Agenda Document Pack - Audit and Scrutiny Panel - 27/06/2024
North Lanarkshire Council · 27 June 2024
Back to Audit and Scrutiny Panel — 27 June 2024 and its agenda
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18 June 2024 Members of the Audit and Scrutiny Panel Chief Executive’s Office Archie Aitken 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 Committee Room 1, Civic Centre, Windmillhill Street, Motherwell, ML1 1AB on Thursday, 27 June 2024 at 14:00 PM which you are requested to attend. The agenda of business is attached. Archie Aitken Chief Officer (Legal & Democratic) Members : Clerk Name: Lesley Dysart Clerk Telephone: Clerk Email: dysartl@northlan.gov.uk S Watson, B McCulloch, H Brannan-McVey, H Dunbar, T Fisher, M Hughes, J Hume, D Johnston, J Leckie, J McLaren, G Robinson. Page 1 of 116
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Agenda 1 Declarations of Interest In Terms of the Ethical Standards In Public Life Etc. (Scotland) Act 2000 YEAR-END ITEMS 2 Internal Audit Annual Report 2023-24 Submit report by the Acting Chief Officer (Audit and Risk) informing that the Public Sector Internal Audit Standards and the Council’s Internal Audit Charter require the Acting Chief Officer (Audit and Risk) to provide the Audit and Scrutiny Panel, the Chief Executive and Corporate Management Team, with an annual summary of the work undertaken by Internal Audit, and to provide an annual independent opinion on the Council’s corporate governance, risk management and internal control arrangements 5 - 24 3 Strategic Governance Framework - Annual Review and Refresh Submit report by the Chief Officer (Business and Digital) regarding the annual review which has been undertaken to refresh the Strategic Governance Framework and to ensure each of the elements and mechanisms listed within the report are up-to-date, and on a review programme to be updated at an appropriate interval and reported to the relevant Committee 25 - 84 4 Annual Governance Statement 2023/24 Submit report by the Chief Officer (Business and Digital) providing the Panel with a copy of the Annual Governance Statement for consideration 85 - 116 5 Unaudited Annual Accounts for the year ending 31 March 2024 Submit report by the Chief Officer (Finance) (copy to follow) Page 3 of 116
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North Lanarkshire Council Report Does this report require to be approved? ☐ Yes ☒ No Ref PH/ASP/June2024 Date 27/06/24 From Paula Hendry, Acting Chief Officer (Audit and Risk) E-mail hendryp@northlan.gov.uk Telephone 07939 280602 Executive Summary The Public Sector Internal Audit Standards and the Council’s Internal Audit Charter require the Chief Officer (Audit and Risk) to provide the Audit and Scrutiny Panel (and the Chief Executive and Corporate Management Team) with an annual summary of the work undertaken by Internal Audit and to provide an annual independent opinion on the Council’s corporate governance, risk management and internal control arrangements. This report fulfils that requirement by providing an overview of the activities of the Internal Audit section for the year 2023-24, by highlighting a number of the more significant issues which arose from the work undertaken by Internal Audit during the year and by presenting (at Appendix 1) the annual Internal Audit opinion. The annual opinion is unqualified and the report offers a generally positive view of the Council’s governance and internal control arrangements. This report has previously been submitted to the Chief Executive, Business Management Team and Corporate Management Team. Recommendations It is recommended that the Audit and Scrutiny Panel: (1) Acknowledge the 2023-24 Internal Audit Annual Report and the associated annual opinion of the Acting Chief Officer (Audit and Risk); and (2) Consider whether there are any issues arising on which the Panel wishes to request further reports from Internal Audit and/or relevant management. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work All Programmes of Work Audit and Scrutiny Panel Internal Audit Annual Report 2023-24 Item 2 Page 5 of 116
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1. Background 1.1 Internal Audit is an independent and objective assurance function designed to add value and improve the Council’s operations which helps the Council accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of the Council’s risk management, internal control and governance processes. 1.2 Internal Audit’s primary objectives are: • to provide a high quality and customer focused internal audit service which is responsive and flexible, consistent with best professional practice, focuses on areas that matter, uses resources efficiently and effectively, and is seen by stakeholders as adding value and making a vibrant and relevant contribution to the Council; and • to assist the Audit and Scrutiny Panel (the Panel) to effectively discharge its role and responsibilities. 1.3 The purpose, authority, responsibilities and main objectives of the Council’s Internal Audit service are outlined in the Internal Audit Charter (approved by the Panel in September 2021). 1.4 Internal Audit reports its outputs regularly throughout the year to the Panel in accordance with the Internal Charter and associated reporting protocol. The Panel also approves Internal Audit’s annual audit plan and monitors the performance of the function. 1.5 Internal Audit activity is planned to enable an independent annual opinion to be given by the Chief Officer (Audit and Risk) on the adequacy and effectiveness of internal controls within the authority, including the systems designed to achieve the corporate objectives of the Council and those that manage the material risks faced by the authority. 1.6 It should be noted that the presence of an effective internal audit function contributes towards, but is not a substitute for, effective control. It is primarily the responsibility of line management to establish internal controls so that the Council’s activities are conducted in an efficient and well-ordered manner, to ensure that management policies and directives are adhered to and that assets and records are safeguarded. 2. Report High level overview of Internal Audit activity during 2023-24 2.1 I can confirm that during 2023-24 Internal Audit operated with no impairments or restrictions in scope and that all key stakeholders continued to respect the independence of the function. The Chief Officer (Audit and Risk) (who acts as the Council’s ‘Chief Audit Executive’ as per the Public Sector Internal Audit Standards (PSIAS)) reports directly to the Chief Executive and is a member of the Council’s Corporate Management Team. The role and status of the Internal Audit function within the Council is also consistent with best practice. 2.2 Internal Audit activity during the year was undertaken in accordance with the Internal Audit Annual Plan which was approved by the Panel in May 2023. Appendix 2 shows key details (status, and where appropriate, the relevant audit opinion and date presented to the Panel) of all items in the approved 2023-24 Plan. During the year, some amendments were made to the plan to enable the function to respond flexibly to changing circumstances since the plan was developed and approved (most notably, changes arising from the impact of a long-term sickness absence within the team) and these changes are detailed in Appendix 2. Page 6 of 116
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2.3 Action plans are agreed with management in response to all recommendations made within Internal Audit reports and follow-up reports are presented regularly to the Panel to provide assurance that matters raised by Internal Audit are being appropriately addressed by management and that agreed actions have been implemented. Where follow-up work indicates that inadequate progress has been made, this is brought to the attention of the Panel. 2.4 The results of follow-up work carried out in 2023-24 indicated that, while Services appeared generally committed to progressing agreed actions, there were an increasing number of instances where management action had not been undertaken by the agreed implementation date resulting in slippage from previously agreed timescales, serving to expose the Council to ongoing risk. Concerns raised during the year by the Panel in this respect were considered by senior management, and the subsequent action taken, as per the most recent update to the Panel (May 2024), has resulted in a marked improvement in the quality of narrative provided and an increase in the number of recommendations which have been actioned by the agreed implementation date. Reports will continue to be presented on a quarterly basis to the Panel to enable them to closely monitor management compliance with agreed actions and timescales. 2.5 Internal Audit also has responsibility for investigating, as appropriate, alleged frauds and irregularities brought to our attention in accordance with the Council’s counter fraud policy. Where detailed work is carried out, the findings are reported to the Chief Executive and/or the relevant Chief Officer with recommendations made which are designed to address any weaknesses identified. Such work is reported to the Panel, as appropriate, in line with the approved Internal Audit reporting protocol which forms part of the Internal Audit Charter. 2.6 During 2023-24, Internal Audit staff continued to liaise closely with Audit Scotland, the Council’s appointed external auditors, to facilitate their work and to avoid any potential duplication of effort. 2.7 The Panel will recall the approval, in March 2021, of a revised performance management framework for Internal Audit. Most indicators are reported on an annual basis, and Appendix 3 sets out the results for that agreed framework. 2.8 Internal Audit operated in 2023-24 in accordance with the Public Sector Internal Audit Standards (PSIAS). During 2023-24, I assessed the extent to which current Internal Audit activity, policies and procedures conform to expected requirements contained within the PSIAS and am pleased to be able to report that the results of that review continued to show a high degree of compliance with the detailed requirements of PSIAS. 2.9 In May 2024, the Panel received a report from the independent external quality assurance review (EQAR) of the internal audit function which concluded that the Internal Audit Service within North Lanarkshire fully conformed with the PSIAS. The previous EQAR was undertaken in 2019, thereby we have adhered to the PSIAS requirement that an EQAR be done at least once every five years. 2.10 An action plan arising from both our own self-assessment and recommendations contained with the external assessment has been prepared which sets out agreed actions to take forward improvement areas identified and target implementation dates for each of these (see Appendix 4). Updates on implementation of agreed actions will be reported to the Panel via the Internal Audit Progress Report. Issues arising from Internal Audit activity during 2023-24 2.11 Appendix 2 provides an overview of Internal Audit activity against the 2023-24 Annual Plan and includes details of when each assignment was reported to the Audit and Scrutiny Panel (where not yet formally reported, status and expected dates are given). Page 7 of 116
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Key issues arising from Internal Audit outputs are highlighted in the Internal Audit Progress Report tabled at each meeting of the Panel. 2.12 A small number of audit assignments were reported during 2023-24 which offered only ‘limited assurance’. In all cases, management committed to a range of relevant improvement actions, some of which have already been completed, and we will continue to monitor progress on these issues during 2024-25 to provide senior management and the Panel with further assurance that relevant key controls are operating effectively. 2.13 In addition, it is worth highlighting our work on the procurement and single bidder risk mitigation aspects of the Housing and Corporate Repairs contract award processes, which contains a non-standard audit conclusion because of the scope and nature of that work. Our report concluded that the governance arrangements in place for the Enterprise Project were adequate and appeared robust, and that the project was being managed in line with corporate expectations in a manner consistent with good practice. However, we identified the need for management to ensure a comprehensive and objective performance management framework is established with supplier performance assessed using clear, objective, and meaningful metrics supported by an adequately resourced, balanced contract management team with an appropriate range of skills. 2.14 Overall, I am satisfied that the Council’s internal control and governance arrangements remained adequate and appropriately robust throughout 2023-24. 2.15 The results from our detailed work examining the Council’s corporate governance arrangements suggest that compliance with the requirements of the corporate governance framework adopted by the Council continued to be generally positive with no significant weaknesses or areas of concern highlighted. 2.16 Our work also suggests that, despite the ongoing significant and increasing challenges, key financial controls and financial management arrangements continued to operate to a generally high standard within the Council. 2.17 Audit investigations of suspected fraud and/or irregularities are reported to the Panel in line with the agreed Internal Audit reporting protocol. Apart from the whistleblowing allegations received by Audit Scotland regarding the existing Mears LLP housing and property maintenance contract, details of which were reported as part of the routine progress report at the May 2024 Panel, I am pleased to be able to report that there were no other weaknesses, material frauds or irregularities identified during 2023-24 that I require to bring to your attention. 2.18 Our report detailing the findings and conclusions arising from our work on the whistleblowing allegations received by Audit Scotland contained several recommendations designed to address the identified weaknesses and to seek to ensure that any future contract management and oversight arrangements are more robust. Many of the recommendations in this report are broadly consistent with, or cover similar aspects to, those raised at 2.13 above. In response to both reports, management have committed to a range of detailed improvement actions, and we will monitor progress on these issues during 2024-25. 2.19 Although there are no issues that require me to qualify my annual opinion, there are a small number of areas that I would wish to highlight, and which will continue to be the focus of future audit coverage: • given the key role effective contract and supplier management plays in ensuring that the Council can deliver against its operational and strategic ambitions, we will undertake early and ongoing work, as necessary, to provide assurance on the adequacy and effectiveness of the Council’s management arrangements surrounding the mobilisation and implementation of new contract management arrangements for both recently approved contracts awarded via the Enterprise Page 8 of 116
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Project. With regards the new housing and corporate property maintenance contract, this will also involve specific, detailed follow-up of agreed actions arising from the investigation report on the Audit Scotland whistleblowing allegations; • the last year has seen the development of new internal governance structures designed to ensure the delivery, co-ordination, direction and oversight of planned activities for the refreshed Programme of Work to 2028. These developments have also incorporated progression of an audit action, that has been outstanding for some time, around the Council failing to report progress on key projects and programme of work activities in a single place which would better allow stakeholders to exercise more effective monitoring, oversight and scrutiny and to better hold senior management to account. Internal Audit will undertake specific work in the year ahead regarding the implementation and effectiveness of these arrangements now they are operational; • in last year’s annual report, it was commented that, in recent years, we had identified several areas in respect of the Council’s arrangements for paying staff, where controls were inadequate or not operating as intended, which meant that at that time it was assessed that risks in this area remained high. Although some management action has been taken in the last 12 months to begin to address these issues, my assessment in this area remains the same, and as such, this will be subject to further audit coverage in 2024-25; and • in a number of areas, in recent years, Internal Audit reports have provided management with information on failures to comply with expected controls, procedures or guidance that should reasonably have been identifiable at an earlier stage if line management’s own arrangements were more robust. Given the irregular and/or cyclical nature of Internal Audit’s coverage and in accordance with the ‘Three Lines of Defence Model’, we will again this year continue to challenge management across the range of our planned audit work about how they themselves routinely gain assurance on compliance and the effectiveness of identified key controls. Annual Internal Audit Opinion 2023-2024 2.20 There is a formal requirement for me to prepare an annual opinion, based on the work of Internal Audit during the year, on the Council’s governance, internal control and risk management arrangements. The opinion is presented to members of the Audit and Scrutiny Panel, the Chief Executive and the other members of the Council’s Corporate Management Team and is intended to provide independent and objective assurance as to the adequacy and effectiveness of governance, internal control and risk management arrangements within the Council. 2.21 My evaluation of the control environment is informed by a number of sources and in bringing these together, consideration has been given to whether there is evidence that any key controls are absent, inadequate or ineffective and whether the existence of any weaknesses identified, taken independently or with other findings, significantly impairs the adequacy and effectiveness of the Council’s overall systems of internal control. Wider issues relating to the Council’s corporate governance and risk management arrangements have also been considered. 2.22 The nature of audit assignments is such that most Internal Audit reports identify some weaknesses or areas where scope for improvement exists. During work undertaken in 2023-24, there have been instances where the control environment was not strong enough or not complied with sufficiently to prevent risks to the organisation, and where Internal Audit has made recommendations to further improve the systems of control and compliance. Although sometimes significant to the control environment in the individual system or areas that have been audited, I do not consider these weaknesses material enough to have a significant impact on my overall opinion on the adequacy of the Council’s control environment at the year end. Further reviews and/or follow-up work in Page 9 of 116
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areas where limited assurance has been given are scheduled to be completed during 2024-25 to ensure that the actions agreed in response to Internal Audit’s recommendations have been implemented and the relevant controls are working well in practice. 2.23 My formal annual Internal Audit opinion on the soundness of the Council’s internal control systems is presented at Appendix 1. Overall, the results of the work of Internal Audit in 2023-24, taken with other information available to me, did not lead me to conclude that the Council’s overall systems of internal control were inadequate or their effectiveness were significantly or materially impaired. 2.24 Finally, I would like to thank all Council staff who have assisted Internal Audit during our work throughout 2023-24 and also to thank senior management and elected members for the consideration and due regard given to our work. 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 2023-24 Annual Internal Audit Opinion Appendix 2 Implementation of the approved 2023-2024 Internal Audit Plan Appendix 3 Internal Audit performance data 2023-2024 Appendix 4 Internal Audit Paula Hendry CPFA Acting Chief Officer (Audit and Risk) Page 10 of 116
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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? Page 11 of 116
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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? Failure to operate an effective Internal Audit function, consistent with the Public Sector Internal Audit Standards (PSIAS) could impair the Council’s compliance with its Code of Corporate Governance. Risks to the effective operation of the Internal Audit service (including failure to comply with PSIAS) and how these are mitigated are documented in the Service’s risk register which is subject to regular review by the Audit and Risk management team. 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 12 of 116
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Appendix 1 2023-24 Internal Audit Opinion To the members of North Lanarkshire Council’s Audit and Scrutiny Panel, the Chief Executive and other members of the Council’s Corporate Management Team As Chief Officer (Audit and Risk) of North Lanarkshire Council, I am pleased to present my annual statement on the adequacy and effectiveness of the Council’s framework of governance, risk management and internal control for the year ended 31 March 2024. Respective responsibilities of management and internal auditors in relation to governance, risk management and internal control It is the responsibility of the Council’s senior management to establish appropriate and sound systems of governance, risk management and internal control and to monitor the continuing effectiveness of those systems. It is the responsibility of the Chief Officer (Audit and Risk) to provide an independent annual opinion on the adequacy and effectiveness of the Council’s framework of governance, risk management and internal control. The Council’s framework of governance, risk management and internal controls The main objectives of the Council’s framework of governance, risk management and internal controls are to ensure that resources are directed in accordance with agreed plans, policies and priorities and to ensure that there is sound decision-making and clear accountability for the use of those resources in order to achieve the desired outcomes for service users and communities. This includes ensuring that appropriate internal controls and risk management arrangements are in place to effectively manage issues which might impact on the delivery of Council services, the achievement of corporate and service objectives, ambitions and priorities and public confidence in the Council. The Council also requires effective internal controls and risk management arrangements to safeguard its employees, to protect its assets, to maintain effective stewardship of public funds, to ensure good corporate governance, to ensure compliance with statutory requirements and to ensure it continues to deliver best value. The work of Internal Audit Internal Audit is an independent and objective assurance function established by the Council designed to add value and to improve the Council’s operations. It helps the Council accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of the Council’s risk management, control and governance processes and by providing an independent and objective opinion on the Council’s internal control environment. It also objectively examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of the Council’s resources. The Internal Audit section operated throughout 2023-24 in accordance with the Public Sector Internal Audit Standards (PSIAS). As part of the Internal Audit quality assurance and improvement programme, I have assessed the extent to which current internal audit activity, policies and procedures conform to expected requirements. The results show that the section continues to substantively comply with the PSIAS. The section undertakes an annual programme of work formally approved by the Audit and Scrutiny Panel. The audit plan is determined following a risk-based audit needs assessment that is revised on an ongoing basis to reflect my assessment of the evolving risks and changes within the Council. All Internal Audit reports identifying system weaknesses and/or non-compliance with expected controls are brought to the attention of management and include appropriate recommendations and agreed action plans. It is management’s responsibility to ensure that proper consideration is given to Internal Audit reports and that appropriate action is taken on audit recommendations. Page 13 of 116
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Appendix 1 (continued) 2023-24 Internal Audit Opinion Internal Audit is required to ensure that appropriate arrangements are made to determine whether action has been taken on Internal Audit recommendations or, where appropriate, that management has understood and assumed the risk of not acting. Significant matters (including non-compliance with audit recommendations) arising from internal audit work are reported regularly to the Chief Executive, to the Corporate Management Team and to the Audit and Scrutiny Panel. Basis of Opinion My evaluation of the control environment is informed by several sources: • the audit work undertaken by Internal Audit during the year to 31 March 2024; • the assessment of risk completed during the preparation of the 2023-24 and 2024-25 annual plans; • my wider knowledge of the Council’s corporate governance, risk management and performance management arrangements; • assessments of the general control environment within individual Services in 2023-24 completed by Chief Officers; and • reports issued by the Council’s external auditors during 2023-24, together with reports from other external review and inspection bodies. Opinion on the Council’s internal control systems It is my opinion that reasonable assurance can be placed upon the adequacy and effectiveness of the Council’s framework of governance, risk management and internal control for the year ended 31 March 2024. Paula Hendry CPFA Actin Chief Officer (Audit and Risk) North Lanarkshire Council 17 May 2024 Page 14 of 116
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Appendix 2 Implementation of the approved 2023-2024 Internal Audit Plan (as at date of signing the annual opinion) Topic Status Audit grading Reported to A&SP Corporate governance 1. Risk management Note 1 2. Corporate governance Underway To be confirmed Expected August 2024 3. Performance management Underway To be confirmed Expected August 2024 Key strategic / corporate risks / programmes of work 4. Enterprise Project Complete N/A May 2024 5. Climate Change Complete Reasonable assurance (Green-Amber) November 2023 6. Workforce Planning Note 2 7. Managing Strategic Change Note 3 8. ICT operational capability Note 4 9. Follow-up: Business continuity planning Note 1 10. Future operating model Note 1 Service / operational 11. Housing Asset Management Plan Note 1 12. Clyde Valley Waste Partnership Complete Substantial assurance (Green) February 2024 13. City Deal Complete Substantial assurance (Green) May 2024 14. Housing Capital Programme Complete Reasonable assurance (Green-Amber) February 2024 15. Social Work quality assurance arrangements Note 1 Page 15 of 116
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Appendix 2 Implementation of the approved 2023-2024 Internal Audit Plan (continued) (as at date of signing the annual opinion) Topic Status Audit grading Reported to A&SP Financial management and key financial systems 16. Payroll – selected controls – duplicate payments follow-up Underway To be confirmed Expected August 2024 17. Regularity work - financial systems - Payroll Complete Reasonable assurance (Green-Amber) November 2023 18. Regularity work - financial systems - Creditors Complete Limited assurance (Amber-Red) May 2024 19. Council Tax Complete Substantial assurance (Green) February 2024 20. Treasury Management Complete Substantial assurance (Green) February 2024 21. General Ledger Underway To be confirmed Expected August 2024 Fraud and irregularity 22. Review of the Council's Anti-Fraud arrangements Complete Reasonable assurance (Green-Amber) August 2023 23. National Fraud Initiative Complete N/A N/A 24. Allowance for fraud and irregularity investigations Complete N/A N/A Provision of IA services to third parties 25. Integrated Health and Social Care - North Lanarkshire IJB Complete Note 5 Audit Committee and External Audit 26. Liaison with external audit Complete N/A N/A 27. Facilitating the work of the Audit and Scrutiny Panel Complete N/A N/A 28. Follow-up of IA and EA recommendations Complete N/A Each meeting 29. Follow-up: Audit Scotland/Accounts Commission national reports Complete N/A N/A Page 16 of 116
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Appendix 2 (cont) Implementation of the approved 2023-2024 Internal Audit Plan (continued) (as at date of signing the annual opinion) Topic Status Audit grading Reported to A&SP Contribution to good governance 30. Provision of ad hoc advice on systems development and control issues Complete N/A N/A 31. Participation in a range of Corporate working groups and Project Boards Complete N/A N/A Other 32. PSIAS self-assessment and Quality Assurance Programme Complete N/A N/A 33. Community Councils Complete N/A N/A 34. Contingency N/A N/A N/A Unplanned 1. School Excursions (including School D) Complete Limited Assurance (Amber-Red) November 2023 2. Petty Cash Imprests Complete Reasonable assurance (Green-Amber) November 2023 3. School C – school fund Complete N/A November 2023 4. School E – school fund and general issues associated with operation and oversight of school funds Complete Limited Assurance (Amber-Red) February 2024 5. Investigation –School F Complete N/A May 2024 6. Investigation –School G Complete N/A May 2024 7. Audit Scotland Whistleblowing allegations Complete N/A May 2024 Explanatory notes Where a report is marked as ‘Underway’ and ‘Expected August 2024’ this means that the audit work has been concluded or significantly completed and a draft report has been issued, or will be imminently, but management responses to the report and associated recommendations have not yet been finalised. (continued over page) Page 17 of 116
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Appendix 2 (cont) Implementation of the approved 2023-2024 Internal Audit Plan (continued) (as at date of signing the annual opinion) Explanatory notes (continued) Note 1 Work delayed after discussions with management. Carried forward and included in approved 2024/25 audit plan. Note 2 Work delayed after discussions with management. Not carried forward to 2024/25 audit plan as Audit Scotland’s 2024 Best Value thematic audit work will focus on workforce innovation in terms of how Councils are responding to local government and workforce challenges through building capacity, increasing productivity and innovation. To be considered for future audit coverage as part of annual planning process. Note 3 Informal overview obtained through Audit and Risk representation in role as ‘Audit and Risk Advisor’ on the Strategic Programme of Work Boards. Specific audit coverage included in approved 2024/25 audit plan. Note 4 Work delayed after discussions with management. To be considered for future audit coverage as part of annual planning process. Note 5 Annual programme agreed with, and reported to, relevant senior management and NL IJB Performance, Finance and Audit Sub-Committee. Audit Grading - Assurance opinion Green Substantial Assurance A sound system of governance, risk management and control exists, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited. Green- Amber Reasonable Assurance There is a generally sound system of governance, risk management and control in place. Some issues, non-compliance or scope for improvement were identified which may put at risk the achievement of objectives in the area audited. Amber- Red Limited Assurance Significant gaps, weaknesses or non-compliance were identified. Improvement is required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited. Red No Assurance Immediate action is required to address fundamental gaps, weaknesses or non-compliance identified. The system of governance, risk management and control is inadequate to effectively manage risks to the achievement of objectives in the area audited. Page 18 of 116
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Appendix 3 2023-24 Internal Audit performance data Category Measure 2023-24 performance result 2022-23 performance result 1. Delivery of Annual Plan Percentage completion of agreed plan 88.3% 91.7% 2. Targeting Percentage of key corporate risks and key financial systems over which assurance provided (note 100% coverage planned over a 3-year rolling period) Corporate risks – 20% audited in 2023-24 Financial systems – 45% audited in 2023-24 Corporate risks – 28% audited in 2022-23 Financial systems – 45% audited in 2022-23 3. LGBF - Efficiency Cost of Internal Audit per £ million revenue budget To be confirmed To be confirmed 4. LGBF - Efficiency % of productive hours delivered v Plan 92.6% 98.9% 5. Delivery / recommendations Percentage implementation of agreed actions by implementation date (cumulative year to date) 49% 58% 6. Delivery / other Number of significant irregularity / fraud investigations 5 3 7. Customer satisfaction results Scores from customer satisfaction questionnaires (audit assignments) (cumulative year to date) See separate table below See separate table below 8. Customer satisfaction results Scores from key stakeholders (CMT and A&SP) questionnaires (overall performance of the function) See separate table below See separate table below 9. Quality / standards Reliance placed by External Audit on the work of Internal Audit Yes Yes 10. Quality/ standards Quality review outcomes – EQAR or internal self- evaluation 2024 EQAR ‘Fully Conforming’ with PSIAS 2019 EQAR ‘Fully Conforming’ with PSIAS 2023 self-assessment confirmed ongoing compliance 11. Delivery of Annual Report Annual opinion /report prepared by 31 May annually Annual opinion/report signed 17/05/24 Annual opinion/report signed 18/05/23 12. Targeting Approval by CMT and A&SP of strategy and annual plan by 31 May annually Annual plan endorsed by CMT 19/04/24 Annual Plan approved by A&SP 09/05/24 Annual plan approved by CMT 21/04/23 Annual Plan approved by A&SP 18/05/23 Page 19 of 116
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Appendix 3 (cont) 2023-24 Internal Audit performance data Customer Satisfaction Results The results presented in the tables below show positive feedback on the work of internal audit. For individual audit assignments all respondents agreed that Internal Audit added value by assisting in providing assurance and that reports were relevant and constructive with findings clearly and accurately communicated. Similar positive trends are displayed in the key stakeholder results with the majority of respondents agreeing that Internal Audit acts as a trusted advisor and critical friend, helping to improve the achievement of the Council’s objectives and effective public service delivery whilst being sufficiently independent to be able to influence and, where necessary, challenge senior management decision-making on governance, risk and control issues. In both types of questionnaire, we also seek feedback on what key stakeholders have 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. Key stakeholder feedback Responses were received from 14 stakeholders which includes a mix of elected members on the Audit and Scrutiny Panel and Chief Officers Strongly Agree or Agree (%) Neither agree nor disagree (%) Question 1. Internal Audit focus their work on significant matters where assurance is most needed 100% 0% 2. Internal Audit outputs are clear and easy to understand and offer relevant, evidence-based comment and practical recommendations 86% 14% 3. Internal Audit act as a trusted advisor and critical friend, helping to improve the achievement of the Council’s objectives and effective public service delivery 86% 14% 4. Internal Audit appear sufficiently independent to be able to influence and, where necessary, challenge senior management decision-making on governance, risk and control issues 93% 7% 5. Internal Audit is meeting my expectations and helping me to discharge my role 86% 14% (continued over page) Page 20 of 116
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Appendix 3 (cont) 2023-24 Internal Audit performance data Client feedback– individual audit assignments Responses received from 12 clients related to assignments reported to the Panel in August 2023, November 2023 and February 2024 Strongly Agree or Agree (%) Neither agree nor disagree (%) Question 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% Page 21 of 116
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Appendix 4 Internal Audit – 2024/25 Quality Assurance Improvement Plan (QAIP) No. Source Recommendation and rationale Management response / agreed actions Responible Officer / Agreed Completion date Status 1 Self- assessment Improvement action - annual audit plan conforms with all aspects detailed in PSIAS and expectation is that all assignments will be completed in the year, however individual audits are not formally prioritised in the plan. N/A Chief Officer (Audit and Risk) March 2025 Not yet due - in preparing annual plan for 2025-26, consideration will be given to adding prioritisation to the list of audit assignments identified for inclusion in the year ahead 2 Self- assessment Improvement action - include explicit reference to QAIP and monitoring progress of agreed actions. N/A Chief Officer (Audit and Risk) May 2024 Complete - Annual report for 2023-24 includes appendix with QAIP and progress reports throughout the year will provide updates on this 3 Self- assessment and EQAR Recommendation - The PRD process should be re-introduced for all members of the Internal Audit team. Rationale - To ensure that all Internal Audit staff are able to discuss and subsequently access appropriate training and development activities. Revised and refreshed Corporate PRD process launched in May 2023. Now that the re-structure of the Audit team is complete and recruitment for new posts is underway the PRD process, incorporating a formal assessment against the skills and competency framework, will be taken forward. Audit Manager August 2024 Not yet due – PRD conversations will be scheduled during the summer period with all audit staff 4 Self- assessment and EQAR Recommendation - Review current best practice in relation to assurance mapping and how other public bodies use this to inform the Internal Audit planning process. Rationale - To ensure effective co-ordination of activities with other assurance providers. The Chief Officer (Audit and Risk) will progress work on developing an approach to assurance mapping in a way that allows this to inform the 2025/26 Internal Audit Plan. Chief Officer (Audit and Risk) and Audit Manager December 2024 Not yet due – specific allocation of days included in the approved 2024/25 audit plan to progress work in this area Page 22 of 116
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Appendix 4 (cont) Internal Audit – 2024/25 Quality Assurance Improvement Plan (QAIP) No. Source Recommendation and rationale Management response / agreed actions Responible Officer / Agreed Completion date Status 5 EQAR Recommendation - As risk management and, in particular, counter fraud arrangements continue to mature, the Chief Officer (Audit and Risk), should seek independent, external assurance on the adequacy of these arrangements. In doing so, however, a pragmatic and cost-effective approach must be taken. One possibility may be peer review by another Local Authority, similar to this Internal Audit external quality assessment process. Rationale - To ensure that members of the Audit and Scrutiny Panel and the Corporate Management Team are sufficiently and appropriately assured on the adequacy of risk management and counter fraud arrangements The Chief Officer (Audit and Risk) will ensure that due consideration is given to the need for independent external assurance on the adequacy of risk management and counter fraud arrangements. This will be undertaken on an annual basis as part of the annual planning and reporting process. Chief Officer (Audit and Risk) April 2025 Not yet due – will be considered as part of annual planning process for 2025-26 audit plan 6 EQAR Recommendation - The Chief Officer (Audit and Risk) and the Audit Manager should consider the proportionality of the current review process, particularly at the working paper stage. Rationale - To establish whether there may be scope for further streamlining and improving the audit process while maintaining appropriate oversight in relation to quality control. The recently implemented change to the Audit team structure will naturally result in a change to the current review process. After allowing for the new structure to embed, the Audit Manager will consider the proportionality of the review process ensuring that any amendments still facilitate the ability to properly supervise all engagement to ensure that objectives are achieved, and quality is assured. Audit Manager March 2025 Not yet due – review process will be kept under review during 2024/25 with any identified changes being introduced as necessary Page 23 of 116
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☒ Yes ☐ No Ref KH/SL Date 27/06/24 Strategic Governance Framework - annual review and refresh From Katrina Hassell, Chief Officer (Business and Digital) E-mail HassellK@northlan.gov.uk Telephone 07903 096 121 Executive Summary Good governance enables the council to effectively pursue the ambition set out in The Plan for North Lanarkshire within appropriate controls and the management of risk. It 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. Reflecting the principles in the national Delivering Good Governance in Local Government: Framework (2016), the council’s local code of governance is set out in the Strategic Governance Framework which was initially approved by the Audit and Scrutiny Panel in February 2020 and subsequently refreshed and approved by the Panel each year thereafter. As a key item of evidence to support the development of the council’s Annual Governance Statement, the Strategic Governance Framework collates all existing elements and mechanisms (produced by the respective Chief Officer) into the one local code for annual review, assessment, assurance, and reporting purposes. The Delivering Good Governance in Local Government: Framework (2016) requires that each year councils test their arrangements against the good governance principles by carrying out a review of existing arrangements, ensuring their local code is up to date, and reporting on compliance. With the annual review process now concluded for 2023/24 and the Strategic Governance Framework (and the list of supporting elements and mechanisms in Appendix B) now updated, the Audit and Scrutiny Panel has an important role to play in terms of considering the outputs from the annual review to ensure the council’s governance arrangements and systems of internal control continue to demonstrate effectiveness and compliance. As such, this report is now presented to the Audit and Scrutiny Panel for due consideration in line with the Panel’s role 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”. Recommendations It is recommended that the Audit and Scrutiny Panel: Item 3 Page 25 of 116
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1. Background 1.1 The Audit and Scrutiny Panel are well versed in the requirement for the council to produce an Annual Governance Statement in accordance with the Delivering Good Governance in Local Government: Framework (2016) and accompanying Guidance Notes for Scottish Local Authorities (2016) published by Chartered Institute of Public Finance and Accountancy (CIPFA) in association with Society of Local Authority Chief Executives (SOLACE). 1.2 The production of an Annual Governance Statement is also underpinned by statute through the Local Authority Accounts (Scotland) Regulations 2014 which requires local authorities to “conduct a review at least once in each financial year of the effectiveness of its system of internal control” and for the resultant statement of effectiveness to be “considered at a meeting either of the local authority or of a committee of the local authority whose remit includes audit or governance functions”. For local authorities in Scotland, the statement that requires to be produced is an annual governance statement. 1.3 Once reviewed and endorsed by the council’s senior management team, approved by the Audit and Scrutiny Panel, and reviewed by the external auditors each year, the Annual Governance Statement is integrated within the council’s Annual Accounts. 1.4 The essence underpinning the CIPFA Delivering Good Governance in Local Government: Framework is that local government develops and shapes its own approach to governance, taking account of the environment within which it operates. Within this context, it is therefore up to each local authority to: • Determine its own governance arrangements, or local code, underpinned by the principles in the CIPFA Framework. The council’s own governance arrangements are set out in the Strategic Governance Framework (see Appendix 1 attached). • Set out its commitment to the principles of good governance outlined in the CIPFA Framework, i.e. the 7 principles, 21 sub principles, and 91 behaviours and actions (see Appendix A attached). The council’s commitment in this respect is set out in a review programme accompanying the Strategic Governance Framework (see Appendix B attached). 1.5 The Strategic Governance Framework brings the principles of good governance (1) Acknowledge the annual review which has been undertaken to refresh the Strategic Governance Framework and ensure each of the elements and mechanisms listed therein (as noted in Appendix B) are up to date, and on a review programme to be updated at an appropriate internal and reported to the relevant committee, (2) Continue to carry out their role in respect of the Strategic Governance Framework in terms of providing independent assurance to the council and those charged with governance on the adequacy of the council’s risk management framework and internal control environment, and (3) Approve the refreshed Strategic Governance Framework. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 26 of 116
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together with legislative requirements and management processes by which the council is directed and controlled and through which it is accountable to, engages with, and leads the local community. This aims to ensure the council is able to effectively pursue the long-term ambition set out in The Plan for North Lanarkshire, while ensuring this is underpinned with control and the management of risk, and: • Resources are directed in accordance with agreed policies and according to priorities and in line with corporate project management procedures. • There is sound and inclusive decision making. • There is clear accountability for the use of those resources in achieving defined outcomes for service users and local communities. 1.6 In practice, governance comprises the combination of structures, strategies, policies, plans, frameworks, systems, processes, rules, codes, procedures, cultures, and values that are used to direct, control, and manage a local authority’s operations and activities. These define roles and responsibilities and accountabilities and establish mechanisms to enable a local authority to pursue its vision effectively and ensure that the vision is underpinned with control and the management of risk. The list of items referred to in this paragraph are hereinafter referred to as elements and mechanisms. 1.7 The Strategic Governance Framework therefore outlines the list of elements and mechanisms that demonstrate the council’s compliance with the 7 principles, 21 sub principles, and 91 behaviours and actions contained within the CIPFA Framework. It should be noted that the list of elements and mechanisms (in Appendix B) does not introduce new items of governance to the council, rather its purpose is to collate all existing items (produced by the respective Chief Officer) into the one local code for annual review, assessment, assurance, and reporting purposes. 1.8 To demonstrate compliance with the CIPFA Framework all councils are required to test their governance arrangements (local code) by carrying out the undernoted. This further supports the evidence base for the annual review referred to in paragraph 1.2 and thereby the production of the Annual Governance Statement. • Reviewing existing governance arrangements once a year to ensure that the local code operates effectively in practice. • Maintaining an up-to-date local code of governance that takes into account the environment within which it operates and includes arrangements for ensuring ongoing effectiveness. • Reporting publicly on compliance on an annual basis, including how the governance arrangements have been monitored for effectiveness in the year and identifying planned changes. 1.9 The annual review process to fulfil the requirements set out in paragraph 1.8 above is now well established in the council. This is depicted in Figure 2 in the Strategic Governance Framework (see page 13 in Appendix 1 attached). 1.10 This report is now presented to the Audit and Scrutiny Panel for due consideration in line with the Panel’s role 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”. Strategic Governance Framework 2.1 The refreshed Strategic Governance Framework attached at Appendix 1 sets out the council’s commitment to ensuring that its business is conducted in accordance with the Page 27 of 116
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law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently, and effectively. 2.2 This commitment, allied to the principles of good governance set out in the CIPFA Framework, takes into account the environment within which the council operates and, as such, sets out the council’s local code of governance within the local context and long-term vision of The Plan for North Lanarkshire and its delivery through the Programme of Work. 2.3 This commitment also supports the council in meeting its statutory Best Value obligations as effective governance and accountability arrangements, with openness and transparency in decision-making, schemes of delegation, and effective reporting of performance are essential for taking informed decisions and ensuring effective scrutiny of performance and stewardship of resources. 2.4 The Strategic Governance Framework in Appendix 1 comprises two further appendices: • Appendix A: This lists the 7 principles and 21 sub principles from the national Delivering Good Governance in Local Government: Framework supported by 91 behaviours and actions that according to CIPFA demonstrate good governance in practice. • Appendix B: Each of the specific elements and mechanisms which form the council’s local code of governance have been aligned to the 7 principles (and 21 sub principles) within the CIPFA Framework. The list of elements and mechanisms set out within Appendix B provide a tangible evidence base which enables the council to demonstrate good governance in practice. 2.5 These elements and mechanisms in Appendix B span the complete range of council activities and include arrangements for corporate governance, risk management, and internal financial controls. Each has been assigned a timeframe to support the review programme and ensure they remain timely and effective in supporting delivery of the Programme of Work and The Plan for North Lanarkshire. 2.6 The information within Appendix B also contains an assessment of each of the elements and mechanisms. Based on this assessment each element and mechanism has been assigned a RAG status. This assessment process was first introduced at the end of 2020/21 as a method by which to identify and prioritise items requiring to be reviewed and updated further. 2.7 The use of this assessment process (and corresponding RAG status) aims to ensure all elements and mechanisms are as up to date as they require to be. Definitions supporting the RAG status are noted in the table below: RAG status Definition Red The element or mechanism was last reviewed / updated prior to January 2020 and there is a requirement for an annual (or other regular frequency) review and/or update to be undertaken, or there has been a change in legislation which necessitates a review and update, but either way no commitment has been identified from a Chief Officer to do so and, as such, there is a material impact on the council’s governance arrangements. Amber Although the element or mechanism has been reviewed and/or updated, this has not been carried out within the post pandemic environment to reflect any changes in service delivery or impacts on compliance with good governance, or (while there is a commitment by a Chief Officer to carry out a review and/or update) there has Page 28 of 116
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been significant slippage in the timescale identified to do so. Green The element or mechanism has been reviewed and/or updated since January 2020 and has been subject to an annual (or other regular frequency) review and/or update since then so there is no requirement for a further update at this time, or a Chief Officer or the Business Management Team / Corporate Management Team has already identified that the item requires to be reviewed and/or updated during 2024/25. 2.8 The Strategic Government Framework, and its accompanying review programme, have been recognised as an area of good practice in the latest two annual Internal Audits on Corporate Governance. In May 2023 it was cited that there are “formal and generally robust arrangements in place to ensure that such reviews are undertaken on an annual basis”. 2.9 Notwithstanding the extensive annual review process already in place in respect of the council’s governance arrangements, an internal audit review of corporate governance principles C and D in 2023 concluded that “Management needs to consider how best to evidence the process for identifying, recording, and reporting improvement actions and/or future planned developments in relation to key governance arrangements”. To implement this finding, two recommendations were made: • In preparing the Annual Governance Statement “consider including specific commentary around progress made on improvement actions identified in prior years as well as planned improvement activity that will be undertaken in the year ahead to better allow key stakeholders to monitor performance”. • In reviewing the annual assurance checklists for 2023/24 “consider whether a question regarding identification and completion of relevant specific improvement activity / actions within each Chief Officer’s area of responsibility should be included”. 2.10 With a view to considering the feasibility of implementing the Internal Audit recommendations noted in paragraph 2.9 above, a significant review was undertaken of the processes supporting both the Chief Officer’s year end good governance Assurance Certificate and Checklist and the production of the Annual Governance Statement. Following the conclusion of this review, the next steps and final improvements required were approved by the Corporate Management Team in March 2023 and the implementation of these is summarised below: 2.10.1 The information in the Annual Governance Statement regarding continuous improvement has been reframed to better allow key stakeholders to monitor performance from one year to the next. 1. Previous year’s Annual Governance Statements have comprised a section entitled continuous improvement which reflected any improvements made during the year to the Programme of Work process and its supporting governance and performance arrangements in support of delivering The Plan for North Lanarkshire. As such, this section already reflected any improvements made to the strategic frameworks supporting The Plan for North Lanarkshire (i.e. Policy, Governance, Performance, Self-Evaluation, Project Management) as well as planned future improvements that were known at the time of writing. • To enhance this, and better evidence the process through which improvement actions and/or future planned developments in relation to the council’s governance arrangements are identified, this has been widened so (a) each source of assurance that provides the evidence base for the Annual Governance Statement is specifically itemised therein within an approach / Page 29 of 116
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deployment / assessment and review type structure, and (b) any improvements implemented during the year (or planned for the future) are identified against the corresponding source of assurance as well as within the context of The Plan for North Lanarkshire (where appropriate). For information, the sources of assurance are noted below: Annual Governance Statement sources of assurance 1) Compliance with the CIPFA Position Statement: Audit Committees in Local Authorities (2018). 2) Compliance with the CIPFA Statement on the role of the Head of Internal Audit in public service organisations (2019). 3) Compliance with the CIPFA Statement on the role of the Chief Financial Officer in Local Government (2016). 4) Compliance with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014). 5) Compliance with the Public Sector Internal Audit Standards (PSIAS). 6) Chief Officers year end good governance assurance certificates and checklists. 7) Arm’s length external organisations (ALEOs) year end good governance assurance certificates and checklists. 8) Annual review and update of the local code of governance review programme (i.e. the Strategic Governance Framework). 9) The Annual Audit Report (AAR) process undertaken by the external auditors, together with the national approach to auditing Best Value through thematic audit work. 10) Findings from other audit, scrutiny, or inspection bodies in relation to service specific assessments. 11) The role of the council’s senior management team structure of meetings in respect of good governance, assurance, and continuous improvement. 2. Previous year’s Annual Governance Statements have also referenced the outputs from any Best Value audits undertaken by the external auditors. • To enhance the reporting of improvements in this respect, the Annual Governance Statement now incorporates a link to the dedicated page which has been in place on the council’s website for a number of years to publicise findings and recommendations from all national audits and inspections which the council has undergone. A short summary is now also included in the Annual Governance Statement which outlines how recommendations for improvement are being taken forward in this respect. 3. Previous year’s Annual Governance Statements have also summarised high-level improvement actions (and progress made in terms of implementation) arising from Strategic Self-Evaluation Framework Review Programme exercises. • Moving forward, the content reported in the Annual Governance Statement will ensure the council remains transparent in referencing these self-evaluation exercises. However, as the Strategic Self-Evaluation Framework Review Programme aims to identify areas for improvement within the context of fulfilling the vision set out in The Plan for North Lanarkshire, these improvements will not be reported in isolation. They will be captured within the context of the corresponding source of assurance in respect of the council’s governance arrangements and systems of internal control. 2.10.2 The year end good governance Assurance Certificate and Checklist have been updated to ensure information regarding the implementation of improvement activity within each Chief Officer’s area of responsibility can be appropriately captured. 1. Following the recommendations from an Internal Audit review of corporate Page 30 of 116
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governance in 2023, the mechanism by which to obtain the relevant assurances from Chief Officers was reviewed and refreshed in advance of the 2023/24 year end process. This resulted in the following improvements being implemented: • Each of the Checklist questions was reviewed and updated (where required) to ensure clear alignment to one or more of the principles and/or sub principles in the CIPFA Framework. This approach supported the information that already exists in the Strategic Governance Framework Review Programme by ensuring the questions that are asked in the Checklist do not duplicate information that can already be obtained from other existing sources and/or processes. Where appropriate for added context, alignment to the governance and accountability theme in the national Best Value guidance (2020) was also reflected. • For each question there is now a clear differentiation between (a) asking Chief Officers for a tangible item that can clearly be evidenced (e.g. documents, plans, procedures, etc), and (b) asking for an opinion that will require supplementary context to substantiate its point (i.e. asking if something is systematically deployed across a service or is operating effectively). For questions in respect of (a) the evidence that a tangible item exists was not (in the main) required be submitted as part of the annual Checklist process. Rather the onus is on each Chief Officer to ensure that this evidence is readily available and can be produced should it be requested at a later date for any specific purpose or audience. • Where it is appropriate to do so, questions follow certain aspects of a self- evaluation type structure, i.e. they ask if there is an approach in place, and/or if the approach has been systematically deployed and implemented in all relevant areas of the council and is understood by all, and/or if the approach and its deployment are regularly reviewed to assess effectiveness. • A similar review was undertaken in respect of the questions asked of the council’s arm’s length external organisations (ALEOs) and, as such, the corresponding Certificate and Checklist was updated accordingly. 2. In addition, Chief Officers were asked two specific questions in relation to improvements within their area of service which sought (a) their opinion if the recommendations from the work of others (i.e. internal audit, external auditors, and external audit and inspection bodies, etc) had informed positive improvement(s) within their service, and (b) if all improvement / corrective actions recommended through the work of others had been implemented / acted upon within their service. The review of the 14 Checklists completed for 2023/24 showed that where there had been recommendations made Chief Officers responded positively in respect of both of these aspects. It should be noted though that not all improvement / corrective actions had yet been implemented as they were not yet scheduled to be so and while it was considered that recommendations made from the work of others are in the main helpful in addressing areas for improvement within the service, there are a small number of examples whereby corrective actions could have a negative impact on the resources required for small gain. 3. At the Corporate Management Team in March 2023, it was agreed that their role in respect of continuous improvement in relation to the council’s governance arrangements and systems of internal control would be further complemented by the Business Management Team also having oversight of the Strategic Governance Framework and Annual Governance Statement. This underpins the assurance role of the Business Management Team as this means they are ideally placed to specifically identify any improvement actions and/or future planned developments required in relation to the council’s key governance arrangements, systems of internal control, and continuous improvement. Page 31 of 116
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Next steps 2.11 Although the Strategic Governance Framework is subject to an annual review and refresh process, it is not a static document and as such: (a) Chief Officers are responsible for ensuring that all elements and mechanisms within their area of responsibility are reviewed and updated, and submitted to the Business Management Team / Corporate Management Team and/or relevant Committee (as appropriate), in line with the review programme. (b) The list of elements and mechanisms will continue to be kept under review to ensure any other council developments or legislative changes are considered for inclusion in the council’s local code of governance, as appropriate. 2.12 The undernoted list was first introduced in June 2021 for Chief Officers to use when reviewing and updating each of the elements and mechanisms contained within the Strategic Governance Framework review programme. This has been implemented since 2021/22 with no adverse feedback received. As such, all reports to the Business Management Team / Corporate Management Team, and/or relevant Committee - which provide an update on work to review and/or update an element or mechanism in Appendix B - will continue to require to contain the following: • An assessment of the effectiveness of the particular element or mechanism. • A summary outlining the changes / improvements made to the element or mechanism since the last update. • The role of the element or mechanism in supporting the successful delivery of The Plan for North Lanarkshire. 3. Measures of success 3.1 Good governance enables the council to effectively pursue the ambition set out in The Plan for North Lanarkshire within appropriate controls and the management of risk. It is also central to ensuring effective scrutiny and delivery of statutory Best Value obligations. A measure of success in respect of the Strategic Governance Framework is in ensuring the elements and mechanisms on the review programme remain up to date and effective in supporting delivery of the Programme of Work and achieving the vision set out in The Plan for North Lanarkshire 4. Supporting documentation 4.1 Appendix 1 - Strategic Governance Framework • Appendix A: 7 principles, 21 sub principles, and 91 behaviours and actions that demonstrate good governance in practice in line with the national Delivering Good Governance in Local Government: Framework (2016) • Appendix B: North Lanarkshire Council local code of governance review programme Katrina Hassell Chief Officer (Business and Digital) Page 32 of 116
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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? The Delivering Good Governance in Local Government: Framework (2016) positions the attainment of sustainable economic, societal, and environmental outcomes as a key focus of governance processes and structures. As such this is reflected in the Strategic Governance Framework. 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? Development and publication of the Strategic Governance Framework supports the council’s compliance with the CIPFA Statement on the Role of the Chief Financial Officer in Local Government (2016) in terms of financial controls. 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, Page 33 of 116
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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 scheduled) 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 Delivering Good Governance in Local Government: Framework (2016) positions the attainment of sustainable economic, societal, and environmental outcomes as a key focus of governance processes and structures. As such this is reflected in the Strategic Governance Framework. 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? Work to review and refresh the Strategic Governance Framework - and ensure the council continues to support the Best Value duty and comply with the principles set out within the Delivering Good Governance in Local Government: Framework (2016) - contributes towards 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 34 of 116
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Strategic Governance Framework Appendix 1 Page 35 of 116
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2 Document control Title Strategic Governance Framework Owner Katrina Hassell, Chief Officer (Business and Digital) Contact HassellK@northlan.gov.uk Governance group Audit and Scrutiny Panel Author Susan Lawrie, Strategy and Performance Manager Contact LawrieS@northlan.gov.uk Revision history Number Originator Date review commenced Revision description / record of change 1.0 Linda Johnston, Business Strategy Manager 2020 Original framework created 2.0 Linda Johnston, Business Strategy Manager June 2021 Annual review 3.0 Linda Johnston, Business Strategy Manager June 2022 Annual review 4.0 Linda Johnston, Business Strategy Manager April 2023 Annual review 5.0 Linda Johnston, Business Strategy Manager April 2024 Annual review Document approvals Number Governance group Date approval granted Date approval to be requested (if document still draft) 1.0 Audit and Scrutiny Panel 2020 2.0 Audit and Scrutiny Panel September 2021 3.0 Audit and Scrutiny Panel September 2022 4.0 Audit and Scrutiny Panel June 2023 5.0 Audit and Scrutiny Panel June 2024 Consultation record (for most recent update) Status of document consulted upon Strategic Governance Framework Stakeholders consulted / date Business Management Team (30/05/24); Corporate Management Team (07/06/24) Strategic alignment Next review date Review date April 2025 The Plan for North Lanarkshire and all 5 priorities and 25 ambition statements therein, the Programme of Work, Strategic Policy Framework, Strategic Performance Framework, Strategic Self-Evaluation Framework, Project Management Framework, and Framework for Demonstrating Improved Outcomes for Communities. Page 36 of 116
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3 Table of contents Page number Introduction ……………………………………………………………………………………….. 4 Good governance in the public sector ………………………………………………………... 5 Good governance in local government ………………………………………………………. 6 Local code of governance ………………………………………………………………………. 7 - 13 - Requirements …………………………………………………………………………………. 7 - Local context ………………………………………………………………………………….. 7-8 - Local code of governance ………………………………………………...…………………. 8-10 - Annual review and continuous improvement ………………………………….…………... 10-13 - Roles and responsibilities ……………………………………………………………………. 12 Appendix A: 7 principles and 21 sub principles from the national Framework …………….. 14 - 18 Appendix B: North Lanarkshire Council local code of governance review programme …... 19 - 49 Page 37 of 116
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4 Introduction The Plan for North Lanarkshire sets the long-term strategic direction for the council, partners, and other stakeholders and, most importantly, for each unique community and the people who Live, Learn, Work, Invest, and Visit within North Lanarkshire. It’s a Plan with a shared ambition of inclusive growth and prosperity for all to bring equal benefits and a fairer distribution of wealth to all North Lanarkshire’s people and communities. As the delivery vehicle for The Plan for North Lanarkshire, the Programme of Work enables a recurring and dynamic approach to translating the vision into priorities for action. Approved in March 2023, the Programme of Work to 2028 was reframed within the latest North Lanarkshire context provided by the 28 Health Check Indicators. This new approach was critical to ensure an even greater focus on escalating the pace and depth of change that is essential to ensure a heightened and more strategic focus on not only sustaining the economic and community aspects that will enable local people and communities (and the place that is North Lanarkshire) to thrive, but also on ensuring a more targeted approach to improving social conditions, outcomes, and people’s lives. An annual review programme is in place to ensure that the Programme of Work remains current, relevant, and deliverable. Key to assessing the success of The Plan for North Lanarkshire are six inter-related strategic frameworks that focus on ensuring a corporate one council approach to ensuring each stage of delivery is appropriately aligned, planned, guided, implemented, monitored, and governed. • Strategic Governance Framework • Strategic Policy Framework • Strategic Performance Framework • Strategic Self-Evaluation Framework • Project Management Framework • Framework for Demonstrating Improved Outcomes for Communities To ensure these frameworks remain aligned to The Plan for North Lanarkshire and Programme of Work, all are on a regular review and refresh programme. This also helps the council to ensure it is proactive in responding to social, economic, and environmental trends and changes in legislation and governance, as well as the broad range of national policy changes and new developments. The Strategic Governance Framework is set out within this document. To comply with good governance principles, the council must ensure that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently, and effectively. Good governance is also central to meeting statutory Best Value obligations as effective governance and accountability arrangements - with openness and transparency in decision-making, schemes of delegation, and effective reporting of performance - are essential for taking informed decisions and ensuring effective scrutiny of performance and stewardship of resources. To ensure its good governance arrangements are sound and the highest standards are met, the council is required to set out its commitment to the national principles of good governance by determining its own governance structure (local code) underpinned by these principles. The council’s local code in this respect is set out on pages 7 to 13. This brings the principles of good governance together with legislative requirements and management processes by which the council is directed and controlled and through which it is accountable to, engages with, and leads the local community. This aims to ensure the council is able to effectively pursue the long-term ambition set out in The Plan for North Lanarkshire, while ensuring this is underpinned with control and the management of risk, and: • Resources are directed in accordance with agreed policies and according to priorities, and in line with corporate project management procedures. • There is sound and inclusive decision making. • There is clear accountability for the use of those resources in achieving defined outcomes for service users and local communities. Chief Officers and Elected Members are responsible for determining and implementing the council’s governance arrangements and ensuring the local code is assessed on an annual basis to ensure ongoing effectiveness and compliance. In this respect the council’s annual review process is depicted on page 13 and the review programme is set out in Appendix B (starting from page 19). Page 38 of 116
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5 Good governance in the public sector The principles of good governance in the public sector are defined by the International Framework: Good Governance in the Public Sector which was jointly developed by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the International Federation of Accountants (IFAC). The International Framework offers the definition that: • “Governance comprises the arrangements put in place to ensure that the intended outcomes for stakeholders are defined and achieved.” The fundamental function of good governance is to ensure that governing bodies (and individuals working for public sector entities) achieve their intended outcomes while acting in the public interest at all times. Acting in the public interest implies primary consideration of the benefits for society, which should result in positive outcomes for service users and other stakeholders, and requires: A. Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law. B. Ensuring openness and comprehensive stakeholder engagement. In addition to the overarching requirements for acting in the public interest (as noted in principles A. and B. above), achieving good governance also requires effective arrangements for: C. Defining outcomes in terms of sustainable economic, social, and environmental benefits. D. Determining the interventions necessary to optimise the achievement of the intended outcomes. E. Developing the entity’s capacity, including the capability of its leadership and the individuals within it. F. Managing risks and performance through robust internal control and strong public financial management. G. Implementing good principles in transparency, reporting, and audit, to deliver effective accountability. Figure 1 illustrates the 7 principles of good governance (A. to G. listed above) and outlines how they relate to each other. Principles A. and B. underpin implementation of principles C. to G. Figure 1 also illustrates that good governance is dynamic and that a public body should be committed to improving governance on a continuing basis through a process of review and evaluation. The aim of the International Framework is to encourage better service delivery and improved accountability by establishing a benchmark for aspects of good governance in the public sector. Figure 1 Page 39 of 116
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6 Good governance in local government The principles in the International Framework have been interpreted for the local government environment. This is set out in the Delivering Good Governance in Local Government: Framework (2016) and accompanying Guidance Notes for Scottish Local Authorities (2016) published by CIPFA in association with the Society of Local Authority Chief Executives (SOLACE). The Delivering Good Governance in Local Government: Framework details the 7 principles within the International Framework along with a set of 21 supporting sub-principles. The 7 principles and 21 supporting sub-principles are specified in Appendix A on page 13. In practice, governance comprises the combination of structures, strategies, policies, plans, frameworks, systems, processes, rules, codes, procedures, cultures, and values that are used to direct, control, and manage a local authority’s operations and activities. This includes political, economic, social, environmental, legal, and administrative structures and processes, and other arrangements, as encapsulated in the principles defined in the Framework. These define roles and responsibilities and accountabilities and establish mechanisms to enable a local authority to pursue its vision effectively and ensure that the vision is underpinned with control and the management of risk. The list of items referred to in this paragraph are hereinafter referred to as elements and mechanisms. Through these elements and mechanisms the overall aim is to ensure: • Resources are directed in accordance with agreed policy and according to priorities, and in line with corporate project management procedures. • There is sound and inclusive decision making. • There is clear accountability for the use of those resources in achieving defined outcomes for service users and local communities. The essence underpinning the Delivering Good Governance in Local Government: Framework is that local government develops and shapes its own approach to governance, taking account of the environment within which it operates. Within this context, it is therefore up to each local authority to: • Set out its commitment to the principles of good governance outlined in the Delivering Good Governance in Local Government: Framework. • Determine its own governance arrangements, or local code, underpinned by these principles. • Ensure that the local code operates effectively in practice. A crucial aspect in delivering good governance is the way that it is applied. The ethos of good governance cannot be achieved by structures, rules, and procedures alone. Effectively, good governance needs to be embedded within an organisation and its culture and the need for, and value of, good governance must be explicit. Reflecting the principles in the Delivering Good Governance in Local Government: Framework, the local code set out in this Strategic Governance Framework demonstrates North Lanarkshire Council’s commitment to good governance and outlines the arrangements in place in line with the 7 principles and 21 supporting sub principles. Page 40 of 116
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7 Local code of governance Requirements By defining the 7 principles and 21 supporting sub principles, the Delivering Good Governance in Local Government: Framework provides a structure to help the council set out its arrangements in relation to good governance. All councils are required to test their governance arrangements against these principles by: • Reviewing existing governance arrangements once a year to ensure that the local code operates effectively in practice. • Maintaining an up-to-date local code of governance that takes into account the environment within which it operates and includes arrangements for ensuring ongoing effectiveness. • Reporting publicly on compliance on an annual basis, including how the governance arrangements have been monitored for effectiveness in the year and identifying planned changes. Local context The Plan for North Lanarkshire sets the long-term strategic direction for the council, partners, and other stakeholders and, most importantly, for each unique local community and the people who live, learn, work, invest, and visit within North Lanarkshire. It’s a Plan with a shared ambition of inclusive growth and prosperity for all and a fairer distribution of wealth across all local communities. The Plan provides a very clear and compelling narrative for the shared ambition which the council (and partners) are working towards, a narrative that has become well embedded throughout the strategic management, financial decision making, strategy and policy development, corporate governance approaches, and service delivery across the organisation. The vision was shaped by the area’s demographic, social, and economic profile which at the time showed a positive picture in terms of economic growth, inward investment, employment, and educational attainment, but still unacceptably high levels of deprivation and child poverty and clear areas of inequity and inequality. This meant that not all North Lanarkshire’s people were sharing equally in the improving picture, and there was an element of social exclusion across some towns and communities. A suite of 28 high level health check indicators was therefore identified to collectively provide the context for North Lanarkshire as a place. Since The Plan for North Lanarkshire was established in 2019, these indicators have continued to provide a robust, consistent, and independent way of assessing progress. The most recent results were reviewed by the Policy and Strategy Committee in March 2024, this reported that 50% of the indicators show improvement over the period of The Plan for North Lanarkshire and, as such, the suite of indicators continue to play an important role in informing the strategic planning process through the Programme of Work. As the delivery vehicle for the shared ambition, the Programme of Work provides a roadmap for work across council services and with partners and has been instrumental in stabilising the strategic direction of the council, while allowing for appropriate flexibility in the operational delivery of many complex inter- connected programmes, projects, and plans to ensure a dedicated focus on improvement, change, and delivering services that improve the lives of local people. An annual review process enables a recurring and dynamic approach to realising the shared ambition and has ensured that the Programme of Work has continued to remain current, relevant, and deliverable. This also enables delivery of the long-term vision to be informed by a process that is framed within the context of the local demographic, social, and economic profile that shaped The Plan for North Lanarkshire, as well as the latest national policy changes and developments. This process also ensures a targeted and cohesive approach to establishing the programmes, projects, and activities required to achieve the intended outcomes. The fifth iteration of the Programme of Work (to 2028) was approved in March 2023. This longer-term approach reflected the need to reframe the Page 41 of 116
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8 Programme of Work in line with the latest North Lanarkshire context presented through the suite of 28 health check indicators. This evidence base shows positive trends in a number of key economic indicators (such as gross weekly pay, people claiming employment related benefits, and growth in North Lanarkshire’s economy), as well as significant improvements in educational attainment for all pupils gaining 5+ awards at level 6 and for pupils living in the 20% most deprived areas, leavers achieving a positive post school destination, and school exclusion rates. These trends were considered particularly significant given the extent of the impact of the pandemic that is evident in certain indicators. However, the trends also show that challenges remain, reiterating the need for a new approach to the development of the fifth iteration of the Programme of Work. This was considered crucial to ensure a heightened and more strategic focus on not only sustaining the economic and community aspects, but also on ensuring a more targeted approach to improving social conditions and outcomes. While 2023/24 may have seen a more stable year for council operations compared to recent years, recovery from pandemic changed the landscape within which The Plan for North Lanarkshire requires to be delivered. The impact of inflationary pressures (such as rising contract costs, availability of suppliers and service providers, increasing costs and availability of supply chain materials, and escalating energy prices) has also had implications on the ability of the council to maintain a seamless approach to delivering services and progressing capital programmes that seek to mitigate against the range of different and complex economic, social, and health issues that exist. Locally, inflationary pressures created significant cost of living implications for the people and communities of North Lanarkshire, exacerbating conditions for those in the most vulnerable situations. As such, this backdrop was critical in informing development of the delivery priorities in the Programme of Work to 2028. The Programme of Work to 2028 approved in March 2023 was followed by a supporting single integrated one council Delivery Plan reported to the Policy and Strategy Committee in March 2024. This is underpinned by a governance framework which sets out, inter alia, roles and responsibilities, alignment across other corporate processes, and the corresponding monitoring, reporting, internal controls, and quality assurance arrangements. Local code of governance The council’s local code of governance outlines the elements and mechanisms in place to ensure appropriate oversight and governance of the Programme of Work and enable the council to monitor the delivery of its ambitions, while ensuring arrangements for corporate governance, risk management, and internal financial controls are sound. The specific details on each of the elements and mechanisms in the local code of governance are set out in Appendix B and based on the following. • The council’s long-term strategic ambition and priorities in The Plan for North Lanarkshire and ensuring the vision therein - for inclusive growth and prosperity for all (to bring equal benefits and a fairer distribution of wealth to all North Lanarkshire’s people and communities) - is embedded throughout policy statements agreed by the council, as well as strategic and financial decision making, strategy and policy development, everyday service delivery activities, and corporate governance approaches across the organisation. • Six inter-related strategic frameworks (Policy, Governance, Performance, Self-Evaluation, Project Management, and Demonstrating Improved Outcomes for Communities) which ensure a one council corporate approach to evaluating the success of The Plan for North Lanarkshire and assessing delivery of the Programme of Work (while ensuring each stage of delivery towards achieving the overall ambitions is appropriately aligned, planned, guided, implemented, monitored, and governed). To ensure these frameworks remain fit for purpose, and aligned to The Plan for North Lanarkshire and Programme of Work, all are on a regular review and refresh programme. • A strategic planning process through the Programme of Work which is framed within the context of the local demographic, social, and economic profile that shaped The Plan for North Lanarkshire. While stabilising the strategic direction of the council, the Programme of Work allows for appropriate flexibility in the operational delivery of many complex inter-connected programmes, projects, and plans to ensure a dedicated focus on improvement change, and delivering services that improve the lives of local people. A supporting governance framework and annual review process enables a recurring, dynamic, and cohesive approach to the ongoing development of the Programme of Work and ensures it remains current, relevant, and deliverable. • A Strategic Policy Framework which sits beside the Programme of Work in the strategic planning process to ensure that strategy and policy remain connected to delivery in order to collectively facilitate a co-ordinated approach to identifying the resources and working practices needed to support delivery of the long-term vision. Page 42 of 116
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9 • Standing Orders that allow the council to delegate decision making to committees, sub-committees, or officers and which set out the rules that apply to the running and operation of council and committee meetings. • A Scheme of Administration which clearly sets out functions, terms of reference, and powers of the council and its committees and sub-committees and which is aligned to the organisational structure to facilitate decision making in line with the council’s strategy. • A Scheme of Delegation to Officers which sets out the functions delegated to the Chief Officers of the council, including reference to any Officer listed as being provided with a delegation is, de facto, deemed to hold a politically restricted post (in accordance with legislation). • Financial Regulations and a Scheme of Financial Delegation which, as an integral part of the council’s framework of internal financial controls, are designed to ensure effective stewardship of council funds. Compliance with these regulations ensures that public money is safeguarded and properly accounted for, and all financial transactions are undertaken in a manner which demonstrates openness, transparency, and integrity. The Financial Regulations form a key part of the overarching Financial Strategy and the corporate governance arrangements of the council. • The Financial Strategy which is the overarching framework that establishes the financial strategies and policies to ensure effective financial governance, planning, and management and, as such, sets out the responsibility for safeguarding public funds within the council. It also sets out the role and responsibilities of the Chief Financial Officer, in line with the corresponding CIPFA Statement (2016). The strategies and policies covered by the Financial Strategy include the Capital Strategy, Treasury Management Strategy, Revenue Budget Strategy, the Medium-Term Financial Plan, and the Financial Regulations and Scheme of Financial Delegation. • A Risk Management Strategy which sets out a clear direction for how the council will identify, assess, and manage the risks faced in providing high quality public services and delivering The Plan for North Lanarkshire. The strategy is intended to ensure that the council is risk aware rather than risk averse and that the management of risk is embedded in the council’s policies, procedures, culture, and practices. It is designed to ensure that key decisions are taken with an understanding of risks and their effective control. • Risk management arrangements which form an important element of good corporate governance and are designed to ensure that the council operates systematic and logical processes for managing risks within a comprehensive framework, ensuring that identified risks are managed consistently, effectively, efficiently, and coherently across the organisation. These arrangements include maintenance of a Corporate Risk Register, Service Risk Registers, Project Risk Registers, and regular oversight of the council’s risk management arrangements and management of key corporate risks by the Audit and Scrutiny Panel and Corporate Management Team, and other governing bodies as required. • Codes of Conduct for Elected Members, Chief Officers, and Employees which provide frameworks within which individuals are expected to undertake their duties in a manner which meets the required standards for good governance. This includes ensuring declarations of interests, and declarations for conflicts of interest and gifts and hospitality, are appropriately (and regularly) made and published. • Ensuring legislative obligations are fulfilled through the statutory officer roles, i.e. the posts of head of paid service, monitoring officer, chief financial officer (section 95 officer), and the chief social work officer. • A Counter Fraud Policy which sets out the council’s expectations (that extends to all individuals and organisations with whom it deals) in terms of acting honestly and with integrity and in safeguarding public resources. • A Whistleblowing Procedure (Public Interests Disclosure) which provides a mechanism for employees of the council, and other workers within the council, to report a concern about serious wrongdoing within the council and to do so with security and in confidence. • A senior management team structure which comprises a Business Management Team (to monitor the efficient and effective operation of the council and ensure pursuit of the long-term vision set out in The Plan for North Lanarkshire is underpinned with the relevant assurances and controls in terms of corporate governance, risk management, and financial management), and a Corporate Management Team (to ensure strategic oversight, direction, and a one council approach in terms of delivery of the vision through the Programme of Work. This is supported by a meetings structure comprising service Senior Management Teams focussing on the operational delivery of service remits, and an Operational Management Team to cascade the context, deliverables, and accountabilities and ensure consistency of message in terms of the long-term vision and day to day delivery through the Programme of Work. All Chief Officers are members of the Corporate Management Team; this includes those Chief Officers who hold a statutory officer role. • An Audit and Scrutiny Panel whose activities and functions comply with the standards set out in CIPFA’s Position Statement: Audit Committees in Local Authorities (2018), and whose purpose is 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. • A Strategic Performance Framework which sets out performance measurement at three levels in order to collectively provide an overview of performance (over time and compared to targets) to help understand the impact of council activities on improving services and outcomes for the people and communities of North Lanarkshire. These measures also 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. Page 43 of 116
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10 • Formal reporting arrangements through an annual Performance Reporting Schedule that comprises Chief Officer reviews at service committees and service specific reporting to meet both business and statutory obligations and which is underpinned by five non-negotiable standards that support regular performance assurance reviews. • Comprehensive revenue budget and capital expenditure guidelines, with well-established processes and systems to ensure regular monitoring and reporting, as well as oversight and scrutiny through the council’s senior management team structure of meetings and Elected Members at committee. • A range of programme and project Boards and working groups aligned to the delivery and governance requirements for specific Programme of Work items, e.g. Strategic Capital Delivery Group, six Strategic Programme of Work Boards, Hub Delivery Programme Board, and Data Governance Board. • An Information Governance Policy Framework, comprising policies in terms of records and information management, data protection, information handling and classification, information risk, information security, and payment card industry data security to ensure proper recording of information, appropriate access to that information including by the public, and compliance with legislation. • An Information Security Policy which includes cyber security and aims to protect the council’s information systems and physical assets including supporting processes, networks, and equipment. This is essential to ensure the council can continue to operate and successfully deliver its functions, while finding the right balance between the benefits and risks to the processing of information. • Publicly available complaints and freedom of information procedures with management, monitoring, and performance reporting arrangements. • A range of employment and other policies, and associated guidance documents and forms, which promote and support ethical behaviour and standards of conduct by employees. An employee Performance Review and Development (PRD) process and access to a range of training and development programmes and opportunities through LearnNL for both employees and Elected Members. • Strategic Workforce Plans, supported by service specific workforce plans, which identify the actions required to address workforce gaps and set out detailed service level actions to address the risks and issues facing the current workforce and identify the gaps in terms of fulfilling service provision and delivering on priorities and the long-term vision now and in the future. • Independent and objective assurances provided by Internal Audit whose function is designed to add value and improve the council’s operations. The Internal Audit function operates within the Public Sector Internal Audit Standards (PSIAS) and the council’s Internal Audit Charter. The service undertakes an annual programme of work approved by the Audit and Scrutiny Panel which is based on the Internal Audit Annual Plan. This plan is risk based and is periodically updated to reflect evolving issues and changes. • Independent and objective assurances provided by the external auditors through the Annual Audit Report (AAR) process and other audit, inspection, and regulatory bodies. Annual review and continuous improvement Introduced under the Local Government in Scotland Act 2003, the council has a duty to ensure Best Value. This requires the council to “make arrangements to secure continuous improvement in performance” in the way in which its functions are exercised, having regard to a combination of economy, efficiency, and effectiveness. Good governance is central to meeting statutory Best Value obligations as effective governance and accountability arrangements - with openness and transparency in decision-making, schemes of delegation, and effective reporting of performance - are essential for taking informed decisions and ensuring effective scrutiny of performance and stewardship of resources. Areas requiring improvement are identified through the work of the Internal Audit function, the external auditors Annual Audit Report (AAR), the national thematic Best Value audit work, the various external bodies’ audit / inspection / regulation reports, and the council’s Strategic Self-Evaluation Framework rolling review programme. Outputs from these processes are a key piece of evidence which informs the development of the Annual Governance Statement. The council’s Strategic Self-Evaluation Framework is aligned to the seven Best Value themes: • Vision and leadership. • Governance and accountability. • Use of resources. • Partnerships and collaborative working. Page 44 of 116
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11 • Working with communities. • Sustainable development. • Fairness and equality. These themes are outlined within the national guidance (updated in 2020 and available at: https://www.gov.scot/publications/best-value-revised-statutory- guidance-2020/) which is designed to help local authorities and other public bodies to demonstrate continuous improvement in their performance. Improvements to the process to review effectiveness were first introduced in 2021 through the establishment of the following list for Chief Officers to use when reviewing and updating each of the elements and mechanisms on the Strategic Governance Framework review programme. As such, all reports to the Business Management Team, Corporate Management Team, and/or a Committee - which provide an update on work to review and refresh an element or mechanism in Appendix B - require to contain the following: • An assessment of the effectiveness of the particular element or mechanism. • A summary outlining the changes / improvements made to the element or mechanism since the last update. • The role of the element or mechanism in supporting the successful delivery of The Plan for North Lanarkshire. An assessment of the council’s governance arrangements is undertaken on an annual basis. The annual review process is outlined in Figure 2 on page 13, this aims to: • Ensure the council can demonstrate compliance with the principles in the Delivering Good Governance in Local Government: Framework and that the governance arrangements operate effectively in practice. • Identify any improvement actions and/or future planned developments required in relation to the council’s key governance arrangements and continuous improvement activity. The annual review process is an important aspect of the work undertaken each year to assess the effectiveness of the council’s governance arrangements and system of internal control and establish the evidence base to inform the council’s Annual Governance Statement and various elements and mechanisms, and roles and responsibilities, play a key role in this process. These sources of assurance are listed below: 1) Compliance with the CIPFA Position Statement: Audit Committees in Local Authorities (2018). 2) Compliance with the CIPFA Statement on the role of the Head of Internal Audit in public service organisations (2019). 3) Compliance with the CIPFA Statement on the role of the Chief Financial Officer in Local Government (2016). 4) Compliance with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014). 5) Compliance with the Public Sector Internal Audit Standards (PSIAS). 6) Chief Officers year end good governance assurance certificates and checklists. 7) Arm’s length external organisations (ALEOs) year end good governance assurance certificates and checklists. 8) Annual review and update of the local code of governance review programme (i.e. the Strategic Governance Framework). 9) The Annual Audit Report (AAR) process undertaken by the external auditors, together with the national approach to auditing Best Value through thematic audit work. 10) Findings from other audit, scrutiny, or inspection bodies in relation to service specific assessments. 11) The role of the council’s senior management team structure of meetings in respect of good governance, assurance, and continuous improvement. Page 45 of 116
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12 Roles and responsibilities Chief Officers and Elected Members are responsible for determining and implementing the council’s governance arrangements and ensuring the Strategic Governance Framework is assessed on an annual basis to ensure ongoing effectiveness and compliance. In identifying how the effectiveness of the council’s governance arrangements have been monitored and evaluated in the year, the Business Management Team and Corporate Management Team also have a key role to play in terms of identifying any improvement actions and/or future planned developments in relation to key governance arrangements, systems of internal control, and continuous improvement activity. • The Business Management Team role in relation to governance, strategic oversight, assurance, and continuous improvement is carried out in line with their remit “To monitor the efficient and effective operation of the council” and 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 means the Business Management Team role is that of assurance, not directing or monitoring delivery unless the ongoing assessment of assurance require improvement in this respect. • The Corporate Management Team role in relation to governance, strategic oversight, assurance, and continuous improvement is carried out in line with their remit “To consider the strategic context and environment within which the council is operating, understand the position of the organisation, and consider the future direction. To consider the implementation of strategic decisions at a council wide level and the impact on the delivery of The Plan for North Lanarkshire and Programme of Work. To agree the one council approach required in order to deliver on the council’s priorities (in partnership where required) in line with the strategic direction and monitor the delivery of the Programme of Work.” This means the Corporate Management Team role has a focus on improvement over time in delivering the council’s strategic priorities through the Programme of Work. As set out in the Scheme of Administration (October 2022), the Audit and Scrutiny Panel is a key component of the council’s corporate governance arrangements. The purpose of the Audit and Scrutiny Panel is 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. It provides independent review of the council’s governance, risk management, performance and control frameworks and oversees the financial reporting and annual governance processes. It oversees the council’s internal and external audit arrangements, helping to ensure efficient and effective assurance arrangements are in place. It also undertakes the scrutiny function within the council’s governance framework and will establish short life task group reviews, as required, to undertake in-depth examination of particular areas of policy and/or service delivery with a view to making recommendations for improvement.” Page 46 of 116
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13 Figure 2 Annual review process Page 47 of 116
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14 Appendix A: 7 principles and 21 sub principles The 7 principles (A. to G.) within the International Framework: Good Governance in the Public Sector together with the 21 supporting sub-principles set out in the Delivering Good Governance in Local Government: Framework are listed in the table below (pages 14 to 18) along with 91 examples of behaviours and actions that according to CIPFA demonstrate good governance in practice. A. Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law. B. Ensuring openness and comprehensive stakeholder engagement. C. Defining outcomes in terms of sustainable economic, social, and environmental benefits. D. Determining the interventions necessary to optimise the achievement of the intended outcomes. E. Developing the entity’s capacity, including the capability of its leadership and the individuals within it. F. Managing risks and performance through robust internal control and strong public financial management. G. Implementing good principles in transparency, reporting, and audit, to deliver effective accountability. e.g. • Principle A = Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law. • Sub-principles = A1. BEHAVING WITH INTEGRITY, A2. DEMONSTRATING STRONG COMMITMENT TO ETHICAL VALUES, A3. RESPECTING THE RULE OF LAW. • Listed below that are the behaviours and actions that demonstrate good governance in practice (e.g. 1.1 to 1.4; 2.1 to 2.4; and 3.1 to 3.5). A. Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law A1. BEHAVING WITH INTEGRITY A2. DEMONSTRATING STRONG COMMITMENT TO ETHICAL VALUES A3. RESPECTING THE RULE OF LAW 1.1 Ensuring members and officers behave with integrity and lead a culture where acting in the public interest is visibly and consistently demonstrated thereby protecting the reputation of the organisation. 1.2 Ensuring members take the lead in establishing specific standard operating principles or values for the organisation and its staff and that they are communicated and understood. These should build on the seven Principles of Public Life (also known as the Nolan principles), i.e. selflessness, integrity, objectivity, accountability, openness, honesty, and leadership. 1.3 Leading by example and using these standard operating principles or values as a framework for decision making and other actions. 1.4 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 effectively. 2.1 Seeking to establish, monitor and maintain the organisation’s ethical standards and performance. 2.2 Underpinning personal behaviour with ethical values and ensuring they permeate all aspects of the organisation’s culture and operation. 2.3 Developing and maintaining robust policies and procedures which place emphasis on agreed ethical values. 2.4 Ensuring that external providers of services on behalf of the organisation are required to act with integrity and in compliance with high ethical standards expected by the organisation. 3.1 Ensuring members and staff demonstrate a strong commitment to the rule of the law as well as adhering to relevant laws and regulations. 3.2 Creating the conditions to ensure that the statutory officers, other key post holders and members are able to fulfil their responsibilities in accordance with legislative and regulatory requirements. 3.3 Striving to optimise the use of the full powers available for the benefit of citizens, communities, and other stakeholders. 3.4 Dealing with breaches of legal and regulatory provisions effectively. 3.5 Ensuring corruption and misuse of power are dealt with effectively. Page 48 of 116
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15 B. Ensuring openness and comprehensive stakeholder engagement B1. OPENNESS B2. ENGAGING COMPREHENSIVELY WITH INSTITUTIONAL STAKEHOLDERS B3. ENGAGING STAKEHOLDERS EFFECTIVELY, INCLUDING INDIVIDUAL CITIZENS AND SERVICE USERS 1.1 Ensuring an open culture through demonstrating, documenting, and communicating the organisation’s commitment to openness. 1.2 Making decisions that are open about actions, plans, resource use, forecasts, outputs, and outcomes. The presumption is for openness. If that is not the case, a justification for the reasoning for keeping a decision confidential should be provided. 1.3 Providing clear reasoning and evidence for decisions in both public records and explanations to stakeholders and being explicit about the criteria, rationale and considerations used. In due course, ensuring that the impact and consequences of those decisions are clear. 1.4 Using formal and informal consultation and engagement to determine the most appropriate and effective interventions/ courses of action. 2.1 Effectively engaging with institutional stakeholders to ensure that the purpose, objectives and intended outcomes for each stakeholder relationship are clear so that outcomes are achieved successfully and sustainably. 2.2 Developing formal and informal partnerships to allow for resources to be used more efficiently and outcomes achieved more effectively. 2.3 Ensuring that partnerships are based on - trust, a shared commitment to change, a culture that promotes and accepts challenge among partners - and that the added value of partnership working is explicit. 3.1 Establishing a clear policy on the type of issues that the organisation will meaningfully consult with or involve individual citizens, service users and other stakeholders to ensure that service (or other) provision is contributing towards the achievement of intended outcomes. 3.2 Ensuring that communication methods are effective, and that members and officers are clear about their roles with regard to community engagement. 3.3 Encouraging, collecting, and evaluating the views and experiences of communities, citizens, service users and organisations of different backgrounds including reference to future needs. 3.4 Implementing effective feedback mechanisms in order to demonstrate how their views have been taken into account. 3.5 Balancing feedback from more active stakeholder groups with other stakeholder groups to ensure inclusivity. 3.6 Taking account of the interests of future generations of taxpayers and service users. C. Defining outcomes in terms of sustainable economic, social, and environmental benefits C1. DEFINING OUTCOMES C2. SUSTAINABLE ECONOMIC, SOCIAL, AND ENVIRONMENTAL BENEFITS 1.1 Having a clear vision which is an agreed formal statement of the organisation’s purpose and intended outcomes containing appropriate performance indicators, which provides the basis for the organisation’s overall strategy, planning and other decisions. 1.2 Specifying the intended impact on, or changes for, stakeholders including citizens and service users. It could be immediately or over the course of a year or longer. 1.3 Delivering defined outcomes on a sustainable basis within the resources that will be available. 1.4 Identifying and managing risks to the achievement of outcomes. 1.5 Managing service users’ expectations effectively with regard to determining priorities and making the best use of the resources available. 2.1 Considering and balancing the combined economic, social, and environmental impact of policies, plans and decisions when taking decisions about service provision. 2.2 Taking a longer-term view with regard to decision making, taking account of risk and acting transparently where there are potential conflicts between the organisation’s intended outcomes and short-term factors such as the political cycle or financial constraints. 2.3 Determining the wider public interest associated with balancing conflicting interests between achieving the various economic, social, and environmental benefits, through consultation where possible, in order to ensure appropriate trade-offs. 2.4 Ensuring fair access to services. D. Determining the interventions necessary to optimise the achievement of the intended outcomes Page 49 of 116
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16 D1. DETERMINING INTERVENTIONS D2. PLANNING INTERVENTIONS D3. OPTIMISING ACHIEVEMENT OF INTENDED OUTCOMES 1.1 Ensuring decision makers receive objective and rigorous analysis of a variety of options indicating how intended outcomes would be achieved and including the risks associated with those options. Therefore ensuring best value is achieved however services are provided. 1.2 Considering feedback from citizens and service users when making decisions about service improvements or where services are no longer required in order to prioritise competing demands within limited resource available including people, skills, land, and assets and bearing in mind future impacts. 2.1 Establishing and implementing robust planning and control cycles that cover strategic and operational plans, priorities, and targets. 2.2 Engaging with internal and external stakeholders in determining how services and other courses of action should be planned and delivered. 2.3 Considering and monitoring risks facing each partner when working collaboratively including shared risks. 2.4 Ensuring arrangements are flexible and agile so that the mechanisms for delivering outputs can be adapted to changing circumstances. 2.5 Establishing appropriate key performance indicators (KPIs) as part of the planning process in order to identify how the performance of services and projects is to be measured. 2.6 Ensuring capacity exists to generate the information required to review service quality regularly. 2.7 Preparing budgets in accordance with organisational objectives, strategies, and the medium-term financial plan. 2.8 Informing medium and long-term resource planning by drawing up realistic estimates of revenue and capital expenditure aimed at developing a sustainable funding strategy. 3.1 Ensuring the medium term financial strategy integrates and balances service priorities, affordability, and other resource constraints. 3.2 Ensuring the budgeting process is all-inclusive, taking into account the full cost of operations over the medium and longer term. 3.3 Ensuring the medium-term financial strategy sets the context for ongoing decisions on significant delivery issues or responses to changes in the external environment that may arise during the budgetary period in order for outcomes to be achieved while optimising resource usage. 3.4 Ensuring the achievement of ‘social value’ through service planning and commissioning. E. Developing the entity’s capacity, including the capability of its leadership and the individuals within it E1. DEVELOPING THE ENTITY’S CAPACITY E2. DEVELOPING THE CAPABILITY OF THE ENTITY’S LEADERSHIP AND OTHER INDIVIDUALS 1.1 Reviewing operations, performance and use of assets on a regular basis to ensure their continuing effectiveness. 1.2 Improving resource use through appropriate application of techniques such as benchmarking and other options in order to determine how the authority’s resources are allocated so that outcomes are achieved effectively and efficiently. 1.3 Recognising the benefits of partnerships and collaborative working where added value can be achieved. 1.4 Developing and maintaining an effective workforce plan to enhance the strategic allocation of resources. 2.1 Developing protocols to ensure that elected and appointed leaders negotiate with each other regarding their respective roles early on in the relationship and that a shared understanding of roles and objectives is maintained. 2.2 Publishing a statement that specifies the types of decisions that are delegated and those reserved for the collective decision making of the governing body. 2.3 Ensuring the leader and the chief executive have clearly defined and distinctive leadership roles within a structure, whereby the chief executive leads the authority in implementing strategy and managing the delivery of services and other outputs set by members and each provides a check and a balance for each other’s authority. 2.4 Developing the capabilities of members and senior management to achieve effective shared leadership and to enable the organisation to respond successfully Page 50 of 116
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17 to changing legal and policy demands as well as economic, political, and environmental changes and risks by - ensuring members and staff have access to appropriate induction tailored to their role and that ongoing training and development matching individual and organisational requirements is available and encouraged, ensuring members and officers have the appropriate skills, knowledge, resources, and support to fulfil their roles and responsibilities and ensuring that they are able to update their knowledge on a continuing basis, and ensuring personal, organisational and system-wide development through shared learning, including lessons learnt from both internal and external governance weaknesses. 2.5 Ensuring that there are structures in place to encourage public participation. 2.6 Taking steps to consider the leadership’s own effectiveness and ensuring leaders are open to constructive feedback from peer review and inspections. 2.7 Holding staff to account through regular performance reviews which take account of training or development needs. 2.8 Ensuring arrangements are in place to maintain the health and wellbeing of the workforce and support individuals in maintaining their own physical and mental wellbeing F. Managing risks and performance through robust internal control and strong public financial management F1. MANAGING RISK F2. MANAGING PERFORMANCE F3. ROBUST INTERNAL CONTROL F4. MANAGING DATA F5. STRONG PUBLIC FINANCIAL MANAGEMENT 1.1 Recognising that risk management is an integral part of all activities and must be considered in all aspects of decision making. 1.2 Implementing robust and integrated risk management arrangements and ensuring that they are working effectively. 1.3 Ensuring that responsibilities for managing individual risks are clearly allocated. 2.1 Monitoring service delivery effectively including planning, specification, execution, and independent post- implementation review. 2.2 Making decisions based on relevant, clear objective analysis and advice pointing out the implications and risks inherent in the organisation’s financial, social, and environmental position and outlook. 2.3 Ensuring an effective scrutiny or oversight function is in place which encourages constructive challenge and debate on policies and objectives before, during and after decisions are made thereby enhancing the organisation’s performance 3.1 Aligning the risk management strategy and policies on internal control with achieving objectives. 3.2 Evaluating and monitoring risk management and internal control on a regular basis. 3.3 Ensuring effective counter fraud and anti-corruption arrangements are in place. 3.4 Ensuring additional assurance on the overall adequacy and effectiveness of the framework of governance, risk management, and control is provided by the internal auditor. 3.5 Ensuring an audit committee or equivalent group or function which is independent 4.1 Ensuring effective arrangements are in place for the safe collection, storage, use and sharing of data, including processes to safeguard personal data. 4.2 Ensuring effective arrangements are in place and operating effectively when sharing data with other bodies. 4.3 Reviewing and auditing regularly the quality and accuracy of data used in decision making and performance monitoring. 5.1 Ensuring financial management supports both long-term achievement of outcomes and short-term financial and operational performance. 5.2 Ensuring well-developed financial management is integrated at all levels of planning and control, including management of financial risks and controls. Page 51 of 116
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18 and that of any organisation for which it is responsible. OR (for a committee system) Encouraging effective and constructive challenge and debate on policies and objectives to support balanced and effective decision making. 2.4 Providing members and senior management with regular reports on service delivery plans and on progress towards outcome achievement. 2.5 Ensuring there is consistency between specification stages (such as budgets) and post- implementation reporting (e.g. financial statements). of the executive and accountable to the governing body: provides a further source of effective assurance regarding arrangements for managing risk and maintaining an effective control environment, and that its recommendations are listened to and acted upon. G. Implementing good practices in transparency, reporting, and audit to deliver effective accountability G1. IMPLEMENTING GOOD PRACTICE IN TRANSPARENCY G2. IMPLEMENTING GOOD PRACTICE IN REPORTING G3. ASSURANCE AND EFFECTIVE ACCOUNTABILITY 1.1 Writing and communicating reports for the public and other stakeholders in an understandable style appropriate to the intended audience and ensuring that they are easy to access and interrogate. 1.2 Striking a balance between providing the right amount of information to satisfy transparency demands and enhance public scrutiny while not being too onerous to provide and for users to understand. 2.1 Reporting at least annually on performance, value for money, and the stewardship of its resources. 2.2 Ensuring members and senior management own the results. 2.3 Ensuring robust arrangements for assessing the extent to which the principles contained in the Framework have been applied and publishing the results on this assessment including an action plan for improvement and evidence to demonstrate good governance (annual governance statement). 2.4 Ensuring that the Framework is applied to jointly managed or shared service organisations as appropriate. 2.5 Ensuring the performance information that accompanies the financial statements is prepared on a consistent and timely basis and the statements allow for comparison with other similar organisations. 3.1 Ensuring that recommendations for corrective action made by external audit are acted upon. 3.2 Ensuring an effective internal audit service with direct access to members is in place which provides assurance with regard to governance arrangements and recommendations are acted upon. 3.3 Welcoming peer challenge, reviews and inspections from regulatory bodies and implementing recommendations. 3.4 Gaining assurance on risks associated with delivering services through third parties and that this is evidenced in the annual governance statement. 3.5 Ensuring that when working in partnership, arrangements for accountability are clear and that the need for wider public accountability has been recognised and met. Page 52 of 116
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19 Appendix B: North Lanarkshire Council local code of governance review programme Each of the specific elements and mechanisms which form the council’s local code of governance (as outlined on pages 7 to 13) have been aligned to the 7 principles (and 21 sub principles) within the International Framework: Good Governance in the Public Sector and the local government Delivering Good Governance in Local Government: Framework (2016). These are detailed below along with hyperlinks to the relevant documentation, an update on the review timeframe and date of next update (where appropriate), and an assessment of the current position. Based on this assessment each element and mechanism has been assigned a RAG status. The use of this assessment process (and corresponding RAG status) aims to ensure all elements and mechanisms are as up to date as they require to be, while providing a method by which to identify and prioritise items requiring to be reviewed and/or updated further. Definitions supporting the RAG status are noted in the table below: RAG status Definition Red The element or mechanism was last reviewed / updated prior to January 2020 and there is a requirement for an annual (or other regular frequency) review and/or update to be undertaken, or there has been a change in legislation which necessitates a review and update, but either way no commitment has been identified from a Chief Officer to do so and, as such, there is a material impact on the council’s governance arrangements. Amber Although the element or mechanism has been reviewed and/or updated, this has not been carried out within the post pandemic environment to reflect any changes in service delivery or impacts on compliance with good governance, or (while there is a commitment by a Chief Officer to carry out a review and/or update) there has been significant slippage in the timescale identified to do so. Green The element or mechanism has been reviewed and/or updated since January 2020 and has been subject to an annual (or other regular frequency) review and/or update since then so there is no requirement for a further update at this time, or a Chief Officer or the Business Management Team (BMT) / Corporate Management Team (CMT) has already identified that the item requires to be reviewed and/or updated during 2024/25. Elements and mechanisms in the North Lanarkshire Council local code of governance Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 Standing Orders Local authorities are corporate bodies created by statute and must make corporate decisions. Legislation allows local authorities to delegate most decision making to committees, sub-committees, or officers. This means that committees only operate within the remits given to them by their council. The Council has delegated certain matters to committees, sub-committees and officers, and the Standing Orders set out the rules which apply to the running and operation of Council and its committee meetings. The latest update to the Standing Orders was approved in December 2023. Standing Orders are published on the council’s website: link to file Latest version: December 2023. Review timeframe: Changes to Standing Orders are led by Elected Members who can propose amendments as they wish; these require approval at a meeting of the Council prior to adoption. Assessment: Standing Orders are subject to regular review to determine if they remain fit for purpose and to identify any revisions required to further improve the efficient operation of the council’s decision making process. The latest update to the Standing Orders was approved in December 2023. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Financial Regulations and Scheme of Financial Delegation Financial Regulations are an integral part of the council’s framework of internal financial controls; these are designed to ensure the effective stewardship of the council’s funds. Compliance with these regulations will ensure that public money is safeguarded and properly accounted for, and all council financial transactions are undertaken in a manner which demonstrates openness, transparency, and integrity. The Financial Regulations form a key part of the overarching Financial Strategy and the corporate governance arrangements of the council. • 2023 review of Financial Regulations and Scheme of Financial Delegation - November 2023: link to file • 2022 review of Financial Regulations and Scheme of Financial Delegation - November 2022: link to file • 2021 review of Financial Regulations and Scheme of Financial Delegation - November 2021: link to file Latest version: November 2023. Review timeframe: An annual review process is in place to ensure that both the Financial Regulations and Scheme of Financial Delegation remain appropriate for the effective stewardship of the council’s financial resources. Assessment: Financial regulations are subject to regular review. Key changes made to the Financial Regulations following the most recent review in November 2023, and the rationale for each change, are listed in the accompanying committee report. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Scheme of Administration The Scheme of Administration provides the details and different functions of committees and other groups of each council and the delegation of authority to carry out the functions of the council. It sets out the terms of reference for committees, sub- committees, and panels of the council. At its meeting on 6th October 2022, the Council approved new governance arrangements and the Scheme of Administration link to file. At its meeting on 28th March 2024, the Council approved amendments to the Scheme of Administration to reflect the organisational and structural changes agreed by the Policy and Strategy Committee at its meeting on 7 December 2023, and to streamline Latest version: March 2024. Review timeframe: The Scheme of Administration is reviewed following every local government election. Officers and Elected Members can propose amendments as they wish throughout each term; these require approval at a meeting of the Council prior to adoption. Assessment: The latest update to the Scheme of Administration was approved at the Council meeting in March 2024. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Page 53 of 116
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20 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 the oversight for Active and Creative Communities under the remit of a single committee: link to file The Scheme of Administration is published on the council’s website: link to file Committee arrangements Committee arrangements support the implementation of the Scheme of Administration, for example through a timetable of meetings. At its meeting on 6th October 2022, the Council approved new governance arrangements - including the timetable of meetings for 2022-27: link to file The council maintains a list of the membership of committees, sub-committees, panels, working groups, and other bodies and any amendments to this are approved through the Council meeting. Latest version: October 2022. Review timeframe: The Scheme of Administration is reviewed following every local government election. Officers and Elected Members can propose amendments as they wish throughout each term; these require approval at a meeting of the Council prior to adoption. Assessment: The Scheme of Administration approved in October 2022 included a timetable of meetings up to 2027. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Scheme of Delegation to Officers The Scheme of Delegation sets out the powers delegated by the Council to officers, pursuant to the Local Government (Scotland) Act 1973. The Scheme is intended to facilitate the efficient conduct of council business by clearly setting out the nature and extent of the powers delegated to officers by the Council. In exercising any delegated function, the nominated officer will take account of any appropriate council practice or procedure, any managerial instruction given, and any other similar consideration. The Scheme of Delegation to Officers is subject to: 1. The policies adopted by the council. 2. Appropriate provision for financial outlays having been made in the estimates for the current year. 3. The right of an officer to consult with the Chief Executive on any matter or to refer any matter to the appropriate committee or sub-committee of the council. 4. The obligation on the Chief Executive and on each Chief Officer to arrange consultations with individual local Members on matters which affect their areas in all cases in which the council practice or procedures so require. 5. The requirement that the Chief Executive and all Chief Officers observe the principles of corporate management. 6. Statutory authority granted only to certain officers. • Scheme of Delegation to Officers - October 2023: link to file • A copy is available on the council’s website: link to file Latest version: October 2023. Review timeframe: As a matter of practice, the Scheme of Delegation to Officers is reviewed following any organisational change or restructure. Assessment: Changes approved in April 2019, reflect realignments in the organisational structure implemented in September 2018. As the council’s Monitoring Officer, the Chief Officer (Legal and Democratic), has delegated authority to update the Scheme of Delegation to Officers as necessary in line with statutory changes and organisational requirements. As per an Internal Audit Corporate Governance report to the Audit and Scrutiny Panel in May 2023 [ link to file ] there was a management commitment to review / refresh this document and this was completed and reported to the Council meeting in October 2023. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ ✓ Code of Conduct for Chief Officers This provides a framework within which Chief Officers of the council are expected to undertake their duties in a manner which meets the required standards for good governance. • Code of Conduct for Officers - updated in June 2023: link to file • Code of Conduct for Officers - November 2017: link to file Latest version: June 2023. Review timeframe: As required based on organisational changes and to reflect updates in respect of legislation, best practice, and government guidance. Assessment: Amendments in 2023 were made to reflect latest organisational structural arrangements. In addition, sections 13 (police enquiries) and 17 (potential conflicts of interest) were expanded to include more explicit wording in respect of the particular requirements in these areas. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ Chief Officers Register of Interests A process to register the interests of Chief Officers was implemented in November 2017: link to file To comply with this, Chief Officers are required to detail any other renumeration they receive, property they may own, memberships of clubs and associations or any other financial interests (for example directorships or shareholdings), they may have. Registers are published on the council’s website: https://www.northlanarkshire.gov.uk/your-council/how-council-works/chief-officers- register-interests Latest version: Registers and council website last updated in February 2024. Review timeframe: Annual. Assessment: Annual process in place which is co- ordinated by the Depute Monitoring Officer in Legal and Democratic (as that postholder does not require to register their interests within the Chief Officers Register of Interests). RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ Statutory officer posts • The post of head of paid service (the chief executive) was established under the Local Government and Housing Act 1989 and is responsible to councillors for the Latest version: Ongoing statutory obligation. Review timeframe: N/A. Assessment: All statutory posts are currently filled. Chief Executive / Chief Officer (Legal and Democratic) / ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 54 of 116
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21 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 staffing of the council and ensuring the work in different departments is co-ordinated. • The monitoring officer was established under the Local Government and Housing Act 1989 and is responsible for ensuring that the council observes its governance arrangements and operates legally. This includes reporting on the legality of matters, mal-administration, and the conduct of councillors and officers. • The chief financial officer (section 95 officer or the senior financial officer) was established under the Local Government (Scotland) Act 1973 and is responsible for the financial affairs of the council. • The chief social work officer was established under the Social Work (Scotland Act) 1968. Councils are required to appoint a professionally qualified chief social work officer to provide members and senior officers with effective, professional advice about the delivery of social work services. There are also a number of other statutory posts across services in line with legislation. RAG: Chief Officer (Finance) / Chief Social Work Officer Employee Code of Conduct The Code of Conduct is the standard which is applicable to all employees. While Chief Officers have additional responsibilities, and many other professions within the council work to dedicated professional standards (e.g. teaching or social care), the Employee Code of Conduct should be considered as the foundation of the high standards applicable to all. An introduction and commitment from the Chief Executive reinforces this view. • Employee Code of Conduct - May 2024: link to file available to all employees on MyNL. • Employee Code of Conduct - March 2021: link to file • A mandatory eLearning module on the Employee Code of Conduct has been developed (on LearnNL) and a NLC Announcement was issued to staff in April 2023 regarding the new module and the need to complete it every two years. Latest version: March 2021. Review timeframe: As required to reflect updates and alignment to HR and other council policies and procedures. Assessment: The May 2024 version of the Employee Code of Conduct reflects updated links to policies and guidance on InsideNL (e.g. the counter fraud policy, whistleblowing policy, and social media guidance). Prior to that, the latest changes to the Employee Code of Conduct were approved at the Finance and Resources Committee in March 2021. This included information on alcohol and drugs and followed changes to the interim homeworking scheme at the time (introduced in September 2020 in direct response to the pandemic), and reflected the associated changes proposed to the Employee Code of Conduct and Acceptable use of ICT policies. As per an Internal Audit Corporate Governance report to the Audit and Scrutiny Panel in May 2023 [ link to file ], there is a management commitment to review / refresh this document and consider the alignment and refresh of the Codes for the former Culture NL and NL Leisure employees (as appropriate) by October 2023. Work is currently underway with Chief Officers to review and update the content of the existing council Code of Conduct with a view to seeking approval of the revised policy at Finance and Resources Committee in cycle 3 of 2024. RAG: Chief Officer (People Resources) ✓ ✓ ✓ ✓ ✓ Conflicts of Interest Register When an employee identifies a potential conflict of interest, they must complete the relevant form after discussion with their line manager. Employees must then submit the form to their Chief Officer. This must be done as soon as possible and within one month of the conflict or potential conflict of interest. A new section in this respect was introduced to the Employee Code of Conduct in May 2018: link to file A Guidance document and templates are available on InsideNL: Conflicts of Interest The guidance is reviewed annually in line with the Chief Officer’s Assurance Statement and Checklist process. A NLC Announcement was issued in April 2024 reminding all employees of their obligations in respect of conflicts of interest; this also provided links to the supporting guidance and employee declaration form. Latest version: March 2024. Review timeframe: Annual. Assessment: In May 2018, the conflicts of interest procedure was updated in the Employee Code of Conduct. A process is in place whereby Chief Officers are required to submit their up to date Service Registers annually (as part of the Chief Officer’s Assurance Statement and Checklist process) for all their staff for independent review and reporting to the BMT/CMT. The annual governance report to the BMT/CMT (last submitted in May/June 2024) which covers the annual review of the Strategic Governance Framework) provided the BMT/CMT with an annual update in this respect. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ Gifts and Hospitality Register Employees are required to advise their line manager of any gifts or hospitality received by them, or offered to them, in the course of their employment with the council. After discussing any gifts or hospitality received (or offered) with their line manager, employees must complete and submit the relevant form to their Chief Officer. This must be done as soon as possible and within one month of being offered the gift or Latest version: March 2024. Review timeframe: Annual. Assessment: In May 2018, the gifts and hospitality procedure was updated in the Employee Code of Conduct. A process is in place whereby Chief Officers are Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ Page 55 of 116
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22 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 hospitality. Further details on what should be recorded were included in the updated version of the Employee Code of Conduct in May 2018: link to file A Guidance document and templates are available on InsideNL: Gifts and Hospitality The guidance is reviewed annually in line with the Chief Officer’s Assurance Statement and Checklist process. A NLC Announcement was issued in April 2024 reminding all employees of their obligations in respect of gifts and hospitality; this also provided links to the supporting guidance and employee declaration form. required to submit their up to date Service Registers annually (as part of the Chief Officer’s Assurance Statement and Checklist process) for all their staff for independent review and reporting to the BMT/CMT. The annual governance report to the BMT/CMT (last submitted in May/June 2024) which covers the annual review of the Strategic Governance Framework) provided the BMT/CMT with an annual update in this respect. RAG: Councillors Code of Conduct The Ethical Standards in Public Life etc. (Scotland) Act 2000 introduced a new ethical framework for public life in Scotland. The Code of Conduct for Councillors came into effect in May 2003. All Councillors elected to local authorities in Scotland must follow this statutory code of conduct when carrying out their public duties. This code is published on the council’s website: https://www.northlanarkshire.gov.uk/your-council/councillors-and- committees/your-councillor/councillors-code-conduct The Code of Conduct for Councillors is approved by the Scottish Parliament and issued by Scottish Ministers. The Standards Commission for Scotland is responsible for the enforcement of the code of conduct. It also has responsibility for issuing guidance to assist local authorities and councillors about the code of conduct and also for hearing complaints about a councillor. The latest code was published in December 2021: https://www.standardscommissionscotland.org.uk/codes-of-conduct/councillors-code- of-conduct Latest version: December 2021. Review timeframe: Review timeframes are set by the Scottish Government as they are responsible for setting the Councillors Code of Conduct. Assessment: In 2020, the Scottish Government held a consultation on a review of the Councillors' Code of Conduct to seek views from relevant stakeholders and members of the public. The council and the Standards Commission for Scotland provided feedback as part of this exercise. Following this exercise, a new code was published on 7th December 2021. The new code and relevant guidance was shared with new and returning Elected Members in May 2022, with training provided on the content. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ Councillors registered interests Under The Ethical Standards in Public Life etc (Scotland) Act 2000 (Register of Interests) Regulations 2003, Councillors and other committee members are required to give notice of any registrable interests. The list of registrable interests for each Elected Member is updated on the Councillor’s Information System and published on the council’s website: https://www.northlanarkshire.gov.uk/your-council/councillors-and-committees/your- councillor/councillors-registered-interests Latest version: Ongoing statutory obligation set out in the Councillor’s Code of Conduct. Review timeframe: Any changes to the process will be advised nationally in line with the guidance issued by the Standards Commission. Assessment: Upon taking up their position as an Elected Member, Councillors are required to give notice to the Monitoring Officer of any registrable interests at that point and for the previous 12 months. Thereafter Elected Members are legally required to inform the council’s Monitoring Officer of any changes to their registrable interests within four weeks of the change taking place. Following the local government elections in May 2022 there was an obligation on every Elected Member to complete and sign their register within 4 weeks of being elected. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ Declarations of interest Standing agenda item number 1 on all agendas for Council and Committee meetings is Declarations of Interest in terms of the Ethical Standards in Public Life Etc. (Scotland) Act 2000. Any declarations made are recorded in the minutes. Latest version: Ongoing statutory obligation set out in the Councillor’s Code of Conduct. Review timeframe: Any changes to the process will be advised nationally in line with the guidance issued by the Standards Commission. Assessment: Agenda / minutes of all committee meetings show declarations of interest are sought, and appropriate declarations are made and recorded. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Open and transparent decision making Dedicated section on the council’s website provides the public with information on each of the local Elected Members, the official council roles, minutes / agendas / reports from committee meetings, standing orders, the scheme of administration, and a link to webcasts of committee meetings. • Website: https://www.northlanarkshire.gov.uk/your-council/councillors-and- committees Latest version: Live pages. Review timeframe: Ongoing. Assessment: Web pages continually updated as and when new information becomes available. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Counter Fraud Policy Latest version: September 2023. Chief Officer (Audit ✓ ✓ ✓ ✓ Page 56 of 116
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23 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 A Counter Fraud Policy is in place which sets out the council’s expectations (that extend to all individuals and organisations with whom it deals) in terms of acting honestly and with integrity and in safeguarding public resources. • Counter Fraud Policy - September 2023: link to file Review timeframe: A review of the Corporate Anti- Fraud Policy and Fraud Response Plan in June 2017, and an Internal Audit review in May 2020, recommended that corporate anti-fraud policies and arrangements in place at that time should be reviewed and any identified actions necessary should be implemented to ensure the council’s arrangements are more fully consistent with recognised good practice. Assessment: As per an Internal Audit Corporate Governance report to the Audit and Scrutiny Panel in May 2023 [ link to file ], a management commitment to review the council’s anti-fraud arrangements (including a review of the policy) was included in the 2022/23 Internal Audit annual plan. This review is now complete the revised Counter Fraud Policy was approved by the Policy and Strategy Committee in September 2023. RAG: and Risk) Whistleblowing Procedure (Public Interests Disclosure) The council’s Whistleblowing Procedure provides a mechanism for employees of the council, and other workers within the council, to report a concern about serious wrongdoing within the council and to do so with security and in confidence. • Whistleblowing Procedure (Public Interests Disclosure) - March 2023: link to file • Whistleblowing Procedure (Public Interests Disclosure) - March 2022: link to file The Whistleblowing Procedure is accessible to staff through MyNL: https://mynl.co.uk/wpfd_file/whistleblowing-policy/ Latest version: March 2023. Review timeframe: Annual. Assessment: Latest review in March 2023 was undertaken on the use of the Whistleblowing Procedure and to identify any amendments required to the Procedure. The updated Procedure was approved at Policy and Strategy Committee in March 2023. The outcome of the latest annual review is scheduled to be reported to committee in cycle 2 of 2024. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ Senior management team and supporting structure of meetings This comprises of four aspects, as follows: Business Management Team (BMT) - The role of the BMT is “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 means the BMT role is that of assurance, not directing or monitoring delivery unless the ongoing assessment of assurance require improvement in this respect. The Chief Executive, Depute Chief Executive, Section 95 Officer, and Monitoring Officer are members of the BMT as well as the Chief Officers of Audit and Risk, Business and Digital, People Resources, and Strategic Communications and Engagement. Corporate Management Team (CMT) - The role of the CMT is “To consider the strategic context and environment within which the council is operating, understand the position of the organisation, and consider the future direction. To consider the implementation of strategic decisions at a council wide level and the impact on the delivery of The Plan for North Lanarkshire and Programme of Work. To agree the one council approach required in order to deliver on the council’s priorities (in partnership where required) in line with the strategic direction and monitor the delivery of the Programme of Work.” This means the CMT role has a focus on improvement in delivering the council’s strategic priorities through the Programme of Work. The Chief Executive, Depute Chief Executive, and all other Chief Officers are members of the CMT. 4 x Service Management Teams (SMTs) - The One Place One Plan - Governance update report in December 2023 reiterated the four service groupings which were originally established in September 2018 and which have continued to operate effectively since - Chief Executive’s services, Enterprise and Communities, Education and Families, Adult Health and Social Care. The focus for these four groups is to manage the operational delivery of service remits. They are also required to consider the implementation of strategic and corporate decisions at a service and/or service grouping level and to consider the context within which the service / service grouping is operating and ensure decisions made in terms of operational delivery are in line with, and support, the successful delivery of the Programme of Work and The Plan for North Lanarkshire. Latest version: December 2022. Review timeframe: As required. Assessment: New arrangements for a single integrated corporate forum for all Chief Officers were implemented in April 2021. A self-evaluation exercise in 2022, to review the effectiveness of the revised arrangements, concluded there was a clear vision and effective leadership with a sound approach that provides clear direction and several aspects of the new arrangements were highlighted as working well. The combination of responding to and recovering from the pandemic while resuming business as usual activities at pace had however intensified the volume of business that required to be discussed by the senior management team of the council which - along with the impact of workforce pressures, industrial action, inflationary pressures, the cost of living, external financial pressures, and large scale public sector reform - significantly added to the agenda and to the risks facing the council. For this reason, new arrangements comprising four aspects (BMT, CMT, SMTs, OMT) were developed and implemented from January 2023. RAG: All Chief Officers ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 57 of 116
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24 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 Operational Management Team - formally established in April 2021, this forum comprises all senior managers and head teachers across the council. It operates under the principles of engage, develop, support, and inform to connect managers and enable them to strengthen and support their teams to deliver on the Programme of Work in line with The Plan for North Lanarkshire. The OMT aims to provide a collaborative forum for discussions on the practical aspects of delivering the Programme of Work. This group is not a decision making body; it is an information sharing forum. Its focus is on providing opportunities to share and discuss significant strategic and corporate developments with the wider operational management team environment across the council. The Plan for North Lanarkshire The Plan for North Lanarkshire is a long-term strategy with a long-term vision which was approved in February 2019. This sets the direction for the council (and for work with partners). • Update on level 1 health check indicators that provide the latest North Lanarkshire context in terms of the economic, social, health, environmental wellbeing of the area, March 2024: link to file • Update on level 1 health check indicators that provide the latest North Lanarkshire context in terms of the economic, social, health, environmental wellbeing of the area, March 2023: link to file • Update on level 1 health check indicators and progress against Programme of Work, March 2022: link to file • Place based regeneration investment programme of work - The Place The Vision, September 2021: link to file • Update on level 1 health check indicators and progress against Programme of Work, March 2021: link to file • Place based regeneration investment programme of work - March 2020: link to file • The Plan for North Lanarkshire, February 2019: link to file • The Plan for North Lanarkshire is published on the council’s website: https://www.northlanarkshire.gov.uk/your-council/council-strategies-and- plans/council-strategies/plan-north-lanarkshire Latest version: The Plan for North Lanarkshire is a long-term strategy with a long-term vision which was approved in February 2019. Review timeframe: Annual. Assessment: The Plan for North Lanarkshire is supported by a suite of high level Health Check Performance Indicators that collectively provide the context for North Lanarkshire as a place. These are reviewed, updated, and reported to the Policy and Strategy Committee annually to enable an assessment of progress and to inform the council’s strategic planning process through the Programme of Work. The Programme of Work is the delivery mechanism for The Plan for North Lanarkshire; this is reviewed and updated annually. RAG: Chief Executive ✓ ✓ ✓ ✓ ✓ ✓ Programme of Work The Programme of Work is the delivery vehicle for The Plan for North Lanarkshire. Its purpose is to translate the vision into priorities for action. • Programme of Work to 2028 Delivery Plan - March 2024: link to file • Programme of Work to 2028 approved in March 2023: link to file • Programme of Work for 2022/23 approved in March 2022: link to file • Programme of Work for 2021/22 approved in March 2021: link to file • Programme of Work for 2020 and beyond approved in March 2020: link to file • Inaugural Programme of Work approved in March 2019: link to file Latest version: Programme of Work to 2028 approved in March 2023; Delivery Plan in March 2024. Review timeframe: Annual review and update in cycle 1 each year. Assessment: An annual review process has supported the development of the Programme of Work since its implementation to ensure that the priorities for delivery remain framed within the most up to date demographic, social, and economic context that exists for the place that is North Lanarkshire, as well as the latest national policy developments and priorities. The annual review process ensures that the Programme of Work continues to remain current, relevant, and deliverable. The Programme of Work to 2028 was approved at the Policy and Strategy Committee in March 2023; this was followed by the supporting delivery plan reported to the Policy and Strategy Committee in March 2024. This Programme of Work to 2028 is supported by a governance framework which sets out, inter alia, roles and responsibilities, the alignment across other corporate processes, and the corresponding monitoring, reporting, controls, and quality assurance arrangements. The next annual review and update of the Programme of Work is scheduled to be reported to Policy and Strategy Committee in cycle 1 of 2025. RAG: Chief Executive ✓ ✓ ✓ ✓ ✓ ✓ ✓ Strategic Policy Framework Initially approved in September 2018, the Strategic Policy Framework sits alongside the Programme of Work in the council’s strategic planning process to ensure that strategy and policy remain connected to delivery in support of the shared ambition and priorities set out in The Plan for North Lanarkshire. Latest version: Most recent update following annual review and refresh process was approved at committee in March 2024. Review timeframe: Annual. Assessment: The Strategic Policy Framework is Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 58 of 116
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25 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 The Strategic Policy Framework sets out the high-level strategies, policies, and plans which are subject to a formal review process to ensure they remain fit for purpose and continue to align to the strategy of the council as well as relevant local and national strategy, policy, and legislative contexts. The Framework also aims to ensure that strategies, policies, and plans are formulated, developed, implemented, monitored, and reviewed in a consistent and transparent manner. • Refreshed Strategic Policy Framework approved in March 2024: link to file • Refreshed Strategic Policy Framework approved in March 2023: link to file • Refreshed Strategic Policy Framework approved in March 2022: link to file • Inaugural Strategic Policy Framework approved in September 2018: link to file • Update provided to the Audit and Scrutiny Panel in November 2023: link to file • Update provided to the Audit and Scrutiny Panel in November 2022: link to file • Update provided to the Audit and Scrutiny Panel in September 2021: link to file • Update provided to the Audit and Scrutiny Panel in September 2020: link to file key in supporting the council’s Programme of Work and, as such, is subject to an annual review and refresh process to ensure the council’s strategies, policies, and plans are kept up to date, aligned to The Plan for North Lanarkshire, and reflect relevant policy and legislation changes. The next annual update of the Strategic Policy Framework is scheduled to be reported to committee in cycle 1 of 2025. RAG: Strategic Performance Framework The Strategic Performance Framework sets out performance measurement at three levels in order to collectively provide an overview of performance (over time and compared to targets) to help understand the impact of council activities on improving services and outcomes for the people and communities of North Lanarkshire. These measures also 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. • Approved in February 2019: link to file • Detail reported in September 2019: link to file • Update provided to the Audit and Scrutiny Panel in November 2023: link to file • Update provided to the Audit and Scrutiny Panel in November 2022: link to file • Update provided to the Audit and Scrutiny Panel in September 2021: link to file Update provided to the Audit and Scrutiny Panel in September 2020: link to file Latest version: November 2023. Review timeframe: Annual. Assessment: The Strategic Performance Framework is key in supporting the council’s Programme of Work and, as such, is subject to a regular review and refresh process to ensure it remains aligned to The Plan for North Lanarkshire. An update on all six of the strategic frameworks is provided to the Audit and Scrutiny Panel annually. The Strategic Performance Framework is supported by a Performance Reporting Schedule which is updated and reported to the Audit and Scrutiny Panel annually. The Strategic Performance Framework is currently undergoing a review and update in line with the new Programme of Work to 2028 and its Delivery Plan priorities, with a view to supporting 2024/25 Programme of Work progress and performance reporting. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ Strategic Performance Framework - performance reporting schedule Formal reporting arrangements are in place through an annual Performance Reporting Schedule that comprises Chief Officer reviews at service committees and service specific reporting to meet both business and statutory obligations. This is underpinned by five non-negotiable standards that inform a regular performance assurance review process. A summary of the council’s performance reports (in line with the Performance Reporting Schedule) is provided quarterly to the Audit and Scrutiny Panel through a performance assurance review which aims to support the 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. Through this process the Panel are able to identify any significant issues arising which require 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). • Performance Reporting Schedule for 2024 to 2025 reported to the Audit and Scrutiny Panel in February 2024: link to file • Reporting Schedule - February 2023: link to file • Latest quarterly performance assurance review, May 2024: link to file The Assessment and Prioritisation Process approved by the Panel in August 2018 and subsequently updated in September 2022 provides a mechanism by which items, functions, or activities requiring scrutiny can be identified and submitted by Panel Members. 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 Latest version: February 2024. Review timeframe: Annual. Assessment: The annual performance reporting schedule includes a list of Chief Officer reviews at service committees and service specific reporting to meet both business and statutory obligations scheduled for each committee cycle for 2024 to 2025. This schedule notes that it is an indicative schedule prepared as at January 2024 and that matters arising throughout the year may impact on expected reporting dates. This includes an ALEO performance assurance report which is currently submitted to the Audit and Scrutiny Panel on a six monthly basis. A performance assurance review process is in place which assesses the reports on the schedule against the five non-negotiable standards; this is reported to the Audit and Scrutiny Panel on a quarterly basis. RAG: Chief Officer (Business and Digital) / all Chief Officers ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 59 of 116
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26 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 the Scrutiny Work Programme clear and transparent. • Latest scrutiny work programme and Assessment and Prioritisation Process - February 2024: link to file Strategic Governance Framework The Strategic Governance Framework brings the principles of good governance (in line with the Delivering Good Governance in Local Government: Framework (2016)) together with legislative requirements and management processes by which the council is directed and controlled and through which it is accountable to, engages with, and leads the local community. This aims to ensure the council is able to effectively pursue the long-term ambition set out in The Plan for North Lanarkshire, while ensuring this is underpinned with control and the management of risk, and: • Resources are directed in accordance with agreed policies and according to priorities and in line with corporate project management procedures. • There is sound and inclusive decision making. • There is clear accountability for the use of those resources in achieving defined outcomes for service users and local communities. • Refreshed Strategic Governance Framework approved in June 2023: link to file • Refreshed Strategic Governance Framework approved in September 2022: link to file • Refreshed Strategic Governance Framework approved in September 2021: link to file • Initial Strategic Governance Framework approved in February 2020: link to file • Update provided to the Audit and Scrutiny Panel in November 2023: link to file • Update provided to the Audit and Scrutiny Panel in November 2022: link to file • Update provided to the Audit and Scrutiny Panel in September 2021: link to file Update provided to the Audit and Scrutiny Panel in September 2020: link to file Latest version: Most recent update following annual review and refresh process was approved at committee in June 2023. Review timeframe: Review and update undertaken annually in order to provide evidence to inform the production of the Annual Governance Statement. Assessment: The Strategic Governance Framework is key in supporting the council’s Programme of Work and, as such, is subject to an annual review and refresh process to ensure ongoing alignment to The Plan for North Lanarkshire, and to inform the production of the Annual Governance Statement. The next annual review and update of the Strategic Governance Framework is scheduled to be reported to the Audit and Scrutiny Panel in June 2024. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Annual Governance Statement The council is required to produce an Annual Governance Statement each year in line with the Delivering Good Governance in Local Government: Framework (2016). This requires to be included in the annual accounts each year in line with The Local Authority Accounts (Scotland) Regulations 2014. • Annual Governance Statement reported to the Audit and Scrutiny Panel in June 2023: link to file • Annual Governance Statement reported to the Audit and Scrutiny Panel in September 2022: link to file (with there being no council committees held in cycle 2 of 2022, it was permitted to submit the Statement to the next available committee meeting). • Annual Governance Statement reported to the Audit and Scrutiny Panel in June 2021: link to file • Annual Governance Statement reported to the Audit and Scrutiny Panel in September 2020: link to file Latest version: Annual Governance Statement for 2022/23 reported to the Audit and Scrutiny Panel in June 2023. Review timeframe: Annual. Assessment: Statement for 2023/24 is scheduled to be presented to BMT/CMT in May/June 2024 to allow for inclusion in unaudited Annual Accounts for 2023/24 and submission to external auditors by end June 2024. The Annual Governance Statement for 2023/24 is scheduled to be reported to the Audit and Scrutiny Panel in June 2024. RAG: Chief Executive / Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Project Management Framework The council’s Project Management Framework aims to ensure a systematic approach across the organisation by providing a corporate framework and guidance that enables each stage of delivery towards achieving the overall objectives of a project to be planned, guided, implemented, and governed. • Project Management Framework (2022) and templates on InsideNL: Project Management Framework 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, quality assurance arrangements have been initiated that will form part of the work programme for the Scrutiny function of the Audit and Scrutiny Panel to ensure an independent strategic oversight and assurance process. The Panel’s role in this respect is to be assured that suitable review procedures have been adopted so that the council can gain the relevant assurances about the value of independent reviews that are undertaken during the project life cycle. • Quality assurance arrangements for the Project Management Framework and the Programme of Work and the role of the Audit and Scrutiny Panel - February 2024: link to file • Update provided to the Audit and Scrutiny Panel in November 2023: link to file • Update provided to the Audit and Scrutiny Panel in February 2023: link to file • Update provided to the Audit and Scrutiny Panel in November 2022: link to file Latest version: New Framework launched council wide December 2022. Review timeframe: Annual. Assessment: The Project Management Framework is key in supporting the council’s Programme of Work and, as such, is subject to a regular review and refresh process to ensure ongoing alignment to The Plan for North Lanarkshire. The 2022 review aimed to ensure that the council’s arrangements remained fit for purpose and able to effectively support delivery of The Plan for North Lanarkshire. This followed recommendations arising from Internal Audit reports on managing strategic change and the governance of capital projects. The review was also considered necessary in light of the changes in the council’s operating environment since the implementation of the Model in 2018. These changes had led to a rapid evolution of programmes and projects across the council, as well as increasing complexities in the delivery of many of these, and a growing need for good governance and good project management to set up and deliver a wider range of projects at pace and scale, and ensure these are well-directed, delivered to time, cost, and quality targets, and Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 60 of 116
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27 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 • Updated provided to the Audit and Scrutiny Panel in September 2021: link to file • Update provided to the Audit and Scrutiny Panel in September 2020: link to file provide the expected benefits and improved local outcomes. Quality assurance arrangements have been developed to support the Programme of Work and use of the Project Management Framework. This includes a key role for the Audit and Scrutiny Panel for which the initial outline was reported to the Panel in February 2024 [ link to file ]. RAG: Strategic Self-Evaluation Framework The Strategic Self-Evaluation Framework and rolling Review Programme provides the council with a single strategy for improvement in this respect. Self-evaluation exercises undertaken in line with the Framework are specifically designed to be strategic but lite touch, and consistent but flexible, to ensure that these are tailored to the service, function, project, or group being evaluated and designed within the context of that operating environment. More importantly, items on the rolling Review Programme aim to ensure a mechanism is in place to assess the council’s functions and activities and identify areas for improvement within the context of fulfilling the vision set out in The Plan for North Lanarkshire. • Refreshed Strategic Self-Evaluation Framework was presented to the Audit and Scrutiny Panel in February 2024: link to file • Refreshed Strategic Self-Evaluation Framework was presented to the Audit and Scrutiny Panel in November 2022; this includes the corporate process for options appraisal: link to file • Refreshed Strategic Self-Evaluation Framework was presented to the Audit and Scrutiny Panel in September 2021: link to file • Approved in February 2019: link to file • Update provided to the Audit and Scrutiny Panel in November 2023: link to file • Update provided to the Audit and Scrutiny Panel in November 2022: link to file • Update provided to the Audit and Scrutiny Panel in September 2021: link to file • Update provided to the Audit and Scrutiny Panel in September 2020: link to file Latest version: Refreshed Strategic Self-Evaluation Framework and rolling review programme for 2024 to 2025 was presented to the Audit and Scrutiny Panel in February 2024. Review timeframe: Annual. Assessment: The Strategic Self-Evaluation Framework is key in supporting the council’s Programme of Work and, as such, is subject to an annual review and refresh process to ensure improvement actions remain aligned to The Plan for North Lanarkshire. An update in respect of the Strategic Self-Evaluation Framework rolling review programme for 2025 to 2026 is scheduled to be reported to the Audit and Scrutiny Panel in cycle 1 of 2025. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Local Government Benchmarking Framework (LGBF) The LGBF brings together a wide range of information about how all Scottish councils perform in delivering services to local communities. It is a high-level benchmarking tool designed to help senior management teams and Elected Members ask questions about key council services. The LGBF reflects a commitment by SOLACE (Scotland) and COSLA to develop better measurement and comparable data in order to help councils improve services, target resources to areas of greatest impact and enhance public accountability. As such, since 2010-11, all Scottish local authorities have worked together to report (through the LGBF) standard information on the services they provide. This information takes the form of indicators that measure aspects of performance (for example, how much a service costs per user or how satisfied local people are with a service) across all areas of local government activity. The LGBF provides high-level information designed to encourage councils to examine why variations in cost and performance are occurring between similar councils. The framework itself does not supply the answers. That happens as councils engage with each other to drill down and explore why these variations are happening. The national LGBF web portal is available from the council’s website: https://www.northlanarkshire.gov.uk/your-council/performance-of-the- council/comparing-our-performance Latest version: National web portal last updated in April 2024. Review timeframe: Annual publication of data by the Improvement Service. From 2023 onwards, the LGBF web portal is being updated four time a year when new data becomes available for indicators. Assessment: The national web portal and Dashboard are available from the council’s website; this provides access to all the benchmarking indicators within the LGBF and allows for comparisons with other local authorities, family group averages, and national averages. From January 2023, the council’s performance in the LGBF indicators has been incorporated into each Chief Officers regular Strategic Performance Framework reports to service committees. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ Financial Strategy As the overarching framework that establishes the financial strategies and policies which ensure effective financial governance, planning, and management, this sets out the responsibility for safeguarding public funds within North Lanarkshire Council and the role of the Section 95 Officer. The strategies and policies covered by the Financial Strategy are the Capital Strategy, Treasury Management Strategy, Revenue Budget Strategy, Medium-Term Financial Plan, and the Financial Regulations and Scheme of Financial Delegation. • Financial Strategy - June 2019: link to file Latest version: April 2024. Review timeframe: The strategies and policies covered by the Financial Strategy are set out therein along with timescales for further review. All have an annual review frequency. Assessment: All strategies and policies covered by the Financial Strategy are shown separately in this table. The Financial Strategy itself was reviewed in August 2022 and, as reported to the CMT, it was concluded that the Strategy remains relevant in its current form and therefore no further update requires to be reported to committee at this time. Following a further review in April 2024, this remains the case. Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 61 of 116
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28 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 RAG: Treasury Management Strategy Each year, in line with the CIPFA Code of Practice on Treasury Management, the council produces a Treasury Management Strategy. The Treasury Strategy Statement sets out the policies, practices, and activities undertaken by the council in compliance with the Code. It covers the council’s debt and investment projections, expected movement in interest rates, council borrowing and investment strategies, policy on repayment of loans funds advances, and treasury management and prudential indicators. • Treasury Management Strategy - February 2024: link to file • Treasury Management Strategy - March 2023: link to file • Treasury Management Strategy - March 2022: link to file • Treasury Management Strategy - March 2021: link to file Treasury Management monitoring reports are submitted to committee quarterly. This fulfils the requirements in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. It informs on Treasury Management activity for the latest quarter and compliance with the mandatory treasury and prudential indicators. • Quarter ended December 2023: link to file The Treasury Management Annual Activity report also fulfils the key requirements in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities in that it outlines the treasury management activity undertaken during the latest financial year and the resulting impact on the council’s borrowing and investment strategy. It also reports on the council’s performance in complying with the mandatory prudential indicators, and provides a detailed summary of performance, making reference to those targets and prudential indicators set at the start of the year within the approved strategy. • Annual activity report for 2022/23 - September 2023: link to file • Annual activity report for 2021/22 - September 2022: link to file • Annual activity report for 2020/21 - September 2021 link to file Latest version: February 2024. Review timeframe: Annual. Assessment: The latest version of the Treasury Management Strategy approved in February 2024 covers the period for 2024/25 and includes the Treasury Management Indicators and Prudential Indicators 2024/25 to 2028/29. This report fulfils the key requirements of the Local Government Act 2003 in that it outlines the Treasury Management Strategy for 2024/25 in accordance with the CIPFA Code of Practice on Treasury Management, and reports on the treasury and prudential indicators as required by the above code and the CIPFA Prudential Code for Capital Finance in Local Authorities. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Reserves Policy To support the commitments made by both the Financial Strategy and Revenue Resources Budget Strategy, a Reserves Policy was approved in January 2020. The policy is subject to annual review to ensure available balances are managed and utilised in accordance with effective governance principles and continue to support financial plans which are affordable and sustainable. Any significant amendments to the policy are reported to committee. • Reserves Policy - January 2020: link to file Latest version: January 2020. Review timeframe: Annual. Assessment: The Reserves Policy was approved in January 2020. The annual review process since has identified no further changes and concluded that the original Reserves Policy remains valid and therefore no further update is required at the time. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Revenue Resources Budget Strategy To facilitate a more strategic approach to establishing budgets and associated savings options, a Revenue Resources Budget Strategy was approved in June 2019. This set out the rationale for the development of a revised approach to budgeting and the identification of future savings. It sets out guiding principles and an outline framework to develop the Strategy to ensure alignment with The Plan for North Lanarkshire. • June 2019: link to file The Revenue Resources Budget Strategy has been reviewed and updated annually since: • September 2022: link to file • June 2021: link to file • June 2020: link to file Regular update reports on the implementation of savings are provided: • Review of 2023/24 to 2025/26 budget savings - February 2024: link to file • Review of 2023/24 to 2025/26 budget savings - September 2023: link to file • Review of 2022/23 budget savings - March 2023: link to file • Review of 2022/23 budget savings - September 2022: link to file A Discretionary Fees and Charges Policy was developed and approved in September 2023. This aims to annually uplift discretionary fees and charges to support the implementation of one of the key principles of the approved Revenue Resources Budget Strategy which is that “Future charging models for services provided will be informed by benchmarking and the principles of full cost recovery. Once costs are established on this basis, future increases will be index-linked. Additionally, consideration will be given to appropriate revenue generating opportunities”. The policy also contains guidance which will ensure compliance with The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. Latest version: September 2022. Review timeframe: Annual. Assessment: The Revenue Resources Budget Strategy was approved in June 2019, with an update provided annually thereafter given the significantly increased financial risks faced by the council. The latest update report (September 2022) set out some of the high level challenges faced by the council (in particular continued recovery from the pandemic and the current economic and financial environment) and how these will need to be addressed in line with the Revenue Resources Budget Strategy. The report recognised that unless there is any significant change which impacts on the validity of the key principles, no further updates on the implementation of the Strategy will be required. As part of the annual update to the five year Medium-Term Financial Plan scheduled to be reported to committee in cycle 2 of 2024, an update is provided on update on the implementation of the key principles and framework of the Revenue Resources Budget Strategy approved by Policy and Strategy Committee in June 2019, which have underpinned decision making. While the existing strategy is based on sound principles a review to consider further development of the key principles has been undertaken to ensure the council continues to develop strategic, robust, and Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 62 of 116
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29 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 • Discretionary Fees and Charges Policy - September 2023: link to file sustainable solutions, to manage the longer term financial challenges. An update is scheduled to be provided to committee in cycle 3 of 2024 and cycle 1 of 2025 on the implementation of savings. RAG: 4-weekly revenue monitoring reports The council’s revenue budget is subject to close monitoring throughout the financial year, with service’s reporting their own position to their relevant Service Committees and Management Teams. A council summary report is prepared on a 4-weekly basis and consolidates the budget monitoring position of all General Fund Services, along with the Housing Revenue Account, and Adult Health and Social Care. This report highlights and explains major variances as per the council’s approved Financial Regulations and is reported to both the BMT and committee. Revenue monitoring reports are standing items on the BMT agenda. • Latest - Revenue monitoring report council summary 1 April 2023 to 3 March 2024 (Period 12), May 2024: link to file A consolidated council annual provisional outturn Revenue monitoring report is provided to BMT each year. This updates BMT on the overall position for the General Fund Account, Housing Revenue Account, and Adult Health and Social Care for the financial year just ended. The council summary report is supported by individual service reports which are reported to Service Committees / Service Management Teams. These reports include analysis of significant budget variations, impact of COVID, budget savings, and earmarked reserves. An Annual Accounts final outturn is reported to committee each year after the completion of the draft accounts. • Annual Outturn - September 2023: link to file Latest version: Period end report in May 2024 and annual report for 2022/23 in September 2023. Review timeframe: As at each period end and as at the year end. Assessment: Revenue budget monitoring reports are submitted to committees each cycle throughout the year and at the year end. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Annual Revenue Budget and Council Tax The statutory requirements in relation to budget setting are contained within Section 93 of the Local Government Finance Act 1992. An annual report provides financial information to enable the council to set its Revenue Budget and Council Tax for the year. • February 2024: link to file Latest version: February 2024. Review timeframe: Annual. Assessment: Report approved in February 2024 set the Revenue Budget and Council Tax for 2024/25 and outlined the updated forecast budget position for 2024/25 to 2026/27. The principle of setting a three year (rolling) budget is key in supporting the council’s Programme of Work and, as such, is scheduled for a report to committee in cycle 1 in each year. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Medium-Term Financial Plan Longer term planning is integral to the council’s Financial Strategy and the council’s strategic approach to budgeting. Effective decision making relies on strong financial planning and the Medium-Term Financial Plan assists in ensuring resources are aligned to the key priorities outlined in The Plan for North Lanarkshire and ensures the Programme of Work is robust, affordable, and sustainable. The Medium-Term Financial Plan reflects the risks which may impact on the council’s ability to continue to provide high quality services focussing on the strategic priorities. The Medium-Term Financial Plan was approved at committee in September 2019, this is a 5 year rolling plan: link to file The plan has subsequently been reviewed and updated annually: • June 2023: link to file • September 2022: link to file • September 2021: link to file • October 2020: link to file Taking the previously reported position as the new baseline, the latest plan updates financial planning assumptions in relation to future revenue grant and other funding sources, along with increased cost pressures arising from employee costs, inflation, and policy decisions. A range of risk-based scenarios have been considered, resulting in envisaged, pessimistic, and optimistic positions. Latest version: June 2023. Review timeframe: Annual. Assessment: The Medium-Term Financial Plan approved in June 2023 covers the period 2024/25 to 2028/29. This provides an update on the five year financial forecast and outlines the challenges facing the council in maintaining medium-term financial stability, while achieving the strategic priorities of the council and reflecting the impact of the pandemic. The Medium-Term Financial Plan is key in supporting the council’s Programme of Work and, as such, an annual review is undertaken of the planning assumptions in the council’s Medium-Term (five-year) Financial Plan and an update of the scenarios relating to the anticipated budget position. The annual update to the five year Medium Term Financial Plan (for 2025/26 to 2029/30) is scheduled to be reported to Policy and Strategy Committee in cycle 2 of 2024. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 63 of 116
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30 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 Capital Strategy Following the publication of the revised Prudential Code for Capital Finance in Local Authorities 2021, there is a requirement for councils to produce a Capital Strategy. The latest Capital Strategy for 2024/25 to 2028/29 was approved in March 2024: link to file Latest version: March 2024. Review timeframe: Annual. Assessment: The Capital Strategy is key in supporting the council’s Programme of Work and creating an asset base that supports delivery of The Plan for North Lanarkshire and which delivers on the shared ambitions and the Programme of Work. To ensure alignment with the new Strategic Capital Investment Programme from April 2024 the revised Capital Strategy for 2024/25 to 2028/29 was presented to the Policy and Strategy Committee in March 2024 for approval at the same time. The latest update includes a review of the key principles and reflect the requirements of the new Prudential Code for Local Authorities. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Strategic Capital Investment Programme The principles of the council’s strategic capital investment programme are underpinned by the Capital Strategy. The Capital Strategy was updated in March 2024. The main principles outlined and adopted within the Strategy remained largely the same The principles of the Capital Strategy are adopted in preparing the revised annual Strategic Capital Investment Programme. The latest update to the Strategic Capital Investment Programme for 2024/25 to 2028/28 was approved at committee in March 2024: link to file Established in 2019/20, the Community Investment Fund is a major contributary factor for investment across North Lanarkshire’s communities; an annual report provides a regular update in this respect: • September 2023: link to file • September 2022: link to file Latest version: March 2024. Review timeframe: Annual. Assessment: Strategic Capital Investment Programme approved in March 2024 covers the period from 2024/25 to 2028/29. The Strategic Capital Investment Programme is key in supporting the council’s Programme of Work and, as such, monitoring reports are scheduled to be provided to committee each cycle; this includes elements funded by the Community Investment Fund managed by the Strategic Capital Delivery Group. In addition, an annual Community Investment Fund progress report is scheduled to be reported to committee in cycle 3 of 2024. This will outline updated financial projections linked to emerging economic trends. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Strategic Capital Delivery Group (SCDG) terms of reference and governance framework The SCDG is an officer working group convened of senior officers with responsibility for the development and delivery of the council’s long-term capital programme. The Terms of Reference and Governance Framework allow the SCDG to make amendments to the approved capital programme subject to limits, adjustments to the programme to reflect future capital grant allocations, the approval of virement of resources, and additional projects plus the process for reporting decisions and recommendations to committee. • March 2023: link to file • September 2021: link to file Latest version: March 2023. Review timeframe: Terms of Reference reviewed in line with the requirements of the Strategic Capital Investment Programme. Assessment: An update to the Terms of Reference was approved at the Policy and Strategy Committee in March 2023 to reflect the revised management team and organisational structure (approved at Policy and Strategy Committee in December 2022) and ensure it properly reflects the council’s current organisational structure. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Strategic Capital Delivery Group (SCDG) Meetings are held each quarter as a minimum. Minutes and meeting papers available. Latest version: Recurring group. Review timeframe: Strategic Capital Delivery Group in operation; chaired by Depute Chief Executive. Assessment: Effectiveness of the group reviewed in line with the council’s Strategic Capital Investment Programme. RAG: Depute Chief Executive / Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Capital monitoring The capital programme is monitored and managed by the council’s Strategic Capital Delivery Group. Consolidated council monitoring reports are prepared regularly and provide an update on the resources and expenditure for the council’s Capital Programmes. The close monitoring facilitates the group’s proper management of the council’s ambitious capital programme, including the realignment of resources to ensure its effective delivery and ensuring resources are directed to where they are most required and informs updates to Elected Members through committee where appropriate. Capital programme monitoring reports are standing items on the BMT agenda every 4 Latest version: Period end report in February 2024 and annual report for 2023/24 in May 2024. Review timeframe: As at each period end and as at the year end. Assessment: Capital monitoring reports are submitted to committee each cycle throughout the year and at the year end. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 64 of 116
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31 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 weeks. These reports include projected outturns, budget variations and commitments. Reports are also submitted to committee each cycle. These provide an update on the latest year’s resources and expenditure for the council's Strategic Capital Investment Programme. The report also shows the latest financial year’s provisional outturn position and the resultant variances as at the period end. • Latest - Capital Programme 2023/24 monitoring report 1 April 2023 to 1 March 2024 (Period 12), May 2024: link to file Annual accounts The preparation of the Accounts is a key statutory responsibility for Finance and the council. The Local Authority Accounts (Scotland) Regulations 2014 require the council to prepare Annual Accounts, section 12 of the Local Government in Scotland Act 2003 requires these to be prepared in accordance with proper accounting practices, primarily the Code of Practice on Local Authority Accounting in the United Kingdom, supported by International Financial Reporting Standards (IFRS), and statutory guidance issued. In the midst of the pandemic, Local Government Finance Circular 10/2020 was issued, providing flexibility within the Regulations in line with The Coronavirus (Scotland) Act 2020, this included flexibility in the timescales for publication of the Unaudited Accounts and the subsequent approval of the Audited Accounts for 2019/20. The Local Authority (Capital Finance and Accounting) (Scotland) (Coronavirus) Amendment Regulations 2021 subsequently extended this for the 2021/22 publication. • Annual accounts (audited) - October 2023 link to file • Annual Accounts (audited) - October 2022 link to file • Annual Accounts (audited) - December 2021 link to file • Annual Accounts are published on the council’s website: https://www.northlanarkshire.gov.uk/your-council/facts-and-figures/annual- accounts/current-and-previous-years-annual-accounts Latest version: October 2023. Review timeframe: Annual. Assessment: The preparation of the Annual Accounts is a key statutory responsibility for the council. The audited annual Accounts for 2022/23 were approved by the Audit and Scrutiny Panel in October 2023 for signing. The unaudited Annual Accounts for 2022/23 were presented to the external auditors by end June 2023, in line with statutory requirements. This followed due consideration of the unaudited Annual Accounts for 2022/23 by the Audit and Scrutiny Panel in June 2023. RAG: Chief Officer (Finance) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Risk Management Strategy The Risk Management Strategy outlines that effective risk management arrangements form an important element of good corporate governance and are designed to ensure that the council operates systematic and logical processes for managing business risks within a comprehensive framework, ensuring that identified risks are managed consistently, effectively, efficiently, and coherently across the organisation. • Risk Management Strategy - March 2023: link to file Latest version: March 2023. Review timeframe: 3 year strategy. Assessment: Risk Management Strategy approved in March 2023 covers the period 2023 to 2026. An item within the Strategic Policy Framework, the Risk Management Strategy is next scheduled for review in 2025/26. In addition, reports are scheduled to be submitted to the Audit and Scrutiny Panel each cycle to regularly assess the effectiveness of the risk management arrangements which the council has in place to assist the identification and management of risks, strengthen organisational resilience, improve governance and stakeholder confidence and trust, increase the likelihood of the council achieving its planned outcomes, priorities, ambitions, and report the results of that assessment to key stakeholders. RAG: Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Workforce for the Future Strategy Workforce for the Future Strategy approved in March 2020 covers the period 2020-23. • March 2020: link to file This Strategy was subsequently refreshed in June 2021 and realigned in light of the pandemic, which had a major impact on levels of employment and the needs of employers across North Lanarkshire. It also addressed the issue that the pandemic is expected to have adversely affected the wider employment, training, and progression prospects of young people and other residents who been made redundant or may be at risk when the furlough scheme ended. • June 2021: link to file A further update was submitted to committee in March 2022 to reflect recent work and ensure this continues to identify and directly address critical labour market and employment challenges and opportunities across North Lanarkshire. • March 2022: link to file Latest version: March 2022. Review timeframe: Annual. Assessment: The Workforce for the Future Strategy approved in March 2020 covers the period 2020-23. This strategy was subsequently refreshed in June 2021 and in March 2022. Moving forward, the objectives and ongoing activities supporting this strategy will be subsumed within the Brighter Futures programme, aligned to the council’s overall Programme of Work. RAG: Chief Officer (People Resources) ✓ ✓ ✓ Workforce plans Best Value guidance requires that councils demonstrate effective use of resources. In terms of staff this means: • A workforce strategy is in place that sets out expectations on how the local authority’s staff will deliver its vision, priorities, and values. Latest version: December 2023. Review timeframe: Annual. Assessment: Following work by each Chief Officer which included identifying a range of actions to address workforce gaps and setting out detailed Chief Officer (People Resources) ✓ Page 65 of 116
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32 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 • The strategy is translated into workforce plans, covering employee numbers, skills, knowledge, competencies, and organisational structures that demonstrate how staff will be deployed to deliver the services planned for the future. • Plans are regularly reviewed at appropriate intervals according to a clear review cycle. • One Workforce report - December 2023: link to file service level workforce plans with an agreed bi- annual refresh cycle, a strategic workforce plan was reported to the Policy and Strategy Committee in December 2023. This plan is intended to enable the core aims and objectives of the Programme of Work and its wider ambitions linked to the Plan for North Lanarkshire. Specifically, the One Workforce Plan has a focus on ensuring that the council has the required workforce capacity and capability to deliver on its strategic aims and objectives both now and in the future. With respect to governance going forward, a detailed review of workforce plans will for each service will be encompassed within the One Service Programme of Work to ensure continued focus and a clear link to the council’s overall Programme of Work and the delivery of its future operating model. RAG: General Contract Standing Orders (GCSO) The Local Government (Scotland) Act 1973 section 81 requires local authorities to “…make standing orders with respect to the making by them or on their behalf of contracts for the supply of goods or materials or for the execution of works”. The General Contract Standing Orders (“GCSOs”) sets out the council’s specific procurement procedures and responsibilities at all spend levels, covering both regulated and non-regulated approaches. The GCSOs also place requirements on service areas to effectively plan and manage the resulting contracts. • GSCO version 14 was the last substantial update that was approved by committee in June 2018: link to file • Minor updates have been applied since that did not require further approval. The latest GCSO version 16, in place since June 2022, is available on InsideNL: Procurement • GSCO version 16 is also publicly available on the council’s website: https://www.northlanarkshire.gov.uk/business/procurement/key-procurement- documents An Internal Audit review on Achieving Best Value in Procurement was undertaken in 2023. Following this, a report was presented to the Audit and Scrutiny Panel in October 2023 [ link to file ] which included a number of improvement actions. The main action was to update the level of information and details within the Contract Awards Below Committee Approval Threshold, which is a requirement of GCSO 21.10. This action has since been completed with the new reporting format implemented and in place since November 2023 [ see live example ]. Latest version: General Contract Standing Orders (GCSO) were approved at the former Policy and Resources Committee in June 2018. These were subsequently updated and version 16 - effective from 1 June 2022 - is now available. Review timeframe: The GCSO require to be kept under regular review to ensure they work effectively and secure continuous improvement and Best Value. Assessment: Further reviews will be undertaken in line with any legislative changes or national guidance issued. RAG: Chief Officer (Assets and Procurement) ✓ ✓ ✓ Procurement Strategy In Scotland, public bodies with an annual procurement spend of £5 million or more are required by legislation to prepare and publish a procurement strategy or revise an existing strategy under Procurement Reform (Scotland) Act 2014. The Procurement Strategy requires to be approved and in place for the start of each financial year, and as such cycle 1 is the optimum reporting point to Committee. • Procurement Strategy 2024/25 - February 2024: link to file • Procurement Strategy 2023/24 - September 2022: link to file • Procurement Strategy 2022/23 - November 2021: link to file The current Procurement Strategy 2024/25 is publicly available on the council’s website: https://www.northlanarkshire.gov.uk/business/procurement/key-procurement- documents Latest version: February 2024. Review timeframe: Annual. Assessment: The council has prepared and published Procurement Strategies since 2017 in conformance with the requirements of the Act; the latest Procurement Strategy approved at committee in February 2024 covers the period from April 2024 to March 2025. An item within the Strategic Policy Framework, the Procurement Strategy is scheduled to be updated and reported to committee in cycle 1 each year. RAG: Chief Officer (Assets and Procurement) ✓ ✓ ✓ Annual procurement report The Procurement Reform (Scotland) Act 2014 requires the council to prepare an annual procurement report on its Regulated Procurement activities as soon as reasonably practicable after the end of each financial year. Production of the APR follow the end of each financial year, where spend data is collated and analysed. Cycle 3 is the optimum reporting point to Committee. • Annual procurement report 2022/23 - September 2023: link to file • Annual procurement report 2021/22 - September 2022: link to file • Annual procurement report 2020/21 - September 2021: link to file Latest version: September 2023. Review timeframe: Annual. Assessment: The annual procurement report provides a summary of performance of the council Procurement Strategy and provides performance statistics that are collated by the Scottish Government to produce a national Annual Procurement Report. The latest annual report covering financial year 2022/23 was approved at committee in September 2023. Chief Officer (Assets and Procurement) ✓ ✓ ✓ Page 66 of 116
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33 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 The last annual procurement report is publicly available on the council’s website: https://www.northlanarkshire.gov.uk/business/procurement/key-procurement- documents An item within the Strategic Performance Framework Performance Reporting Schedule the annual report is scheduled to be updated and reported to committee in cycle 3 each year. Each cycle, there are committee reports for approval of contract awards above £500k supplies and services, above £2M works; acknowledgement of contract awards £50k-£500k supplies and services, £500l-£2M works; and, awarded contracts that have had variations greater than 10% of the award value. RAG: Climate change - committing to net zero The council recognises the need for urgent action and, as such, declared a Climate Emergency in June 2019. In addition, the council became a signatory of the Edinburgh Biodiversity Declaration in June 2021, recognising the need to protect nature as well as the important role it will play in tackling climate change. The risk of climate change to the local economy is considered significant and therefore as well as being the right thing to do, any deliberate interventions will benefit North Lanarkshire. Actions delivered consider the impact on the vulnerable such as those likely to become fuel poor and ensure that these households are not negatively impacted on. The council’s medium and long-term aims are as set out in the Climate Plan (approved in February 2022) - this encompasses the council’s own climate emergency declaration and its subsequent targets regarding emissions. The climate plan therein provides targets supported by thematic carbon budgets from 2021/22 to 2025/26 with a commitment to continually review and set targets beyond this. • Climate Plan: Action on Climate Together - February 2022: link to file The Climate Change (Duties of Public Bodies; Reporting Requirements) (Scotland) Order 2015 introduced a legal obligation for public bodies to report annually detailing their compliance with the duties specified in the Climate Change (Scotland) Act 2009 and its subsequent amendments. The report is produced annually for the most recently completed financial year with a submission date of 30th November each year. The annual submission requires the council to demonstrate that, as a public sector organisation, it is contributing to the nationally set climate change targets as well as adhering to its other responsibilities in terms of both adaptation and sustainability. The report ensures the council fulfils its legal obligations; it also provides an update on progress against the council’s carbon budgets set within the Climate Plan and the Energy Policy targets. • Public Sector Duties Climate Change annual report 2022/23 - February 2024: link to file • Public Sector Duties Climate Change annual report 2021/22 - February 2023: link to file The statutory reporting process is supported by the Sustainable Scotland Network who also analyse the annual submissions from the public sector bodies’ reports and report their overall findings publicly. This includes identifying strengths and weaknesses ( https://sustainablescotlandnetwork.org/reports ). Latest version: February 2024. Review timeframe: Annual. Assessment: The council’s Climate Plan was approved in February 2022. Each year, an annual report is produced on the council’s compliance with the public sector climate change duties and the status of the council in terms of its emissions targets. The February 2024 report in this respect shows a summary of the council’s annual footprint in terms of emissions (tCO2e) from the baseline year (2015/16) to the end of the latest reporting year (2022/23). The report in February 2024 also highlights a sample of the activity and actions contained within the Climate Plan Action Plan and the Programme of Work which contribute to reducing North Lanarkshire’s emissions as well as encouraging more sustainable practices within the area. Findings from an internal audit on climate change (and to review the council’s progress in reducing its carbon footprint) were reported to the Audit and Scrutiny Panel in November 2023 [ link to file ] and the Policy and Strategy Committee in March 2024 [ link to file ]. RAG: Chief Officer (Assets and Procurement) ✓ Asset management The Corporate Asset Management Plan (CAMP) provides an overview of how the council is managing its assets in alignment with the strategic direction of the organisation to both deliver and sustain an asset base that will meet current and future requirements. The CAMP is one of the tools used to manage the asset base and guide activities (i.e. maintain, rationalise, invest, dis-invest); it links into the ongoing review and development of the 5 year capital plan. • CAMP 2021-26 - September 2022: link to file Updates on the asset rationalisation and development area of work - which includes reviewing the use of assets on a regular basis to ensure their ongoing effectiveness - were provided to the Policy and Strategy Committee in March 2020 and October 2020. Latest version: September 2022. Review timeframe: Corporate Asset Management Plan approved in September 2022 covers the period from 2021 to 2026. Assessment: The CAMP is on the Strategy Policy Framework review programme to report on an update in 2025/26, when the current plan reaches the end of its current life. RAG: Chief Officer (Assets and Procurement) ✓ Communications Strategy The council’s overarching Communications Strategy covers the whole organisation and aims to ensure that communication activity closely aligns with the delivery of The Plan for North Lanarkshire. All major activity must support an ambition statement and also align with the core narrative which supports the Live, Learn, Work, Invest, and Visit brand strategy. • Communications Strategy - June 2019: link to file Latest version: June 2021. Review timeframe: Process in place to update the communications plan annually. Assessment: The council’s Communications Strategy was approved in June 2019. As part of that strategy, an annual communications plan was to be published looking back at the previous year’s major communications activity and setting out the major Chief Officer (Strategic Communication and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ Page 67 of 116
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34 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 The council has approved The Plan for North Lanarkshire and Programme of Work and these are the council’s priorities and therefore the focus for communications activity. As such, the Annual Communications Plan details communications activities for each year. • Annual Communications Plan - June 2021: link to file New platform developed for the council’s website went live in November 2020: https://www.northlanarkshire.gov.uk/ The council’s website has a section dedicated for public consultation https://www.northlanarkshire.gov.uk/your-community/working- communities/consultations. This section is used - along with other methods as appropriate - when draft strategies, policies, plans, or changes to service provision require feedback from the public as part of the development process. activity for the next 12 months. No plan was published for 2020/21 due to the pandemic. The plan for 2021/22 was approved in June 2021. Key to supporting the Programme of Work, an update to the strategy is scheduled to be reported to Policy and Strategy Committee in cycle 2 of 2024. RAG: Digital and IT Strategy IT and digital are integral to the future success of The Plan for North Lanarkshire, and the Digital and IT Strategy highlights how technology will be used to transform service delivery and deliver on the vision for a Digital North Lanarkshire with Digital Communities, a Digital Economy, and a Digital Council. The Digital and IT Strategy is central to delivery of the council’s transformational / service redesign programme as well as enabling many of the elements within the council’s Programme of Work. The Strategy details the programmes, projects, and policies that will enable the council to recover, renew, and transform services by exploiting emerging technology to the benefit of employees, service delivery, and ultimately the people and communities of North Lanarkshire. It guides services to transition from the current traditional IT estate to a new and agile digital service delivery. • Digital and IT Strategy 2024 to 2027 - March 2024: link to file • Annual review and refresh, February 2022: link to file • Annual review and refresh, September 2020: link to file • Digital and IT Strategy 2019 to 2024 - June 2019: link to file Latest version: March 2024. Review timeframe: Strategy reviewed and updated when it reaches the end of its current life. Assessment: The Digital and IT Strategy for 2019 to 2024 was introduced in June 2019 and refreshed in September 2020 to reflect the fast changing environment in which the council operates, not least the implications and unexpected opportunities arising from the pandemic. A further review and significant refresh was undertaken and approved at committee in February 2022. Following approval of the Programme of Work to 2028 in March 2023, the opportunity was taken to realign the Digital and IT Strategy accordingly and firmly establish what it means to be digital and move from doing digital to being digital. The Digital and IT Strategy for 2024 to 2027 aims to provide a clear direction and ensure a common shared understanding of the journey that needs to be taken to achieve a Digital North Lanarkshire. This also makes it clear how digital will support delivery of the other six Programme of Work priorities and where resources need to be targeted through a one council approach. An item within the Strategic Policy Framework, the Digital and IT Strategy is next scheduled for review when it reaches the end of its life in 2026/27. As agreed in March 2024 [ link to file ], the Policy and Strategy Committee will receive updates on implementation of the Strategy on a six-monthly basis. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Enterprise Architecture Governance Group (EAGG) The EAGG aims to ensure a consistent, coherent, and complete council-wide (enterprise) perspective to design to enable business operations to be transformed and the associated benefits to be secured in a co-ordinated manner across the organisation. The EAGG ensures: • Organisation wide governance for all digital solutions and services. • That a cohesive, integrated, and data driven approach to enterprise wide architecture is undertaken. • A holistic full lifecycle view of solutions is considered. • The council’s enterprise architecture principles are considered and addressed for new proposals. • The council’s enterprise architecture principles remain relevant. The EAGG has the ability and responsibility to challenge operational business cases, ensuring a holistic organisation wide approach to design is maintained and best value is achieved. Meetings are held approximately every six weeks. Minutes and meeting papers available. Latest version: Recurring group. Review timeframe: The group was formed in November 2019 to provide strategic governance and oversight for all digital and IT related projects, services, solutions, and operations across the council to ensure such are fit for purpose and comply with all relevant standards, specifications, and principles. Assessment: A review of the terms of reference for the Group was undertaken early in 2023 which identified improvements to the supporting documentation suite. The intentions set out in the Digital and IT Strategy are underpinned by the work of the EAGG. The Digital and IT Strategy (refreshed in March 2024) reflects the key governance role of the EAGG. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ Data Governance Board The corporate Data Governance Board is responsible for developing good practice and awareness raising to ensure that the council complies with its Data Protection Latest version: Recurring group. Review timeframe: Group reconfigured at its meeting in December 2020, transitioning from a Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ Page 68 of 116
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35 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 obligations. It is also responsible for developing the council’s overall maturity in how it collects, analyses, and manages data and business intelligence to reduce the volume and complexity of current reporting and achieve the shift to future state forecasting with policies and service developments informed by data intelligence. Meetings are held approximately every 8 weeks. Minutes and meeting papers available. service to a functional perspective. Assessment: Review of Board and terms of reference for Data Governance Board and Data Management Team was undertaken during 2021/22. This incorporated a self-assessment exercise where the areas for improvement were reported to the Data Governance Board in November 2021. The Annual Governance Statement for 2022/23 [ link to file ] provided an update on the implementation of these improvement actions. A further update was provided in the Senior Information Risk Owner (SIRO) Information Governance Assurance and Performance report (for April 2022 to November 2023) in February 2024 [ link to file ]. RAG: Strategic data management and information governance • Data and information management strategic roadmap - September 2022: link to file • BI Hub update - February 2022: link to file • Data and information management strategic roadmap - February 2021: link to file Latest version: February 2024. Review timeframe: Annual. Assessment: An update on the implementation of the Data and Information Management Roadmap and BI Hub was submitted to the Policy and Strategy Committee in September 2022. A further update was contained within the Senior Information Risk Owner (SIRO) report to Finance and Resources Committee in February 2024. RAG: Chief Officer (Business and Digital) ✓ Information Governance Framework An Information Governance Policy Framework is in place, comprising policies in terms of records and information management, data protection, information handling and classification, information risk, information security and payment card data security to ensure proper recording of information, appropriate access to that information including by the public, and compliance with legislation. • June 2023: link to file Latest version: June 2023. Review timeframe: Every two years. Assessment: Latest version of the Information Governance Framework was approved at Policy and Strategy Committee in June 2023. Next review due March 2025. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Information Security Policy An Information Security Policy, which includes cyber security, is in place; this aims to protect the council’s information systems and physical assets including supporting processes, networks, and equipment. This is essential to ensure the council can continue to operate and successfully deliver its functions, while finding the right balance between the benefits and risks to the processing of information. • June 2023: link to file Latest version: June 2023. Review timeframe: Every two years. Assessment: Latest version of the Information Security Policy was approved at Policy and Strategy Committee in June 2023. Next review due March 2025. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Cyber security Cyber security is the activity required to protect an organisation’s data, devices, networks, and software from unintended or unauthorised access, change or destruction via the internet or other communications systems or technologies. Cyber incidents pose an increasing threat to public bodies’ management of their information with hacking, ransomware, cyber-fraud, and accidental losses all evident across the public and private and sectors. • Cyber security assessment - February 2023: link to file Latest version: February 2023 Review timeframe: As required. Assessment: A joint review and assessment was undertaken in February 2023 (between Internal Audit and Business and Digital) using a structured format (using templates and guidance created by the National Audit Office, National Cyber Security Centre (NCSC), and the Scottish Government). This assessment - categorised as reasonable assurance - determined the council has robust and effective information governance arrangements, duly recognises the risks associated with cyber security threats, and operates practices commensurate with the good practice recommended by bodies such as the National Audit Office. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Senior Information Risk Owner (SIRO) The SIRO role is fulfilled by a member of the CMT. The SIRO has ownership of the council’s information risk policy, and acts at the strategic level as the advocate of information assurance and risk. Good practice in information governance requires an annual information governance and performance overview report to be presented to senior management and Elected Members outlining the council’s information governance arrangements, performance, Latest version: February 2024. Review timeframe: Annual. Assessment: Following various council restructures, SIRO responsibilities now rest with the Chief Officer (Business and Digital). A report was produced by the council’s SIRO and presented to the CMT and Audit and Scrutiny Panel in December 2021; this covered the years 2019/20 Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 69 of 116
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36 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 and compliance against key expectations and requirements. This report aims to provide assurances that information risks are being effectively managed to ultimately enable the council to comply with legislative requirements and good practice. • SIRO Information Governance Assurance and Performance Report April 2022 to November 2023 - February 2024: link to file • SIRO Information Governance Assurance and Performance Report 2021/22 - February 2023: link to file • SIRO Information Governance Assurance and Performance Report 2019/20 and 2020/21 - December 2021: link to file and 2020/21. Reporting reverted to the recommended annual frequency from financial year 2021/22 onwards, with a report submitted to the Audit and Scrutiny Panel in February 2023. The report to the Finance and Resources Committee in February 2024 provided details in respect of April 2022 to November 2023 to enable Elected Members to consider a more-up to-date snapshot of current information governance management arrangements. RAG: Data protection The Chief Officer (Legal and Democratic) is the council’s Data Protection Officer (DPO) and this role sits side by side with the council’s Senior Information Risk Owner (SIRO). • The Data Protection Policy was updated in line with the Information Governance Policy Framework in June 2023: link to file. • Data protection information is published on InsideNL: link to files. This includes Data Protection Impact Assessment (DPIA) guidance and template, General Data Protection Regulation (GDPR) guidelines, data protection breach and incident management protocol, privacy notice template, and data sharing agreements. Latest version: June 2023. Review timeframe: Every two years. Assessment: Policies and procedures in place and communicated via InsideNL. Latest version of the Data Protection Policy approved at Policy and Strategy Committee in June 2023. Next review of the Data Protection Policy due March 2025. RAG: Chief Officer (Legal and Democratic) / Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Data protection annual report The General Data Protection Regulation (GDPR) and the Data Protection Act 2018 (DPA) came into force in May 2018. An annual report updates on compliance with the regulations. • Annual data protection report 2021/22 - March 2023: link to file • Annual date protection report 2020/21 - November 2021: link to file Latest version: March 2023. Review timeframe: Annual. Assessment: The annual data protection report forms part of the Strategic Performance Framework reporting schedule. The latest report in March 2023 (by the council’s DPO) provided an update in relation to data sharing, breaches, complaints, and training. A report on the conclusion of a review of corporate Data Protection arrangements undertaken to ensure greater assurances can be provided in terms of statutory compliance with data protection legislation and information governance is scheduled to be submitted to committee in cycle 3 of 2024. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Freedom of Information The Freedom of Information (Scotland) Act 2002 and the Environmental Information (Scotland) Regulations 2004, both of which came into force in January 2005, provide rights to the public to ask for and be provided recorded information held by public authorities. • The process is outlined on the council’s website; the website also contains a guide to information available through the model publication scheme - November 2021: https://www.northlanarkshire.gov.uk/your-council/managing-information/freedom- information Latest version: November 2021. Review timeframe: As required. Assessment: Policies and procedures in place and communicated through the council’s website. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Freedom of Information annual report This report provides a breakdown of the Freedom of Information (and Environmental Information) requests, internal reviews, and appeals to the Scottish Information Commissioner processed by the council in each financial year. • Annual Freedom of Information report 2022/23 - November 2023: link to file • Annual Freedom of Information report 2021/22 - November 2022: link to file • Annual Freedom of Information report 2020/21 - November 2021: link to file Latest version: November 2023. Review timeframe: Annual. Assessment: The annual freedom of information report forms part of the Strategic Performance Framework reporting schedule. The latest report in November 2023 provided an update on the number of Freedom of Information and Environmental Information requests as well as the number of internal reviews and appeals to the Scottish Information Commissioner processed. The next report is scheduled to be reported to the Finance and Resources Committee in cycle 4 of 2024. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Employment policies and associated guidance The MyNL Policies A to Z site lists all of North Lanarkshire Council’s employment policies and the associated guidance documents and forms. https://mynl.co.uk/a-to-z/ Latest version: Policies are all individually dated. Review timeframe: Each policy is reviewed and updated as required in line with organisational and/or legislative changes. Assessment: MyNL contains an A-Z list of all of the Chief Officer (People Resources) ✓ ✓ ✓ ✓ ✓ Page 70 of 116
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37 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 Contracts of employment and job descriptions are in place for all posts to give employees a clear sense of purpose and direction. A recruitment process is in place which is applied consistently to ensure transparency and fairness. In line with the Scheme of Administration, an Appointments Sub-Committee is in place to deal with the recruitment and appointment of Chief and Depute Chief Officers with full delegated powers to consider and agree the job outline, employee specification, advertising proposals and interviewing procedures, agree the short list of candidates to be interviewed, interview the shortlisted candidates, and make the appointment. council’s employment policies and the associated guidance documents and forms. These documents are available to download. A version control process is in place to identify the date of the last review and refresh for each document. RAG: Professional / specialised input to policy development and decision making Business partners in People Resources and Finance are aligned to specific services in order to provided dedicated professional support. Solutions Relationship Managers in Business and Digital are aligned to services to facilitate a smooth transition to integrated technology and digital solutions and increase understanding of available solutions and levels of consumption. Specialised input is also incorporated into the council’s committee report process which requires sections completed on the following impacts: • Public Sector Equality Duty / Fairer Scotland Duty • Financial • HR policy • Legal • Data protection • Technology / digital • Environmental / carbon - change in February 2022 reflects the agreement at the Council meeting in June 2021, that the environmental impact was to be changed to environmental / carbon impact. • Communications • Risk • Armed Forces Covenant Duty • Children’s rights and wellbeing impact The role, and need for, good governance is reiterated in the Guidance accompanying the Report Template which requires to be used for all council reports. An e-learning module Writing Effective Committee Reports has been developed on LearnNL. The aim of this course is to establish a one-way approach to writing committee reports within the council. The e-earning module can be accessed through the following link: https://learnnl.learningpool.com/course/view.php?id=547 A One Way of Reporting booklet has been developed - this style guide provides guidance for those who have to put something in writing on behalf of the council. This can be anything from a letter, leaflet, strategy document, or news release to a committee report. This is available on InsideNL: One Way of Reporting.pdf. Latest version: Ongoing. Review timeframe: As required. Assessment: Structures and processes are in place that provide services with access to officers for various purposes, such as professional / specialised input to policy development and decision making and for report writing purposes. The committee report template and guidance is reviewed and updated regularly (either as a new impact is identified and endorsed by the CMT, or once a year as a matter of course). An update in February 2022 aimed to further improve the contents of the impacts section in committee reports and provide authors with subject matter experts contact details for further information and guidance. A further update in December 2022 reflected the new impact for the Armed Forces Covenant Duty and the change in Head of Service designations to Chief Officers. An update in June 2023 included the introduction of an impact for children’s rights and wellbeing. A subsequent update in September 2023 introduced a new dropdown option to show alignment, where appropriate, to the Programme of Work to 2028. The updated template and guidance is available on InsideNL: Report Template. Updates to the report template and guidance are issued to all employees via a NLC Announcement e- mail following each update. RAG: All Chief Officers ✓ ✓ ✓ ✓ ✓ ✓ ✓ Fairer Scotland Duty The Fairer Scotland Duty (FSD) came into effect in April 2018. The duty places a legal responsibility on particular public bodies in Scotland to actively consider how they can reduce inequalities of outcome caused by socio-economic disadvantage when making strategic decisions or at the policy development stage. August 2018: link to file Interim guidance was published nationally at this time. While awaiting further guidance from the Scottish Government, the council was required to take steps to ensure that the duty is taken forward through combining the needs of the FSD into the equality impact assessment process, as recommended in the FSD interim guidance. In preparation for the final guidance being published, the council considered how its own approach had delivered on the duty to reduce socio-economic disadvantage. The findings from this review were presented to committee in September 2021: link to file Updated guidance was published by the Scottish Governance in October 2021. The guidance didn’t changed substantially from what was published in 2018, as the duty hadn’t changed, but it was updated, enhanced, and informed by the experience of delivering the duty over the last three years. The pandemic and its impacts are reflected in the guidance, highlighting how important consideration of socio-economic disadvantage is in decision making in order to tackle the unequal impact on those on low incomes, with low wealth, in material deprivation, or living in deprived areas. Latest version: November 2023 Review timeframe: As this is nationally produced guidance, the Scottish Government undertook a consultation in May 2021 with a view to revising and finalising the interim guidance. Updated guidance was subsequently published in October 2021. Assessment: The guidance adopted by the council, also incorporates the equality impact assessment process and templates into the committee report writing processes. This guidance is on MyNL [ https://mynl.co.uk/knowledge-base/equality- impact-assessments/ ]. Following publication of the updated national guidance, a report was submitted to committee in January 2022 highlighting the changes from the previous guidance. RAG: Chief Officer (People Resources) ✓ ✓ ✓ ✓ Page 71 of 116
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38 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 Information in terms of the updated guidance was reported to committee in January 2022: link to file Equality Strategy The council’s Equality Strategy sets out a clear commitment to deliver equality for communities, service users, and employees through outcomes specifically developed to support the council’s vision to make equality an embedded element of not only mainstream service delivery but also the operation of the council. The Equality Strategy therefore underscores the council’s commitment to equality and human rights and sets out an approach that ensures that equality is embedded within everyday business through five key underpinning objectives for success. • Equality Strategy - September 2019: link to file Latest version: August 2019 Review timeframe: Strategy approved in August 2019 covers the period from 2019 to 2024. Assessment: The Equality Strategy is on the Strategy Policy Framework review programme to be reviewed in early 2024 with an update scheduled for committee in cycle 3 of 2024. RAG: Chief Officer (People Resources) ✓ ✓ ✓ ✓ Equality Impact Assessments (EqIA) The council ensures that equality impact assessments (EqIA) are undertaken to ensure fairness and openness in the decisions taken. This ensures a process is in place to examine the council’s main functions and policies to see whether they have the potential to affect people differently. Carrying out an EqIA on council policies, practices, decisions (including financial decisions), functions, and strategies helps to identify any negative impact on particular groups of people and therefore allows for action to be taken to remove it or lessen its negative effects. EqIAs also include assessments under the Fairer Scotland Duty. EqIAs are also undertaken as part of the annual budget decision process. Equality Impact Assessments are published by each service on the council’s website: https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Latest version: Ongoing. Review timeframe: Registers are reviewed at varying times within each service. Assessment: The council has recently established an Equalities Board and a key remit of this Board is to review and further strengthen the council’s approach to Equality Impact Assessments. An independent review of the council’s most recent equality impact assessments, aligned to its budget savings, was undertaken by the Scottish Women’s Budget Group in April 2024 and a report with recommended improvements is expected in June 2024. RAG: Chief Officer (People Resources) ✓ ✓ ✓ ✓ Public Sector Equality Duties Every four years public bodies covered by the Public Sector Equality Duties (PSED) are required to publish a number of reports and information to evidence how they are meeting the needs of people whose characteristics are protected by the Equality Act 2010 - the PSED (General Duty). The latest update in June 2021 fulfils this requirement. • Public Sector Equality Duties - June 2021: link to file in April 2020, the council was successfully reaccredited as a Disability Confident Leader after undergoing an external assessment conducted by Inverclyde Council. In August 2021 the council successfully participated in the pilot and achieved the Equally Safe at Work Bronze Standard award. • Disability Confident Leader and Equally Safe at Work - August 2021: link to file • Disability Confident Leader - Employer Accreditation Programme - April 2020: link to file A Race at Work Charter was approved at committee in October 2021. This provides a framework to support employers to take practical steps to ensure that their workplaces are identifying and tackling barriers that minority ethnic people face in in the workplace. It requires employers to commit to seven calls to action to ensure that ethnic minority employees are represented at all levels and that their organisation reflects British society today. • Race at Work Charter - October 2021: link to file The council has embedded the principles of Scotland’s Fair Work Convention Framework (2016) that describes fair work as work that offers effective voice, opportunity, security, fulfilment, and respect. • Fair Work Employer - November 2023: link to file A service review identified the need to be clearer about how the Equality Strategy is being delivered and to set out the significant equalities programmes of work which link to the ambitions and intentions within The Plan for North Lanarkshire, including support for those who are most disadvantaged. As such, a new delivery framework for equalities was developed outlining more clearly the key areas of focus within Equalities which will be supported by associated plan of activities and campaigns to support the advancement of Equalities Strategy. This was approved at committee in February 2023 and an update provided in April 2024. • Delivery Framework for Equalities, update - April 2024: link to file • Delivery Framework for Equalities 2023/24 - February 2023: link to file A Plan for Advancing Race Equality in the council’s Workforce, Communities, and Schools was approved at committee in February 2023: link to file Latest version: Various. Review timeframe: Various. Assessment: The Public Sector Equality Duty combined report in June 2021 covers a number of different requirements including - Mainstreaming Equalities, progress in achieving the council’s equality outcomes, employment Information, and the Equal Pay Policy Statement. The Delivery Framework for Equalities for 2023/24 was approved in February 2023. An update to the Wellbeing and Tackling Poverty Committee in April 2024 set out the priorities for the 2024/25 Delivery Plan for Equalities. The council’s most up to date Mainstreaming Equality report was approved by the Wellbeing and Tackling Poverty Committee in May 2023. The council’s progress as a Fair Work Employer was reported to the Wellbeing and Tackling Poverty Committee in November 2023. RAG: Chief Officer (People Resources) ✓ ✓ ✓ ✓ Page 72 of 116
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39 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 The Mainstreaming Equality report was updated and approved at committee in May 2023. This details how the council, including the Education Authority and the Licensing Board, is demonstrating that the general equality duty is integral to its work. This composite report also updated on progress being made to deliver against the stated Equality Outcomes for 2021-25 as well as an up to date picture of the current equalities profile of council employees, employment practices, and pay gap information as required to be published by law every two years. • Mainstreaming Equality report - May 2023: link to file Corporate Risk Register The corporate risk register is formally reviewed annually to ensure completeness and continuing alignment to the council’s strategic objectives, The Plan for North Lanarkshire and associated Programme of Work. The corporate risk register is also continually reviewed during the year to ensure it remains valid and up-to-date and properly reflects both new and emerging risks and changes to existing risks. All corporate risks identified and agreed as meriting inclusion in the corporate risk register are subject to regular monitoring and review by relevant senior management and periodic review/consideration of individual risks by both the CMT and the Audit and Scrutiny Panel in line with their respective governance roles. • Corporate risk register for 2023/24 - September 2023: link to file Developments relating to the Corporate Risk Register since the last update are reported to each cycle of the Audit and Scrutiny Panel. • Latest quarterly risk management update - May 2024: link to file Latest version: September 2023. Review timeframe: Annual. Assessment: The Corporate Risk Register is key in supporting the council’s Programme of Work and, as such, is subject to an annual review and update process. Risks within the Corporate Risk Register are on a regular programme of review and deep dives into specific risks are frequently reported to the Audit and Scrutiny Panel. The most recent Corporate Risk Register (for 2023/24) was considered by the Audit and Scrutiny Panel in September 2023. As reported in the quarterly risk management update to the Audit and Scrutiny Panel in May 2024, all bar one of the risks on the Corporate Risk Register are classified as live with completed risk documentation. The one risk classified as draft where documentation is currently being finalised is for the Target Operating Model (i.e. ensuring resources (workforce, digital and assets) and service delivery are fully aligned to support the successful implementation of the council’s future operating model). Quarterly risk management update reports are scheduled to be presented to the Audit and Scrutiny Panel each cycle of 2024/25. The Corporate Risk Register for 2024/25 is scheduled to be reported to the Audit and Scrutiny Panel in cycle 3 of 2024. RAG: Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Service risk registers Each service is required to maintain a Service Risk Register in line with the Risk Management Strategy. The Strategy defines roles and responsibilities in this respect, for example Risk Champions and Facilitators are identified for each service. These are noted on InsideNL: Risk Management. Service Risk Registers require to be reviewed and monitored by Service Management Teams to ensure that service risk registers are complete and up-to-date, and that any new and emerging risks are identified, assessed, and managed effectively. • Update in terms of the key service risks - May 2024: link to file Latest version: Ongoing. Review timeframe: Registers are reviewed at varying times within each service. Assessment: Service risk registers are required to be a standing item on all service management team meetings. Work was undertaken by the corporate risk section in 2023 to supplement the corporate / strategic risk register information included in the report to the Audit and Scrutiny Panel with a summary of key service risks from service risk registers to enable Elected Members to have sight of those risks with the highest residual risk scores. This was referenced in the quarterly report to the Audit and Scrutiny Panel in November 2023 [ link to file ] and included in the quarterly update in February 2024 [ link to file ]. Thereafter key service risks are scheduled to be reported to the Panel every six months. RAG: Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Project risk registers As part of the corporate Project Management Framework (2022), all projects are required to complete a Position Risk Assessment (PRA). This is to estimate the level of risk within a project, both at an initial stage and at any other time during the life cycle of the project. The PRA template and guidance is on InsideNL: Project Management Framework Latest version: December 2022. Review timeframe: As required. Assessment: The approach to risk management when managing projects was reviewed when updating the Project Management Framework in 2022. The Position Risk Assessment (PRA) documentation and guidance was also reviewed and updated at that time. Quality assurance arrangements developed to support the Project Management Framework include an assessment in respect of the use of the Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 73 of 116
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40 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 PRA documentation; this includes a key role for the Audit and Scrutiny Panel for which the initial outline was reported to the Panel in February 2024 [ link to file ]. RAG: Complaints Handling Procedure The Scottish Public Services Ombudsman (SPSO) have established a Local Authority Model Complaints Handling Procedure which defines the two-stage process which the council is required to implement when handling all complaints received. The council has implemented this procedure since it came into effect in April 2013. • The procedure is available publicly on the council’s website: https://www.northlanarkshire.gov.uk/your-council/complaints-and-feedback • An online portal for making complaints is also accessible from the website: https://www.northlanarkshire.gov.uk/nlc-forms/complaint A key aspect of the Local Authority Model Complaints Handling 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. • Performance in complaints handling - February 2024: link to file • Complaints performance on the council’s website - February 2024: https://www.northlanarkshire.gov.uk/your-council/complaints-and- feedback/complaints-performance Latest version: February 2024. Review timeframe: Annual. Assessment: Information on the council’s complaints handling procedure is published on the website; this also contains links to the online portal to allow for complaints to be made. The website also contains information on advocacy services for those that need help to make a complaint. The latest report in terms of the council’s performance in handling complaints in line with the Local Authority Complaints Handling Procedure was reported to the Audit and Scrutiny Panel in February 2024. The next report is noted on the Audit and Scrutiny Panel scrutiny programme for a report to be submitted in cycle 4 of 2024. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ Audit and Scrutiny Panel The activities and functions of the Audit and Scrutiny Panel ensures the council complies with the standards set out in the CIPFA Position Statement: Audit Committees in Local Authorities (2018). As such, the purpose of the Audit and Scrutiny Panel is 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” and its activities include providing an “independent review of the council's governance, risk management, performance, and control frameworks and oversees the financial reporting and annual governance processes” - as set out in the Scheme of Administration (March 2024). The Panel’s specific duties in relation to the Annual Governance Statement are also reflected in the Scheme of Administration, in that it is the Panel’s remit to “review the Annual Governance Statement prior to approval and consider whether it properly reflects the risk environment and supporting assurances, taking in to account Internal Audit’s opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and control.” The Audit and Scrutiny Panel is supported by a Scrutiny Work Programme which is regularly reviewed and updated; this ensures that the scrutiny structures in the council support members in reviewing and challenging its performance in line with Best Value guidance. • Scrutiny Work Programme - February 2024: link to file Meetings are held every cycle. Minutes and meeting papers are available on the council’s website : link to files Latest version: Recurring Panel meetings. Review timeframe: Review arrangements for the Audit and Scrutiny Panel take place in line with the Scheme of Administration. Assessment: Scheme of Administration was updated in March 2024 [ link to file ]. A self-evaluation of the Audit and Scrutiny Panel was undertaken in 2023 and the resultant outcome report and improvement plan was approved by the Panel in November 2023 [ link to file ]. This followed an Internal Audit review in 2021 which recommended 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. In December 2023, the Council meeting [ link to file ] formally agreed one of the improvement actions in respect of amending the governance arrangements and removing the scope for substitute members to attend Audit and Scrutiny Panel meetings given the importance of Panel members having appropriate training, knowledge, and understanding and recognising the role that consistency in involvement has in terms of ensuring ongoing Panel effectiveness. RAG: Chief Officer (Business and Digital) / Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ Audit and inspection reports The council is subject to ongoing inspection work undertaken by a range of scrutiny bodies. This includes the work the council carries out in partnership with other public bodies. This inspection work provides an independent assessment of North Lanarkshire's performance. The latest inspection reports are available from the council’s website: https://www.northlanarkshire.gov.uk/your-council/performance-of-the-council/best- value/independent-assessments Inspections during 2023/24 included the following: • Progress visit to evaluate the effectiveness of the community learning and development partnerships’ approach to self-evaluation and planning for improvement, and consider progress made against identified priorities in their community learning and development plans - February 2024. • Joint inspection of services for children and young people at risk of harm in North Lanarkshire community planning partnership led by the Care Inspectorate in collaboration with Education Scotland, Health Improvement Scotland, and His Majesty’s Inspectorate of Constabulary in Scotland - October 2023. Latest version: Various. Review timeframe: These are set by the respective external audit or inspection body. Assessment: Audit and inspection reports are reported to the relevant committee when received by the council and uploaded to the website when they are made publicly available by the relevant body. RAG: All Chief Officers ✓ ✓ ✓ ✓ Page 74 of 116
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41 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 • Scottish Housing Regulator annual assurance statement 2022/23 - August 2023: link to file • Scottish Housing Regulator annual landlord report 2022/23 - November 2023: link to file Best Value A report to the Audit and Scrutiny Panel in February 2023 [link to file ] advised on the conclusion of the national approach to auditing Best Value through the BVAR process. This report also advised the new thematic audit approach that would then be implemented in 2023 across all 32 local authorities by the Accounts Commission. A further update to the Audit and Scrutiny Panel in February 2024 [ link to file ] reported on the key findings from the first year of the thematic audit and advised of the theme for the year two audit. The Best Value thematic audit work undertaken in the council in 2023 focussed on the leadership of the development of new local strategic priorities - the outcome report was submitted to the Audit and Scrutiny Panel in October 2023: link to file This report is also available on the council and Audit Scotland websites: • Council’s website: https://www.northlanarkshire.gov.uk/your-council/performance- of-the-council/best-value/national-audit-results • Audit Scotland website: https://audit.scot/uploads/docs/report/2024/bv_2223_north_lanarkshire.pdf Best Value Assurance report (BVAR) • Update on recommendations, Audit Scotland Annual Audit Report (AAR) - October 2023: link to file • Update on recommendations, Audit Scotland Annual Audit Report (AAR) - October 2022: link to file • Update on recommendations, Audit Scotland Annual Audit Report (AAR) - December 2021: link to file • Update on recommendations, Audit Scotland interim Management Report - June 2021 link to file • Update on recommendations - March 2020: link to file • Update on recommendations - September 2019: link to file • Council meeting to formally present the BVAR findings - June 2019: link to file Latest version: October 2023. Review timeframe: Annual. Assessment: Published in May 2019, the BVAR comprised eight recommendations for action by the council. Various updates have been provided to committee since and the external auditors Annual Audit Report (AAR) has provided updates every year in terms of completed recommendations. The Annual Audit Report (AAR) in October 2023 reported that all eight recommendations had been implemented and were complete. The outcome report following the Best Value thematic audit work during 2023 (on the leadership of the development of new local strategic priorities) was reported to the Audit and Scrutiny Panel in October 2023 and the Policy and Strategy Committee in 2023. 2024 Best Value thematic audit work (in terms of workforce innovation) is currently underway. The findings from this are scheduled to be incorporated into the Annual Audit Report (AAR) due to be submitted to the Audit and Scrutiny Panel in the autumn of 2024. RAG: Chief Executive / Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Internal Audit The External Quality Assurance Review (EQAR) of a local authority’s Internal Audit function assesses the function’s compliance with the Public Sector Internal Audit Standards (PSIAS). The PSIAS includes core principles, a code of ethics and a number of operational standards with which Internal Audit functions are expected to comply. An important element of the PSIAS is a requirement for regular self- evaluation, but in addition, the PSIAS also require an independent external quality assurance review (EQAR) to be conducted at least once every five years and reported to key stakeholders including senior management and the audit committee. • Internal Audit External Quality Assurance Review (EQAR) - May 2024: link to file The Internal Audit Charter is a formal document that defines Internal Audit’s purpose, authority, and responsibility. It establishes Internal Audit’s position within the council, including the nature of the functional reporting relationship with senior management and the Audit and Scrutiny Panel; authorises access to records, personnel, and physical properties relative to the performance of audit engagements; and defines the scope of Internal Audit activities. Although the Charter is discussed and agreed with senior management (including the Chief Executive), final approval of the Internal Audit Charter resides with the Audit and Scrutiny Panel. • Internal audit charter - September 2021: link to file Internal Audit activity is governed by policies, procedures, rules, and regulations established by the council including the council’s Financial Regulations and Internal Audit Charter. The Internal Audit service is expected to comply with the standards laid down by the Public Sector Internal Audit Standards (PSIAS). The planned work of the Internal Audit service is outlined in the Internal Audit Annual Plan, which is submitted to, and approved by, the Audit and Scrutiny Panel annually. Any proposed programme of work must be appropriate and sufficient to support the preparation of an opinion by the Chief Officer (Audit and Risk) on the overall soundness of the council’s corporate governance, risk management and internal control systems. • Internal Audit annual plan 2024/25 - May 2024: link to file • Internal Audit annual plan 2023/24 – May 2023: link to file • Internal Audit annual plan 2022/23 - September 2022: link to file • Internal Audit annual plan 2021/22 - June 2021: link to file • Internal Audit annual plan 2020/21 - September 2020: link to file The Public Sector Internal Audit Standards and the Council’s Internal Audit Charter Latest version: Recurring function. Review timeframe: Annual. Assessment: The annual Internal Audit report provides an update on compliance with corporate governance and is a key item of evidence for the Annual Governance Statement. Various audit outputs are a standing item on the Audit and Scrutiny Panel agenda during the year. Reports submitted to the Audit and Scrutiny Panel each cycle provide a range of independent assurance outputs (in line with the approved Internal Audit Strategy and Annual Plan) focused on cyclical coverage of core corporate governance processes, key strategic priorities and programmes of work, key corporate risks, and key financial systems. An item within the Strategic Policy Framework, the Internal Audit Strategy is scheduled to be reviewed, updated, and reported to committee in cycle 4 of 2024; this will allow for alignment with the planned review and update of the Internal Audit Charter. The Internal Audit Strategy and Charter are informally reviewed by the Chief Officer (Audit and Risk) annually and no changes have been required to date, but a formal review is scheduled to take place during 2024/25. The results of the latest EQAR were reported to the Audit and Scrutiny Panel in May 2024. The Internal Audit annual plan for 2024/25 was reported to the Audit and Scrutiny Panel in May 2024. The Internal Audit annual report for 2023/24 (and annual opinion) is scheduled to be reported to the Audit and Scrutiny Panel in June 2024. RAG: Chief Officer (Audit and Risk) ✓ ✓ ✓ Page 75 of 116
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42 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 require the Chief Officer (Audit and Risk) to provide the Audit and Scrutiny Panel (and the Chief Executive and CMT) with an annual summary of the work undertaken by Internal Audit and to provide an annual independent opinion on the council’s corporate governance, risk management, and internal control arrangements. • Internal Audit annual report 2021/22 (and annual opinion) - June 2023: link to file • Internal Audit annual report 2021/22 (and annual opinion) - September 2022: link to file • Internal Audit annual report 2020/21 (and annual opinion) - June 2021: link to file • Internal Audit annual report 2019/20 (and annual opinion) - September 2020: link to file To support the Annual Governance Statement, the council is required to demonstrate compliance with the CIPFA Statement on the role of the Head of Internal Audit in public service organisations (2019). This assurance is provided through the Strategic Governance Framework which sets out the role of Internal Audit and depicts in a diagram the steps in the annual review process which informs the content of the Annual Governance Statement. The Strategic Governance Framework undergoes a review and refresh exercise each year to ensure it remains up to date in reflecting the council’s governance arrangements and it is reviewed and endorsed annually by the council’s senior management team. Corporate governance audits Internal Audit regularly review the council’s corporate governance arrangements to provide independent assurance on the adequacy and effectiveness of the council’s arrangements for ensuring that it complies with the principles of the CIPFA/SOLACE Delivering Good Governance in Local Government Framework (2016). • Audit on corporate governance principles C and D - May 2023: link to file • Audit on corporate governance principles A and B - March 2022: link to file • Audit on corporate governance principles E, F, and G - March 2021: link to file • Audit on corporate governance principles C and D - September 2020: link to file • Audit on corporate governance, principles A and B - March 2019: link to file • Internal Audit annual report 2021/22 (and annual opinion) - June 2023: link to file • Internal Audit annual report 2021/22 (and annual opinion) - September 2022: link to file • Internal Audit annual report 2020/21 (and annual opinion) - June 2021: link to file • Internal Audit annual report 2019/20 (and annual opinion) - September 2020: link to file Latest version: May 2023. Review timeframe: Annual. Assessment: An Internal Audit is undertaken on an annual basis that focuses on specific principles of corporate governance (in line with the Delivering Good Governance in Local Government Framework). Findings and areas for improvement in this respect are reported to the Audit and Scrutiny Panel. Reports in respect of the Internal Audit annual opinion have to date stated that the results from the detailed internal audit work examining the council’s corporate governance arrangements suggest that compliance with the requirements of the corporate governance framework adopted by the council continue to be positive with no significant weaknesses or areas of concern highlighted. RAG: Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ External auditor’s annual audit report (AAR) The Accounts Commission have appointed Audit Scotland as the council’s appointed external auditor. Expected outputs to be produced by the council’s external auditors are outlined each year in their annual planning document. This includes a requirement that the external auditor annually prepare a report for Elected Members and the Controller of Audit summarising the audit work done and presenting the main findings arising from the audit work. The external auditor’s report presents key matters arising from each of the main areas of work undertaken by the external auditor, including the audit of the financial statements and issues relating to the council’s financial management, financial sustainability, governance, and best value arrangements. • Final AAR for 2022/23 was published by Audit Scotland March 2024; links to the council and IJB AAR are on the council’s website: https://www.northlanarkshire.gov.uk/your-council/performance-of-the-council/best- value/independent-audits • Draft AAR for 2022/23 was considered by the Audit and Scrutiny Panel in October 2023: link to file Latest version: October 2023. Review timeframe: Annual. Assessment: Draft Annual Audit Report (AAR) for the council was considered by the Audit and Scrutiny Panel in October 2023 with the final version for the council and the IJB published on the Audit Scotland website in March 2024. The Annual Audit Report (AAR) for 2023/24 is scheduled to be reported to the Panel in the autumn of 2024. RAG: Chief Officer (Business and Digital) / Chief Officer (Finance) / Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ ALEOs’ governance and risk management oversight and assurance The council’s arm’s length external organisations (ALEOs) complete an annual Certificate of Assurance and update the accompanying Checklist to support the preparation of the council’s statements on corporate governance and internal financial control. In addition, a regular reporting process is in place to provide the Audit and Scrutiny Panel with oversight and assurance of governance, financial governance, and risk management arrangements within each ALEO. • Latest assurance report - February 2024: link to file Latest version: February 2024. Review timeframe: Six monthly. Assessment: Regular reports are submitted to the Audit and Scrutiny Panel on arrangements to ensure the council maintains adequate oversight of service delivery and governance while demonstrating where arm’s length external organisations (ALEOs) are supporting delivery of The Plan for North Lanarkshire. Latest oversight and assurance report was submitted to the Audit and Scrutiny Panel in February 2024. The Audit and Scrutiny Panel agreed in February Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ Page 76 of 116
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43 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 2024 that a review of the format and frequency of future reports to the Panel is undertaken with the findings reported to the Audit and Scrutiny Panel at a future meeting; and that a refresh of the ALEO Review Programme is undertaken during 2024/25 and 2025/26 and notes that the findings from reviews will be reported to future meetings of the Policy and Strategy Committee in due course and in line with the council’s Scheme of Administration. RAG: Community Planning Partnership - Strategic Leadership Board The Strategic Leadership Board supports the council and the Community Planning Partnership to ensure there is effective governance and collaborative arrangements in place in line with Best Value legislation. This includes structures with clear lines of responsibility and accountability, clear roles and responsibilities, and agreement around priorities. Information is available on the council’s website: • Community planning: https://www.northlanarkshire.gov.uk/your- community/working-communities/your-area/community-planning • Strategic Leadership Board: https://www.northlanarkshire.gov.uk/your- community/strategic-leadership-board - meetings are held approximately every 10-12 weeks; minutes of Strategic Leadership Board meetings are published on the website. An annual report to committee provides an update on activities undertaken by the North Lanarkshire Community Planning Partnership Board each year in order to demonstrate where partnership working is making a significant contribution to improving local outcomes and ensuring compliance with statutory requirements. • Annual report 2022/23 - February 2024: link to file • Annual report 2021/22 - February 2023: link to file • Annual report - September 2021: link to file Latest version: Recurring group. Review timeframe: As required. Assessment: The latest annual report for 2022/23 was approved at the Communities Committee in February 2024. The Framework for Demonstrating Improved Outcomes for Communities was formally approved by the Strategic Leadership Board in June 2022. This sets out the performance arrangements in line with the partnership’s programme of work, strategies, policies, and plans, and strategic and local delivery requirements and includes a reporting timetable. A self-evaluation of Partnership / Community Board effectiveness in line with their role in improving outcomes for local people and communities was undertaken during 2023 (as noted in the item for Community Boards below). An update in this respect was included in a report to the Audit and Scrutiny Panel in May 2024 [ link to file ]. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Community Boards Community Boards are part of the structure supporting the Community Planning Partnership in North Lanarkshire and the implementation of the Local Outcome Improvement Plans. The overall governance of Community Boards and local outcomes rests with the Strategic Leadership Board of the North Lanarkshire Partnership; not the council alone. • Latest Community Boards and partnership communication strategy - April 2024: link to file • Latest Local Outcome Improvement Plan performance report - February 2024: link to file • Establishment of Community Boards - March 2020: link to file • Governance arrangements - April 2020: link to file • Community Matters - a framework for working with communities - August 2019: link to file Community Board information and dates of meetings on the council’s website - last updated April 2024: https://www.northlanarkshire.gov.uk/your-community/working- communities/your-area/community-boards Local Outcome Improvement Plans: https://www.northlanarkshire.gov.uk/your- community/working-communities/your-area/local-outcome-improvement-plans-loips Latest version: April 2024. Review timeframe: Meetings are ongoing. Assessment: All Community Boards are operational and supported by a Chief Officer in the role of Community Co-ordinator; a schedule of meetings is in place which is updated regularly. Local Outcome Improvement Plans are in place for each of the 9 Community Board areas. A report providing an update on the work of the Community Boards and the partnership communication strategy is submitted to the Communities Committee each cycle. Local Outcome Improvement Plan performance reports are regularly submitted to the Communities Committee. A review of corporate governance by Internal Audit in March 2021 [ link to file ] recommended that, after allowing a sufficient period of time for the model and individual Boards to become established, a formal review (or self-assessment) of the effectiveness of the Community Boards should be undertaken. This work was combined with a self-evaluation of the Strategic Leadership Board and an update included in the annual frameworks position statement report to the Audit and Scrutiny Panel in November 2023 [ link to file ]. A subsequent report to the Audit and Scrutiny Panel in May 2024 [ link to report ] set out the background to the Boards, highlighted the partnership work underway to support the Community Boards model and delivery of Local Outcome Improvement Plans, and advised of the self-evaluation to assess the effectiveness of the governance and delivery arrangements in place to support community planning at both a strategic and a community level. An item within the Strategic Policy Framework, Community Matters (the framework for working with communities) is next scheduled for review in 2024 in Chief Officer (Strategic Communication and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ Page 77 of 116
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44 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 line with the partnership communications strategy and implementation of the findings from the community planning / Boards self-evaluation exercise undertaken in 2023. The update is scheduled to be reported to the Communities Committee in cycle 4 of 2024. RAG: Boards and working groups A range of programme / project boards and working groups, aligned to the delivery (and governance) of specific Programme of Work items, are in operation, e.g. Strategic Capital Delivery Group, Hub Delivery Programme Board, and Data Governance Board. Meetings frequency differs for each Board, but generally meetings are held every 6-8 weeks. Minutes and meeting papers available. Latest version: Recurring groups. Review timeframe: Membership and terms of reference reviewed and updated as required. Assessment: A review of the council’s Boards and working groups was undertaken during 2023/24 as part of the development of the governance arrangements for the new Programme of Work to 2028. The governance framework supporting the Programme of Work (developed in 2024) sets out the structure in this respect. RAG: All Chief Officers ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Serious Organised Crime / Counter Terrorism (SOC / CT) working group Serious organised crime and the threat of terrorist attacks continue to present significant challenges to the council in it seeking to protect Elected Members, employees, physical assets, public funds, and the information it holds from the risks of infiltration and attack. The council's physical and cyber security is a priority so as to ensure that it is not exposed to any incident which gives rise to loss of life or injury, financial loss, or reputational damage. Meetings are held quarterly. Minutes and meeting papers available. Regular updates are also provided to the council’s CMT and communications are issued to all staff as required. A NLC Announcement was issued in May 2024 reminding staff of the requirements to be adhered to in respect of building security and safety. Latest version: Recurring group. Review timeframe: The Chief Officer (Legal and Democratic) is the Single Point of Contact (SPOC) for the council’s working group as well as the Lanarkshire multi-agency group. Assessment: A process is established through the SPOC to ensure ongoing review of all controls either in place or assessed as being necessary. This is particularly important given the ever changing and developing environment in which these risks operate. A specific review on the council’s activities and measures to safeguard against serious organised crime and terrorism attacks was undertaken during 2022 and the outcome was reported to the Policy and Strategy Committee in September 2022 [ link ]. This work continues to be undertaken throughout each year and is reported on an annual basis, with the latest report submitted to the Policy and Strategy Committee in March 2024 [ link ]. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Corporate Resilience Plan Dedicated section on InsideNL for business continuity and disaster recovery: • Corporate Resilience Plan - June 2021, this is available on InsideNL: link to file • Update - November 2022: link to file • Update - November 2021: link to file Latest version: June 2021 Review timeframe: As required. Assessment: An update in respect of the Corporate Resilience Plan was reported to committee in November 2022. RAG: Depute Chief Executive ✓ ✓ ✓ ✓ Corporate Resilience Group Meetings are held approximately every 8 weeks. Minutes and meeting papers available. Latest version: Recurring group Review timeframe: Corporate Resilience Group in operation; chaired by Chief Officer (Community Operations). Assessment: Effectiveness of the group is reviewed in line with the council’s Corporate Resilience Plan. RAG: Depute Chief Executive ✓ ✓ ✓ ✓ Corporate Business Continuity Plan / service Business Continuity Plans In line with The Civil Contingencies Act (Contingency Planning) (Scotland) Regulations 2005, (and Best Value), businesses are required to have continuity planning measures in place in order to survive and continue to thrive while working towards keeping an incident as minimal as possible. In accordance with the Act, the council has a duty to make relevant provisions, and this forms an important part of the council’s resilience development functions. • Business continuity guidance notes on InsideNL - April 2024: link to file Latest version: April 2024. Review timeframe: Annual. Assessment: It is the responsibility of each service within the council to detail their specific business continuity arrangements which would be enacted, as appropriate, to mitigate the impact of an emergency. Chief Officers are required to review and update their Business Continuity Plans annually. Chief Officers are also required to complete a business continuity annual assurance return. Depute Chief Executive ✓ ✓ ✓ ✓ Page 78 of 116
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45 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 An Internal Audit was undertaken on Business Continuity Planning in September 2022 [ link to file ]. This identified recommendations for action which included improvements to the current framework for documenting individual services’ Business Continuity / Disaster Recovery arrangements to enhance the quality and completeness of the corresponding plans, a more robust and formalised review process for corporate and individual services’ business continuity and disaster recovery arrangements, and consistently undertaking formal testing of business continuity and/or disaster recovery arrangements. The updated guidance notes are on InsideNL as at April 2024. The questions in the Chief Officers year end certificate and checklist in relation to business continuity were reviewed and updated in the process for 2023/24; these questions are in place to capture service information into business continuity plans covering all services / functions, being reviewed and updated during 2023/24, being subject to a testing exercise as well as all staff being aware of the arrangements and information on up to date ICT disaster recovery plans. The Internal Audit Plan for 2024/25 [ link to file ], approved at the Audit and Scrutiny Panel in May 2024, includes follow up audit work on business continuity planning to review the effectiveness and impacts of actions taken by management in response to previous audit findings. RAG: Power Resilience Strategy Black Start event is the name for the recovery process following a complete (or partial) shutdown of the Great Britain electricity system (National Electricity Transmissions Failure) where the planning assumption is that full power restoration could take up to seven days. The planning arrangements for such a recovery process are described under the term Power Resilience. Within the last United Kingdom Government National Risk Assessment, Black Start is rated as a medium likelihood with significant impacts. Although the council has well documented and comprehensive business continuity planning measures in place, all of these are based on the assumption that there will be a national power supply available. As a consequence, the Scottish Government requested that in addition to normal business continuity arrangements all public bodies should also have a stand-alone Power Resilience Strategy which would be enacted in the event of any failure of the national grid system. A Power Resilience Strategy was developed for the council and approved at committee in February 2023: link to file Latest version: February 2023. Review timeframe: Review scheduled to be undertaken during 2024/25. Assessment: The aim of the Power Resilience Strategy is to provide a framework for, and to enhance, the council’s power resilience arrangements. RAG: Depute Chief Executive ✓ ✓ ✓ ✓ Council’s response to COVID • Self-evaluation exercise - October 2020: link to file • Internal audit - March 2021: link to file Latest version: October 2020. Review timeframe: N/A. Assessment: A desktop review of the council’s response to the COVID-19 pandemic was undertaken in September 2020. This review was structured around a set of criteria developed independently by the Improvement Service; it comprised 20 assessment statements across four sections - the council’s response to COVID19, governance of the council during COVID-19, support for staff during COVID-19, and new ways of working. This exercise also captured lessons learned from the pandemic to support the council through the recovery and renewal planning processes, and to move to a platform of stability from which available resources were able to be redirected to fulfil the ambition set out in The Plan for North Lanarkshire. An Internal Audit was subsequently carried out to provide independent assurance of the adequacy and effectiveness of the council’s resilience Chief Executive ✓ ✓ ✓ ✓ ✓ Page 79 of 116
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46 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 arrangements and its response to the pandemic. Based on the results of the work, this audit was categorised as offering substantial assurance. RAG: Leadership and Operating Model The Leadership and Operating Model aims to ensure a unified approach to maintain effective management, operation, and governance structures within each Hub. The model aims to ensure that Town and Community Hubs operate as a single entity and support a much wider integrated community offer - with communities having more direct access to the services they need and staff closer to the communities they work in. This unified approach puts communities at the heart of the council’s model and seeks to ensure everyone is given equality of opportunity and individuals are supported, encouraged, and cared for at each key stage of their life. • March 2023: link to file Latest version: March 2023. Review timeframe: Annual. Assessment: A three phased approach to the model over a 10 year period was initially approved in December 2021. A report submitted to the Policy and Strategy Committee in March 2023 outlined what had been delivered in phase one and set out a 2-year plan for phase two as an integrated provision that depends on strategic alignment between projects and programmes delivering against The Plan for North Lanarkshire. At this time approval was granted on the 2-year plan in order to move towards the longer term operating model. An update is scheduled to be reported to the Policy and Strategy Committee in cycle 2 of 2024. RAG: Chief Officer (Strategic Communication and Engagement) ✓ ✓ ✓ ✓ ✓ Economic outcomes The Delivering Good Governance in Local Government: Framework positions the attainment of sustainable economic outcomes as a key focus of governance processes and structures. The Plan for North Lanarkshire has as its centre a vision for inclusive growth and prosperity for all with one of the five priorities being to improve economic outcomes and opportunities. More specifically, the Economic Recovery Plan recognised that the pandemic had a profound impact not just on the nation’s health and wellbeing, but also on global, national, and local economies. It is likely that the economic effects of the pandemic will be felt for many years to come. While the council is unable to directly influence some of the macro-economic factors that impact on the local economy, the council and partners still have an important an important role in supporting and sustaining local economic recovery. • Update, February 2022: link to file • February 2021: link to file The Economic Regeneration Delivery Plan (ERDP) is a high-level framework which is aligned to the composite capital programme and delivers on the priority of The Plan for North Lanarkshire to improve economic outcomes and opportunities. This will be achieved by delivering an integrated approach to investing in four key inter-related areas coherently across the organisation - housing supply, town centres, business and industry, and infrastructure. • ERDP - February 2023: link to file Latest version: February 2022. Review timeframe: The Economic Recovery Plan covers the period from 2020 to 2023. The ERDP covers the period from 2023 to 2028. Assessment: The Economic Recovery Plan seeks to secure sustainable improvements in terms of economic outcomes and opportunities for all by helping to mitigate some of the economic impact of the pandemic. An update on progress was reported to committee in February 2022. An item within the Strategic Policy Framework, the ERDP for 2023 to 2028 was approved in February 2023. The supporting action plan is reviewed and updated annually. The ERDP itself will be reviewed and updated in 2027/28 when it reaches the end of its current life. RAG: Chief Officer (Place) ✓ ✓ ✓ ✓ ✓ NL Connect NL Connect is an opportunity for residents to share their views, help inform council priorities, and shape the future of North Lanarkshire. https://www.northlanarkshire.gov.uk/your-community/working-communities/nl-connect Latest version: Live process Review timeframe: As required Assessment: Ongoing mechanism for local engagement. RAG: Chief Officer (Business and Digital) ✓ ✓ ✓ ✓ Tenant engagement and participation The Housing (Scotland) Act 2001 introduced the first legal framework for tenant participation in Scotland. Section 53 (1) of the 2001 Act sets out the statutory requirement for social landlords to develop and publish a Tenant Participation Strategy in consultation with tenants. The Housing (Scotland) Act 2010 places additional duties on social landlords to involve both tenants and other customers in housing and related services with the introduction of the Scottish Social Housing Charter (SSHC). The Tenant Participation Strategy 2020-25 (Involving Tenants - Improving Services) replaces the previous strategy and is the main source of information regarding tenant participation; it outlines opportunities to participate in the monitoring and development of the housing service. The aim of this strategy is to continue to develop and improve how the council communicates with tenants and residents and ensure opportunities are provided for participation and involvement that are accessible to all. Latest version: Strategy for 2020-25 approved in February 2020. Review timeframe: Strategy will be reviewed and updated when it reaches the end of its current life. Assessment: The report to committee in February 2020 saw the approval of the new 5 year strategy (2020-25) and the corresponding action plan. This strategy is also available on the council’s website. An item within the Strategic Policy Framework, the Strategy is subject to a regular review and progress on the delivery of the action plan which is reported to committee annually. The Strategy will be reviewed and updated in 2025 when it reaches the end of its current life. RAG: Chief Officer (Housing Management) ✓ ✓ ✓ Page 80 of 116
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47 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 • Tenant Participation Strategy on the council’s website: Involving Tenants - Improving Services • Update on implementation - September 2021: link to file • Tenant Participation Strategy 2020-25 - February 2020: link to file Members induction A range of materials are available through various platforms. Report to committee in March 2022 updated on the work undertaken to develop appropriate arrangements for the induction and training of Elected Members following the May 2022 local government elections. This also outlined the induction programme for May and June 2022: link to file. Latest version: Full induction programme in place for new and returning Elected Members following the local government elections in May 2022. Review timeframe: Programme is reviewed as a matter of course in line with the local government elections timetable. New Members, following by- elections, also take part in an induction process. Assessment: Report to committee in March 2022 concluded on the review of the governance and induction and training arrangements. A full programme for the induction of Elected Members commenced immediately following the Council elections in early May and was timetabled to run for approximately 6 weeks. The take-up by Elected Members was low, and a downward trend of attendance was experienced. The Chief Executive took the decision to terminate the programme with the proviso that important aspects and subjects would be incorporated into the ongoing Elected Members training and development programme. The training and development programme is up and running with a number of sessions already completed and more planned going forward; each session is dedicated to a specific topic. This programme will continue for the duration of the council term. RAG: Chief Officer (People Resources) / Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Elected Members training and development LearnNL provides an online portal for all Elected Members training and development needs, as well as an induction programme for new Elected Members. • LearnNL: https://learnnl.learningpool.com/totara/dashboard/index.php Latest version: Learning site for Elected Members went live on LearnNL in June 2021. Review timeframe: Programme on LearnNL is reviewed for effectiveness on an ongoing basis. Assessment: The LearnNL site comprises an Elected Members development programme and provides access to a range of information, materials, e-learning, and sessions on live topics as well as the offer of 1:1s with the Training and Development team. RAG: Chief Officer (People Resources) / Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Employee Performance Review and Development (PRD) An enhancement to LearnNL in 2023 saw the introduction of myPRD - the Performance Review and Development (PRD) conversation. This focuses on the setting out of personal objectives and identifying any development opportunities which will help achieve those objectives. A range of supports are available to help employees get the most from myPRD conversations, as a member of staff or as a line manager. • LearnNL: https://learnnl.learningpool.com/course/view.php?id=1990 Latest version: June 2023 Review timeframe: As required. Assessment: As per an Internal Audit Corporate Governance report to the Audit and Scrutiny Panel in May 2023 [ link to file ], the PRD process has been reviewed and the Learn NL system functionality has been enabled to allow staff to record their PRD conversations. Following an initial pilot of the new system earlier in the year, a report was considered by the BMT in May 2023 to agree the full roll out and launch of the PRD process and supporting system. NLC announcements in June 2023 and November 2023 publicised the new PRD process on LearnNL. RAG: Chief Officer (People Resources) ✓ ✓ ✓ ✓ Employee training and development LearnNL provides an online portal for all employee training and development needs, as well as an induction programme for new staff. A calendar of activity in LearnNL supports a range of employee learning and development opportunities and a blended approach. https://learnnl.learningpool.com/login/index.php Latest version: LearnNL went live in June 2020. Review timeframe: Ongoing. Assessment: Review of learning assets and digital learning infrastructure completed and LearnNL went live in June 2020. This digital learning platform aims to improve the ability to reach and provide enhanced learning provision to all employees. Leadership and management development provision was revitalised through the LearnNL Leadership Academy which provides bespoke Chief Officer (People Resources) ✓ ✓ ✓ ✓ Page 81 of 116
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48 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 development programmes for managers to gain specific development for future leadership roles. The e-learning offer was refreshed in line with individual and organisational needs and updated mandatory e-learning modules were introduced (for data protection essentials, information security awareness, records and information management, introduction to risk management, conflicts of interest, prevent, introduction to first aid, and fire safety). The mandatory e-learning module in respect of the Employee Code of Conduct was incorporated into LearnNL in April 2023. Both the BMT and CMT have maintained ongoing oversight and management during 2023/24 in terms of employees completing the mandatory e-learning modules. An update was also considered by the Audit and Scrutiny Panel at their meeting in May 2023 [ link to file ] and the approach endorsed. RAG: Workwell NL Available to all employees, this platform provides benefits and discounts, health and well-being support, and learning and development opportunities. This is available through the following portal: https://workwellnl.co.uk/ • Viva Engage updates: link to posts • Workwell provision update - May 2021: link to file Latest version: Ongoing resource for employees. Review timeframe: As required. Assessment: Update on the work well provision reported to committee in May 2021. NLC Announcements in July 2023 provided an update in terms of the workwell provisions available through the platform. Regular updates / news articles continue to be regularly provided to staff through Viva Engage (formerly Yammer). RAG: Chief Officer (People Resources) ✓ ✓ ✓ ✓ Employee engagement and wellbeing The workforce Mental Health and Wellbeing Strategy was developed in full partnership and agreement with Trade Union Colleagues and approved in September 2019. In May 2020 the strategy was launched during Mental Health Awareness Week. Since then, efforts have continued to ensure appropriate supports have been put in place in response to the pandemic and in the aftermath. • Mental health strategy update - October 2023 : link to file • Employee mental health and wellbeing update - October 2022: link to file • Workforce mental health and wellbeing strategy - May 2021: link to file Investors in People is the internationally recognised industry standard for people management that sets out and measures the extent to which organisations are able to drive high levels of performance and employee engagement. The council’s employee engagement plan is fully aligned to the Investors in People framework. The framework is also used to benchmark council practices against those of other leading organisations. • Enhancing employee engagement, leadership, and culture to embed the future workplace and operating model - December 2021: link to file • Employee engagement and wellbeing - May 2021: link to file • Employee engagement and wellbeing - September 2020: link to file Recognising that hybrid working would apply to less than 10% of the workforce, the council implemented its first temporary hybrid working scheme (due to the pandemic) from April 2022 for an initial period of 12 months. Implementation of the scheme was based on manager, staff, and trade union consultation. Staff continued to be surveyed during the operation of the scheme with further engagement sessions held through Operational Management Team meetings: • Workplace model - December 2021: link to report This led to the development of the next steps for the hybrid working scheme which were implemented from April 2023 for 12 months. This report set out a further commitment to explore opportunities for a permanent scheme (for implementation from April 2024) to provide increased flexibility for hybrid staff while ensuring performance, productivity, and wellbeing was maintained for all staff. • Extension to the hybrid working scheme - March 2023: link to report Final changes to the hybrid working scheme were developed into a more permanent solution which was approved in February 2024. This scheme was further determined by the necessity to ensure that the productivity, motivation, and development of staff remains key to the council’s success while allowing the council to support and serve Latest version: Various. Review timeframe: As required. Assessment: The council’s workforce mental health and wellbeing strategy was approved in May 2021. An update was provided to the Joint Consultative Committee for Local Government Employees (JCC) in October 2022 and October 2023. A further update on the strategy progress and goals to 2028, including the work of service mental health groups, is scheduled to be taken to Finance and Resources Committee in cycle 3 of 2024. Reports to committee in September 2020 and May 2021 provided an update in terms of employee engagement and wellbeing. A report to committee in December 2021 confirmed that the council had met the requirements of the Investors in People Standard with accreditation awarded at silver level. Following an interim approach, the final changes to the Hybrid Working Scheme were developed into a more permanent solution which was approved by the Finance and Resources Committee in February 2024. The council is currently developing a revised employee survey approach which better aligned to the dimensions of fair work in line with the Fairer Scotland Duty and a report will be provided to Committee when this is more fully developed. This is expected to be in early 2025. This will replace the current Investors in People employee survey. RAG: Chief Officer (People Resources) ✓ ✓ ✓ ✓ Page 82 of 116
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49 Name of element or mechanism with a brief description and links to relevant documentation Current position including review timeframe and date of next update (where appropriate), with assessment and RAG status Chief Officer responsible 7 principles and 21 sub principles A B C D E F G A1 A2 A3 B1 B2 B3 C1 C2 D1 D2 D3 E1 E2 F1 F2 F3 F4 F5 G1 G2 G3 its local communities in a way that is representative of a modern and evolving local authority. Further considerations also included ensuring the council positively responds to the expectations around flexibility while taking a balanced approach as a fair employer, and the need to ensure an approach that evolves as the organisation and its current workforce develops and changes, and ensure an approach that supports the council to build and maintain a strong workforce for the future - not just in the short-term, but also in the medium and longer-term. • Hybrid working scheme - February 2024: link to report Page 83 of 116
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☒ Yes ☐ No Ref KH/SL Date 27/06/24 Annual Governance Statement 2023/24 From Katrina Hassell, Chief Officer (Business and Digital) E-mail HassellK@northlan.gov.uk Telephone 07903 096 121 Executive Summary The Audit and Scrutiny Panel is aware that the council is required to produce an Annual Governance Statement in line with the Local Authority Accounts (Scotland) Regulations 2014. This Statement requires to be included within the council’s Annual Accounts and is subject to review by the external auditors as part of their year-end Annual Audit Report (AAR) process. The Annual Governance Statement for 2023/24, attached as Appendix 1, outlines the council’s governance arrangements for the last financial year and demonstrates how the council complies with the Delivering Good Governance in Local Government: Framework (2016). It also supports the council’s Best Value duty in terms of securing continuous improvement. The Annual Governance Statement has been prepared with evidence gathered from 11 different sources of assurance. This includes the annual opinion from the Acting Chief Officer (Audit and Risk), the annual Assurance Certificate / Checklist from each Chief Officer (for which new arrangements were implemented for the 2023/24 year end process in line with Internal Audit recommendations), and the annual review of the Strategic Governance Framework and update to the elements and mechanisms in its supporting review programme. The annual Internal Audit opinion from the Acting Chief Officer (Audit and Risk) on the council’s internal control systems states that “reasonable assurance can be placed on the adequacy and effectiveness of the council’s framework of governance, risk management, and internal control for the year ended 31st March 2024”. The Annual Governance Statement for 2023/24 is now presented herewith for the consideration of the Audit and Scrutiny Panel in line with the Panel’s role “to 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”. Recommendations It is recommended that the Audit and Scrutiny Panel: Item 4 Page 85 of 116
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1. Background 1.1 The production of the council’s Annual Governance Statement is underpinned by statute through the Local Authority Accounts (Scotland) Regulations 2014: • Regulation 5(2) requires an authority to conduct a review at least once in each financial year of the effectiveness of its system of internal control. • Regulation 5(3) states that the findings from the review at 5(2) “must be considered at a meeting either of the local authority or of a committee of the local authority whose remit includes audit or governance functions”. • Regulation 5(4) requires that for a local authority in Scotland the statement is an annual governance statement. • Regulation 5(5) states that the annual governance statement must be signed by the Chief Executive and Leader of the Council. 1.2 Compliance with the legislation also ensures the council demonstrates its commitment to the good governance principles as set out in the Delivering Good Governance in Local Government: Framework (2016) and accompanying Guidance Notes for Scottish Local Authorities (2016) published by Chartered Institute of Public Finance and Accountancy (CIPFA) in association with the Society of Local Authority Chief Executives (SOLACE). 1.3 The essence underpinning the CIPFA Delivering Good Governance in Local Government: Framework is that local government develops and shapes its own approach to governance, taking account of the environment within which it operates. Within this context, it is therefore up to each local authority to: • Set out its commitment to the principles of good governance outlined in the CIPFA Delivering Good Governance in Local Government: Framework. • Determine its own governance arrangements, or local code, underpinned by these principles. • Ensure that the local code operates effectively in practice. 1.4 To demonstrate the commitment to, and compliance with, the CIPFA Framework the council is required to test its governance arrangements (local code) by carrying out the undernoted. This further supports the evidence base for the annual review referred to in paragraph 1.1 and thereby the production of the Annual Governance Statement. • Reviewing existing governance arrangements once a year to ensure that the local code operates effectively in practice. (1) Consider and note the Annual Governance Statement for 2023/24, and (2) Confirm the inclusion of the assurance statement regarding the management of the risk of fraud and corruption in the Annual Governance Statement for 2023/24, as set out in paragraphs 2.5 and 2.6. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 86 of 116
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• Maintaining an up-to-date local code of governance that takes into account the environment within which it operates and includes arrangements for ensuring ongoing effectiveness. • Reporting publicly on compliance on an annual basis, including how the governance arrangements have been monitored for effectiveness in the year and identifying planned changes. 1.5 The council’s own governance arrangements, or local code, is set out in the Strategic Governance Framework. The accompanying report on the Audit and Scrutiny Panel agenda today details the process in place for annual review, assessment, assurance, and reporting purposes and the role the Strategic Governance Framework has as one of the 11 sources of assurances that informs the production of the Annual Governance Statement. 1.6 In line with the regulations set out in paragraph 1.1 and the good governance requirements outlined in paragraph 1,4, this report presents the Annual Governance Statement for 2023/24 to ensure due consideration by the Audit and Scrutiny Panel in line with the Panel’s remit “to 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”. 1.7 As part of the Annual Accounts for 2023/24, the Annual Governance Statement for 2023/24 is presented herewith also for due consideration by the Audit and Scrutiny Panel in line with the requirement set out in paragraph 1.1 to ensure that the findings from the annual governance review are “considered at a meeting either of the local authority or of a committee of the local authority whose remit includes audit or governance functions”. Following Audit and Scrutiny Panel consideration and integration within the Annual Accounts, the Annual Governance Statement will be signed off by the Chief Executive and Leader of the Council. 2. Annual Governance Statement 2023/24 Evidence base 2.1 The Annual Governance Statement (attached in Appendix 1) has been prepared with evidence gathered from 11 different sources of assurance to ensure that it properly reflects the extent and effectiveness of the council’s governance arrangements during 2023/24. The 11 sources of assurance are listed below. Annual Governance Statement sources of assurance 1) Compliance with the CIPFA Position Statement: Audit Committees in Local Authorities (2018). 2) Compliance with the CIPFA Statement on the role of the Head of Internal Audit in public service organisations (2019). 3) Compliance with the CIPFA Statement on the role of the Chief Financial Officer in Local Government (2016). 4) Compliance with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014). 5) Compliance with the Public Sector Internal Audit Standards (PSIAS). 6) Chief Officers year end good governance assurance certificates and checklists. 7) Arm’s length external organisations (ALEOs) year end good governance assurance certificates and checklists. 8) Annual review and update of the local code of governance review programme (i.e. the Strategic Governance Framework). 9) The Annual Audit Report (AAR) process undertaken by the external auditors, together with Page 87 of 116
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the national approach to auditing Best Value through thematic audit work. 10) Findings from other audit, scrutiny, or inspection bodies in relation to service specific assessments. 11) The role of the council’s senior management team structure of meetings in respect of good governance, assurance, and continuous improvement. 2.2 While the sources of assurance listed in the table above have traditionally provided the evidence base for the Annual Governance Statement, a new development implemented for 2023/24 has been to enhance how the evidence for each of these sources of assurance is reported in the Annual Governance Statement. This new development aims to better evidence the process through which improvement actions and/or future planned developments in relation to the council’s governance arrangements and systems of internal control have been identified and thus support a specific Internal Audit recommendation following a review of corporate governance in 2023. 2.3 In addition, following research to review the Annual Governance Statements for all other 31 local authorities in Scotland, the structure of the council’s Annual Governance Statement has been enhanced for 2023/24 and improvements in this respect are summarised below. • Section 1 - Comprises a new dedicated section which explains the purpose of the Annual Governance Statement so that the extent to which it is required to demonstrate the council’s compliance in line with legislation and the CIPFA principles of good governance is clear to the reader. This section now also specifically depicts the 7 good governance principles (A to G) from the national CIPFA Framework. • Section 2 - This comprises a reconfiguration of the section entitled scope of responsibility to ensure that there is a sound system of governance in place. This aims to clearly identify the specific obligations of the council (and the organisations consolidated in the Group Accounts) in testing its governance arrangements against the principles in the CIPFA Framework through the annual review process. • Section 3 - This section reframes the local context within which the council operates in order to demonstrate alignment of improvements in the council’s governance arrangements with achievement of the vision set out in The Plan for North Lanarkshire (and through the Programme of Work and its supporting governance arrangements in order to drive forward achievement of the organisation’s strategic objectives). • Section 4 - This collectively captures all information regarding the review process into a section specifically entitled annual review - to assess the effectiveness of the council’s governance arrangements and systems of internal control through 11 sources of assurance that incorporate improvements from current and previous years issues. Each of the 11 sub sections sets out the corresponding evidence against each source of assurance. • Section 5 - As previous years, this section focuses on the certification of assurance on the level of assurance that the governance arrangements provide. Certification of assurance 2.4 The evidence obtained through the 11 sources of assurance listed in paragraph 2.1 above - and presented in Appendix 1 - and the results of these processes, are considered sufficient to support the Chief Executive and the Council Leader signing the Annual Governance Statement (after due consideration by the Audit and Scrutiny Panel) and stating that reasonable assurance can be placed on the adequacy and effectiveness of the corporate governance systems operating within the council, and Page 88 of 116
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that the council complies with relevant corporate governance principles in all significant respects. 2.5 The evidence presented also supports the incorporation of a specified Fraud Statement which - in line with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014) - specifically requires to be “approved by the governing body and signed by the person responsible for signing the annual governance report”. • As well as looking for compliance in terms of developing a strategy and identifying the risks (which is evidenced in the Strategic Governance Framework), the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014) also requires responsibility to be acknowledged. • In this respect the Internal Audit annual report 2023/24 from the Acting Chief Officer (Audit and Risk) specifies that Internal Audit “has responsibility for investigating, as appropriate, alleged frauds and irregularities brought to our attention in accordance with the council’s counter fraud policy. Where detailed work is carried out, the findings are reported to the Chief Executive and/or the relevant Chief Officer with recommendations made which are designed to address any weaknesses identified. Such work is reported to the [Audit and Scrutiny] Panel, as appropriate, in line with the approved Internal Audit reporting protocol which forms part of the Internal Audit Charter.” • The Internal Audit annual report 2023/24 from the Acting Chief Officer (Audit and Risk) has confirmed that “Audit investigations of suspected fraud and/or irregularities are reported to the [Audit and Scrutiny] Panel in line with the agreed Internal Audit reporting protocol. Apart from the whistleblowing allegations received by Audit Scotland regarding the existing Mears LLP housing and property maintenance contract, details of which were reported as part of the routine progress report at the May 2024 Panel, I am pleased to be able to report that there were no other weaknesses, material frauds or irregularities identified during 2023- 24 that I require to bring to your attention.” 2.6 Having considered the information presented in paragraph 2.5 above to support the council’s arrangements to manage the risk of fraud and corruption and, in line with the CIPFA Statement, the Audit and Scrutiny Panel are asked to approve the following statement for inclusion in the Annual Governance Statement prior to formal sign off by the Chief Executive and Leader of the Council: - “Having considered all the principles, I am satisfied that the organisation has adopted a response that is appropriate for its fraud and corruption risks and commits to maintain its vigilance to tackle fraud”. Next steps 2.7 As part of the annual process, the Annual Governance Statement for 2023/24 will be reported publicly through the website to demonstrate the council’s compliance with the principles of good governance. Information will also be included to demonstrate that the governance arrangements have been monitored for effectiveness in the year and planned changes have been identified to ensure continuous improvement. 3. Measures of success 3.1 Measures of success include the production of the council’s Annual Governance Statement in line with the Local Authority Accounts (Scotland) Regulations 2014 and Delivering Good Governance in Local Government: Framework (2016). This includes that the Annual Governance Statement is reviewed by the Business Page 89 of 116
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Management Team and Corporate Management Team (in line with their respective governance, strategic oversight, assurance, and continuous improvement roles) who agree its submission to the Audit and Scrutiny Panel, and that it is approved by the Audit and Scrutiny Panel, incorporated into the Annual Accounts, signed off by the Chief Executive and Council Leader, and reported publicly on the council’s website. 4. Supporting documentation 4.1 Appendix 1 - Annual Governance Statement 2023/24 Katrina Hassell Chief Officer (Business and Digital) 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? The Delivering Good Governance in Local Government: Framework (2016) positions the attainment of sustainable economic, societal, and environmental outcomes as a key focus of governance processes and structures. As such this is reflected in the Strategic Governance Framework. 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? Development and publication of the Annual Governance Statement ensures the council complies with the CIPFA Statement on the Role of the Chief Financial Officer in Local Government (2016) in terms of financial controls. 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 90 of 116
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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? Production of the council’s Annual Governance Statement is underpinned by statute through the Local Authority Accounts (Scotland) Regulations 2014, as noted in paragraph 1.1. 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 scheduled) 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 Delivering Good Governance in Local Government: Framework (2016) positions the attainment of sustainable economic, societal, and environmental outcomes as a key focus of governance processes and structures. As such this is reflected in the Strategic Governance Framework. 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? Through publication of the Annual Governance Statement on the website, the council will ensure it meets the requirements to report publicly on compliance with the principles of good governance. 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? Development and publication of the Annual Governance Statement in line with the Local Authority Accounts (Scotland) Regulations 2014, the principles set out within Page 91 of 116
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the Delivering Good Governance in Local Government: Framework (2016), and in accordance with the Best Value duty, contribute towards 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 92 of 116
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Appendix 1 Annual Governance Statement 2023/24 1. Purpose 1.1 The council is required to produce an Annual Governance Statement in line with the Local Authority Accounts (Scotland) Regulations 2014: • Regulation 5(2) requires an authority to conduct a review at least once in each financial year of the effectiveness of its system of internal control. • Regulation 5(3) states that the findings from the review at 5(2) “must be considered at a meeting either of the local authority or of a committee of the local authority whose remit includes audit or governance functions”. • Regulation 5(4) requires that for a local authority in Scotland the statement is an annual governance statement. • Regulation 5(5) states that the annual governance statement must be signed by the Chief Executive and Leader of the Council. 1.2 The Annual Governance Statement is required to outline the council’s governance arrangements for the last financial year and demonstrate how the council complies with the principles of good governance. The principles of good governance in the public sector are defined by the International Framework: Good Governance in the Public Sector which was jointly developed by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the International Federation of Accountants (IFAC). The International Framework offers the definition that: “Governance comprises the arrangements put in place to ensure that the intended outcomes for stakeholders are defined and achieved.” 1.3 The fundamental function of good governance is to ensure that governing bodies (and individuals working for public sector entities) achieve their intended outcomes while acting in the public interest at all times. Acting in the public interest implies primary consideration of the benefits for society, which should result in positive outcomes for service users and other stakeholders, and requires: A. Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law. B. Ensuring openness and comprehensive stakeholder engagement. In addition to the overarching requirements for acting in the public interest (as noted in principles A. and B. above), achieving good governance also requires effective arrangements for: C. Defining outcomes in terms of sustainable economic, social, and environmental benefits. D. Determining the interventions necessary to optimise the achievement of the intended outcomes. E. Developing the entity’s capacity, including the capability of its leadership and the individuals within it. F. Managing risks and performance through robust internal control and strong public financial management. G. Implementing good principles in transparency, reporting, and audit, to deliver effective accountability. 1.4 The principles in the International Framework have been interpreted for the local government environment. This is set out in the Delivering Good Governance in Local Government: Page 93 of 116
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Framework (2016) and accompanying Guidance Notes for Scottish Local Authorities (2016) which was published by CIPFA in association with the Society of Local Authority Chief Executives (SOLACE): • The Delivering Good Governance in Local Government: Framework details the 7 principles within the International Framework along with a set of 21 supporting sub-principles and 91 examples of behaviours and actions which CIPFA consider demonstrate good governance. 1.5 In practice, governance comprises the combination of structures, strategies, policies, plans, frameworks, systems, processes, rules, codes, procedures, cultures, and values that are used to direct, control, and manage a local authority’s operations and activities. This includes political, economic, social, environmental, legal, and administrative structures and processes, and other arrangements, as encapsulated in the principles defined in the Delivering Good Governance in Local Government: Framework. These define roles and responsibilities and accountabilities and establish mechanisms to enable a local authority to pursue its vision effectively and ensure that the vision is underpinned with control and the management of risk. The list of items referred to in this paragraph are hereinafter referred to as elements and mechanisms. Through these elements and mechanisms the overall aim is for the council to ensure: • Resources are directed in accordance with agreed policy and according to priorities, and in line with corporate project management procedures. • There is sound and inclusive decision making. • There is clear accountability for the use of those resources in achieving defined outcomes for service users and local communities. 1.6 The purpose of the Annual Governance Statement is therefore to report publicly on the extent to which the council’s arrangements are consistent with the principles in the Delivering Good Governance in Local Government: Framework. This includes how the effectiveness of the governance arrangements have been monitored and evaluated over the previous year, and any planned changes for the year ahead. 1.7 The Annual Governance Statement set out in this document therefore comprises the following sections: • Section 2: Scope of responsibility - to ensure that there is a sound system of governance in place. • Section 3: The local context - which takes into account the economic, societal and environmental aspects within which the council operates and the improvements made in this respect to drive forward achievement of the organisation’s strategic objectives. • Section 4: Annual review - to assess the effectiveness of the council’s governance arrangements and system of internal control through 11 sources of assurance that incorporate improvements from current and previous years issues. • Section 5: Certification of assurance - on the level of assurance that the governance arrangements provide. 2. Scope of responsibility - to ensure that there is a sound system of governance in place 2.1 North Lanarkshire Council is committed to ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently, and effectively. 2.2 As such, the council has adopted the principles and requirements of the Delivering Good Governance in Local Government: Framework (2016) and accompanying Guidance Notes for Scottish Local Authorities (2016) in order to ensure its governance arrangements remain sound and the highest standards continue to be met. 2.3 The council is required, in line with the Delivering Good Governance in Local Government: Framework, to test its governance arrangements (local code) against these principles by: • Maintaining an up to date local code of governance that takes into account the environment Page 94 of 116
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within which it operates and includes arrangements for ensuring ongoing effectiveness. • Reviewing existing governance arrangements once a year to ensure that the local code operates effectively in practice. • Reporting publicly on compliance on an annual basis, including how the governance arrangements have been monitored for effectiveness in the year and identifying planned changes. 2.4 As such, the council has: a) Set out its local code of governance in the Strategic Governance Framework. The Strategic Governance Framework was initially approved by the Audit and Scrutiny Panel in February 2020 and has been subject to an annual review and refresh process annually thereafter. The Strategic Governance Framework sets out the elements and mechanisms which form the council’s local code of governance, and which demonstrate North Lanarkshire Council’s commitment to the principles of good governance. b) A well-established assessment process which reviews the council’s governance arrangements and systems of internal controls on an annual basis. This assessment - which provides the evidence that informs the Annual Governance Statement - aims to: • Ensure the council can demonstrate ongoing compliance with the principles in the Delivering Good Governance in Local Government: Framework and that the governance arrangements operate effectively in practice. • Identify any improvement actions and/or future planned developments required in relation to the council’s key governance arrangements and continuous improvement activity. c) A well-established annual process that enables Chief Officers and Elected Members to discharge their duties through their specific responsibilities for determining and implementing the council’s governance arrangements, ensuring the local code (the Strategic Governance Framework) is reviewed and assessed on an annual basis, identifying any improvement actions and/or future planned developments required in relation to key governance arrangements to ensure continuous improvement, and ensuring that the outputs from the annual assessment are reported publicly (to the Audit and Scrutiny Panel and through the council’s website). 2.5 The council also has a duty under the Local Government in Scotland Act 2003 to demonstrate Best Value by securing continuous improvement in performance. Good governance is central to meeting Best Value obligations as effective governance and accountability arrangements, with openness and transparency in decision-making, schemes of delegation, and effective reporting of performance are essential for taking informed decisions and ensuring effective scrutiny of performance and stewardship of resources. 2.6 As the council has a controlling interest in a number of companies and a minority interest in joint ventures, the Code of Practice on Local Authority Accounting requires (where significant) the summary Group Accounts to be included within the Annual Accounts, showing the financial position of the council and its subsidiaries plus the investments in associates and interests in joint ventures as a single economic entity. As such, the Annual Governance Statement also covers the organisations consolidated in the council’s Group Accounts. 3. The local context - which takes into account the economic, societal, and environmental aspects within which the council operates and the improvements in this respect to drive forward achievement of the organisation’s strategic objectives. 3.1 The Plan for North Lanarkshire sets the long-term strategic direction for the council, partners, and other stakeholders and, most importantly, for each unique local community and the people who live, learn, work, invest, and visit within North Lanarkshire. It’s a Plan with a shared ambition of inclusive growth and prosperity for all and a fairer distribution of wealth across all local communities. The Plan provides a very clear and compelling narrative for the shared ambition which the council (and partners) are working towards, a narrative that has become well embedded throughout the strategic management, financial decision making, strategy and policy Page 95 of 116
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development, corporate governance approaches, and service delivery across the organisation. 3.2 The vision was shaped by the area’s demographic, social, and economic profile which at the time showed a positive picture in terms of economic growth, inward investment, employment, and educational attainment, but still unacceptably high levels of deprivation and child poverty and clear areas of inequity and inequality. This meant that not all North Lanarkshire’s people were sharing equally in the improving picture, and there was an element of social exclusion across some towns and communities. A suite of 28 high level health check indicators was therefore identified to collectively provide the context for North Lanarkshire as a place. Since The Plan for North Lanarkshire was established in 2019, these indicators have continued to provide a robust, consistent, and independent way of assessing progress. The most recent results were reviewed by the Policy and Strategy Committee in March 2024, this reported that 50% of the indicators show improvement over the period of The Plan for North Lanarkshire and, as such, the suite of indicators continue to play an important role in informing the strategic planning process through the Programme of Work. 3.3 As the delivery vehicle for the shared ambition, the Programme of Work provides a roadmap for work across council services and with partners and has been instrumental in stabilising the strategic direction of the council, while allowing for appropriate flexibility in the operational delivery of many complex inter-connected programmes, projects, and plans to ensure a dedicated focus on improvement, change, and delivering services that improve the lives of local people. An annual review process enables a recurring and dynamic approach to realising the shared ambition and has ensured that the Programme of Work has continued to remain current, relevant, and deliverable. This also enables delivery of the long-term vision to be informed by a process that is framed within the context of the local demographic, social, and economic profile that shaped The Plan for North Lanarkshire, as well as the latest national policy changes and developments. This process also ensures a targeted and cohesive approach to establishing the programmes, projects, and activities required to achieve the intended outcomes. 3.4 The fifth iteration of the Programme of Work (to 2028) was approved in March 2023. This longer- term approach reflected the need to reframe the Programme of Work in line with the latest North Lanarkshire context presented through the suite of 28 health check indicators. This evidence base shows positive trends in a number of key economic indicators (such as gross weekly pay, people claiming employment related benefits, and growth in North Lanarkshire’s economy), as well as significant improvements in educational attainment for all pupils gaining 5+ awards at level 6 and for pupils living in the 20% most deprived areas, leavers achieving a positive post school destination, and school exclusion rates. These trends were considered particularly significant given the extent of the impact of the pandemic that is evident in certain indicators. However, the trends also show that challenges remain, reiterating the need for a new approach to the development of the fifth iteration of the Programme of Work. This was considered crucial to ensure a heightened and more strategic focus on not only sustaining the economic and community aspects, but also on ensuring a more targeted approach to improving social conditions and outcomes. 3.5 While 2023/24 may have seen a more stable year for council operations compared to recent years, recovery from pandemic changed the landscape within which The Plan for North Lanarkshire requires to be delivered. The impact of inflationary pressures (such as rising contract costs, availability of suppliers and service providers, increasing costs and availability of supply chain materials, and escalating energy prices) has also had implications on the ability of the council to maintain a seamless approach to delivering services and progressing capital programmes that seek to mitigate against the range of different and complex economic, social, and health issues that exist. Locally, inflationary pressures created significant cost of living implications for the people and communities of North Lanarkshire, exacerbating conditions for those in the most vulnerable situations. As such, this backdrop was critical in informing development of the delivery priorities in the Programme of Work to 2028. 3.6 The Programme of Work to 2028 approved in March 2023 was followed by a supporting single integrated one council Delivery Plan reported to the Policy and Strategy Committee in March 2024. This is underpinned by a governance framework which sets out, inter alia, roles and responsibilities, alignment across other corporate processes, and the corresponding monitoring, Page 96 of 116
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reporting, internal controls, and quality assurance arrangements. 3.7 Programme of Work achievements to date (reported to the Policy and Strategy Committee in March each year) highlight developments that are key to creating the economic, social, and community conditions that will enable local people and communities (and the place that is North Lanarkshire) to thrive. These focus on the investment made to establish the solid foundations required to support the place based ambition and show how the one place one plan one council approach and ongoing leadership and commitment to the Programme of Work are making a difference: • New hubs are in place at the heart of local communities to support a much wider offering to people and communities with more direct access to the services they need and access to earlier, more responsive, and more integrated whole family support. • The range and affordability of homes has been increased through the provision of high- quality housing. • Environmental enhancements have been delivered to support added benefits to general health and wellbeing, social inclusion, physical and mental health, and public access. • Transformations to town centres are starting to reshape North Lanarkshire to provide modern, attractive, and multi-use centres fit for local people today and in the future. • Job creation has been expanded by accelerating and attracting investment to create more and new business opportunities. • Pathways have been built and skills and knowledge enhanced to smooth the transition to further education, training, or employment. • This is all supported by more joined up transport links, an enhanced digital infrastructure, and a network of more active travel routes for pedestrians and cyclists, all of which are boosting the local economy and securing improved opportunities and outcomes for employment, education, housing, and leisure, and creating a place where people want to Live, Learn, Work, Invest, and Visit. 3.8 The council’s commitment made in 2022 - for itself and the area of North Lanarkshire - in respect of achieving net zero through the Action on Climate Together Plan, aims to further support delivery of the place based ambition and an update on this was reported to the Environment and Climate Change Committee in February 2024. 3.9 The role of Elected Members is key to ensuring the continuing and long-term commitment to delivering The Plan for North Lanarkshire through the Programme of Work and ensuring strategic oversight through the Policy and Strategy Committee in terms of its ongoing development, co- ordination, and monitoring. To support this role, the Policy and Strategy Committee maintain oversight of the following in relation to the Programme of Work: • An annual review process - to ensure the council continues to (a) be able to adapt the Delivery Plan to changing circumstances, (b) absorb the impact of major unpredictable situations in order to keep plans relevant and the timescales therein realistic, and (c) assess incremental changes and impacts arising from updates to the results for the 28 Health Check Indicators. • Three related annual reports - that look back at the achievements to date, that review the current North Lanarkshire context through the 28 Health Check Indicators, and that look forward at future plans (following the annual review process). These are presented to the Policy and Strategy Committee in cycle 1 each year. • Six monthly interim reporting - to enable the Policy and Strategy Committee to maintain their strategic oversight and monitoring role for The Plan for North Lanarkshire. 3.10 Sitting alongside the Programme of Work - as a key aspect of the council’s strategic planning framework - is the Strategic Policy Framework. This specifies the hierarchy of strategies, policies, and plans which underpin delivery of the long-term vision set out in The Plan for North Lanarkshire and ensures that strategy and policy remain connected to delivery in order to collectively facilitate a co-ordinated approach to identifying the resources and working practices needed to support delivery of the long-term vision. Through a structured approach, the Strategic Policy Framework aims to ensure that strategies, policies, and plans are formulated, developed, implemented, monitored, and reviewed in a consistent and transparent manner across the Page 97 of 116
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council. The annual update to the Strategic Policy Framework was approved by the Policy and Strategy Committee in March 2024. The supporting review programme ensures each of the strategies, policies, and plans are up to date, reviewed and updated at an appropriate interval, and reported to the relevant committee. A guidance document accompanies the Strategic Policy Framework to support the development and monitoring processes for strategies, policies, and plans, and ensure ongoing openness and engagement through stakeholder consultation. • An improvement planned for 2024/25 is to undertake a lite touch assessment on all strategies, policies, and plans updated during the year to ascertain compliance with the Strategic Policy Framework guidance. The outputs from this assessment will be built into the annual position statement update to the Audit and Scrutiny Panel in line with their role to provide an “independent review of the council's governance, risk management, performance, and control frameworks”. This will also support implementation of the improvement action identified by Audit Scotland in their Best Value thematic work which states that “the council should look to improve its existing processes for engaging Elected Members on the overall strategic planning process”. 3.11 Key to evaluating the success of The Plan for North Lanarkshire and assessing delivery of the Programme of Work (while ensuring each stage of delivery towards achieving the overall vision is appropriately aligned, planned, guided, implemented, monitored, and governed) are six inter- related corporate frameworks that aim to maintain a corporate one council approach across the organisation: • Strategic Policy Framework • Strategic Governance Framework • Strategic Performance Framework • Strategic Self-Evaluation Framework • Project Management Framework • Framework for Demonstrating Improved Outcomes for Communities 3.12 To ensure these frameworks remain aligned to The Plan for North Lanarkshire and Programme of Work, all are on a regular review and refresh programme. This also helps the council to ensure it is proactive in responding to social, economic, and environmental trends and changes in legislation and governance, as well as the broad range of national policy changes and new developments. Updates in respect of these frameworks are captured in the Strategic Governance Framework review programme each year. This includes the following: Strategic Self-Evaluation Framework • Aligned to the seven themes in the national Best Value guidance, the council’s Strategic Self- Evaluation Framework is framed around three questions (How well are we doing? How do we know? and How can we do better?) and supported by a rolling review programme. This approach provides a regular mechanism to assess the council’s functions and activities and identify areas for improvement through a single strategy for improvement that (a) is in line with the Best Value duty to secure continuous improvement, and (b) ensures self-evaluation is undertaken within the context of fulfilling the vision set out in The Plan for North Lanarkshire. • The Strategic Self-Evaluation Framework is reviewed and refreshed annually. The update in October 2022 introduced a corporate approach to Options Appraisal - while the use of options appraisal was already widespread across the council, a corporate approach was formalised at this time to ensure that the outcomes from such exercises continue to provide the relevant assurances that service provision is efficient and effective and represents value for money, and that decisions made remain consistent with the strategic direction for the council, as set out in The Plan for North Lanarkshire. • Minor changes to the latest update to the Strategic Self-Evaluation Framework and rolling review programme in February 2024 ensured ongoing alignment with the new national approach to auditing Best Value through thematic audit work as well as ongoing compliance with Best Value guidance in terms of the council using self-evaluation to identify areas for improvement. • Since the Strategic Self-Evaluation Framework and rolling review programme was formally established (and approved by the Audit and Scrutiny Panel) in 2021, nine self-evaluation exercises have been undertaken. A summary of each exercise has been included in Page 98 of 116
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previous year’s Annual Governance Statements and an annual monitoring process is in place to capture the status of implementing the improvement actions arising from each self- evaluation exercise: - The nine self-evaluation exercises resulted in areas for improvement being identified and captured in supporting improvement plans. In general, these aimed to further strengthen existing arrangements, rather than address any significant issue in terms of effectiveness. - The improvement actions arising from the 2023 self-evaluations (in terms of the Audit and Scrutiny Panel and how effectively it is discharging its role, and of Partnership / Community Board effectiveness in line with their role in improving outcomes for local people and communities) are in the process of being delivered and are scheduled to be completed during 2024/25. - The remaining improvement actions from the Data Governance Board self-evaluation undertaken in 2021 have been integrated within the senior information risk owner annual performance and assurance process for implementation and monitoring. • A self-evaluation scheduled to be undertaken in 2025 aims to support the governance arrangements for the Programme of Work to 2028 and will focus on the operation of the supporting Strategic Boards following their implementation in 2023 to ensure they are effective in supporting delivery of the council’s long-term vision in The Plan for North Lanarkshire. Project Management Framework • A review and refresh of the council’s project management model in 2022 was supported by a self-evaluation exercise. This was required to ensure the council’s arrangements remained fit for purpose and able to effectively support delivery of The Plan for North Lanarkshire and followed recommendations arising from Internal Audit reports on managing strategic change and the governance of capital projects. The review was also considered necessary in light of the changes in the council’s operating environment since the implementation of the model in 2018. These changes had led to a rapid evolution of programmes and projects across the council, as well as increasing complexities in the delivery of many of these, and a growing need for good governance and good project management to set up and deliver a wider range of projects at pace and scale (particularly during the pandemic), and ensure these are well- directed, delivered to time, cost, and quality targets, and provide the expected benefits and improved local outcomes. • To support the review, a group was established comprising officers from across council services with practical on the ground experience of project management in both construction and non-construction projects. Following work to collate and analyse the information collected through the review, five themes on areas for improvement consistently emerged. Three of the areas for improvement related to the development of the refreshed Project Management Framework which was completed and published across the council in December 2022. • One area for improvement related to ongoing training, staff learning and development, and awareness raising in line with the refreshed Framework for which a programme was launched council wide in March 2023. A series of full day training courses (aimed at employees with no project management experience, new to the council, or for those who required a refresher) and half day training courses (aimed at employees with some project management experience, or for those who are currently responsible for delivering on council projects) has continued throughout 2023 and is in place to the end of 2024. The remaining area for improvement relates to enhancing opportunities for more collaboration, sharing, and learning for which a Yammer site has been established for further development and roll out later in 2024. • Delivery of The Plan for North Lanarkshire is subject to a set of Quality Assurance arrangements in line with the corporate Project Management Framework. These arrangements have been aligned to the governance supporting the new Programme of Work to 2028 to ensure the council can (a) demonstrate compliance with the Project Management Framework, and (b) monitor delivery of projects and activities supporting the Programme of Work. • The review programme to assess compliance with the Project Management Framework was finalised and implemented during 2023 with an overview of the results and findings arising following the analysis of the completed baseline self-assessment forms informing the Page 99 of 116
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improvement plan and next steps in order to progress the areas for improvement identified through the review programme during 2024. • As 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, a report to the Audit and Scrutiny Panel in February 2024 provided an initial overview in this respect in advance of future assurance reports that will support Elected Member oversight in terms of the quality assurance process and review programme for the Project Management Framework. Strategic Performance Framework • The Strategic Performance Framework is supported by a Performance Reporting Schedule which sets out the performance reporting, monitoring, review, and scrutiny arrangements for The Plan for North Lanarkshire by way of a reporting schedule and set of non-negotiable standards. During 2023/24, information regarding items on the Performance Reporting Schedule (i.e. Chief Officers six monthly performance reviews at service committees, service specific reporting to meet business and/or statutory obligations, and corporate reporting) was made available to the Audit and Scrutiny Panel through quarterly performance assurance reports in order to support the Panel’s scrutiny and strategic oversight role. • Since its implementation the Performance Reporting Schedule has been regularly reviewed and updated. The latest update, reported to the Audit and Scrutiny Panel in February 2024, differs to previous years in that it also incorporates Programme of Work performance management and progress monitoring. This follows work to update the Strategic Performance Framework and develop Delivery Plans and performance measures for each of the seven Programme of Work priorities, while ensuring further alignment and formalisation of the corporate arrangements that support monitoring and governance of The Plan for North Lanarkshire. • During 2023 there were 83 performance reports produced in line with the Performance Reporting Schedule. A very small number of reports did not make the scheduled reporting cycle, but clear rationales were provided by way of explanation that were found to be logical and sensible, and an agreement was reached on an appropriate subsequent reporting cycle. It should be noted that as the Reporting Schedule is developed only once a year as at a moment in time, it is expected that national changes or changes in local operating contexts and priorities may have an impact on subsequent reporting requirements and dates. • During 2023/24, Chief Officers’ six-monthly reports in line with the Strategic Performance Framework followed the standard template. This ensured that all reports consistently (a) set out the current context within which the service is operating, (b) highlighted areas of good performance that could be evidenced in the accompanying data, and (c) provided 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. Moving forward, reports will be required to demonstrate that the loop has been closed in terms of implementation and monitoring of both improvement actions and subsequent performance levels. This is required to provide a clear evidence trail that demonstrates continuous improvement in performance in line with the requirements of Best Value. • The extent of the action undertaken by each audience when reviewing and scrutinising the performance information before them has been varied. Moving forward, the ask of the audience reading the report will be specifically (and appropriately) referenced in performance reports to service committees moving forward. This practice is already in place for Audit and Scrutiny Panel reports for the scrutiny function of the Panel. Specific training to be held in 2024, in relation to the scrutiny of performance, will further complement awareness raising and roles and responsibilities (as identified through the Audit and Scrutiny Panel’s self-evaluation in November 2023). • Reporting of the Local Government Benchmarking Framework (LGBF) measures were integrated into the Strategic Performance Framework when it was initially approved. This ensured appropriate alignment to The Plan for North Lanarkshire and Programme of Work, and also ensured that scrutiny did not focus on a single performance indicator which rarely provides a complete picture of performance when considered in isolation. This meant that during 2023/24 LGBF measures were integrated into reports to service committees alongside the wider suite of measures within each Chief Officers’ area of responsibility. This approach will continue to ensure that reports contain a suite of all relevant performance indicators in Page 100 of 116
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order to provide a complete picture of performance. The council’s website hosts a new dashboard for LGBF measures which was launched by the Improvement Service in 2023. This provides an easy way to view a live picture of the most up to date performance for a benchmarking measure as at a point in time. It also enables North Lanarkshire’s performance to be compared with other local authorities and the national average. Moving forward, this dashboard will be signposted in performance reports to service committees. 4. Annual review - to assess the effectiveness of the council’s governance arrangements and system of internal control through 11 sources of assurance that incorporate improvements from current and previous years issues. Sources of assurance 4.1 As noted in paragraph 2.3 above, the annual review process is an important aspect of the work undertaken each year to assess the effectiveness of the council’s governance arrangements and systems of internal control and establish the evidence base to inform the Annual Governance Statement. As such, various elements and mechanisms, and roles and responsibilities, play a key role in this process. These sources of assurance are listed below: 1) Compliance with the CIPFA Position Statement: Audit Committees in Local Authorities (2018). 2) Compliance with the CIPFA Statement on the role of the Head of Internal Audit in public service organisations (2019). 3) Compliance with the CIPFA Statement on the role of the Chief Financial Officer in Local Government (2016). 4) Compliance with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014). 5) Compliance with the Public Sector Internal Audit Standards (PSIAS). 6) Chief Officers year end good governance assurance certificates and checklists. 7) Arm’s length external organisations (ALEOs) year end good governance assurance certificates and checklists. 8) Annual review and update of the local code of governance review programme (i.e. the Strategic Governance Framework). 9) The Annual Audit Report (AAR) process undertaken by the external auditors, together with the national approach to auditing Best Value through thematic audit work. 10) Findings from other audit, scrutiny, or inspection bodies in relation to service specific assessments. 11) The role of the council’s senior management team structure of meetings in respect of good governance, assurance, and continuous improvement. Assessment of assurance 4.2 Each of the assurance sources listed in paragraph 4.1 has undergone a review and assessment process to ensure the information reported in the Annual Governance Statement reflects the most up to date position and provides the relevant assurances in respect of the council’s governance arrangements and system of internal control. A summary of these assurance assessments is noted in paragraph 4.3 below at points (1) to (11). 4.3 While individually each of these 11 sources of assurance are supported by separate processes and arrangements, collectively the provide an evidence base that is aligned in support of the one council approach that underpins implementation of The Plan for North Lanarkshire. As such, where improvements have been made during the year, or found to be required moving forward, these are highlighted within each item. 1) Compliance with the CIPFA Position Statement: Audit Committees in Local Authorities (2018). In this respect the activities and functions of the council’s Audit and Scrutiny Panel are required to reflect the standards set out in the CIPFA Statement. The Strategic Governance Framework sets out the evidence in this respect and confirms that during 2023/24 the purpose of the Audit and Scrutiny Panel, as set out in the Scheme of Page 101 of 116
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Administration (March 2024), reflects the standards set out in the CIPFA Statement in that its role is 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”. The Scheme of Administration confirms that the Audit and Scrutiny Panel is responsible for “providing an independent review of the council's governance, risk management, performance, and control frameworks, and overseeing the financial reporting and annual governance processes. It oversees the council's internal and external audit arrangements, helping to ensure efficient and effective assurance arrangements are in place. It also undertakes the scrutiny function within the council’s governance framework and undertakes in-depth examination of particular areas of policy and/or service delivery with a view to making recommendations for improvement.” The Scheme of Administration also sets out the Audit and Scrutiny Panel’s specific duties in relation to the Annual Governance Statement which is to “review the Annual Governance Statement prior to approval and consider whether it properly reflects the risk environment and supporting assurances, taking in to account Internal Audit’s opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and control.” During 2023/24, the Audit and Scrutiny Panel held its meetings as scheduled once every cycle, with a special meeting held at the end of June 2023 and the end of October 2023 to support the council in discharging its duties in respect of the year end Annual Accounts. A summary of agenda items considered by the Audit and Scrutiny Panel during the year is contained in the extract below. Summary of Audit and Scrutiny Panel agenda items during 2023/24 • Internal Audit - four progress reports following 21 audits which resulted in 62 recommendations, four follow up reports of actions previously agreed by management in response to audit recommendations, a range of follow up in-depth reports from Chief Officers in relation to audits (mandatory training, pre-employment checks, debt recovery, equality audit progress, use of teaching supply staff, and school funds and school trips), an update on the National Fraud Initiative, two reports in relation to Accounts Commission publications (the annual local government overview and local government financial bulletin), the Internal Audit annual plan, and the Internal Audit annual report and audit opinion. • Risk management - four risk management updates in respect of the Corporate Risk Register, with one report providing the updated Corporate Risk Register for 2023/24 and another report advising of a new approach to include a summary of key service risks from service risk registers to enable Elected Members to have sight of those risks with the highest residual risk scores, and one risk deep dive into raising educational attainment and closing the attainment gap. • Financial management - one report in relation to the unaudited Annual Accounts for 2022/23 and one in relation to the audited Annual Accounts for 2022/23. • External audit - with reports in relation to the Audit Scotland annual audit plan, the council’s Annual Audit Report (AAR) and accompanying year end statements, and an outcome report from the Best Value thematic audit. • Scrutiny - four reports arising from Panel member led scrutiny (in relation to supported businesses, provision of a payment solution for laundries in towers, compensation for compulsory purchase orders, and housing refurbishments), four quarterly performance assurance review reports providing a composite summary of all performance reports considered by the council committees in the previous cycle, two reports providing an assurance update in terms of the governance, financial governance, and risk management arrangements within each arm’s length external organisation (ALEO), an annual performance report in complaints handling, two updates in relation to the scrutiny work programme, an update on the new national approach to auditing Best Value, and five reports providing an update in relation to aspects of the frameworks supporting The Plan for North Lanarkshire and Programme of Work (the Strategic Governance Framework, Strategic Self- Evaluation Framework, Project Management Framework and future quality assurance role of the Panel, Performance Reporting Schedule, and the corresponding Annual Position Statement for the frameworks), and the Annual Governance Statement. A self-evaluation of the Audit and Scrutiny Panel was undertaken in 2023 and the resultant outcome report and improvement plan was approved by the Panel in November 2023. This followed an Internal Audit review in 2021 which recommended 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. Page 102 of 116
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The improvement plan set out two areas for improvement for implementation during 2024 in relation to (i) formally establishing a regular face to face learning and development programme for the Audit and Scrutiny Panel to ensure members of the Panel have the appropriate skills and knowledge and (where required) access to relevant training and resources to effectively undertake their role, and (ii) ensuring the Audit and Scrutiny Panel continues to effectively discharge its duties and can demonstrate that it adds value to the organisation. The improvement plan also noted that the Audit and Scrutiny Panel agreed to continue to evaluate the effectiveness of the Panel in discharging its duties - in line with the principles set out in CIPFAs Position Statement: Audit Committees in Local Authorities (2018), the supporting Audit Committees Practical Guidance for Local Authorities (2018) document, and the Best Value Guidance (2020) - initially through an annual self-evaluation exercise, with the frequency of follow up self-evaluations to be determined by the extent of improvements required following the 2024 self-evaluation exercise. In December 2023, the Council meeting formally agreed one of the improvement actions in respect of amending the governance arrangements and removing the scope for substitute members to attend Audit and Scrutiny Panel meetings given the importance of Panel members having appropriate training, knowledge, and understanding and recognising the role that consistency in involvement has in terms of ensuring ongoing Panel effectiveness. This improvement action aims to ensure that Members attending Panel meetings have appropriate training, knowledge, and understanding of the work of the Panel and that this is enhanced over time through ongoing and consistent involvement in the Panel’s business. 2) Compliance with the CIPFA Statement on the role of the Head of Internal Audit in public service organisations (2019). To enable the Acting Chief Officer (Audit and Risk) to fulfil the role in this respect, the council’s senior management team is required to ensure they “set out how the framework of assurance supports the Annual Governance Statement and identify internal audit’s role within it”. This assurance is provided through the Strategic Governance Framework which sets out the role of Internal Audit and depicts in a diagram the steps in the annual review process which informs the content of the Annual Governance Statement. The Strategic Governance Framework undergoes a review and refresh exercise each year to ensure it remains up to date in reflecting the council’s governance arrangements and it is reviewed and endorsed annually by the council’s senior management team. In line with the CIPFA statement, the Acting Chief Officer (Audit and Risk) has also provided an annual opinion for 2023/24 on the “overall adequacy and effectiveness of the organisation’s framework of governance, risk management, and control” through the Internal Audit annual report. In line with the Public Sector Internal Audit Standards (PSIAS), and the council’s Internal Audit Charter, the council’s senior management team (through both the Business Management Team and Corporate Management Team) considered and noted the Internal Audit annual report 2023/24 and annual opinion from the Acting Chief Officer (Audit and Risk) on 30th May 2024 and 7th June 2024 respectively. The Internal Audit annual report 2023/24 states that the annual Internal Audit opinion is unqualified and offers a generally positive view of the council’s governance and internal control arrangements. More specifically the Internal Audit annual report 2023/24 states that it is the opinion of the Acting Chief Officer (Audit and Risk) that “reasonable assurance can be placed on the adequacy and effectiveness of the council’s framework of governance, risk management, and internal control for the year ended 31st March 2024”. The CIPFA Statement considers the annual opinion from Internal Audit to be the most important output and one of the main sources of objective assurance that the Chief Executive and the council’s senior management team has to support the Annual Governance Statement. The annual Internal Audit opinion is set out in more detail in paragraph 4.3 (5) below. During 2023/24, an External Quality Assurance Review (EQAR) of the council’s Internal Audit Page 103 of 116
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function assessed compliance with the Public Sector Internal Audit Standards (PSIAS). An important element of the PSIAS is a requirement for an independent EQAR to be conducted at least once every five years and reported to key stakeholders including senior management and an audit committee; the results of the latest EQAR were reported to the Audit and Scrutiny Panel in May 2024. This includes an action plan with findings, responses, and planned actions that have been agreed by Internal Audit management for implementation during 2024/25. 3) Compliance with the CIPFA Statement on the role of the Chief Financial Officer in Local Government (2016). It is specified in this CIPFA Statement that the Annual Governance Statement is required to “address the authority’s arrangements for financial and internal control and for managing risk”. This is addressed through the annual audit opinion provided by the Acting Chief Officer (Audit and Risk), referenced in paragraph 4.3 (2) above. In this respect the annual opinion of the Acting Chief Officer (Audit and Risk) has reported in the Internal Audit annual report 2023/24 that their work “suggests that, despite the ongoing significant and increasing challenges, key financial controls and financial management arrangements continued to operate to a generally high standard within the council.” The extent of the council’s compliance in this respect (and the role of the Chief Financial Officer therein) is further demonstrated through the self-evaluation exercise (undertaken in 2022/23) which concluded that the council’s financial management practices comply with all aspects of the CIPFA Financial Management Code. The self-evaluation also confirmed that the council’s Chief Financial Officer operates in a way that is consistent with the CIPFA Statement. The improvement actions identified through this self-evaluation (to ensure future budget engagement exercises with the public and external stakeholders are more focussed so that consultation around budget setting is more meaningful, and to develop robust training for stakeholders to help build capacity, knowledge, and accountability for financial provision across the council) were fully implemented by the end of 2022/23. More recently, the external auditors Annual Audit Report (AAR) in October 2023 has continued to report positively on the council’s approach to financial management and financial sustainability. 4) Compliance with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014). This statement looks for compliance in terms of developing a strategy and identifying the risks. The Strategic Governance Framework sets out the evidence in this respect and shows that the council has a number of policies and procedures in place which are kept under review and regularly updated as required. The key policies and procedures are listed below: • Counter Fraud Policy - following a review of the council’s anti-fraud arrangements, an updated Counter Fraud Policy was approved by the Policy and Strategy Committee in September 2023. This sets out the council’s expectations (that extend to all individuals and organisations with whom it deals) in terms of acting honestly and with integrity and in safeguarding public resources. • National Fraud Initiative (NFI) - the council actively seeks to detect fraudulent activity through participating in the NFI, this is a comprehensive data matching exercise between public bodies to highlight potential frauds and errors. Internal Audit plan and co-ordinate the submission of data and investigation of matches identified. The latest report in respect of the progress made in the follow up of matches was reported Audit and Scrutiny Panel in May 2024. • Whistleblowing Procedure - an annual review process is in place in respect of the use of the procedure and to identify any amendments required to the procedure. An updated Whistleblowing Procedure was approved by the Policy and Strategy Committee in March 2023, and the outcome of the latest annual review is scheduled to be reported to Committee in June 2024. • Gifts and Hospitality and Conflicts of Interest procedures for employees - guidance in this respect was incorporated into the Employee Code of Conduct in 2018. Since then, a process has been in place whereby Chief Officers are required to submit their up to date Service Registers annually (as part of the Chief Officer’s Assurance Certificate and Checklist process) Page 104 of 116
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for independent review and reporting to the council’s senior management team. E-mail announcements (in April 2024) reminded all employees of their obligations in respect of conflicts of interest and gifts and hospitality; this also provided links to the supporting guidance and employee declaration forms. The 2023/24 review of Registers found no significant trends or issues of concern that required to be reported to the senior management team. • Employee Code of Conduct - the latest update was approved in March 2021. Findings reported in May 2023 from an Internal Audit corporate governance review show an update was underway and due to be completed by October 2023. Work is now currently underway with Chief Officers to review and update the content of the existing council Code of Conduct with a view to seeking approval of the revised policy at Committee in cycle 3 of 2024. • Code of Conduct for Chief Officers - the latest update in this respect was approved by the Policy and Strategy Committee in June 2023. The Code of Conduct for Chief Officers provides a framework within which Chief Officers of the council are expected to undertake their duties in a manner which meets the required standards for good governance. • Councillors Code of Conduct - this is approved by the Scottish Parliament and issued by Scottish Ministers. The Standards Commission for Scotland is responsible for the enforcement of the code of conduct. It also has responsibility for issuing guidance to assist local authorities and councillors about the code of conduct and also for hearing complaints about a councillor. The latest code and relevant guidance was published in December 2021 and was shared with new and returning Elected members following the local government elections in May 2022 with training provided on the content; this Code of Conduct available from the council’s website. • Information Security Policy - the latest update in this respect was approved by the Policy and Strategy Committee in June 2023. The Information Security Policy, which includes cyber security, aims to protect the council’s information systems and physical assets including supporting processes, networks, and equipment. As a biennial policy this is next scheduled to be updated in 2025. • Cyber security - a review and assessment was undertaken in 2023 through a structured format (using templates and guidance created by the National Audit Office, National Cyber Security Centre (NCSC), and the Scottish Government). This assessment - categorised as reasonable assurance - determined the council has robust and effective information governance arrangements, duly recognises the risks associated with cyber security threats, and operates practices commensurate with the good practice recommended by bodies such as the National Audit Office. The outcome report from this assessment was submitted to the Audit and Scrutiny Panel in February 2023. • Risk Management - the identification of risks is carried out in line with the council’s Risk Management Strategy (which was updated in March 2023) and through the risk for serious organised crime, fraud, and corruption which sits within the Corporate Risk Register. The Chief Officer (Legal and Democratic) - the council’s Monitoring Officer - is the identified lead for this specific risk. The CIPFA statement also requires responsibility to be acknowledged. In this respect the Internal Audit annual report 2023/24 from the Acting Chief Officer (Audit and Risk) specifies that Internal Audit “has responsibility for investigating, as appropriate, alleged frauds and irregularities brought to our attention in accordance with the council’s counter fraud policy. Where detailed work is carried out, the findings are reported to the Chief Executive and/or the relevant Chief Officer with recommendations made which are designed to address any weaknesses identified. Such work is reported to the Panel, as appropriate, in line with the approved Internal Audit reporting protocol which forms part of the Internal Audit Charter.” The Internal Audit annual report 2023/24 from the Acting Chief Officer (Audit and Risk) has confirmed that “Audit investigations of suspected fraud and/or irregularities are reported to the Panel in line with the agreed Internal Audit reporting protocol. Apart from the whistleblowing allegations received by Audit Scotland regarding the existing Mears LLP housing and property maintenance contract, details of which were reported as part of the routine progress report at the May 2024 Panel, I am pleased to be able to report that there were no other weaknesses, material frauds or irregularities identified during 2023/24 that I require to bring to your attention.” 5) Compliance with the Public Sector Internal Audit Standards (PSIAS). This requires the Chief Officer (Audit and Risk) to provide the Audit and Scrutiny Panel (and the Chief Executive and the Page 105 of 116
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council’s senior management team) with an annual summary of the work undertaken by Internal Audit and an annual independent opinion on the council’s corporate governance, risk management, and internal control arrangements. The independent and objective assurances provided by Internal Audit are designed to add value and improve the council’s operations. This in turn helps the council accomplish its strategic ambitions by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of the council’s risk management, internal control, and governance processes. The council’s internal audit arrangements are consistent with the CIPFA Statement on the role of the Head of Internal Audit in public service organisations (2019). Internal Audit activity is planned to enable an independent opinion to be given by the Chief Officer (Audit and Risk) on the adequacy and effectiveness of internal controls within the council, including the systems designed to achieve the strategic ambitions of the council and those that manage the material risks faced by the council. It is noted, however, that the presence of an effective internal audit function contributes towards, but is not a substitute for, effective control. It is primarily the responsibility of line management to establish internal controls so that council activities are conducted in an efficient and well-ordered manner, to ensure that management policies and directives are adhered to and that assets and records are safeguarded. In Internal Audit annual report for 2023/24, the Acting Chief Officer (Audit and Risk) provides an overview of the activities of the Internal Audit section for the year 2023/24. This included highlights of issues arising from Internal Audit activity during the year and an extract in this respect is set out in the table below. Extract from the Internal Audit annual report for 2023/24, May 2024 In the Internal Audit annual report for 2023/24, presented to the Chief Executive and both the Business Management Team and Corporate Management Team in May and June 2024 respectively, the Acting Chief Officer (Audit and Risk) provided an overview of Internal Audit activity against the 2023/24 Annual Plan and includes details of when each assignment was reported to the Audit and Scrutiny Panel (where not yet formally reported, status and expected dates are given). Key issues arising from Internal Audit outputs are highlighted in the Internal Audit Progress report tabled at each meeting of the Panel. In the Internal Audit annual report for 2023/24, the Acting Chief Officer (Audit and Risk) also highlights issues arising from Internal Audit activity during the year; an extract from this report is noted below. a) A small number of audit assignments were reported during 2023/24 which offered only limited assurance. In all cases, management committed to a range of relevant improvement actions, some of which have already been completed, and we will continue to monitor progress on these issues during 2024/25 to provide senior management and the Panel with further assurance that relevant key controls are operating effectively. b) In addition, it is worth highlighting our work on the procurement and single bidder risk mitigation aspects of the Housing and Corporate Repairs contract award processes, which contains a non-standard audit conclusion because of the scope and nature of that work. Our report concluded that the governance arrangements in place for the Enterprise Project were adequate and appeared robust, and that the project was being managed in line with corporate expectations in a manner consistent with good practice. However, we identified the need for management to ensure a comprehensive and objective performance management framework is established with supplier performance assessed using clear, objective, and meaningful metrics supported by an adequately resourced, balanced contract management team with an appropriate range of skills. c) Overall, I am satisfied that the council’s internal control and governance arrangements remained adequate and appropriately robust throughout 2023/24. d) The results from our detailed work examining the council’s corporate governance arrangements suggest that compliance with the requirements of the corporate governance framework adopted by the council continued to be generally positive with no significant weaknesses or areas of concern highlighted. e) Our work also suggests that, despite the ongoing significant and increasing challenges, key financial controls and financial management arrangements continued to operate to a generally high standard within the council. Page 106 of 116
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f) Audit investigations of suspected fraud and/or irregularities are reported to the [Audit and Scrutiny] Panel in line with the agreed Internal Audit reporting protocol. Apart from the whistleblowing allegations received by Audit Scotland regarding the existing Mears LLP housing and property maintenance contract, details of which were reported as part of the routine progress report at the May 2024 [Audit and Scrutiny] Panel, I am pleased to be able to report that there were no other weaknesses, material frauds or irregularities identified during 2023/24 that I require to bring to your attention. g) Our report detailing the findings and conclusions arising from our work on the whistleblowing allegations received by Audit Scotland contained several recommendations designed to address the identified weaknesses and to seek to ensure that any future contract management and oversight arrangements are more robust. Many of the recommendations in this report are broadly consistent with, or cover similar aspects to, those raised at b) above. In response to both reports, management have committed to a range of detailed improvement actions, and we will monitor progress on these issues during 2024/25. h) Although there are no issues that require me to qualify my annual opinion, there are a small number of areas that I would wish to highlight, and which will continue to be the focus of future audit coverage: • Given the key role effective contract and supplier management plays in ensuring that the council can deliver against its operational and strategic ambitions, we will undertake early and ongoing work, as necessary, to provide assurance on the adequacy and effectiveness of the council’s management arrangements surrounding the mobilisation and implementation of new contract management arrangements for both recently approved contracts awarded via the Enterprise Project. With regards the new housing and corporate property maintenance contract, this will also involve specific, detailed follow-up of agreed actions arising from the investigation report on the Audit Scotland whistleblowing allegations. • The last year has seen the development of new internal governance structures designed to ensure the delivery, co-ordination, direction, and oversight of planned activities for the refreshed Programme of Work to 2028. These developments have also incorporated progression of an audit action, that has been outstanding for some time, around the council failing to report progress on key projects and programme of work activities in a single place which would better allow stakeholders to exercise more effective monitoring, oversight, and scrutiny and to better hold senior management to account. Internal Audit will undertake specific work in the year ahead regarding the implementation and effectiveness of these arrangements now they are operational. • In last year’s annual report, it was commented that, in recent years, we had identified several areas in respect of the council’s arrangements for paying staff, where controls were inadequate or not operating as intended, which meant that at that time it was assessed that risks in this area remained high. Although some management action has been taken in the last 12 months to begin to address these issues, my assessment in this area remains the same, and as such, this will be subject to further audit coverage in 2024/25. • In a number of areas, in recent years, Internal Audit reports have provided management with information on failures to comply with expected controls, procedures or guidance that should reasonably have been identifiable at an earlier stage if line management’s own arrangements were more robust. Given the irregular and/or cyclical nature of Internal Audit’s coverage and in accordance with the Three Lines of Defence Model, we will again this year continue to challenge management across the range of our planned audit work about how they themselves routinely gain assurance on compliance and the effectiveness of identified key controls. Traditionally, the Annual Governance Statement outlines issues identified during the Internal Audit programme of work for the previous year (2022/23) and includes an update providing details of the actions taken to address each issue. In the annual opinion provided by the Chief Officer (Audit and Risk) for 2022/23, there were no issues that required the Chief Officer to qualify their opinion. A small number of areas were highlighted which were noted would continue to be the focus of future audit coverage during 2023/24. As such, the extract from the Internal Audit annual report for 2023/24 sets out the latest position in this respect. 6) Chief Officers year end good governance assurance certificates and checklists. This requires Chief Officers to review various aspects within their service areas and advise of any specific issues which require to be identified in the Annual Governance Statement. Through this process Chief Officers have reviewed the effectiveness of governance arrangements Page 107 of 116
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during the year within their area of responsibility by completing a Certificate of Assurance and updating a 73 point Checklist to support the preparation of the council’s statements on corporate governance and internal financial control for the year ending 31 March 2024. Following a review of the 14 certificates and checklists completed for 2023/24, Chief Officers have confirmed corporate governance arrangements and financial controls in their area of responsibility have been, and are, working well and there are (in their opinion) no significant matters arising which would require to be raised specifically in the Annual Governance Statement. Following recommendations from an Internal Audit review of corporate governance in 2023, the process to obtain the relevant assurances from Chief Officers was reviewed and refreshed in advance of the 2023/24 year end process. This resulted in the following improvements being implemented: • Each of the 73 points (questions) was reviewed and updated (where required) to ensure clear alignment to one or more of the principles and/or sub principles in the CIPFA Framework. This approach supported the information that already exists in the Strategic Governance Framework Review Programme by ensuring the questions that are asked in the Checklist do not duplicate information that can already be obtained from other existing sources and/or processes. Where appropriate for added context, alignment to the governance and accountability theme in the national Best Value guidance (2020) was also reflected. • For each question there is now a clear differentiation between (a) asking for a tangible item that can clearly be evidenced (e.g. documents, plans, procedures, etc), and (b) asking for an opinion that will require supplementary context to substantiate its point (i.e. asking if something is systematically deployed across a service or is operating effectively). For questions in respect of (a) the evidence that a tangible item exists was not (in the main) required be submitted as part of the annual Checklist process. The onus is on each Chief Officer to ensure that this evidence is readily available and can be produced should it be requested at a later date for any specific purpose or audience. • Where it is appropriate to do so, questions follow certain aspects of a self-evaluation type structure, i.e. they ask if there is an approach in place, and/or if an approach has been systematically deployed and implemented in all relevant areas of the council and understood by all, and/or if the approach and its deployment are regularly reviewed to assess effectiveness. In addition, Chief Officers were asked two specific questions in relation to improvements within their area of service which sought (a) their opinion if the recommendations from the work of others (internal audit, external auditors, and external audit and inspection bodies, etc) had informed positive improvement(s) within their service, and (b) if all improvement / corrective actions recommended through the work of others had been implemented / acted upon within their service. The review of the 14 checklists completed for 2023/24 showed that where there had been recommendations made Chief Officers responded positively in respect of both of these aspects. It should be noted though that not all improvement / corrective actions had yet been implemented as they were not yet scheduled to be so and while it was considered that recommendations made from the work of others are in the main helpful in addressing areas for improvement within the service, there are a small number of examples whereby corrective actions could have a negative impact on the resources required for small gain. 7) Arm’s length external organisations (ALEOs) year end good governance assurance certificates and checklists. This requires the Chief Executive or Senior Representative of each ALEO to review various aspects within their service areas and advise of any specific issues which require to be identified in the Annual Governance Statement. Through this process the council’s five arm’s length external organisations (ALEOs) have also reviewed the effectiveness of governance arrangements during the year within their organisation by completing a Certificate of Assurance and updating a 70 point Checklist to support the preparation of the council’s statements on corporate governance and internal financial control for the year ending 31 March 2024. In this respect, the Chief Executive or Senior Representative for each of the ALEOs has confirmed corporate governance arrangements and financial controls in their organisation have been, and Page 108 of 116
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are, working well and there are (in their opinion) no significant matters arising which would require to be raised specifically in the council’s Annual Governance Statement. The exception to this, is the matter in relation to the whistleblowing allegations received by Audit Scotland already covered in the Internal Audit annual report in paragraph 4.3 (5) above. The improvements made to the Chief Officer year end Checklist noted in paragraph 4.3 (6) above, were also implemented for the ALEOs checklist. In line with previous years good practice, six monthly reporting continued during 2023/24 to provide the Audit and Scrutiny Panel with oversight and assurance of governance, financial governance, and risk management arrangements within each ALEO. 8) Annual review and update of the local code of governance review programme (i.e. the Strategic Governance Framework). The council’s local code of governance has been developed taking into account the local environment within which the council operates which is set out above. It brings the principles of good governance together with legislative requirements and management processes by which the council is directed and controlled and through which it is accountable to, engages with, and leads the local community. This aims to ensure the council is able to effectively pursue the long-term ambition set out in The Plan for North Lanarkshire, while ensuring this is underpinned with control and the management of risk, and: • Resources are directed in accordance with agreed policies and according to priorities and in line with corporate project management procedures. • There is sound and inclusive decision making. • There is clear accountability for the use of those resources in achieving defined outcomes for service users and local communities. The council’s local code of governance is set out in the Strategic Governance Framework which is one of six inter-related strategic frameworks that aim to maintain a corporate one council approach across the organisation. These frameworks are key to evaluating the success of The Plan for North Lanarkshire and assessing delivery of the Programme of Work, while ensuring each stage of delivery towards achieving the overall vision is appropriately aligned, planned, guided, implemented, monitored, and governed. As such, the Strategic Governance Framework: • Gathers together all existing governance arrangements into a list of elements and mechanisms that demonstrates the council’s compliance with the 7 principles, 21 sub principles, and 91 behaviours and actions contained within the CIPFA Framework. By collating all existing elements and mechanisms (produced by the respective Chief Officer) into the one local code for annual review, assessment, assurance, and reporting purposes, the Strategic Governance Framework and its Review Programme provides an efficient mechanism through which the annual review can be undertaken. This also ensures appropriate oversight and governance of The Plan for North Lanarkshire and supporting Programme of Work and enables the council to monitor the delivery of its ambitions while ensuring arrangements for corporate governance, risk management, and internal financial controls are sound. A summary of the current position regarding the elements and mechanisms in the Strategic Governance Framework review programme is set out in the table below. • Sets out the role of the Chief Officers and senior management team, Elected Members, and the Audit and Scrutiny Panel who are responsible for determining and implementing the council’s governance arrangements, ensuring the local code is assessed on an annual basis to ensure ongoing effectiveness and compliance, and identifying any improvement actions and/or future planned developments required in relation to the council’s key governance arrangements and continuous improvement activity. • Comprises a diagram that depicts the steps in the annual review process which ensures that the council’s governance arrangements are regularly assessed for ongoing effectiveness within the context of The Plan for North Lanarkshire and provides evidence to inform the content of the Annual Governance Statement. Page 109 of 116
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• Remains under review through the annual review process whereby each of the elements and mechanisms in the review programme are examined and updated as required to reflect the relevant documentation and hyperlinks, as well as the review timeframe, and date of next update. • Is supported by an annual assessment of the current position of the elements and mechanisms in the review programme to ensure they remain timely and effective in supporting delivery of The Plan for North Lanarkshire. This involves assigning a corresponding RAG status to provide a method by which to identify and prioritise items requiring to be reviewed and updated further. The latest position following the 2023/24 year end review identified no Red elements or mechanisms, two Amber, and the rest were Green. For the two assessed as Amber (i.e. Employee Code of Conduct and employee engagement and wellbeing), there is a commitment by the respective Chief Officer to ensure an update is undertaken during 2024/25. Extract summarising the current position regarding the elements and mechanisms in the Strategic Governance Framework review programme • The council’s long-term strategic ambition and priorities in The Plan for North Lanarkshire and ensuring the vision therein - for inclusive growth and prosperity for all (to bring equal benefits and a fairer distribution of wealth to all North Lanarkshire’s people and communities) - is embedded throughout policy statements agreed by the council, as well as strategic and financial decision making, strategy and policy development, everyday service delivery activities, and corporate governance approaches across the organisation. • Six inter-related strategic frameworks (Policy, Governance, Performance, Self- Evaluation, Project Management, and Demonstrating Improved Outcomes for Communities) which ensure a one council corporate approach to evaluating the success of The Plan for North Lanarkshire and assessing delivery of the Programme of Work (while ensuring each stage of delivery towards achieving the overall ambitions is appropriately aligned, planned, guided, implemented, monitored, and governed). To ensure these frameworks remain fit for purpose, and aligned to The Plan for North Lanarkshire and Programme of Work, all are on a regular review and refresh programme. • A strategic planning process through the Programme of Work which is framed within the context of the local demographic, social, and economic profile that shaped The Plan for North Lanarkshire. While stabilising the strategic direction of the council, the Programme of Work allows for appropriate flexibility in the operational delivery of many complex inter-connected programmes, projects, and plans to ensure a dedicated focus on improvement change, and delivering services that improve the lives of local people. A supporting governance framework and annual review process enables a recurring, dynamic, and cohesive approach to the ongoing development of the Programme of Work and ensures it remains current, relevant, and deliverable. • A Strategic Policy Framework which sits beside the Programme of Work in the strategic planning process to ensure that strategy and policy remain connected to delivery in order to collectively facilitate a co-ordinated approach to identifying the resources and working practices needed to support delivery of the long-term vision. • Standing Orders that allow the council to delegate decision making to committees, sub- committees, or officers and which set out the rules that apply to the running and operation of council and committee meetings. • A Scheme of Administration which clearly sets out functions, terms of reference, and powers of the council and its committees and sub-committees and which is aligned to the organisational structure to facilitate decision making in line with the council’s strategy. • A Scheme of Delegation to Officers which sets out the functions delegated to the Chief Officers of the council, including reference to any Officer listed as being provided with a delegation is, de facto, deemed to hold a politically restricted post (in accordance with legislation). • Financial Regulations and a Scheme of Financial Delegation which, as an integral part of the council’s framework of internal financial controls, are designed to ensure effective stewardship of council funds. Compliance with these regulations ensures that public money is safeguarded and properly accounted for, and all financial transactions are undertaken in a manner which demonstrates openness, transparency, and integrity. The Financial Regulations form a key part of the overarching Financial Strategy and the corporate governance arrangements of the council. • The Financial Strategy which is the overarching framework that establishes the financial strategies and policies to ensure effective financial governance, planning, and Page 110 of 116
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management and, as such, sets out the responsibility for safeguarding public funds within the council. It also sets out the role and responsibilities of the Chief Financial Officer, in line with the corresponding CIPFA Statement (2016). The strategies and policies covered by the Financial Strategy include the Capital Strategy, Treasury Management Strategy, Revenue Budget Strategy, the Medium-Term Financial Plan, and the Financial Regulations and Scheme of Financial Delegation. • A Risk Management Strategy which sets out a clear direction for how the council will identify, assess, and manage the risks faced in providing high quality public services and delivering The Plan for North Lanarkshire. The strategy is intended to ensure that the council is risk aware rather than risk averse and that the management of risk is embedded in the council’s policies, procedures, culture, and practices. It is designed to ensure that key decisions are taken with an understanding of risks and their effective control. • Risk management arrangements which form an important element of good corporate governance and are designed to ensure that the council operates systematic and logical processes for managing risks within a comprehensive framework, ensuring that identified risks are managed consistently, effectively, efficiently, and coherently across the organisation. These arrangements include maintenance of a Corporate Risk Register, Service Risk Registers, Project Risk Registers, and regular oversight of the council’s risk management arrangements and management of key corporate risks by the Audit and Scrutiny Panel and Corporate Management Team, and other governing bodies as required. • Codes of Conduct for Elected Members, Chief Officers, and Employees which provide frameworks within which individuals are expected to undertake their duties in a manner which meets the required standards for good governance. This includes ensuring declarations of interests, and declarations for conflicts of interest and gifts and hospitality, are appropriately (and regularly) made and published. • Ensuring legislative obligations are fulfilled through the statutory officer roles, i.e. the posts of head of paid service, monitoring officer, chief financial officer (section 95 officer), and the chief social work officer. • A Counter Fraud Policy which sets out the council’s expectations (that extends to all individuals and organisations with whom it deals) in terms of acting honestly and with integrity and in safeguarding public resources. • A Whistleblowing Procedure (Public Interests Disclosure) which provides a mechanism for employees of the council, and other workers within the council, to report a concern about serious wrongdoing within the council and to do so with security and in confidence. • A senior management team structure which comprises a Business Management Team (to monitor the efficient and effective operation of the council and ensure pursuit of the long-term vision set out in The Plan for North Lanarkshire is underpinned with the relevant assurances and controls in terms of corporate governance, risk management, and financial management), and a Corporate Management Team (to ensure strategic oversight, direction, and a one council approach in terms of delivery of the vision through the Programme of Work. This is supported by a meetings structure comprising service Senior Management Teams focussing on the operational delivery of service remits, and an Operational Management Team to cascade the context, deliverables, and accountabilities and ensure consistency of message in terms of the long-term vision and day to day delivery through the Programme of Work. All Chief Officers are members of the Corporate Management Team; this includes those Chief Officers who hold a statutory officer role. • An Audit and Scrutiny Panel whose activities and functions comply with the standards set out in CIPFA’s Position Statement: Audit Committees in Local Authorities (2018), and whose purpose is 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. • A Strategic Performance Framework which sets out performance measurement at three levels in order to collectively provide an overview of performance (over time and compared to targets) to help understand the impact of council activities on improving services and outcomes for the people and communities of North Lanarkshire. These measures also 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. • Formal reporting arrangements through an annual Performance Reporting Schedule that comprises Chief Officer reviews at service committees and service specific reporting to meet both business and statutory obligations and which is underpinned by five non- negotiable standards that support regular performance assurance reviews. Page 111 of 116
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• Comprehensive revenue budget and capital expenditure guidelines, with well- established processes and systems to ensure regular monitoring and reporting, as well as oversight and scrutiny through the council’s senior management team structure of meetings and Elected Members at committee. • A range of programme and project Boards and working groups aligned to the delivery and governance requirements for specific Programme of Work items, e.g. Strategic Capital Delivery Group, six Strategic Programme of Work Boards, Hub Delivery Programme Board, and Data Governance Board. • An Information Governance Policy Framework, comprising policies in terms of records and information management, data protection, information handling and classification, information risk, information security, and payment card industry data security to ensure proper recording of information, appropriate access to that information including by the public, and compliance with legislation. • An Information Security Policy which includes cyber security and aims to protect the council’s information systems and physical assets including supporting processes, networks, and equipment. This is essential to ensure the council can continue to operate and successfully deliver its functions, while finding the right balance between the benefits and risks to the processing of information. • Publicly available complaints and freedom of information procedures with management, monitoring, and performance reporting arrangements. • A range of employment and other policies, and associated guidance documents and forms, which promote and support ethical behaviour and standards of conduct by employees. An employee Performance Review and Development (PRD) process and access to a range of training and development programmes and opportunities through LearnNL for both employees and Elected Members. • Strategic Workforce Plans, supported by service specific workforce plans, which identify the actions required to address workforce gaps and set out detailed service level actions to address the risks and issues facing the current workforce and identify the gaps in terms of fulfilling service provision and delivering on priorities and the long-term vision now and in the future. • Independent and objective assurances provided by Internal Audit whose function is designed to add value and improve the council’s operations. The Internal Audit function operates within the Public Sector Internal Audit Standards (PSIAS) and the council’s Internal Audit Charter. The service undertakes an annual programme of work approved by the Audit and Scrutiny Panel which is based on the Internal Audit Annual Plan. This plan is risk based and is periodically updated to reflect evolving issues and changes. • Independent and objective assurances provided by the external auditors through the Annual Audit Report (AAR) process and other audit, inspection, and regulatory bodies. The annual review and update of the Strategic Governance Framework is reviewed and endorsed each year by the council’s senior management team (through both the Business Management Team and Corporate Management Team) in line with their respective governance, strategic oversight, assurance, and continuous improvement roles in respect of the council’s governance arrangements and delivery of The Plan for North Lanarkshire. The annual assessment process in place through the Strategic Governance Framework and its accompanying review programme has been recognised as an area of good practice in the latest two annual Internal Audits on Corporate Governance. • In May 2023 it was cited that there are “formal and generally robust arrangements in place to ensure that such reviews are undertaken on an annual basis”. • This audit also reported on the assessment of the council’s local code against the Delivering Good Governance in Local Government: Framework and found that this process was “generally robust”. The findings also noted that the assessment had indicated a “high level of compliance with the Corporate Governance framework, which was broadly consistent with Internal Audit’s assessment of Principles C and D”. More recently, the Internal Audit annual report 2023/24 and annual opinion from the Acting Chief Officer (Audit and Risk) concludes that “The results from our detailed work examining the council’s corporate governance arrangements suggest that compliance with the requirements of the corporate governance framework adopted by the council continued to be generally positive with no significant weaknesses or areas of concern highlighted.” 9) The Annual Audit Report (AAR) process undertaken by the external auditors, together with Page 112 of 116
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the national approach to auditing Best Value through thematic audit work. Published in May 2019, the North Lanarkshire BVAR comprised eight recommendations for action by the council. Various updates have been provided to committee since and the external auditors Annual Audit Report (AAR) has provided updates every year in terms of completed recommendations. The Annual Audit Report (AAR) in October 2023 reported that all eight recommendations had been fully implemented and were now complete. The outcome report following the introduction of the new national approach to auditing Best Value in 2023 through thematic audit work (on the leadership of the development of new local strategic priorities) was reported to the Audit and Scrutiny Panel in October 2023 and the Policy and Strategy Committee in 2023. This recognised the clear ambitious vision in The Plan for North Lanarkshire and found that the vision has been driven by effective leadership and is supported by a range of performance indicators and performance reporting arrangements. The report concludes positively on the council’s approach to citizen and community engagement and recognises the council’s commitment to reducing inequalities and tackling poverty. The report also comments positively on the alignment of strategic and operational delivery plans (with the council’s financial, asset, and digital plans), the collaborative working between Elected Members and officers, and the council’s approach to self-evaluation which supports continuous improvement. The outcome report following the Best Value thematic audit work contained a small number of audit recommendations and management responses, including planned actions, responsible officers, and timescales. Progress in terms of implementing these actions is monitored by Internal Audit and reported to the Audit and Scrutiny Panel. • The council should look to improve its existing processes for engaging elected members on the overall strategic planning process. • The council should consider how it measures the level of engagement with communities and equalities groups. • The council should work with members to understand the reasons for the poor attendance to ensure its training and development programme is fit for purpose. The external auditors latest Annual Audit Report (AAR), reported to the Audit and Scrutiny Panel in October 2023 presented key matters arising from each of the main areas of work undertaken by the external auditor. This included the audit of the financial statements and issues relating to the council’s financial management and financial sustainability, vision leadership and governance, best value arrangements, and the use of resources to improve outcomes. The report contained the external auditor’s audit opinion on the 2022/23 financial statements as well as a number of issues where action was required during the audit process and/or scope for further improvement existed. The report also contained a small number of audit recommendations and management responses, including planned actions, responsible officers, and timescales. Progress in terms of implementing these actions is monitored by Internal Audit and reported to the Audit and Scrutiny Panel. 10) Findings from other audit, scrutiny, or inspection bodies in relation to service specific assessments. A dedicated page on the council’s website provides a central location for reporting on findings and recommendations from all national audits and inspections. This continues to be kept up to date as and when new reports become available nationally. Inspection reports published during 2023/24 include the following: • Progress visit to evaluate the effectiveness of the community learning and development partnerships’ approach to self-evaluation and planning for improvement, and consider progress made against identified priorities in their community learning and development plans - February 2024. Inspectors noted that no further action was required following this inspection and also identified some aspects of effective practice that the council were asked to share with HMIe to support practitioners elsewhere. The report suggests some minor areas of potential improvement which will be taken into consideration when reviewing and updating the community learning and development plan in 2025. • Joint inspection of services for children and young people at risk of harm in North Lanarkshire community planning partnership led by the Care Inspectorate in collaboration with Education Page 113 of 116
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Scotland, Health Improvement Scotland, and His Majesty’s Inspectorate of Constabulary in Scotland - October 2023. As there were no specific recommendations made by inspectors based on their assessment that the partnership had not already identified and were acting on, the recommendations were incorporated into the Child Protection Committee business and improvement plan and will be monitored through this Committee accordingly. • Annual assurance statement produced for the Scottish Housing Regulator (SHR) to demonstrate the council meets all legal obligations associated with housing and homelessness services, equality and human rights, and tenant and resident safety - August 2023. As per the SHR’s requirements the Annual Assurance Statement for 2022/23 was signed off by the Housing Committee in August 2023. 11) The role of the council’s senior management team structure of meetings in respect of good governance, assurance, and continuous improvement. The council recognises that a crucial aspect in delivering good governance is the way that it is applied. The ethos of good governance cannot be achieved by structures, rules, and procedures alone. Effectively, good governance needs to be embedded within the council and its culture and the need for, and value of, good governance must be explicit. As such, any references that require to be made to any one of the frameworks supporting The Plan for North Lanarkshire references them all together for completeness and to raise awareness of the role of good governance in delivering the strategic ambition. The role of, and need for, good governance is also reiterated in the Guidance accompanying the Report Template which requires to be used for all council internal reporting purposes. Following implementation of a single integrated corporate forum for all Chief Officers in April 2021, a subsequent self-evaluation exercise in 2022 to review the effectiveness of the revised arrangements, concluded there was a clear vision and effective leadership with a sound approach that provides clear direction and several aspects of the new arrangements were highlighted as working well. The combination of responding to and recovering from the pandemic while resuming business as usual activities at pace - had however intensified the volume of business that required to be discussed by the senior management team of the council which - along with the impact of workforce pressures, industrial action, inflationary pressures, the cost of living, external financial pressures, and large scale public sector reform - significantly added to the agenda and to the risks facing the council. For this reason, new arrangements in respect of the council’s senior management team and supporting structure of meetings were developed and implemented from January 2023. This comprises four aspects, as follows: • A Business Management Team whose role is “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 means the Business Management Team role is that of assurance, not directing or monitoring delivery unless the ongoing assessment of assurance requires improvement in this respect. A four weekly Business Management Team meeting is held which comprises standing agenda items for finance, governance, risk, performance, and human resources and further demonstrates the ongoing commitment to ensuring corporate governance arrangements are in place and remain effective. • The Chief Executive, Depute Chief Executive, Section 95 Officer, and Monitoring Officer are members of the Business Management Team as well as the Chief Officers of Audit and Risk, Business and Digital, People Resources, and Strategic Communications and Engagement. • A Corporate Management Team whose role is “To consider the strategic context and environment within which the council is operating, understand the position of the organisation, and consider the future direction. To consider the implementation of strategic decisions at a council wide level and the impact on the delivery of The Plan for North Lanarkshire and Programme of Work. To agree the one council approach required in order to deliver on the council’s priorities (in partnership where required) in line with the strategic direction and monitor the delivery of the Programme of Work.” This means the Corporate Management Page 114 of 116
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Team role has a focus on improvement over time in delivering the council’s strategic priorities through the Programme of Work. • The Chief Executive, Depute Chief Executive, and all other Chief Officers are members of the Corporate Management Team. Both the Business Management Team and the Corporate Management Team input to the annual Strategic Governance Framework review process and to the review of the evidence that informs the Annual Governance Statement (with a view to ensuring the council’s governance arrangements and systems of internal controls remain effective) and to identify any improvement activity or future developments required to support continuous improvement. This ongoing commitment from the Business Management Team and the Corporate Management Team ensures that good governance is supported from the top of the organisation. • Four Service Management Teams (SMTs) - the annual governance update report in December 2023 reiterated the four service groupings which were originally established in September 2018, and which have continued to operate effectively since, i.e. Chief Executive’s services, Enterprise and Communities, Education and Families, and Adult Health and Social Care. • The focus for these four SMTs is therefore to manage the operational delivery of service remits. They are also required to consider the implementation of strategic and corporate decisions at a service and/or service grouping level and to consider the context within which the service / service grouping is operating and ensure decisions made in terms of operational delivery are in line with good governance and support the successful delivery of the Programme of Work and The Plan for North Lanarkshire. • Operational Management Team - formally established in April 2021, this forum comprises all senior managers and head teachers across the council. It operates under the principles of engage, develop, support, and inform to connect managers and enable them to strengthen and support their teams to deliver on the Programme of Work in line with The Plan for North Lanarkshire. This forum aims to provide a collaborative forum for discussions on the practical aspects of delivering the Programme of Work. This group is not a decision making body; it is an information sharing forum. Its focus is on providing opportunities to share and discuss significant strategic and corporate developments with the wider operational management team environment across the council. 4. Certification 4.1 In compliance with the Delivering Good Governance in Local Government: Framework (2016) the council has systems in place to review and improve the governance and internal control environment throughout the year. Issues for action have been identified and implementation will be monitored and reported as part of the next annual review. 4.2 It is our opinion that reasonable assurance can be placed upon the adequacy and effectiveness of North Lanarkshire Council and its Group systems of governance. The annual review process has demonstrated sufficient evidence that the council’s corporate governance arrangements have operated effectively, and the council and its group companies comply with the relevant corporate governance principles in all significant respects. Chief Executive Leader of the Council Page 115 of 116
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