Agenda Document Pack - Audit and Scrutiny Panel - 26/06/2025
North Lanarkshire Council · 26 June 2025
Back to Audit and Scrutiny Panel — 26 June 2025 and its agenda
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Clerk Name: Clare Louise McDonald Clerk Telephone: 07350 435308 Clerk Email: committee@northlan.gov.uk 17 June 2025 Members of the Audit and Scrutiny Panel Chief Executive’s Office Rachel Blair Chief Officer (Legal & Democratic) Civic Centre, Windmillhill Street, Motherwell ML1 1AB www.northlanarkshire.gov.uk Notice is given that a Special 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, 26 June 2025 at 14:00 PM which you are requested to attend. The agenda of business is attached. Rachel Blair Chief Officer (Legal & Democratic) Members : S Watson, P Kelly, C Costello, A Duffy-Lawson, M Hughes, J Hume, D Johnston, J Leckie, M McCulloch, J McLaren, G Robinson. Page 1 of 108
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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 2024-25 Submit report by the Chief Officer (Audit and Risk) informing that 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, 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 - 20 3 Strategic Governance Framework - Annual Review and Refresh Submit report by the Chief Officer (Strategy and Engagement) 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. 21 - 76 4 Annual Governance Statement 2024-25 Submit report by the Chief Officer (Strategy and Engagement) providing the Panel with a copy of the Annual Governance Statement for consideration. 77 - 108 5 Unaudited Annual Accounts for the year ending 31 March 2025 Submit report by Chief Officer (Finance and Technology) (copy to follow) Page 3 of 108
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/ASP/June2025 Date 26/06/25 Internal Audit Annual Report 2024-25 From Francis Scott, Chief Officer (Audit and Risk) E-mail scottfr@northlan.gov.uk Telephone 07887 914207 Executive Summary The Public Sector Internal Audit Standards (PSAIS) and the Council’s Internal Audit Charter require the Chief Officer (Audit and Risk) to provide the Audit and Scrutiny Panel with an annual summary of the work undertaken by Internal Audit and to provide an independent opinion on the Council’s corporate governance, risk management and internal control arrangements. This report fulfils that requirement for the year 2024-25. The annual opinion is unqualified and states that reasonable assurance can be placed on the Council’s governance, risk management and internal control arrangements. This report has previously been submitted to the Chief Executive, Business Management Team and Corporate Management Team. Recommendations The Panel is invited to: (1) note the Internal Audit Annual Report 2024-25 and the associated annual opinion of the 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 Item 2 Page 5 of 108
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1. Background 1.1 Internal Audit is an independent, objective assurance and advisory function designed to add value and improve the Council’s operations. It 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 examine and evaluate internal control systems and governance arrangements within the Council. • To provide assurance to elected members and senior officers on the adequacy and robustness of these systems. • To assist the Audit and Scrutiny Panel (the Panel), elected members and officers of the Council in the effective discharge of their responsibilities. 1.3 Internal Audit aims to provide a high quality and customer focused 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. 1.4 The purpose, mandate, authority and responsibilities of the Council’s Internal Audit function are outlined in the Internal Audit Charter, the most recent version of which was approved by the Panel in May 2025. 1.5 Internal Audit reports its outputs regularly throughout the year to the Panel in accordance with the Internal Audit Charter. The Panel also approves Internal Audit’s annual audit plan and monitors the performance of the function. 1.6 Internal Audit activity is planned to enable the Chief Officer (Audit and Risk) to provide an independent annual opinion 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. 1.7 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 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 Internal Audit Team 2.1 The Internal Audit team has an establishment of 8.5 full-time equivalent (FTE) members of staff, comprising a Chief Officer, an Audit Manager, six Auditors and an Audit and Risk Assistant. All members of the team above assistant level hold, or are working towards, a relevant professional qualification. 2.2 The Chief Officer (Audit and Risk) reports directly to the Chief Executive and is a member of the Council’s Corporate Management Team. The role and status of the Chief Officer and the Internal Audit function within the Council is consistent with the requirements of the Public Sector Internal Audit Standards (PSIAS) and best practice. 2.3 The team experienced a number of significant staffing changes during 2024-25, with the Chief Officer and Audit Manager positions being subject to recruitment, and interim Page 6 of 108
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management arrangements being put in place until these positions were filled permanently. These arrangements had the overall effect of the team operating with one vacant post during year, resulting in some changes to the implementation of the audit plan. 2.4 A performance management framework for Internal Audit was implemented in 2021. Results of the key performance indicators are reported on an annual basis, and Appendix 3 sets out these results for 2024-25. These indicators will be subject to review during 2025-26, with any revised framework being presented to the Panel. Customer satisfaction surveys are issued to service management at the conclusion of each audit, with the results being reported to each meeting of the Panel. During 2024- 25, the team continued to receive positive feedback from Services for the work undertaken. 2.5 The team continues to foster effective working relationships with colleagues from other organisations. The Chief Officer (Audit and Risk) is a member of the CIPFA Internal Audit Special Interest Group and the Scottish Local Authorities Chief Internal Auditors’ Group (SLACIAG). Additionally, members of the team attend and contribute to SLACIAG’s sub-groups covering computer audit, data analytics and counter fraud. These are valuable forums through which best practice and intelligence is shared, and relevant training provided. 2.6 Joint working is also undertaken with the appointed Chief Internal Auditor for NHS Lanarkshire, for the provision of a joint internal audit service to North Lanarkshire Integrated Joint Board. Internal Audit staff also continue to liaise closely with Audit Scotland, the Council’s appointed external auditors, to facilitate their work and to avoid any potential duplication of effort. Public Sector Internal Audit Standards 2.7 Since their introduction in 2013, the Public Sector Internal Audit Standards (PSIAS) have been mandatory for Internal Audit functions. To ensure compliance with the PSIAS, the Chief Officer (Audit and Risk) is required to develop and maintain a Quality Assurance and Improvement Programme (QAIP) which includes periodic internal assessments, and an independent External Quality Assessment (EQA) to be undertaken at least every five years. 2.8 During 2024-25, internal monitoring and assessment confirmed that Internal Audit continued to operate in accordance with the PSIAS. The most recent independent EQA was undertaken by Stirling Council in 2024 and confirmed that Internal Audit fully conformed with the PSIAS. This was reported to the Panel in May 2024. Both the self- assessment and EQA highlighted some areas for improvement and consideration, and these are highlighted in the QAIP action plan at Appendix 4. 2.9 From April 2025, the PSIAS was replaced by the Global Internal Audit Standards (GIAS). The introduction of the GIAS will require a revision to the current internal audit methodology and working practices, and a gap analysis exercise is currently being undertaken to determine the actions to be taken to ensure compliance. Similar to the PSIAS, compliance with the GIAS will also be subject to ongoing internal review and periodic self-assessment. The GIAS also require an EQA on a five-yearly basis, with the next assessment due to be undertaken in 2028-29. Internal Audit Activity During 2024-25 2.10 The Internal Audit plan for 2024-25 was approved by the Panel in May 2024. During the year, 17 audit assignments were undertaken from the plan resulting in the following assurance opinions. Page 7 of 108
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Substantial Assurance Reasonable Assurance Limited Assurance No Assurance Other/TBC * 5 7 1 0 4 * One audit was an extended follow-up with no assurance opinion. The remaining 3 audit reports have not yet been finalised, but the completed fieldwork indicates that they will provide Reasonable Assurance 2.11 In addition, unplanned assignments were undertaken during the year. This included an assurance audit on Council Tax Refunds (which provided Reasonable Assurance), a school fund review and two advisory reviews for Fleet Services and Land Services. In addition, an investigation was undertaken relating to an alleged school fund fraud – this is discussed in more detail at paragraph 2.21. Appendix 2 provides details of the planned and unplanned work undertaken during 2024-25. 2.12 The PSIAS require the audit plan to be subject to ongoing review to ensure it remains relevant and fit for purpose. During the year, some amendments were made to the plan to enable the function to respond flexibly to changing circumstances, and to take account of the effect of interim management arrangements and vacancies within the team. These changes were approved by the Panel in February 2025, and included: Audit Reason for Change Risk Management Deferred to 2025-26 due to resources Roads Contract Deferred to 2025-26 due to delayed start to contract Strategic Governance Arrangements Work started in 2024-25 but due for completion in 2025-26 due to resources Information Governance Deferred to 2025-26 due to resources Contract Management Deferred to 2025-26 due to introduction of revised contract management arrangements Review of Anti-Fraud Arrangements Deferred to 2025-26 due to resources Assurance Mapping Deferred to 2025-26 due to resources Future Operating Model Removed from plan, as no longer classed as a corporate risk (some elements included within strategic governance audit) 2.13 Taking into account these changes to the audit plan and the additional unplanned work undertaken during the year, it is my view that sufficient coverage has been obtained to inform the annual opinion. 2.14 Internal Audit continues to support Service management to ensure recommendations made within audit reports are implemented as agreed, and an update on all outstanding audit recommendations is presented to each meeting of the Panel. The Internal Audit Annual Report for 2023-24 noted a marked improvement in the actions and engagement of management in implementing audit recommendations, and this has continued throughout 2024-25. Page 8 of 108
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2.15 Internal Audit also has responsibility for investigating 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 the relevant Chief Officer, with details of the work presented to the Panel, in line with the Internal Audit Charter. 2.16 In addition to undertaking audit reviews, the Internal Audit team are involved in a number of other areas which serve to contribute to good governance across the council and enhance the overall control environment. During 2024-25, this included: • Participation in corporate working groups, project boards and Programme of Work thematic boards. • Provision of advice and guidance on systems development and control issues to services and Chief Officers. • Preparation of reports and agendas, and participation at meetings, to enable the Panel to fulfil its role. • Co-ordinating the work of the Council’s involvement with the National Fraud Initiative. • Consideration of reports by Audit Scotland and the Accounts Commission and highlighting key issues. Audit Issues 2024-25 2.17 The nature of audit assignments is such that most Internal Audit reports identify some weaknesses or areas where scope for improvement exists, and during 2024-25, a number of recommendations were made to address such areas identified from the audit work undertaken. However, as noted in paragraph 2.10, the vast majority of audits undertaken during the year received opinions of either Reasonable or Substantial Assurance, and there are no issues arising from these audits which require to be highlighted in this report. 2.18 The 2023-24 Annual Report discussed reports on the Housing and Corporate Property Maintenance Contract and the whistleblowing allegations received by Audit Scotland, which resulted in a number of high priority recommendations for management to address. Audit work during 2024-25 concluded that significant progress had been made in implementing the recommendations in both reports, with some aspects being fully implemented. Internal Audit will continue to monitor progress with the remaining recommendations, and further substantive audit work on the operation of the new contract arrangements is planned for 2025-26. 2.19 One audit during 2024-25 provided Limited Assurance, and this was in relation to arrangements for managing school funds. The control environment around school funds has been subject of repeated audit activity regarding anomalies and discrepancies, and this audit highlighted that previously agreed control measures had not been fully implemented. Following this audit, an unplanned review was undertaken to review a potential school fund discrepancy. Although on this occasion, no financial loss or misappropriation was discovered, the audit highlighted a number of weaknesses in the recording, reconciling and banking of school fund income and expenditure. 2.20 In response to this work, Education senior management presented a report to the Panel in February 2025, detailing actions taken to address the weaknesses identified and additional measures to further enhance the control environment. Progress with these actions will be monitored by Internal Audit. 2.21 One fraud investigation was undertaken during 2024-25. This also related to school funds and involved a report of missing monies. During the investigation, a member of staff confessed to taking funds on several occasions for personal use, and the audit Page 9 of 108
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work concluded that there was clear evidence that fraud had been committed. Appropriate action was taken under the Council’s Discipline Policy and the member of staff involved resigned prior to the disciplinary hearing. In line with the Council's Corporate Fraud Policy, this matter was referred to Police Scotland for further consideration, and details of the fraud were also reported to Audit Scotland. 2.22 Although the issues noted above can be significant to the control environment in the individual system or areas audited, they are not material enough to have a significant impact on my overall opinion on the adequacy of the Council’s control environment. Internal Audit Opinion 2024-25 2.23 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. Annual Opinion Reasonable Assurance There is generally an overall sound system of governance, risk management and internal control in place. While some issues, non-compliance or scope for improvement were identified, individually these do not significantly impair the Council’s system of internal control. 2.24 My formal Internal Audit Opinion on the soundness of the Council’s internal control systems for 2024-25 is presented at Appendix 1. Acknowledgements 2.25 I would like to take this opportunity to express my thanks to all staff in the Audit and Risk team for their hard work and commitment throughout the past year. I would also like to thank all Council staff who have assisted Internal Audit during our work throughout 2024-25, and the Chief Officers 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 Internal Audit Opinion 2024-25 Appendix 2 Audit Work Undertaken 2024-25 Appendix 3 Internal Audit Performance Appendix 4 Quality Assurance Improvement Programme (QAIP) Action Plan Francis Scott Chief Officer (Audit and Risk) Page 10 of 108
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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 108
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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 108
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APPENDIX 1 – Internal Audit Opinion 2024-25 To the members of North Lanarkshire Council’s Audit and Scrutiny Panel, the Chief Executive and 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 2025. 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, risk-based and objective assurance function designed to add value and to improve the Council’s operations. It enhances the Council’s achievement of its objectives, decision making and oversight by bringing a systematic 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. In doing so, Internal Audit contributes to the Council’s reputation and credibility with its stakeholders and its ability to serve the public interest. Internal Audit operated throughout 2024-25 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 Internal Audit continues to substantively comply with the PSIAS. Internal Audit 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 or non-compliance with expected controls are brought to the attention of management and include appropriate recommendations Page 13 of 108
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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. 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 2025. • The assessment of risk completed during the preparation of the 2024-25 and 2025-26 Internal Audit plans. • My wider knowledge of the Council’s corporate governance, risk management and performance management arrangements. • Assurances of the general control environment within individual Services in 2024-25 provided by Chief Officers. • Reports issued by the Council’s external auditors during 2024-25, together with reports from other external review and inspection bodies. Opinion 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 2025. Francis Scott Chief Officer (Audit and Risk) North Lanarkshire Council May 2025 Page 14 of 108
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APPENDIX 2 – Audit Work Undertaken 2024-25 Audit Status Recommendation Priority Assurance Opinion Reported to Audit & Scrutiny Panel High Medium Low Planned 1. Corporate governance Ongoing Expected August 2025 2. Performance management Complete 1 1 0 Reasonable May 2025 3. Business continuity planning Complete 0 3 1 Reasonable May 2025 4. Housing & Corporate Property Maintenance Contract Complete No Opinion May 2025 5. Cyber Security Ongoing Expected August 2025 6. Housing Asset Management Plan Complete 0 0 1 Substantial February 2025 7. Social Work Quality Assurance Complete 0 4 1 Reasonable October 2024 8. UK Shared Prosperity Fund Complete 0 0 1 Substantial May 2025 9. City Deal Complete 0 0 2 Substantial February 2025 10. Devolved School Management Complete 1 3 1 Reasonable February 2025 11. School Funds Complete 1 1 1 Limited October 2024 12. Project Management Quality Assurance Complete 0 1 1 Reasonable May 2025 13. Payroll Ongoing Expected August 2025 14. Use of Purchase Cards Complete 0 2 2 Reasonable February 2025 15. Housing Rents Complete 0 1 0 Substantial February 2025 16. Non-Domestic Rates Complete 0 0 2 Substantial May 2025 17. Scottish Welfare Fund Complete 1 2 2 Reasonable October 2024 Unplanned 18. Council Tax Refunds Complete 0 1 0 Reasonable October 2024 19. School H – School Fund Review Complete N/a February 2025 20. School I – School Fund Investigation Complete N/a February 2025 21. Fleet Services – Advisory Complete N/a N/a 22. Land Services Recruitment – Advisory Complete N/a N/a Page 15 of 108
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Assurance Opinion Definitions 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. 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. 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. 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 16 of 108
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APPENDIX 3 – Internal Audit Performance Category Measure 2024-25 Performance 2023-24 Performance 1. Delivery of Annual Plan Percentage completion of agreed plan 87.9% 88.3% 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 – 27% audited in 2024-25 Financial systems – 42% audited in 2024-25 Corporate risks – 20% audited in 2023-24 Financial systems – 45% audited in 2023-24 3. Efficiency Cost of Internal Audit per £ million revenue budget To be confirmed To be confirmed 4. Efficiency % of productive hours delivered v Plan 89.8% 92.6% 5. Delivery / recommendations Percentage implementation of agreed actions by implementation date (cumulative year to date) 54% 49% 6. Delivery / other Number of significant irregularity / fraud investigations 1 5 7. Quality / standards Reliance placed by External Audit on the work of Internal Audit No Yes 8. Quality / standards Quality review outcomes – EQA or internal self- evaluation 2024 EQA ‘Fully Conforming’ with PSIAS 2024 EQA ‘Fully Conforming’ with PSIAS 9. Delivery of Annual Report Annual opinion /report prepared by 31 May annually Annual opinion/report signed 27/05/25 Annual opinion/report signed 17/05/24 10. Targeting Approval by CMT and A&SP of strategy and annual plan by 31 May annually Annual plan endorsed by CMT 28/04/25 Annual Plan approved by A&SP 08/05/25 Annual plan endorsed by CMT 19/04/24 Annual Plan approved by A&SP 09/05/24 Page 17 of 108
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APPENDIX 4 – Quality Assurance Improvement Programme (QAIP) Action Plan No. Source Recommendation Management Response Responsible Officer and Target Date Status 1 Self- assessment 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 Complete – working version of Internal Audit plan for 2025-26 has prioritised audits. 2 Self- assessment Include explicit reference to QAIP and monitoring progress of agreed actions. N/A Chief Officer (Audit and Risk) May 2024 Complete – Included in Internal Audit Annual report for 2023-24 and 2024-25 3 Self- assessment and EQA The PRD process should be re-introduced for all members of the Internal Audit team, 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 December 2025 Revised Date – implementation delayed due to staffing changes during 2024-25, but PRD conversations will be scheduled for the remainder of this year. 4 Self- assessment and EQA Review current best practice in relation to assurance mapping and how other public bodies use this to inform the Internal Audit planning process, 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) Audit Manager December 2024 August 2025 Revised Date – work in 2024-25 deferred to the approved 2025/26 audit plan Page 18 of 108
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No. Source Recommendation Management Response Responsible Officer and Target Date Status 5 EQA 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. 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 April 2026 Revised Date – audit work in these areas in 2025-26 audit plan will be undertaken by the Audit Manager, independently of the Chief Officer. The provision of an independent external review will be considered for future years. 6 EQA 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, 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 March 2026 Revised Date – implementation delayed due to staffing changes during 2024-25, opportunities to streamline all audit processes will be considered in the coming year. 7 Self- assessment Preparation of a gap analysis, comparing the requirements of the PSIAS with the new Global Internal Audit standards (GIAS) with action being taken to ensure conformance. N/A Audit Manager December 2025 Ongoing – gap analysis is complete, work now progressing on ensuring Internal Audit conforms with GIAS. Page 19 of 108
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☒ Yes ☐ No Ref SP/SL Date 26/06/25 Strategic Governance Framework - annual review and refresh From Stephen Penman, Chief Officer (Strategy and Engagement) E-mail PenmanSte@northlan.gov.uk Telephone 07947 997750 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 2024/25 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 21 of 108
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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 22 of 108
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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 11 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 23 of 108
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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. Review programme 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 Appendix B. 2.8 The Strategic Governance Framework, and its accompanying review programme, have been recognised as an area of good practice in the latest three annual Internal Audits on Corporate Governance. As reported to the Audit and Scrutiny Panel in August 2024, the most recent Internal Audit considered that the “council’s corporate governance arrangements in relation to self-assessment are adequate and operating effectively” and therefore this audit was assessed as providing “substantial assurance”. Annual assurance certificate and checklist process Page 24 of 108
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2.9 Notwithstanding this, areas for improvement were identified by Internal Audit in their 2023 corporate governance audit for which remedial actions were approved by the Business Management Team in March 2024 prior to implementation. At that time, a substantial review of the council’s annual governance review process was already underway which led to further improvements (in particular in relation to the Chief Officer’s annual assurance certificate and checklist process and contents as well as alignment to, and the contents of, the Annual Governance Statement) which were implemented as at the 2023/24 year-end process. 2.10 A further area for improvement was identified by Internal Audit in their 2024 corporate governance audit which related to ensuring that “details of any omissions by Chief Officers and/or Chief Executives of ALEOs in completing the annual assurance certificate and checklist are reported to BMT. Thereafter BMT should take appropriate action to ensure that the final versions of the annual assurance certificates and checklists have been fully completed, signed and dated.” 2.11 Therefore, as in previous years, each Chief Officers annual assurance certificate and checklist has been reviewed upon receipt and as reported to the Business Management Team on 5th June 2025 - in line with the Internal Audit recommendation - all have been completed, signed, and dated. Next steps 2.12 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. 2.13 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 continued to be 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. Page 25 of 108
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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 Stephen Penman Chief Officer (Strategy and Engagement) 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 review programme. 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 ☒ Page 26 of 108
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If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or 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 review programme. 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? Page 27 of 108
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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 28 of 108
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1 Strategic Governance Framework Appendix 1 Page 29 of 108
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2 Document control Title Strategic Governance Framework Owner Stephen Penman, Chief Officer (Strategy and Engagement) Contact PenmanSte@northlan.gov.uk Governance group Audit and Scrutiny Panel Author Susan Lawrie, Strategy, Performance, Data 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 6.0 Linda Johnston, Strategy and Customer Experience Manager April 2025 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 6.0 Audit and Scrutiny Panel June 2025 Consultation record (for most recent update) Status of document consulted upon Strategic Governance Framework Stakeholders consulted / date Business Management Team (05/06/25); Corporate Management Team (13/06/25) Strategic alignment Next review date Review date April 2026 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, and Project Management Framework. Page 30 of 108
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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 - 11 - Requirements …………………………………………………………………………………. 7 - Local context ………………………………………………………………………………….. 7-8 - Local code of governance ………………………………………………...…………………. 8 - Continuous improvement ………………………………….…………................................. 8-9 - Roles and responsibilities ……………………………………………………………………. 9-10 - Annual review process ……………………………………………………………………….. 10-11 Appendix A: 7 principles and 21 sub-principles from the national Framework …………….. 12 - 16 Appendix B: North Lanarkshire Council local code of governance review programme …... 17 - 47 Page 31 of 108
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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 new five-year Programme of Work to 2028 was reframed within the latest North Lanarkshire context provided by the 28 Health Check Indicators. This 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 11. 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 11 and the review programme is set out in Appendix B (starting from page 17). Page 32 of 108
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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 33 of 108
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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 12. 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, ensuring 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 34 of 108
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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 was established in 2019 with a very clear vision - inclusive growth and prosperity for all - to bring equal benefits and a fairer distribution of wealth to all North Lanarkshire’s people and communities. • Founded on a place-based ambition, The Plan for North Lanarkshire has at its core an ambition to transform the physical environment of North Lanarkshire in a way that recognises the intrinsic value - and economic, social, and health benefits - gained in doing so. • This ambition recognises that implementing a place-based approach originates from the need to address spatial concentrations of disadvantage which, in recent years, have become further exacerbated by a growing complexity of problems being presented in terms of economical, health, and social issues. As such, a place-based approach aims to target an entire community and tackle issues that exist at the neighbourhood level (such as employment, education, skills, economic stability, housing, and health), and address fragmented service provision that leads to gaps or duplication. • Investing in a place-based approach and focusing on the physical environment of local communities, and better integrated and more accessible service systems, underpins the holistic approach (that crosses public sectors and service silos) being delivered through the Programme of Work. • The Plan for North Lanarkshire provides a very clear and compelling narrative which the council is 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 Plan for North Lanarkshire’s 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. • 28 high level health check indicators have since collectively provided a robust, consistent, and independent way of setting the context for North Lanarkshire as a place, as well as assessing changes in North Lanarkshire’s profile over time. As such, trends in the indicators (as at 2023) helped to reframe a new five-year Programme of Work to 2028 which was considered crucial to ensure a heightened and more strategic focus on not only sustaining the positive economic aspects, but also on ensuring a more targeted approach to improving social conditions and outcomes. • While the post pandemic environment may have seen more stable years for council operations, recovery from the pandemic changed the landscape Page 35 of 108
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8 within which The Plan for North Lanarkshire requires to be delivered. Inflationary pressures, the impact of rising prices on the cost of living, and national public sector reform agendas have exacerbated conditions for those in the most vulnerable situations and impacted on the council in terms of maintaining 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. • As such, a new five-year Programme of Work to 2028 was approved in March 2023. This was reframed within the aforementioned context to ensure that the stubborn scale of deprivation in areas that are hardest to reach is targeted through policy developments that are focused on tackling unstable trends. The Programme of Work to 2028 was followed by a supporting single integrated one council Delivery Plan reported to the Policy and Strategy Committee in March and September 2024. As the delivery vehicle for the shared ambition, the Programme of Work provides a roadmap for work across the council which has been instrumental in stabilising the strategic direction of the council (including work in partnership) in the face of a fast paced, rapidly changing, and relentlessly uncertain future local government environment, while allowing for appropriate flexibility in the operational delivery of many complex inter-connected programmes, projects, activities, and plans to ensure a dedicated focus on transformational change that improves the lives of local people. • A regular review process has enabled a recurring and dynamic approach to ensuring the Programme of Work remains current, relevant, and deliverable. This has enabled 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 national policy changes and developments. This also ensures a targeted and cohesive approach to establishing the programmes, projects, and activities required to achieve the intended outcomes. • This approach is considered critical to deliver The Plan for North Lanarkshire through both place-based regeneration and person-based policies that cross policy sectors and are developed and implemented in tandem - as well as integrated with wider investment and poverty reduction strategies - if transformational change is to truly make a difference. • More recently, the results from the 28 health check indicators, reviewed by the Policy and Strategy Committee in March 2025, showed that while 50% of the indicators indicated improvement over the period of The Plan for North Lanarkshire, gains were fragile and challenges remained. Therefore, within this context, a mid-term review of the five-year Programme of Work has commenced during 2025 - the scope for which was reported to the Policy and Strategy Committee in March 2025. The Programme of Work 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. Six monthly Programme of Work progress reports support the role of the Policy and Strategy Committee in maintaining their strategic oversight role (in line with the Scheme of Administration) of the overall Programme of Work to 2028 in relation to “development, co-ordination, and monitoring of The Plan for North Lanarkshire” and to keep under review such “programmes as the Committee considers necessary to achieve the council’s long-term aims and objectives”. Local code of governance The council’s local code of governance outlines the elements and mechanisms in place to ensure appropriate oversight of the council’s governance arrangements and systems of internal control in delivering The Plan for North Lanarkshire and its supporting Programme of Work, care, supports, and services. These arrangements and controls 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. 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 Page 36 of 108
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9 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, 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: 1. Vision and leadership. 2. Governance and accountability. 3. Use of resources. 4. Partnerships and collaborative working. 5. Working with communities. 6. Sustainable development. 7. 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. 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 has 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 Page 37 of 108
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10 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 (December 2024), 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.” Annual review An assessment of the council’s governance arrangements is undertaken on an annual basis - the process is outlined in Figure 2 on page 11. 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 38 of 108
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11 Figure 2 Annual review process Page 39 of 108
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12 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 12 to 16) 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 each sub-principle are the behaviours and actions that demonstrate good governance in practice (e.g. 1.1 to 1.4; 2.1 to 2.4; 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 40 of 108
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13 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 D1. DETERMINING INTERVENTIONS D2. PLANNING INTERVENTIONS D3. OPTIMISING ACHIEVEMENT OF INTENDED Page 41 of 108
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14 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 to changing legal and policy demands as well as economic, political, and environmental changes and risks by - ensuring members and staff have access to Page 42 of 108
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15 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 and that of any organisation for which it is responsible. 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 of the executive and accountable to the governing 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 43 of 108
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16 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). 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 44 of 108
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17 Appendix B: North Lanarkshire Council local code of governance review programme This appendix aligns each of the specific elements and mechanisms which form the council’s local code of governance 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 March 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 March 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 2025/26. 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 in December 2024 when revisions were approved at the Council meeting on 19th December 2024: link to file Standing Orders are published on the council’s website: link to file Latest version: December 2024. 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 2024. 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. • 2024 review of Financial Regulations and Scheme of Financial Delegation - November 2024: link to file • 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 Latest version: November 2024. 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 2024, and the rationale for each change, are listed in the accompanying committee report. RAG: Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 7th December 2023, and to streamline the oversight for Active and Creative Communities under the remit of a Latest version: December 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 updated in December 2024. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Page 45 of 108
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18 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 single committee. Following the organisational and structural changes agreed by the Policy and Strategy Committee at its meeting on 26th September 2024, the Scheme of Administration was updated in December 2024. 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, the most recent updates in this respect were approved at the council meeting on 27th March 2025: link to file Latest version: December 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 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. • Updated Scheme of Delegation to Officers approved by the Council at its meeting on 27th March 2025: link to file • A copy is available on the council’s website: link to file Latest version: March 2025. Review timeframe: As a matter of practice, the Scheme of Delegation to Officers is reviewed following any organisational change or restructure. Assessment: 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. Following the organisational and structural changes at Policy and Strategy Committee in September 2024, the Scheme of Delegation to Officers was updated accordingly and approved by the Council at its meeting in March 2025. 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 Chief Officers - updated in June 2024: link to file • Code of Conduct for Chief Officers - updated in June 2023: link to file 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. • Code of Conduct for Chief Officers - November 2017: link to file Latest version: June 2024. Review timeframe: As required based on organisational changes and to reflect updates in respect of legislation, best practice, and government guidance. Assessment: Amendments approved by Policy and Strategy Committee in June 2024 related to written responses to enquiries from MPs and MSPs enquiries and, as such, it was agreed that the following sentence be added at the end of paragraph 7.5 of the Code: “Notwithstanding the general rule set out in paragraph 7.3 above, written responses to all MP and MSP enquiries must be provided no later than 20 working days from the date of receipt of the enquiry.” 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. Latest version: Registers and council website last updated in April 2025. 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 Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ Page 46 of 108
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19 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 Registers are published on the council’s website: https://www.northlanarkshire.gov.uk/your-council/how-council-works/chief-officers- register-interests Register of Interests). RAG: 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 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. Latest version: Ongoing statutory obligation. Review timeframe: N/A. Assessment: All statutory posts are currently filled. RAG: Chief Executive / Chief Officer (Legal and Democratic) / Chief Officer (Finance and Technology) / 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 - February 2025: link to file • A mandatory eLearning module on the Employee Code of Conduct has been in place since 2023 (this is accessible through LearnNL). Following a review of completion rates and recertification periods by the Business Management Team in April 2025, a NLC Announcement was issued to staff in May 2025 advising that the recertification period for the Employee Code of Conduct module would move from every 2 years to every 3 years. Latest version: January 2025 Review timeframe: Since its implementation, the Employee Code of Conduct has been regularly reviewed to ensure it remains fit for purpose, and over the last few years a mandatory training course has been developed to ensure that all employees understand and practice the principles and standards of the code. Assessment: As the last review took place in 2022, a review in 2024 resulted in several amendments and additions to the Employee Code of Conduct that were agreed following consultation with senior management of the council and the relevant Trade Unions to ensure the Code remains fit for purpose. The general intent to retain a consistent set of high standards, applicable to all, has been maintained in the updated Employee Code of Conduct, the report (approved at Finance and Resources Committee in February 2025) summarises the specific changes and additions that have been made to the 2025 Employee Code of Conduct. 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 on conflicts of Interest was first introduced to the Employee Code of Conduct in May 2018. The Employee Code of Conduct was most recently updated in January 2025 (link to file) and this continues to reiterate employee responsibilities in relation to conflicts of interest and outlines the necessity to comply with the relevant reporting procedures. 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 June 2025 advising of the updated Employee Code of Conduct and 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 2025. Review timeframe: Annual. Assessment: 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 (in June 2025) which covers the annual review of the Strategic Governance Framework) provided an annual update in this respect. RAG: All Chief Officers ✓ ✓ ✓ ✓ 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 Latest version: March 2025. Review timeframe: Annual. Assessment: A process is in place whereby Chief Officers are required to submit their up to date Service Registers annually (as part of the Chief All Chief Officers ✓ ✓ ✓ ✓ Page 47 of 108
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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 must be done as soon as possible and within one month of being offered the gift or hospitality. Further details on what should be recorded were included in the updated version of the Employee Code of Conduct in May 2018. The Employee Code of Conduct was most recently updated in January 2025 (link to file) and this continues to reiterate employee responsibilities in relation to gifts and hospitality. This updated version also provides further guidance on what gifts are deemed reasonable to accept and outlines the necessity to comply with the relevant reporting procedures. 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 June 2025 advising of the updated Employee Code of Conduct and reminding all employees of their obligations in respect of gifts and hospitality; this also provided links to the supporting guidance and employee declaration form. 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 (in June 2025) which covers the annual review of the Strategic Governance Framework) provided 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/ 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. 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) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 48 of 108
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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 • Website: https://www.northlanarkshire.gov.uk/your-council/councillors-and- committees Counter Fraud Policy 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 Latest version: September 2023. 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: Chief Officer (Audit 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) - June 2024: link to file • Whistleblowing Procedure (Public Interests Disclosure) - March 2023: link to file • Whistleblowing Procedure (Public Interests Disclosure) - March 2022 (report says 2020 but it is the 2022 file): link to file Latest version: June 2024. Review timeframe: Annual. Assessment: Review in June 2024 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 later in 2025. 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. Reflecting the changes to the council’s senior management team structure as outlined in the annual governance update report (link to file) to committee in September 2024, 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, People Resources, and Strategy 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 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 49 of 108
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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 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. 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 and also the latest context, challenges, and next steps, March 2025: 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 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. • Six monthly update on delivery of the Programme of Work - March 2025: link to file • The latest North Lanarkshire context, challenges, and next steps - March 2025: link to file • Six monthly update on delivery of the Programme of Work - September 2024: link to file • Programme of Work to 2028 Delivery Plan - March 2024: link to file • Programme of Work to 2028 approved in March 2023: 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 respect of achievements and latest context in cycle 1 each year. Assessment: 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 in March 2024. As per the commitment set out in the March 2024 report, a six monthly update on the delivery of the Programme of is provided to the Policy and Strategy Committee to support their role in relation to “development, co- ordination, and monitoring of The Plan for North Lanarkshire” and to keep under review such “programmes as the Committee considers necessary to achieve the council’s long-term aims and objectives”. The Programme of Work to 2028 is supported by a governance framework which sets out, inter alia, roles and responsibilities, alignment across other corporate processes, and the corresponding monitoring, reporting, controls, and quality assurance arrangements. The latest six monthly update on the delivery of the Programme of Work was reported to Policy and Strategy Committee in March 2025; the next is due in cycle 3 of 2025. As per the report to Policy and Strategy Committee in March 2025, a mid-term review of the Programme Chief Executive ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 50 of 108
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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 of Work is underway in light of the latest context and challenges; this is scheduled to be reported back to Committee in cycle 4 of 2025. RAG: 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. 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 October 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 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 March 2024. Review timeframe: Annual. Assessment: The Strategic Policy 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 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. Traditionally the Policy and Strategy Committee have received an update to the Strategic Policy Framework in cycle 1 each year at the same time as the suite of Programme of Work reports. As the Strategic Policy Framework is now well established and aligned to The Plan for North Lanarkshire, any significant changes from year to year are captured in the Programme of Work as a matter of course. To ensure ongoing alignment though, any key points arising from the policy framework review programme will be reflected within the aforementioned mid-term Programme of Work review. RAG: Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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. • Update provided to the Audit and Scrutiny Panel in October 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 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: October 2024. 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 Programme of Work progress and performance reporting. RAG: Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ 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 council in demonstrating compliance with the Accounts Commission Statutory Direction and it 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 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 each year. This schedule notes that it is an indicative schedule prepared as at the time it is prepared and that matters arising throughout the year may impact on expected reporting dates. An update to the reporting schedule is expected to be submitted to the Audit and Scrutiny Panel in cycle 3 of 2025; this will include due consideration of the impact of the newly published Accounts Commission Statutory Direction for 2025/26 to 2027/28. 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. Chief Officer (Strategy and Engagement) / all Chief Officers ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 51 of 108
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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 Assessment and Prioritisation Process). • Performance Reporting Schedule reported to the Audit and Scrutiny Panel in February 2024: link to file • Latest quarterly performance assurance review, May 2025: 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 the Scrutiny Work Programme clear and transparent. • Latest scrutiny work programme and Assessment and Prioritisation Process - February 2025: link to file RAG: 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 2024: link to file • 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 October 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 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 the Audit and Scrutiny Panel in June 2024. 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 2025. RAG: Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 2023/24 reported to the Audit and Scrutiny Panel in June 2024: link to file • Annual Governance Statement 2022/23 reported to the Audit and Scrutiny Panel in June 2023: link to file • Annual Governance Statement 2021/22 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 2020/21 reported to the Audit and Scrutiny Panel in June 2021: link to file • Annual Governance Statement 2019/20 reported to the Audit and Scrutiny Panel in September 2020: link to file Latest version: Annual Governance Statement for 2023/24 reported to the Audit and Scrutiny Panel in June 2024. Review timeframe: Annual. Assessment: Annual Governance Statement for 2024/25 is scheduled to be presented to BMT/CMT June 2025 to allow for inclusion in unaudited Annual Accounts for 2024/25 and submission to external auditors by end June 2025. The Annual Governance Statement for 2024/25 is thereafter scheduled to be reported to the Audit and Scrutiny Panel in June 2025. RAG: Chief Executive / Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Project Management Framework Through the basic principles of good project management and good governance, 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 and templates on InsideNL: Project Management Latest version: New Framework launched council wide in December 2022, with a subsequent update in June 2024. Review timeframe: Every two years. 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 Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 52 of 108
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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 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 implemented that 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 for the Project Management Framework and Programme of Work - annual Audit and Scrutiny Panel review - February 2025: link to file • 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 October 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 The Plan for North Lanarkshire. Since the launch of the new Project Management Framework in December 2022, a number of developments arose arisen that necessitated a review and update to the Framework in 2024 to ensure it continues to remain fit for purpose and that the council’s approach to project management remains current, relevant, and deliverable. This included the need to reflect feedback received through the project management training programme, reiterate the requirement to undertake a post project evaluation, ensure alignment to the new Quality Assurance arrangements and the role of the Audit and Scrutiny Panel therein, incorporate the gateway check process from the Invest in North Lanarkshire Programme of Work, ensure Data Protection Impact Assessments (DPIAs) are given due consideration at the beginning (not the end) of a project, ensure ongoing alignment of the impacts in the report template with the Project Brief and Project Business Case, ensure that project management and change management work together to support delivery of the Programme of Work to 2028, and reflect, where required, the governments arrangements for the Programme of Work to 2028. 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, with an annual report provided thereafter in February 2025. 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. • Update on future updates included in the scrutiny work programme - February 2025: link to file • 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 October 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 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 was presented to the Audit and Scrutiny Panel in February 2024 with an update reported thereafter in October 2024 and in the scrutiny work programme report in February 2025. 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 will be included in the annual frameworks position statement report to the Audit and Scrutiny Panel scheduled for cycle 4 each year. RAG: Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 Latest version: National web portal last updated in April 2025. 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 Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ Page 53 of 108
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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 (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 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: 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. RAG: Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 2025: link to file • 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 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 31 March 2025 as at May 2025: 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 2023/24 - September 2024: link to file • 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 2025. Review timeframe: Annual. Assessment: The latest version of the Treasury Management Strategy approved in February 2025 covers the period for 2025/26 and includes the Treasury Management Indicators and Prudential Indicators 2025/26 to 2029/30. This report fulfils the key requirements of the Local Government Act 2003 in that it outlines the Treasury Management Strategy for 2025/26 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 and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 Revenue Budget Strategy (a key element of the overarching Financial Strategy) states that consideration will continue to be given to the planned, sustainable use of available balances. The Reserves Policy addresses this commitment, ensuring available balances are managed and utilised in accordance with effective governance principles, and continue to support financial plans which are affordable and sustainable. The policy is subject to annual review to ensure available balances are managed and 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. However, given the scale of financial sustainability risk it is the intention to conduct a more significant review of the policy during the course of 2025/26. RAG: Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 54 of 108
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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 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. Since 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. • Reserves Policy - January 2020: link to file Revenue 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 Now known as the Revenue Budget Strategy, it has been reviewed and updated annually since: • June 2024: link to file • 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 2024/25 to 2026/27 budget savings - February 2025: link to file • Review of 2024/25 to 2026/27 budget savings - September 2024: link to file • 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 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 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. • Discretionary Fees and Charges Policy - September 2023: link to file Latest version: June 2024. 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 report in June 2024 provides an update on the implementation of the key principles and framework of the Revenue Budget Strategy approved by Committee in June 2019, which have underpinned decision making, ensuring elected members have information to assist them in making robust and financially sustainable decisions in setting a balanced budget. 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 sustainable solutions to manage the longer term financial challenges. In presenting the Medium-Term Financial Plan to Policy and Strategy Committee in June 2025, the Section 95 Officer confirmed a further high-level review of the Revenue Budget Strategy had been completed and no further updates were required at this time. The next review is scheduled to be presented to the Policy and Strategy Committee in June 2026. An update is scheduled to be provided to Finance and Resources Committee in cycle 3 of 2025 on the implementation of savings. RAG: Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 Service 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 and, during 2025/26, will also include summary financial information on the council’s subsidiary companies. 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 2024 to 28 February 2025 (Period 12), May 2025: 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, 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 2024: link to file Latest version: Period end report in May 2025 and annual report for 2023/24 in September 2024. 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 and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 Latest version: February 2025. Review timeframe: Annual. Assessment: Report approved in February 2025 Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 55 of 108
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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 information to enable the council to set its Revenue Budget and Council Tax for the year. • February 2025: link to file set the Revenue Budget and Council Tax for 2025/26 and outlined the updated forecast budget position for 2025/26 to 2027/28. 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 Council in cycle 1 in each year. RAG: Medium-Term Financial Plan Longer term planning is integral to the council’s Financial Strategy and the 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 and, as such, the plan has subsequently been reviewed and updated annually: • June 2025: link to file • June 2024: link to file • June 2023: link to file • September 2022: link to file Taking the previously reported position as the new baseline, the latest plan on the key financial planning assumptions focussing on those factors which have the greatest potential to impact the council’s forecast financial position in the medium term. This includes future revenue grant funding, pay and non-pay inflation. A range of risk- based scenarios have been considered, resulting in envisaged, pessimistic and optimistic positions. Latest version: June 2025. Review timeframe: Annual. Assessment: The Medium-Term Financial Plan approved in June 2025 covers the period 2026/27 to 2030/31. 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. The Medium-Term Financial Plan is key in supporting the council’s Programme of Work and, as such, a review is undertaken each year of the planning assumptions therein and the scenarios relating to the anticipated budget position are updated annually. RAG: Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 Capital Strategy for 2024/25 to 2028/29 was approved in March 2024: link to file The Capital Strategy 2024/25 to 2028/29 provides the framework to ensure the council creates an asset base that meets the shared ambition for North Lanarkshire to be the place to live, learn, work, invest, and visit. This musters combined resources and delivers change in a way that recognises the need for partnership and co-operation to address challenges through integrated solutions that will make a difference to the lives of people who live in North Lanarkshire’s communities. Latest version: March 2025. 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 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 revised Strategic Capital Investment report to Policy and Strategy Committee in March 2025 [ link to file ] confirmed that following a review of the Capital Strategy no changes were required. The latest update includes a review of the key principles and reflects the requirements of the new Prudential Code for Local Authorities. RAG: Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Strategic Capital Investment Programme The principles of the council’s strategic capital investment programme are underpinned by the Capital Strategy. The Capital Strategy supports the development of capital investment proposals up to 2028/29 based on available resources aligned to The Plan for North Lanarkshire, Best Value, the Financial Regulations, the Corporate Asset Management Plan, and the Medium-Term Financial Plan established within the overarching Financial Strategy. • The latest update to the Strategic Capital Investment Programme for 2024/25 to 2028/29 was approved at committee in March 2024: link to file • An annual update to the programme was considered by committee in March 2025: link to file Established in 2019/20, the Community Investment Fund is a major contributary factor for investment across North Lanarkshire’s communities. Since established the Community Investment Fund has remained under review to ensure the underpinning Latest version: March 2025. Review timeframe: Annual. Assessment: Capital investment proposals up to 2028/29 are set out in the Strategic Capital Investment Programme for 2024/25 to 2028/29 approved in March 2024. An annual update to the programme was considered by committee in March 2025. 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 Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 56 of 108
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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 assumptions used in determining the potential funding available remain up to date; an annual report provides a regular update in this respect. The reports in September 2023 and December 2024 also demonstrating the extent of place-based and service focussed transformational programme delivery highlights to date. • December 2024 - link to file (report shows the date as 05/12/23; but this link is the actual 05/12/24 report) • September 2023 - link to file • September 2022 - link to file committee each year. This outlines updated financial projections linked to emerging economic trends. RAG: 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. • The Strategic Capital Investment Programme report in March 2025 also includes an update to the Strategic Capital Delivery Group (SCDG) terms of reference: link to file • March 2023: link to file Latest version: March 2025. 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 2025 to reflect changes to the council’s senior management team structure as outlined in the report to committee in September 2024 (link to file), as well as an update to the group’s objectives to reflect the revised process for monitoring capital programme delivery and financial management of the capital programme, to confirm the roles of subject matter experts on the group, and to provide clarity of the new emerging priorities protocol agreed by the SCDG to manage unfunded burdens. RAG: Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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, ensuring resources are directed to where they are most required, and informing updates to Elected Members through committee where appropriate. Capital programme monitoring reports are standing items on the BMT agenda every 4 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. • Capital programme 2024/25 monitoring report - May 2025: link to file • Capital programme 2024/25 monitoring report - February 2025: link to file A regular exceptions report is also considered by the BMT which supports senior management oversight and scrutiny of capital projects with a budget over £0.100m that have a red delivery status. Latest version: Period end report in February 2025 and annual report for 2024/25 in May 2025. 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 and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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. • Annual accounts (audited) - October 2024 link to file • Annual accounts (audited) - October 2023 link to file Latest version: October 2024. Review timeframe: Annual. Assessment: The preparation of the Annual Accounts is a key statutory responsibility for the council. The audited annual Accounts for 2023/24 were approved by the Audit and Scrutiny Panel in October 2024 for signing. The unaudited Annual Accounts for 2023/24 were presented to the external auditors by end June 2024, in line with statutory requirements. This followed due consideration of the unaudited Annual Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 57 of 108
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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 • Annual Accounts (audited) - October 2022 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 Accounts for 2023/24 by the Audit and Scrutiny Panel in June 2024. RAG: 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 to be reviewed in December 2025 and reported to committee in cycle 1 of 2026. 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 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. • 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 2024: link to file • One Workforce report - December 2023: link to file Latest version: December 2024. 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 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 with an update on progress against the plan provided in December 2024. 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. As at spring 2025, further work is currently underway to review and update each service’s strategic workforce plans to ensure an approach to workforce / resource planning that is sustainable and further supports the scenario planning / forecasting work previously carried out in 2023 in respect of future planning and the development of the Leadership and Operating Model for the Community Hubs. A further annual update report is scheduled to be reported to the Policy and Strategy Committee in December 2025. RAG: Chief Officer (People Resources) ✓ 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 version of the GSCOs (17th edition – effective from April 2025) is publicly available on the council’s website: https://www.northlanarkshire.gov.uk/business/procurement/key-procurement- documents Latest version: General Contract Standing Orders (GCSO) were approved at the former Policy and Resources Committee in June 2018. These were subsequently updated and the 17th edition - effective from April 2025 - 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) ✓ ✓ ✓ Page 58 of 108
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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 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 ]. 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 2025/26 - February 2025: link to file • Procurement Strategy 2024/25 - February 2024: link to file • Procurement Strategy 2023/24 - September 2022: link to file The current Procurement Strategy 2025/26 is publicly available on the council’s website: https://www.northlanarkshire.gov.uk/business/procurement/key-procurement- documents Latest version: February 2025. 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 2025 covers the period from April 2025 to March 2026. 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 2023/24 - September 2024: link to file (report shows the date as 13/09/23; but this link is the actual 11/09/24 report) • Annual procurement report 2022/23 - September 2023: link to file • Annual procurement report 2021/22 - September 2022: link to file The last annual procurement report is publicly available on the council’s website: https://www.northlanarkshire.gov.uk/business/procurement/key-procurement- documents Latest version: September 2024. 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 2023/24 was approved at committee in September 2025. 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: Chief Officer (Assets and Procurement) ✓ ✓ ✓ 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 Latest version: February 2025. 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 2025 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 (2023/24). The report in February 2025 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) ✓ Page 59 of 108
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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 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 2023/24 - February 2025: link to file • 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 ). 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 and Engagement Strategy The council’s Communications and Engagement Strategy outlines an approach to achieve maximum communication support for council priorities, ambitions, and the activities and projects outlined in the Programme of Work. The strategy sets out a clear direction for public-facing and internal communications and engagement activity as well as the core principles underpinning the approach to deliver effective communications. Ensuring alignment with The Plan for North Lanarkshire and the Programme of Work is key, together with demonstrating the effectiveness and success of communications and engagement activity, which will be evaluated and measured annually to evidence positive outcomes. • Communications and Engagement Strategy - June 2024: link to file • Communications Strategy - June 2019: 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. Latest version: June 2024. Review timeframe: Process in place to update the communications plan on a regular basis. Assessment: The council’s Communications Strategy was approved in June 2024. Key to supporting the Programme of Work, the strategy is scheduled to be reviewed and updated in line with the current Programme of Work to 2028 timeframe. A programme of communications activities, campaigns, and projects are undertaken each year to support The Plan for North Lanarkshire and Programme of Work, the latest annual evaluation report demonstrating outcomes in this respect is scheduled to be reported to the Policy and Strategy Committee in June 2025. RAG: Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ 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 Latest version: March 2024. Review timeframe: Strategy reviewed and updated when it reaches the end of its current life. Assessment: 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. Chief Officer (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 60 of 108
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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 RAG: 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 (Finance and Technology) ✓ ✓ ✓ ✓ ✓ ✓ Data Governance Board The purpose of the Data Governance Board is to maintain strategic oversight and implementation of the council’s approach in relation to data governance and to secure the relevant assurances that effective arrangements are in place for the safe and secure collection, storage, use, and sharing of data, including processes to safeguard personal data and support data quality. This includes responsibility for developing and overseeing the implementation of strategies, policies, procedures, and standards in relation to data governance and data management, and for directing improvements in accordance with legislative, regulatory and corporate governance requirements and in support of the organisation’s corporate vision and strategy. The Data Governance Board is also responsible for directing and overseeing the work of its supporting Data Management and Compliance Group and ensuring measures are in place to monitor compliance across the council and its arm’s length external organisations. Meetings are held approximately every 8 weeks. Minutes and meeting papers available. Latest version: Recurring group. Review timeframe: Terms of reference reviewed annually; group membership is reviewed in line with staffing changes across the organisation. Assessment: The former Senior Information Risk Owner (SIRO) reviewed the Data Governance Board during 2024 which led to changes to its terms of reference, membership, and work programme. An update in this respect was provided in the Senior Information Risk Owner’s (SIROs) latest annual governance and performance report in February 2025 [ link to file ]. As noted within this report, responsibility for the role of the council’s SIRO changed to the Chief Officer (Legal and Democratic) from April 2025. As such, the Chief Officer (Legal and Democratic) presented proposals to the Data Governance Board meeting in May 2025 for further enhancements to strengthen the council’s approach to date governance and information security (through both the Data Governance Board and the Data Management and Compliance Group); these proposals were approved by the Board and are being implemented with immediate effect. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ ✓ Information and Cyber 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. • Information Security Policy - June 2023: link to file 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. A joint review and assessment undertaken in 2022/23 (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 recognised the risks associated with cyber security threats, and operates practices commensurate with the good practice recommended by bodies such as the National 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. A review was undertaken on this policy in March 2025 and the updated policy now incorporates both information security and cyber security to reflect the importance of cyber security in the council’s daily operations and strategic approach to service delivery as defined in both the Digital and IT Strategy and The Plan for North Lanarkshire. As the council takes a digital by default approach to service delivery and much of information is now in a digital format, this brings cyber threats that must be mitigated and managed to protect the council’s information and IT assets. An updated Information and Cyber Security Policy was considered by the Data Governance Board thereafter, with a report expected to be submitted to committee in cycle 3 of 2025. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 61 of 108
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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 Audit Office. The outcome from this review was reported to the Audit and Scrutiny Panel in February 2023: • Cyber security assessment - February 2023: link to file 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, 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. • Senior Information Risk Owner (SIRO) Information Governance Assurance and Performance Report 2024 - February 2025: link to file • 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 Latest version: February 2025. Review timeframe: Annual. Assessment: As noted within the February 2025 annual report, responsibility for the role of the council’s SIRO changed to the Chief Officer (Legal and Democratic) from April 2025. The annual reports to the Finance and Resources Committee enables Elected Members to consider an up to-date position in respect of the council’s information governance and information risk management arrangements. RAG: Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ ✓ ✓ Data protection Prior to April 2025, the Chief Officer (Legal and Democratic) was the council’s Data Protection Officer (DPO). As noted within the February 2025 annual Senior Information Risk Owner (SIRO) report, responsibility for the role of the council’s SIRO changed to the Chief Officer (Legal and Democratic) from April 2025 resulting in the role of the DPO now sitting with the Principal Solicitor (Information Governance) given their subject matter expertise. The DPO 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. The Data Protection Policy is currently under review as part of the Information Commissioners Officer (ICO) action plan. This updated policy is scheduled to be considered by the Data Governance Board at its meeting in September 2025 with an update reported to committee in cycle 4 of 2025. RAG: Chief Officer (Legal and Democratic ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 2023/24 - September 2024: link to file • Annual data protection report 2021/22 - March 2023: link to file • Annual data protection report 2020/21 - November 2021: link to file Latest version: September 2024 Review timeframe: Annual. Assessment: The annual data protection report forms part of the Strategic Performance Framework reporting schedule. The latest report in September 2024 (by the council’s DPO) provided an update in relation to data sharing, breaches, complaints, and training. The next report is scheduled to be reported to the Finance and Resources Committee by the end of 2025/26. 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 2023/24 - February 2025: link to file • Annual Freedom of Information report 2022/23 - November 2023: link to file • Annual Freedom of Information report 2021/22 - November 2022: link to file Latest version: February 2025. Review timeframe: Annual. Assessment: The annual freedom of information report forms part of the Strategic Performance Framework reporting schedule. The latest report in February 2025 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 Chief Officer (Legal and Democratic) ✓ ✓ ✓ ✓ ✓ Page 62 of 108
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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 Information Commissioner processed. The next report is scheduled to be reported to the Finance and Resources Committee by the end of 2025/26. RAG: 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/ 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 Officers / Depute Chief Officer with full delegated powers to consider and agree the job outline, employee specification, advertising proposals and interviewing procedures, agree the shortlist of candidates to be interviewed, interview the shortlisted candidates, and make the appointment. 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 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: Chief Officer (People Resources) ✓ ✓ ✓ ✓ ✓ 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-learning 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 that time. While awaiting further guidance from the Scottish Government (which wouldn’t be published until 2021), 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 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- Chief Officer (People Resources) ✓ ✓ ✓ ✓ Page 63 of 108
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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 recommended in the FSD interim guidance. In preparation for the final guidance being published in 2021, 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 change 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. Information in terms of the updated guidance was reported to committee in January 2022: link to file 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: 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: The Equality Strategy approved in August 2019 covers the period from 2019 to 2024. Assessment: The Equality Strategy is on the Strategy Policy Framework review programme and has been reviewed during 2024/25. This work included agreement of a revised set of equality outcomes for the council which were approved by the Wellbeing and Tackling Poverty Committee in April 2025 [ link to file ]. A refreshed Equalities Strategy is scheduled to be presented to the Policy and Strategy Committee in cycle 4 of 2025. 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. EqIAs 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 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 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 was produced. Based on recommendations within the report, the Equality Impact Assessment template and guidance has been refreshed, and a full Equality Impact Assessment training programme was delivered during 2024/25 for third and fourth tier officers. 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 April 2025 fulfils this requirement. • Public Sector Equality Duties - April 2025: link to file • 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 Latest version: Various. Review timeframe: Various. Assessment: The Public Sector Equality Duty combined report in April 2025 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 64 of 108
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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 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 an associated plan of activities and campaigns to support the advancement of the 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 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 and provided an updated 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 2024/25 - August 2024: 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 2025: link to file Latest version: August 2024. 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 2024/25) was considered by the Audit and Scrutiny Panel in August 2024. Quarterly risk management update reports continue to be presented to the Audit and Scrutiny Panel each cycle. The Corporate Risk Register for 2025/26 is scheduled to be reported to the Audit and Scrutiny Panel in cycle 3 of 2025. 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 - February 2025: 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 first 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 were scheduled to be reported to the Panel every six months. RAG: Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 65 of 108
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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 Project risk registers As part of the corporate Project Management Framework, all projects are required to complete a Position Risk Assessment (PRA). This is required 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: Ongoing. Review timeframe: Registers are reviewed at varying times within each service / project / programme. Assessment: The approach to risk management when managing projects was reviewed and updated when the Project Management Framework was subject to a significant review in 2022. The Position Risk Assessment (PRA) documentation and guidance were 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 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 ] and an annual assurance report in February 2025 [ link to file ]. RAG: Chief Officer (Audit and Risk) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 - April 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. An updated performance report is scheduled to be reported to committee in cycle 3 of 2025. RAG: Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ 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 (December 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 into 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 2025: 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 December 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. A follow up self-evaluation of the Audit and Scrutiny Panel is underway and scheduled to be reported in cycle 3 of 2025. RAG: Chief Officer (Audit and Risk) / Chief Officer (Finance and Technology) / Chief Officer (Strategy and Engagement) / ✓ ✓ ✓ ✓ Audit and inspection reports Latest version: Various. All Chief Officers ✓ ✓ ✓ ✓ Page 66 of 108
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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 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: • Scottish Housing Regulator annual assurance statement 2023/24 - August 2024: link to file • Scottish Housing Regulator annual landlord report 2023/24 - November 2024: link to file 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: 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 that a new national approach to auditing Best Value came into effect as part of the external auditor appointments for the five-year term from 2022/23. This approach is twofold and means that: • Auditing Best Value is integrated within the wider scope of the external auditor’s annual audit work which is reported in their Annual Audit Report (AAR). • Thematic Best Value audit work is undertaken each year by the external auditor as per the Accounts Commission’s requirements to provide assurance on areas of risk / interest across councils as at a defined point in time, thus enabling comparisons across Scotland. Further updates update to the Audit and Scrutiny Panel in February 2024 [ link to file ] and February 2025 [ link to file ] reported on the key findings from years one and two of the thematic audits and advised of the theme for the year three audit. Since the new approach was implemented, the various outcome reports (listed below) have been submitted to the Policy and Strategy Committee and/or Audit and Scrutiny Panel: • 2022/23 Annual Audit Report (AAR) to Audit and Scrutiny Panel - October 2023: link to file • 2023/34 Annual Audit Report (AAR) to Audit and Scrutiny Panel - October 2024: link to file • 2022/23 outcome report on the theme in respect of the leadership of the development of new strategic priorities was presented to the Audit and Scrutiny Panel in October 2023 [ link to file ] and the Policy and Strategy Committee in December 2023 [ link to file ]. • 2023/24 outcome report on the theme for workforce innovation (specifically how the council is responding to current workforce challenges through building capacity, increasing productivity, and innovation) was presented to the Audit and Scrutiny Panel in August 2024 and then remitted to the Policy and Strategy Committee in September 2024 [ link to file ]. The council’s Best Value reports are also available on the website: • Council’s website: https://www.northlanarkshire.gov.uk/your-council/performance- of-the-council/best-value/national-audit-results Latest version: October 2024. Review timeframe: Annual. Assessment: Following the conclusion of the national five year Best Value Assurance Report (BVAR) process, a new national approach to auditing Best Value came into effect as part of the external auditor appointments for the five-year term from 2022/23. This approach means that each year the council undergoes an assessment of particular aspects of Best Value in order to provide the Accounts Commission with the relevant assurances in terms of performance and the quality of services to the public. Outcome reports from Best Value audits have been submitted to the Audit and Scrutiny Panel in cycle 3 each year and the Policy and Strategy Committee thereafter. The outcome report from the 2025 Best Value audit is scheduled to be reported in cycle 3 of 2025. RAG: Chief Executive / Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 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 was reviewed and an update for 2024-25 to 2026-27 was reported to the Audit and Scrutiny Panel in October 2024. 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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 Charter resides with the Audit and Scrutiny Panel. • Internal audit charter - May 2025: link to file • Internal audit charter - August 2024: link to file The Internal Audit Strategy (Strategy) is a formal document that defines Internal Audit’s strategic objectives and outlines how these will be achieved. While the current Public Sector Internal Audit Standards (PSIAS) have no requirement for Internal Audit functions within local authorities to have an Internal Audit Strategy, it is considered that such a statement benefits both key stakeholders and Internal Audit staff, providing a clearer overview of what Internal Audit is trying to achieve, and how, and by establishing key principles against which the performance of Internal Audit can be assessed. • Internal audit strategy - October 2024: link to file • Internal audit strategy - June 2019: 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 2025/26 - May 2025: link to file • 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 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 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 2023/24 (and annual opinion) - June 2024: link to file • Internal Audit annual report 2022/23 (and annual opinion) - June 2023: link to file • Internal Audit annual report 2021/22 (and annual opinion) - September 2022: 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. The results of the latest EQAR were reported to the Audit and Scrutiny Panel in May 2024, this is a process which is undertaken every 5 years. The Internal Audit annual plan for 2025/26 was reported to the Audit and Scrutiny Panel in May 2025. The Internal Audit annual report for 2024/25 (and annual opinion) is scheduled to be reported to the Audit and Scrutiny Panel in June 2025. RAG: 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 - August 2024: link to file • 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 • Internal Audit annual report 2023/24 (and annual opinion) - June 2024: link to file • Internal Audit annual report 2022/23 (and annual opinion) - June 2023: link to file • Internal Audit annual report 2021/22 (and annual opinion) - September 2022: link to file Latest version: August 2024. 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 Latest version: October 2024. Review timeframe: Annual. Assessment: Draft Annual Audit Report (AAR) for the council was considered by the Audit and Chief Officer (Audit and Risk) / Chief Officer (Finance and Technology) / ✓ ✓ ✓ ✓ Page 68 of 108
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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 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. • Draft AAR for 2023/24 was considered by the Audit and Scrutiny Panel in October 2024: link to file • Final AAR for 2023/24 was published by Audit Scotland in January 2025; 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 Scrutiny Panel in October 2024 with the final version for the council and the IJB published on the Audit Scotland website in January 2025 and December 2024 respectively. The Annual Audit Report (AAR) for 2024/25 is scheduled to be reported to the Panel in the autumn of 2025. RAG: Chief Officer (Strategy and Engagement) 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 setting its budget on 15 February 2024, the Council requested that the remaining ALEOs (Fusion Assets Limited, Routes to Work Limited and North Lanarkshire Properties LLP) be formally reviewed, with their contributions to the council’s strategic priorities and The Plan for North Lanarkshire, both now and in the future, assessed. This review was undertaken during 2024/25 with the outcome reported to the Policy and Strategy Committee in March 2025. • Aleo’s review - March 2025: link to file Latest version: March 2025. Review timeframe: Annually. Assessment: Each of the council’s remaining ALEOs (Fusion Assets Limited, Routes to Work Limited, and North Lanarkshire Properties have completed the annual Certificate of Assurance and Checklist. RAG: Chief Officer (Place) / Chief Officer (Assets and Procurement) / Chief Officer (Children, Families, Justice and Integrated Practice) ✓ ✓ ✓ ✓ ✓ ✓ 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/getting-involved-your-community • 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 2023/24 - February 2025: link to file • Annual report 2022/23 - February 2024: link to file • Annual report 2021/22 - February 2023: 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 (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ ✓ 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 2025: link to file • Latest Local Outcome Improvement Plan performance report - February 2025: 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 May 2025: https://www.northlanarkshire.gov.uk/your-community/working- communities/your-area/community-boards Latest version: April 2025. 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 Chief Officer (Strategy and Engagement) ✓ ✓ ✓ ✓ ✓ ✓ Page 69 of 108
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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 Local Outcome Improvement Plans: https://www.northlanarkshire.gov.uk/your- community/working-communities/your-area/local-outcome-improvement-plans-loips 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 2025 in 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 by the end of 2025/26. 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 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 ]. Moving forward it is worth noting that Serious Organised Crime is a Scottish Government strategy while Counter Terrorism is national and, as such, discussions are underway regarding a future separation. 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 ✓ ✓ ✓ ✓ Page 70 of 108
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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 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 which has been incorporated into the Chief Officer annual Certificate and Checklist process since the 2023/24 year-end. An Internal Audit was undertaken on Business Continuity Planning in September 2022 [ link to file ]. This identified a number of recommendations for action. A subsequent Internal Audit was undertaken on Business Continuity Planning in May 2025 [ link to file ] which included an update on the progress made in implementing the previous audit’s recommendations. This was reported to the Audit and Scrutiny Panel in May 2025. RAG: Depute Chief Executive ✓ ✓ ✓ ✓ 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. The council has well documented and comprehensive business continuity planning measures in place, all of which 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 • Update - October 2024: link to file Latest version: October 2024. Review timeframe: An update on the council’s arrangements relevant to Power Resilience Strategy and Business Continuity was reported to the Environment and Climate Change Committee in October 2024. Assessment: A fundamental principle of any resilience response is the review phase where the purpose is to highlight areas of improvement in the overall response to an incident, identify their cause and introduce changes which will prevent a recurrence in any future response. To complement this review process, which the council undertakes as a matter of course, an internal audit review was undertaken and the update to the Environment and Climate Change Committee in October 2024 [ link to file ]. This also provides an update in respect of the recommendations arising from this audit as does the report to the Audit and Scrutiny Panel in May 2025 after a follow up internal audit [ link to file ]. RAG: Depute Chief Executive ✓ ✓ ✓ ✓ ICT Disaster Recovery Corporate responsibility for Disaster Recovery Planning within the council lies with the Information Security and Risk team and the council’s ICT Disaster Recovery arrangements comprise IT application / system Disaster Recovery Plans and a separate ICT Major Incident Plan, which focuses on the ICT response elements of major systems breach. The ICT Disaster Recovery Plans provide detail on the recovery of IT systems which are council-owned. Latest version: October 2024. Review timeframe: Ongoing. Assessment: A review of the council’s arrangements in respect of Business Continuity and ICT Disaster Recovery was included in the external auditors Annual Audit Report for 2023/24 which was reported to the Audit and Scrutiny Panel in October 2024 [ link to file ]. This audit report recommended an improvement for action which is scheduled to be implemented during 2025/26. An Internal Audit review was undertaken on Business Continuity Planning in September 2022 [ link to file ]. This identified a number of recommendations for action. A subsequent Internal Chief Officer (Finance and Technology) / Chief Officer (Legal and Democratic) Page 71 of 108
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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 Audit was undertaken on Business Continuity Planning in May 2025 [ link to file ] which included an update on the progress made in implementing the previous audit’s recommendations and made new recommendations, including the need to better align business continuity and disaster recovery which is scheduled to be implemented during 2025/26. This was reported to the Audit and Scrutiny Panel in May 2025. 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. Engagement with local communities and groups is a key part of the development of the leadership and operating model for the Hub programme. Progress updates • June 2025: link to file • December 2024: link to file • June 2024: link to file • March 2023: link to file December 2021: link to file Latest version: June 2025. Review timeframe: Annual. Assessment: A three phased approach to the model over a 10 year period was initially approved in December 2021. Progress updates have been reported to the Policy and Strategy Committee on a regular basis since. RAG: Chief Officer (Strategy 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 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. • Economic Regeneration Delivery Plan (ERDP) 2023 to 2028 - February 2023: link to file • Action plan for 2025/26 - February 2025: link to file • Governance arrangements for the ERDP are supported by an annual performance report - August 2024: link to file Latest version: August 2024. Review timeframe: The Economic Regeneration Delivery Plan (ERDP) covers the period from 2023 to 2028. The ERDP is supported by an action plan and a performance report updated and reported to committee annually. Assessment: An item within the Strategic Policy Framework, the ERDP for 2023 to 2028 was approved in February 2023. The supporting action plan for 2025/26 was reviewed and updated in February 2025. 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 (Strategy and Engagement) ✓ ✓ ✓ ✓ 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 Latest version: Strategy for 2025-30 approved in November 2024. Review timeframe: Strategy will be reviewed and updated when it reaches the end of its current life. Assessment: The report to committee in November 2024 saw the approval of the new 5 year strategy for 2025-30 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 2030 when it reaches the end of its current life. RAG: Chief Officer (Housing) ✓ ✓ ✓ Page 72 of 108
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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 are provided for participation and involvement that are accessible to all. • Tenant Participation Strategy on the council’s website: Involving Tenants - Improving Services • Tenant Participation Strategy 2025-30 - November 2024: 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 2022 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. A review of the programme and its uptake will be carried out during the second half of 2025 and a refreshed approach to encourage greater take up will be developed in conjunction with Legal and Democratic. 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 2023, 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 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 Chief Officer (People Resources) ✓ ✓ ✓ ✓ Page 73 of 108
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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 development opportunities and a blended approach. https://learnnl.learningpool.com/login/index.php 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 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, fire safety, and the employee code of conduct). Both the BMT and CMT have maintained ongoing oversight and management during 2023/24 and 2024/25 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 council’s internal Workwell North Lanarkshire portal. • Workwell provision update - May 2021: link to file Latest version: Ongoing resource for employees. Review timeframe: As required. Assessment: Update on the Workwell provision was reported to committee in May 2021. NLC Announcements in July 2023 provided an update in terms of the Wokwell 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 and wellbeing strategy update - September 2024: link to file • Mental health strategy update - October 2023 : link to file • Employee mental health and wellbeing update - October 2022: 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 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 file 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). • Extension to the hybrid working scheme - March 2023: link to file 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 Latest version: Various. Review timeframe: As required. Assessment: An update on the council’s workforce mental health and wellbeing strategy was reported to Finance and Resources Committee in September 2024. A report to committee in 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 aligns to the dimensions of fair work in line with the Fairer Scotland Duty and a report will be provided to committee in due course. In the meantime, a pilot version of this has been developed and will be tested during 2025 before final approval at committee. This will replace the current Investors in People employee survey. Following the national Best Value thematic audit in 2024 on workforce innovation, improvements were recommended in respect of acting on staff feedback, monitoring the impact of the hybrid working approach, and including reporting on temporary workforce data. These are expected to be implemented by the end of 2025/26. The Best Value outcome report in this respect was submitted to the Audit and Scrutiny Panel in August 2024 [ link to file ]. Chief Officer (People Resources) ✓ ✓ ✓ ✓ Page 74 of 108
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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 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 its local communities in a way that is representative of a modern and evolving local authority. • Hybrid working scheme - February 2024: link to file The national Best Value thematic audit in 2024 focussed on workforce innovation and how councils are responding to workforce challenges. This report highlights a large area of activity across the council, e.g. in respect of the council’s workforce strategy and priorities, digital technology and the workforce, flexible working, innovative staff deployments, skills and capacity, joint workforce arrangements, and measuring the impact of workforce planning. • Best Value outcome report - August 2024: link to file RAG: Page 75 of 108
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☒ Yes ☐ No Ref SP/SL Date 26/06/25 Annual Governance Statement 2024/25 From Stephen Penman, Chief Officer (Strategy and Engagement) E-mail PenmanSte@northlan.gov.uk Telephone 07947 997750 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 2024/25, attached as Appendix 1, outlines the council’s governance arrangements for the last financial year and demonstrates how the council complies with the CIPFA 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 Chief Officer (Audit and Risk) which provides independent and objective assurance as to the adequacy and effectiveness of governance, internal control, and risk management arrangements within the council. • Annual Assurance Statements / Checklists whereby Chief Officers have confirmed that, to the best of their knowledge, corporate governance arrangements and financial controls in their services have been, and are, working well and there are, in their opinion, no significant matters arising which would require to be raised specifically. • The annual review of the Strategic Governance Framework and update to the elements and mechanisms in its supporting review programme which demonstrates the extent of the council’s compliance with the 7 principles, 21 sub-principles, and 91 behaviours and actions contained within the CIPFA Framework The Annual Governance Statement for 2024/25 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 77 of 108
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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. • Maintaining an up-to-date local code of governance that takes into account the (1) Consider and note the Annual Governance Statement for 2024/25, 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 2024/25, as set out in paragraphs 2.6 and 2.7. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 78 of 108
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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 2024/25 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 2024/25, the Annual Governance Statement for 2024/25 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 2024/25 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 2024/25. 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 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 Page 79 of 108
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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 enhanced how the evidence for each of these sources of assurance is reported in the Annual Governance Statement. This also enabled improvement actions and/or future planned developments in relation to the council’s governance arrangements and systems of internal control to be more clearly identified and thereafter stated in the Annual Governance Statement. This supported a specific Internal Audit recommendation following a review of corporate governance in 2023. With no adverse feedback received on the approach implemented for the 2023/24 process, this approach has continued for 2024/25. 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 for 2023/24 was enhanced with improvements that incorporated the points made at paragraph 2.2 above, and took on board some practices used in other local authorities. With no adverse feedback received on the approach implemented for 2023/24, this approach has continued for 2024/25. 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). Thus, stating that reasonable assurance can be placed on the adequacy and effectiveness of the corporate governance systems operating within the council, and that the council complies with relevant corporate governance principles in all significant respects. 2.5 A key piece of evidence in this respect is the annual Internal Audit opinion from the Chief Officer (Audit and Risk) which aims to provide independent and objective assurance as to the adequacy and effectiveness of governance, internal control, and risk management arrangements within the council. This reports that: • “The annual opinion is unqualified and states that reasonable assurance can be placed on the council’s governance, risk management, and internal control arrangements” for 2024/25. • “There is generally an overall sound system of governance, risk management and internal control in place. While some issues, non-compliance or scope for improvement were identified, individually these do not significantly impair the council’s system of internal control.” 2.6 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. Page 80 of 108
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• In this respect the Internal Audit annual report 2024/25 from the Chief Officer (Audit and Risk) specifies that Internal Audit “has responsibility for investigating 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 the relevant Chief Officer, with details of the work presented to the [Audit and Scrutiny] Panel in line with the Internal Audit Charter.” • The Internal Audit annual report 2024/25 from the Chief Officer (Audit and Risk) has confirmed that “One fraud investigation was undertaken during 2024-25. This … related to school funds and involved a report of missing monies. During the investigation, a member of staff confessed to taking funds on several occasions for personal use, and the audit work concluded that there was clear evidence that fraud had been committed. Appropriate action was taken under the council’s Discipline Policy and the member of staff involved resigned prior to the disciplinary hearing. In line with the council's Corporate Fraud Policy, this matter was referred to Police Scotland for further consideration, and details of the fraud were also reported to Audit Scotland.” 2.7 Having considered the information presented in paragraph 2.6 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 will be 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 2.8 The Annual Governance Statement for 2024/25 will now be included in process for the Annual Accounts for 2024/25. Once this is concluded the Annual Governance Statement for 2024/25 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 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 2024/25. Page 81 of 108
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Stephen Penman Chief Officer (Strategy and Engagement) 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 review programme. 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)? 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. Page 82 of 108
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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 review programme. 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 the Delivering Good Governance in Local Government: Framework (2016), and in accordance with the Best Value duty - 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. Page 83 of 108
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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 84 of 108
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Appendix 1 Annual Governance Statement 2024/25 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 85 of 108
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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 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 evidence gathered from 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 86 of 108
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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 a 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 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 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 was established in 2019 with a very clear vision - inclusive growth and prosperity for all - to bring equal benefits and a fairer distribution of wealth to all North Lanarkshire’s people and communities. • Founded on a place-based ambition, The Plan for North Lanarkshire has at its core an ambition to transform the physical environment of North Lanarkshire in a way that recognises the intrinsic value - and economic, social, and health benefits - gained in doing so. Page 87 of 108
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• This ambition recognises that implementing a place-based approach originates from the need to address spatial concentrations of disadvantage which, in recent years, have become further exacerbated by a growing complexity of problems being presented in terms of economical, health, and social issues. As such, a place-based approach aims to target an entire community and tackle issues that exist at the neighbourhood level (such as employment, education, skills, economic stability, housing, and health), and address fragmented service provision that leads to gaps or duplication of effort. • Investing in a place-based approach and focusing on the physical environment of local communities, and on better integrated and more accessible service systems therein, underpins the holistic approach (that crosses public sectors and service silos) being delivered through the Programme of Work. This approach aims to make The Plan for North Lanarkshire real for people, and North Lanarkshire a place which individuals can identify with - a place to live, learn, work, invest, and visit. 3.2 Prior to The Plan for North Lanarkshire being formally established in 2019, the shared ambition for inclusive growth and prosperity was set out in a report approved at committee in September 2018. This shared ambition was based on evidence through an original dataset which later evolved into the 28 health check indicators. This report outlined the future direction for North Lanarkshire to be a place where everyone is given equality of opportunity and where individuals are supported, encouraged, and cared for at each key stage of their life. The Plan for North Lanarkshire is deliberately one plan for one place as partners from the North Lanarkshire Community Planning Partnership endorsed this approach from the outset and signed up to the shared ambition therein for the North Lanarkshire area. • When The Plan for North Lanarkshire was established, the area’s demographic, social, and economic profile 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. • Since The Plan for North Lanarkshire was established, the 28 health check indicators have continued to provide a robust, consistent, and independent way of collectively providing the context for North Lanarkshire as a place as well as assessing change over time. The most recent results, reviewed by the Policy and Strategy Committee in March 2025, indicate that 50% of the indicators show improvement over the period of The Plan for North Lanarkshire. • In 2023, the trends in the 28 health check indicators (which showed that challenges remain) were key to reframing a new five-year Programme of Work (and its fifth iteration). 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. • The health check indicators have continued to play a key role in the council’s approach to strategic planning and informing delivery of the Programme of Work to 2028 to ensure that the stubborn scale of deprivation in areas that are hardest to reach is targeted through policy developments that are focused on tackling unstable trends. This is a critical aspect to assessing impact and ensuring the success of the place-based ambition of The Plan for North Lanarkshire, as both place-based regeneration and person-based policies need to cross policy sectors and be developed and implemented in tandem - as well as integrated with wider investment and poverty reduction strategies - if transformational change is to truly make a difference. As such, a mid-term review of the five-year Programme of Work is underway that is informed by the latest results for the 28 health check indicators as well as supplementary evidence and context. A broad overview of this review is set out in a report to the Policy and Strategy Committee in March 2025. 3.3 As the Programme of Work is the delivery vehicle that is making The Plan for North Lanarkshire real, it has been instrumental since its implementation in 2019 in stabilising the strategic direction of the council (including work in partnership) in the face of a fast paced, rapidly changing, and relentlessly uncertain future local government environment, while allowing for appropriate flexibility in the operational delivery of many complex inter-connected programmes, projects, activities, and plans to ensure a dedicated focus on transformational change that improves the lives of local people. Page 88 of 108
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• The five-year 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, risk management, internal controls, and quality assurance arrangements. • 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. Recent highlights, reported in March 2025, include the following: - Good progress being made in terms of five new community hubs being built at various sites across North Lanarkshire. - The 65th new supply development starting on site to deliver more new homes for social rent and increase the new supply programme to further support the regeneration of local communities and town centres, create jobs, and boost the local economy. - The 800th property purchased under the open market purchase scheme to increase the supply of affordable homes for rent, address housing needs, and support the regeneration of local communities. - Creating 17.2 kms of active travel routes to help establish a network of safe, accessible walking / wheeling / cycling routes to help people access employment, education, and leisure opportunities, improve health and well-being, and reduce carbon emissions. - Developing a new heritage and countryside trail, designed to showcase North Lanarkshire's rich history through engaging stories and interactive experiences. Set across 10 locations, this has been developed to attract tourists and locals to explore the area as well as promote active lifestyles and health and wellbeing. - Conducting the first trials of new materials designed to reduce carbon in the roads industry through a partnership with Transport for West Midlands, Amey, and Colas, as part of ADEPT Live Labs 2 (a three-year UK-wide programme funded by the Department for Transport aimed at decarbonising the local road network). - Establishing the Invest Here website ( https://www.investinnorthlanarkshire.co.uk/ ) to capitalise on North Lanarkshire’s position at the heart of Scotland with excellent transport links to support inward investment and show the range of opportunities available to support new businesses and key industry sectors to plant roots, grow, and support the local economy. This is supported by the new Invest in North Lanarkshire advisory service to provide bespoke advice to help streamline and accelerate the statutory consent process for developers. - Being the first council in Scotland to achieve the Breastfeeding Friendly Scotland Local Authority Award at the gold standard. - Delivering a range of technological developments to further support connectivity and digital inclusion across North Lanarkshire, including a chat bot functionality on the council’s website to enable residents to receive automated responses or chat to an advisor, extension of public wi-fi, three more immersive experience facilities, expansion of the inter-generational project that encourages older residents to use technology to enrich their lives and support social inclusion through one-to-one training with young people from local schools, smart lighting and Internet of Things pilots deployed to Palacerigg and Strathclyde Country Parks, and more processes / services becoming available for public interaction through the council website. - Various public and stakeholder feedback events on many significant local developments to allow residents to provide their views and shape the next steps, including in relation to Cumbernauld Town Centre, the Local Transport Strategy, the Local Development Plan, East Airdrie Link Road, new digital zones, and the Rediscovering Airdrie project. - Further developing the use of the three new hubs already built and in operation over the period of The Plan for North Lanarkshire. These hubs are now seeing delivery of integrated and inclusive whole family support accessible at the heart of local Page 89 of 108
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communities. Activities being delivered from hubs also includes partnership working in relation to employment pathways, community learning and development, and health improvement. - Growing the council tax income base by adding 4,853 housing properties over the duration of The Plan for North Lanarkshire, with 346 properties to the non-domestic rates income base over the same period. - Achieving a successful Best Value audit for the second year as part of the national approach. The 2024 audit focussed on workforce innovation and recognised that the council’s workforce planning approach is integrated with The Plan for North Lanarkshire, has a focus on developing the workforce of the wider North Lanarkshire area, and is supported by robust service workforce plans. The audit also noted that the council is proactive in developing its workforce as well as that of the wider North Lanarkshire area and works across a range of partnerships to deliver services for communities. - Delivering many community benefits which have been derived through Programme of Work activities - such as providing jobs and training through the new supply programme, creating opportunities for local businesses and supply chains through large scale regeneration programmes, targeted training and recruitment for pupils with additional support needs, and summer placement programmes for young people about to leave school. Financial benefits have also been gained, such as donations from various groups to build beds for disabled plot holders and to work with young people living in deprived areas, with non-financial support received from contractors in relation to donating training, time, and excess materials for local projects. 3.4 These achievements are further supported by 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. This aims to further support delivery of the place based ambition and an update in this respect was reported to the Environment and Climate Change Committee in February 2025. This also highlights some of the council’s climate activity and actions which contribute to reducing North Lanarkshire’s emissions as well as encouraging more sustainable practices within the area, and provides an update on the implementation of the national adaptation plan. 3.5 The transformation of North Lanarkshire to date has been able to be realised through decisions made by the council’s committees that have been unwavering in their support to not just deliver the Programme of Work, but to ensure it is delivered with a greater focus on scale and purpose that escalates positive changes in a way that improves the lives of the people and communities of North Lanarkshire. 3.6 These decisions have been consistently underpinned by various Policy and Strategy Committee approvals, for example of the Medium-Term Financial Plan 2025/26 to 2029/30, the Strategic Capital Investment Programme for 2024/25 to 2028/29 (bolstered by the Community Investment Fund), and the One Workforce Plan. This supports the one place one plan one council approach to the transformation of North Lanarkshire for progress that is made at pace and scale in order to improve the lives of local people through activities that are underpinned by sound financial management, risk management, and corporate governance controls to ensure the council remains financially sustainable. • Six monthly Programme of Work progress reports have continued to support the role of the Policy and Strategy Committee in maintaining their strategic oversight role of the overall Programme of Work to 2028 (in line with the Scheme of Administration). This role relates to the “development, co-ordination, and monitoring of The Plan for North Lanarkshire” and to keeping under review such “programmes as the Committee considers necessary to achieve the council’s long-term aims and objectives”. 3.7 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 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, Page 90 of 108
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monitored, and reviewed in a consistent and transparent manner across the council. • The latest 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 supports the development and monitoring processes for strategies, policies, and plans, and ensures ongoing openness and engagement through stakeholder consultation. • An improvement implemented during 2024/25 was a lite touch assessment of all strategies, policies, and plans updated during the year to ascertain compliance with the Strategic Policy Framework guidance. The outputs from this assessment were reported in the annual position statement update to the Audit and Scrutiny Panel in October 2024. This also supported implementation of the improvement action previously identified by Audit Scotland in their Best Value thematic work which stated that “the council should look to improve its existing processes for engaging Elected Members on the overall strategic planning process”. 3.8 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 3.9 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 and a summary is provided below. Strategic Self-Evaluation Framework • Aligned to the seven themes in the national Best Value guidance, the council’s Strategic Self- Evaluation Framework is supported by a rolling review programme. This Framework 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 update to the Strategic Self-Evaluation Framework in October 2022 introduced a corporate approach to Options Appraisal. While the use of options appraisal was already widespread across the council, the approach was formalised to ensure that the outcomes from such exercises continue to provide assurances that service provision is efficient and effective and represent 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 in February 2024 ensured ongoing alignment with the national approach to auditing Best Value through thematic audit work, as well as ongoing compliance with Best Value guidance in terms of the importance of the council continuing to use 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), ten self-evaluation exercises have been undertaken. A summary of each exercise has been included in 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 ten self-evaluation exercises resulted in areas for improvement being identified and captured in supporting improvement plans. In general, these aimed to further Page 91 of 108
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strengthen existing arrangements, rather than address any significant issue in terms of effectiveness. - Implementation of the improvement actions arising from the 2023 self-evaluation of the Audit and Scrutiny Panel (reported to the Panel in September 2023), and how effectively it was discharging its role, were completed during 2024/25. A follow up self-evaluation is scheduled to be undertaken during 2025/26. - The remaining improvement actions from the Data Governance Board self-evaluation undertaken in 2021 were integrated within the senior information risk owner annual performance and assurance process for which the latest update was reported to the Finance and Resources Committee in February 2025. - A self-evaluation was undertaken in early 2025 in relation to the council’s compliance with the CIPFA Financial Management (FM) Code; this followed on from the initial evaluation undertaken in 2022. The 2025 self-evaluation concluded that the council’s financial management practices comply with all aspects of the CIPFA FM Code with an average overall rating of 99.6% from the assessment team in terms of strongly agreeing or agreeing the extent of compliance across all the 17 financial management standards. This is an improvement from 98% in the initial assessment in 2022. There were no disagree or strongly disagree assessments assigned by the assessment team in the 2025 survey - this is an improvement from 2% disagreeing in the initial assessment in 2022. This suggests the assessment team considered there were no areas where the council did not comply across all 17 financial management standards in the 2025 self- evaluation and was supported by the accompanying qualitative feedback from the assessment team. The corresponding discussions in the consensus session focused on areas where the assessment team considered the council could improve / further strengthen existing arrangements, rather than a need to address any significant issue in relation to non-compliance. As such, an improvement plan is in place focussing on strengthening existing arrangements around three of the CIPFA FM Code principles. 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, and ensure these are well-directed, delivered to time, cost, and quality targets, and provide the expected benefits and improved local outcomes. • Following a successful pilot, Project Management training was rolled out across the organisation from February 2023 and has continued into 2024/25. This comprises a programme of half and full day training sessions for which Chief Officers identified the employees who had to undergo the training. Feedback from these sessions was very positive and a refresher programme has been developed and rolled out for 2025/26. • During 2024, the Project Management Framework was subject to a lite touch review to ensure it continued to remain fit for purpose. This refresh took account of key feedback arising from the aforementioned training programme, reiterated the requirement to undertake a post project evaluation, incorporated the gateway check process from the Invest in North Lanarkshire Programme of Work, reiterated the importance of Data Protection Impact Assessments (DPIAs) being given due consideration at the beginning of a project, and raised awareness that project management and change management need to complement each other and work in tandem to support delivery of the Programme of Work to 2028. • Quality assurance arrangements have been established and aligned to the governance supporting the 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 in line with the dimensions within which a project requires to be delivered, i.e. scope, quality, time, cost, resources, risk, and completed status. Quality Assurance results are subject to regular audits by Internal Audit and also to review and strategic oversight by the Audit and Scrutiny Panel (in February 2024 and Page 92 of 108
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February 2025). 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 2024/25, information regarding items on the Performance Reporting Schedule (i.e. Chief Officers six monthly performance reviews at service committees and service specific reporting to meet business and/or statutory obligations) 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. An update to the reporting schedule is expected to be submitted to the Audit and Scrutiny Panel in cycle 3 of 2025; this will include due consideration of the impact of the newly published Accounts Commission Statutory Direction for 2025/26 to 2027/28. • During 2024/25 there were 58 performance reports produced in line with the Performance Reporting Schedule. A small number of reports did not make the scheduled reporting cycle, but clear explanations were provided 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 2024/25, 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, (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, and (d) demonstrated that the loop has been closed in terms of implementation and monitoring of both improvement actions and subsequent performance levels. • Previously, the extent of the action undertaken by each audience when reviewing and scrutinising the performance information before them has been varied. The ask of the audience reading the report is now specifically (and appropriately) referenced in performance reports to service committees. This practice was already in place for Audit and Scrutiny Panel reports for the scrutiny function of the Panel. Specific training was held in 2024 in relation to the scrutiny of performance; this aimed to further complement awareness raising and roles and responsibilities (as identified through the aforementioned Audit and Scrutiny Panel’s self- evaluation exercise in 2023). • Reporting of the Local Government Benchmarking Framework (LGBF) measures are integrated into the Strategic Performance Framework alongside the wider suite of measures within each Chief Officers’ area of responsibility. This approach ensures that reports contain a suite of all relevant performance indicators in 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. The use of this dashboard is 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 evidence gathered from 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, are key Page 93 of 108
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to 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 they 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 2024/25 the purpose of the Audit and Scrutiny Panel, as set out in the Scheme of Administration (December 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 into account Internal Audit’s opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and control.” Page 94 of 108
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During 2024/25, the Audit and Scrutiny Panel held its meetings as scheduled once every cycle, with a special meeting held at the end of June 2024 and the end of October 2024 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 2024/25 • Internal Audit - four progress reports covering 17 audit assignments undertaken from the audit plan which resulted in 38 recommendations, four follow up reports of actions previously agreed by management in response to audit recommendations, two follow up in- depth reports from Chief Officers in relation to audits (on school fund compliance and duplicate payments), two reports on the National Fraud Initiative, the Internal Audit Strategy, Internal Audit Charter, Internal Audit annual plan, and 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 2024/25. Two of these reports provided an updated summary of key risks from service risk registers to enable Elected Members to have sight of those risks with the highest residual risk scores. • Financial management - one report in relation to the unaudited Annual Accounts for 2023/24 and one in relation to the audited Annual Accounts for 2023/24. • 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 - five reports arising from Panel member led scrutiny (in relation to the Community Boards, digital broadband, corporate insurance, the Scottish Housing Quality Standard (SHQS) / Energy Efficiency Standards for Social Housing (EESSH), and school IT assets age and maintenance), four quarterly performance assurance review reports providing a composite summary of all performance reports considered by the council committees in the previous cycle, an annual update in relation to the scrutiny work programme, an update on the new national approach to auditing Best Value, three reports providing an update in relation to aspects of the frameworks supporting The Plan for North Lanarkshire and Programme of Work (i.e. the Strategic Governance Framework, Quality Assurance annual review, and the corresponding Annual Position Statement for the frameworks), and the Annual Governance Statement for 2023/24. 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. The improvement plan set out two areas for improvement which have been implemented during 2024/25. 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). As such, a follow up self-evaluation is scheduled to be undertaken during 2025/26. In December 2023, the Council meeting formally agreed one of the improvement actions (arising from the self-evaluation) 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 of 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. Page 95 of 108
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2) Compliance with the CIPFA Statement on the role of the Head of Internal Audit in public service organisations (2019). To enable the 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 Chief Officer (Audit and Risk) has also provided an annual opinion for 2024/25 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 and opinion for 2024/25 from the Chief Officer (Audit and Risk) on 5th June 2025 and 13th June 2025 respectively. This presented an independent and objective assurance as to the adequacy and effectiveness of governance, internal control, and risk management arrangements within the council and stated: • “The annual opinion is unqualified and states that reasonable assurance can be placed on the council’s governance, risk management, and internal control arrangements” for 2024/25. • “There is generally an overall sound system of governance, risk management and internal control in place. While some issues, non-compliance or scope for improvement were identified, individually these do not significantly impair the council’s system of internal control.” 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 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 - the annual Internal Audit report for 2024/25 provides an update on progress in this respect. 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 external auditors’ annual audit of the financial statements which is undertaken as part of the audit of the Annual Accounts. 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 early 2025 (noted in paragraph 3.9) 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. In addition, the external auditors Annual Audit Report (AAR) in October 2024 has continued to report positively on the council’s approach to financial management and financial sustainability. Page 96 of 108
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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. • 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 2024, and the outcome of the latest annual review is scheduled to be reported to committee later in 2025. • Gifts and Hospitality and Conflicts of Interest procedures for employees - guidance in this respect was first incorporated into the Employee Code of Conduct in 2018 and updates to this document have continued to reiterate employee responsibilities in this respect; this includes the most recent update to the Employee Code of Conduct in February 2025. The year-end review process is well established 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) for independent review and reporting to the council’s senior management team. The 2024/25 review of Registers found no significant trends or issues of concern that required to be reported to the senior management team. • Code of Conduct for Chief Officers - the latest update in this respect was approved by the Policy and Strategy Committee in June 2024. 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 is 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. A review was undertaken on this policy in March 2025 and the updated policy now incorporates both information security and cyber security to reflect the importance of cyber security in the council’s daily operations and strategic approach to service delivery as defined in both the Digital and IT Strategy and The Plan for North Lanarkshire. As the council takes a digital by default approach to service delivery and much information is now in a digital format, this incorporates cyber threats that must be mitigated and managed to protect the council’s information and IT assets. An updated Information and Cyber Security Policy was considered by the Data Governance Board in March 2025, with the updated policy scheduled to be submitted to committee in cycle 3 of 2025. • Cyber security - a joint review and assessment was undertaken in 2022/23 (between Internal Audit and Business and Digital) using a structured format (with 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 arrangements commensurate with the good practice recommended by bodies such as the National Audit Office. The outcome from this review was reported 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 Page 97 of 108
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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. In addition, the council actively seeks to detect fraudulent activity through participating in the National Fraud Initiative (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 reports in respect of the progress made in the follow up of matches were reported to the Audit and Scrutiny Panel in May 2024 and October 2024. The CIPFA statement also requires responsibility to be acknowledged. In this respect the Internal Audit annual report 2024/25 from the Chief Officer (Audit and Risk) specifies that Internal Audit “has responsibility for investigating 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 the relevant Chief Officer, with details of the work presented to the [Audit and Scrutiny] Panel in line with the Internal Audit Charter.” The Internal Audit annual report 2024/25 from the Chief Officer (Audit and Risk) has confirmed that “One fraud investigation was undertaken during 2024-25. This … related to school funds and involved a report of missing monies. During the investigation, a member of staff confessed to taking funds on several occasions for personal use, and the audit work concluded that there was clear evidence that fraud had been committed. Appropriate action was taken under the Council’s Discipline Policy and the member of staff involved resigned prior to the disciplinary hearing. In line with the Council's Corporate Fraud Policy, this matter was referred to Police Scotland for further consideration, and details of the fraud were also reported to Audit Scotland.” As reported in the Internal Audit annual report 2024/25 from the Chief Officer (Audit and Risk), reviews of the council’s (a) anti-fraud arrangements and (b) information governance arrangements were scheduled for 2024/25 but were deferred to 2025/26 due to resources. 5) Compliance with the Public Sector Internal Audit Standards (PSIAS). As reported in the Internal Audit annual report for 2024/25, since their introduction in 2013, the Public Sector Internal Audit Standards (PSIAS) have been mandatory for Internal Audit functions. To ensure compliance with the PSIAS, the Chief Officer (Audit and Risk) is required to develop and maintain a Quality Assurance and Improvement Programme (QAIP) which includes periodic internal assessments, and an independent External Quality Assessment (EQA) to be undertaken at least every five years. During 2024/25, internal monitoring and assessment confirmed that Internal Audit continued to operate in accordance with the PSIAS. The most recent independent EQA was undertaken by Stirling Council in 2024 and confirmed that Internal Audit fully conformed with the PSIAS. This was reported to the Audit and Scrutiny Panel in May 2024. Both the self-assessment and EQA highlighted some areas for improvement and consideration, and these are highlighted in the QAIP action plan in the 2024/25 Internal Audit annual report. From April 2025, the PSIAS was replaced by the Global Internal Audit Standards (GIAS). The introduction of the GIAS will require a revision to the current internal audit methodology and working practices, and a gap analysis exercise is currently being undertaken to determine the actions to be taken to ensure compliance. Similar to the PSIAS, compliance with the GIAS will also be subject to ongoing internal review and periodic self-assessment. The GIAS also require an EQA on a five-yearly basis, with the next assessment due to be undertaken in 2028/29. As reported in the Internal Audit annual report for 2024/25, Internal Audit is an independent, objective assurance and advisory function designed to add value and improve the council’s operations. It 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. • The purpose, mandate, authority and responsibilities of the council’s Internal Audit function are Page 98 of 108
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outlined in the Internal Audit Charter, the most recent version of which was approved by the Audit and Scrutiny Panel in May 2025. Internal Audit reports its outputs regularly throughout the year to the Panel in accordance with the Internal Audit Charter. The Panel also approves Internal Audit’s annual audit plan and monitors the performance of the function. • Internal Audit aims to provide a high quality and customer focused 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. • Internal Audit’s primary objectives are: - To examine and evaluate internal control systems and governance arrangements within the council. - To provide assurance to Elected Members and senior officers on the adequacy and robustness of these systems. - To assist the Audit and Scrutiny Panel, Elected Members, and officers of the council in the effective discharge of their responsibilities. • 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 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. • 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 the Chief Officer (Audit and Risk) to provide an independent annual opinion 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. • In the Internal Audit annual report for 2024/25, the Chief Officer (Audit and Risk) provides an overview of the activities of the Internal Audit section for the year 2024/25. This includes 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 2024/25, June 2025 In the Internal Audit annual report for 2024/25, presented to the Chief Executive and both the Business Management Team and Corporate Management Team in June 2025, the Chief Officer (Audit and Risk) provides an overview of Internal Audit activity against the 2024/25 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 presented to each meeting of the Panel. In the Internal Audit annual report for 2024/25, the Chief Officer (Audit and Risk) also highlights issues arising from Internal Audit activity during the year; an extract from this report is noted below. Audit issues 2024/25 The nature of audit assignments is such that most Internal Audit reports identify some weaknesses or areas where scope for improvement exists, and during 2024/25, a number of recommendations were made to address such areas identified from the audit work undertaken. The vast majority of audits undertaken during the year received opinions of either Reasonable or Substantial Assurance, and there are no issues arising from these audits which require to be highlighted. However, there are issues (listed below) that while they could be significant to the control environment in the individual system or areas audited, they are considered not material enough to have a significant impact on the Chief Officer (Audit and Risk) overall opinion on the adequacy of the council’s control environment. • The 2023/24 annual report discussed reports on the Housing and Corporate Property Page 99 of 108
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Maintenance Contract and the whistleblowing allegations received by Audit Scotland, which resulted in a number of high priority recommendations for management to address. Audit work during 2024/25 concluded that significant progress had been made in implementing the recommendations in both reports, with some aspects being fully implemented. Internal Audit will continue to monitor progress with the remaining recommendations, and further substantive audit work on the operation of the new contract arrangements is planned for 2025/26. • One audit during 2024/25 provided Limited Assurance, and this was in relation to arrangements for managing school funds. The control environment around school funds has been subject to repeated audit activity regarding anomalies and discrepancies, and this audit highlighted that previously agreed control measures had not been fully implemented. Following this audit, an unplanned review was undertaken to review a potential school fund discrepancy. Although on this occasion, no financial loss or misappropriation was discovered, the audit highlighted a number of weaknesses in the recording, reconciling, and banking of school fund income and expenditure. • In response to this work, Education senior management presented a report to the Audit and Scrutiny Panel in February 2025, detailing actions taken to address the weaknesses identified and additional measures to further enhance the control environment. Progress with these actions will be monitored by Internal Audit. • One fraud investigation was undertaken during 2024/25. This also related to school funds and involved a report of missing monies. During the investigation, a member of staff confessed to taking funds on several occasions for personal use, and the audit work concluded that there was clear evidence that fraud had been committed. Appropriate action was taken under the council’s Discipline Policy and the member of staff involved resigned prior to the disciplinary hearing. In line with the council's Corporate Fraud Policy, this matter was referred to Police Scotland for further consideration, and details of the fraud were also reported to Audit Scotland. Traditionally, the Annual Governance Statement outlined issues identified during the Internal Audit programme of work for the previous year and included 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 2023/24, 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 above from the Internal Audit annual report for 2024/25 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 during the year within their area of responsibility by completing a Certificate of Assurance and updating a Checklist to support the preparation of the council’s statements on corporate governance and internal financial control for the year ending 31 March 2025. Following a review of the 14 certificates and checklists completed for 2024/25, 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. 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 three 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 Checklist to support the preparation of the council’s statements on corporate governance and internal financial control for the year ending 31 Page 100 of 108
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March 2025. In this respect, the Chief Executive or Senior Representative for each ALEO has confirmed corporate governance arrangements and financial controls in their organisation 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 council’s Annual Governance Statement. In setting its budget on 15th February 2024, the Council requested that the remaining ALEOs (Fusion Assets Limited, Routes to Work Limited, and North Lanarkshire Properties LLP) be formally reviewed, with their contributions to the council’s strategic priorities and The Plan for North Lanarkshire, both now and in the future, assessed. This review was undertaken during 2024/25 with the outcome and next steps reported to the Policy and Strategy Committee in March 2025. 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 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. Taking into account the local environment within which the council operates, 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 inter-related strategic frameworks that aim to maintain a corporate one place one plan one council approach. 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 the council’s senior management team and its structure of meetings, 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 Page 101 of 108
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content of the Annual Governance Statement. • 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 2024/25 year-end review identified no Red elements or mechanisms, one Amber, and the rest were Green. For the one assessed as Amber (i.e. employee engagement and wellbeing), there is a commitment by the respective Chief Officer to ensure an update is undertaken during 2025/26. Summary of the latest 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) 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 is in place 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 transformational 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 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 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 sets out functions, terms of reference, and powers of the council and its committees and sub-committees which is aligned to the organisational structure to facilitate decision making in line with the council’s strategy. • A Scheme of Delegation to Officers sets out the functions delegated to the Chief Officers of the council, including making 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 in place, 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 Page 102 of 108
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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 well-established Financial Strategy provides 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. • The Risk Management Strategy 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 are well established and form an important element of good corporate governance. These 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. A Programme Uncertainty Level Status Evaluation (PULSE) assessment process was introduced during 2024 to support the risk management arrangements for delivery of the Programme of Work. • Codes of Conduct for Elected Members, Chief Officers, and Employees 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. • The Counter Fraud Policy 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. • The Whistleblowing Procedure (Public Interests Disclosure) 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. • The senior management team structure 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. • The activities and functions of the council’s Audit and Scrutiny Panel comply with the standards set out in CIPFAs Position Statement: Audit Committees in Local Authorities Page 103 of 108
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(2018). The Panel’s 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. • 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. • 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 support regular performance assurance reviews. • Comprehensive revenue budget and capital expenditure guidelines along with well- established processes and systems 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 are 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, and Hub Delivery Programme Board. • The Data Governance Board maintains strategic oversight and implementation of the council’s approach to data governance to secure relevant assurances that effective arrangements are in place for the safe and secure collection, storage, use, and sharing of data. This includes safeguarding personal data and promoting data quality in accordance with legislative, regulatory, and corporate governance requirements. Responsibilities also include developing and overseeing the implementation of data strategies, policies, procedures, and standards (including the Data Protection Policy, Information and Cyber Security Policy, Payment Card Industry Data Security Policy, Records and Information Management Policy, and the Acceptable Use of ICT Policy), as well as directing continuous improvement in data governance and compliance, overseeing the work and progress of the Data Management and Compliance Group, and ensuring appropriate monitoring and assurance arrangements are in place across the council and its arm’s length external organisations. • The Information and Cyber Security Policy 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 are in place with management, monitoring, and performance reporting arrangements. • A range of employment and other policies, and associated guidance documents and forms, promote and support ethical behaviour and standards of conduct by employees. • An employee Performance Review and Development (PRD) process is in place and access to a range of training and development programmes and opportunities is available through LearnNL for both employees and Elected Members. • Strategic Workforce Plans, supported by service specific workforce plans, 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 are 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 are provided by the external auditors through the Page 104 of 108
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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 Strategic Governance Framework, and its accompanying review programme, have been recognised as an area of good practice in the latest three annual Internal Audits on Corporate Governance. As reported to the Audit and Scrutiny Panel in August 2024, the most recent Internal Audit considered that the “council’s corporate governance arrangements in relation to self- assessment are adequate and operating effectively” and therefore this audit was assessed as providing “substantial assurance”. 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. Published in May 2019, the North Lanarkshire Best Value Assurance Report (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. As reported to the Audit and Scrutiny Panel, a new national approach to auditing Best Value came into effect as part of the external auditor appointments for the five-year term from 2022/23. This approach is twofold and means that: • Auditing Best Value is integrated within the wider scope of the external auditor’s annual audit work which is reported in their Annual Audit Report (AAR). This includes risk-based and follow up audit work on Best Value related recommendations from previous audit reports as well as reflecting on council reporting against priorities and in terms of the use of the Local Government Benchmarking Framework (LGBF). • Thematic Best Value audit work is undertaken each year by the external auditor as per the Accounts Commission’s requirements to provide assurance on areas of risk / interest across councils as at a defined point in time, thus enabling comparisons across Scotland. This means that each year the council undergoes an assessment of particular aspects of Best Value in order to provide the Accounts Commission with the relevant assurances in terms of performance and the quality of services to the public. Since the new approach was implemented, the various outcome reports (listed below) have been able to be viewed through the Policy and Strategy Committee and/or the Audit and Scrutiny Panel: Annual Audit Report (AAR) • 2022/23 report to Audit and Scrutiny Panel in October 2023. • 2023/24 report to Audit and Scrutiny Panel in October 2024. Thematic report • The council’s 2022/23 outcome report on the theme in respect of the leadership of the development of new strategic priorities was presented to the Audit and Scrutiny Panel in October 2023 and the Policy and Strategy Committee in December 2023. The report for the council in this respect identified three areas for improvement which have since been implemented and signed off by the external auditors, these focussed on strategic planning feedback, community engagement, and Elected Members training and development. • The council’s 2023/24 outcome report on the theme for workforce innovation (specifically how the council is responding to current workforce challenges through building capacity, increasing productivity, and innovation) was presented to the Audit and Scrutiny Panel in August 2024 and the Policy and Strategy Committee in September 2024. The report for the Page 105 of 108
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council in this respect identified three areas for improvement which are being progressed during 2025/26, these focussed on acting on staff feedback, flexible and hybrid working policies, and data in respect of the temporary workforce. The external auditors latest Annual Audit Report (AAR), reported to the Audit and Scrutiny Panel in October 2024, 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 2023/24 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 (summarised below) and management responses, including planned actions, responsible officers, and timescales - which are all scheduled to be implemented by March 2026. Progress in terms of implementing these actions is monitored by Internal Audit and reported to the Audit and Scrutiny Panel. 2023/24 Annual Audit Report (AAR) recommendations • Management of assets - management should establish a process to ensure assets replaced are appropriately removed from the asset register and accounted for as a disposal appropriately. • Statutory override - the council should proactively work with CIPFA and the wider local government sector to arrive at appropriate solution for the implementation of accounting for infrastructure assets. • Reinforced autoclave aerated concrete (RAAC) - for those properties where RAAC has been identified, the council should determine a more accurate measure of the level of impairment in line with the requirement of accounting standards. • Continuity and security of IT operations - the council should ensure there is appropriate oversight of its continuity and security of IT operations and ensure the necessary assurances are obtained for externally hosted systems. • Public performance reporting - the council should improve its public performance reporting to provide its citizens and communities with a clear summary of performance. 2023/24 recommendations from the BV thematic report • Acting on staff feedback - as the council develops its staff engagement approach, it should ensure that as well as providing information to staff on council decisions, it also incorporates the views of staff and trade unions to support transparent decision making, and evidence how it is acting on findings from the Summer 2024 roadshow sessions. • Hybrid working policy - the council should continue to monitor the impact of its hybrid working approach. It should continually assess the impact of increasing the number of office days, in terms of performance, staff wellbeing, and recruitment and retention. • Temporary workforce - the council should include data reporting on its temporary workforce as part of published workforce data, and once available it should include data on agency workers. A key area of improvement implemented by the council during 2024/25 was to ensure ongoing best value in terms of managing risk and ensuring business continuity plans (including civil contingencies and emergency plans) are in place to allow an effective and appropriate response to planned and unplanned events and circumstances. This followed an Internal Audit review undertaken on Business Continuity Planning in September 2022 which identified a number of recommendations for action. A subsequent Internal Audit was undertaken on Business Continuity Planning which was reported to the Audit and Scrutiny Panel in May 2025 which included an update on the progress made in implementing the previous audit’s recommendations and made new recommendations, including the need to better align business continuity and disaster recovery which is scheduled to be implemented during 2025/26. This aligns to the review of the council’s arrangements in respect of Business Continuity and ICT Disaster Recovery which was included in the external auditors Annual Audit Report for 2023/24 (reported to the Audit and Scrutiny Panel in October 2024). 10) Findings from other audit, scrutiny, or inspection bodies in relation to service specific assessments. Page 106 of 108
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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 2024/25 include the following: • Scottish Housing Regulator annual assurance statement 2023/24 - August 2024. • Scottish Housing Regulator annual landlord report 2023/24 - November 2024. 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 in which it is applied as 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 does so in a consistent manner to ensure completeness and to continue 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 led to new arrangements in respect of the council’s senior management team and its supporting structure of meetings being developed and implemented from January 2023. This comprises four aspects, as follows: (a) 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. Reflecting the changes to the council’s senior management team structure as outlined in the annual governance update report to committee in September 2024, 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, People Resources, and Strategy and Engagement. (b) 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 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. Page 107 of 108
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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. (c) Four Service Management Teams (SMTs) - the annual governance update report in September 2024 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 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. (d) Operational Management Team (OMT) - 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, and potential integrations and opportunities, with the wider operational management team environment across the council. 5. Certification of assurance - on the level of assurance that the governance arrangements provide. 5.1 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. 5.2 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 108 of 108