in relation to supporting demonstration of the council’s compliance with the relevant legislation listed below. It does not introduce new legal duties or changes to the council’s statutory duty in this respect. • The Local Government Act 1992 which established the role of the Statutory Direction to direct councils in terms of the “publication of information as to standards of performance”. • The Local Government in Scotland Act 2003 which introduced the duty of Best Value; this requires that councils “make arrangements to secure continuous improvement in performance”. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The Scrutiny Work Programme supports an efficient approach to the scrutiny of performance by the Audit and Scrutiny Panel (in line with their terms of reference Page 36 of 188
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as per the Scheme of Administration) and contributes to the mitigation of the risk on the Corporate Risk Register for governance, leadership, and decision making. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 37 of 188
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Panel Member led Scrutiny Panel Scrutiny Activity Assessment and Prioritisation Process (see Appendix 2) • Elected Members on the Audit and Scrutiny Panel can liaise with council Officers when developing their potential items for scrutiny. • Once fully developed, Panel Members should submit their potential items for scrutiny to the Convener who will then liaise with council officers regarding the next steps. In advance of the Assessment and Prioritisation Process Panel Members to identify potential items for scrutiny by: • Identifying the context. • Presenting the evidence. • Reviewing the latest performance. • Carrying out site visits (if required). • Preparing a list of potential questions to be addressed. • Identifying the type of scrutiny required (i.e. spotlight, in-depth, focus). • The Convener carries out the Assessment and Prioritisation Process in conjunction with council officers. • At this point, further engagement may take place with the Panel Member raising the item for scrutiny in order to further scope out specifically what requires to be scrutinised. • Once a potential item for scrutiny has passed muster through the Assessment and Prioritisation process, it will be added to the Scrutiny Work Programme in line with the agenda capacity for each meeting and the context around the issue to be scrutinised. • Elected Members at Panel meetings. During Panel meetings • Panel Members carry out the challenge and scrutiny role. • Agree recommendations. • Monitor the annual Scrutiny Work Programme. • Agree follow ups required based on either (a) supplementary information to provide further details / clarity for an item currently undergoing scrutiny, or (b) a supplementary report required to address any significant matters of concern not covered in the initial report. • Scrutiny Work Programme updated and follow ups actioned by council Officers in conjunction with the Convener and respective Chief Officer. After Panel meetings • Update Scrutiny Work Programme. • Action follow ups actioned by either (a) obtaining the supplementary information from the relevant Chief Officer to provide further details / clarity for an item which has undergone scrutiny, or (b) requesting a supplementary report from the respective Chief Officer in order to address any significant matters of concern not covered in the initial report. What Who Scrutiny does: Add value to what the organisation ultimately aims to achieve in terms of: • Improving the performance of local services. • Improving the performance of outcomes for local people. • Demonstrating the council is achieving Best Value. • Supporting delivery of The Plan for North Lanarkshire. • Improving performance by assessing whether intended policy outcomes have been achieved. • Having a clear purpose. Scrutiny does not: • Deal with matters that are still subject to legal or court proceedings. • Deal with matters which have already been determined through a legal process. • Involve political considerations. • Deal with matters already determined through a regulatory process (e.g. planning, licensing), or for which an appeals process already exists. • Duplicate the work of the council’s Service Committees. • Revisit decisions already made by another of the council’s Committees. • Involve minor matters or matters involving individuals. • Consider live matters that are already subject to review within the council or by an external body. Scrutiny provides: • An opportunity for an objective focus on matters of performance or policy that have a significant impact on service delivery. • An opportunity to challenge matters of performance or policy and do a deep dive into the facts in order to drive forward better performance. Audit and Scrutiny Panel Approach to Scrutiny led by Members of the Panel Assessment and Prioritisation Process Appendix 1 Page 38 of 188
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Appendix 2 Assessment and Prioritisation Process Page 39 of 188
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Appendix 3 Scrutiny Work Programme with timetable of reports to future Panel meetings - 2026 to 2027 The following programme (as at January 2026) will be updated as new items requiring scrutiny are identified, scoped (where required), assessed, and prioritised and pass muster in line with the Assessment and Prioritisation Process. Scrutiny items, functions, or activities for Audit and Scrutiny Panel meetings Scrutiny of this item, function, or activity aims to … Update as at January 2026 (with link to latest / most recent reports) Cycle 1 4th Mar 2026 Cycle 2 14th May 2026 Cycle 3 20th Aug 2026 Cycle 4 12th Nov 2026 Cycle 1 18th Feb 2027 Items, functions, or activities requiring scrutiny identified and submitted by Panel Members and considered through the Assessment and Prioritisation Process. Items identified by Members of the Audit and Scrutiny Panel and/or arising during Panel meetings (and subsequently approved through the Assessment and Prioritisation Process) Scheduled At the meeting in November 2025 when the quarterly performance assurance review report was considered, the Panel requested a scrutiny review in relation to housing performance (specifically in relation to the variance between certain indicators with a Red RAG status and customer satisfaction narrative). Carry out a spotlight scrutiny review. • Report on agenda for Panel meeting on 04/03/26. ✓ At the meeting in November 2025 when the annual complaints performance report was considered, the Panel requested a deeper dive into reasons for the increase in the volume of complaints not upheld. Carry out a spotlight scrutiny review. • Report on scrutiny schedule for cycle 3 in advance of the annual report in cycle 4. ✓ As per the report to the Panel in February 2025, the scrutiny work programme includes a follow up report on a recommendation from the external auditors Annual Audit Report (AAR) to provide assurances in respect of the corporate Business Continuity Plan and ICT Disaster Recovery arrangements. Demonstrate Best Value in relation to ensuring the local authority has a responsible attitude to managing risk, and business continuity plans (including civil contingencies and emergency plans) are in place to allow an effective and appropriate response to planned and unplanned events and circumstances. • Report on scrutiny schedule for cycle 4 in line with the agreed management action timing for the response to the audit recommendation. ✓ The presentation of information and reports aligned to the long-term vision set out in The Plan for North Lanarkshire and its supporting strategic frameworks. Scrutiny Work Programme / annual report of the Scrutiny work of the Panel Annual update of the composite scrutiny programme with schedule of reports to future Panel meetings. Support the Best Value governance and accountability theme by ensuring the council’s scrutiny structures support Elected Members in reviewing and challenging performance. By setting out the programme of scrutiny each year, this report also demonstrates that the Panel continues to effectively discharge its duties and add value to the organisation in line with the Best Value duty, the requirements of the Chartered Institute of Public Finance and Accountancy (CIPFA) Position Statement and Practical Guidance for Audit Committees in Local Authorities (2022), and the CIPFA Demonstrating Good Governance in Local Government: Framework (2016). • Report on agenda for Panel meeting on 04/03/26. • Summary of scrutiny work undertaken by the Panel during each year is also incorporated into the Annual Governance Statement each year, the latest was for 2024/25: link to report. ✓ ✓ Strategic Performance Framework Annual update on Strategic Performance Framework Performance Reporting Schedule. Support the Best Value governance and accountability theme by ensuring the council can demonstrate the existence of robust arrangements for scrutiny and performance reporting. Fulfil the Panel’s remit as per the Scheme of Administration to: • Review and monitor the performance of the council in delivering upon its priorities, outcomes, programme of work, and targets in the council plan, specifically performance in improving local services and outcomes and in demonstrating Best Value. • Review performance to assess whether intended policy outcomes have been achieved. • Consider the council's performance, improvement, and governance arrangements to ensure that approaches continue to facilitate effective and efficient delivery of planned services and outcomes and the council’s vision. • Report at Panel meeting on 28/08/25: link to report. • This included information in respect of the newly published three year Accounts Commission Statutory Direction in terms of the “publication of information as to standards of performance”, for 2025/26 to 2027/28. ✓ Summary overviews of performance achieved against the measures in the Strategic Performance Framework in terms of improving local outcomes and services. This includes Chief Officer’s individual Performance Reviews at Service Committees in line with the Strategic • Report on agenda for Panel meeting on 04/03/26. • Most recent quarterly performance assurance review report at Panel meeting on 13/11/25: link to report. ✓ ✓ ✓ ✓ ✓ Page 40 of 188
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Scrutiny items, functions, or activities for Audit and Scrutiny Panel meetings Scrutiny of this item, function, or activity aims to … Update as at January 2026 (with link to latest / most recent reports) Cycle 1 4th Mar 2026 Cycle 2 14th May 2026 Cycle 3 20th Aug 2026 Cycle 4 12th Nov 2026 Cycle 1 18th Feb 2027 Performance Framework (incorporating benchmarking results, where available) and Chief Officer service specific performance reporting which takes place each year to meet business and/or statutory obligations. Strategic Government Framework Annual review and refresh of the Framework and an update to the review programme. Fulfil the Panel’s remit as per the Scheme of Administration to: • Consider the council's performance, improvement, and governance arrangements to ensure that approaches continue to facilitate effective and efficient delivery of planned services and outcomes and the council's vision. Ensure good governance principles are in place to enable the council to effectively pursue the ambition set out in The Plan for North Lanarkshire within appropriate controls and the management of risk. This is also central to ensuring effective scrutiny and delivery of statutory Best Value obligations. This means ensuring resources are directed in line with agreed policies, priorities, and project management procedures, and there is sound and inclusive decision making and clear accountability for the use of those resources in achieving improved outcomes for service users and communities. Note; this is part of the year end suite of governance documents that accompanies the Panel’s consideration of the Unaudited Annual Accounts, it is therefore scheduled to be presented to the Panel at the same time, usually at a special meeting in June each year. • Report at Panel meeting on 26/06/25: link to report. ✓ Annual Governance Statement Consider and note the Annual Governance Statement each year, and confirm the inclusion of the assurance statement regarding the management of the risk of fraud and corruption. The Annual Governance Statement will continue to include information on the implementation of items in the Strategic Self- Evaluation review programme and the improvements derived through this process. Fulfil the Panel’s remit as per the Scheme of Administration to: • Consider the council's performance, improvement, and governance arrangements to ensure that approaches continue to facilitate effective and efficient delivery of planned services and outcomes and the council's vision. • Review the Annual Governance Statement prior to approval and consider whether it properly reflects the risk environment and supporting assurances, taking into account Internal Audit’s opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and control. Fulfil the requirements of the Delivering Good Governance in Local Government: Framework (2016) and the Local Authority Accounts (Scotland) Regulations 2014 by ensuring that: • The council conducts a review at least once in each financial year of the effectiveness of its system of internal control. • The findings from the review are considered at a meeting of a committee whose remit includes audit or governance functions. Note; this is part of the year end suite of governance documents that accompanies the Panel’s consideration of the Unaudited Annual Accounts, it is therefore scheduled to be presented to the Panel at the same time, usually at a special meeting in June each year. • Report at Panel meeting on 26/06/25: link to report. ✓ Complaints handling performance Annual report on the council’s performance in handling complaints. Report on the council’s performance in handling complaints in line with the Local Authority Model Complaints Handling Procedure. The Scottish Public Services Ombudsman Act 2002 provides the legislative basis for the Scottish Public Services Ombudsman (SPSO) to publish Model Complaints Handling Procedures for bodies under its jurisdiction. Since it was implemented in 2013, the council has implemented the Local Authority Model Complaints Handling Procedure. Report on the council’s performance in handling complaints in order to fulfil the requirements of good governance, i.e. in particular principle A1.4 in the Delivering Good Governance in Local Government: Framework (2016) in terms of behaving with integrity and “demonstrating, communicating, and embedding the standard operating principles or values through appropriate policies and processes which are reviewed on a regular basis to ensure that they are operating • Report at Panel meeting on 13/11/25: link to report. ✓ Page 41 of 188
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Scrutiny items, functions, or activities for Audit and Scrutiny Panel meetings Scrutiny of this item, function, or activity aims to … Update as at January 2026 (with link to latest / most recent reports) Cycle 1 4th Mar 2026 Cycle 2 14th May 2026 Cycle 3 20th Aug 2026 Cycle 4 12th Nov 2026 Cycle 1 18th Feb 2027 effectively”. Annual position statement on the six strategic frameworks Annual report to demonstrate Best Value in good governance and effective use of resources that leads to improving the functions and activities the council undertakes to deliver the best possible outcomes and services that improve the everyday lives of local people. With the Strategic Self-Evaluation Framework aligned to the national Best Value guidance it is now well established and unlikely to change much from year to year moving forward, the annual position statement report will continue to incorporate a regular update on any significant changes to this Framework as well as implementation of its review programme to avoid a separate report to the Panel each year. Similarly, as the Strategic Policy Framework is aligned to The Plan for North Lanarkshire and Programme of Work it is well established and regularly reviewed. The annual position statement report to the Panel will continue to incorporate a regular update on any significant changes to this Framework as well as implementation of its review programme. Support the Best Value governance and accountability theme by ensuring the council can demonstrate the existence of robust arrangements for scrutiny and performance reporting. Fulfil the Panel’s purpose as per the Scheme of Administration to provide “independent review of the council’s governance, risk management, performance and control frameworks”. Ensure good governance principles are in place to enable the council to effectively pursue the ambition set out in The Plan for North Lanarkshire within appropriate controls and the management of risk. This is also central to ensuring effective scrutiny and delivery of statutory Best Value obligations. This means ensuring resources are directed in line with agreed policies, priorities, and project management procedures, and there is sound and inclusive decision making and clear accountability for the use of those resources in achieving improved outcomes for service users and communities. • Report at Panel meeting on 13/11/25: link to report. ✓ Project Management Framework independent strategic oversight and assurance Elected Member annual oversight report in terms of the quality assurance process and rolling review programme for the Project Management Framework. Fulfil good practice in project management which recommends that a council's audit and scrutiny committee have an important role to play in providing independent assurances about the delivery of major programmes and projects. The Panel’s role in this respect is therefore to be assured that suitable review procedures have been adopted, and the independent reviews undertaken during the project life cycle are adding value. • Report on agenda for Panel meeting on 04/03/26. • Report at for Panel meeting on 24/02/25: link to report. ✓ ✓ Completed items Included for reference and completeness Scrutiny items, functions, or activities for Audit and Scrutiny Panel meetings Scrutiny of this item, function, or activity aims to … Update as at January 2026 Items, functions, or activities requiring scrutiny identified and submitted by Panel Members and considered through the Assessment and Prioritisation Process. Items identified by Members of the Audit and Scrutiny Panel and/or arising during Panel meetings (and subsequently approved through the Assessment and Prioritisation Process) Completed Supported businesses. Carry out a spotlight scrutiny review. • Report at Panel meeting on 18/05/23. Supplementary information requested during the Panel meeting and circulated by Chief Officer afterwards. Item complete. Laundries in towers. Carry out a spotlight scrutiny review. • Report at Panel meeting on 18/05/23. Item complete. Housing refurbishments. Carry out a spotlight scrutiny review. • Report at Panel meeting on 04/09/23. Item complete. Compulsory purchase orders. Carry out a spotlight scrutiny review. • Report at Panel meeting on 04/09/23. Item complete. In-depth review of digital Broadband. Carry out a spotlight scrutiny review. • Report at Panel meeting on 09/05/24. Item complete. Corporate insurance provision. Carry out a spotlight scrutiny review. • Report at Panel meeting on 09/05/24. Item complete. Scottish Housing Quality Standard (SHQS) and Energy Efficiency Standard for Social Housing (EESSH). Carry out a spotlight scrutiny review. • Report at Panel meeting on 09/05/24. Item complete. Community Boards. Carry out a spotlight scrutiny review. • Report at Panel meeting on 09/05/24. Item complete. School IT assets - age and maintenance. Carry out a spotlight scrutiny review. • Report at Panel meeting on 22/10/24. Item complete. Page 42 of 188
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Scrutiny items, functions, or activities for Audit and Scrutiny Panel meetings Scrutiny of this item, function, or activity aims to … Update as at January 2026 Payroll controls and software - this followed a Panel request at the meeting in February 2024 where it was recorded that the response to the Internal Audit report in this respect be incorporated into the scrutiny work programme. Carry out a spotlight scrutiny review. • Report at Panel meeting on 22/10/24. Scrutiny item complete. To address the Internal Audit recommendation from 2021 that the Audit and Scrutiny Panel should, in line with good practice, periodically undertake a self-evaluation of how effectively it is discharging its role. Self-evaluation of the Audit and Scrutiny Panel Self-evaluation outcome report in terms of the effectiveness of the Audit and Scrutiny Panel in discharging the scrutiny aspects of its role. Elected Member training is available as required and includes all relevant aspects of Scrutiny, covering (a) the role of Scrutiny in terms of ensuring the council can demonstrate Best Value through the existence of robust arrangements for performance reporting and scrutiny, and (b) the approach to scrutiny led by members of the Panel and the supporting Assessment and Prioritisation Process. This includes the supporting strategic frameworks (i.e. Policy, Governance, Performance, Self-Evaluation, and Project Management) in terms of their relevance to each Member’s role on the Panel. Fulfil corporate governance principle E2.4 in line with the Delivering Good Governance in Local Government: Framework (2016) in terms of developing capabilities to ensure Elected Members have the appropriate skills, knowledge, resources, and support to fulfil their roles and responsibilities and ensure they are able to update their knowledge on a continuing basis. Address the risk identified by Internal Audit following an audit review in 2021 in terms of the council being able to adequately demonstrate that it has effective audit committee arrangements and/or arrangements to ensure Elected Members have the skills, knowledge and (where appropriate or required) access to relevant training and resources to effectively undertake their role. • Outcome of the 2025 self-evaluation exercise was reported to the Audit and Scrutiny Panel meeting on 28/08/25 (link to report), with the Panel being given the opportunity to identify any further developments and next steps actions required to inform the improvement plan. No further actions were identified. • Future arrangements to ensure the Panel continues to demonstrate that it effectively discharges its role will be considered in line with the council wide review underway in respect of the council’s democratic, committee, and decision-making governance procedures for which a phased review approach was approved by Policy and Strategy Committee in September 2025. Page 43 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☒ Yes ☐ No Ref RB/CC/SL Date 04/03/26 Performance reporting schedule - quarterly performance assurance review From Carolynne Coole, Acting Chief Officer (Strategy and Engagement) Rachel Blair, Chief Officer (Legal and Democratic) E-mail CooleMillerC@northlan.gov.uk BlairR@northlan.gov.uk Telephone Executive Summary The purpose of this report is to bring together a summary of the council’s performance reports in one composite assurance overview to support the Audit and Scrutiny Panel in maintaining strategic oversight and awareness of the council’s performance reporting arrangements in line with the Panel’s remit to provide “independent review of the council’s governance, risk management, performance, and control frameworks”. It also supports the Audit and Scrutiny Panel’s governance and accountability role in terms of ensuring the council can demonstrate Best Value through the existence of robust arrangements for performance reporting and scrutiny. This process monitors reports which have been submitted to council committees (in line with the Strategic Performance Framework - Performance Reporting Schedule) during the previous cycle. This process began in 2023 with implementation of a quarterly performance assurance review report thereafter. This report herewith provides the Panel with the outcome from the latest quarterly performance assurance review that has been undertaken on performance reports previously submitted to council committees during cycle 4 of 2025 (in line with the most recent Performance Reporting Schedule which was at the Panel in August 2025). Recommendations It is recommended that the Audit and Scrutiny Panel: (1) Review the composite overview of performance reporting provided in Appendices 1 and 2 to maintain an awareness of each report within the latest Performance Reporting Schedule, and (2) Identify whether there are any significant issues arising, from the composite performance overview presented in the attached Appendices, that the Panel considers requires additional scrutiny and a further report to be submitted from the respective Chief Officer to a future meeting of the Panel (following review through the Scrutiny Assessment and Prioritisation Process). The Plan for North Lanarkshire Item 6 Page 45 of 188
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1. Background 1.1 The quarterly performance assurance review report is now well established at the Audit and Scrutiny Panel, having been in place since May 2023. It aligns to the Performance Reporting Schedule considered by the Panel each year which sets out the reporting, review, and scrutiny arrangements for a range of performance information to be considered at each cycle of committee meetings in support of the Strategic Performance Framework. 1.2 The Strategic Performance Framework comprises performance measurement at three levels. This aims to collectively provide an overview of performance to help understand the impact of council activities on improving services and outcomes for the people and communities of North Lanarkshire. The measures in this Framework allow for day-to- day activities, and progress towards achieving the long-term vision set out in The Plan for North Lanarkshire, to be regularly monitored, reported, assessed, and scrutinised. 1.3 The supporting Performance Reporting Schedule forms a key part of the Scrutiny Work Programme that underpins the Best Value governance and accountability theme by ensuring the council can demonstrate the existence of robust arrangements for scrutiny and performance reporting. It also aims to fulfil the Audit and Scrutiny Panel’s remit as per the Scheme of Administration to: • Review and monitor the performance of the council in delivering upon its priorities, outcomes, programme of work and targets in the council plan, specifically performance in improving local services and outcomes and in demonstrating Best Value. • Review performance to assess whether intended policy outcomes have been achieved. 1.4 The Strategic Performance Framework comprises a set of non-negotiable standards which Chief Officers are required to apply in all performance reporting that supports the Framework. These standards aim to ensure that performance reporting is: • Aligned - to The Plan for North Lanarkshire to give stakeholders an insight into the performance of council activities both in the short-term and against the long-term ambitions. • Consistent - to ensure a standard, easily recognisable, and well-established process across each different audience over time. This aims to help build credibility, reliability, and a common understanding. • Transparent - to allow stakeholders to understand what is being measured, what it means, what level of performance has actually been achieved, and what difference this means in reality for the people and communities of North Lanarkshire. • In context - to avoid the So What? question and provide a coherent narrative to ensure fully informed review, reporting, scrutiny, and decision-making processes. • Balanced - to ensure reporting contains areas in which performance has improved as well as areas where performance has not improvement or has declined. Any supporting narrative in this respect must add value and tell a balanced narrative. The narrative should include reasons for performance levels not in line with targets, standards, or original plans and the remedial action undertaken to address this. Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 46 of 188
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1.5 The Performance Reporting Schedule shows there is a significant volume of performance information timetabled to be reported to various council committees throughout the year. Cycle 4 2025 reports were reviewed by the Business Management Team in January 2026 to secure the relevant assurances - in line with the Best Value duty - that performance management arrangements promote effective use of council resources and are scrutinised at a senior management level, and that performance monitoring effectively addresses areas of underperformance by identifying the scope for improvement and agreeing the remedial action required. 1.6 The volume of performance information in the latest cycle has been reviewed and summarised in Appendices 1 and 2 attached. It should be noted that the performance information within Appendices 1 and 2 has already been reviewed by Service Committees during cycle 4 of 2025. The purpose of the information presented herewith is therefore to provide Audit and Scrutiny Panel members with a composite, but easily digestible, overview for governance and assurance purposes in line with the specific scrutiny and strategic oversight role of the Panel. 1.7 Should the Panel consider there are any significant issues arising from the composite performance overview which require additional scrutiny, these matters will be reviewed through the Scrutiny Assessment and Prioritisation Process (updated and approved by the Panel in September 2022 and further endorsed in September 2023), prior to being added to the Scrutiny Work Programme for a further report to be submitted from the respective Chief Officer to a future meeting of the Panel. 2. Quarterly performance assurance review 2.1 The Strategic Performance Framework - Performance Reporting Schedule sets out several aspects of performance reporting. As part of this, paragraphs 2.2 to 2.6 itemise the performance reports submitted to cycle 4 2025 committees in accordance with the timetable set out in the Schedule. (1) Chief Officer’s individual Performance Review reports at Service Committees in line with the Strategic Performance Framework. (2) Chief Officer service specific performance reporting which takes place each year to meet business and/or statutory obligations. (1) Chief Officer’s individual Performance Review reports at Service Committees in line with the Strategic Performance Framework. 2.2 The Strategic Performance Framework comprises a range of performance indicators from each Chief Officer’s portfolio and the latest results in this respect are aligned to the respective ambition statements in The Plan for North Lanarkshire. The three reports previously submitted to the relevant committee in cycle 4 of 2025 are listed in Table 1 below, along with the corresponding hyperlink for ease of access. Table 1 Report title Committee Date Latest performance results - Assets and Procurement link to report Finance and Resources Committee 19 November 2025 Latest performance results - Finance link to report Finance and Resources Committee 19 November 2025 Adult social care performance - Quarter 1 (April to Adult Care and 11 November Page 47 of 188
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June 2025) link to report Social Work Committee 2025 2.3 Each council report was produced in line with a standard template and (a) provides the reader with the current context within which the service is operating, (b) highlights areas of good performance that can be evidenced in the accompanying data, and (c) provides a summary of areas of performance requiring improvement along with narrative that gives an explanation for the level of performance achieved and summarises the remedial action implemented (or to be implemented) to bring performance back on track. 2.4 A short summary analysis for each of the reports is set out in Appendix 1 against the five non-negotiable standards. (2) Chief Officer service specific performance reporting which takes place each year to meet business and/or statutory obligations. 2.5 This aspect relates to service specific reporting which is required to meet business and/or statutory obligations. This is included in the Performance Reporting Schedule to ensure all the council’s performance reporting arrangements are captured in the one place and the Schedule reflects a one council approach to performance reporting. 2.6 The 12 reports previously submitted to the relevant committee in cycle 4 of 2025 are listed in Table 2 below, along with the corresponding hyperlink for ease of access. A short summary for each of these reports is set out in Appendix 2. While this summary is set out against the five non-negotiable standards it recognises there may also be statutory specific approaches or standards which require to be adhered to. Table 2 Report title Committee Date Scottish Housing Regulator - landlord report 2024/25 link to file Housing Committee 5 November 2025 Homelessness - annual progress update 2024/25 link to file Housing Committee 5 November 2025 Housing - annual performance report 2024/25 link to website Published on council’s website 27 October 2025 Annual report of the Chief Social Work Officer - 2024/25 link to file Education, Children, and Families Committee 18 November 2025 Educational psychology standards and quality - highlights 2024/25 link to file Education, Children, and Families Committee 18 November 2025 Community learning and development - annual performance and activity report 2024/25 link to file Education, Children, and Families Committee 18 November 2025 Freedom of Information (FOI) and Environmental Information Requests (EIR) - annual report 2024/25 link to file Finance and Resources Committee 19 November 2025 Local child poverty action report 2024/25 link to file Wellbeing and Tackling Poverty Committee 21 October 2025 Performance in complaints handling Audit and Scrutiny 13 November Page 48 of 188
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Report title Committee Date link to file Panel 2025 Revenue and benefits update link to file Finance and Resources Committee 19 November 2025 Financial monitoring report - council summary (revenue) link to file Finance and Resources Committee 19 November 2025 Financial monitoring report - council summary (capital) link to file Finance and Resources Committee 19 November 2025 Next steps 2.7 Assurance reviews will continue to be undertaken and reported to the Audit and Scrutiny Panel on a quarterly basis in order to maintain the measures of success set out in paragraph 3.1. The content of the quarterly assurance review reports will continue to be informed by the Performance Reporting Schedule for which an update was presented to the Audit and Scrutiny Panel meeting in August 2025. 2.8 Reports submitted to the respective committee (in line with the Schedule) will continue to be kept under review by the senior management team of the council so that adherence to the timetable is maintained. This will also seek to secure the relevant assurances in terms of the efficient and effective operation of the council and that the ongoing delivery of the long-term ambition set out in The Plan for North Lanarkshire is underpinned with good corporate governance. 3. Measures of success 3.1 Measures of success include: • Regular oversight and monitoring of performance across the organisation to gain assurances in terms of governance and accountability. • Regular review and challenge processes to scrutinise the performance of the council to ensure effective use of resources and that resources are directed in accordance with agreed policy and according to priorities, while ensuring sound decision making and clear accountability for the use of resources in achieving improved outcomes for service users and the local community. • Performance monitoring, management, and reporting arrangements that support the demonstration of improved performance in local services and outcomes, and the delivery of Best Value. 4. Supporting documentation Appendix (1) Chief Officer’s individual Performance Review reports at Service Committees in line with the Strategic Performance Framework. Appendix (2) Chief Officer service specific performance reporting which takes place each year to meet business and/or statutory obligations. Carolynne Coole Acting Chief Officer (Strategy and Engagement) Rachel Blair Chief Officer (Legal and Democratic) Page 49 of 188
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The legal impact in this report is only in relation to supporting demonstration of the council’s compliance with the relevant legislation listed below. It does not introduce new legal duties or changes to the council’s statutory duty in this respect. • The Local Government Act 1992 which established the role of the Statutory Direction to direct councils in terms of the “publication of information as to standards of performance”. • The Local Government in Scotland Act 2003 which introduced the duty of Best Value; this requires that councils “make arrangements to secure continuous improvement in performance”. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- Page 50 of 188
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mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Implementation of the Schedule, which aims to facilitate regular review and scrutiny processes, contributes to the mitigation of the risk on the Corporate Risk Register for governance, leadership, and decision making. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 51 of 188
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Appendix 1 (1) Chief Officer’s individual Performance Review reports at Service Committees in line with the Strategic Performance Framework. Report title Summary Latest performance results - Assets and Procurement November 2025 Assets and Procurement have 18 indicators in the Strategic Performance Framework covering a range of service areas. The service comprises asset management, estates management, enterprise project, forward planning and specification, town and community hub development, technical and design, procurement and support, and corporate property. The service plays a key role in leading and developing on a number of key areas that support delivery of the place based ambition set out in The Plan for North Lanarkshire. This includes asset rationalisation and development, the corporate asset management plan, the hub development and delivery programme, net zero, and improving procurement capability and capacity. The work carried out also supports delivery of various other key areas across the council such as the new supply programme, economic regeneration delivery plan, planning and place making, city deal, early learning and childcare expansion, additional support needs provision, and the leadership and operating model for the hubs. Aligned Priority: • Improve North Lanarkshire’s resource base. Ambition statement: 21. Continue to identify and access opportunities to leverage additional resources to support our ambitions. 22. Facilitate a North Lanarkshire wide approach to asset rationalisation, including with communities and partners. Consistent The pre-defined template was used to ensure a standard, easily recognisable, and well established process across each different audience over time. The use of this template aims to help build credibility, reliability, and a common understanding. Transparent RAG indicators: Benchmarking indicators: https://www.improvementservice.org.uk/benchmarking /explore-the-data Inspection indicators: • Procurement assessment score - procurement and commercial improvement programme (PCIP). In context The report notes the following context: • Assets and Procurement continue to support management teams as they transition to adopt more agile and hybrid modes of operation. While continuing to deliver at pace, the hub programme has experienced significant cost increases linked to global and national influences and given the size and scale of spend linked to this programme, any increases are significant. • The council has a largely decentralised procurement model in which corporate procurement provides the strategic governance through General Contract Standing Orders (GCSO) and professional expertise through officers that lead or support regulated procurement activity. The service is responsible for consolidating the council’s Annual Procurement report (which is a legislative requirement), managing the council’s contract register of external expenditure, and providing organisational procurement reporting. • The overall procurement function of the council is assessed regularly by a third party agency through procurement capability assessments (PCIPs) for which the service delivers an internal procurement plan. The most recent assessment was carried out in 2024 with a positive outcome reported to Finance and Page 52 of 188
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Resources Committee in November 2024. • As part of the council’s Programme of Work governance structure, Assets and Procurement are heavily involved in the Programmes of Work for Transforming Places, Invest in North Lanarkshire, Sustainable Futures, Digital North Lanarkshire, and One Service. Balanced Performance highlights: • Since the last performance report to Committee, progress continues at pace to deliver five new community hubs by the end of 2026 - with the main building at Orbiston Community Hub in Bellshill opened in November 2025, creating new facilities for Sacred Heart and Lawmuir Primary Schools, a new Family Learning Centre for nursery pupils, and a new community centre to replace the older Joe Mackay centre. This hub is fully electric, contributing to carbon reduction activity across the council. Over 500 pupils and the wider community will get decades of use out of this new bespoke community hub. Construction is underway at St Kevin's Community Hub in Coatbridge, Gartcosh Community Hub in the Northern Corridor, and St Stephens Community Hub in Coatbridge with expected completion dates of April, September, and October 2026 respectively. Chryston High extension and third sector early years creation in the Northern Corridor are also under construction, with phase one expected to be complete in November 2026. These developments will add to the Hubs already operational at Newmains and St Brigid’s, Riverbank, and Chryston. • Within the area of corporate procurement, the majority of indicators are positive, including ensuring all qualifying contracts are awarded to those who meet fair work criteria and continuing to be proactive in engaging and encouraging local business and small medium enterprise participation in procurement opportunities via the annual local and national meet the buyer events. The proportion of collaborative contracts with other publicly funded bodies remains high at 41.5%, although this is an area where spend can fluctuate from year to year. • The Enterprise project team won Highly Commended in the 2025/26 Scotland Government Opportunities (GO) awards in the Team of the Year category which was open to all public sector organisations. The Enterprise project was also a finalist in the Public Procurement of the Year category. Areas of performance requiring improvement: • Within procurement, three measures fall short of the expected target range: - Proportion of qualifying procurement contracts >£1m containing a community benefit requirement - legislation requires the council to consider whether to incorporate community benefit requirements as part of a procurement when the estimated contract value is greater than or equal to £4 million. Community benefits are a key objective of the council's Procurement Strategy and, as such, internal arrangements require that community benefits must be considered for inclusion in all procurements with an estimated value greater than £1m - a considerably lower financial threshold than required by legislation. During 2024/25, the council awarded 38 contracts within the scope of this reporting metric, 35 of these incorporated community benefits and the reasons for the remaining 3 are that (a) two contracts were urgent replacement contractor appointments for abandoned contracts, and (b) one was where the procurement was carried out by a collaborative purchasing body on the council’s behalf. - Proportion of qualifying procurement in reporting period to local organisations - spend in this area can fluctuate from year to year meaning actual performance can vary considerably from a static target. Only two of the previous seven years have been above or within the tolerance of the 70% target - these instances refer to the years when the council established multi-contractor multi-year frameworks for specific service areas, i.e. childcare and homecare, where both frameworks predominantly have a large number of local businesses. The service is currently reviewing the data around this area to establish whether the cyclical nature of contract awards requires to be reflected in the annual target moving forward. - Proportion of council spend with small medium enterprises - this metric is based on the council spend in the financial year, and the size of business the spend is with. The seven year average is 42.9%, so the current year of 39.8% is close to the average, but lower than the 45% target and +/- 5 tolerance. The council continues to be proactive in engaging and encouraging local business and small medium enterprise participation in procurement opportunities via the annual local and national meet the buyer events. • Within corporate property, the proportion of emergency repairs completed within timescale has decreased slightly (to 94.1%), lower than the target of 98%. • In relation to the proportion of properties within the commercial property portfolio occupied - the portfolio continues to see a reduced demand in the retail sector with a number of units being vacant for longer periods. 77.7% of the portfolio (775 of 998 properties) remains occupied which is a slight increase from the previous year. Limited capital funds within North Lanarkshire Properties are being targeted for areas of demand within the industrial sector. Report title Summary Latest performance results - Finance Finance has 27 indicators in the Strategic Performance Framework that are designed to report compliance with financial regulations and good governance, demonstrate Best Value in the use of resources through financial management and financial sustainability, assess efficiency in Page 53 of 188
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November 2025 service processing times, and ensure effective administration of a wide range of national welfare grants and payments that are designed to help households in need and provide a safety net for local people on low incomes. Aligned Priority: • Improve North Lanarkshire’s resource base. Ambition statement: 21. Continue to identify and access opportunities to leverage additional resources to support our ambitions. Consistent The pre-defined template was used to ensure a standard, easily recognisable, and well-established process across each different audience over time. The use of this template aims to help build credibility, reliability, and a common understanding. Transparent RAG indicators: Volume measures: • Scottish Welfare Fund community care grant - number of applications received. • Scottish Welfare Fund community care grant - council spend. • Scottish Welfare Fund crisis grant - number of applications received. • Scottish Welfare Fund crisis grant - council spend. • Discretionary housing payments - number of applications. • Discretionary housing payments - value of awards. Benchmarking indicators: • Scottish Welfare Fund crisis grants - % decisions made within one day. • Scottish Welfare Fund community care grants - % decisions made within 15 days. • Scottish Welfare Fund - % of budget spent. • Discretionary housing payments - % of funding spent. • Reserves - total useable reserves as a % of council annual budgeted net revenue. • Reserves - uncommitted General Fund Balance as a % of council annual budgeted net revenue. • Affordability - ratio of Financing Costs to Net Revenue Stream. • Affordability - ratio of Financing Costs to Net Revenue Stream, Housing Revenue Account. • Annual budget - actual outturn as a percentage of budgeted expenditure. In context The report notes the following context: • The service continues to deal with demand pressures and additional workloads as a result of wider economic impacts on local residents, however performance continues to be strong across a number of areas including council tax collection and the time taken to process new benefits claims. There are, however, areas where performance is lower than expected, including with creditors and benefit processing times for changes in circumstances. Although the service continues to operate in line with current Department for Work and Pensions (DWP) standards for benefit processing times in respect of changes in circumstances, the internal performance targets are under review to make sure they are still relevant as these have been in place for some time. • The Finance restructure in 2022 has supported greater resilience and effectiveness, helping the service to improve performance across a number of areas. Throughout 2024/25 significant demand continued to be experienced for services such as Scottish Welfare Fund and other benefit applications (particularly for changes in circumstances) as the higher cost of living impact and migration to universal credit continued. In recognition of these challenges, the service has evolved its structure to incorporate new Service Improvement Officer roles tasked with reviewing and improving customer contact, performance Page 54 of 188
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monitoring, digitising processes, and improving the uptake of online platforms. • The performance report to Finance and Resources Committee in May 2025 formally closed out performance reporting for Business and Digital prior to the Technology functions of Business and Digital being transferred under the remit of the Chief Officer (Finance and Technology). As the report in May 2025 already updated on the annual position for 2024/25 for Technology services, this report in November 2025 only covered Finance services for the same time period. Moving forward reporting will be reconfigured so that reporting for both Finance and Technology services is aligned. Balanced Performance highlights: • The service continues to demonstrate positive trends across cost measures including improvements in the cost per case for processing housing benefits. These improvements are largely as a result of the service’s ability to absorb additional demand. • Council tax collection rates remain steady and show an increase as at the 2024/25 year end (94.52%) compared to the previous year (94.05%). The total council tax collected increased from £137.7m in 2023/24 to £139.5m in 2024/25. The latest collection rates for North Lanarkshire (94.52%) are now higher than the national average (95.45%) and the average of the family group of similar councils (93.46%). • The proportion of residents choosing to pay their council tax by direct debit continues to increase (60.7% in 2023/24 to 61.9% in 2024/25). This represents an increase in the number of payers from 97,507 to 100,082 over the year as people are continuing to be encouraged to switch to direct debit as their method of payment. This is an important measure as the council looks to increase council tax collection rates and reduce the costs of administering it. • The collection rate for non-domestic rates show improvement in 2024/25 to 94.81% for the fourth year in a row following a significant dip in performance linked to the economic impact of the pandemic. Areas of performance requiring improvement: • Costs per dwelling for collecting council tax have increased in 2024/25 compared to previous years. This is the result of an increase in expenditure, largely from pay awards, alongside a proportionately lower increase in the number of dwellings on the council tax roll (from 160,906 in 2023/24 to 161,814 in 2024/25). The service continues to progress initiatives to improve council tax collection which includes incentivising payment by direct debit, improving uptake of the online portal and (alongside the Sheriff Officers and colleagues in Legal and Democratic) reviewing long-standing council tax debts. • The volume of claims for change of circumstances in housing benefit processed saw a slight reduction of 3% in 2023/24 compared to the previous financial year. However, claim volumes for changes in circumstances has since increased by 20% from 2023/24 to 2024/25 which has impacted on an increase in average processing times. Although average processing times (8.1 days) are still within the DWP processing target timescale of 16 days. • While the number of invoices processed within 30 days is still performing below target, significant work by the service during 2023/24 in relation to internal efficiencies and improving the performance of services has seen the measure improve from 76.0% in 2022/23 to 92.0% in 2023/24, with the latest performance remaining at 91.9% in 2024/25. This follows various information and reporting campaigns on late submissions, aligned with greater capacity within the payment processing team. Report title Summary Adult social care performance - Quarter 1 (April to June 2025) November 2025 The Chief Officer (Health and Social Care North Lanarkshire) has joint quarterly performance review meetings with the Chief Executives of NHS Lanarkshire and North Lanarkshire Council. These meetings are supported by a Chief Executive’s Performance Framework which comprises a range of performance measures taken from across both the health and social work systems, including relevant targets and trajectories for the measures presented. In each quarter there are areas for improvement identified within the performance framework; these are identified using a RAG rating and those measures that are flagged as Red or Amber are subject to improvement or corrective action. The performance review meetings are used as a means for jointly agreeing these actions. Aligned Priority: • Improve the health and wellbeing of our communities. Ambition statement: 12. Ensure our residents are able to achieve, maintain and recover their independence through appropriate supports at home and in their communities. 13. Improve preventative approaches including self-management and giving people information and choice over supports and services. 14. Ensure the highest standards of public protection. Page 55 of 188
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Consistent A pre-defined Health and Social Care Partnership template is in place to ensure a standard, easily recognisable, and well established process for quarterly reporting on areas for improvement. Transparent Based on a traffic-light system there are areas for improvement identified within the performance framework each quarter for those areas that are flagged as Red or Amber. The areas for improvement identified are progressed as a matter of priority, and progress updates are reported at future meetings of the Integrated Joint Board and/or the Integration Joint Board Performance, Finance, and Audit Committee as appropriate. In context • The joint performance review meetings (involving the Chief Officer for the Health and Social Care Partnership, the Chief Executive of NHS Lanarkshire, and the Chief Executive of North Lanarkshire Council) are used as a means for jointly agreeing corrective actions within the current operating environment. • Information from these performance reviews has been supplemented with additional information to offer a wider overview of performance across some key areas of adult social care delivery. Balanced The purpose of the report is to provide an update on the areas for improvement what have been identified as part of the quarterly performance review. The quarter 1 report (for April - June 2025) sets out corresponding narrative and corrective actions agreed; these are summarised below. • Assistive technology - The indicators for assistive technology (i.e. number of people with technology by age group: 0-17, 16-64, 65+) presented in the scorecard in the appendix to the report currently have a red RAG status. However, this reflects a decrease in the reported number of individuals with Assistive Technology which does not necessarily reflect an actual reduction in provision as it is due to a change in how the data is recorded. Previously, figures were derived using a methodology developed several years ago. With the transition to using ELMS2 (the software solution that supports the management of community equipment services) and Mosaic (the social care case management system), the historical method does not align with current data recording practices. While ELMS2 will be the primary data source moving forward, it needs to be linked with data held in Mosaic as well as from other legacy systems. Initial analysis to support development of the new processes revealed gaps in data collected and a new method has now been developed. This new approach excludes deceased individuals and care home residents; groups that could not be reliably excluded using the legacy data. This introduces challenges in terms of comparability and accuracy, as it is known that some recipients are not captured in the data. To improve reliability and completeness of reporting several actions are underway, including a data matching process, identifying mandatory data collection fields, understanding how assistive technology provided through self-directed support is recorded internally, and clarifying what should be included in future reporting. • Reablement and rehabilitation - The indicators for Reablement presented in the scorecard in the appendix to the report have not met the targeted levels of performance. During 2023/24, the number of people completing the Reablement process had increased, but 2024/25 saw a reversal of this trend. The percentage of new or increased home support packages that are Reablement is currently relatively stable in a range, around but below, the target of 70%. However, the percentage of people with no, or reduced, home support at the end of the process has failed to meet target. - Home support redesign - this programme is focussed on home support that achieves individual outcomes for people using the service and their families. The redesign is based on core principles that are aligned with B2B, self-directed support, and developments in hospital flow. It is supported by several products that have been produced to progress the work, including service specifications, a workforce profile, and an analysis of demand / capacity data. The proposal is for a Living Well service that provides home support to achieve individual outcomes for the people using the service and a distinct Assessment and Planning service, that will include Rehabilitation and Reablement services. This aims to ensure that people receive a holistic assessment of their need and are provided with the most appropriate services to meet individual outcomes. - Proportion of IEAS (integrated equipment and adaptation service) deliveries achieved within 7 working days - while Q4 performance saw improvement (rising to 73.4% from 60.1% in Q3) and marks a positive trend, it remains below the 80% target. Improvement reflects ongoing efforts to embed service transformation and fully implement the new priority-based delivery framework. Since December 2024, the service has operated under a four-level prioritisation model, which has shifted focus toward higher-priority deliveries (P1 and P2). Consequently, P3 orders have significantly reduced, and backlogs in lower-priority categories are now being addressed in a more structured and consistent manner with the service continuing to engage with teams to support appropriate ordering and effective signposting. Service capacity remains under pressure due to vacancies, absence, and holiday cover, impacting on the ability to process new orders. Despite these operational challenges, the service continues to advance its transformational agenda and the ELMS2 software solution is now live and in use, with refinements ongoing in terms of improving reporting capabilities and system integration as well as the development of new performance indicators to align with the priority model. This ties into the work noted above regarding Assistive Technology and ensuring that data recording processes enable linked reporting across systems. Page 56 of 188
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Appendix 2 (2) Chief Officer service specific performance reporting which takes place each year to meet business and/or statutory obligations. Report title Summary Scottish Housing Regulator - landlord report 2024/25 November 2025 The Scottish Housing Regulator (SHR) and the Scottish Social Housing Charter (SSHC) were enacted by the Housing (Scotland) Act 2010, which required Ministers to set standards and outcomes that social landlords should be achieving for tenants and other customers through their housing activities. The Act also established the SHR as an independent Regulator directly accountable to the Scottish Parliament. Scottish social housing landlords significantly vary in stock size from 1 to 42,213 properties. The SHR requires social landlords to collect and provide key information on their performance in achieving the SSHC outcomes and standards in an Annual Return on the Charter (ARC). Returns are required by 31 May each year. Landlords also have a duty to publish a performance report, which requires to be made available to all tenants. In addition, all landlords have a legal requirement to submit a signed Annual Assurance Statement to the Regulator by 31 October each year. The council’s Annual Assurance Statement for 2024/25 was reported to the Housing Committee in August 2025. Following submission of each local authority and Registered Social Landlord’s (RSLs) ARC, the SHR publish a profile of all social landlords, which allows tenants to compare landlord’s performance across Scotland. In addition, an annual landlord report is produced by the SHR. Aligned Priority: • Improve economic opportunities and outcomes. Ambition statement: 1. Ensure a housing mix that supports social inclusion and economic growth. Consistent • The landlord report produced by the SHR reports on indicators within five main categories: homes and rents, tenant satisfaction, quality and maintenance of homes, neighbourhoods, and value for money. These areas for reporting were agreed by the SHR following consultation with tenants. Performance in these indicators require to be set within each landlord’s context. • The SHR publishes individual engagement plans in April each year for all social landlords, this highlights any areas of service they will focus on with the local authority concerned. The 2025 engagement plan for the council has not highlighted any current areas of concern, however it continues to highlight those services areas which the SHR monitors across all landlords. Transparent • The SHR website publishes a wide range of reports and analysis about all social landlords in Scotland, including landlord reports, engagement plans, annual assurance statements, risks, and statistical information. In context • The report advises of the Landlord Report published by the Scottish Housing Regulator (SHR) which shows Scotland’s social landlords’ performance for both Local Authorities and Registered Social Landlords (RSL’s) against the Scottish Social Housing Charter (SSHC). Balanced The covering report to committee provides a summary of the performance figures from the five main areas detailed within the Landlord Report: Homes and rents • Average rent for all North Lanarkshire properties reported in the ARC return for 2024/25 was £86.93 per week, below the Scottish average of £106.40. Tenant satisfaction • The council’s latest tenant satisfaction survey was completed in August 2023, with a return to face-to-face interviews that had been previously used prior to the pandemic. The 2023 survey results are permitted to be submitted for a maximum of three years in the ARC, 2025 marks the second year of reporting these figures. The next survey is scheduled for spring/summer 2026. • Overall satisfaction levels in the 2023 survey increased to 86.6%, slightly lower than the Scottish average of 86.8% but higher than the local authority average of 80.7%. An increase from the 2021 survey saw 95.8% of tenants stating that they felt the council was good at keeping them informed about services and outcomes, higher than the Scottish average of 90%, and the Scottish local authority average of 80.5%. Page 57 of 188
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Quality and maintenance of homes • The percentage of homes meeting the Scottish Housing Quality Standard (SHQS) was 86.6%, an increase from the council’s 2023/24 figure. Latest performance is slightly under the Scottish average of 87.2% but higher than the local authority average of 82.9%. • Average time taken to complete emergency repairs was 2.7 hours, compared to Scottish and local authority averages (3.89 and 3.8 hours respectively). For non-emergency repairs this was 5.7 days, compared to Scottish and local authority averages (9.13 and 10.1 days respectively). • 94.1% of reactive repairs were completed right first time, comparing favourable to Scottish and local authority averages (88% and 89.2% respectively). • 96.2% of tenants who had repairs carried out said they were satisfied with the service they received, an increase from the previous year. Satisfaction levels are significantly higher than the Scottish average of 86.8% and the local authority average of 85%. Neighbourhoods • 96.6% of anti-social behaviour cases were resolved, compared to the Scottish average of 93.4% and the local authority average of 89.9%. Value for money • Rent collection levels for 2024/25 were 99.96% (rounded to 100% by the SHR) which is on par with the Scottish and local authority average (both 100%). • The council continues to secure more direct Universal Credit payments and pursue other non-Universal Credit tenant debt which has had a positive impact on the overall arrears’ levels. The Rent Assistance Fund, introduced in 2023, continues to help tenants to maintain and sustain their tenancy. • Average days to re-let homes decreased 4.3 days to 30.7 days in 2024/25 - an improvement from 35 days the previous year and significantly lower than the Scottish average of 61 days and the local authority average of 78.1 days. The council’s housing and repairs teams continue to work together and liaise with the contractor to improve timescales. • The council’s void rent loss figure of 0.8% also compares favourably to the Scottish average of 1.3% and the local authority average of 1.7%. Monitoring and managing rent loss continues to be a priority for the service. Report title Summary Homelessness - annual progress update 2024/25 November 2025 This report provides an update on year one progress against the Homelessness Action Plan (HAP), which includes an update on the pilot of the one-offer approach for homeless applicants, and sets the strategic context for year two. It also presents an overview of the 2024/25 homelessness context, which marks the first recorded decrease in homelessness for North Lanarkshire since 2020/21, and at a national level. Appendices provide detailed insight into local and national trends, and progress delivering HAP actions. The council developed a new Temporary Accommodation Strategy (2024-29) which was approved by the Housing Committee in May 2024. Although there is no statutory requirement to develop such a strategy, it is considered good practice to better understand need and demand to inform temporary accommodation provision and provide accommodation that meets the diverse range of housing and support needs of people who experience homelessness. It also safeguards the council against any potential breaches of legislation, through ensuring a sufficient supply of temporary accommodation for homeless households that require temporary accommodation, while contributing to the overarching shared ambitions set out in The Plan for North Lanarkshire and the Local Housing Strategy. Aligned Priority: • All priorities. Ambition statement: 24. Review and design services around people, communities, and shared resources Consistent • The Rapid Re-Housing Transition Plan (RRTP) is a planning framework for local authorities and their partners to transition to a rapid re-housing approach, working collaboratively to prioritise prevention activity, taking a housing led approach to widening access to suitable long-term housing options, and reducing stays in temporary accommodation. • The HAP is aligned with wider local and national frameworks including the council’s Local Housing Strategy 2021-26 and Temporary Accommodation Strategy 2024-29, and the United Nations Convention on the Rights of the Child (UNCRC). It supports the national commitment under The Promise, embedding the rights and needs of children, young people, and care-experienced individuals in housing policy and service delivery. Transparent • The council’s approach to homelessness was commended in the Audit Scotland Annual Audit Report 2024/25 published in September 2025. This highlighted North Lanarkshire’s strong performance in homelessness prevention, shorter average durations in temporary accommodation, and effective Page 58 of 188
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multi-agency working. These findings reinforce the council’s strategic readiness to implement new statutory duties under the Housing (Scotland) Bill. • Within the council oversight of the HAP is provided by a steering group, which meets quarterly to monitor delivery and respond to emerging needs. Delivery is also supported by a structured performance framework that ensures transparency and accountability across strategic priorities. This includes steering group reviews of status updates and progress being made against agreed milestones in line with the priorities. In context • The report sets out the following context that shows the current North Lanarkshire approach in relation to national homelessness plans and policies. - The Scottish Government’s Ending Homelessness Together Action Plan 3 set out a national vision to end homelessness, with rapid rehousing at its core. All local authorities were required to develop RRTPs, providing a framework for prioritising prevention, expanding access to settled housing, and reducing time spent in temporary accommodation. - Closely aligned with the Local Housing Strategy, Health and Social Care Strategic Plan, Strategic Housing Investment Plan (SHIP), Locality Outcome Improvement Plans, and The Plan for North Lanarkshire, the council’s RRTP (2019-20 to 2024-25) set out the necessary changes in temporary accommodation, housing supply, and multi-agency support to provide sustainable housing options for homeless households as quickly as possible. National funding allocations for 2025-26 and 2026-27 have enabled the council to consolidate RRTP achievements while transitioning to implementation of the HAP. - In May 2024, the Scottish Government declared a national housing emergency due to rising homelessness, a shortage of affordable housing, and increasing pressures on local authorities. Unlike many local authorities, North Lanarkshire Council has not declared a housing emergency, demonstrating a proactive and resilient approach to managing homelessness. The council has instead prioritised delivery of its HAP, aligning with national priorities through sustained investment and partnership working. - Since 2020-21, homelessness applications in North Lanarkshire have increased by nearly 30%, peaking in 2023/24 before falling by 1.9% in 2024/25. Analysis of most recent data covering the six month period (April to September 2025) shows a continuing decreasing trend in the number of homelessness applications in North Lanarkshire, with applications 7.7% lower than the same period in the previous year. - Within this context, the HAP was developed as the strategic successor to the RRTP, aligning with national priorities and responding to the evolving housing landscape. The council continues to receive support through the Ending Homelessness Together Fund, which enables delivery of RRTP objectives through to 2026/27. This funding has sustained key initiatives, supported the integration of RRTP activity into mainstream services, and prepared the council for new statutory prevention duties introduced by the Housing (Scotland) Bill. Balanced The report summarises progress in delivery for the first year of the HAP. Highlights across all four strategic priorities (housing supply, temporary accommodation, support, and prevention) are summarised below. • Housing supply - increasing the supply of affordable homes, where the council’s new build target has increased from 5,000 to 6,000 homes, aims to contribute to reductions in homelessness. The following is helping to support this: - 370 new council homes were delivered in 2024/25 (278 new build, 92 via the open market purchase scheme), bringing the total to 2,474. - 81 new Registered Social Landlord (RSL) homes delivered during 2024/25. - 26 empty homes were brought back into use in the private sector with support from the Empty Homes Officer. An additional Empty Homes Officer post is being progressed to increase delivery capacity. - A strategic housing need and demand analysis is underway to inform future priorities and private landlord newsletters were issued to promote the open market purchase scheme and encourage participation. • Temporary accommodation - policy changes and strengthened partnerships are helping streamline rehousing processes in order to support reductions in the time spent in temporary accommodation through access to settled housing quickly. The average time spent in temporary accommodation in North Lanarkshire is 136 days, significantly below the national average of 238 days. The following progress is helping to further reduce these timescales. - In 2024/25 there were 58 flipped tenancies in 2024/25, compared to 57 in 2023/24. - Local RSL / council homelessness liaison meetings have been established to improve collaboration. - A review is underway of the sustainability and suitability of all unit-based accommodation. - 78.8% of open market purchase scheme and empty homes purchase scheme homes were allocated to households who were homeless or at risk. • Support - improvements are being made to support for households who are homeless or at risk of becoming homeless. This includes enhancements to the support infrastructure through new commissioned services, trauma-informed practice, and expanded internal models to ensure timely and appropriate assistance with the following also contributing positively to improve supports. 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- A commissioned housing support review and procurement exercise has been concluded, with new contracts implemented from August 2025. - Trauma-informed training has been delivered to 161 staff (informed level) and 30 staff (skilled level), with trauma-informed reception hubs being developed across council managed accommodation. - A bi-annual housing domestic abuse forum has been established to support cross-sector learning. - The Homes First model continues to be implemented and is emerging as a best practice approach for tenancy sustainment and trauma-informed support. In 2024/25, the service supported 73 individuals, with positive outcomes in tenancy stability and reduced repeated homelessness. - A RRTP Senior Officer has been recruited to support multi-agency collaboration and continuous improvement, and a dedicated Housing Development Officer to enhance housing options education and frontline support. - Rent Assistance Funding continues to contribute to a reduction in arrears and material hardship, leading to tenancy sustainment. Funding has also supported Homes First clients in respect of essential furniture, and localities have been allocated vouchers to support immediate needs. • Prevention - preventative approaches are being embedded across services, with targeted efforts for young people, those leaving institutions, and individuals with complex needs. Cross-sector collaboration is central to this work; this includes the following: - The number of reception flats for care experienced young people has increased from 3 to 4. - Wellbeing and tenancy sustainment check-ins have been developed for young people and those with identified support needs. - Housing links to courts and prison release are being established, with a commitment to employ a temporary housing / prison link worker. - Health and homelessness steering group has been re-established with development of new action plan underway. - Targeted cost-of-living funding streams are being used to reduce financial hardship and prevent homelessness, particularly for young people and low- income households. The report also advises that the HAP steering group has continued to drive forward key actions that support strategic co-ordination, service improvement, and delivery across all four priorities. These include: • Enhancing landlord engagement through the Private Landlord Forum and promotion of the Rent Deposit Guarantee Scheme (RDGS). • Delivering RDGS staff briefings across all localities to raise awareness and encourage uptake. • Establishing a short-life working group to improve the Common Housing Register and homelessness allocations. • Developing education offerings on homelessness awareness for schools and colleges, including a housing options session delivered at New College Lanarkshire by the Housing Strategy and Tenant Participation team. • Advancing UNCRC compliance in housing services for children and families with actions identified and best practice materials under review. Report title Summary Housing - annual performance report 2024/25 Published 27th October 2025 This report is published in line with Scottish Housing Regulator (SHR) requirements. The SHR requires social landlords to collect and provide key information on their performance in achieving the Scottish Social Housing Charter (SSHC) outcomes and standards in an Annual Return on the Charter (ARC). Returns are required by 31 May each year. Landlords also have a duty to publish a performance report, which requires to be made available to all tenants. The information in this report (published on the website https://www.northlanarkshire.gov.uk/housing/housing-annual-performance- report/housing-annual-performance-report-20242025) sets out the council’s performance against the Scottish Social Housing Charter (SSHC) outcomes and how, as the largest council social landlord in Scotland, key objectives are being achieved and can be compared to other local authorities in Scotland. Aligned Priority: • Improve economic opportunities and outcomes. Ambition statement: 1. Ensure a housing mix that supports social inclusion and economic growth. Consistent • In line with the SHR requirements placed on each council to provide a report to tenants advising of performance against the SSHC, tenant representatives are required to work with each council to review the performance data and agree the content and format for annual performance reports. • The timescale for publishing a report each year is 31st October. Page 60 of 188
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Transparent • To produce the annual report (including developing the contents and format) the council works in partnership with the North Lanarkshire Federation of Tenants as well as local residents’ groups. • The performance information is available to tenants in a range of formats, including through the website and via a summary file. The website segments performance into five summaries in terms of the customer landlord relationship, housing quality and maintenance, neighbourhood and community, access to housing and support, and getting good value from rents and service charges. • A link to the annual performance report is made available to Elected Members upon publication. • The information reported includes data for other Scottish local authorities, as well as the national average so that comparisons can be made. In context • The annual performance report is designed to keep tenants, service users, and other customers informed of the council’s performance and progress towards meeting the outcomes of the Scottish Social Housing Charter (SSHC). • The report provides the context within which the latest performance has been achieved, noting that overall performance remains strong despite the challenging economic circumstances being faced by tenants, in particular the cost of living crisis, fuel poverty, and inflation. Balanced • The report provides information outlining how the council is performing against the national Scottish Social Housing Charter (SSHC) outcomes. It gives tenants information about their housing service, how the council has performed as a social landlord, and how the council’s performance compares across Scotland. It shows performance over the range of outcomes for the SSHC over the last three years, highlighting successes and achievements as well as identifying areas where improvements to the service are required or have been carried out. • Key highlights report that the council has continued to perform above the Scottish average in several key areas, including tenant satisfaction, delivering value for money on rents, and providing a quick and reliable repairs service. Rent charges remain below the Scottish average, helping to ease financial pressure on tenants. Satisfaction with the repairs and maintenance service has reached its highest level in three years, now standing at over 96%. Complaints continue to be a valuable source of information with stage 1 complaints being responded to on average within 4.9 days (compared to a Scottish average of 8.1 days) and stage 2 complaints within 13.3 days (compared to a Scottish average of 27.1 days). • The report advises that through the new build programme and purchase schemes, housing supply is progressing well and contributing to the goal of delivering 6,000 new affordable homes by 2035. In addition, progress on delivering the Towers Strategy was reported, including the demolition of Allan, Coursington, and Draffen Towers in Motherwell in December 2025. • An update from the Chair of the North Lanarkshire Federation reflects the positive performance and provides key highlights which included strengthening their governance and supporting tenant participation. 20 Executive Committee meetings were held throughout 2024/25 with key documents being reviewed and updated (e.g. Constitution, Code of Conduct, and Sub-Committee procedures). Working together, Executive Committee members took part in a wide range of sessions and meetings, including strategy development, web page planning, community board discussions, scrutiny reviews, and performance meetings as well as supporting tenant participation accreditation efforts through engagement with councils across Scotland to share ideas and strengthen partnerships. The group’s scrutiny work for the year focussed on retirement housing design and technology. Report title Summary Annual report of the Chief Social Work Officer - 2024/25 November 2025 The requirement that each local authority appoint a professionally qualified Chief Social Work Officer is contained in Section 45 of the Local Government (Scotland) Act 1994. Statutory guidance updated in 2016 reflected the impact of Health and Social Care integration, extending the responsibilities of the role to provide advice to the Integration Joint Board (IJB). In addition, the role carries key responsibilities for professional leadership, values, and standards for both directly provided and commissioned services. The Chief Social Work Officer role requires to be undertaken by one designated individual; delegation of responsibilities is permitted where required by the scale of business. In North Lanarkshire this means that the Chief Officer (Adult Social Work Services) routinely exercises delegated responsibilities for decision-making and professional standards within adult services as well as providing support and cover with respect to the wider functions of the Chief Social Work Officer role. Within North Lanarkshire adult social work and social care services are delivered through Health and Social Care North Lanarkshire (HSCNL), while children, family, and justice services are delivered through the council’s Education and Families service. Page 61 of 188
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Aligned Priority: • Support all children and young people to realise their full potential. • Improve the health and wellbeing of our communities. Ambition statement: 7. Enhance collaborative working to maximise support and ensure all our children and young people are included, supported, and safe. 9. Invest in early interventions, positive transitions, and preventative approaches to improve outcomes for children and young people. 10. Engage with children, young people, parents, carers, and families to help all children and young people reach their full potential. 11. Increase economic opportunities for adults by understanding, identifying, and addressing the causes of poverty and deprivation and barriers to financial inclusion. 12. Ensure our residents are able to achieve, maintain, and recover their independence through appropriate supports at home and in their communities. 13. Improve preventative approaches including self-management and giving people information and choice over supports and services. 14. Ensure the highest standards of public protection. Consistent • In line with Scottish Government guidance, the Chief Social Work Officer is required to produce an annual report to provide a key overview of social work service delivery and performance. • The Office of the Chief Social Work Advisor (OCSWA) also produces a national report each year which draws on key themes and messages from each Chief Social Work Officer’s report across Scotland. • The annual Chief Social Work Officer report follows a nationally set template. Transparent • The Chief Social Work Officer annual report provides a detailed account in terms of the delivery of statutory functions and performance and improvement activity across the range of social work services in North Lanarkshire. Set out in an appendix, it represents a significant volume of information that also includes links to a wide range of other materials. • The report is intended to provide an overview and support scrutiny of social work service delivery and performance over the year. Due to scope of its coverage, it is recognised that the report is lengthy and covers some areas on which the council’s committees will have previously received reports. As such, future presentation of the report will be reviewed to make it easier to navigate and also to increase the visibility of data and impact information. • External scrutiny is primarily undertaken through the Care Inspectorate through regular inspection of regulated services. In 2024, North Lanarkshire was selected by the Care Inspectorate as one of four partnerships to participate in a thematic (nationwide) inspection. This was a focused review of experiences of young people and the quality of the services being provided for them, as part of an overall high level national review of throughcare and after care support. In North Lanarkshire, the Care Inspectorate identified the following: - North Lanarkshire has a clear approach and commitment to supporting and improving the participation of care experienced young people and providing effective opportunities for them to influence service design. - Young people had opportunities to establish supportive, compassionate, and responsive relationships with staff and others involved in their support - Leaders ensured there were mechanisms in place for all services to collaborate effectively to meet the needs of care experienced young people. - Overall, young people said they were receiving the right support at the right time across the pillars of the Care Leavers Covenant. However, some stated they were not receiving support with their mental health, housing, and offending behaviour. Some young people commented on difficulties experienced due to not feeling ready or prepared for moving on, or in the right place once they had moved on. - The review also highlighted the integrated approach to health and wellbeing as an area of good practice based on listening to the voices of care experienced young people and involving them in service design to remove barriers for young people to access health services. The collaboration has also found to be crucial in meeting needs and avoiding young people being lost or excluded from adult orientated systems. In context • The appendix to the report sets the context in that social work services continue to play a critical role in supporting communities in North Lanarkshire and in meeting both national and local priorities to improve outcomes, address inequalities, and empower those individuals and families who may face exclusion or a range of adversities. Demand challenges driven by a range of societal factors (including demographic change and health inequalities) Page 62 of 188
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continue to impact on services alongside financial constraints and new legislative duties reinforcing the need not only to continue to innovate and make improvements in the delivery of statutory functions, but to also work with partners and those requiring support to strengthen early support and prevention. • The report also sets the North Lanarkshire context in that social work employs just over 3,000 staff (around 185 of whom are sessional). In collaboration with commissioned services and third sector partners, support is provided to around 30,000 individuals and families at any one time. Social work also makes a key contribution to wider partnership and community activity. • As illustrated within the report partnership working is fundamental to social work at every level and a key aspect of the Chief Social Work Officer role involves developing and sustaining partnership working and relationships across a range of organisations and structures. In addition to the specific responsibilities of the Chief Social Work Officer to the council and HSCNL, this post holds a key leadership role within local partnership arrangements. • The delivery of social work is also supported by the one plan ethos and structures of The Plan for North Lanarkshire which facilitate strong links with other key services such as housing, employability, and community learning and development and there are examples throughout the report of how this is helping improve outcomes for those requiring support. Balanced • Set out in an appendix, the Chief Social Work Officer’s annual report provides an overview of social work service delivery information in North Lanarkshire for 2024/25 and covers the following areas - governance and accountability arrangements (including partnership working and statutory functions), service quality and performance (including key service improvement activity and challenges impacting service delivery), resources, workforce issues (including workforce planning, training, and development), and future priorities in respect of the social work landscape and priorities for 2025/26. • Key points from the report are summarised below: - Income maximisation, tackling poverty, and addressing financial wellbeing remain key to (and embedded in) social work practice, recognising the link between poverty and health inequalities which contribute to driving the need for services and consideration of the evidence that compulsory interventions are disproportionately experienced by those in poverty within local communities. - While social work services within both education and families, and health and social care services, were able to deliver services within overall budgets during the period, this to some extent masks a range of demand and financial pressures impacting on social work service with vacancies and recruitment challenges in some service areas also a key issue. The appendix to the report provides further information on how workforce challenges are being managed while also reflecting on positive progress in some areas, such as social worker retention. - A range of factors (including the legacy impacts of the pandemic, cost-of-living crisis, new legislative duties, an increased number of people who are impacted by complex needs and frailty, and societal factors contributing to new safeguarding needs) have all meant that meeting demand within available resources continues to be challenging. As the report demonstrates however, the service has continued to innovate to ensure not only that statutory duties are delivered to a high standard but to improve outcomes and people’s experience of services. Throughout the period a strong balance has been retained across all care groups, supporting individuals to remain within their homes and communities wherever possible and empowering individuals and families to achieve positive outcomes. - A key focus across all social work areas continues to be the promotion of trauma-informed, relationship, and strength-based practice with a particular focus on preventative approaches and enhancing early support. In adult services system change to support an enabling approach is being rolled with a view to eliminating waits for assessment and to fulfil the commitment of right support right time (adopting a Getting it Right for Everyone approach). - A public health approach within justice is promoting a holistic response to need while continuing to manage risk. - In children’s social work, work to embed Signs of Safety and Healing - alongside engagement with the schools empowering clusters model and expansion of early family support services - is progressing well, with early indications of the work having a positive impact on referral volumes. - Looking forward, the report and its appendix reflect on opportunities to continue the whole system approach within the context of the challenges facing social work services as well as the financial challenges impacting on the public sector and communities. Report title Summary Educational psychology standards and quality - 2024-25 highlights The council’s Educational Psychology service provides support at the universal (whole school early intervention), additional (targeted), and intensive (statutory/complex) level within all establishments and clusters to meet the needs of all children and young people, including those with specific additional support needs. This report summarises the work of the Educational Psychology service in session 2024-25. It details how Educational Psychologists deliver their Page 63 of 188
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November 2025 statutory core functions (i.e. consultation, assessment, intervention, training, and research) to improve outcomes for children and their families. Aligned Priority: • Support all children and young people to realise their full potential. Ambition statement: 10. Engage with children, young people, parents, carers, and families to help all children and young people reach their full potential. Consistent • The work of the Educational Psychology service is aligned to key local and national drivers (e.g. the National Improvement Framework), the council’s Health Check Indicators, The Plan for North Lanarkshire, and the Education and Families Improvement Plan Transparent • Every education authority must maintain a Psychological Service in line with the Education (Scotland) Act 1980 s.4. Educational Psychologists in North Lanarkshire are registered professionals regulated by the Health and Care Professionals Council, and their role in Scottish local authorities is determined by law in Scotland (Education (Additional Support for Learning) (Scotland) Act, 2009). The core functions of Educational Psychologists are consultation, assessment, intervention, training, and research. • Educational Psychologists use psychology as a vehicle to deliver a service. In North Lanarkshire the team, who are all Chartered Psychologists, work directly (and with partners such as the NHS) to improve outcomes for all children and young people. In context • In 2024-25, intensive work - i.e. direct work with children and young people as part of the team around the child - continued to account for the largest proportion of service delivery. As in previous years, there was also a significant demand for universal work (e.g. consultation, coaching, and training) to enhance professionals and families’ ability to support children. Well-established self-evaluation mechanisms were used to measure the impact of the multi- faceted work of the service. These enabled Psychologists to make responsive adjustments to delivery to improve outcomes for children and young people. • In 2024-25 Educational Psychologists have made adaptations to their psychological offers in response to rising levels of additional support needs. The report details the range of work delivered during 2024-25 and provides a focus for 2025-26. Balanced • Key highlights from the report include information regarding: - Staffing - in 2024/25 there was a staffing establishment of 26.2 FTE Educational Psychologists; approximately one Psychologist for every 2,200 children and young people (age 3-18). - Number of whole service offers delivered during 2024/25 by level - universal (508), additional (350), and intensive (1,214). The report also includes details outlining the range of support provided at each level. - The outcome of restorative approaches - this shows a range of positive outcomes for pupils around conflict resolution, pupils feeling safe in school, peer mediators being helpful, looking at both sides of a story, and feeling good about resolving conflict. - Staff training and development - various sessions have been completed including a focus on being solutions orientated as well as managing critical incidents and suicide. This includes a range of materials, e.g. on study skills and exam stress and building capacity in the core function of assessment through tools such as cognitive abilities profiling. Training also focused on healthy sleep, the importance of relationships in nurturing brain development, as well as wellbeing, stress, and anxiety interventions for staff and pupils and literacy interventions and expressive language development. - Assessment and planning - to support educational psychology at the intensive level, practitioners from primary, secondary, and early years settings participated in resilient planning toolkit training sessions to support professional development around GIRFEC (Getting it Right for Every Child) assessment and planning. This had a positive impact in terms of increasing staff confidence afterwards in better being able to understand need, agree targets, and focus supports leading to improvements in pupil health and wellbeing, and attendance. • In terms of casework, the report outlines there are approximately 1,700 open cases, representing the intensive level work that Psychologists undertake within educational establishments. Most open cases were located within SIMD deciles 1-4 (68%). 52% of open cases were primary aged children (5-11), 23% were secondary age children (12 years and over), and 22% with children attending early years establishments. • The service continues to obtain feedback from parents and carers with performance in 2024/25 showing a significant increase in the response rate since rolling out a digital feedback mechanism. The report also provides information in relation to families providing feedback on consultation meetings with practitioners and the impact that the service has had on their child and their child’s educational context. • The report includes information regarding counselling schools and the role of Psychologists on the council’s Fostering and Adoption Panel, as well strengthening methods used to capture self-evaluation data across universal, additional, intensive, and service levels as well as plans for ensuring Page 64 of 188
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continuous improvement in this respect. Report title Summary Community learning and development - annual performance and activity report 2024/25 November 2025 This report provides an overview on progress in relation to community learning and development activity for 2024/25. This includes both universal and targeted work with an emphasis on engagement with vulnerable people living in the lowest 20% data zones in Scotland (as per the Scottish Index of Multiple Deprivation (SIMD)) and other vulnerable groups as reflected within the national self-evaluation framework for community learning and development. Aligned Priority: • Enhance participation, capacity, and empowerment across our communities Ambition statement: 6. Raise attainment and skills for learning, life, and work to enhance opportunities and choices. Consistent • The report reflects the Community Learning and Development Action Plan for 2022-25 which merged the previous Adult Learning, Family Learning, Youth Work, and Recovery Plans into one plan to ensure a more connected and cohesive approach to delivery. • The report also references the contribution of community learning and development to integrated work in support of delivering the council’s Programme of Work. Transparent • The report clearly highlights the outcomes for the year 2024/25 against a specified list of community learning and development reportable indicators, with comparisons to previous years. In context • The report notes that community learning and development provision is subject to The Requirements for Community Learning and Development (Scotland) Regulations 2013 and associated guidance for local authorities. Outcomes, improvement activity, and the demonstration of positive impact are captured through the How Good Is Our Community Learning and Development? (4th Version) evaluation framework from Education Scotland. • HM Inspectors evaluate and report on the quality of service provision across all local authorities in Scotland through local inspection and progress visits. The most recent visit by HM inspectors took place in December 2023 which resulted in a positive outcome report published by Education Scotland in February 2024. As a result of this positive inspection, no further actions or follow up visits to North Lanarkshire were required by HMIe during 2024/25. It is expected HMIe will announce plans for the next round of inspections at the end of 2025/26 once the agency restructuring plans are further developed. • Since the removal of pandemic restrictions in 2021, the number of unique learners engaging with community learning and development has continued to increase for the past four years in a row. In 2024/25, a total of 8,714 distinct children, young people, and adults engaged in programmes. Trends show enrolment in programmes has not only recovered in recent years but is now 16% higher than before the pandemic. Balanced • The covering report provides a summary of performance information in relation to key areas of service, including engagement in community learning and development programmes, adult learning and resettlement, family learning, youth work, and health and wellbeing. It includes self-evaluation information and the outcome of an options appraisal and review of community learning and development (including the provision of youth diversionary activities). • The published annual report in the appendix provides a further volume of performance information against the community learning and development plan for 2022-25, together with feedback from service users, and achievements from cross cutting areas of work. Key highlights are summarised below: - Service delivered - of the 3,740 adults (aged 16 and over) who enrolled in community learning and development programmes in 2024/25 (up from 3,390 in 2023/24), just under half (45%) live within the 20% most deprived areas in North Lanarkshire. Of the 3,779 young people (age 8-15), 41% live within the 20% most deprived areas. - Social media - accounts have continued to actively promote the work of the service and recognise the achievements of learners and participants. There are now 15,610 social media followers, an 11% increase from the previous year. Since being streamlined in 2021/22, social media channels have focussed on key themes of adult learning and resettlement, family learning and parenting, and youth work which was complemented by specific channels for focused areas of work such as community based Gaelic. Page 65 of 188
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- Adult learning - the service has continued to provide a range of nationally accredited learning programmes for adults including core skills in areas such as literacy, numeracy, IT, communications, working with others, and problem solving. Nationally recognised qualifications include Scottish Qualifications Authority (SQA) units and awards and a total of 939 SQA units and awards were achieved in 2024/25 by adults (aged 65 and over), a 92% increase from 488 in the previous year. This increase has been mainly due to additional courses in ESOL (English for speakers of other languages), adult numeracy, and digital skills via externally funded projects such as Resettlement, Sum It Up, and Digital Skills. - Family learning - during the year 2,428 unique individuals took part in family learning programmes and 1,110 learners participated in parenting support programmes. Parents, carers, and children have benefited from a range of family learning and parenting programmes with progress measured through thematic learning outcomes - 6,222 outcomes were achieved by adults aged 16 and over (an increase of 68% from the previous year) and 1,594 outcomes were achieved by children and young people aged 15 and under (an increase of 17%). In total, 7,816 family learning outcomes were achieved in 2024/25, an increase of 2,742 (54%) on the previous year’s total of 5,074. - Youth work - the delivery of youth work services is based on a hybrid model of universal and targeted provision. This includes provision such as community based youth groups, thematic groups, work with schools, individual support and diversionary work with young people. During 2024/25 the service continued to target work with young people based on need, including young carers, young people with additional support needs, those with health issues, and those who are experiencing (or have had experience of) care. A total of 5,876 youth work outcomes were achieved in the year which, while above target, was a small decrease in the number of people engaged in community learning and development provision from the previous year (3,779 in 2024/25 compared to 4,304 in 2023/24). - Mental health and wellbeing - a combined total of 5,887 people took part in programmes aimed at promoting positive mental health including stress management, confidence building, emotional literacy, and coping with bereavement or loss (a slight decrease from 6,099 the previous year). Report title Summary Freedom of Information (FOI) and Environmental Information Requests (EIR) - annual report 2024/25 November 2025 This report provides details of Freedom of Information (FOI) and Environmental Information Regulation (EIR) requests received by the council during 2024/25 as well as information on internal reviews and appeals to the Scottish Information Commissioner. It analyses request volumes, response performance, outcomes, reviews, and appeals with year-on-year comparisons made to highlight key trends. The Freedom of Information (Scotland) Act 2002 (FOISA) and the Environmental Information (Scotland) Regulations 2004 (EIRS), provide rights to the public to ask for and be provided with recorded information held by public authorities. The EIRS legislation governs access to environmental information such as planning matters, contaminated land, and emissions, etc. Once a Freedom of Information or Environmental Information Regulation request is received the council has, in most cases, 20 working days to provide the information asked for, or explain why it cannot be released. If dissatisfied, requestors can ask for an internal review. Where dissatisfaction continues, an appeal may be lodged with the Scottish Information Commissioner. Aligned Priority: • Enhance participation, capacity, and empowerment across our communities. Ambition statement: 20. Improve the involvement of communities in the decisions, and development of services and supports, that affect them. Consistent • Information regarding the volume of Freedom of Information (FOI) and Environmental Information Regulation (EIR) requests received by the council is reported each year to Committee. The report for 2024/25 provides a deeper dive into the volume and nature of requests received and processed during the year. This includes comparisons with the previous two years as well as for each quarter of the year as well as an analysis of performance. • Information is also provided in terms of review and appeal activity, including the outcome in terms of whether an original decision was overturned. Transparent • The report advises that in 2024/25, the council received 1,757 information requests (1,407 FOIs and 350 EIRs), representing the second highest volume on record. Despite this sustained demand, the council achieved a 99% compliance rate in meeting the statutory 20 working day response deadline - maintaining an excellent performance standard as defined by the Scottish Information Commissioner for the third consecutive year. • Where requests were either refused in full or only partially fulfilled, exemptions under the FOISA or EIRs were applied. A table of data in the report summarises the exemptions and exceptions most frequently relied upon in 2024/25. • This report includes information in relation to managing high-volume requests, for example in 2024/25 the council received a notable concentration of Page 66 of 188
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requests relating to changes in school transport. An effective strategy to this demand was the proactive identification and publication of relevant information related to the subject generating the requests. Making this information publicly accessible not only helped manage demand by addressing common queries but also enabled the council to process incoming requests more efficiently. To further support transparency and reduce duplication, key information on school transport was also published on the council’s website, providing a helpful reference point for both requestors and staff. • During the year the council was not subject to any practice recommendations or formal interventions by the Scottish Information Commissioner. Additionally, no new guidance or published recommendations requiring improvements were issued during this period, reflecting the council’s continued adherence to statutory obligations and established best practice in information governance. In context • A Private Members’ Bill to the Scottish Parliament was introduced in June 2025 proposing reforms to FOI legislation. If enacted, these provisions could have implications for current council FOI procedures. Key proposals include - reforming the FOISA duty to publish information, introducing a statutory requirement to appoint a designated FOI Officer, pausing (rather than resetting) the 20-day-working day response timeframe when clarification is required, strengthening enforcement measures to enable prosecutions if information is deliberately destroyed to prevent disclosure under FOI. The Bill is currently under consideration by the Standards, Procedures, and Public Appointments Committee, which will examine and report on its provisions. • In parallel, the Scottish Government has committed to revising the Section 60 Code of Practice on FOI and EIR. The Scottish Information Commissioner has provided input on potential improvements, and a consultation (including local authorities) is anticipated. Any changes to legislation or the Code of Practice will be reported to future meetings of the Finance and Resources Committee. • To further enhance the council’s FOI operations, a review of the service is proposed. This review will address challenges associated with increasing volumes and complexity of requests and identify opportunities to improve efficiency. Balanced • Key performance highlights from 2024/25 include: - High compliance - 1,710 responses issued on time, with only 19 late responses. - Transparency and disclosure - 707 requests (41%) resulted in full disclosure of information, with a further 582 (34%) partially disclosed. - Growing review requests - 43 internal reviews were requested (2.4% of total), up from 25 in 2023/24, although still below the national average of 3%. - Continuous learning - the council was not subject to any practice recommendations or enforcement actions from the Scottish Information Commissioner and continues to benchmark well against other Scottish local authorities. • Information requests cover a broad spectrum of subjects, reflecting the diverse interests of applicants. Under the legislation, requestors are not required to state a reason for seeking information, nor must they be resident in Scotland or the UK. To make a valid request, only a name and contact address (including e-mail) is needed. These provisions are designed to ensure an applicant- and purpose-blind process, meaning that access to information cannot be granted or denied based on who the applicant is or the reason for their request. • Requests came from a diverse range of applicants. Common types of requests received and the categories of requestors making them are - businesses and organisations looking for information on contracts or tenders, individuals looking for information to support a complaint or ongoing query with the council, and political researchers and journalists seeking to compare data across public authorities. • Information requests often reflect the wider media agenda, with regular submissions being linked to local or national news stories, for example, notable themes in 2024/25 included school transport, the ban on pavement parking, XL bully dogs, and the provision of electric vehicle charging infrastructure. • The report also sets out improvement activity, including closer collaboration with services, training, and proactive publication of frequently requested information to reduce request volumes. The aforementioned comprehensive review of FOI and EIR processes will seek to further strengthen response quality, reduce review volumes, and improve co-ordination across the organisation. Report title Summary Local child poverty action report 2024/25 October 2025 Attached to the report, which was submitted to the Wellbeing and Tackling Poverty Committee in October 2025, is the Local Child Poverty Action Report for 2024/25 which has been prepared, published, and submitted to the Scottish Government (in line with statutory requirements). The report demonstrates the work being carried out to achieve the goals set out in the Action Plan and introduces new actions to strengthen even further the delivery of the council’s commitment to tackling child poverty across council and partner services. Aligned Priority: • All priorities. Page 67 of 188
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Ambition statement: • All ambition statements. Consistent • In North Lanarkshire, the Tackling Poverty Strategy 2023-26 (approved by Policy and Strategy Committee in September 2023) continues the approach of incorporating the Local Child Poverty Action Report (Action Plan), aligning both Plans into the same lifespan from 2023 to 2026. Both the local authority and NHS Lanarkshire have agreed that the Local Child Poverty Action Reports should be an integral part of the overall strategy enabling also the statutory duty to report to the Scottish Government on an annual basis (recognising that child poverty is integrally linked with poverty and wellbeing within the wider community). To support reporting and measuring impact amongst targeted groups, the action plan details which strategy / plan each action relates to, identifying those actions that are specifically aimed at child poverty priority groups. Transparent • Under the Child Poverty (Scotland) Act 2017, local authorities are required to prepare and publish annual Local Child Poverty Action Reports which report on measures taken and proposed to contribute to child poverty targets, income maximisation measures for pregnant people and families with children, and measures for families whose income/expenditure is adversely affected because of protected characteristics. Beyond these requirements, the process and content of reporting is at local leads’ discretion. Reports also require to be submitted to the Scottish Government and guidance is available which sets out how to meet the Act’s statutory requirements; this supports local child poverty leads with recommendations and resources for effective reporting, with a focus on the drivers of poverty and the priority family groups. • The council has a dedicated web page for tackling poverty and this ensures that the North Lanarkshire Local Child Poverty Action Report is made publicly available each year when it is produced. In context • The report sets out the national and local context. This includes the overall child poverty profile within North Lanarkshire which has seen an improvement, with child poverty rates dropping from 26.6% to 24.9%. These positive changes are welcome in North Lanarkshire, with the work reported throughout Local Child Poverty Action Reports and other factors such as economic growth and investment in social policies and initiatives contributing to this improvement. • While there has been an improvement in the latest child poverty figures, North Lanarkshire still has one in four children living in poverty and the poverty profile of North Lanarkshire is varied across all local communities, with locality analysis undertaken in early 2025 showing child poverty figures ranging from 11.4% in areas within Cumbernauld to as high as 32.2% within Bellshill. Balanced A high level summary of the contents of the Child Poverty Action Report is noted below: • The council’s approach aligns with the Scottish Government’s six priority family types which are recognised as being at the highest risk of child poverty - lone parent families, families where a member of the household is disabled, families with 3 or more children, families with a child under 1, families with a mother under 25, and minority ethnic families. The position for North Lanarkshire in this respect is as depicted on the right. • Appendix 4 to the Child Poverty Action Report sets out the child poverty Action Plan and summarises the outcomes achieved for 2024/25 against each action, as well as the measures used for monitoring. • The appendix updates on delivery of the tackling poverty drivers (which aim to increase income via employment, reduce the cost of living, and increase income via social security benefits), as well as holistic supports (such as a cash first approach to tackling food poverty and inequality and the whole family support here and now service). Feedback from young people, their families and social work staff has also been incorporated. • The report also provides information in respect of the work of the North Lanarkshire Children’s Services Partnership and integration of the requirements of the UN Convention on the Rights of the Child (UNCRC). Report title Summary Performance in complaints handling • Complaints are a valuable source of feedback for the council as the information can be used to identify areas of improvement in terms of service delivery or more efficient ways of working; the information can also be an early warning of areas of concern. Page 68 of 188
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November 2025 • The Scottish Public Services Ombudsman (SPSO) have established a Local Authority Model Complaints Handling Procedure (LAMCHP) which defines the two-stage process that the council is required to implement when handling all complaints received. A key aspect of this procedure is the supporting complaints governance arrangements in terms of reporting and publicising complaints information that includes performance statistics, trends and outcomes, and actions taken to improve services. • The report provided the Audit and Scrutiny Panel with an update on the performance of the council in complaints handling in line with the Panel’s role to provide independent review of the council’s governance, risk management, performance, and control frameworks. Aligned Priority: All priorities. Ambition statement: All ambition statements. Consistent • The report sets out background to complaints handling in public bodies as the process for handling complaints made to public bodies is defined by various sector specific Model Complaints Handling Procedures. These were developed by the Scottish Public Services Ombudsman (SPSO) in partnership with the respective body and in line with legislative requirements which arose from the Scottish Public Services Ombudsman Act 2002. • The SPSO published the most recent version of the LAMCHP in April 2021. This applies to all local authorities and all local authority services. It also applies to all services provided by a health and social care partnership on behalf of a local authority. • The SPSO has a wide remit, covering a variety of functions and services. The Ombudsman’s powers and duties come (predominantly) from the Scottish Public Services Ombudsman Act 2002, within which there are four distinct statutory functions; this includes: - The final stage for complaints about most devolved public services in Scotland - including councils, the health service, prisons, water and sewerage providers, Scottish Government, and universities and colleges. - Specific powers and responsibilities to publish complaints handling procedures and monitor and support best practice in complaints handling. - Independent review service for the Scottish Welfare Fund with the power to overturn and substitute decisions made by councils on community care and crisis grant applications. - Independent National Whistleblowing Officer (INWO) for the NHS in Scotland, final stage for complaints about how the NHS considers whistleblowing disclosures and the treatment of individuals concerned (from April 2021). Transparent The report defines the two stage Local Authority Model Complaints Handling Procedure (LAMCHP) which came into effect in April 2013 which the council operates, and the latest performance achieved in complaints handling in line with the model. • Stage one - frontline resolution which seeks to resolve complaints at the initial point of contact, or as close to the point of service delivery, as possible. • Stage two - for complaints unable to be resolved at the frontline or for those that are complex, serious, or high risk and require more in-depth investigation. In context • Complaints are a valuable source of information about services which help to identify recurring or underlying problems and areas for improvement. • A key aspect to the Local Authority Model Complaints Handling Procedure is complaints governance in terms of reporting and publicising complaints information that includes performance statistics, trends and outcomes, as well as improvements and lessons learned. In this respect, the Statement of Principles (depicted on the right) sets out the principle of learn and improve as it specifically relates to performance data, changes or improvements implemented as a result of complaints received, or for action to be taken to reduce the risk of recurrence. • The analysis of the council’s performance in complaints handling is an initial deep dive that seeks to use the findings to identify trends and patterns in the data. These findings will be further examined through the cross council Corporate Complaints Group to ensure that processes are working as efficiently as they can be and/or to identify areas for improvement. The analysis covered by this report covers the years from 2013/14 (when the new two stage procedure came into place) up to the end of the 2024/25 financial year. However, as noted in Appendix 2 implementation of the new system in 2021/22 expanded the services captured and enhanced functionality meaning that care should be taken when comparing the data for 2021/22 onwards with previous years as calculations within the two systems have differed. For this reason, and to focus the analysis further on recent trends, future reporting to the Audit and Page 69 of 188
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Scrutiny Panel from 2026 will only reflect data from 2021/22 onwards. Balanced • The report has a detailed appendix which sets out the council’s performance in handling complaints for complaints closed at (a) stage one and (b) stage two. This shows performance in relation to the volume, outcome, responsiveness, timeliness, and root cause in terms of complaints handling. This includes a comparison which shows that the council closed 10.3 complaints per 1,000 population which is less than the national average across Scotland of 11.5 per 1,000 population. • Over the years various changes or improvements have been made to ways of working to ensure complaints of a similar nature do not recur and some of the most recent examples are included in an appendix to the report. • The report also includes next steps to ensure complaints continue to support efficient ways of working and inform improvements to services and therefore summarises the work programme in this respect. Report title Summary Revenues and benefits update November 2025 This report provides a regular update on the payment performance for the administration and collection of all local taxation in North Lanarkshire in the form of council tax and non-domestic rates as well as the administration of a range of benefits for the residents of North Lanarkshire (including housing benefits, council tax reduction, Scottish welfare fund, discretionary housing payments, free school meals, clothing grants, and blue badges). It provides an update on performance as at 30th September 2025. Aligned Priority: • Improve North Lanarkshire's resource base. Ambition statement: 21. Continue to identify and access opportunities to leverage additional resources to support our ambitions. Consistent • Produced quarterly, this report provides detailed in-year performance figures which can be compared to the same period in previous years. Transparent • The year to date performance set out in the report covers a wide range of service activities as well as the amount of funding paid out to help households in need in order to provide a safety net for local people on low incomes. • The report also allows for comparisons of performance with the same period in previous years. In context • The report includes the latest context within which the service is operating; this is of particular relevance given the aforementioned administration of grants and support payments required for low income households. The report also advises of any new national grants when they are introduced, or will cease, and the qualifying conditions for receipt of such. • Specific context is also provided in relation to Discretionary Housing Payments (DHP) and the Scottish Welfare Fund (SWF), along with grants allocated to the council and paid through these supports. Balanced The report provides a high-level summary of the highlights which includes: • As at 30 September 2025, 55.41% of council tax due for 2025/26 had been collected. This is a marginal decrease of 0.18 percentage points from the same period in the last financial year. • Non-domestic rates collection at 30th September 2025 is 42.58% of the total annual charge which is slightly lower that the same period in the previous financial year (42.91%). • The service continues to meet statutory timescales for administering benefits applications and changes of circumstance. The latest performance shows this to be an average of 15 days for new claims (lower than the DWP processing target of 30 days) and 10 days for changes of circumstances (lower than the DWP processing target of 16 days). In addition, during 2025/26: • The SWF has seen a decrease in demand for Crisis applications of 8.8% and a decrease in demand for Community Care Grant (CCG) applications of 29.1%. Although this appears a significant reduction in CCG applications, after taking account of the current outstanding applications still to be assessed, Page 70 of 188
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the decrease in demand is 9.9%. The decline in SWF application volumes during 2025/26 appears to be influenced by a combination of policy, awareness, accessibility, and broader socio-economic factors. The continued application of high priority criteria will likely maintain this trend. • The service strives to assess applications within the timescales outlined within Scottish Government guidance. Throughout the period reported, the service has largely continued to assess Crisis applications within the two working day time limit. It has been more challenging to meet the 15 working day time limit for CCGs with the service currently assessing applications outwith that timeframe, however, the service fast-tracks applications linked to homelessness to support the wider Rapid Rehousing and Homes First strategies. Report title Summary Financial monitoring report - council summary (revenue) November 2025 This report updates on the overall financial position for the General Fund Account, Housing Revenue Account, and Adult Health and Social Care. (Note, the Council set its Revenue Budget and Council Tax for 2025/26 and provided a forecast Revenue Budget position for financial years 2026/27 and 2027/28 at the committee meeting in February 2025). Aligned Priority: • Improve North Lanarkshire’s resource base. Ambition statement: 21. Continue to identify and access opportunities to leverage additional resources to support our ambitions. 25. Ensure intelligent use of data and information to support fully evidence-based decision making and future planning. Consistent • The report at each financial period end consolidates the budget monitoring position of all council services into one council summary, highlighting and explaining major variances as per the council’s approved Financial Regulations. • The November 2025 report presents the council’s revenue monitoring position for the financial year to 31st March 2026 as at the end of period 6 (12/09/25). Transparent • The report highlights and explains major variances as per the council’s approved Financial Regulations. The Financial Regulations require services to remain within their approved budgeting provision, and to report all significant deviations - defined as the higher of £100,000 or 5% - within their budget monitoring reports. • Following Committee agreement, this report provides financial performance information in relation to the council’s Arm’s Length External Organisations (ALEOs) (i.e. North Lanarkshire Properties, Fusion Assets Limited, and Routes to Work Limited). In context • All activities undertaken by the council are subject to risk, and in acknowledging the council’s approved Risk Management Strategy, services manage these as part of their overall corporate and service planning processes. The November 2025 report states that the current economic climate and pay and non-pay inflation, continuing at historically high levels, are some of the key factors that have the potential to impact on the council’s ability to provide quality services within approved budget levels. Balanced • Where significant deviations are identified, services must provide explanatory commentary, outline the action required to rectify such deviations and, where relevant, highlight the impact this has on other budget headings. This information is captured by Finance and summarised in the overall council report. • A summary by division for the period ending 12/09/25 (P6) is included in an appendix to the report, as is a note of anticipated commitments against earmarked reserves, and availability of general fund balances. Report title Summary Financial monitoring report - council summary (capital) November 2025 This report provides an update on the 2025/26 resources and expenditure for the council's Strategic Capital Investment Programme. The report also shows the 2025/26 projected outturn position and the resultant variances. (Note, the Strategic Capital Investment Programme for 2024/25 to 2028/29 was approved by Policy and Strategy Committee in March 2024 and an annual update was provided in March 2025.) Page 71 of 188
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Aligned Priority: • Improve North Lanarkshire’s resource base. Ambition statement: 21. Continue to identify and access opportunities to leverage additional resources to support our ambitions. 25. Ensure intelligent use of data and information to support fully evidence-based decision making and future planning. Consistent • The report at each financial period end consolidates the capital monitoring position of all council services into one council summary. • The November 2025 report summarises the overall council Strategic Capital Investment Programme for 2025/26 in relation to resources and expenditure and the 2025/26 projected outturn position and resultant variances. Transparent • The report notes that Strategic Capital Investment Programme 2024/25 to 2028/29 was approved at Policy and Strategy Committee in March 2024 with an annual update provided in March 2025. It represents the total Community Investment Programme incorporating the General Services Capital Programme and HRA Capital Programmes. • The programme was developed in conjunction with services and led by the Strategic Capital Delivery Group (SCDG) using the principles established by the council’s Capital Strategy. In context • The report states that the General Services Capital Programme supported by General Services resources demonstrates to communities that the place making vision for towns remains a priority, and that the approved 5-year capital investment plan supports delivery of The Plan for North Lanarkshire. • The programme includes additional investment in Town and Community Hubs, the City Deal programme, and external grant funding. In addition, the Housing Revenue Account (HRA) resources support several HRA Capital Investment Programmes including the mainstream programme for investment in the council’s existing estate and delivery of the ambition for additional supply through the new build and council buyback programmes. Balanced • The report notes the current financial position in respect of the 2025/26 General Services Capital Programme and the Housing Revenue Account. This reflects the approved budget and subsequent decisions made at the Strategic Capital Delivery Group (SCDG) in accordance with the SCDG terms of reference, and where appropriate either by the individual service committees, Finance and Resources Committee, or the Policy and Strategy Committee (as per the Scheme of Administration). • A breakdown of the overall 2025/26 budget by service programme and associated approved budget movements is included in an appendix to the report. • In acknowledging the risks, the report recognises that the capital programme continues to face challenges in relation to the wider economic climate, linked to availability of materials, contractors, and inflationary pressures. These are managed by services and Project Boards associated with specific programme delivery and will continue to be monitored throughout the year in accordance with the Strategic Capital Delivery Group (SCDG) Terms of Reference. Key to RAG status green Performance is on target and/or within acceptable thresholds red Performance does not meet target and is outwith acceptable thresholds blue Performance surpasses the target and exceeds expectations Page 72 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref RB/CC/SL Date 04/03/26 Project Management Framework quality assurance - annual report From Carolynne Coole, Acting Chief Officer (Strategy and Engagement) Rachel Blair, Chief Officer (Legal and Democratic) E-mail CooleMillerC@northlan.gov.uk BlairR@northlan.gov.uk Telephone Executive Summary As the Audit and Scrutiny Panel are aware, the Programme of Work is key to delivering the shared ambition set out in The Plan for North Lanarkshire. To date it has collectively facilitated a co-ordinated approach to successfully delivering a wide range of programmes, projects, and large-scale transformational activities, including the council’s capital investment programme. Many individual projects (and projects that form part of wider programmes) support delivery of the Programme of Work and to deliver successful investment and transformation the council needs to ensure plans are well-designed and well-executed. Good project management arrangements and good governance therefore go hand in hand as essential components to ensure investment is well-directed, delivered to time, cost, and quality targets and the expected benefits and improved outcomes are realised. As such, delivery of The Plan for North Lanarkshire is subject to Quality Assurance arrangements in line with the corporate Project Management Framework. These arrangements have been aligned to the governance supporting the Programme of Work to ensure the council can (a) demonstrate compliance with the Project Management Framework, and (b) monitor delivery of programmes, projects, and activities supporting the Programme of Work. Good practice recommends that a council's audit and scrutiny committee play an important role in providing independent assurances about the delivery of major programmes and projects. As such, a report to the Panel in February 2024 provided an initial overview of the Quality Assurance arrangements for the Panel’s information. This was followed in February 2025 by the first annual report to support the Panel in carrying out their strategic oversight and assurance role. At that time a commitment was made to provide an annual report to the Panel to ensure ongoing oversight in this respect. A high level summary of the latest position (as at January 2026) is therefore set out herewith in this year’s annual report. Recommendations It is recommended that the Audit and Scrutiny Panel: Item 7 Page 73 of 188
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1. Background 1.1 The Audit and Scrutiny Panel are well versed in The Plan for North Lanarkshire and its delivery through the Programme of Work which brings together strategic planning and community investment in a cohesive manner and in a way that has established solid foundations for the place-based approach to transforming North Lanarkshire. 1.2 With the approval of the five-year Programme of Work to 2028 at the Policy and Strategy Committee in March 2023, and the subsequent Delivery Plan in September 2023, a clear set of deliverables were established to support the delivery of the seven Programme of Work priorities from 2024/25 onwards. 1.3 This Delivery Plan (which was presented to the Policy and Strategy Committee in March 2024) includes a wide range of programmes, projects, and activities that are considered critical to delivering the vision of The Plan for North Lanarkshire. To deliver successful investment and transformation, the council needs to ensure delivery plans are well- designed and well-executed. As such, good project management arrangements and good governance go hand in hand as essential components to ensure investment is well-directed, delivered to time, cost, and quality targets and the expected benefits and improved outcomes are realised. Delivery of The Plan for North Lanarkshire is therefore subject to Quality Assurance arrangements in line with the corporate Project Management Framework. 1.4 An initial overview of the Quality Assurance arrangements was reported to the Audit and Scrutiny Panel in February 2024. This also set out the strategic oversight and assurance role of the Panel in terms of fulfilling good practice requirements in project management which recommends that a council's audit and scrutiny committee have an important role to play in providing independent assurances about the delivery of major programmes and projects. 1.5 The Panel’s role in this respect is therefore to be assured that suitable review procedures have been adopted, and that the independent reviews undertaken during a project’s life cycle are adding value. A subsequent report in February 2025 provided the first annual assurance report to support the Panel in carrying out their role, with a commitment to present an annual report to the Panel thereafter. 1.6 In the interim, the outcome of the external auditors Best Value thematic review of Transformation was reported to the Panel in September 2025. Areas of good practice highlighted in this report included the “effective governance arrangements in place” to (1) Acknowledge the rolling review programme now well established to support the Quality Assurance arrangements, (2) Note the analysis of the latest position as at January 2026 which provides assurances that the council has adopted suitable review procedures and the independent reviews being undertaken during a project’s life cycle are adding value, and (3) Note the role of the Panel set out of the next steps (in paragraphs 2.6 and 2.7) to support ongoing oversight and assurance. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 74 of 188
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oversee the transformation of North Lanarkshire through the Programme of Work. The Quality Assurance processes set out in this report herewith are integrated within the Programme of Work’s governance. 1.7 This report herewith provides the Panel with an annual update on the position as at January 2026 in respect of the Quality Assurance arrangements and rolling review programme in place to assess compliance with the Project Management Framework. 2. Quality Assurance compliance assessment - summary as at January 2026 Quality Assurance arrangements 2.1 Established in 2024, the Quality Assurance arrangements have been aligned to the governance supporting the Programme of Work to ensure the council can: (a) Demonstrate compliance with the Project Management Framework. (b) Monitor delivery of programmes, projects, and activities supporting the Programme of Work in line with the dimensions within which delivery requires to be achieved, i.e. scope, quality, time, cost, resources, risk, and completed status. 2.2 The Quality Assurance arrangements in respect of paragraph 2.1(a) are supported by a rolling review programme which assesses individual projects on each Chief Officer’s Project Register. Key aspects of this process include: • Project Registers - each Chief Officer is required to maintain a register listing projects within their area of responsibility that are following the Project Management Framework. Registers require to be reviewed and updated (if required) twice a year. • A rolling review programme - this maintains a record of all projects from each Chief Officer’s Project Register as well as their status (whether completed or live), whether they have undergone a quality assurance review (and, if so, the type of review, project life cycle stage at which point the review was undertaken, the RAG outcome, any improvements identified through the review, the next check-in point, and/or if any follow up review is required). As a live and rolling review programme, this provides a moment in time picture of the status for each project subject to the Quality Assurance arrangements. • Assessments - four types of reviews (see Appendix 1) are used to support the Quality Assurance arrangements. The timing of when a Review takes place is informed by the estimated start and end date of a project to ensure that it is at a suitable stage in its lifecycle in order to provide the information required to support meaningful assessment. Other factors are also taken into account (as noted in Appendix 1) to ensure the review process is managed efficiently and effectively. • Assessment statements - a set of assessment statements (see Appendix 2) have been established to use when undertaking either a Baseline or Check-In Review. This consists of five sections (A to E, aligned to the five stages in a project’s life cycle as per the Project Management Framework) and 30 assessment statements. This ensures a consistent approach across all projects being assessed and allows for improvements to be specifically captured by section and also over time for those projects which have progressed from a Baseline to a Check-In Review. 2.3 To monitor delivery of programmes, projects, and activities supporting the Programme of Work in line with the dimensions within which a project requires to be delivered (as noted in paragraph 2.1(b), a six monthly update is reported to the Policy and Strategy Committee. This supports their strategic oversight role of the overall Programme of Page 75 of 188
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Work in relation to the “development, co-ordination, and monitoring of The Plan for North Lanarkshire” and in respect of keeping under review such “programmes as the Committee considers necessary to achieve the council’s long-term aims and objectives”. The most recent report in this respect was considered by the Policy and Strategy Committee in September 2025 (link) and an update is scheduled for reporting in cycle 1 of 2026. Quality Assurance process - latest assessment position and results 2.4 As noted in the annual quality assurance report to the Panel in January 2025, 132 projects from Chief Officer’s Project Registers were subject to the initial Quality Assurance compliance assessment which comprised a Baseline Review. The position as at January 2026 compared to January 2025 shows that: 1. 23 new projects were added to Chief Officer’s Project Registers and the review programme. 3 of these new items have subsequently completed a Baseline Review, 5 are underway, 4 have a 2026 review date scheduled, and for 11 the review timeline has still to be confirmed. - Of the Baseline Reviews completed, the resulting RAG assessment showed 92% were Green, with 8% Red in respect of section D (delivery and ongoing management and monitoring). This has subsequently been added to the respective Chief Officer’s improvement plan. 2. 14 Check-In Reviews were completed during 2025 and, so far, 8 are scheduled to be completed early in 2026. Further Check-In Reviews will be identified as the year progresses and updates are made to the review programme. - 92% of projects completing Check-In Reviews had reached stage D in their lifecycle, with 8% of these reaching the final stage E (project closure). The resulting RAG assessment showed 67% Green, 15% Amber, and 18% Red. Items identified as Amber and Red were mainly due to evidence not being provided to substantiate a response to an assessment statement. - As noted in the report to the Panel in February 2025, very little was able to be ascertained from the final section of the compliance statements (i.e. E, project closure) given the small number of projects that had reached this particular project lifecycle stage. While this has increased over the year, there remains gaps in assurance in relation to project closure (including post project evaluations). As such, this has been identified by Internal Audit as an area for review as part of the 2025/26 audit programme. 3. 34 items were removed from Project Registers, and therefore the review programme, for the following reasons: - They were not considered a project in line with the definition of a project as set out in the Project Management Framework and were in fact considered to be business-as-usual. This helped to rectify findings reported to the Panel in February 2025 which identified inconsistencies in the level of understanding in terms of potentially what was, and was not, classified a project. - Items were duplicated across Chief Officer’s Project Registers - discussions in respect of each Chief Officer’s improvement plan ensured that moving forward each project on a Project Register is discrete. This will avoid collecting duplicated or inconsistent information through the assessment process and adding to delivery resource pressures. 4. There were 52 projects where delivery was completed during the year and these no longer remain on the review programme as at January 2026 (see Appendix 4). All of these were subject to at least the minimum assessment level of a Baseline Review and the corresponding improvement actions identified through this process were captured in the respective Chief Officer’s improvement plan so that the Page 76 of 188
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lessons learned aspect could be carried forward (where applicable) and improved upon in the management and governance of future projects. 5. 71% of the 69 projects on the review programme as at January 2026 have undergone at least a Baseline Review, with the remaining 29% relating to new items added to Project Registers where work is underway to schedule in a Baseline Review for each. 6. As part of the analysis undertaken on the Baseline Reviews reported to the Panel in February 2025, an aggregated RAG status was calculated to provide the overall council baseline compliance position. This has subsequently been updated in line with the January 2026 position, and the latest overall RAG status is depicted in the graph on the right. - This shows improvement over the year particularly in relation to an increase in the proportion of assessments resulting in a Green RAG status and a corresponding decrease in the proportion of assessments resulting in either an Amber or a Red RAG status. - This position will remain under review as part of the rolling review programme and be calculated and reported annually to assess continuous improvement in this respect. Improvement plans 2.5 Following the initial Baseline Review process, the outcome of which was reported to the Panel in February 2025, areas identified as requiring improvement were twofold: 1. Corporate improvements that are common across the organisation - to record and manage implementation of these, a Corporate Improvement Plan was established. A progress update as at January 2026 in respect of implementing the actions on this plan is contained within Appendix 3. 2. Project / service specific - to implement these improvements, a set of Improvement Plans were established for each respective Chief Officer. These have been monitored quarterly throughout the year and updated as required in line with 1:1 discussions with Chief Officers and outcomes arising from the rolling review programme assessments. - As at January 2026, these improvement plans comprise 68 actions and 75% of these have been implemented and are complete. - The remaining 25% are live and underway and relate to implementing project specific improvements arising from a review, the scheduling of new Baseline and/or Check-In Reviews, 1:1 project specific guidance requests, and meeting attendance requests to raise further awareness and understanding of the Quality Assurance arrangements and Project Management Framework. Next steps 2.6 While the role of overseeing various components of major programmes and projects sits with the respective Service Committee, good practice (as noted in the Project Management Framework) recommends that a council's audit and scrutiny committee Page 77 of 188
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has an important role to play in providing assurances about the delivery of these. The Audit and Scrutiny Panel will therefore continue to be supported to carry out their key strategic oversight and assurance role through an annual update on the latest position in respect of the Quality Assurance arrangements and rolling review programme in place to assess compliance with the Project Management Framework. 2.7 The Quality Assurance arrangements set out in this report contribute to the work programme for the Scrutiny function of the Audit and Scrutiny Panel to ensure an ongoing independent strategic oversight and assurance process. This is reflected in the Scrutiny Work Programme annual update also reported to the Panel in cycle 1 each year. 3. Measures of success 3.1 Measures of success will be evidenced through: • Progress being made to implement the projects on the Register to support delivery of the Programme of Work in line with good project management and good governance. This will in turn contribute positively to effectively achieving the long- term vision set out in The Plan for North Lanarkshire (as demonstrated through the 28 Health Check Indicators). • Ongoing assessment through the Quality Assurance review programme to ensure projects on Registers can demonstrate compliance with the Project Management Framework. As quality is a critical success factor in project delivery - the higher the quality level, the more likely a project will meet its aims and realise the benefits and/or improved outcomes it set out to achieve. 4. Supporting documentation • Appendix 1: Quality Assurance - process to assess compliance with the Project Management Framework. • Appendix 2: Quality Assurance - compliance assessment statements. • Appendix 3: Quality assurance - corporate improvement plan update as at January 2026. • Appendix 4: Quality Assurance - rolling review programme. Carolynne Coole Acting Chief Officer (Strategy and Engagement) Rachel Blair Chief Officer (Legal and Democratic) 5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Page 78 of 188
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Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The legal impact in this report is only in relation to supporting demonstration of the council’s compliance with the relevant legislation listed below. It does not introduce new legal duties or changes to the council’s statutory duty in this respect. • The Local Government in Scotland Act 2003 which introduced the duty of Best Value; this requires that councils “make arrangements to secure continuous improvement in performance”. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ Page 79 of 188
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If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Ensuring ongoing implementation of the Quality Assurance arrangements, and its supporting review programme in terms of assessing compliance with the Project Management Framework, contributes towards mitigating the risks on the Corporate Risk Register for (a) delivery of the approved programme of work, and (b) governance, leadership, and decision making. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 80 of 188
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Appendix 1 Quality Assurance - process to assess compliance with the Project Management Framework Project Management Framework / Programme of Work governance extract Introduction Good practice recommends that quality assurance activities are in place to establish a systematic process of reviewing the documentation and methods adopted by a project and verifying that they are meeting the intended quality standards. As one of the dimensions in which a project requires to be delivered (i.e. scope, cost / budget, quality, resources, risk, time / schedule), quality is a critical success factor in project delivery - the higher the quality level, the more likely a project will meet its aims and realise the benefits and/or improved outcomes it set out to achieve. A quality assurance process can also help to identify potential risks arising from the way a project is being managed and/or governed, and it can increase the confidence of stakeholders by providing the assurances that there is a serious commitment to produce a high-quality deliverable. It also provides assurances that project plans are well-designed and well-executed, and that good project management and good governance arrangements are in place to ensure investment is well- directed, delivered to time, cost, and quality targets, and the expected benefits and improved outcomes are realised. Project delivery As quality assurance is a continuous improvement process that systematically verifies project deliverables, Quality Assurance arrangements have been established in accordance with the council’s Project Management Framework to support the delivery of individual projects as well as the wider Programme of Work. Through a rolling review programme, this aims to provide the relevant assurances that projects are performing in line with organisational requirements and project decisions, and will (where applicable) produce a formal output to serve as the basis for implementing corrective actions. Critically, assessments undertaken through the rolling review programme will assess each project’s compliance with the Project Management Framework. The contents of the Quality Assurance rolling review programme, and the timings of each review to be undertaken therein, is informed by the Project Registers which each Chief Officer is required to maintain. Aligned to the five stages in the fundamentals of good project management the type of quality assurance review to be undertaken will be conducted in line with the implementation of the mandatory tasks and advanced recommended practice set out in the Project Management Framework, and with due consideration of the type, size, and complexity of a project, what the project aims to achieve, the project’s deliverables, and the requirements of any related industry standards. Other factors are given due consideration of the need for, and timing of, each review. As such assessment of each project is carried out on a case by case basis with a common sense judgement applied to ensure best use of resources across the organisation and all relevant factors and impacts are taken into account. This assessment therefore also takes into account all information known at the time, for example the project life cycle stage at the time when Reviews are to be scheduled, duration of a project (whether short, medium, or long-term), size and scale of project (e.g. large scale high-cost or small scale low-cost), type (such as construction or involving people), complexity (whether a partnership approach to delivery is required or significant legal input is needed), delivery mechanism (e.g. wholly by the council or through a contract management approach), and any risks to the council should partial or non- compliance be the findings. This common sense judgement also considers what the project aims to achieve and the wider programme / service / council environment within which the project requires to be delivered. A matrix is in place to guide the process. Compliance assessment Four types of reviews have been established to support the rolling review programme of each Page 81 of 188
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project’s compliance with the Project Management Framework: (1) Baseline Review - undertaken once (as at a point in time) to establish the baseline information that will be used to assess compliance and identify areas requiring improvement. All new projects on a Project Register undergo a Baseline Review as the first step. The timing of when a Baseline Review takes place is informed by the estimated start and end date of a project to ensure that it is at a suitable stage in its lifecycle in order to provide the information required to support meaningful assessment. This is a self-assessment to be completed by the respective Project Manager. This assessment aligns to the lifecycle of a project and includes a focus on implementation of the mandatory tasks and advanced recommended practice (as set out in the Project Management Framework). The findings from Baseline Reviews informs the need for, and frequency of, subsequent Check in Reviews or Deep Dive Reviews. (2) Check In Review - undertaken either during a project or after a project closes. The need for this type of review (and timing and frequency) is informed by the Baseline Review and is therefore likely to be dependent on the type, size, complexity, and duration of a project, what the project aims to achieve, the project’s deliverables, and the requirements of any related industry standards. The RAG status and the risk to the council of any improvements arising from a Baseline Review will also contribute to the need for, and timing of, a Check-In Review. (3) Deep Dive Review - if the outcome from a review at (1) and/or (2) demonstrates significant non-compliance then a Deep Dive Review will be programmed to be undertaken. This will focus on the areas of non-compliance from the previous review(s) to identify the root cause of the specific issue(s) that need to be addressed and the remedial action that requires to be implemented in order to ensure compliance moving forward. (4) Senior Management Team Review - where supported by significant concerns that can be evidenced, senior management teams can request ad hoc reviews of a particular project. The purpose of such a review would be to examine in-depth the identified issue(s) and ensure the outcome from the review adds value to what the council aims to achieve. Following a Baseline Review, outputs undergo an independent assessment, and each project is assigned an overall Quality Assurance (QA) Compliance Rating which reflects the moment in time assessment process: • Red QA Compliance Rating - a project, or specific aspects of a project, is considered at risk due to non-compliance with the Project Management Framework. • Amber QA Compliance Rating - a project, or specific aspects of a project, may be considered at risk, depending on the nature and significance of the review findings. • Green QA Compliance Rating - a project, or specific aspects of a project, are considered compliant with the Project Management Framework. It should be noted that a Compliance Rating arising from an assessment is only reflective of the moment in time when the assessment was undertaken and it also may not necessarily apply to a whole project. As the assessment is structured around the five stages in the fundamentals of good project management (A to E noted below), it could be, for example, that a project is non-compliant for only one assessment statement within one stage, but it is considered of sufficient risk in relation to good project management and good governance to merit an Amber or Red RAG assessment. Where a Compliance Rating is found to be Amber or Red, discussions are held with the respective Chief Officer and/or Senior Responsible Officer to identify any improvement actions which require to be implemented by the Project Manager. These actions are added to the respective Chief Officer’s improvement plan which is thereafter monitored on a quarterly basis at a corporate level to ensure implementation and that the specific aspect of a project moves to being wholly compliant with the Project Management Framework, or lessons learned are captured and implemented in future projects. It should also be noted that project management does not always follow a linear process and therefore these stages are not necessarily sequential. This may have an impact on the ability of some projects to complete the self-assessment form in a logical manner. Page 82 of 188
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• A - Baseline information about a project. • B - Project initiation. • C - Planning and set up. • D - Delivery and ongoing management and monitoring. • E - Project closure. Other considerations when reflecting on the outcome of any compliance assessment and the resultant RAG status include the following: • The first ever large-scale organisation wide Quality Assurance compliance assessments were undertaken on projects listed across all Chief Officer’s Project Registers and reported on in 2024/25. As such, 2025/26 represented the first full year of implementing the rolling review programme and the corresponding Chief Officer improvement plans. It is expected that implementation of the Quality Assurance arrangements will evolve and, as such, will remain under regular review to ensure these remain fit for purpose, but flexible, practicable, and able to add value to improving the management and governance of projects delivering the Programme of Work and The Plan for North Lanarkshire. • The operating environment and accountability structures of a local authority do not necessarily lend themselves to the practical implementation of project management in the same way as it would in a for profit organisation. For many managers across the council, project management is an add-on to their existing roles and responsibilities, i.e. they are required to assume more roles than just that of Project Manager when it comes to managing a project and this can add to the complexities of project management and project governance. • Projects on Project Registers are at varying stages in their life cycle and many have significant interdependencies and other internal / external requirements to be fulfilled, which add to the complexities of managing a project. As such the Quality Assurance arrangements do not constitute an audit; they are an independent high-level assessment of compliance with the Project Management Framework and therefore projects may be subject to further reviews by Internal Audit in line with their annual audit plan. Project registers Strategic oversight of projects that use the Project Management Framework helps to provide a single source of truth across the organisation (whether these are small scale short-term projects or large-scale transformational programmes, or capital investment programme activities). It also further supports good governance and good project management and promotes the sharing of good practice and lessons learned. As such, each Chief Officer is required to maintain a Project Register that lists the projects within their area of responsibility that use the Project Management Framework. For strategic governance and oversight purposes, Chief Officers must submit a copy of their Project Registers twice a year - as at the end of September and as at the end of March. The latter date corresponds to the submission of the annual Chief Officer Assurance Certificate and Checklist which provides a wide range of evidence in respect of the council’s governance arrangements to support production of the Annual Governance Statement. As a minimum, Project Registers should contain the following information: • The name of the project (and where it is part of any related programme). • Alignment to a Programme of Work (where applicable). • Expected start and finish dates. • Status, i.e. complete, in progress, at feasibility stage, etc. • Name of Senior Responsible officer (SRO). • Name of Project Manager (and Programme Manager, where applicable). • Governing Board or equivalent. Scrutiny Good practice recommends that a council's audit and scrutiny committee has an important role to play in providing assurances about the delivery of major programmes and projects. Such a Page 83 of 188
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committee is not a decision-making forum in this respect, and it does not replace any reviews undertaken by the Project Team or any independent reviews organised by a Board. Rather the role of such a committee is (a) to be assured that suitable review procedures have been adopted, and (b) to gain assurance about the value of independent reviews that are undertaken during the project life cycle. The role of the council’s Audit and Scrutiny Panel in this respect is therefore carried out in line with their terms of reference to provide “independent assurance to the council and those charged with governance on the adequacy of the council's risk management framework and internal control environment”. This strategic oversight of the council's governance, risk management, performance, and control frameworks (together with the annual governance processes) is central to ensuring effective scrutiny and delivery of statutory Best Value obligations. This means that the Quality Assurance arrangements that support the Project Management Framework form part of the work programme for the scrutiny function of the council’s Audit and Scrutiny Panel and are therefore subject to high level reporting to the Panel to support regular strategic oversight and assurance. Page 84 of 188
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Appendix 2 Quality Assurance - compliance assessment statements This comprises a form which contains various branching options: • Where specific questions have a drop down menu, this means the answer can only be one of the set of pre-defined options. • For questions where no, partially, don’t know are selected, further qualitative information is requested to substantiate the response. • If yes is selected for the mandatory documentation questions, then the documentary evidence must be submitted when submitting the questionnaire. If no, partially, or don’t know is selected, further qualitative information is requested to substantiate the response. A. Baseline Information about a Project Please advise the date you completed this assessment. 1. Please advise the current % completion status of the project. 1b. If you answered Other to question 1, please specify. 2a. Please advise the start date of project. 2b. Please advise the end date of project. 2c. Is start date an estimate or actual? 2d. Is end date an estimate or actual? 3. Please advise size of the project in terms of how much it has / will cost. 4. Please advise any industry standards that your project requires to comply with in relation to quality assurance. 5. Please confirm how many sections of this form you will be able to complete based on what stage (A to E) your project is at. B. Project Initiation 6a. Which methodology does the project use? 6b. If you answered Other to question 6a, please specify. 7a. Does the project have a Project Brief (or equivalent)? 7b. If you answered No, Partially, or Don't Know to question 7a, please advise why. 7c. If you answered Yes to question 7a, please provide a copy the Project Brief (or equivalent). 8a. Does the Project Brief (or equivalent) clearly outline what the project aims to achieve. 8b. If you answered No, Partially, or Don't Know to question 8a, please advise why. 9a. Have key risks been identified by carrying out a Position Risk Assessment (PRA)? 9b. If you answered No, Partially, or Don't Know to question 9a, please advise why. 10. Have all relevant stakeholders been identified, and has engagement been undertaken with them? 11a. Have all the required sign offs been attained before proceeding to the next stage of the project? 11b. If you answered No, Partially, or Don't Know to question 11a, please advise why. C. Planning and Set Up 12. Is there a Project Team in place and have they been fully briefed on the project and what it aims to achieve? 13. If a Project Team is in place, have their roles and responsibilities been made clear to them? 14a. Does the project have a Project Business Case (or equivalent)? 14b. If you answered No, Partially, or Don't Know to question 14a, please advise why. 14c. If you answered Yes to question 14a, please provide a copy of the Project Business Case (or equivalent). 15a. Does the project have a Project Plan? 15b. If you answered No, Partially, or Don't Know to question 15a, please advise why. 15c. If you answered Yes to question 15a, please provide a copy of the Project Plan. 16a. Does the project have structures in place to provide strong and effective oversight, challenge, and direction to you as the Project Manager? 16b. If you answered Yes to question 16a, please briefly outline the structures in place. 17. Have all the required sign offs been attained before proceeding to the next stage of the project? D. Delivery and Ongoing Management and Monitoring 18. Are key risks understood and regularly monitored throughout project delivery? Page 85 of 188
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19. Are risks and issues identified and regularly reviewed and addressed throughout project delivery? 20. Is there an effective mechanism in place to manage and control project changes? 21. Are the dimensions of the project sufficiently flexible enough to deal with unexpected impacts and/or changes in the internal operating context or the external environment? 22a. Is progress in terms of project delivery regularly monitored and assessed? 22b. If you answered Yes to question 22a, please advise frequency of reporting and audience(s). 22c. If you answered Yes to question 22a, please provide a copy of the Monitoring Report(s). 22d. If you answered Yes to question 22a, does monitoring include an ongoing review of project dimensions (i.e. scope, quality, time, cost / resources, and risk)? 23a. Is project performance being measured and monitored? 23b. If you answered Yes to question 23a, please provide an example of how this is undertaken. 24. Has the Project Business Case (or equivalent) continued to be reviewed and updated (as required) throughout the duration of the project? 25a. Have all relevant processes and decision been documented throughout the duration of the project? 25b. If you answered yes to question 25a, please list the main documentation that has been maintained. 26a. Has budget monitoring been undertaken on a regular basis? 26b. If you answered Yes to question 26a, please advise how and how often budget monitoring has been undertaken. E. Project Closure 27a. Has a post project evaluation been undertaken? 27b. If you answered Yes to question 27a, please provide a copy of the evaluation. 28a. Have lessons learned been captured and shared? 28b. If you answered No, Partially, or Don't Know to question 28a, please advise why. 28c. If you answered Yes to question 28a, please advise if lessons learned were captured throughout the project, or only at the project end, or a combination of both? 28d. If you answered Yes to question 28a, please provide copy of the lessons learned documentation. 29a. Has the overall success of the project been determined and have the benefits / improved outcomes been defined, captured, and reported? 29b. If you answered yes to question 29a, please advise who the benefits / improved outcomes were reported to. 29c. If you answered yes to question 29a, please provide a copy of the (i) benefits realisation register and (ii) report. 30. Does the project have a clear plan for transfer to operations / business as usual for when the project has been completed? Page 86 of 188
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Appendix 3 Quality Assurance - corporate improvement plan Update as at January 2026 Improvement actions / outcomes (reported to the Audit and Scrutiny Panel in February 2025) Position as at January 2026 Action 1. Undertake further engagement and awareness raising regarding future compliance requirements and lessons learned. Outcomes • Increased awareness across the organisation of the need for compliance with the Project Management Framework for projects on Project Registers. • Improved understanding and implementation of the areas of good practice / mandatory tasks and documentation (including post project evaluations) that need to be adhered to throughout the life cycle of a project (as set out in the Project Management Framework). • Initial engagement sessions were held with Chief Officers and their service / programme management teams in early 2025 (as appropriate) to share the initial quality assurance review results, discuss improvements arising, and cascade lessons learned. This included raising awareness of the overall corporate quality assurance arrangements and rolling review programme, and the need to demonstrate compliance with the Project Management Framework as well as the next steps in terms of implementing the review programme and an improvement plan for each Chief Officer. • Quarterly management and monitoring of the review programme and implementation of the actions on each Chief Officer’s improvement plan have been integrated within day-day to business activities around the Programme of Work and its supporting governance activities. Throughout 2025 quarterly meetings have been held with Chief Officers (where required) to discuss and review implementation of their improvement plan actions as well as to agree timescales for new projects added to the Register which require to undergo a Baseline Review, and timescales for Check-In and/or Deep Dive reviews. This ongoing engagement has ensured that processes supporting the review programme remain fit for purposes, but flexible and practicable and add value to improving the delivery and governance of projects that support achievement of the Programme of Work and The Plan for North Lanarkshire. • Short life lessons learned corporate working group established and chaired by the Chief Officer (Place) to enhance a one council process whereby lessons learned are captured, shared, and used. • Outputs from the lessons learned group are under development to establish an efficient one council approach to (a) capture lessons learned (through various already existing mechanisms, including project management documentation and the quality assurance review process), (b) publicise lessons learned (e.g. using a live and easily accessible format where information is categorised by relevant topics), and (c) make use of the subject matter expertise of the working group to review the collated information and identify common trends and wider improvements required to inform lessons learned that can be shared and applied across the organisation. • Quarterly monitoring reports to each Programme of Work Strategic Board have started to capture examples of lessons learned and this content will evolve as the work of the group is further developed. Action 2. Ensure take up of training is maximised and undertaken by all individuals managing projects, and/or provide tailored 1:1 support. Outcomes • Enhanced knowledge, skills, and abilities of employees carrying out a Project Manager or • Review concluded of staff who did / did not attend project management training during 2023 or 2024 against those listed as a Project Manager through the Quality Assurance review programme. This identified a gap list of individuals who had still to undergo the project management training and ensured a place was taken up by them in the 2025/26 training programme. The gap list was shared with Chief Officers who were also asked to nominate other suitable candidates to participate in the 2025/26 training programme. • The corporate training programme delivered five full day sessions throughout 2025/26, with all places on all sessions being fully taken up. • 1:1 tailored sessions were held with new Project Managers due to embark upon a project at the request of Page 87 of 188
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Improvement actions / outcomes (reported to the Audit and Scrutiny Panel in February 2025) Position as at January 2026 Senior Responsible Officer (SRO) role to support them to carry out their role effectively. • Increased awareness of the need to ensure good project management and good governance go hand in hand as essential components to ensure investment is well- directed, delivered to time, cost, and quality targets, and the expected benefits and improved outcomes are realised. specific Chief Officers. • Where the findings from a Baseline Review identified that a number of improvements were required - and that same Project Manager was about to embark on another new project - 1:1 discussions were held to highlight the lessons to be learned and improvements to be applied moving forward. • Work is underway to establish the corporate training programme for 2026/27 to ensure new Project Managers undertake the training and existing Project Managers take part in the training as a refresher every three years as a minimum requirement. Action 3. Undertake further reviews in line with the rolling review programme to ensure ongoing improvements to the overall council quality assurance RAG position. Outcomes • Ensuring ongoing compliance with the Project Management Framework to support efficient management and governance of projects delivering the Programme of Work. • Ensuring the Quality Assurance arrangements are aligned to, and integrated with, the overall governance arrangements for The Plan for North Lanarkshire and Programme of Work. • Enabling better alignment of strategy and delivery by supporting efficient operations and having clear lines of accountability and assurance, as well as facilitating early identification of emerging risks and issues. • Rolling review programme established and integrated within day-to-day activities around the Programme of Work and its supporting governance activities. Schedule of Baseline and Check-In Reviews agreed with Chief Officers for 2025/26 and carried out, with schedule updated for 2026/27 (as at January 2026) following the six monthly review and update to Chief Officer’s Project Registers. It should be noted that the majority of new projects added to Registers during 2025/26 were added in the latter part of 2025 so the scheduling of a number of Baseline Reviews is currently underway. • Monitoring of the rolling review programme continues quarterly to determine further reviews required and ensure the actions on Chief Officer’s improvement plans are implemented. As at each quarterly review point improvement plans are updated to include the as at date as well as the overall status (i.e. where actions are completed), and a version control summary is maintained that clearly records when and what changes are made to the improvement plans and the date of the next quarterly review point. • Projects on Project Registers are identified as requiring to undergo a review based on the four types of reviews listed in Appendix 1. The need for, and timing of, each project identified is assessed on a case by case basis and includes a common sense judgement to ensure best use of resources across the organisation and that all known relevant factors and impacts is taken into account. • All aspects of the council’s Quality Assurance arrangements for assessing compliance with the Project Management Framework are consolidated within the governance for the Programme of Work. Action 4. Review content of project registers to ensure resources are focussed on genuine projects (in line with the definition of a project) and improvement actions are focussed and add value accordingly. Outcomes • Extensive review and update of all Chief Officer’s Project Registers undertaken following the analysis of the initial 132 Baseline Reviews reported in January 2025 led to the subsequent development of Chief Officer improvement plans. These plans also captured improvements in respect of ensuring a clear and common understanding of the distinction between a project and business-as-usual. Using pre-developed guidance this ensured that moving forward projects on Project Registers were only those that followed the definition of a genuine project, not business-as-usual. • The differentiation between a project and business-as-usual was also reiterated, where required, in the engagement sessions held with Chief Officers and their service / programme management teams. Page 88 of 188
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Improvement actions / outcomes (reported to the Audit and Scrutiny Panel in February 2025) Position as at January 2026 • Ensuring the contents of Chief Officer’s Project Registers continue to meet the criteria of a project (in line with the definition set out in the Project Management Framework) and there is clarity and a common understanding in this respect. • To improve the validity of outputs arising from the Quality Assurance arrangements and ensure improvement actions identified add value to managing and governing delivery of the Programme of Work. • This continues to be an ongoing discussion at each six monthly review / update to Project Registers as Project Managers often seek further advice and guidance in this respect. Action 5. Ensure independent oversight, scrutiny, and assurances in terms of the delivery of the council’s major projects. Outcomes • Ensuring ongoing strategic oversight and transparency in respect of projects following the Project Management Framework and, by clearly defining their supporting governance and decision-making arrangements, ensuring these are followed during the lifecycle of the project. • An update in respect of the Quality Assurance arrangements in place to assess compliance with the Project Management Framework is provided to each Programme of Work Strategic Board every six months to remind them of their role in ensuring that management and governance arrangements for all corresponding projects (as listed on the respective Project Register) continue to comply with the mandatory requirements of the Project Management Framework and the council can demonstrate good project management and good governance in practice in line with Best Value requirements. • Key findings from reviews undertaken through the Quality Assurance review programme are submitted, where relevant, to the respective Programme of Work Strategic Board to share lessons learned. • Through the Business Management Team, the council’s senior management team continue to carry out their respective governance role “To monitor the efficient and effective operation of the council” and to secure the relevant assurances that “the council is able to effectively pursue the long-term ambition set out in The Plan for North Lanarkshire by ensuring this is underpinned with the relevant assurances and controls in terms of corporate governance [including performance, legal, and hr matters], risk management, and financial management.” This includes oversight of the frameworks (and processes) supporting The Plan for North Lanarkshire (which includes the Project Management Framework). • An annual Quality Assurance report is submitted to the Audit and Scrutiny Panel in cycle 1 each year, providing an update in terms of the rolling review programme, to support strategic oversight and assurance. This fulfils good practice in project management which recommends that a council's audit and scrutiny committee has an important role to play in providing independent assurances about the delivery of major programmes and projects. The Panel’s role in this respect is therefore to be assured that suitable review procedures have been adopted, and the independent reviews are undertaken during the project life cycle are adding value. • Assurances have been integrated within the council’s year end governance processes, i.e. the Chief Officers year end checklist and assurance statements (in line with the CIPFA Good Governance in Local Government: Framework (2016)) to support the provision of further evidence that informs production of the council’s Annual Governance Statement. Page 89 of 188
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Appendix 4 Quality Assurance - rolling review programme Projects from each Chief Officer’s Project Register as at January 2026 Chief Officer’s Project Register Project title Position as at January 2026 * Baseline Review compliance assessment undertaken Project delivery now completed Project remains on review programme as at January 2026 Assets and Procurement 1. Chryston Community Hub (and Health) (Northern Corridor). ✓ ✓ 2. Enterprise project - phase 1 procurements. ✓ ✓ 3. Newmains and St Brigids Community Hub (Wishaw). ✓ ✓ 4. Riverbank Community Hub (Coatbridge). ✓ ✓ 5. Chryston High Extension (Northern Corridor). ✓ ✓ 6. Gartcosh Community Hub (Northern Corridor). ✓ ✓ 7. Orbiston Community Hub (Bellshill). ✓ ✓ 8. St Kevin's Community Hub (Coatbridge). ✓ ✓ 9. St Stephen's Community Hub (Coatbridge). ✓ ✓ Adult Social Work 10. Digital. new to project register 2025/26; baseline reviews underway ✓ 11. Getting it right for everyone. ✓ 12. Home support redesign. ✓ Community Operations 13. Demolition of existing facilities at Bellshill. ✓ ✓ 14. Materials Recovery Facility (MRF). ✓ ✓ 15. New build (fleet workshop, offices, welfare accommodation). ✓ ✓ 16. Node replacements. ✓ ✓ 17. Burial space development ✓ ✓ 18. Transfer station. ✓ ✓ 19. New roots / old roots at Palacerigg. ✓ ✓ 20. Eco Hub - Bellshill. ✓ ✓ 21. Strathclyde Park Watersports Centre redevelopment. ✓ ✓ 22. Solar farms - Auchinlea / Dalmacoulter. ✓ ✓ 23. Pather Farm cemetery. new to project register 2025/26; ✓ Page 90 of 188
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Chief Officer’s Project Register Project title Position as at January 2026 * Baseline Review compliance assessment undertaken Project delivery now completed Project remains on review programme as at January 2026 baseline review underway 24. Vehicle replacement programme (decarbonisation of fleet) new to project register 2025/26; baseline review to be scheduled ✓ Education 25. Bothwellpark / early learning centre. ✓ ✓ 26. Cambusnethan Children's House. ✓ ✓ 27. Club 365 review. ✓ ✓ 28. Coltness phase 2. ✓ ✓ 29. Coltness phase 3. ✓ ✓ 30. Daisy Park Centre. ✓ ✓ 31. Heathery Park / Wishawhill family learning centre. ✓ ✓ 32. Installation of 23 digital classrooms. ✓ ✓ 33. Townhead. ✓ ✓ 34. Main Street Children's House. ✓ ✓ 35. Buchanan Street Children’s House. ✓ ✓ 36. Forrest Street Children’s House. ✓ ✓ 37. Fort Street Children's House. ✓ ✓ 38. Glenburn College. ✓ ✓ Education, Families, Justice, and Integrated Practice 39. Becoming a trauma informed organisation. ✓ ✓ 40. Early help and family support accessible from hubs. ✓ ✓ 41. Review of family support. ✓ ✓ 42. Tackling poverty - cash first project (food crisis). ✓ ✓ 43. Tackling poverty - multiply project to improve financial literacy for people with debt problems. ✓ ✓ 44. Fairer Futures Partnership new to project register 2025/26; baseline review underway ✓ Finance and Technology 45. Analogue switch off. ✓ ✓ 46. Connectivity - call off 1: WAN. ✓ ✓ Page 91 of 188
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Chief Officer’s Project Register Project title Position as at January 2026 * Baseline Review compliance assessment undertaken Project delivery now completed Project remains on review programme as at January 2026 47. Connectivity - call off 2: analogue lines. ✓ ✓ 48. Connectivity - call off 4: internet. ✓ ✓ 49. Connectivity - call off 5: public Wi-Fi. ✓ ✓ 50. Waste solutions. ✓ ✓ 51. Fleet services. ✓ ✓ 52. Environmental assets. ✓ ✓ 53. Microsoft Purview pilot. ✓ ✓ 54. Purchase to Pay (P2P). ✓ ✓ 55. Legal services. ✓ ✓ 56. Education and families. ✓ ✓ 57. Princh cloud. ✓ ✓ 58. Unified comms. ✓ ✓ 59. Data centre review. new to project register 2025/26; baseline reviews to be scheduled ✓ 60. Digital employee experience. ✓ 61. Vulnerability management. ✓ Legal and Democratic 62. Replacement of Egenda committee administration system. ✓ ✓ 63. Mobile / portable hybrid meeting system and assisted voting technology. ✓ ✓ 64. Review of the council’s democratic, committee, and decision-making governance procedures. new to project register 2025/26; baseline reviews scheduled for August 2026 ✓ 65. Election (Scottish Government May 2026). ✓ 66. Disaster recovery. new to project register 2025/26; baseline reviews to be scheduled ✓ 67. Legal case management system. ✓ Housing Management 68. Housing support service review. ✓ ✓ 69. Ukrainian resettlement. ✓ ✓ 70. Housing asset management system. ✓ ✓ 71. Towers reprovisioning. ✓ ✓ 72. Demolition of Allan, Coursington, and Draffen towers. ✓ ✓ Page 92 of 188
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Chief Officer’s Project Register Project title Position as at January 2026 * Baseline Review compliance assessment undertaken Project delivery now completed Project remains on review programme as at January 2026 73. Demolition of Jackson Court, Coatbridge. ✓ ✓ 74. Demolition of Dunbeth Court ✓ ✓ 75. Demolition of Gowkthrapple Low Rise ✓ ✓ 76. Demolition of Allershaw Tower, Gowkthrapple new to project register 2025/26; baseline review to be scheduled ✓ 77. RAAC. new to project register 2025/26; baseline reviews scheduled for June 2026 ✓ 78. Installation of broadband to all council tenancies. ✓ People Resources 79. My NL Portal. ✓ ✓ Place 80. Airdrie commercial analysis. ✓ ✓ 81. Glenmanor greenspace. ✓ ✓ 82. Muir Street Motherwell - City Deal. ✓ ✓ 83. New supply programme - Brandon Street, Motherwell. ✓ ✓ 84. New supply programme - Community Road, Bellshill. ✓ ✓ 85. New supply programme - Dykehead Road, Airdrie. ✓ ✓ 86. New supply programme - Northburn Avenue, Airdrie (reprovisioning). ✓ ✓ 87. Ravenscraig Active Travel (phase 2). ✓ ✓ 88. Eurocentral Strategic Active Travel. ✓ ✓ 89. East Airdrie Link Road. ✓ ✓ 90. Orchard Farm Roundabout, A8/M8. ✓ ✓ 91. Ravenscraig Access Infrastructure. ✓ ✓ 92. Smart Hub Lanarkshire phase 2. ✓ ✓ 93. Women’s' Business Centre. ✓ ✓ 94. Braidhurst Industrial Estate - feasibility, design, and construction works. ✓ ✓ 95. Main Street Coatbridge - site assembly. ✓ ✓ 96. Motherwell Station Active Travel phase 1. ✓ ✓ Page 93 of 188
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Chief Officer’s Project Register Project title Position as at January 2026 * Baseline Review compliance assessment undertaken Project delivery now completed Project remains on review programme as at January 2026 97. Motherwell Station Active Travel phase 2. ✓ ✓ 98. Motherwell Station Active Travel phase 3. ✓ ✓ 99. Rediscovering Airdrie - heritage based project funded by HLF and HES. ✓ ✓ 100. The Centre Cumbernauld - acquisition. ✓ ✓ 101. The Centre Cumbernauld - demolition (Phase 2) - June 2027 to December 2028. ✓ ✓ 102. The Centre Cumbernauld - demolition (Phase 2) - June 2029 to December 2030. ✓ ✓ 103. The Centre Cumbernauld - run-down (phase 1) - July 2023 to June 2029. ✓ ✓ 104. The Centre Cumbernauld - run-down (phase 1) - June 2023 to June 2027. ✓ ✓ 105. Belziehill roundabout safety and active travel improvements. ✓ ✓ 106. Kilsyth flood risk reduction scheme. ✓ ✓ 107. Infrastructure and transportation - 6 Active Travel projects new to project register 2025/26; baseline reviews to be scheduled ✓ 108. Bargeddie Cross Road safety improvements. ✓ 109. Orbiston Hub Active Travel phase 2 ✓ 110. ** New supply programme - Brandon Street, Motherwell. ✓ ✓ 111. ** New supply programme - Community Road, Bellshill. ✓ ✓ 112. ** New supply programme - Dykehead Road, Airdrie. ✓ ✓ 113. ** New supply programme - Northburn Avenue, Airdrie (reprovisioning ✓ ✓ 114. ** New supply programme - Caledonian Road, Wishaw. ✓ ✓ 115. ** New supply programme - Thorn Road, Bellshill. ✓ ✓ 116. ** New supply programme - Millcroft Road demolition. ✓ ✓ 117. ** New supply programme - sample to be selected for the 2026/27 review programme. new to project register 2025/26; baseline reviews to be identified and scheduled ✓ Page 94 of 188
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Chief Officer’s Project Register Project title Position as at January 2026 * Baseline Review compliance assessment undertaken Project delivery now completed Project remains on review programme as at January 2026 Strategy and Engagement 118. Leadership and operating model: test of change - Chryston Community Hub. ✓ ✓ 119. Leadership and operating model: test of change - Coatbridge Community Hub. ✓ ✓ 120. Leadership and operating model: test of change - Newmains Community Hub. ✓ ✓ 121. Leadership and operating model: test of change - Riverbank Hub (Carnbroe / Sikeside). ✓ ✓ Note 1 • The information provided in the table above captures all projects on the Project Register as at January 2025 which have remained on the Register during 2025 and remain on the Register as at January 2026. • In respect of the column titled *Baseline Review compliance assessment undertaken - this confirms which projects have completed the minimum requirement of a Baseline Review as at January 2026. • The duration of specific projects and the lifecycle stage each project was at when undertaking the Baseline Review (and the RAG status applied) means that subsequent Check-in Reviews or Deep Dive Reviews may also have been undertaken for some projects since. For ease of demonstrating the extent of the Quality Assurance review programme, and providing assurances in this respect, only the Baseline Review position is reflected above. Note 2 • All projects from Chief Officer’s Project Registers are subject to the Quality Assurance compliance process with the exception of the ** New supply programme. In this instance, a tailored approach was agreed with the Chief Officer in order to avoid an overly bureaucratic, time consuming, and resource intensive process given the substantial volume of projects within this programme. The intent from this approach is that any lessons learned from the 20% sample will be shared with the respective project manager given that all projects are part of the same programme. Page 95 of 188
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North Lanarkshire Council Report Audit & Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/ASP/ALMar26 Date 04/03/26 Audit and risk related items: Action log From Francis Scott, Chief Officer (Audit and Risk) E-mail scottfr@northlan.gov.uk Telephone 07887 914207 Francis Scott Chief Officer (Audit and Risk) Executive Summary The purpose of this report is to allow elected members to track implementation of outstanding requests and recommendations made by the Panel in respect of audit and risk- related items. The attached log (at Appendix 1) records those audit and risk-related requests and recommendations made by the Panel and when these were addressed and/or are expected to be addressed. Any actions that have previously been reported as complete and noted by the Panel have been removed from the log. Recommendations The Panel is invited to note the report. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 8 Page 97 of 188
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Appendix 1 Audit and Risk related items: Outstanding action log Date Requests or agreed action Status August 2025 Can benchmarking details be provided of NL Risk Management Register against other Local Authorities? Complete – Differences across authorities (for example the tools used and how information is interpreted and applied in the risk management process) create challenges in making comparisons. A form of benchmarking used annually in the horizon scanning exercise was included in the Risk Management Update at the meeting of the Panel in November 2025. The Scottish Local Authorities Chief Internal Auditors Group (SLACIAG) have completed an exercise to benchmark corporate risks from Scottish local authorities. The outputs of this exercise are included in Appendix 3 of the Risk Management update in this agenda. Page 98 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/ASP/PRMar26 Date 04/03/26 Internal Audit: Progress Report From Francis Scott, Chief Officer (Audit and Risk) E-mail scottfr@northlan.gov.uk Telephone 07787 914207 Executive Summary The purpose of this report is to provide an overview of Internal Audit activity and audit reports issued since the last update to the Panel in November 2025, namely: • Homelessness • Anti-Fraud Arrangements • Sundry Debtors • Risk Management • Protecting Vulnerable Groups • Financial Sustainability This report will also advise on the progress of the 2025-26 Internal Audit Plan and provide an update on performance management. Recommendations The Panel is invited to: (a) note the content of the Internal Audit reports together with the associated management responses. (b) consider whether there are any issues raised by Internal Audit which the Panel consider are sufficiently significant to require a further report from management to be submitted to a future meeting of the Panel. (c) request that Internal Audit report to future meetings of the Panel on the progress in implementing agreed management actions categorised as ‘High’ or ‘Medium’ priority, and (d) otherwise note this report. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 9 Page 99 of 188
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1. Background 1.1 The 2025-26 Internal Audit Plan was approved by the Audit and Scrutiny Panel in May 2025. The Internal Audit Charter requires that Internal Audit Progress Reports are presented to each meeting of the Panel, providing an update on the progress against the Internal Audit Plan and any other Internal Audit activity. This report fulfils that requirement. 2. Report Audit reviews completed in the period 2.1 The audit reports summarised below have been completed since the last meeting of the Panel in November 2025. While the reports noted all contain recommendations for improvement, all reports have positive levels of assurance, including two reports which provide substantial assurance. Management have responded positively to these reports and satisfactory responses and commitments to audit recommendations have been received. 2.2 Appendix 1 provides detailed definitions of the priorities assigned to audit recommendations, and the factors considered when determining the level of assurance provided in the audit opinion. Full copies of these audit reports have been included in the meeting paper in line with the approved reporting protocol. Homelessness Internal Audit Opinion Reasonable assurance Recommendations High 0 Medium 3 Low 1 2.3 The purpose of this audit was to assess whether the Council’s arrangements for managing homelessness applications follow agreed procedures and statutory duties and that decisions made in respect of accepting or rejecting homelessness applications are justified, consistent and fair. From the work undertaken, we were satisfied that the main elements of the process were operating well – including applying for homeless accommodation, the eligibility of applicants, decision making and approval, communication of decision and the management checking regime. 2.4 We have identified some areas for improvement relating to reviewing and maintaining an up-to-date procedures manual, the establishment of a formal staff training programme and consistency in recording key information in relation to decision making to provide a comprehensive audit trail. Anti-Fraud Arrangements Internal Audit Opinion Reasonable assurance Recommendations High 0 Medium 2 Low 0 2.5 This audit was designed to assess the Council’s counter-fraud arrangements against good practice and determine how effectively Services are identifying and mitigating fraud risks. Based on the results of our work, we confirmed that while the Council has a Counter Fraud policy which is generally consistent with good practice in fraud risk management, it is not yet reflective of the Economic Crime and Corporate Page 100 of 188
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Transparency Act 2023 (the Act), which introduced the offence of failure to prevent fraud. 2.6 Areas for improvement identified from this audit include the revision of the Counter Fraud Policy to reflect the requirements of the Act, and ensuring all staff are aware of the provisions of the Act and the requirement to consider the risk of fraud. Sundry Debtors Internal Audit Opinion Substantial assurance Recommendations High 0 Medium 0 Low 3 2.7 The purpose of this audit was to review the arrangements for raising invoices and credit notes and correctly allocating payments to debtors’ accounts. We are satisfied that invoices and credit notes being processed consistently and accurately in line with documented procedures and guidelines, and that appropriate backup documentation was consistently being retained across all services. Risk Management Internal Audit Opinion Reasonable assurance Recommendations High 0 Medium 3 Low 2 2.8 This audit was designed to provide assurance on the Council’s risk management arrangements. We are generally satisfied that there are established processes in place for identifying, assessing and prioritising risks at both a Corporate and Service level and identifying appropriate controls and actions to manage these risks. Additionally, risk management is regularly reported to senior officers and elected members, and staff are required to undertake mandatory risk management training. 2.9 We identified a number of areas where we consider further management action is required. These included reviewing the structure and presentation of risk registers, and the methods of presenting and reporting risk information to ensure they are sustainable and add value. Additionally, there is a need to improve the arrangements for monitoring progress of objectives and actions of the Corporate Risk Team. Protecting Vulnerable Groups Internal Audit Opinion Reasonable assurance Recommendations High 1 Medium 2 Low 1 2.10 The Council has a statutory responsibility to ensure that individuals working with children and protected adults are members of the Protecting Vulnerable Groups (PVG) scheme. The purpose of this audit was to assess the Council’s arrangements for managing PVG membership for its employees and volunteers undertaking regulated roles. We are generally satisfied that there are appropriate processes in place for identifying regulated roles, ensuring that new employees and volunteers undertaking regulated roles hold the appropriate PVG membership and that records held to confirm PVG membership comply with data protection legislation. 2.11 We did, however, identify a number of areas for improvement. The recording arrangements around PVG membership for employees and volunteers are not always Page 101 of 188
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consistent, and it was difficult to verify the completeness of employee records with appropriate PVG membership details. Additionally, the PVG Policy, processes and governance arrangements require updating to fully reflect current legislation and expected practice, and specifically the processes for school volunteers need to be defined and implemented. Financial Sustainability Internal Audit Opinion Substantial assurance Recommendations High 0 Medium 0 Low 1 2.12 The Council’s approach to long‑term financial sustainability is robust, supported by well‑established financial planning arrangements that operate effectively and provide assurance over sound financial management. The Council continues to operate within its revenue budget, reflecting strong financial controls and effective budget management, and maintains a sufficient level of reserves to support future budget pressures, demonstrating its financial resilience. 2025-26 Internal Audit Plan – Progress Update 2.13 The 2025-26 Internal Audit Plan was approved by the Panel in May 2025, and the allocation of work was based on a full staffing complement for the year. In accordance with the Internal Audit Charter, I am required to advise the Panel if resources have reduced during the year to an extent that it will affect the planned workload. 2.14 A vacancy at auditor level arose at the beginning of November and a subsequent recruitment exercise was unsuccessful, meaning the post will remain vacant for the remainder of this financial year and reduce the overall resource available. Taking this into account, I have been required to make amendments to the plan for 2025-26 and this has resulted in 2 audits being partially deferred into 2026-27 and 4 audits being removed from the planned work. These audits are highlighted in Appendix 2. 2.15 One of the key annual performance indicators is the completion of the Internal Audit Plan completed each year, with a target of 90%. Despite the resourcing constraints and amendments to the audit plan noted above, I anticipate that this target should be achieved for 2025-26. This will allow sufficient audit coverage to provide an annual audit opinion which is unrestricted in terms of scope. Performance Management 2.16 In line with Internal Audit performance management framework, two performance indicators are subject to quarterly reporting to the Panel. 2.17 The first indicator is the implementation of agreed actions arising from Internal Audit reports by the implementation date. In the period to December 2025, 62% of agreed actions have been implemented by the implementation date (the previous update for the period to September 2025 had a 66% completion rate). 2.18 The second performance indicator measures client satisfaction. The results received in the period continue to show positive feedback, with 100% of respondents agreeing that Internal Audit added value by assisting in providing assurance, and that reports were relevant and constructive with findings clearly and accurately communicated. Appendix 3 provides a summary of the questions we ask audit clients at the conclusion of each audit. Page 102 of 188
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3. Measures of success 3.1 Internal Audit reports annually on its performance to the Panel and is also subject to review annually by the Council’s appointed external auditors. 4. Supporting documentation Appendix 1 Audit Grading Definitions Appendix 2 Changes to Audit Plan 2025-26 Appendix 3 Internal Audit Client Feedback Results Francis Scott Chief Officer (Audit and Risk) Page 103 of 188
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ Page 104 of 188
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If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Effective responses by management to the weaknesses, control issues and/or areas of improvement identified by Internal Audit will increase the likelihood of the Council achieving its ambitions by improving control frameworks and more effectively mitigating potential risks and threats to the achievement of planned outcomes. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 105 of 188
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Appendix 1 Audit Grading Definitions Audit reports are graded with an overall assurance opinion, and any issues and associated recommendations are classified individually to denote their relative importance, in accordance with the definitions in the tables below. Definition of audit assurance and recommendation categories Assurance Confidence based on sufficient evidence that internal controls are in place, operating effectively and objectives are being achieved. Assurance opinion Substantial Assurance There are minimal or minor control weaknesses that present low risk to the control environment. The control environment has substantially operated as intended although some minor errors have been detected. Very few or no improvements are needed. Reasonable Assurance There are some control weaknesses that present a low to medium risk to the control environment. The control environment has mainly operated as intended although errors have been detected. Some improvements should be made. Limited Assurance There are significant control weaknesses that present medium to high risk to the control environment. The control environment has not operated as intended. Significant errors have been detected. Substantial improvements should be made. No Assurance There are fundamental control weaknesses that present an unacceptable level of risk to the control environment. The control environment has fundamentally broken down and is open to significant error or abuse. Immediate and major changes need to be made. Organisational impact Major The weaknesses identified during the review have left the Council open to significant risk. If the risk materialises it would have a major impact upon the organisation. Moderate The weaknesses identified during the review have left the Council open to medium risk. If the risk materialises it would have a moderate impact upon the organisation. Minor The weaknesses identified during the review have left the Council open to low risk. If the risk materialises it would have a minor impact upon the organisation. Recommendation priority High Significant control failure or weakness that, if not addressed, may lead to a major financial, operational or reputational risk to the organisation and/or significantly impact the successful delivery and achievement of the objectives of the area under review. Urgent/Immediate action is required. Medium Control failure or weakness that, if not addressed, may lead to a moderate financial, operational or reputational risk to the organisation. Weakness may be individually significant, but it is unlikely to affect the successful delivery and achievement of the overall objectives of the area under review. The risk of error would, however, be significantly reduced if corrective action were taken. Prompt action is required Low Control failure or weakness that may lead to a minor financial, operational or reputational risk to the organisation. Weakness does not appear to significantly affect the ability to meet objectives. Minor issue raised to improve the efficiency and effectiveness of controls. Page 106 of 188
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Appendix 2 Changes to Audit Plan 2025-26 Internal Audits Deferred to 2026/27 Audit Plan Audit Title Comment Project Management Planning for this audit is underway and will commence within 2025-26, but the detailed audit work will carry forward and be reported as part of the 2026-27 audit plan. Debt Management Planning for this audit is underway and will commence within 2025-26, but the detailed audit work will carry forward and be reported as part of the 2026-27 audit plan. Internal Audits Removed from Audit Plan Audit Title Comment Traffic Commissioner Report This audit was intended to review progress made by Fleet Services against actions raised by the Traffic Commissioner. Since the Internal Audit plan was approved, the Driver and Vehicle Standards Agency has conducted a follow-up review and advised that the majority of actions are now complete, and they intend to take no further action, so no additional audit work is required. Compliance with Grant Conditions Main grant funding received is UK Shared Prosperity Fund, which is due to end in March 2026. The Local Growth Fund will be introduced following this and will be subject to future audit work once established. Some unplanned audit work is ongoing relating to the award of grant funding. The outcome of this will be reported to Panel in due course. Digital NL Process Redesign This audit was intended to review the work and planned outcomes of the initial phase of the Digital NL programme. There is an ongoing review of the Programme of Work and any changes or workstreams added to the programme will be considered for future audit plans. NL Community Planning Partnership This audit aimed to review work on the self-assessment evaluation of the partnership. This will be considered for future audit plans. A separate audit is being undertaken on the Leadership and Operating Model which will review the approach to community hubs. Page 107 of 188
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Appendix 3 Internal Audit Client Feedback Results Responses received in this period from 12 clients related to assignments reported to the Panel (note these responses primarily relate to audit assignments reported in the Internal Audit Progress Reports presented to the August and November 2025). Question Strongly Agree or Agree (%) Neither Agree nor Disagree (%) 1. Internal Audit added value to my area by assisting in providing assurance and/or identifying weaknesses and/or improvements in relevant governance/business process and internal controls 100% 0% 2. Internal Audit findings were accurate and clearly communicated 100% 0% 3. The audit report made relevant, constructive and practical recommendations to help improve operations 100% 0% 4. Internal Audit staff were professional and courteous throughout the audit process 100% 0% Where management raise concerns over Internal Audit’s work, these matters are discussed with relevant senior management to fully understand the nature of any concerns and, where it is considered appropriate, to identify areas for improvement. We also seek Services’ views on what they liked or disliked about the audit process and comments received are used to inform future action plans for improving the service provided by Internal Audit. Page 108 of 188
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1 INTERNAL AUDIT REPORT HOMELESSNESS Headlines The Council is responsible for assessing and responding to homelessness applications in line with statutory duties under the Housing (Scotland) Act 1987, the Homelessness etc. (Scotland) Act 2003, other recently introduced legislation and the Council’s own homelessness procedures. The purpose of this audit was to assess whether the Council’s arrangements for managing homelessness applications follow agreed procedures and statutory duties and that decisions made in respect of accepting or rejecting homelessness applications are justified, consistent and fair. Based on the results of our work, we have categorised this audit as offering reasonable assurance. We are generally satisfied that the control framework and arrangements for managing homelessness are adequate and operating effectively and no significant issues were identified in relation to inconsistent decision-making or non-compliance with current legislation. The audit did, however, identify some areas for improvement. These include ensuring homelessness procedures are reviewed and updated to reflect current legislation and good practice, establishing arrangements for the ongoing review and maintenance of these procedures and implementing a formal training programme to ensure staff are fully aware of current legislative requirements and how to correctly process homelessness applications. Arrangements to ensure documentation and supporting evidence for decisions made on homelessness could also be strengthened to provide a clear and comprehensive audit trail that fully supports and justifies decisions taken. Internal Audit Opinion Reasonable assurance Priority of Recommendations High Medium Low 0 3 1 Organisational Impact Moderate Report status FINAL Audit ref 0650/2026/001 Date issued 27/11/2025 Audit Team Susan Whyte and Lesley Armstrong Issued To Chief Officer (Housing), Housing Solutions Manager and Performance Regulatory Manager Copied To Chief Executive and Depute Chief Executive Page 109 of 188
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2 1. Executive Summary Objectives The audit sought to provide independent assurance on the following areas: • The Council’s homelessness procedures comply with statutory requirements, and guidance on how to process homelessness applications is clearly documented and accessible to relevant parties. • Homelessness applications are assessed in accordance with statutory requirements and the Council’s policies and procedures, and decisions are clearly documented and properly retained for future reference. • Decisions to accept or reject homelessness applications are made consistently and in accordance with agreed procedures. This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • Applicants complete a formal Homelessness Application form and are interviewed to enable a consistent approach to information gathering and the assessment of eligibility across all localities. • A Decision Guide is completed for all homelessness applications which summarises the outcome of investigations and decisions made. All decisions are subject to review and sign-off by both a Housing Coordinator and a Service Manager. • All homelessness decisions are communicated to applicants in writing, using standard letters which include details of the appeals process, where appropriate. • The Business Development team undertake monthly reviews of all negative and a sample of positive homelessness application decisions. The results of these reviews, including any issues identified, are formally documented and are reported to senior management and the Chief Officer. • Monthly senior management meetings are held to review performance across Housing Services, including homelessness. Any issues identified during these meetings are recorded in an Action Log, which details the responsible officer and target completion dates, and progress against these actions is reviewed regularly to ensure timely resolution. Area Housing Managers are notified of any issues requiring attention, either via email or through monthly Area Manager meetings. Key areas requiring management action (High Priority) No areas requiring urgent management action have been identified. Other areas for improvement (Medium Priority) A number of other areas for improvement were identified: • The Homelessness Procedures Manual should be regularly reviewed and updated to ensure it reflects current legislation and remains accurate and comprehensive. • A formal training programme and arrangements for periodic refresher training should be established. • There is scope to further enhance existing processes to ensure consistent and comprehensive recording of key information within both HSMS and hard copy files to fully support decision-making in respect of homelessness applications. Page 110 of 188
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3 3. Action Plan Homelessness 0650/2026/001 Ref Finding 1 The Homelessness Procedures Manual should be regularly reviewed and updated to ensure it reflects current legislation and remains accurate and comprehensive. The current Homelessness Procedures Manual has not been updated for a number of years and therefore does not fully reflect the requirements of all current homelessness legislation. As an interim solution, a range of quick guides have been developed, and these have been supported by briefing sessions delivered by the Business Development team. These measures were introduced to ensure that legislative changes affecting the processing of homelessness applications were communicated to relevant staff. We did not identify any specific instances where current legislation was not being applied during the audit, however, although we were advised that, in addition to the quick guides, informal updates are also shared with local housing offices, where required, it was not always clear whether guidance covering all recent legislative changes had been produced or was readily available. We also noted that the procedural documents, including the quick guides, are not currently held in one single location which increases the risk of staff being either unaware of, or unable to access, the most current procedures, or of them inadvertently using outdated guidance, when looking for information on processing homelessness applications. Implication Recommendation Priority Management response Implementation Date The absence of up-to-date procedures which are readily available to staff increases the risk of outdated guidance being used or the most recent legislative requirements not being applied when processing homelessness applications. This may result in non-compliance with current legislation or best practice, leading to inconsistent or incorrect decision- making, negative outcomes for service users, and the potential for reputational damage to the Council. The Chief Officer (Housing) should ensure that: (1) The Procedures Manual is periodically reviewed and updated to accurately reflect all aspects of current homelessness legislation and align with best practice. (2) Where interim quick guides or similar resources are required, these are held in a centralised and easily accessible location to reduce potential confusion and encourage consistent use by staff. Medium Agree Karen McGettigan, Performance and Regulatory Manager (1) We have started to progress a review of the Procedures Manual to ensure all information contained in quick guides is incorporated into the full manual, and to ensure the full manual reflects all areas of legislation. We will put in place an Annual Review of the policy/ procedure, with a relevant method for recording reviews through our service Continuous Improvement Groups. (2) A centralised ‘Procedure’ folder will be arranged and shared with all staff, with a guidance note advising staff how/where to access procedures. September 2026 January 2026 Page 111 of 188
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4 3. Action Plan Homelessness 0650/2026/001 Ref Finding 2 A formal training programme and arrangements for periodic refresher training should be established. A Housing Skills Development Officer has recently been appointed, with responsibilities including the development and delivery of a formal training programme, covering homelessness legislation and procedures. These training arrangements have not yet been fully established and as a result, we have identified several areas where there is scope for improvement: • a formal training programme is not in place and, as a result, training is currently delivered on an ad hoc basis, making it difficult to assess whether staff are receiving timely and consistent training on all relevant legislative requirements and/or best practice. • although the Business Development team undertake briefing sessions within local Housing Offices on request, there are currently no arrangements for consistently and systematically identifying the need for and for delivering periodic refresher training across the Service. Additionally, there are no formal arrangements for issuing periodic reminders to staff on the importance of adhering to agreed procedures and legislative requirements. • monthly audits conducted by the Business Development team are intended to identify consistent issues or trends arising which can, where relevant, then be incorporated into staff training to enable these issues to be addressed. In the absence of a formal training programme, however, it is difficult to confirm whether issues identified through the monthly audit process are being incorporated into training where relevant. Implication Recommendation Priority Management response Implementation Date Without appropriate training, staff responsible for processing homelessness applications may not fully understanding their roles and responsibilities, increasing the risk of errors, inconsistent decision-making, and potential non-compliance with agreed internal procedures and legislative requirements. The Chief Officer (Housing) should ensure that: (1) A structured training programme is developed and implemented which ensures training is delivered in a timely manner, covering current legislative requirements and best practice guidance. (2) Arrangements are established to deliver refresher training and to issue periodic reminders to ensure staff remain aware of their responsibilities, continue to comply with legislation and internal procedures, and maintain consistency in decision- making. (3) Relevant findings from the monthly audits are linked to training to ensure any emerging or recurring issues are addressed. Medium Agree Karen McGettigan, Performance and Regulatory Manager We recognise that a formal training plan should be developed to ensure training is relevant and consistent. Training will be added as a standard item on the agenda of the service Continuous Improvement Groups, with the formal service training plan reviewed at each meeting to ensure appropriate training is scheduled and delivered. This will include training on changes to legislation /processes/procedures, training resulting from audit findings as well as training for new staff and annual refresher training for existing staff. March 2026 Page 112 of 188
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5 3. Action Plan Homelessness 0650/2026/001 Ref Finding 3 There is scope to further enhance existing processes to ensures consistent and comprehensive recording of key information within both the Housing Services Management System (HSMS) and hard copy files to fully support decision-making in respect of homelessness applications. We reviewed a sample of HSMS and hard copy files for a small number of homelessness applications and while no cases were identified where decisions appeared to be incorrect, we identified some gaps in both the recording of enquiries undertaken and the retention of key supporting documentation: • for two cases, hard copy files could not be located and, as a result, key documents, including application forms and supporting evidence, were unavailable for review. • it was not always clear from review of either HSMS or hard copy files that all required enquiries had been carried out in line with Council procedures and there was also no explanation provided confirming why certain enquiries had not been undertaken or why these were considered either not possible or appropriate. • a small number of occasions were identified where it was unclear whether all relevant evidence had been obtained to support the application and decision and, as a result, it was not possible to confirm that investigations were sufficiently robust or comprehensive. In four cases, the lack of detailed records made it difficult to establish whether the decisions made were appropriately supported. • a small number of cases were noted where mandatory information, as outlined in Council procedures, had not been recorded on the homelessness application forms. Implication Recommendation Priority Management response Implementation Date Where electronic or hard copy records for homelessness applications do not provide full details of all enquiries made and investigations undertaken or do not include relevant supporting documentation obtained to substantiate details provided by applicants, there is an increased risk of the Council being unable to explain or defend decisions if challenged. A lack of secure storage can increase the risk of hard copy files being lost or misplaced or the potential for unauthorised access to sensitive personal data. The Chief Officer (Housing) should: (1) Implement procedures that ensure hard copy and/or HSMS records clearly document all key decisions, supporting evidence, and justifications for any enquiries or documentation not pursued. (2) Incorporate guidance into training programmes, in conjunction with the recommendation made at 2 above, that covers: • consistent and secure documentation storage, retrieval and transfer practices. • the importance of maintaining a clear audit trail for decision-making, including recording reasons for any enquiries not undertaken. • details of evidence that must be obtained and retained to ensure compliance with legislation, internal procedures, and best practice. • ensuring decisions made on homelessness applications are fully supported by the information recorded on individual case files. Medium Agree Karen McGettigan, Performance and Regulatory Manager While procedures and guidance notes already exist regarding the need to evidence and document decisions and the details of evidence required and requested, to ensure a clear audit trail for all homeless cases, we agree that this should be formally included within our overall procedural document. This will be included as part of our procedural review and within the formal training plan being developed, as noted at point 2. September 2026 Page 113 of 188
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6 3. Action Plan Homelessness 0650/2026/001 Ref Finding 4 Arrangements to further analyse appeals against homelessness decisions may provide an opportunity to enable inconsistencies in decision-making and remedial action to be identified. We noted that the number of appeals against decisions made on homelessness applications appeared to be generally low, and no significant issues were identified. However, while the volume of homelessness appeals is reported and informally reviewed, the current approach focuses primarily on tracking appeal numbers rather than assessing the quality or consistency of decision-making or identifying opportunities for improvement. The details of appeals submitted are not currently analysed to enable recurring issues, trends, or consistent weaknesses to be identified and there are therefore no arrangements in place to document issues arising from submitted appeals, nor to identify potential areas for improvement or remedial actions where necessary. We also noted that monthly RAG reports include details of various performance measures including the number of appeals against homelessness decisions however these reports do not indicate the number of appeals which were upheld, if any, which may further reduce senior management’s ability to identify possible issues in decision-making or to identify potential opportunities for service improvement. Additionally, we were advised that complaints are rarely received however arrangements, which were previously in place to review these to enable issues arising and potential remedial action to be identified, are not currently in place although their reintroduction is currently being considered. Implication Recommendation Priority Management response Implementation Date A lack of periodic review of appeal cases or complaints may lead to an increased risk of recurring issues and inconsistent decision-making going unnoticed, resulting in missed opportunities for learning and continuous improvement. The Chief Officer (Housing) should consider: (1) Periodically reviewing cases where successful appeals against decisions made on homelessness applications have been made, or where complaints have been received, to assess the quality and consistency of the decisions made and to identify potential recurring issues, trends or areas for improvement. (2) Incorporating details of the number of successful appeals and any requests for judicial review into current performance data to further enhance identification of potential emerging or significant issues. Low Agree Karen McGettigan, Performance and Regulatory Manager (1) The facility for recording appeals is available within HSMS but is not consistently used. Briefing and training will be arranged for all staff on the use of this part of the housing management system, which will allow regular review and reporting of appeal numbers and reasons. (2) The information obtained from reviews and appeals will be included within the monthly MCO (Measuring Charter Outcome) reports. January 2026 January 2026 Page 114 of 188
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7 INTERNAL AUDIT REPORT REVIEW OF ANTI-FRAUD ARRANGEMENTS Headlines This audit was designed to assess the Council’s counter-fraud arrangements against good practice and determine how effectively Services are identifying and mitigating fraud risks. Based on the results of our work, we confirmed that while the Council has a Counter Fraud policy which is generally consistent with good practice in fraud risk management, it is not yet reflective of the recently introduced Economic Crime and Corporate Transparency Act 2023 (the Act). The Act introduces an offence of failure to prevent fraud, for which large organisations (such as the Council) can receive unlimited financial penalties if convicted. The Act also provides a defence for organisations if they can demonstrate they had reasonable procedures in place to prevent fraud, based on a fraud risk assessment. We were pleased to note progress from the previous audit by Services to create fraud risks and assess the extent to which service areas consider fraud risks relevant to them along with identifying resulting mitigating actions to reduce the likelihood and impact of such risks. We have therefore assessed this audit as providing reasonable assurance. The audit work identified some areas for improvement which are significantly driven by the need for the Council to comply with its responsibility as set out in the Act. These include: • There is a need for the Council to review its fraud prevention arrangements to comply with the Act. • The Council’s fraud risks need to be reviewed and updated to ensure their scope, and mitigating controls and actions, fully address the responsibility of the ‘failure to prevent fraud’ requirement of the Act. Internal Audit Opinion Reasonable assurance Priority of Recommendations High Medium Low 0 2 0 Organisational Impact Moderate Report status FINAL Audit ref 0900/2026/006 Date issued 12/01/26 Audit Team Elaine MacDonald and Lesley Armstrong Issued To Chief Officer (Audit and Risk) and Chief Officer (Legal and Democratic Services) Copied To Chief Executive and Depute Chief Executive Page 115 of 188
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8 1. Executive Summary Objectives This audit was a focussed review which involved: • Comparing the Council’s current anti-fraud arrangements and policies against good practice to identify any gaps or areas for improvement. • Assessing the extent to which Service risk registers properly reflect fraud risks relevant to their Service and any resultant mitigating actions to reduce the likelihood and impact of such risks. This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • The Council has in place a Counter Fraud Policy which has been approved by Committee. It states that the Council has a zero-tolerance approach to fraud, bribery and corruption and implements and enforces effective systems to counter these. Furthermore, the Council expects its staff (always recognised as ‘associated persons’ under the new legislation) to act honestly, with integrity and to safeguard public resources for which they are responsible. The Council aims to conduct all its business in an honest and ethical manner and is committed to acting professionally, fairly and with integrity in all its dealings and relationships wherever it operates. • Policies and procedures are in place which are designed to assist in the prevention and detection of fraud including codes of conduct for both employees and chief officers, a Whistleblowing policy and an Information Security Policy. • The Council has identified serious organised crime, fraud and corruption as a corporate risk, which is included in the Council’s Corporate Risk Register and presented to CMT and the Audit and Scrutiny Panel on a regular basis. • The Council participates in the National Fraud Initiative (NFI) data matching exercises and is an active member of the National Anti-Fraud Network (NAFN) and Scottish Local Authorities Investigators Group (SLAIG) which enables sharing of information in relation to current and emerging fraud risks. Key areas requiring management action (High Priority) No areas requiring urgent management action have been identified. Other areas for improvement (Medium Priority) The following other areas for improvement were identified: • There is a need for the Council to review its fraud prevention arrangements to comply with the Act. • The Council’s fraud risks need to be reviewed and updated to ensure their scope, and mitigating controls and actions, fully address the responsibility of the ‘failure to prevent fraud’ requirement of the Act. Page 116 of 188
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9 3. Action Plan Review of Anti-Fraud Arrangements 0900/2026/006 Ref Finding 1 There is a need for the Council to review its fraud prevention arrangements to comply with the Act. The Economic Crime and Corporate Transparency Act 2023 came into effect on 1 September 2025. The main aims of the Act are to strengthen the UK's ability to combat economic crime, improve corporate transparency, enhance the integrity of the company register and introduce new powers and obligations for companies, partnerships, and overseas entities. It introduced a new offence, targeted at large organisations that fail to prevent fraud committed by employees, agents, subsidiaries, or other “associated persons”. The offence is designed to encourage better fraud prevention procedures and shift corporate culture. During our review, we noted: • The Council has not undertaken a full review of the Act to understand its full implications regarding taking reasonable measures to prevent fraud. • The Counter Fraud Policy does not currently reflect the changes introduced by the Act. We understand this policy is due to be reviewed and will be presented to committee for approval in due course. • The Council’s eLearning module ‘Fraud awareness for local government’ supports employees to learn of and improve their understanding and vigilance around detecting and reporting fraud. The content of the module has recently been updated to reflect the Act. However, this training has not been deemed to be mandatory and despite being a key area of risk control, only 15 people completed the module in the year to September 2025. • While there has been some communication to Council staff and the wider Council environment on fraud awareness, vigilance and reporting concerns, there is scope for this to improve. We understand an initiative to do this will be completed after the review of the counter fraud policy has been completed and approved. Implication Recommendation Priority Management response Implementation Date The Council’s counter-fraud arrangements may be inadequate or may not fully comply with good practice or legislation. (1) The Chief Officer (Audit and Risk) should review and update the Counter Fraud policy in line with the Act, present this to committee for approval and communicate this to all council employees and wider associated persons for information. (2) The Chief Officer (Legal and Democratic) should: • Ascertain what the provisions of the Act mean for the Council’s activities to prevent fraud and communicate this to all senior managers. • As part of the corporate defence against the ‘failure to prevent fraud’ offence, determine whether the eLearning module should be made mandatory for all staff. Medium (1) Agree Francis Scott, Chief Officer (Audit and Risk) The revised Corporate Fraud Policy is expected to be approved by Policy and Strategy Committee in March 2026. Following approval, this will be communicated to all relevant officers. (2) Agree Fiona Ekinli, Legal Manager (Enterprise) The introduction of the new ‘failure to prevent fraud’ offence has potential implications for the Council’s existing counter-fraud framework, including arrangements operating within Council ALEOs. It is therefore important that there is a clear and consistent understanding of how the legislation applies. The provisions of the Act and relevant statutory guidance will be reviewed to assess the requirements and expectations placed on the Council in relation to fraud prevention, including the extent to which these apply to Council ALEOs. The outcome of this review will be communicated to all senior managers, and where appropriate to ALEO leadership, to support a consistent and compliant approach to fraud prevention and governance. As part of the Council’s corporate defence against the ‘failure to prevent fraud’ offence, consideration will be given to whether the existing fraud awareness eLearning module should be made mandatory for all staff, including those within Council ALEOs where appropriate. This assessment will take account of proportionality, existing training arrangements, and differing risk profiles, with the aim of ensuring that fraud awareness and preventative controls are effective across the Council and its ALEOs. April 2026 April 2026 Page 117 of 188
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10 3. Action Plan Review of Anti-Fraud Arrangements 0900/2026/006 Ref Finding 2 The Council’s fraud risks need to be reviewed and updated to ensure their scope and mitigating controls and actions fully address the responsibility of the ‘failure to prevent fraud’ requirement of the Act. A previous audit of the Council’s Counter Fraud arrangements in 2023 found that ‘there was scope for improvement in the consideration and inclusion of fraud risks in Service Risk Registers and reporting on recognised fraud risks’. We were pleased to note that significantly, service-based fraud risks have been created on the risk register, and these are being reviewed periodically. However, from a review of the minutes from CMT meetings and the Risk Management Corporate Working Group (RMCWG) throughout 2025, there was no evidence of fraud risk being discussed. The UK Government guidance in support of the Act advises organisations to follow a structured approach based on six key principles to ensure they have reasonable fraud prevention procedures in place consistent with the requirements of the Act (see Appendix 1). From a review of existing fraud risks, while some are well considered and detailed, others hold very limited details of the scope of the fraud risk, the nature it may take and details of specific controls and actions in place to mitigate the Council’s exposure. There is scope to reconsider these risks and improve the detail held in each, as in their current format they may not be considered reasonable measures under the new ‘failure to prevent fraud’ responsibility. Furthermore, the nature and extent of the Council’s exposure to the risk of employees, agents and other associated persons committing fraud in scope of the offence needs to be assessed, captured and controls and actions to mitigate this introduced. The Annual Certificates of Compliance and Declarations completed by Chief Officers to inform the Council’s Annual Assurance Statement include two questions in Checklist A about fraud. For 2024/25, these were answered positively, with one instance of fraud within Education being disclosed. While the number of frauds reported as being detected is relatively low, this does not necessarily indicate that fraud is not being committed. Implication Recommendation Priority Management response Implementation Date Services may not have given appropriate consideration to potential fraud risks within their remit and may not have identified and implemented appropriate actions to mitigate such risks which could increase the likelihood of fraudulent activity occurring and/or reduce the ability to detect such activity in a timely manner. The Chief Officer (Audit and Risk) should: (1) Advise Chief Officers to ensure: • Fraud risks within their service comply with the requirements of the Act regarding the ‘failure to prevent’ offence. This should consider the six guiding principles outlined at Appendix 1. • They have processes in place to verify that their fraud detection measures and controls are effective and operating as intended. (2) Ensure the Risk Management Team are fully aware of the implication of the legislation and can effectively support and guide service managers to comply with this. Medium Agree Francis Scott, Chief Officer (Audit and Risk) Both parts of the recommendation will be included as part of the communication resulting from the approval of the Corporate Fraud Policy. April 2026 Page 118 of 188
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11 Appendix 1 – Economic Crime and Corporate Transparency Act 2023: Guidance to organisations on the offence of failure to prevent fraud, November 2024 Reasonable Fraud Prevention measures – the Six Guiding Principles Top Level Commitment Responsibility for the prevention and detection of fraud rests with those charged with the governance of the organisation. Risk Assessment The organisation assesses the nature and extent of its exposure to the risk of employees, agents and other associated persons committing fraud in scope of the offence. The risk assessment is dynamic, documented and kept under regular review. Proportionate risk-based fraud prevention procedures An organisation’s procedures to prevent fraud by persons associated with it are proportionate to the fraud risks it faces and to the nature, scale and complexity of the organisation’s activities. They are also clear, practical, accessible, effectively implemented and enforced. Due diligence The organisation applies due diligence procedures, taking a proportionate and risk-based approach, in respect of persons who perform or will perform services for or on behalf of the organisation, in order to mitigate identified fraud risks. Communication (including training) The organisation seeks to ensure that its prevention policies and procedures are communicated, embedded and understood throughout the organisation, through internal and external communication. Training and maintaining training are key. Monitoring and review The organisation monitors and reviews its fraud detection and prevention procedures and makes improvements where necessary. This includes learning from investigations and whistleblowing incidents and reviewing information from its own sector. Page 119 of 188
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12 INTERNAL AUDIT REPORT SUNDRY DEBTORS Headlines The purpose of this audit is to provide assurance that the Council has adequate and effective management arrangements in place for raising invoices and credit notes and correctly allocating payments to debtors’ accounts. Based on the results of our work, we have categorised this audit as offering substantial assurance. We are generally satisfied that the arrangements in place are adequate and operating effectively, with invoices and credit notes being processed consistently and accurately in line with documented procedures and guidelines. In addition, we noted that backup documentation held by the services was consistently being retained across all services and was sufficient to back up invoices which had been raised. No high or medium priority issues requiring management action were identified. We have suggested some minor areas for improvement which management should consider. These are detailed in the action plan at section 3 of this report. Internal Audit Opinion Substantial assurance Priority of Recommendations High Medium Low 0 0 3 Organisational Impact Minor Report status FINAL Audit ref 0200/2026/001 Date issued 11/02/26 Audit Team Fiona Campbell & Lesley Armstrong Issued To Chief Officer (Finance and Technology) Copied To Chief Executive and Depute Chief Executive Page 120 of 188
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13 1. Executive Summary Objectives The audit sought to provide independent assurance on the following areas • Adequate written policies and procedures covering responsibilities and processes for raising, amending and authorising invoices are in place and are being appropriately applied by Services. • Invoices raised are accurate, contain sufficient detail of the charge, are supported by adequate documentation, are appropriately authorised and are issued timely. • There are appropriate processes in place to ensure that income received is correctly allocated to customer accounts. • All credit notes are appropriately raised and authorised. This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • There are written procedures and guidance available to ASH system users, which document the processes which are expected to be followed when raising an invoice or credit note. • Access to the ASH system is reviewed annually by the Business Development and Performance Team, with users required to confirm their continued need for access and that access levels are appropriately aligned with job roles. • The ASH system includes built-in checks that prevent credit notes from being posted without second-user authorisation. These checks also help prevent the entry of incorrect details or the processing of incomplete invoices or credit notes. • Invoices and credit notes were appropriately authorised by service management. Supporting documentation – such as emails, service records, and internal forms – were retained and deemed sufficient. Key areas requiring management action (High Priority) No areas requiring urgent management action have been identified. Other areas for improvement (Medium Priority) No other areas for improvement were identified. Page 121 of 188
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14 Ref Finding 1 Awareness of the existence and content of key procedural documents could be improved. There are 3 key procedural documents to be followed by users when raising, amending and authorising invoices and credit notes: • The ASH User Manual is a clear and comprehensive resource for processing invoices and credit notes. It outlines specific invoice content requirements and provides step- by-step instructions for posting batches. • The Sundry Debt Recovery Procedure Manual was last updated in May 2022, containing comprehensive guidelines on each of the steps of the process and includes guidance on minimum invoice values, segregation of duties and backup documentation requirements. • The Sundry Debt Recovery Guide was introduced following a previous audit in 2023 and is focused solely on debt recovery. These key documents are accessible to staff via SharePoint. Additionally, the ASH User Manual is issued to all users when they are granted access to the system. While each document serves a useful purpose within its respective area, some key information is spread across them. For example, the requirement to retain backup documentation when raising credit notes is outlined in the Sundry Debt Recovery Procedure Manual, whereas the step-by-step process for raising the credit note is detailed in the ASH User Manual. Audit testing revealed limited awareness of these procedures among users. Only 2 out of the 5 users sampled confirmed they were aware of the documented procedures, despite their availability. Additionally, none of the users had knowledge of the informal guidelines relating to minimum invoice values and payments in advance or at the point of service, even though these are outlined in the Debtors Recovery Procedure Manual. Implication Recommendation Priority Management response Implementation Date Limited user awareness of the documented procedures can lead to incorrect or incomplete invoices, missing information, delays in raising, or invoices being raised for very small amounts. This can lead to reduced income collection and increased likelihood of disputes. Furthermore, users may refer to only one and miss important information in the others, leading to inconsistent practices, procedural errors, and an over-reliance on system checks instead of a full understanding of the process. The Chief Officer (Finance) should: • Remind users of the ASH system of the key procedural documents, highlighting the importance of understanding the content of each document. • Consider introducing guidance to provide additional clarity over the various procedural documents, to improve consistency and ease of reference. Low Agree Users will be reminded of the requirement to ensure awareness and understanding of the key procedural documents, and the importance of understanding the content. It should be noted that the Sundry Debt Procedure Manual is no longer in use. Following the 2023 audit, the document became redundant, and all recovery related processes were included in the Sundry Debt Recovery Guide. This updated Guide was issued to all Chief Officers in November 2023, along with details of the revised recovery processes, procedures, and reporting responsibilities. The ASH User Manual provides system specific operational guidance and is not intended to form part of recovery procedures. However, it is acknowledged that there is an opportunity to strengthen clarity for users and therefore plan to develop an overarching guidance document that will signpost Services to the appropriate operational manuals, recovery guidance, and provide key contacts to ensure consistency and ease of reference across all areas. Responsible Officer: Veronica Roberts Designation: Business Finance Manager June 2026 3. Action Plan SUNDRY DEBTORS 0800/2026/001 Page 122 of 188
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15 Ref Finding 2 A control should be introduced to eliminate the ability to create an instalment payment plan with incorrect bank details. The ASH system alerts users when invalid sort codes are entered; however, these warnings can be overridden, allowing the process to continue. This was confirmed during audit testing by creating a “dummy” invoice and setting up an instalment plan via direct debit using deliberately incorrect bank details. Although the system flagged the sort code as “invalid,” it still allowed the transaction to proceed, resulting in a direct debit being created with clearly incorrect bank details. While the alert provides some level of control, the ability to override it without further validation weakens its effectiveness. Implication Recommendation Priority Management response Implementation Date Allowing users to override system warnings for invalid sort codes increases the risk of incorrect bank details being recorded. This could result in failed direct debit collections, delays in income recovery, additional administrative workload to resolve errors, and potential reputational damage if customers are affected. The Chief Officer (Finance) should liaise with system administrators to review the current validation controls within the ASH system. Consideration should be given to strengthening these controls by preventing users from proceeding with direct debit setups when invalid sort codes are entered, or by requiring additional confirmation or authorisation before continuing. Low Agree Responsible Officer: Kathleen Shearer Designation: Business Finance Manager The Finance team with liaise with system provider ASH to review the validation controls and assess options to mitigate the control weakness identified. However, it should be recognised that before a payment is requested through BACS a confirmation of payee process is run and where errors are highlighted these are returned to users for correction. June 2026 3. Action Plan SUNDRY DEBTORS 0800/2026/001 Page 123 of 188
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16 3. Action Plan SUNDRY DEBTORS 0800/2026/001 Ref Finding 3 Improvements can be made to the recording of the rationale for raising credit notes. In accordance with section 8.6 of the Sundry Debtors Recovery Manual, in all cases a notepad entry should be added to the Debtor Event Log on the ASH system explaining why the decision was made to raise a Credit Note. Testing of 10 credit notes revealed that 8 out of the 10 provided no reasoning for why they were issued. Although the rationale was later clarified through backup documentation provided by the services, this information should have been included in the ASH Debtor Event Log, and a brief explanation on the credit note itself. Implication Recommendation Priority Management response Implementation Date Failure to record the rationale for credit notes within the ASH system and on credit notes weakens the audit trail and reduces the transparency of decisions. This can undermine internal controls, make it more difficult to justify or review actions taken, and increase the risk of error or fraud. The Chief Officer (Finance) should remind all relevant staff of the requirement to: • record the rationale for credit notes in the ASH Debtor Event Log, in accordance with section 8.6 of the Sundry Debtors Recovery Manual. • include a brief explanation of the reasoning directly on the credit note itself. Additionally, consideration should be given to implementing a system prompt or validation step to ensure this information is entered before a credit note can be finalised. Low Agree Responsible Officer: Kathleen Shearer Designation: Business Finance Manager The ‘Event Log’ on the ASH debtor system is a general area where a user can add free texts notes. We are not aware of any validation parameters available that would restrict the finalisation of credit note if the free text note was not added. However, ASH users will be reminded of the requirement to: • record the rationale for credit notes in accordance with section 8.6 of the Sundry Debtors Recovery Manual. • include a brief explanation of the reasoning directly on the credit note itself. Consideration will also be given to scope for implementing a system prompt or validation step to ensure this information is entered before a credit note can be finalised. June 2026 Page 124 of 188
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17 INTERNAL AUDIT REPORT RISK MANAGEMENT Headlines The purpose of this audit was to provide independent assurance that the Council has robust and effective risk management arrangements. The audit included a review of both Corporate and Services’ arrangements for ensuring that all significant risks are identified, evaluated and controlled; risk registers have been prepared and are kept up-to-date; and appropriate arrangements are in place to review, monitor and report on risk. As part of this audit, we assessed the arrangements against good practice as identified by Audit Scotland in their ‘Best Value toolkit: Risk management’. We also carried out testing to evaluate the nature and extent of challenge provided by the Corporate Risk Team (CRT), senior management, and elected members in relation to the Council’s risk management arrangements. The Council operates in a complex environment and faces multiple challenges in delivering against its priorities, therefore effective risk management arrangements are essential and form a key part of good governance arrangements. The current Risk Management Strategy, approved by the Policy and Strategy Committee in March 2023, sets out a clear direction for how the risks the Council faces will be identified assessed and managed both corporately and within Services. Risk is managed across the Council by the CRT, Service Risk Champions and the Risk Management Corporate Working Group (RMCWG). Based on the results of our audit work, we have categorised this audit as offering reasonable assurance. We consider that the Council’s risk management arrangements are broadly compliant with Audit Scotland’s Best Value toolkit on risk management. We are generally satisfied that there are established processes in place, through the Risk Management Strategy, for identifying, assessing and prioritising risks at both a Corporate and Service level and identifying appropriate controls and actions to manage these risks. Additionally, risk management is regularly reported to senior officers and elected members, and staff are required to undertake mandatory risk management training. We have, however, identified a number of areas where we consider further management action is required. These are detailed in section 3 and include: • There is a need to clarify and formalise the CRT’s advisory role within the risk management process and to review the structure of risk registers to ensure the arrangements are sustainable and add value. • There is scope to improve the arrangements for identifying, recording and monitoring progress of the CRT’s objectives and actions. • There is a need to review the current Risk Reporting Matrix to ensure that it better aligns with the objectives of the CRT. Internal Audit Opinion Reasonable assurance Priority of Recommendations High Medium Low 0 3 2 Organisational Impact Moderate Report status FINAL Audit ref 0150/2026/001 Date issued 04/02/26 Audit Team Euan Campbell and Lesley Armstrong Issued To Chief Officer (Audit and Risk) and Corporate Risk Manager Copied To Chief Executive and Depute Chief Executive Page 125 of 188
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18 1. Executive Summary Objectives The audit sought to provide assurance on the following: • Risk management is actively supported and promoted by senior officers/elected members and is contributing to the achievement of the Council’s objectives. • There is a systematic approach to identify, assess and prioritise risks at both a Corporate and Service level, and appropriate controls and actions have been identified to manage these risks. • There is adequate assurance and challenge over the effectiveness of risks, controls and actions. • Risk management activities are regularly monitored, reported and reviewed and there is a culture of continuous improvement supported by training and awareness. The audit did not consider the adequacy and effectiveness of individual risks or the controls identified by management to mitigate those risks. This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • There is a clear governance structure for risk management across the Council, with the CRT having primary responsibility for the co-ordination of risk management activities through the RMCWG, supported by Service Risk Champions who are responsible for facilitating risk management within their Service. • The Risk Management Strategy sets out clearly defined roles and responsibilities across all levels of staff, senior management and elected members. • The Risk Management Strategy includes guidance on the corporate methodology and processes for identifying, prioritising, managing and reporting risks. • The Council has a risk management information system (Figtree) which is used to record all Corporate and Service risk registers in a consistent and comprehensive format, allowing for a standardised approach to identifying, managing and reviewing risks across the Council against standard risk categories and with consideration of Corporate and Service objectives and priorities. • Quarterly update reports on risk management are presented to the Audit and Scrutiny Panel setting out the key corporate risk activity over the period. Risk Champions also present regular update reports on risk management to their Service Management Teams (SMT). • Compliance with the Risk Management Strategy is monitored through a compliance self-assessment framework. • The Council has implemented a comprehensive and structured approach to risk management training including mandatory eLearning modules. Key areas requiring management action (High Priority) No areas requiring urgent management attention have been identified. Other areas for improvement (Medium Priority) A number of other areas for improvement were also identified: • There is a need to clarify and formalise the CRT’s advisory role within the risk management process and to review the structure of risk registers to ensure the arrangements are sustainable and add value. • There is scope to improve the arrangements for identifying, recording and monitoring progress of the CRT’s objectives and actions. • There is a need to review the current Risk Reporting Matrix to ensure that it better aligns with the objectives of the CRT. Page 126 of 188
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19 3. Action Plan Risk Management 0150/2026/001 Ref Finding 1 There is a need to clarify and formalise the CRT’s advisory role within the risk management process and to review the structure of risk registers to ensure the arrangements are sustainable and add value. Under the existing framework, the CRT’s involvement in providing advice and guidance to Services on risk registers is not sufficiently evidenced in practice. Although the Risk Management Strategy outlines governance arrangements and assigns the CRT a coordinating and advisory role, there is no defined point in the process where the second line functions (e.g. the CRT, Procurement, Legal) routinely offer input to help Services enhance the quality of risk content or risk reviews. Our review highlighted several areas where the current approach presents challenges: • Volume and Nature of Risks: Service and corporate risk registers contain a mix of static risks that rarely change because they stem from exposures the Council has limited ability to influence and, as a result, are tolerated, or are emerging risks that require more dynamic management. • Content of Risk Registers: The distribution of risks across service and corporate risk registers does not always reflect all six risk categories outlined in the Risk Management Strategy. While this may not be possible in all cases, we consider that full application of the guidance within the Risk Management Strategy would typically result in a more balanced representation of these categories and support comprehensive risk identification. • Timeliness of Reviews: A significant proportion of risks across corporate and service risk registers were overdue for review. Given the volume of risks and the associated level of reviews required, we understand the difficulty in undertaking reviews within timescales therefore the current process may become unsustainable and, once reviews are undertaken, they may be treated as a compliance exercise rather than a meaningful reassessment of current status. • Evidence of advisory services: While the CRT and Risk Champions indicated that second line input occurs, there was limited evidence to demonstrate how this is applied in practice. We were informed by the CRT that they are undertaking a review of the current arrangements for risk advisory services, with a view to introducing a more streamlined and innovative approach to risk management. We were advised that the proposed new model, which introduces a process for gaining additional assurance on Business-as-Usual (BAU) / Ever-present risks alongside a Service Register for emerging risks, is intended to address the issues highlighted above by: • Consolidating static risks into the BAU register, reducing duplication and freeing capacity to focus on future uncertainty. • Creating a clear point of engagement where Chief Officers sign off the BAU register annually, enabling the CRT to take a more targeted assurance and support role. • Reducing the overall number of risks and reviews, making the process more meaningful and sustainable by finding balance between completeness and manageability. We were advised this approach has the potential to strengthen governance, improve the clarity of roles and enhance the effectiveness of risk management across the Council. Implication Recommendation Priority Management response Implementation Date Without a consistently implemented advisory role for the CRT, risk registers may lack sufficient challenge, consistency, and completeness. The current volume and structure of risks, combined with delayed reviews, increases the likelihood that risk information becomes outdated or compliance-driven, reducing its value for decision-making. The Chief Officer (Audit and Risk) should: (1) Continue to review the current risk management arrangements to identify a more streamlined and innovative approach. (2) In the event that the proposed approach is not feasible, develop an alternative model that addresses the issues identified in the finding. (3) Once the preferred approach has been agreed, develop and implement a clear action plan, setting out the required tasks, milestones, responsibilities and timescales. Medium Agree Donald Stone, Corporate Risk Manager We will develop a model for the treatment of ever- present risks, updating and including the specific activities required to deliver as a high-level objective within our revised Risk Management Strategy, and ensuring clarity around responsibilities and timescales. Subject to consultation with relevant stakeholders, the data recorded in the model will be utilised to provide management information and for reporting purposes. March 2027 Page 127 of 188
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20 3. Action Plan Risk Management 0150/2026/001 Ref Finding 2 There is scope to improve the arrangements for identifying, recording and monitoring progress of the CRT’s objectives and actions. The Corporate Risk Manager has created an action tracker on Teams which details the tasks and actions required in relation to the CRT activities and we were advised that this is used to monitor progress. However, from our review of this tracker, we noted that some of the actions do not clearly detail expectations, have not been allocated a responsible officer and completion timescale and do not indicate the level of progress to date. Of the 35 actions which have been allocated a completion timescale, 20 are overdue. Implication Recommendation Priority Management response Implementation Date If the CRT’s work plan is not formally documented, planned activities and progress against objectives may not transparent and senior management may find it difficult to assess whether the CRT is achieving its objectives in a timely manner. The Chief Officer (Audit and Risk) should implement more formalised arrangements for the CRT’s work plan by: (1) Reviewing and updating the current process for determining the work plan for the CRT including identifying the objectives and required actions to ensure that the stated actions, responsible officers and completion timescales are clear. (2) Ensuring that progress of the updated work plan is monitored and discussed regularly with the Corporate Risk Manager to ensure that actions are progressed timeously and any issues are identified at an early stage to facilitate prompt resolution. Medium (1) Agree Donald Stone, Corporate Risk Manager We will update the existing content of the CRT planner and include the specific activities required to deliver the high-level objectives in the revised risk management strategy and ensure clarity around responsibilities and timescales. (2) Agree Francis Scott, Chief Officer (Audit and Risk) This will be referred to in management meetings with the Corporate Risk Manager. June 2026 June 2026 Page 128 of 188
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21 3. Action Plan Risk Management 0150/2026/001 Ref Finding 3 There is a need to review the current Risk Reporting Matrix to ensure that it better aligns with the objectives of the CRT. The Council’s Risk Management Strategy 2023-2026 includes a Risk Reporting Matrix which sets out the key risk-related reports, who each report should be produced by and presented to and the required reporting frequency. From our testing, we consider that several reports referenced in the matrix are not being produced or submitted in accordance with the stated requirements as follows: • A Risk Lead report produced by the CRT and Risk Leads for presentation to CMT monthly and ASP quarterly, providing detailed information on specific corporate risks. • A review of the CRR and Corporate Risk Action Plan for presentation to CMT and ASP biannually. • An annual Risk Management Year-End Compliance report to advise on Corporate and Service compliance with the Risk Management Strategy, seek approval and provide an update on progress made in delivering the risk control actions and the actions contained within the risk management work plan. We were advised by the Chief Officer (Audit and Risk) and Corporate Risk Manager that the current Strategy was prepared by their predecessors and that they consider that the matrix no longer meets the requirements of the CRT as the reporting approach does not fully align with how they wish to present risk information or the type and level of reporting that they feel would be most useful for elected members. A review of the Risk Management Strategy is currently underway and is due to be presented to the Policy and Strategy Committee in March for approval. We understand that the Risk Management Matrix is being considered as part of this review to ensure that it accurately reflects the intentions of the CRT and supports the needs of all stakeholders to effectively discharge their respective risk management roles. Implication Recommendation Priority Management response Implementation Date Failure to comply with the reporting requirements set out in the Risk Management Strategy weakens governance by reducing visibility of key risk information, limiting oversight and assurance that risk management activities are being effectively monitored. The Chief Officer (Audit and Risk) should, as part of the upcoming review of the Risk Management Strategy, review and update the Risk Reporting Matrix to ensure that reporting requirements remain relevant, proportionate, and achievable. This review should also consider how best to enhance the quality, format, and frequency of risk reporting to key stakeholders, ensuring it is tailored to their needs. Medium Agree Donald Stone, Corporate Risk Manager The Risk Management Strategy 2026-2029 includes a revised reporting schedule. This version of the strategy has been agreed with the CMT and will be presented to the Policy and Strategy Committee for approval in March 2026. Following approval of the Strategy, we will consider the introduction of utilising power apps and dashboard reporting with the aim of enhancing the communication of risk information to management / ASP. March 2026 September 2026 Page 129 of 188
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22 3. Action Plan Risk Management 0150/2026/001 Ref Finding 4 There is scope to improve the corporate risk management arrangements to better reflect good practice. We assessed the Council’s risk management arrangements, including the Risk Management Strategy, against good practice as identified by Audit Scotland in their Best Value Toolkit: Risk Management. From our review, we are satisfied that the arrangements generally reflect good practice expectations, setting out roles and responsibilities and methodology for identifying, scoring/prioritising, managing and reporting risks. However, we consider that there is scope for improvement to better reflect good practice as the current arrangements do not provide clear guidance on risk appetite, tolerance levels and consideration of opportunities as well as threats to the Council. Additionally, our review of the questions contained within the compliance self-assessment against the Risk Management Strategy identified a small number of gaps as follows: • There are questions regarding whether new or emerging risks are escalated sufficiently, however, we consider that, since the Council employs both a ‘top down’ and ‘bottom up’ approach to risk management, this should be extended to risks which are de-escalated/closed. • There is scope to include a question which incorporates project and Corporate/Service risk registers to ensure that any significant risks are reflected in all risk registers as appropriate. Implication Recommendation Priority Management response Implementation Date The Council’s risk management arrangements may not fully reflect good practice. The Chief Officer (Audit and Risk) should consider: (1) Reviewing the information included in the Risk Management Strategy in relation to risk appetite, expected tolerance levels and opportunities to determine whether it adequately reflects good practice, and updating the Strategy for any gaps identified. (2) Including, in the compliance self-assessment, additional questions in relation to de-escalation and closing of risks and the identification of links between project and Corporate/Service risk registers in respect of significant risks. Low Agree Donald Stone, Corporate Risk Manager (1) We will include reference to the areas highlighted within in the next iteration of the strategy along with high level timelines for implementation. Supplementary guidance materials will be made available as the initiatives develop. (2) We will revise the question set to incorporate questions around de-escalation and closing of risks and links to project registers. April 2026 June 2026 Page 130 of 188
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23 3. Action Plan Risk Management 0150/2026/001 Ref Finding 5 There is scope to strengthen the governance arrangements for tracking and monitoring risk‑related actions. Our review noted that while action points from the Risk Management Corporate Working Group (RMCWG) are recorded on a Microsoft Teams action tracker and outstanding items are routinely included on meeting agendas, the quality and completeness of information recorded is inconsistent. Several actions lacked clear descriptions of the required activity, did not include due dates, and had remained open for extended periods without sufficient narrative to explain delays or demonstrate active follow‑up. Similarly, the quarterly compliance self‑assessment process introduced in May 2024 requires Services to identify actions arising from areas of non‑compliance with the Risk Management Strategy. These actions are tracked on a Microsoft Teams action plan, however, we noted that many entries did not clearly specify the action required, did not record responsible officers or timescales, and provided limited evidence of oversight from the CRT. Eight of the 34 actions had been open for more than a year, with no evidence of documented discussion of progress or issues arising. Taken together, these weaknesses indicate that the current arrangements for monitoring and managing risk‑related actions do not provide adequate control, transparency, or assurance that required improvements are being progressed in a timely or effective manner. Implication Recommendation Priority Management response Implementation Date Without clear due dates, and sufficient commentary to explain the nature and status of actions arising from RMCWG and the Compliance Self Assessments, there is a risk that agreed actions are not completed in a timely manner or are overlooked. This could lead to delays in implementing improvements to risk management processes, weaken accountability, and reduce the effectiveness of the Council’s overall risk governance arrangements. The Chief Officer (Audit and Risk) should review the documentation for recording and monitoring progress of action points raised at the RMCWG meetings, and arising from the Compliance Self Assessments reviews, with a view to including target dates, more clearly stating progress to date and providing narrative indicating the reasons for any delays in progressing the actions. Low Agree Donald Stone, Corporate Risk Manager We will enhance our use of the planner app functionality to address the recommendation. June 2026 Page 131 of 188
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24 INTERNAL AUDIT REPORT PROTECTING VULNERABLE GROUPS Headlines The Council has a statutory responsibility to ensure that individuals working with children and protected adults are members of the Protecting Vulnerable Groups (PVG) scheme. The PVG scheme is managed by Disclosure Scotland and involves conducting criminal record checks on its members to ensure that individuals who are unsuitable to work with children and protected adults cannot undertake regulated roles with these groups. As part of the changes arising from the introduction of the Disclosure (Scotland) Act 2020, from April 2025, it is now a legal requirement for individuals undertaking regulated roles to be a member of the PVG scheme and non-compliance with this requirement is now a criminal offence. Further changes to the PVG scheme are expected, including the requirement for PVG memberships to be renewed every five years. The purpose of this audit was to assess the adequacy and effectiveness of the Council’s arrangements for managing PVG scheme membership for its employees and volunteers undertaking regulated roles. Based on the results of our work, we are generally satisfied that there are appropriate processes in place for identifying regulated roles, ensuring that new employees and volunteers undertaking regulated roles hold the appropriate PVG membership and that records held to confirm PVG membership comply with data protection legislation. We have therefore categorised this audit as offering reasonable assurance. However, the arrangements for recording whether a post is regulated and that individuals hold a valid PVG membership are not always clear and consistent. As a result, it was difficult to verify the completeness of records in order to demonstrate that all employees in regulated roles hold the appropriate PVG membership. Additionally, the PVG Scheme and Disclosure Information Policy only refers to employees and does not currently reflect the changes arising from the updated legislation, and there is a lack of clear processes for school volunteers. We have highlighted a number of areas for improvement, which are detailed in section 3 of this report and include: • An urgent need to improve the recording arrangements around PVG membership for employees and volunteers. • A need to review the Policy, processes and governance arrangements to fully reflect current legislation and expected practice. • The PVG arrangements and processes in place for school volunteers need to be clearly defined and implemented. Internal Audit Opinion Reasonable assurance Priority of Recommendations High Medium Low 1 2 1 Organisational Impact Moderate Report status FINAL Audit ref 0900/2026/007 Date Issued 12/02/26 Audit Team Kimberley Hall and Lesley Armstrong Issued To Chief Officer (People Resources) and Chief Officers (Education) (Rec 3 only) Copied To Chief Executive and Deputy Chief Executive Page 132 of 188
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25 1. Executive Summary Objectives The audit sought to provide assurance on the following areas: • There are adequate written policies covering the requirements of the PVG scheme and these are aligned with current legislation and Disclosure Scotland guidance. • Roles and responsibilities for PVG compliance are clearly defined and communicated across Services. • Appropriate arrangements are in place to correctly identify and document all roles undertaken by employees and volunteers which involve regulated work and ensure that all individuals in such roles have a valid and appropriate PVG. • There are robust processes in place for verifying identity and eligibility of individuals and ensuring that PVG checks are completed and approved before individuals commence regulated work. • PVG information and records are stored securely, with retention and disposal of such records complying with data protection legislation and council policy. Work undertaken included confirming and reviewing the actions taken to ensure the Council’s continued compliance with Disclosure requirements as a result of the changes to Disclosure legislation introduced from April 2025 as well as checks on a sample of employees in regulated roles to confirm that they have the appropriate PVG membership. This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • The HR Business Partner team undertook a review of all posts within the Council to identify any additional roles which require a PVG/Disclosure as a result of the changes to legislation. • PVG checks are undertaken by the Workforce Resourcing Team for new employees in regulated roles as part of the pre-employment checks, with valid membership in place prior to individuals commencing their employment with the Council. • An exercise was undertaken to process retrospective PVG applications for current employees categorised in ‘regulated roles’ to ensure that appropriate staff have valid PVG membership. Key areas requiring management action (High Priority) The following key areas requiring urgent management action have been identified: • There is an urgent need to improve the recording arrangements around PVG membership for employees and volunteers. Other areas for improvement (Medium Priority) A number of other areas for improvement were also identified: • There is a need to review the Policy, processes and governance arrangements to fully reflect current legislation and expected practice. • The PVG arrangements and processes in place for school volunteers need to be clearly defined and implemented. Page 133 of 188
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26 4. Action Plan Protecting Vulnerable Groups 0900/2026/007 Ref Finding 1 There is an urgent need to improve the recording arrangements around PVG membership for employees and volunteers. The new legislation, implemented from April 2025, resulted in a large scale, complex exercise for People Resources to identify newly regulated roles and ensure that the individuals in those roles obtained PVG membership. We note that significant work has been undertaken to update and improve the records held to enable easier identification of regulated roles and confirmation that postholders hold the appropriate PVG membership. A list of regulated roles has been produced, which details the type of PVG or disclosure check each role requires, and the requirement for a PVG (child, adult or both) has been added to the relevant posts and positions within iTrent. Completed and in-progress PVG and disclosure checks for employees and other parties undertaking regulated work on behalf of the Council are recorded on tracker spreadsheets and an exercise is currently underway to improve the recording of PVG membership and completed disclosure checks for employees by logging this information against their individual record on iTrent to ensure that a single, complete record is held. We obtained an iTrent report detailing all posts and positions within the Council, whether they require a PVG and if so, which type and whether the postholder holds the appropriate PVG membership. We reviewed this report, comparing the list of regulated roles and the tracker spreadsheet for recording PVG/disclosure checks and identified the following issues: • The iTrent report contains 300 entries where the requirement for/type of PVG required for the post and position do not match. • The iTrent report contains 1,500 entries where the post/position requires a PVG, but the employee’s iTrent record does not indicate that they have one. We were advised that this gap was due to the transition of PVG information from the Service files to iTrent, and on completion of the exercise each iTrent record will have been updated. Our testing on a targeted sample of 25 of these entries confirmed that PVG membership was held and the details were recorded elsewhere. • There are instances where the requirement for/type of PVG differs between the iTrent report and list of regulated roles. • The list of regulated roles contains a number of posts which no longer exist (e.g. Heads of Service) or the post has been renamed. • There were inconsistences between the type of PVG required for some posts and the type of PVG held by the postholder. Whilst we acknowledge that the exercise to record all PVG memberships on iTrent is still ongoing, the issues highlighted above make it difficult to verify the completeness of information in order to demonstrate that all employees in regulated roles hold the appropriate PVG membership. We therefore, consider that it is important that these records are updated fully and accurately as soon as possible. We were also advised that, once these arrangements are fully implemented, there are plans for ongoing review and update to provide assurance that all individuals undertaking regulated roles hold a valid and appropriate PVG membership. Implication Recommendation Priority Management response Implementation Date If the arrangements for recording regulated roles, the type of PVG membership required and individual employees with PVG membership are not robust, there is a risk that an employee may be employed in a regulated role without PVG membership which could result in placing vulnerable groups at risk of harm, reputational damage or financial risk. The Chief Officer (People Resources) should: (1) As a matter of urgency, continue to progress the project for improving the recording of regulated roles against posts, positions and individual employees on iTrent, with a view to holding a complete record of all regulated roles and associated PVG membership for employees. (2) Produce and review regular exception reports from iTrent to identify any anomalies with regulated roles, including those referred to in the finding above and potential individuals who do not hold a valid and appropriate PVG membership. Action to resolve any issues identified should be taken as appropriate. (3) Consider whether a centralised record confirming PVG membership should be maintained for all parties undertaking regulated work. High Agree Gillian Quinn, Employee Service Centre Manager The Service agrees that recent and planned future changes to the scheme now require improvements to previous arrangements for the recording of PVG’s. Work is well underway in this regard and will be progressed as quickly as possible. Once complete, this will allow for regular exception reporting to be established to provide ongoing assurance of compliance with the scheme and the regulations. Once work is complete on recommendations 1 and 2, consideration will be given to recommendation 3, although it is expected that this will be complex as it involves non-employees. It will not be possible to hold both non-employee PVG and employee PVG records on iTrent and therefore other arrangements will have to be considered. December 2026 Page 134 of 188
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27 3. Action Plan Protecting Vulnerable Groups 0900/2026/007 Ref Finding 2 There is a need to review the Policy, processes and governance arrangements to fully reflect current legislation and expected practice. The Chief Officer (People Resources), as lead signatory for the Council, has overall responsibility for ensuring that disclosure information is handled properly, with responsibility for processing PVG applications and ensuring that individuals in regulated roles have the appropriate PVG membership being delegated to relevant teams within Services. However, there is no individual officer with overall responsibility for ensuring that all parties undertaking work on behalf of the Council have been considered and that relevant Services have appropriate arrangements in place for processing applications and recording PVG membership. Changes to the core legislation governing the PVG Scheme were implemented from April 2025, with further changes in relation to the movement from lifetime to five-year membership expected in April 2026. Whilst the Council has a PVG Scheme and Disclosure Information Policy, this was last updated in 2016, and from our review of this Policy, we noted that it only relates to employees and elected members and does not reflect the governance arrangements for other parties undertaking regulated work on behalf of the Council (including volunteers, self-employed contractors or agency workers) or details of key contacts. Additionally, the Policy does not yet reflect the recent legislative changes or resulting amendments to the Council’s processes and governance arrangements arising from these changes. We recognise, however, that there are further expected changes to the legislation and Disclosure Scotland guidance and note that People Resources acknowledged the need for the Policy to be updated within their report to CMT in August 2025 which outlined the changes to the PVG scheme. Implication Recommendation Priority Management response Implementation Date If policies do not fully reflect legislation or expected practice, the Council may fail to comply with legal and statutory requirements, which could result in reputational damage or financial penalties and there may be inconsistencies in the way in which officers carry out required tasks. The Chief Officer (People Resources) should: (1) Undertake a review of the governance arrangements for PVGs to establish clear roles and responsibilities and processes, giving due consideration to the need for an officer with overall responsibility. (2) Undertake a review of the Policy to ensure that it fully reflects the changes arising from the new legislation and any resultant amendments to the Council’s processes and governance arrangements, covers all parties undertaking regulated work on behalf of the Council and provides details of key contacts/countersignatories for processing applications. Medium Agree Linda Cullen, Employment & Policy Manager Changes to the scheme are still ongoing. For example, the implementation of the five-year scheme, which will affect the majority of Council staff who currently hold a PVG, does not commence until April 2026. Once all final changes to the scheme have been implemented, the policy will be fully updated to reflect all requirements arising from the new legislation. This will include clear governance arrangements for the operation of the scheme, including defined roles and responsibilities going forward. January 2027 Page 135 of 188
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28 3. Action Plan Protecting Vulnerable Groups 0900/2026/007 Ref Finding 3 The PVG arrangements and processes in place for school volunteers need to be clearly defined and implemented. From our audit work, we consider that the PVG processes in place for new employees are generally satisfactory, with PVG membership being confirmed by the Workforce Resourcing Team as part of the pre-employment checks and prior to the employee commencing employment. There are similar arrangements in place for elected members, social work carers and ActiveNL volunteers, however, we identified a number of issues with the arrangements for school volunteers as follows: • At the start of the audit, we had difficulty identifying the arrangements and responsible officer for PVGs for school volunteers. We were advised that these were previously undertaken by ActiveNL, however, this was transferred to Education prior to summer 2025 and no alternative responsible officer was identified at that time. • We issued a questionnaire to Headteachers to confirm their understanding of the requirement for school volunteers to have PVG membership and the process for requesting a PVG application. The outcome of this questionnaire highlighted that there is a lack of understanding around regulated roles and when a PVG is required, there is no clear process in place for requesting a PVG and there is a lack of awareness of key contacts and countersignatories. Interim arrangements have now been put in place to undertake retrospective checks, with the longer-term arrangements being progressed and an email has been issued to Headteachers to provide examples of regulated roles and advise the actions required and nominated key contacts. Implication Recommendation Priority Management response Implementation Date If the processes and arrangements for PVG are not clear, officers may not fully understand their responsibilities, which could lead to staff and volunteers undertaking regulated roles not having the appropriate PVG membership. The Chief Officers (Education) should ensure that the retrospective checks for school volunteers identified as a result of the communication issued to Headteachers are progressed promptly and that, as a matter of urgency, the longer-term arrangements are fully established, implemented and communicated to Headteachers. Medium Agree James McParland / Barry Smedley, Chief Officers (Education) A report will be submitted to the Service SMT meeting on 4 March 2026 which will include reference to the PVG requests which are currently awaiting a response and will outline previous practice, issues raised by headteachers, required changes to practice to address the updated PVG regulations and the further steps required to develop a formal Service policy on this subject. The new Service policy will be operational from the start of the 2026/27 academic term. August 2026 Page 136 of 188
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29 4. Action Plan Protecting Vulnerable Groups 0900/2026/007 Ref Finding 4 A small number of other areas for improvement in respect of PVGs were identified. Our testing identified a small number of other areas for improvement as follows: • The Council has a legal duty to notify Disclosure Scotland of individuals ceasing to undertake regulated work as they are no longer a person of interest. From our review of a sample of leavers in regulated roles, we identified one employee where Disclosure Scotland had not been notified, as the People Operations Team were unaware that the employee held a PVG membership as it was not recorded on the employee’s record on iTrent and they did not undertake any further enquiries. The Workforce Resourcing Manager confirmed that Disclosure Scotland has now been notified. • Whilst employees in newly identified regulated roles were notified that they were now required to have PVG membership, there has been no formal communication from the Council advising of the changes to the PVG scheme, particularly in relation to advising that it is now a criminal offence for both the organisation and individuals undertaking regulated work if they do not hold a valid and appropriate PVG membership. Implication Recommendation Priority Management response Implementation Date Delays in notifying Disclosure Scotland that individuals are no longer persons of interest could result in a data protection breach. Individuals may be unaware that it is now a criminal offence, for both individuals and organisation, to undertake a regulated role without a valid and appropriate PVG membership. The Chief Officer (People Resources) should: (1) Ensure that, as part of the leavers process, the People Operations Team establish whether the position is a regulated role and if so, promptly notify Disclosure Scotland that the individual is no longer a person of interest. (2) Issue a communication to all employees advising of the legislative changes to the PVG scheme, particularly the new criminal offence for individuals. Low Agree Gillian Quinn, Employee Service Centre Manager (1) As part of the transfer of PVG records to iTrent, this work is already underway and all roles within iTrent that require a PVG are now clearly identified. Additionally, Disclosure Scotland has recently provided direct self-service access to its new system, which will allow the Employee Service Centre to directly indicate when the Council is no longer an interested party. This will make the leavers process significantly more efficient going forward, and the new facility is currently being tested. Previously, the Council had to notify Disclosure Scotland in writing when a staff member left, which was both time consuming and slow. (2) A communication will be drafted in March to issue to all staff, including information on the legal requirement to hold a PVG and to notify staff of the upcoming transition from the lifetime scheme to the five-year scheme. Information will also be included in the regular People Resources newsletter, which already goes to managers and staff on a regular basis. Thereafter, periodic communications will be issued to staff to remind them of their responsibilities. December 2026 Page 137 of 188
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30 INTERNAL AUDIT REPORT FINANCIAL SUSTAINABILITY Headlines The Council continues to face a complex range of challenges and significant financial pressures arising from increasing demand for services, rising costs, directed spending and limited options for generating additional income. Collectively, these factors make setting a balanced budget, while continuing to deliver statutory services, progressively more challenging. Therefore, the Council has produced a Financial Strategy which details how it plans to ensure sound financial governance and sustainable financial planning which underpins service delivery to meet the objectives of The Plan for North Lanarkshire. The purpose of this audit was to provide assurance on the adequacy and robustness of the Council’s approach to long-term financial sustainability. Based on the results of our work, we have categorised this audit as providing substantial assurance. We were pleased to note that the Council’s approach to long‑term financial sustainability is robust, supported by well‑established financial planning arrangements that operate effectively and provide assurance over sound financial management. This is clearly demonstrated through the Medium‑Term Financial Plan and Financial Outlook, which together form the financial planning framework. Additionally, the Council continues to operate within its revenue budget, reflecting strong financial controls and effective budget management. As a result, the Council has been able to maintain a sufficient level of reserves to support future budget pressures, demonstrating its financial resilience. However, the Council’s future financial position remains uncertain, and it is therefore imperative that the Council’s leadership and elected members remain fully cognisant, and continue to support ongoing review and active monitoring, of emerging pressures to ensure that the Council’s financial sustainability continues to be well managed. Internal Audit Opinion Substantial assurance Priority of Recommendations High Medium Low 0 0 1 Organisational Impact Minor Report status FINAL Audit ref 0300/2026/003 Date Issued 11/02/26 Audit Team Kimberley Hall and Lesley Armstrong Issued To Chief Officer (Finance and Technology) Copied To Chief Executive and Depute Chief Executive Page 138 of 188
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31 1. Executive Summary Objectives The audit sought to answer the following questions: • Is there a robust financial planning process, linking strategic objectives to a medium to long term financial strategy? Are key assumptions, risk and uncertainties clearly stated and do these appear reasonable? • Is there appropriate oversight and accountability for financial decisions, with elected members and senior officers receiving timely and relevant financial information and being engaged in financial planning processes? • Is progress against savings options monitored, reported and followed up where required? • Are there appropriate arrangements in place to monitor and report on progress of the delivery the areas for improvement identified by Chief Officers as part of the self-evaluation exercise against the CIPFA FM Code? This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • The Council has an approved Financial Strategy which includes a five-year medium term financial plan and sets out the overarching framework for financial governance, planning and management and outlines the approach to ensuring financial planning is fully integrated with the objectives of The Plan for North Lanarkshire and programme of work outcomes, and aims to ensure robust, affordable, sustainable and best value financial plans are developed to support decision making and prioritise the use of available resources. • The Council has a formal Revenue Resources Budget Strategy which sets out the key principles and framework to facilitate a robust and strategic approach to financial planning, including establishing budgets and associated savings and investment options. • Scenario planning is embedded in the budget setting process, providing transparency on potential budget gaps and associated risks. • Senior management hold regular budget meetings and briefing sessions with elected members throughout the budget‑setting process, ensuring members receive timely and relevant financial information to make informed decisions and set a balanced budget. • The Council’s Reserves Policy, which was recently updated and approved by the Policy and Strategy Committee in December 2025, sets out the guidelines for ensuring that reserves are established and managed in a way that safeguards long-term financial sustainability and supports good financial management, allowing the Council to balance current obligations and prepare for future commitments and financial risks. • Regular budget monitoring reports are presented to CMT, BMT and Committee providing timely updates on outturns, variances, financial risks and savings delivery. • The Council undertakes a self‑evaluation against the CIPFA FM Code every two years, using the results to identify areas for improvement, with progress on the implementation of improvement actions reported to BMT on a six-monthly basis. Key areas requiring management action (High Priority) No key areas requiring urgent management action have been identified. Other areas for improvement (Medium Priority) No areas requiring prompt management action have been idented. Page 139 of 188
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32 3. Action Plan FINANCIAL SUSTAINABILITY 0200/2026/003 Ref Finding 1 There is scope to improve the content of the biannual budget savings monitoring report. The Council produces and presents a biannual budget savings monitoring report to the Finance and Resources Committee, the purpose of which is to provide an update on the status of the approved three-year savings plan and identified savings that are projected to be unachievable. From our review of the most recent budget savings monitoring report, which was presented to the Finance and Resource Committee in September 2025, we have identified a few minor areas that we consider could be improved to strengthen the clarity, transparency and overall effectiveness of the report, as follows: • Whilst the current report provides an overview of progress against the approved savings programme by individual Service and identifies in-year savings gaps, it does not detail the nature of the individual savings which have been identified as no longer achievable, the specific reasons for these gaps or how replacement savings will be delivered. • Whilst future years’ savings have been approved and the budget savings monitoring report provides the combined savings totals for each Service and year, there is a lack of detailed information on the progress to date, emerging risks and likelihood of delivery of achieving these savings. Implication Recommendation Priority Management response Implementation Date There is a risk that the absence of detailed savings information in Council reports reduces transparency. Without clarity on savings, Chief Officers and/or elected members may be unable to make informed decision or take timely actions. The Chief Officer (Finance and Technology) should review the budget savings monitoring report and consider updating it to provide a clearer, more detailed, and forward-looking analysis of both in-year and future-year savings. Low Agree The Service will review the budget savings monitoring report and process prior to its scheduled presentation to Finance and Resources Committee in Cycle 3 2026. Responsible Officer: Kathleen Shearer Designation: Business Finance Manager September 2026 Page 140 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/LM/ASP/Mar26 Date 04/03/26 Internal Audit: Follow-up of implementation of audit recommendations From Francis Scott, Chief Officer (Audit and Risk) E-mail ScottFr@northlan.gov.uk Telephone 07887 914207 Executive Summary The purpose of this report is to update the Panel on the progress made by management in the implementation of Internal and External Audit recommendations. In the period to 31 December 2025, of the 27 High and Medium priority recommendations that were due, 11 have been fully implemented, 15 remain outstanding and one has been deemed no longer relevant. Of the 15 recommendations that remain outstanding, two have an implementation date which is more than 12 months overdue. Since April 2021, 94% of all relevant audit recommendations have been satisfactorily implemented by Services, meaning that only 6% of these audit recommendations remain outstanding. In respect of recommendations from External Audit reports, seven of the 20 agreed actions have been completed, four are partially implemented, one is no longer relevant and eight are not yet due. Recommendations The Panel is invited to: (a) Note the contents of this report. (b) Consider whether there are any issues arising from this report on which they wish to receive further information from relevant management. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work All Programmes of Work Item 10 Page 141 of 188
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1. Background 1.1 This report presents an overview of the progress of all High and Medium priority Internal Audit recommendations in the period to 31 December 2025. 1.2 This report also provides an update on progress made in addressing recommendations arising from External Audit reports issued as part of the 2022-23, 2023-24 and 2024- 25 audits. 1.3 The updates from management on progress to date have been verified on a sample basis by Internal Audit as part of the preparation of this report. However, it should be noted that this review has focused on whether planned actions have been completed and has not included detailed substantive testing of whether the implemented actions have been effective in addressing previously identified weaknesses. 2. Report Internal Audit recommendations 2.1 Table 1 below summarises the progress of all High and Medium priority recommendations which were due to be completed in the period to 31 December 2025. Overall, 11 of the agreed actions have been completed, one has been deemed no longer relevant and 15 remain outstanding. Table 1 Completed No Longer Relevant Outstanding Total Chief Officer Area Assets and Procurement 1 0 1 2 Community Operations 4 0 4 8 Education 3 1 2 6 Finance and Technology 0 0 2 2 Legal and Democratic 2 0 0 2 People Resources 1 0 3 4 Strategy and Engagement 0 0 3 3 TOTAL 11 1 15 27 2.2 For the 15 outstanding recommendations, revised implementation dates have been agreed. Appendix 1 provides detail of these recommendations with an update on progress provided by service management. Appendix 1 also references instances where the original implementation date of a recommendation was more than 12 months overdue. In this period there are two such actions, referenced 1.1 and 1.2 in the appendix. Relevant Chief Officers have been invited to attend the Panel meeting to provide explanations. 2.3 The one recommendation assessed as no longer relevant is from the audit of School Funds at School H and relates to the closure of an old bank account. The Chief Officer has advised that they have exhausted all avenues with the bank but have been unable to close the account. On that basis the Chief Officer has requested to have the recommendation closed without being fully implemented and has accepted the risk in relation to this. Details of this recommendation are referenced in Appendix 2. Page 142 of 188
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2.4 As at 31 December 2025, 94% of all relevant audit recommendations, where the original agreed implementation date was either due or had passed, have been fully implemented by Services, meaning that the percentage overall of all audit recommendations made since April 2021, which remain outstanding, is 6%. This shows a slight dip in performance since the last period when 97% were complete and 3% were outstanding. External Audit recommendations 2.7 Table 2 shows the status of actions agreed by management in response to External Audit reports issued as part of the 2022-23, 2023-24 and 2024-25 audits. As at 31 December 2025, seven of these recommendations are complete, four are partially implemented, eight are not yet due and one is no longer relevant. Table 2 Completed Partially implemented Not yet due No longer relevant Total Report Title 2022-23 Annual Report 2021/22 1 1 0 1 3 Best Value Thematic Report 3 0 0 0 3 2023-24 Annual Report 2 1 2 0 5 Best Value Thematic Report 1 2 0 0 3 2024-25 Annual Report 0 0 4 0 4 Best Value Thematic Report 0 0 2 0 2 TOTAL 7 4 8 1 20 2.8 The action reported as no longer relevant refers to issues relating to capital processes. Two of the three points made within this action have been implemented and the third has been superseded by an action raised in the 2024-25 External Audit Annual Report. 2.9 A six-monthly tracking report of progress in implementing these recommendations will be presented to the May meeting of the Panel. 3. Measures of success 3.1 Internal Audit reports each cycle to the Audit and Scrutiny Panel on the progress made by management in implementing actions in response to Internal and External Audit reports. Page 143 of 188
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4. Supporting documentation Appendix 1 Register of Outstanding Internal Audit Recommendations Appendix 2 Internal Audit Recommendations No Longer Relevant Francis Scott Chief Officer (Audit and Risk) Page 144 of 188
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact because of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Failure by Services to address previously identified issues and/or weaknesses will impact on the effectiveness of the relevant control framework. This, depending on the nature of the issue, will be captured and should be reflected in the relevant service risk register or the corporate risk register (as appropriate). 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ Page 145 of 188
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APPENDIX 1 – Register of Outstanding Internal Audit Recommendations Ref. Report Details Recommendation Original & revised timescales Management update 1.1 Chief Officer (Education) School Excursions (October 2023) The Chief Officers of Education (North and South) should ensure that: (1) A comprehensive formal review of both the Council’s Educational Excursions and Outdoor Activities Policy and the Risk Assessment Guidance on Educational Excursions and Outdoor Activities is undertaken to revisit and refresh all aspects of these documents with a view to improving the robustness of the Council’s arrangements associated with school trips and excursions. This should take account of, but not limited to, the information contained in Appendix 2 and the need for roles and responsibilities of all relevant parties, including those within other Council services to be clearly documented in the revised guidance. (2) Any revised arrangements are fully communicated to all Council Services with a role in the process. (3) They explore how best to gather/record details of all school trips and excursions and thereafter monitor compliance with the Council’s expected arrangements associated with such trips and excursions. Priority: High April 2024 March 2025 September 2025 June 2026 (>12 months overdue) A review has been undertaken by HQ officers to re-assess the scope and delivery time of the project. This review identified a number of technical tasks which require to be undertaken, including systems reviews and alignment with other Service and Council policies. The Head Teachers have been briefed on the requirement to undertake a review of the policy, and a short life working group has been created. Due to the nature of the task, and to comply with all of the Internal Audit recommendations, this work will now be undertaken in line with the Council’s project management arrangements/guidelines. A project outline and work plan has been developed with formal working group meetings scheduled to begin in January 2026. In the interim, best practice advice has, and will, continue to be given to schools based on the existing policy. The delay in implementation is largely due to staff resources being allocated to responding to school transport issues and enquiries. Going forward, there will be greater clarity regarding the post(s) within the Resources Team which will have HQ governance responsibility for overseeing school trip/excursion policy and activity. Page 146 of 188
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Ref. Report Details Recommendation Original & revised timescales Management update 1.2 Chief Officer (Education) School Excursions (October 2023) The Chief Officers of Education (North and South) should: (1) as part of the formal review referenced at Action Plan point 1 above, ensure that this includes the creation of a dedicated section within the policy and/or associated procedures which outlines clear expectations around the financial aspects associated with the organisation and execution of trips. This should include, but not be limited to: (a) A clear and detailed protocol for booking trips where a travel company/tour operator is not going to be used ensuring arrangements minimise the risks associated with such payments and ensure that the use of personal credit cards to book trips is prohibited. (b) Consideration to promoting iPay Impact as the primary means for collecting monies in schools thus reducing cash payments and the subsequent flow of physical cash in the school. (c) Determining the additional checks/monitoring that need to be carried out at establishment level to ensure all monies due are received and duly banked in line with Council policy. (d) clear guidance on the levels of physical cash that can/should be taken on a trip/excursion, the required records to be completed and documentary evidence required/expected to support any such spend. Priority: High April 2024 March 2025 September 2025 June 2026 (>12 months overdue) A review has been undertaken by HQ officers to re-assess the scope and delivery time of the project. This review identified a number of technical tasks which require to be undertaken, including systems reviews and alignment with other Service and Council policies. The Head Teachers have been briefed on the requirement to undertake a review of the policy, and a short life working group has been created. Due to the nature of the task, and to comply with all of the Internal Audit recommendations, this work will now be undertaken in line with the Council’s project management arrangements/guidelines. A project outline and work plan has been developed with formal working group meetings scheduled to begin in January 2026. In the interim, best practice advice has, and will, continue to be given to schools based on the existing policy. The delay in implementation is largely due to staff resources being allocated to responding to school transport issues and enquiries. Going forward, there will be greater clarity regarding the post(s) within the Resources Team which will have HQ governance responsibility for overseeing school trip/excursion policy and activity. Page 147 of 188
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Ref. Report Details Recommendation Original & revised timescales Management update 1.3 Chief Officer (Finance and Technology) Use of Purchase Cards (January 2025) The Chief Officer (Finance) should ensure that the Policy expectation for Treasury to undertake the system administrator role is implemented with all key responsibilities of that role being fully undertaken, including an annual review of all active cards. Priority: Medium June 2025 October 2025 March 2026 Work has been undertaken with the Royal Bank of Scotland (RBS) (card provider) to update the online card management process and enable credit and purchase cards to be managed within the same portal, with training being provided by the Royal Bank of Scotland. The portal works well with an appropriate level of reporting for service(s) and reconciliation/ledgering of expenditure. The RBS have recommended that current physical purchase cards be cancelled and re-issued to be incorporated within the current credit card portal thus enabling greater consolidated management of physical cards within the Treasury function. An initial draft review of the Policy review has been undertaken, pending changes to be incorporated as a result of review findings and a roll out of the Purchase to Pay (P2P) model. A consolidated Card Policy, encompassing both physical and virtual cards, and providing clearer guidance on appropriate use of such cards is being developed. Delay in the implementation of this recommendation is due to the availability of resources, both internal and external, and prioritisation of work. 1.4 Chief Officer (Community Operations) Fleet Management (October 2025) The Chief Officer (Community Operations) should implement a formal asset disposal process that clearly outlines roles, responsibilities, and required documentation in line with Financial Regulations. This process should ensure that all disposals are subject to documented approval prior to execution. Priority: Medium October 2025 March 2026 All vehicles now require to be approved, or otherwise, by the Business Manager prior to the vehicle being sold and, going forward, a Disposal Working Group has been established to approve vehicles for auction. The process will now be formally documented outlining associated roles, responsibilities and required documentation. Delay in implementation is largely due to competing priorities. 1.5 Chief Officer (Community Operations) Fleet Management (October 2025) The Chief Officer (Community Operations) should consider implementing a formal process to routinely validate the accuracy and completeness of vehicle data within Freeway, supported by periodic audits and staff training. This will help ensure that maintenance schedules are adhered to, legal and regulatory requirements are met, and risks to vehicle safety and service continuity are effectively mitigated. Priority: Medium October 2025 March 2026 A process is now in place to validate the vehicle data when a new vehicle is added to the fleet management system, with second officer checks thereafter undertaken. Additionally, a comprehensive review of all vehicle data held within the Freeway system is underway and once complete will identify any gaps in vehicle servicing documentation. Delay in implementation is largely due to competing priorities. Page 148 of 188
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Ref. Report Details Recommendation Original & revised timescales Management update 1.6 Chief Officer (Community Operations) Fleet Management (October 2025) The Chief Officer (Community Operations) should: (1) Consider introducing second-officer verification for critical data inputs into Freeway, particularly during vehicle profile setup, to improve data accuracy and reliability. (2) Consider expanding the existing compliance audit process currently used in waste management to cover the wider fleet, ensuring consistent oversight and promoting continuous improvement across all service areas. Priority: Medium October 2025 August 2026 Compliance checks across the entire fleet are still in progress and have not yet been completed. The process is expected to be fully completed in the new year. Delay in implementation is largely due to this action requiring a significant resource commitment. 1.7 Chief Officer (People Resources) ESC: Selected Controls (July 2025) The Chief Officer (People Resources) should identify and correct any issues/errors arising from the finding, particularly in relation to casual worker payments being allocated to posts with contracted hours and/or casual/sessional workers in receipt of payments which they are not entitled to. Priority: Medium October 2025 December 2026 Due to changes in staffing, there has been no definitive action taken to date with regards to identifying and correcting the issues and/or errors arising from the finding. Going forward, each of the cases identified will be individually reviewed to determine what the errors were and take the appropriate corrective action whilst taking account of any special/local agreements in place. In the longer term, the Service envisage that such issues will effectively disappear when the Paid Time module is fully implemented. 1.8 Chief Officer (People Resources) ESC: Selected Controls (July 2025) The Chief Officer (People Resources) should: (1) Consider reviewing and updating the spreadsheet for recording second officer checks to include additional columns to more clearly state the checks undertaken, whether the outcome of the checks was satisfactory or not, any issues arising, details of any follow-ups and escalation and the status of the check. (2) Introduce a process for undertaking regular follow-up and escalation of outstanding issues to ensure that issues arising from second officer checks are resolved in a timely and consistent manner. (3) Introduce a formal process for identifying and reporting to management any recurring issues arising from second officer checks and, thereafter, use this information to inform training sessions for officers processing employee changes. Priority: Medium October 2025 April 2026 The spreadsheet tracker will be reviewed and amended to reflect the requirements as per the recommendation. A revised process is being devised for implementation in early 2026 and this will include a Senior Team Lead check to identify issues and prevent incorrect payments from being made. While there is a process in place to identify recurring issues arising from second officer checks and issue further guidance/training to address these, this is not formally documented or reported. A summary report will be created and distributed to Team Managers. The delay in implementation is due to competing priorities within the Service. Page 149 of 188
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Ref. Report Details Recommendation Original & revised timescales Management update 1.9 Chief Officer (Finance and Technology) Payroll: Leavers’ Process (October 2025) The Chief Officer (Finance and Technology) should ensure that the ICT Leavers’ checklist is reviewed and updated to reflect and reference current practices. Consideration should be given to developing and issuing guidance/instructions on the completion, submission and retention of this document. Priority: Medium November 2025 March 2026 The ICT Leaver’s Checklist does not sit with IT, albeit that there are some actions where IT provide, or are provided with information. Other points within the checklist relate to the Operations Teams. However, the Technology Strategy Manager will liaise with the Systems and Analytics Manager in ESC to discuss the best way forward. He will also instruct the staff within his Teams to review and update the document, and associated guidance, as appropriate in line with the audit recommendation. The delay in implementation is as a result of the checklist spanning a number of different areas with no-one having assumed responsibility for the review and maintenance/update of the document. 1.10 Chief Officer (People Resources) ESC: Selected Controls (July 2025) The Chief Officer (People Resources) should explore the implementation of additional controls within the Portal to prevent authorised users from being able to submit requests relating to their own pay and conditions. Priority: Medium November 2025 April 2026 The Service are currently scoping what measures and controls are currently in place to prevent authorised users from being able to submit requests relating to their own pay and conditions and a follow-up discussion will be planned to discuss either strengthening these existing controls or implementing additional ones. The delay in implementation is due to competing priorities within the Service. 1.11 Chief Officer (Assets and Procurement) Climate Control (November 2023) The Depute Chief Executive (as SRO for the Sustainable Futures Thematic Board) should, as a matter of priority: (1) Create a formal detailed action plan/route map setting out in SMART terms planned actions designed to achieve net zero/ deliver the Council’s climate change commitments. This should be regularly updated and include information on responsible officers/ expected timescales, costs and other resource requirements and include a mechanism for tracking, monitoring and reporting on progress against key milestones/targets to relevant key stakeholders. (2) As part of the preparation of a detailed route-map, review whether the current timescale for reaching net zero by 2030 remains realistic/achievable, reporting the outcome of this review, along with any revised target dates/milestones, to relevant stakeholders. Priority: High December 2025 June 2026 One of the deliverables of the Sustainable Futures Programme of Work Board was to develop a route map to net zero that incorporates climate resilience (adaptation) and provides strategic actions as to how the Council will move to net zero. As part of this, the Council committed to producing a new net zero pathway containing costed actions resulting in a realistic timescale and targets. This will replace the Climate Plan ACT 2030 and will look to determine solutions that will enable the Council to meet its climate change duties. While the Net Zero and Resilience Pathway has been developed, it has been agreed by the Depute Chief Executive and the Chief Officer (Assets and Procurement) that due to the timing of the Scottish Government’s consultation on its draft Climate Plan, to delay bringing it before Committee. Page 150 of 188
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Ref. Report Details Recommendation Original & revised timescales Management update 1.12 Chief Officer (Community Operations) Fleet Management (October 2025) The Chief Officer (Community Operations) should undertake a review of current procurement practices for MOT testing and specialist vehicle repairs to identify instances of recurring non-contract spend and assess the operational reliance on external providers. Priority: High December 2025 March 2026 The Service have reviewed their current process for conducting MOTs. They have initiated the process for in-house provision and are now awaiting approval from the DVSA before implementation. Once approved, the workshop will no longer require external support for light fleet MOTs. Delay in implementation is due to ongoing engagement with the DVSA and calibration of new equipment. 1.13 Chief Officer (Strategy and Engagement) Project Management Quality Assurance (March 2025) The Chief Officer (Business and Digital) should ensure that the existing detailed quality assurance arrangements and expected practices for assessing compliance with the Project Management Framework are consolidated into a single format document and expanded to include other areas of the process as outlined in the finding. December 2025 March 2026 The Project Management Framework and Programme of Work governance document are being updated to reflect all developments around the Programme of Work that have been implemented during 2025 in relation to the governance and delivery of council projects. Such developments relate to interdependencies, lessons learned and benefits realisation in addition to the quality assurance process and these will be consolidated into a single formal document. A report is being prepared to be submitted to the BMT in respect of the update to the Project Management Framework and Programme of Work governance document. In addition, the annual quality assurance report is also being prepared for submission to the Audit and Scrutiny Panel. Delay in implementation is largely due to the timings of the Committee cycles. 1.14 Chief Officer (Strategy and Engagement) Community Assets Transfer (October 2025) To take cognisance of the areas for improvement highlighted in the finding, the Chief Officer (Strategy and Engagement) should: (1) Ensure the guidance notes are finalised and issued, and that formal written policies are developed and implemented to guide officers in reviewing and assessing CAT applications. (2) Implement a conflict of interest declaration process for all officers involved in assessing and making decisions on CAT applications. December 2025 March 2026 A review of the documentation is underway, and early meetings have taken place with key Services to consider the best approach. While some of the review paperwork has been shared with Services for review and discussion, there has been an element of challenge in securing dates for review meetings within the original timescales which has led to a delay in the implementation of the recommendation. Such meetings are required to ensure that the approach is collaborative and meets the needs of the key Services. Those involved are keen to ensure that the review is robust. Page 151 of 188
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Ref. Report Details Recommendation Original & revised timescales Management update 1.15 Chief Officer (Strategy and Engagement) Community Assets Transfer (October 2025) The Chief Officer (Strategy and Engagement) should: (1) Ensure that formal minutes of Scoring Panel meetings, providing details of discussions held and discussions made, are taken. (2) Update the e-mail circulated to all members of the Scoring Panel to clearly set out the expectations for Panel members to confirm their agreement with the final assessment report or provide comments. December 2025 March 2026 More formal minute taking arrangements and the e-mail circulated to all members of the Scoring Panel to clearly set out the expectations for Panel members to confirm their agreement with the final assessment report or provide comments will be implemented with immediate effect, following receipt of the next CAT application and subsequent assessment. The delay in implementation is due to there having been no CAT applications received within the time period since the audit recommendations were agreed. Page 152 of 188
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APPENDIX 2 – Internal Audit Recommendations No Longer Relevant The following recommendation has been closed without being fully implemented. The Chief Officers responsible have confirmed that they will accept the risk. Ref. Report Details Recommendation Original & revised timescales Justification 2.1 Chief Officer (Education) School H – School Funds (December 2024) Education should ensure that, as a matter of urgency, liaise with the Bank of Scotland to establish the current balance and a list of any transactions from February 2020 to date for both the Primary School and Nursery accounts. Once established, arrangements should be made for any balance remaining to be transferred to the current bank account for the school and nursery and these ‘old’ accounts closed. Priority: High December 2024 May 2025 September 2025 November 2025 While the Bank of Scotland have now closed the bank account for the Primary School and transferred the monies to their current bank account, this process has not been completed for the Nursery Class Tuck Shop bank account. The Head Teacher has made numerous futile attempts to determine who the signatories to this Nursery Class bank account are/were. None of the existing staff at the School/Nursery are signatories to the bank account and the bank are not willing to divulge this information due to GDPR. The Senior Education and Families Manager has advised that the Nursery Class Tuck Shop bank account has not been used for several years. Indeed, the last bank statement held is from January 2020 and shows a balance of £36.22 on the account. The Service perceive the risk attached to be minimal and have advised that they are willing to accept this risk. They have requested that the recommendation thus be closed without being fully implemented. The Service advised that they will, however, re-engage with the bank if new information becomes available. Page 153 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/ASP/RMFeb 26 Date 26/02/26 Risk Management Update From Francis Scott, Chief Officer (Audit and Risk) E-mail ScottFr@northlan.gov.uk Telephone 07887 914207 Executive Summary This report seeks to support the Audit and Scrutiny Panel in the discharge of the aspect of its remit of monitoring the effective development and operation of risk management in the Council. The report provides an overview the Corporate Risk Register (CRR) and developments on Corporate Risks since the November update. Included in this report is a high-level summary of Service Risk Registers (SRRs) and a comparison of the current residual risk profile with the profile reported to the Panel in August. The report concludes with a summary of other risk management developments and the key considerations of the Risk Management Corporate Working Group (RMCWG) within the reporting period. Recommendations The Panel is asked to consider the contents of the report and note: (1) the CRR for 2025-26 as detailed in Appendix 1. (2) the changes to corporate risk assessments in sections 2.2 – 2.4. (3) the overview of high scoring service level risks at 2.5 and Appendix 2. (4) the results of a Corporate Risk Benchmarking exercise detailed in Appendix 3 and described at section 2.6 (5) the summary of other risk management developments as noted from section 2.8. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 11 Page 155 of 188
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1. Background 1.1 The Audit and Scrutiny Panel terms of reference include the remit to monitor the effective development and operation of risk management in the Council. This report supports the Panel in discharging that aspect of its remit by providing an overview of how certain requirements of the Risk Management Strategy have been delivered during the reporting period. 2. Report Corporate Risk Register 2025-26 2.1 The CRR for 2025-26 is included at Appendix 1. This version includes any changes captured since the update to Panel in November. Risks on the CRR are subject to ongoing monitoring and review, with higher scoring risks being subject to more frequent review. Management considers factors such as changes in the operating environment, the effectiveness of existing controls, the development of additional controls and progress of agreed actions to determine whether it would be appropriate to adjust the risk assessment in line with the Risk Management Strategy. Changes to Corporate Risk Assessments 2.2 The Internal Audit report on Cyber Security, reported to the Panel in August, highlighted that Cyber Security did not have a discrete entry on the CRR. Whilst the key features of Cyber Risk were captured within the Corporate Risk titled Information Security and Information Governance, management have agreed to disaggregate this risk. As a result, the Information Security and Information Governance risk has been closed and replaced by three new risks, Cyber Security, Information Governance and Information Security each with their relevant controls. The new risks are highlighted in Appendix 1. 2.3 The Climate Change risk captures the uncertainty around delivering on the Council’s obligations pertaining to environmental protection. At the latest review of this risk management noted the progress made in emission reduction, circa 50% since 2016. Based on this reduction and the ongoing implementation of additional controls and actions management agreed a reduction in residual likelihood from 5 to 3 which had the effect of reducing the residual risk rating to 12. 2.4 The uncertainty captured in the Home Support service delivery / sustainability risk has been revisited by management. A revised risk has been developed with a focus on current and emerging operational challenges. Service Risk Registers – risks with highest residual scores 2.5 SRRs are maintained and reviewed through the support of the Service Risk Champion and Risk Facilitator network. A summary of the changes in residual risk profile across our SRRs during the period is shown in the table below. Further detail on the high scoring risk is available in Appendix 2. Page 156 of 188
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Corporate Risk Benchmarking 2.6 At the previous Panel meeting in August, members requested information on benchmarking of corporate risks with other local authorities. Detailed comparison and benchmarking can be challenging due to differences across authorities (for example the tools used and how information is interpreted and applied in the risk management process). A form of benchmarking used annually in the horizon scanning exercise was presented to the Panel in November 2025. 2.7 The Scottish Local Authorities Chief Internal Auditors’ Group (SLACIAG) has completed an exercise to benchmark corporate risks from Scottish local authorities. The results of this exercise are included within Appendix 3. Other Risk Management Developments 2.8 The RMCWG co-ordinates activities and resources to implement the Risk Management Strategy and promote good risk management practice throughout the Council. There were two sessions of the RMCWG since the last report to Panel, with the notable discussion points noted below: • Risk Management Information System – implementation of refinements to capture additional review information • Training – mandatory internal training, acting on feedback to develop service specific examples Insignificant Low Medium High Very High Total Jul 2025 Jan 2026 Jul 2025 Jan 2026 Jul 2025 Jan 2026 Jul 2025 Jan 2026 Jul 2025 Jan 2026 Jul 2025 Jan 2026 Chief Executive Services 40 40 57 57 35 36 5 3 0 0 137 136 Education & Families 8 8 14 14 22 22 1 1 0 0 45 45 Adult Health & Social Care 0 0 7 7 11 13 0 0 0 0 18 20 Enterprise & Communities 30 31 130 124 84 75 9 10 0 0 253 240 Page 157 of 188
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2.9 During the reporting period Risk Champions have completed the risk management compliance assessment for services. This is utilised to identify areas where additional support may be required from the Corporate Risk Team under the headings of People, Process and Governance. The outcomes are discussed with our Risk Champions to agree how best to provide support. 2.10 We are grateful to the Internal Audit team for the work in reviewing the risk management arrangements during the reporting period. The outcome of their independent scrutiny will enable us to improve our service offering in line with best practice. 2.11 As we approach the conclusion of the term of our Risk Management Strategy, a review has been undertaken and a draft revised strategy covering the period 2026 – 2028 is currently subject to consultation with management stakeholders. The draft includes changes to reflect relevant findings from the internal audit report. Subject to any necessary adjustments based on management feedback, a revised strategy will be presented to the Policy and Strategy Committee for approval in March 2026. 3. Measures of success 3.1 The Corporate Risk Team will continue to report quarterly to CMT and the Audit and Scrutiny Panel, providing an overview of key developments in risk management and updating on progress in respect of planned improvements to the Council’s risk management arrangements. 3.2 The adequacy and effectiveness of the Council’s risk management arrangements will be subject to independent review by Internal Audit, who will report directly on the results of that work to the Audit and Scrutiny Panel. 3.3 Effective risk management arrangements assist the Council in achieving planned outcomes and/or help the Council mitigate the impacts of adverse events. 4. Supporting documentation Appendix 1: Corporate Risk Register 2025 - 2026 Appendix 2: Highest Scoring Service Risk Register Entries Appendix 3: Scottish Local Authorities Chief Internal Auditors’ Group – Corporate Risk Benchmarking Francis Scott Chief Officer (Audit and Risk) Page 158 of 188
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact because of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If yes, please provide a summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Effective risk management arrangements will enable the Council to manage its risks more effectively, increasing the likelihood of the Council achieving its plans and ambitions by minimising or mitigating potential threats to planned outcomes. A robust risk management strategy lays out the framework and underpins all risk management activity across the organisation. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex-Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ Page 159 of 188
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Appendix 1 – Corporate Risk Register 2025-26 CORPORATE RISKS (Operational) Likelihood Impact Rating Evaluation Change 1. Cyber Security 5 4 20 High New 2. Home support 4 5 20 High New 3. Information governance 5 4 20 High New 4. ICT operational capability 5 4 20 High No 5. Human resources (workforce planning) 4 4 16 High No 6. Public protection 4 4 16 High No 7. Health and Safety 5 3 15 Medium No 8. Business continuity planning 5 3 15 Medium No 9. Terrorism 3 5 15 Medium No 10. Information Security 4 3 12 Medium New 11. Governance, leadership and decision-making 3 4 12 Medium No 12. Procurement risk 3 4 12 Medium No 13. RAAC 3 4 12 Medium No 14. Failure of Council’s Resilience Planning Arrangements 2 5 10 Medium No 15. Enterprise Contract Management 2 5 10 Medium No 16. Serious organised crime, fraud and corruption 3 3 9 Medium No CORPORATE RISKS (Strategic) Likelihood Impact Rating Evaluation Change 17. Tackling poverty 5 4 20 High No 18. Power resilience (Black Start) 4 5 20 High No 19. Digital adoption 4 4 16 High No 20. Improving educational outcomes 4 4 16 High No 21. Financial sustainability 3 5 15 Medium No 22. Digital and IT strategy 4 3 12 Medium No 23. Climate change 3 4 12 High Was 20 24. Engagement and consultation 3 3 9 Medium No 25. Delivery of approved programme of work 2 4 8 Low No CLOSED / DEFERRED Likelihood Impact Rating Evaluation Change 26. Home support service delivery/ sustainability 4 5 20 High Closed 27. Information security and governance 5 4 20 High Closed Page 160 of 188
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Appendix 2 – Highest Scoring Service Risk Register Entries Risk Number Title Residual Risk Score Service RIA0000372 Inadequate staffing levels or expertise to provide advice and support to the council, its ALEOs and elected members. 20 Chief Executive's RIA0000039 Organisational capacity and retention of staff 16 Chief Executive's RIA0000020 Failure to implement business change / service redesign thus impacting on stated benefits realisation 16 Chief Executive's RIS0000671 Advocacy and Representation for Residents 16 Education & Families RIS0000754 Revocation of Section 19 Permit re School Transport 20 Enterprise and Communities RIS0000612 General Workforce within Housing 20 Enterprise and Communities RIA0000223 Service failure due to loss in IT capability 20 Enterprise and Communities RIA0000012 HSMS Maintenance & Development 16 Enterprise and Communities RIS0000315 Management of Service Users Recorded under MAPPA within the Community (Outed Cases) 16 Enterprise and Communities RIS0000617 General Workforce - Place 16 Enterprise and Communities RIS0000709 Impact of staffing issues on service provision 16 Enterprise and Communities RIA0000109 Failure of key unsupported business systems 16 Enterprise and Communities RIS0000395 Inability to provide a service due to staffing/ training/ absence etc. 16 Enterprise and Communities RIS0000744 Decommissioning of B: Drive and subsequent loss of reliant databases and data 16 Enterprise and Communities Page 161 of 188
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Appendix 3 – Scottish Local Authorities Chief Internal Auditors’ Group – Corporate Risk Benchmarking 18 12 16 14 24 22 7 12 11 7 31 18 6 1 18 22 17 13 10 10 9 18 17 6 12 9 7 16 13 6 1 12 16 17 0 5 10 15 20 25 30 35 Sum of Risks in Category Authorities with a Risk in this Category Notes Responses submitted by 18 Councils. Risks noted in each Council’s Corporate Risk Register allocated to broad categories. Chart shows: • The number of Council risks allocated to each broad category • The number of Councils with risks in that category Risks from the North Lanarkshire Corporate Risk Register (23 in total*) are allocated to all categories except for: • Economic Risks • Legal Regulatory Risks • Service Delivery Risks * At time of benchmarking submission Page 162 of 188
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/AS/AAP25-26 Date 04/03/26 Audit Scotland – Annual Audit Plan 2025-26 From Chief Officer (Audit and Risk) E-mail scottfr@northlan.gov.uk Telephone 07887 914207 Executive Summary The purpose of this report is to provide members with sight of the Annual Audit Plan 2025- 26 received from Audit Scotland, the Council’s appointed external auditors. The Annual Audit Plan 2025-26 is included at Appendix 1 and provides an overview of key issue arising from the audit planning process including a summary of the proposed audit approach, how wider scope work will be carried out and a timetable for key audit outputs. The external auditors will speak to the Panel about their plans and highlight to members any issues arising from their planning process that they wish to bring to the Panel’s attention. Recommendation The Panel is requested to invite Audit Scotland to comment on their planned approach to the 2025-26 audit of the Council. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 12 Page 163 of 188
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1. Background 1.1 The Accounts Commission appointed Audit Scotland as the Council’s external auditor for the five-year period from 2022-23. 1.2 Audit Scotland’s Code of Audit Practice and International Standards on Auditing stipulate that the areas to be examined and expected outputs to be produced by the external auditors require to be outlined each year in their annual planning document. 2. Report 2.1 The Annual Audit Plan is included at Appendix 1. 2.2 The Plan provide an overview of the key issues arising from the audit planning process including a summary of the proposed audit approach, consideration of key audit risks, how wider scope audit work will be carried out and a timetable for key audit outputs. 2.3 Panel members should note that good professional practice requires the external auditor to communicate and discuss planned external audit activity with senior management and with those elected members charged with governance matters, but it is for the external auditor alone to determine the work considered necessary to fulfil their responsibilities. 3. Measures of success 3.1 The external auditor will report annually to the Council and the Controller of Audit on the results of their work. 4. Supporting Documentation Appendix 1 – Audit Scotland Annual Audit Plan 2025-26 Francis Scott Chief Officer (Audit and Risk) Page 164 of 188
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Report notes fee payable for external audit work for 2025-26. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 165 of 188
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Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 166 of 188
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North Lanarkshire Council Annual Audit Plan 2025/26 Prepared for North Lanarkshire Council February 2026 Page 167 of 188
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North Lanarkshire Council Annual Audit Plan | 2 Contents Introduction 3 Audit scope and responsibilities 4 Audit of the annual accounts 6 Wider scope audit 13 Best Value audit 15 Reporting arrangements, timetable and audit fee 17 Other matters 20 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility. Page 168 of 188
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Introduction | 3 Introduction Purpose of the Annual Audit Plan 1. The purpose of this Annual Audit Plan is to provide an overview of the planned scope and timing of the 2025/26 audit of North Lanarkshire’s annual accounts. It outlines the audit work planned to meet the audit requirements set out in auditing standards and the Code of Audit Practice, including supplementary guidance. Appointed auditor and independence 2. John Boyd, of Audit Scotland, has been appointed by the Accounts Commission as external auditor of North Lanarkshire Council, hereafter referred to as ‘the council’, for the period from 2022/23 until 2026/27. The 2025/26 financial year is therefore the fourth of the five-year audit appointment. 3. John Boyd and the audit team are independent of the council in accordance with relevant ethical requirements, including the Financial Reporting Council’s Ethical Standard. This standard imposes stringent rules to ensure the independence and objectivity of auditors. Audit Scotland has robust arrangements in place to ensure compliance with ethical standards. The arrangements are overseen by the Executive Director of Innovation and Quality, who serves as Audit Scotland’s Ethics Partner. 4. The Ethical Standard requires auditors to communicate any relationships that may affect the independence and objectivity of the audit team. There are no such relationships pertaining to the audit of the council to communicate. Page 169 of 188
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Audit scope and responsibilities | 4 Audit scope and responsibilities Scope of the audit 5. The audit is performed in accordance with the Code of Audit Practice, including supplementary guidance, International Standards on Auditing (UK), and relevant legislation. These set out the requirements for the scope of the audit which includes: An audit of the financial statements and an opinion on whether they give a true and fair view and are free from material misstatement. An opinion on statutory other information published with the financial statements in the annual accounts, namely the Management Commentary and the Annual Governance Statement. An opinion on the audited part of the Remuneration Report. Conclusions on the council's arrangements in relation to the wider scope areas: Financial Management, Financial Sustainability, Vision, Leadership, and Governance, and Use of Resources to Improve Outcomes. Reporting on the council’s arrangements for securing Best Value. Providing assurance on the Housing Benefit Subsidy Claim, Non- Domestic Rates Return, and the Whole of Government Accounts Return. A review of the council’s arrangements for preparing and publishing statutory performance information. Provision of an Annual Audit Report setting out significant matters identified from the audit of the annual accounts and the wider scope areas specified in the Code of Audit Practice. Responsibilities 6. The Code of Audit Practice sets out the respective responsibilities of the council and the auditor. A summary of the key responsibilities is outlined below. Auditor’s responsibilities 7. The responsibilities of auditors in the public sector are established in the Local Government (Scotland) Act 1973. These include providing an independent opinion on the financial statements and other information Page 170 of 188
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Audit scope and responsibilities | 5 reported within the annual accounts, and concluding on the council’s arrangements in place for the wider scope areas and to secure Best Value. The council’s responsibilities 8. The council has primary responsibility for ensuring proper financial stewardship of public funds, compliance with relevant legislation and establishing effective arrangements for governance, propriety and regularity that enables it to successfully deliver its objectives. The features of proper financial stewardship include: Establishing arrangements to ensure the proper conduct of its affairs. Preparation of annual accounts, comprising financial statements that give a true and fair view and other information. Establishing arrangements for the prevention and detection of fraud, error and irregularities, and bribery and corruption. Implementing arrangements to ensure its financial position is soundly based. Making arrangements to secure Best Value. Establishing an internal audit function. Page 171 of 188
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Audit of the annual accounts | 6 Audit of the annual accounts Introduction 9. The audit of the annual accounts is driven by materiality and the risks of material misstatement in the financial statements, with greater attention being given to the significant risks of material misstatement. This chapter outlines materiality, the significant risks of material misstatement that have been identified, and the impact these have on the planned audit procedures. Materiality 10. The concept of materiality is applied by auditors in planning and performing an audit, and in evaluating the effect of any uncorrected misstatements on the financial statements or other information reported in the annual accounts. 11. Broadly, the concept of materiality is to determine whether matters identified during the audit could reasonably be expected to influence the decisions of users of the financial statements. Auditors set a monetary threshold when determining materiality, although some issues may be considered material by their nature. Therefore, materiality is ultimately a matter of the auditor’s professional judgement. 12. The materiality levels determined for the audit of the council and its group are outlined in Exhibit 1. Exhibit 1 2025/26 Materiality levels for the council and its group Materiality The council Group Materiality – based on an assessment of the needs of users of the financial statements and the nature of the council operations, the benchmark used to determine materiality is gross expenditure, adjusted for contributions to the North Lanarkshire Integration Joint Board as the underlying expenditure is included within the council accounts. This is based on the audited 2024/25 financial statements. Materiality has been set at 2% of the benchmark. £30.95 million £30.97 million Page 172 of 188
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Audit of the annual accounts | 7 Materiality The council Group Performance materiality – this acts as a trigger point. If the aggregate of misstatements identified during the audit exceeds performance materiality, this could indicate that further audit procedures are required. Using professional judgement, performance materiality has been set at 75% of planning materiality. £23.21 million £23.22 million Reporting threshold – all misstatements greater than the reporting threshold will be reported. This is set at 5% of overall materiality. £1.54 million £1.54 million Source: Audit Scotland Significant risks of material misstatement to the financial statements 13. The risk assessment process draws on the audit team’s cumulative knowledge of the council, including the nature of its operations and its significant transaction streams, the system of internal control, governance arrangements and processes, and developments that could impact on its financial reporting. 14. Based on the risk assessment process, significant risks of material misstatement to the financial statements have been identified and these are summarised in Exhibit 2, page 8. These are the risks which have the greatest impact on the planned audit approach, and the planned audit procedures in response to the risks are outlined in Exhibit 2. 15. The risk assessment process is an iterative and dynamic process. The assessment of risks set out in this Annual Audit Plan and Exhibit 2 may change as more information and evidence is obtained over the course of the audit. Where such changes occur, these will be reported to the council and those charged with governance, where relevant. Page 173 of 188
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Audit of the annual accounts | 8 Exhibit 2 Significant risks of material misstatement to the financial statements Risk of material misstatement Planned audit response Fraud caused by management override of controls Management is in a unique position to perpetrate fraud because of management’s ability to override controls that otherwise appear to be operating effectively. The audit team will: Evaluate the design and implementation of controls over journal entry processing. Make inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries and other adjustments. Test journals entries, focusing on those that are assessed as higher risk. Evaluate significant transactions outside the normal course of business. Assess the adequacy of controls in place for identifying and disclosing related party relationships and transactions in the financial statements. Assess changes to the methods and underlying assumptions used to prepare accounting estimates and assess these for evidence of management bias. Page 174 of 188
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Audit of the annual accounts | 9 Risk of material misstatement Planned audit response Valuation of property, plant and equipment The council held £3,055 million of property, plant, and equipment as at 31 March 2025, of which £2,550 million was land and building assets, including £1,241 million of council dwellings. The council is required to value land and building assets at existing use value where an active market exists for these assets (with a social housing adjustment factor for council dwellings). Where there is no active market, these assets are valued on a depreciated cost replacement (DRC) basis. There is a significant degree of subjectivity in these valuations which are based on specialist assumptions, and changes in the assumptions can result in material changes to valuations. For 2025/26, CIPFA/LASAAC has updated the Code of Practice to reflect HM Treasury’s reforms to public‑sector asset valuations. Under the revised approach, local authorities will now move to quinquennial (five‑yearly) valuations, usually through a rolling programme of valuations, with annual indexation applied in the intervening years to ensure asset values remain materially accurate. There is an increased risk of material misstatement due to greater reliance on management judgement and estimation, particularly in selecting appropriate indices and determining when additional valuations are necessary in between formal valuations. For assets subject to revaluation in year, the audit team will: Evaluate the design and implementation of controls over the valuation process. Review the information provided to the valuer and assess this for completeness and accuracy. Evaluate the competence, capabilities, and objectivity of the valuer. Obtain an understanding of management’s involvement in the valuation process to assess if appropriate oversight has occurred. Review the appropriateness of the key data and assumptions used in the 2025/26 valuation process, and challenge these where required. For assets where indexation is applied in year, the audit team will: Review the indices applied by management to assets not subject to valuation in 2025/26 and assess if these are reasonable and have been correctly applied. Review the information provided to the valuer and assess this for completeness and accuracy. Evaluate the competence, capabilities, and objectivity of the valuer. Review the appropriateness of the key data and assumptions used in the 2025/26 indexation process, and challenge these where required. Page 175 of 188
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Audit of the annual accounts | 10 Risk of material misstatement Planned audit response Estimation of the pension balance The council is a member of Strathclyde Pension Fund, which is a defined benefit pension scheme. Strathclyde Pension Fund is subject to formal valuation every three years, and this sets out each member’s share of the scheme’s overall pension balance and contributions for the next three years. The last formal valuation was carried out at 31 March 2023. An estimation of the council’s share of the overall pension balance is required in each intervening year between formal valuations, and these are carried out by Hymans Robertson. There is a significant degree of subjectivity in the estimation of the funded and unfunded pension balances as the estimation is based on specialist assumptions, and changes in the assumptions can result in material changes to the estimation. The audit team will: Evaluate the design and implementation of controls over the pension balance estimation process. Review the information provided to the actuary and assess this for completeness and accuracy. Evaluate the competence, capabilities, and objectivity of the actuary. Obtain an understanding of the management’s involvement in the estimation process to assess if appropriate oversight has occurred. Review the appropriateness of the key data and assumptions used by management for the estimation of the pension balance, and challenge these where required. Audit Scotland uses PwC as an auditor’s expert to inform the planned audit procedures outlined above. Therefore, the audit team will also review the information provided by PwC and reflect this in the planned audit procedures where required. Source: Audit Scotland Key audit matters 16. The Code of Audit Practice requires public sector auditors to communicate key audit matters. Key audit matters are those matters, that in the auditor’s professional judgement, are of most significance to the audit of the financial statements and require most attention when performing the audit. 17. In determining key audit matters, auditors consider: Areas of higher or significant risk of material misstatement. Areas where significant judgement is required, including accounting estimates that are subject to a high degree of estimation uncertainty. Significant events or transactions that occurred during the year. 18. The matters determined to be key audit matters will be communicated in the Annual Audit Report. Exhibit 2 outlines the significant risks of material misstatement to the financial statements that have been identified, including those that have greatest impact on the planned audit procedures and require most attention when performing the audit. Page 176 of 188
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Audit of the annual accounts | 11 Group audit 19. The council is part of a group and prepares group financial statements. The group is made up of 11 components, including the council which is the parent of the group. Risk assessment procedures have been performed on the group audit to identify if there are any risks of material misstatement to the group financial statements, or any components where audit procedures are required for the purposes of the group audit. The outcome of the risk assessment procedures on the group audit are outlined in Exhibit 3. Exhibit 3 Outcome of risk assessment procedures on the group audit Group component Accounting treatment Risk of material misstatement Audit procedures required Auditor North Lanarkshire Council Parent body Yes – Exhibit 2 Yes – full scope audit Audit Scotland North Lanarkshire Properties LLP Consolidated on a line-by-line basis Yes – risk of material misstatement due to estimation of valuation of investment property Yes – risk assessment questionnaire and review and evaluation of component auditor’s work on investment property valuations Armstrong Watson Audit Limited Fusion Assets Limited Consolidated on a line-by-line basis No, not material to group financial statements Yes – analytical procedures at group level Armstrong Watson Audit Limited North Lanarkshire Integration Joint Board Accounted for on equity basis No, but is material to group financial statements Yes – risk assessment questionnaire and analytical procedures Audit Scotland Amey Public Services LLP Accounted for on equity basis No, not material to group financial statements Yes – analytical procedures at group level Forvis Mazars LLP Page 177 of 188
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Audit of the annual accounts | 12 Group component Accounting treatment Risk of material misstatement Audit procedures required Auditor Mears Scotland LLP Accounted for on equity basis No, not material to group financial statements Yes – analytical procedures at group level Ernst & Young LLP Strathclyde Partnership for Transport Accounted for on equity basis No, but is material to group financial statements Yes – risk assessment questionnaire and analytical procedures Audit Scotland Strathclyde Concessionary Travel Joint Board Accounted for on equity basis No, not material to group financial statements Yes – analytical procedures at group level Audit Scotland Lanarkshire Valuation Joint Board Accounted for on equity basis No, not material to group financial statements Yes – analytical procedures at group level Audit Scotland Routes to Work Limited Accounted for on equity basis No, not material to group financial statements Yes – analytical procedures at group level Anderson Anderson & Brown Audit LLP Dunbartonshire Educational Trust Scheme 1962 Not consolidated on grounds of materiality No, not part of group financial statements No, not part of group financial statements Forvis Mazars LLP Source: Audit Scotland 20. Where audit procedures are required on a component’s financial statements, and the component auditor is different to the council’s appointed auditor, group audit instructions will be issued to the component auditor outlining expectations and requirements in performing these audit procedures. Page 178 of 188
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Wider scope audit | 13 Wider scope audit Introduction 21. Reflecting the fact that public money is involved, the Code of Audit Practice requires that public audit is planned and undertaken from a wider perspective than in the private sector. The wider scope audit set out by the Code of Audit Practice broadens the audit of the annual accounts to include consideration of additional aspects or risks in four wider scope areas, which are summarised below: Financial Management – this means having sound budgetary processes. Factors that can impact on the council being able to secure sound financial management include the strength of the financial management culture, accountability, and arrangements to prevent and detect fraud, error and other irregularities, bribery and corruption. Financial Sustainability – this means looking forward over the medium and longer term in planning the services to be delivered and how they will be delivered effectively. This is assessed by considering the council’s medium to longer-term planning for service delivery. Vision, Leadership and Governance – this means having a clear vision and strategy, with set priorities within the vision and strategy. This is assessed by considering the clarity of plans in place to deliver the vision and strategy and the effectiveness of the governance arrangements to support delivery. Use of Resources to Improve Outcomes – this means using resources to meet stated outcomes and improvement objectives through effective planning and working with partners and communities. This is assessed by considering the council’s arrangements for ensuing resources are deployed to improve strategic outcomes, meet the needs of service users, and deliver continuous improvement. 22. A conclusion on the effectiveness and appropriateness of arrangements the council has in place for each of the wider scope areas will be reported in the Annual Audit Report. Page 179 of 188
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Wider scope audit | 14 Significant wider scope risks 23. The risk assessment process has identified significant risks in the wider scope areas as outlined in Exhibit 4, and this includes the planned audit procedures in response to the risks. Exhibit 4 Significant wider scope Description of risk Planned audit response Financial sustainability North Lanarkshire Council continues to operate in an increasingly complex and challenging environment where it aims to provide the best possible services within the resources available. Although a surplus position of £3.5 million is projected for 2025/26, the council faces significant financial challenges. The council has identified a gap of £71.2 million for the three years to 2027/28. There is a risk that in the longer term, the council is unable to deliver the savings required or generate alternative revenue streams to balance its budget whilst meeting its strategic priorities or fulfilling its statutory duties. The audit team will: Review and evaluation of the council’s annual budget setting arrangements Review and assessment of budget monitoring arrangements Review of the council’s medium to longer- term financial planning On-going review of the council’s financial position and delivery of planned savings. Source: Audit Scotland Page 180 of 188
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Best Value audit | 15 Best Value audit Best value audit and statutory performance reporting 24. Under the Code of Audit Practice, the audit of Best Value in councils is fully integrated within the annual audit. As part of the annual audit, auditors are required to take a risk-based approach to assessing and reporting on whether the council has made proper arrangements for securing Best Value, including follow up of findings previously reported in relation to Best Value. 25. The Accounts Commission also reports nationally on thematic aspects of councils’ approaches to, and performance in, meeting their Best Value duties. As part of the annual audit, thematic reviews, as directed by the Accounts Commission, are conducted on the council. The thematic review for 2025/26 is on the subject of asset management and involves considering how the council is managing its assets to ensure high quality services whilst also responding to the challenges around financial sustainability and climate change. Conclusions and judgements on the thematic review will be reported in a separate Management Report and summarised in the Annual Audit Report, where required. 26. At least once over the five-year appointment, the Controller of Audit will report to the Accounts Commission on the council’s performance in meeting its Best Value duties. The Controller of Audit reported on the council in January 2026. We will follow up on the council’s progress addressing the recommendations from the Controller of Audit and the Accounts Commission’s findings as part of our audit work. 27. Auditors may also carry out specific audit work covering the seven Best Value characteristics set out in the SPFM. The risk assessment process did not identify a need to carry out specific audit work on any of the characteristics. In addition, auditors are required to carry out a review of the ‘fairness and equality’ characteristic at least once during the audit appointment, and this will be carried out during the 2025/26 audit. 28. Auditors have a statutory duty to satisfy themselves that councils have made proper arrangements for preparing and publishing statutory performance information in accordance with the Statutory Performance Information Direction 2024 (the Direction) issued by the Accounts Commission. The outcome of this will be reported in the Annual Audit Report, which will include: A conclusion on the council’s arrangements for preparing and publishing the statutory performance information. Page 181 of 188
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Best Value audit | 16 Any instances where the arrangements or reporting are not in accordance with the Direction. Areas where the arrangements require to be improved. 29. In addition, the Accounts Commission requires auditors to include a summary of Local Government Benchmarking Framework (LGBF) indicators that the council has reported in the Annual Audit Report. Shared risk assessment and joint scrutiny 30. The Shared Risk Assessment process is the vehicle for scrutiny bodies to share intelligence and agree scrutiny risks at councils. Appointed auditors have a role in co-ordinating scrutiny through Local Area Networks (LAN). As part of our audit work, we engage with contacts in other scrutiny bodies through LAN meetings to understand information on performed and planned scrutiny to facilitate engagement with the council and inform risk assessment discussions. 31. The LAN meeting for the council is planned in the coming weeks, and we will incorporate the outcome of the meeting into our ongoing risk assessment procedures. The outcome of the meetings will be communicated to the council's Chief Executive. Page 182 of 188
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Reporting arrangements, timetable and audit fee | 17 Reporting arrangements, timetable and audit fee Audit outputs 32. The outputs from the 2025/26 audit include: This Annual Audit Plan. An Independent Auditor’s Report to the council and the Accounts Commission setting out opinions on the annual accounts. An Annual Audit Report to the council and the Accounts Commission setting out significant matters identified from the audit of the annual accounts, conclusions from the wider scope and Best Value audit, recommendations, where required, and any good practice identified. 33. The matters to be reported in the outputs will be discussed with the council for factual accuracy before they are issued. All outputs from the audit will be published on Audit Scotland’s website, apart from the Independent Auditor’s Report, which is included in the audited annual accounts. 34. Target dates for the audit outputs are set by the Accounts Commission. In setting the target dates for the audit outputs, consideration is given to the statutory date for approving the annual accounts, which is 30 September 2026 for local government bodies. 35. The Independent Auditor’s Report and Annual Audit Report are planned to be issued by the target date of 30 September 2026. Audit timetable 36. Achieving the timetable for production of the annual accounts, supported by complete and accurate working papers, is critical to delivery of the audit to agreed target dates. Exhibit 5 includes a timetable for the audit, which has been agreed with management. Agreed target dates will be kept under review as the audit progresses, and any changes required, and their potential impact, will be discussed with the council and reported to those charged with governance, where required. Page 183 of 188
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Reporting arrangements, timetable and audit fee | 18 Exhibit 5 2025/26 audit timetable Audit activity The council target date Audit team target date Relevant committee date Issue of Annual Audit Plan 13 February 2026 4 March 2026 Annual Accounts: Consideration of unaudited annual accounts by those charged with governance 30 June 2026 TBC Submission of unaudited annual accounts and all working papers to audit team 30 June 2026 Latest date for audit clearance meeting 11 September 2026 11 September 2026 Issue of draft Letter of Representation, proposed Independent Auditor’s Report, and proposed Annual Audit Report 14 September 2026 TBC Agreement of audited and unsigned annual accounts 14 September 2026 14 September 2026 Approval by those charged with governance and signing of audited annual accounts TBC 30 September 2026 TBC Signing of Independent Auditor’s Report and issue of Annual Audit Report 30 September 2026 Issue of Best Value Management Report 7 August 2026 20 August 2026 Certification of Non-Domestic Rates Return 31 December 2026 Certification of Housing Benefit Subsidy Claim 31 December 2026 Certification of Whole of Government Accounts 31 December 2026 Source: Audit Scotland Page 184 of 188
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Reporting arrangements, timetable and audit fee | 19 Audit fee 37. The council’s audit fee is determined in line with Audit Scotland’s fee setting arrangements. The agreed audit fee for the 2025/26 audit is set out in Exhibit 6. 38. In setting the audit fee, it is assumed that the council has effective governance arrangements in place and the complete annual accounts will be provided for audit in line with the agreed timetable. The audit fee assumes there will be no significant changes to the planned scope of the audit. Where the audit cannot proceed as planned, for example, due to incomplete or inadequate working papers, the audit fee may need to be increased. Exhibit 6 Audit fee Fee component1 Fee (£) External auditor remuneration 408,520 Pooled costs, such as travel and subsistence costs 14,090 Contribution to the performance audit programme 120,050 Adjustment for average audit price increase 137,650 Total 2025/26 fee 680,310 Source: Audit Scotland 1 Information on the components that make up the total fee can be found in Audit Scotland’s Audit management and quality guidance. Page 185 of 188
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Other matters | 20 Other matters Internal audit 39. The council is responsible for establishing an internal audit function as part of an effective system of internal control. As part of the audit, the audit team will obtain an understanding of internal audit, including its nature, responsibilities, and activities. 40. While internal audit and external audit have differing roles and responsibilities, external auditors may seek to rely on the work of internal audit where it is considered appropriate. A review of internal audit’s 2025/26 audit plan was carried out to identify if there were any areas where the audit team could rely on its work. The audit team concluded it will not rely on internal audit’s work. However, the audit team will review internal audit's reports and assess if there is any impact on the audit. Audit quality 41. Audit Scotland is committed to the consistent delivery of high-quality audit. Audit quality requires ongoing attention and improvement to keep pace with external and internal changes. Details of the arrangements in place for the delivery of high-quality audits is available from the Audit Scotland website. 42. The International Standards on Quality Management (ISQM) applicable to Audit Scotland for 2025/26 audits are: ISQM (UK) 1, which deals with an audit organisation’s responsibilities to design, implement, and operate a system of quality management (SoQM) for audits. Audit Scotland’s SoQM consists of a variety of components, such as governance arrangements and culture to support audit quality, compliance with ethical requirements, ensuring Audit Scotland is dedicated to high- quality audit through engagement performance and resourcing arrangements, and ensuring there are robust quality monitoring arrangements in place. Audit Scotland carries out an annual evaluation of its SoQM and has concluded it complies with this standard. ISQM (UK) 2, which sets out arrangements for conducting engagement quality reviews, which are performed by senior management not involved in an audit, to review significant judgements and conclusions reached by the audit team, and the appropriateness of proposed audit opinions on high-risk audits. Page 186 of 188
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Other matters | 21 43. To monitor quality at an individual audit level, Audit Scotland carries out internal quality reviews on a sample of audits. Additionally, the Institute of Chartered Accountants of England and Wales (ICAEW) carries out independent quality reviews on a sample of audits. 44. Actions to address deficiencies identified by internal and external quality reviews are included in a rolling Quality Improvement Action Plan, which is used to support continuous improvement. Progress with implementing planned actions is monitors on a regular basis by Audit Scotland’s Quality and Ethics Committee. 45. Audit Scotland may periodically seek the views of the council on the quality of audit services provided. The audit team would also welcome feedback at any time. Page 187 of 188
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North Lanarkshire Council Annual Audit Plan 2025/26 Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 www.audit.scot AS.5.0 Page 188 of 188