Agenda Document Pack - Audit and Scrutiny Panel - 28/08/2025
North Lanarkshire Council · 28 August 2025
Back to Audit and Scrutiny Panel — 28 August 2025 and its agenda
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Clerk Name: Karen Swan Clerk Telephone: 07919 730272 Clerk Email: committee@northlan.gov.uk 19 August 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 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, 28 August 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 124
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Agenda 1 Declarations of Interest In Terms of the Ethical Standards In Public Life Etc. (Scotland) Act 2000 Audit Related Items 2 Audit and Risk Related items: Action log Submit report by the Chief Officer (Audit and Risk) advising of the implementation of outstanding requests and recommendations made by the Panel in respect of audit and risk-related items. 5 - 6 3 Internal Audit: Progress Report Submit report by the Chief Officer (Audit and Risk) providing an overview of Internal Audit activity and audit reports issued since the last update to the Panel in May 2025. 7 - 38 4 Internal Audit: Follow-up of implementation of audit recommendations Submit report by the Chief Officer (Audit and Risk) updating the Panel on the progress made by management in the implementation of Internal and External Audit recommendations. 39 - 50 5 Risk Management Update Submit report by the Chief Officer (Audit and Risk) providing an overview of the recent annual review of the Corporate Risk Register and developments on Corporate Risks since the last meeting of the Panel. 51 - 58 6 National Fraud Initiative – Update Submit report by the Chief Officer (Audit and Risk) providing an update on the progress of the Council's 2024 National Fraud Initiative data matching exercise. 59 - 64 Scrutiny Related Items 7 Self-Evaluation of the Audit and Scrutiny Panel - outcome report Submit report by the Chief Officer (Legal and Democratic) providing an update on the 2025 Audit and Scrutiny Panel self-evaluation findings and next steps. 65 - 98 Page 3 of 124
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8 Statutory performance reporting requirements Submit report by the Chief Officer (Strategy and Engagement) providing an update on the Accounts Commission's additional Direction, updated framework and schedule for North Lanarkshire. 99 - 124 Page 4 of 124
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North Lanarkshire Council Report Audit & Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/ASP/ALMay25 Date 28/08/25 Audit and risk related items: Action log From Francis Scott, Chief Officer (Audit and Risk) E-mail scottfr@northlan.gov.uk Telephone 07887 914207 Francis Scott Chief Officer (Audit and Risk) Executive Summary The purpose of this report is to allow elected members to track implementation of outstanding requests and recommendations made by the Panel in respect of audit and risk- related items. The attached log (at Appendix 1) records those audit and risk-related requests and recommendations made by the Panel and when these were addressed and/or are expected to be addressed. Any actions that have previously been reported as complete and noted by the Panel have been removed from the log. Recommendations The Panel is invited to note the report. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 2 Page 5 of 124
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Appendix 1 Audit and Risk related items: Outstanding action log Date Requests or agreed action Status May 2023 1. Request a further report be brought back by management to a future meeting on outstanding actions identified by Internal Audit follow-up work in relation to managing strategic change. Complete – implementation of this action has been tracked though Internal Audit’s follow-up procedures. The most recent assessment is that these management actions are now complete. The 2024-25 Internal Audit Plan included an audit of the Council’s recently revised governance arrangements for the Programme of Work to 2028. This audit was carried forward into the 2025-26 annual plan and the results of this work are included in the Progress Report later in today’s agenda. 2. Request a further report be brought back by management to a future meeting on outstanding actions identified by Internal Audit follow-up work in relation to Employee Service Centre – key controls. In progress – People Resources has now completed a review of the issues identified and a report was presented to BMT in May, but further information was requested. Once finally approved by BMT, the action will be marked as complete. Further longer-term action is required to address these issues, and this will be managed and monitored through the People Resources service risk register. Page 6 of 124
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/ASP/PRMay25 Date 28/08/25 Internal Audit: Progress Report From Francis Scott, Chief Officer (Audit and Risk) E-mail scottfr@northlan.gov.uk Telephone 07787 914207 Executive Summary The purpose of this report is to provide an overview of Internal Audit activity and audit reports issued since the last update to the Panel in May 2025, namely: • Cyber Security • Employee Service Centre – Selected Key Controls • Corporate Governance • Strategic Governance Arrangements • Procurement – Non-contract Spend This report will also provide an update on performance management. Recommendations The Panel is invited to: (a) note the content of the Internal Audit reports together with the associated management responses. (b) consider whether there are any issues raised by Internal Audit which the Panel consider are sufficiently significant to require a further report from management to be submitted to a future meeting of the Panel. (c) request that Internal Audit report to future meetings of the Panel on the progress in implementing agreed management actions categorised as ‘High’ or ‘Medium’ priority, and (d) otherwise note this report. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 3 Page 7 of 124
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1. Background 1.1 The 2025-26 Internal Audit Plan was approved by the Audit and Scrutiny Panel in May 2025. The Internal Audit Charter requires that Internal Audit Progress Reports are presented to each meeting of the Panel, providing an update on the progress against the Internal Audit Plan and any other Internal Audit activity. This report fulfils that requirement. 2. Report Audit reviews completed in the period 2.1 The audit reports summarised below have been completed since the last meeting of the Panel in May 2025, and include the remaining audits from the 2024-25 Internal Audit Plan and others from the 2025-26 Plan. While the reports noted contain recommendations for improvement, all have been assessed as providing positive levels of assurance. Management have responded positively to these reports and satisfactory responses and commitments to audit recommendations have been received. 2.2 Appendix 1 provides detailed definitions of the priorities assigned to audit recommendations, and the factors considered when determining the level of assurance provided in the audit opinion. Full copies of these audit reports have been included in the meeting paper in line with the approved reporting protocol. Cyber Security (2024-25) Internal Audit Opinion Reasonable assurance Recommendations High 0 Medium 2 Low 1 2.3 This audit reviewed the adequacy and effectiveness of the arrangements and controls that the Council has developed and strengthened to continue to guard itself against such cyber security threats and attacks and assessed the extent to which Service management have implemented recommendations from previous cyber audit reports. 2.4 The risk of cyber-attacks to organisations, businesses and personal security continues to increase, with threats and disruptive attacks continually growing in both sophistication and frequency – as a result, it is not possible to provide assurance that the Council will not be subject to a significant cyber-attack. However, we are generally satisfied that the Council is following best practice where possible, and has various formal and well-established arrangements for identifying, and taking mitigating action against, any identified threats and potential cyber-attacks. We were also pleased to note that the previously agreed recommendations have largely been addressed. We have identified some areas for improvement relating to enhancing the Council’s cyber security framework and the provision of feedback on a recent cyber resilience exercise. Employee Service Centre – Selected Key Controls (2024-25) Internal Audit Opinion Reasonable assurance Recommendations High 0 Medium 3 Low 1 2.5 This audit reviewed selected key controls in the Council’s payroll system, relating to processing changes to employees’ contracts and contractual pay, and testing on a sample of non-standard payments. We are generally satisfied that the arrangements Page 8 of 124
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are adequate and operating effectively, with employee change requests being processed consistently, accurately and in line with guidance, and with quality checking undertaken. We also noted that non-standard payments appeared legitimate and were generally correctly calculated, supported by adequate documentation and appropriately authorised. 2.6 However, we did highlight some specific issues relating to non-standard payments for casual workers which require corrective action, and we have also recommended improvements to the controls for processing employee change forms and quality checking by second officers. Corporate Governance (2024-25) Internal Audit Opinion Substantial assurance Recommendations High 0 Medium 0 Low 0 2.7 This was an annual review of the Council’s arrangements for ensuring that it complies with the CIPFA Delivering Good Governance in Local Government Framework 2016. We are satisfied that the arrangements in place are adequate and operating effectively, and as a result, no areas for improvement have been identified. Strategic Governance Arrangements Internal Audit Opinion Substantial assurance Recommendations High 0 Medium 1 Low 0 2.8 This audit reviewed the recently revised strategic governance arrangements in place to oversee the delivery of the Programme of Work. We were pleased to note that the governance arrangements across the seven key delivery priorities of the Programme of Work are robust and consistent, with effective oversight provided through regular Strategic Board meetings and progress reporting to senior officers and elected members. One area for improvement was recommended relating to the development and introduction of arrangements to ensure intended benefits of the Programme are realised. Procurement – Non-contract Spend Internal Audit Opinion Reasonable assurance Recommendations High 0 Medium 3 Low 1 2.9 This audit reviewed the adequacy and effectiveness of controls in place to identify non- contract spend and minimise expenditure with non-contracted suppliers, to ensure the Council continues to receive best value from its contract arrangements and complies with procurement regulations and the General Contract Standing Orders (GCSOs). 2.10 Overall, we found that the process for identifying non-contract spend is robust and the outcomes of the process are reported to Chief Officers and the Corporate Procurement Working Group. However, we have identified improvements in relation to the analysis, recording, validation, reporting and of non-contract spend, and the need to ensure services continue to comply with regulations and the GCSOs. Page 9 of 124
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Performance Management 2.11 In line with Internal Audit performance management framework, two performance indicators are subject to quarterly reporting to the Panel. 2.12 The first indicator is the implementation of agreed actions arising from Internal Audit reports by the implementation date. In the period to June 2025, 63% of agreed actions have been implemented by the implementation date (the previous update for the period to March 2025 had a 54% completion rate). 2.13 The second performance indicator measures client satisfaction. The results received in the period continue to show positive feedback on the work of Internal Audit, with 100% of respondents agreeing that Internal Audit added value by assisting in providing assurance, and that reports were relevant and constructive with findings clearly and accurately communicated. Appendix 2 provides a summary of the questions we ask audit clients at the conclusion of each audit. 3. Measures of success 3.1 Internal Audit reports annually on its performance to the Panel and is also subject to review annually by the Council’s appointed external auditors. 4. Supporting documentation Appendix 1 Audit Grading Definitions Appendix 2 Internal Audit Client Feedback Results Francis Scott, Chief Officer (Audit and Risk) Page 10 of 124
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ Page 11 of 124
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If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Effective responses by management to the weaknesses, control issues and/or areas of improvement identified by Internal Audit will increase the likelihood of the Council achieving its ambitions by improving control frameworks and more effectively mitigating potential risks and threats to the achievement of planned outcomes. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 12 of 124
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Appendix 1 Audit Grading Definitions Audit reports are graded with an overall assurance opinion, and any issues and associated recommendations are classified individually to denote their relative importance, in accordance with the definitions in the tables below. Definition of audit assurance and recommendation categories Assurance Confidence based on sufficient evidence that internal controls are in place, operating effectively and objectives are being achieved. Assurance opinion Substantial Assurance There are minimal or minor control weaknesses that present low risk to the control environment. The control environment has substantially operated as intended although some minor errors have been detected. Very few or no improvements are needed. Reasonable Assurance There are some control weaknesses that present a low to medium risk to the control environment. The control environment has mainly operated as intended although errors have been detected. Some improvements should be made. Limited Assurance There are significant control weaknesses that present medium to high risk to the control environment. The control environment has not operated as intended. Significant errors have been detected. Substantial improvements should be made. No Assurance There are fundamental control weaknesses that present an unacceptable level of risk to the control environment. The control environment has fundamentally broken down and is open to significant error or abuse. Immediate and major changes need to be made. Organisational impact Major The weaknesses identified during the review have left the Council open to significant risk. If the risk materialises it would have a major impact upon the organisation. Moderate The weaknesses identified during the review have left the Council open to medium risk. If the risk materialises it would have a moderate impact upon the organisation. Minor The weaknesses identified during the review have left the Council open to low risk. If the risk materialises it would have a minor impact upon the organisation. Recommendation priority High Significant control failure or weakness that, if not addressed, may lead to a major financial, operational or reputational risk to the organisation and/or significantly impact the successful delivery and achievement of the objectives of the area under review. Urgent/Immediate action is required. Medium Control failure or weakness that, if not addressed, may lead to a moderate financial, operational or reputational risk to the organisation. Weakness may be individually significant, but it is unlikely to affect the successful delivery and achievement of the overall objectives of the area under review. The risk of error would, however, be significantly reduced if corrective action were taken. Prompt action is required Low Control failure or weakness that may lead to a minor financial, operational or reputational risk to the organisation. Weakness does not appear to significantly affect the ability to meet objectives. Minor issue raised to improve the efficiency and effectiveness of controls. Page 13 of 124
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Appendix 2 Internal Audit Client Feedback Results Responses received in this period from 2 clients related to assignments reported to the Panel (note these responses primarily relate to audit assignments reported in the Internal Audit Progress Reports presented to the August 2025). Question Strongly Agree or Agree (%) Neither Agree nor Disagree (%) 1. Internal Audit added value to my area by assisting in providing assurance and/or identifying weaknesses and/or improvements in relevant governance/business process and internal controls 100% 0% 2. Internal Audit findings were accurate and clearly communicated 100% 0% 3. The audit report made relevant, constructive and practical recommendations to help improve operations 100% 0% 4. Internal Audit staff were professional and courteous throughout the audit process 100% 0% Where management raise concerns over Internal Audit’s work, these matters are discussed with relevant senior management to fully understand the nature of any concerns and, where it is considered appropriate, to identify areas for improvement. We also seek Services’ views on what they liked or disliked about the audit process and comments received are used to inform future action plans for improving the service provided by Internal Audit. Page 14 of 124
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1 ` INTERNAL AUDIT REPORT CYBER SECURITY Headlines As part of the 2022-23 Internal Audit plan, we reviewed the Council’s arrangements for guarding against common cyber security threats and attacks. The report concluded that while these arrangements appeared to be largely commensurate with good practice, and significant resources had been devoted to cyber security activities and improving the control environment, there was a need for the Information Security Action Plan to provide a clearer mechanism for identifying and monitoring planned cyber security activities. Additionally, Audit Scotland’s 2023/24 Annual Audit Report contained one finding and recommendation in relation to IT security. The purpose of this audit was, therefore, to assess the extent to which Service management have implemented the recommendations from the previous internal and external audit reports, and to review the adequacy and effectiveness of the arrangements and controls that the Council has developed and strengthened to continue to guard itself against increasingly complex cyber security threats and attacks. Cyber now underpins many aspects of everyday life and the risk of cyber-attacks to organisations, businesses and personal security continues to increase, with threats such as ransomware, online fraud, data theft and disruptive attacks continually growing in both sophistication and frequency. Such attacks are likely to result in serious disruption to the delivery of core services, adverse reputational impacts and significant additional financial costs (as has been demonstrated by recent cyber-attacks on the Western Isles Council, Arnold Clark, Marks and Spencer, the Co-op and West Lothian Council). Whilst the Council was not affected by any notable cyber incidents during the period of review, there is a need to continually monitor and review processes and methods for identifying and reacting to potential cyber-attacks at an early stage to minimise the consequences of any such attack. Based on the results of our work, we have categorised this audit as offering reasonable assurance. We were pleased to note that the previously agreed recommendations have largely been addressed and are generally satisfied that the Council is following best practice, and has various formal and well-established arrangements for identifying, and taking mitigating action against, any identified threats and potential cyber-attacks. However, we have identified some areas for improvement, which are detailed at Section 3 of this report and include: • There is scope to review and enhance the Council’s cyber security framework. • There is a need to consider, and report to senior management, on the feedback provided by the Digital Office for Scottish Local Government following the recent cyber resilience exercise. Internal Audit Opinion Reasonable Assurance Priority of Recommendations High Medium Low 0 2 1 Organisational Impact Major Report status FINAL Audit ref 0400/2025/001 Date issued 11/06/2025 Audit Team Lynn McCrum, Jacquie Howden and Lesley Armstrong Issued To Chief Officer (Legal and Democratic Services), Legal Manager (Enterprise) and Information Risk Manager Copied To Chief Officer (Finance and Technology) (for information only) Chief Executive and Depute Chief Executive Page 15 of 124
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2 1. Executive Summary Objectives The audit sought to answer the following questions: • Has the Service fully addressed the recommendations made, and management actions agreed, in the previous internal audit report issued in January 2023, and the annual external audit report for the year ending 31 March 2024? • Does the Council have appropriate arrangements in place to assess compliance against expected national standards to ensure it is adequately protected from cyber-attacks and threats? Have issues arising from this been translated into an action plan which is tracked and monitored? • Does the Council appropriately and promptly re-assess its cyber security arrangements, considering local and national incidents, to identify any vulnerabilities and subsequent action required to maintain the security of its network? Work undertaken involved discussions with relevant officers and obtaining and reviewing appropriate evidence to meet the audit objectives. This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • The Council has appropriate governance structures in place relating to information governance and information security which includes the Data Governance Board and Data Management Team. • There is an information security and information governance corporate risk, with corresponding controls and actions identified, and this is monitored regularly in line with the associated residual risk rating. • The Council follows best practice wherever possible, complying with the requirements of the Scottish Government Cyber Resilience Framework, working toward the adoption of recommendations published by the National Cyber Security Centre (NCSC) and aligning their IT related security measures to the National Institute of Standards and Technology (NIST) Cyber Security Framework. • The Council’s Digital and IT Strategy outlines the main deliverables for 2023-27 from a digital/cyber perspective, and progress in respect of these is monitored quarterly through the Digital North Lanarkshire Programme of Work Board and its sub-boards. • A suite of malware protection products has been fully deployed (e.g. antivirus software, web filtering and email malicious content/payload detection systems) in addition to real-time analysis of security threats identified and managed through deployment of Security Incident Event Management (SIEM) software within the corporate estate. An exercise is currently being undertaken to consider extending the SIEM software to the education estate. • There are robust authentication and access control procedures (including multi-factor authentication) in place to protect Council systems from unauthorised access. • All staff are required to complete the mandatory Information Security Awareness training module. • The Council commissioned the Digital Office for Scottish Local Government to run a cyber scenario event for senior officers from all Council Services to establish the level of cyber resilience and preparedness at both a corporate and Service level. Key areas requiring management action (High Priority) No areas requiring urgent management action have been identified. Other areas for improvement (Medium Priority) A number of other areas for improvement were also identified: • There is scope to review and enhance the Council’s cyber security framework. • There is a need to consider, and report to senior management, on the feedback provided by the Digital Office for Scottish Local Government following the recent cyber resilience exercise. Page 16 of 124
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3 3. Action Plan Cyber Security 0400/2025/001 Ref Finding 1 There is scope to review and enhance the Council’s cyber security framework. Following approval by the Policy and Strategy Committee in September 2024, a restructure of the Chief Executive’s Service resulted in the deletion of Business and Digital and the realignment of the teams within this Service to Finance and Technology, Legal and Democratic Services and Strategy and Engagement. The Information Security and Risk function transferred to Legal and Democratic Services in April 2025, creating a central point for information governance that ensures compliance across all related functions, including information risk and the increasing focus required on cyber security to manage and co-ordinate the Council’s approach to provide information security assurances and address cyber security threats. The Council has various formal and well-established arrangements for identifying, and taking mitigating action against, any identified threats and potential cyber-attacks, however, as the information governance and security landscape is ever-changing, the Council is continually striving to improve its processes and strengthen the control environment to ensure continued compliance with all information governance legislative and regulatory requirements and to help protect the Council from cyber-attacks and security breaches. Whilst we were pleased to note that there are generally adequate cyber security arrangements in place, we consider that the recent restructure provides an opportunity to review and enhance the cyber security framework. We have therefore identified a number of areas which we consider could be incorporated into such a review as follows: • There is currently no separate corporate cyber security risk. The risk, controls and associated actions to minimise the impact that cyber security incidents could have on the Council’s ability to deliver its services forms part of the ‘RIS00019 – Information Security and Information Governance’ risk which has a high corporate residual risk assessment, reflecting the high likelihood and potentially high impact any threat would have on the Council. We consider that, given the high residual risk assessment and recent increase in cyber security threats to, and attacks on, public services, there is a need to review the current risk, and associated controls and actions, to determine whether cyber security should be the focus of a separate corporate risk on the Council’s corporate risk register. • As a result of the recent restructure, the Information Security and Risk Team has been ‘split’, with three members of the team (2.8 FTE) transferring to Legal and Democratic Services and the remaining two transferring to Finance and Technology. We consider that a review of the remit, roles and responsibilities of the staff that transferred to Legal and Democratic Services should be undertaken to determine whether the resource is sufficient to fully meet its strategic and operational objectives. • An action plan is in place to address the actions arising from the Digital and IT Strategy and a workload plan for the Information Security and Risk Team to record and assign tasks. However, there is no comprehensive action plan for recording issues, vulnerabilities and/or areas for improvement, in respect of cyber security, identified through various channels (e.g. self-assessment and horizon scanning), together with the action required to address these issues, responsible officers and completion timescales, progress of each action and outcome/impact of completed actions. • The ICT Security – Major Incident Management Plan outlines the process to be followed where it is suspected that a major incident has occurred that affects the availability, confidentiality and/or integrity of ICT systems hosted or directly managed by the Council. However, we consider that there is a benefit in raising the profile and awareness of cyber security within Services to ensure that their risk registers, Business Continuity Plans and ICT Disaster Recovery Plans provide adequate detail in respect of the arrangements/workarounds should there be a cyber-attack affecting one or more Council services. • There is currently no forum within the Council, in a similar vein to the Risk Management Corporate Working Group, for discussing and sharing issues and practices, and identifying and implementing improvement actions, in relation to cyber security. • Whilst an annual governance assurance and performance report is presented by the Senior Information Risk Owner (SIRO) to senior management and elected members, there is currently no requirement for periodic reports to be routinely presented around the adequacy of the Council’s cyber security arrangements and the level of preparedness should there be a cyber-attack. Although Legal and Democratic Services is primarily responsible for cyber security, we recognise that a multi-disciplinary range of stakeholders equally have roles to play in supporting the cyber security programme. Page 17 of 124
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4 3. Action Plan Cyber Security 0400/2025/001 Implication Recommendation Priority Management response Implementation Date The absence of a separate cyber security risk in the Corporate Risk Register may lead to insufficient focus being given to the ever- evolving nature of cyber threats and inadequate controls being put in place to mitigate these threats. Insufficient resources dedicated to information risk and cyber security may result in an increased vulnerability to Council systems and data which could increase the likelihood of data breaches and disruption to the delivery of core services. Failure to have appropriately detailed action plans may result in an increased risk to the successful delivery of the actions stated in the work plan and the achievement of intended outcomes. The Chief Officer (Legal and Democratic Services) should ensure that a formal review of the cyber security framework is undertaken, with a view to identifying improvements in the current cyber security arrangements. This review should include, but not be limited to, consideration of the specific issues referenced in the finding. Medium Agree Fiona Ekinli, Legal Manager (Enterprise) The Chief Officer (Legal and Democratic Services) will initiate a comprehensive review of the current cyber security arrangements to identify opportunities for improvement. This review will not only address the specific issues highlighted in the audit finding but will also encompass the following enhancements: (1) Conducting a thorough risk assessment to identify emerging threats and vulnerabilities. (2) Benchmarking our cyber security practices against industry standards and best practices. (3) Engaging key stakeholders across departments to ensure a holistic understanding of cyber risks and controls. (4) Reviewing and updating existing policies, procedures and incident response plans to enhance effectiveness. (5) Establishing a regular review cycle to ensure continuous monitoring and improvement of the cyber security framework. March 2026 Page 18 of 124
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5 3. Action Plan Cyber Security 0400/2025/001 Ref Finding 2 There is a need to consider, and report to senior management, on the feedback provided by the Digital Office for Scottish Local Government following the recent cyber resilience exercise. The Digital Office for Scottish Local Government was commissioned by the Council to run a cyber scenario event to assess the Council’s strategic level response to a cyber incident which had the potential to have a significant disruption to services. The event, which took place in February 2025, was attended by officers from across all Services, with a large proportion of those attending being senior managers. The exercise was designed as a discursive workshop aimed to improve attendees’ understanding on assessing cyber threat and risks, identify how critical services would continue to be delivered and test the robustness of the Council, and Services’, business continuity arrangements. Following the exercise, the Digital Office submitted a draft report to the Information Security and Risk Team which outlined their observations and recommendations. A high-level action in respect of these has been included on the Information Security and Risk Workload Plan, however, we consider that each of the observations and recommendations should be considered individually to identify appropriate actions for inclusion on an action plan. We also noted that, to date, there has been no feedback or detail presented to the Corporate Management Team (CMT), wider Services’ Senior Management Teams in respect of the Digital Office’s findings and recommendations. Implication Recommendation Priority Without a clear well-defined action plan, there is a risk that the issues identified may not be taken forward and suitably addressed. The Chief Officer (Legal and Democratic Services) should: (1) Liaise with both the Depute Chief Executive and Resilience Planning Unit to ensure that appropriate consideration is given to the feedback received from the Digital Office and that detailed actions to address the issues highlighted and recommendations made are included on an action plan with associated timescales, which is thereafter regularly monitored to track the progress of individual actions. (2) Ensure that both CMT and Services’ Senior Management Teams are informed of the Digital Office’s findings and recommendations arising from the recent cyber resilience exercise and the proposed action(s) being taken by the Council to address these. (3) Consider using the feedback from the cyber resilience event to further raise the profile of cyber security across the Council’s services and employees. Medium Page 19 of 124
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6 3. Action Plan Cyber Security 0400/2025/001 Management response Implementation Date Agree Rachel Blair, Chief Officer (Legal and Democratic Services) and Fiona Ekinli, Legal Manager (Enterprise) (1) The Chief Officer (Legal and Democratic Services) will liaise with both the Depute Chief Executive and the Resilience Planning Unit to ensure that the feedback from the Digital Office is thoroughly reviewed and used to inform a comprehensive, time-bound action plan. This plan will address all issues and recommendations raised, with clear ownership of each action. This plan will be integrated into the broader risk management and governance processes, ensuring it is monitored at regular intervals through established corporate performance frameworks. Progress will be reported to the CMT and relevant Committees to maintain strategic oversight. (2) The findings of the Digital Office’s cyber resilience exercise and the Council’s corresponding action plan will be formally communicated to the CMT and SMTs across all Services. In addition, a summary report and briefing sessions will be arranged to facilitate understanding of the implications of the findings and to encourage accountability for action across all service areas. (3) The feedback from the cyber resilience event will be used as an opportunity to raise the profile of cyber security across the Council. This will include an internal cyber awareness campaign aligned with national Cyber Scotland Week; consideration of incorporation of key learning points into staff training and induction programmes; exploring opportunities for simulated cyber scenarios to further enhance preparedness; and regular updates and reminders are provided through corporate communication channels. March 2026 Page 20 of 124
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7 3. Action Plan Cyber Security 0400/2025/001 Ref Finding 3 There is a need for current and proposed activities in respect of ICT disaster recovery planning to be progressed. 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 ICT Disaster Recovery Plans which provide detail on the recovery of Council-owned IT systems, and a separate ICT Security – Major Incident Management Plan which focuses on the ICT response elements of a major systems breach. Until recently, details in respect of the Council’s ICT systems were held on an ICT Applications Catalogue, which acted as a central register for these systems, however, these details are now recorded on ServiceNow, a cloud-based system used by the Council for its service management. We were advised that Product Owners for each critical system/application have been asked to confirm that their Disaster Recovery Plan has been reviewed and tested in the year to date or determined as no longer relevant (e.g. if the system was decommissioned or migrated to a cloud provider) and ServiceNow will be updated to reflect this information, however, this exercise is not yet complete. Additionally, our review of the suite of documentation pertaining to the ICT Disaster Recovery Management processes identified content within some documents (e.g. ICT Disaster Recovery Operations Manual and ICT Systems Resiliency and Disaster Recovery Standard) which was out of date and did not reflect current practices. Plans for the procurement of corporate wide software for Business Continuity, ICT Disaster Recovery, Incident Management and potentially Risk Management are currently underway and we understand that these documents are scheduled to be reviewed and revised once the planned ICT Disaster Recovery Management System has been procured and implemented. Implication Recommendation Priority Management response Implementation Date Failure to have adequate Disaster Recovery Plans may lead to confusion and delays in restoring critical business processes, impacting on the delivery of core services. The Chief Officer (Legal and Democratic Services) should ensure that: (1) The current exercise being undertaken in respect of ICT Disaster Recovery Plans for critical systems/applications is progressed and completed timeously, with ServiceNow appropriately and promptly updated. (2) All documentation pertaining to ICT disaster recovery is reviewed and updated to ensure that it fully reflects current practices. Low Agree Rachel Blair, Chief Officer (Legal and Democratic Services) and Fiona Ekinli, Legal Manager (Enterprise) (1) The ongoing exercise to review and update ICT Disaster Recovery Plans for all identified critical systems and applications will be prioritised and completed within the required timescales. Upon completion, all relevant information will be accurately reflected and promptly updated within the ServiceNow platform to maintain a current and accessible record of our disaster recovery position. (2) A comprehensive review of all ICT Disaster Recovery documentation will be undertaken to ensure it reflects current processes, roles, responsibilities, and system configurations. This will include verification with system owners and technical leads to ensure accuracy and relevance. The updated documentation will be subject to regular review cycles moving forward. March 2026 Page 21 of 124
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8 INTERNAL AUDIT REPORT EMPLOYEE SERVICE CENTRE – SELECTED KEY CONTROLS Headlines The purpose of this audit was to provide independent assurance on selected key controls associated with the operation of the Council’s payroll system. This included a review of the controls for notifying and processing changes to employees’ contracts and/or contractual pay, and the completion of testing on a sample of non- standard payments. Based on the results of our work, we have categorised this audit as offering reasonable assurance. We are generally satisfied that the control framework and management arrangements are adequate and operating effectively, with employee change requests being processed consistently, accurately and in line with guidance and quarterly second officer checks being undertaken by the HR Audit and Compliance Team on a sample basis. We also noted that the claims for the non-standard payments in the sample reviewed appeared legitimate and were generally correctly calculated, supported by adequate documentation and appropriately authorised. However, additional work undertaken on non-standard payments identified some errors and issues in relation to casual worker payments being made to staff with contracted hours posts and casual workers receiving payments, often at enhanced rates, which are not stated in their contract. We have identified some areas for improvement which management should consider. These are detailed in the action plan at section 3 of this report and include: • A review of the arrangements for second officer checks to enhance their effectiveness. • Scope to improve the controls for processing employee change forms. • A number of issues in respect of non-standard payments. Internal Audit Opinion Reasonable Assurance Priority of Recommendations High Medium Low 0 3 1 Organisational Impact Moderate Report status DRAFT Audit ref 0350/2025/002 Date issued 14/07/25 Audit Team Euan Campbell and Lesley Armstrong Issued To Chief Officer (People Resources) Copied To Chief Executive and Deputy Chief Executive Page 22 of 124
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9 1. Executive Summary Objectives The audit sought to answer the following questions: • Are there effective controls in place to ensure that notifications of changes to employees’ records have been processed consistently and in line with approved guidance/procedures? • Are Employee Change Forms supported by appropriately authorised documentation and have they been processed promptly and accurately on iTrent, from the correct date and/or the correct amount (where applicable)? • Are non-standard payments to employees correctly calculated, in accordance with contractual entitlement, and supported by adequate and properly authorised documentation? Testing involved assessing the effectiveness of the processes surrounding the notification, authorisation and processing of changes to employees’ terms and conditions and review of a sample of 25 non-standard payments made between April and December 2024. Our review also included data analysis on all non-standard payments made between January and April 2025, to employees on both contracted hours and casual contracts, to determine whether the correct element code had been used. This engagement has been conducted in accordance with the Public Sector Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • Employee change forms, which notify the Employee Service Centre of required changes to employees’ records, are submitted via the myNL Portal or MS Forms. These forms contain mandatory fields to ensure that all the required information is submitted promptly and consistently. • Quarterly second officer checks on a sample of employee change forms submitted via the myNL Portal are undertaken by the Audit and Compliance team within the Employee Service Centre to ensure that employee changes are processed accurately and consistently and are supported by appropriately authorised documentation. • The Council has well-established rules and guidance covering both entitlement to, and processing of, non- standard payments to staff. • Proforma templates for claiming non-standard payments are held on mySelf, providing a standardised approach to submitting claim information. • The Council operates a comprehensive system of delegated control through an authorised signatory database, and this has been linked to the iTrent system and myNL Portal to ensure that payroll and HR transactions are only raised or approved by authorised officers. Key areas requiring management action (High Priority) No areas requiring urgent management action have been identified. Other areas for improvement (Medium Priority) A number of other areas for improvement were also identified: • Arrangements for second officer checks should be reviewed to enhance their effectiveness. • There is scope to improve the controls for processing employee change forms. • A number of issues in respect of non-standard payments were identified. Page 23 of 124
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10 3. Action Plan Employee Service Centre – Selected Key Controls 0350/2025/002 Ref Finding 1 Arrangements for second officer checks should be reviewed to enhance their effectiveness. Quarterly second officer checks are undertaken on a random sample of employee changes to ensure that action taken is appropriate and accurate and supported by sufficient documentary evidence. Details of the Service, employee number, employee name and advisor who processed the change and comments on the outcome of the checks are recorded on an audit spreadsheet. Our review of this spreadsheet confirmed that it is generally fully completed, indicates a good level of processing accuracy and clearly states the issues arising and subsequent action taken. However, we noted a small number of areas for improvement as follows: • As all information relating to the checks undertaken is recorded in a single ‘comments’ column, it was often difficult to determine the checks undertaken, whether the outcome of initial checks was satisfactory or not, any issues arising, details of follow-ups or escalation and the current status of the check (i.e. ongoing or complete). We consider that the spreadsheet would benefit from this information being recorded in separate columns. • There were several instances where issues arising from second officer checks had been outstanding for lengthy periods of time (quarter 3 of 2023), which indicates that there is a lack of regular follow-up and escalation processes by the Audit and Compliance team to notify managers and advisors who are not promptly responding to, and actioning, queries arising from the checks. • There is no formal process to identify recurring issues or errors arising from the quarterly checks and reporting these to management to enable appropriate action to be taken to alleviate these issues. Our review identified a number of recurring issues including no contract or contract variation being issued, relevant document (i.e. change form, contract offer, working pattern spreadsheet) not being uploaded to iTrent; and a lack of documentary evidence provided for higher duties payments processed by the Service. Implication Recommendation Priority Management response Implementation Date There is a risk that issues identified are not sufficiently and promptly resolved, which could lead to increased errors and/or insufficient documentation being held to support changes made. The Chief Officer (People Resources) should: (1) Consider reviewing and updating the spreadsheet for recording second officer checks to include additional columns to more clearly state the checks undertaken, whether the outcome of the checks was satisfactory or not, any issues arising, details of any follow-ups and escalation and the status of the check. (2) Introduce a process for undertaking regular follow-up and escalation of outstanding issues to ensure that issues arising from second officer checks are resolved in a timely and consistent manner. (3) Introduce a formal process for identifying and reporting to management any recurring issues arising from second officer checks and thereafter, use this information to inform training sessions for officers processing employee changes. Medium Agree Gillian Quinn, Employee Service Centre Manager (1) The spreadsheet tracker will be reviewed and amended to reflect the recommendations. (2) There is an escalation process in place whereby the senior advisor in the team is notified. However, there are no preset timescales. A process will be documented and circulated, and escalation will be amended to Team Manager for oversight. (3) There is a process in place to advise senior advisors/team leads of staff who have reoccurring issues. In addition, If the team identify a re-occurring error that is consistent across the teams they will issue further guidance and/or training and communicate this. However, these processes are not documented or reported. A summary report will be created and distributed to team managers. October 2025 October 2025 October 2025 Page 24 of 124
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11 3. Action Plan Employee Service Centre – Selected Key Controls 0350/2025/002 Ref Finding 2 There is scope to improve the controls for processing employee change forms. Enquiries relating to HR and Payroll, including notifications of changes to employees’ records, are now submitted via the MyNL Portal (the Portal). The Portal enables managers and staff to raise queries, ensuring that all mandatory information is provided prior to being submitted, and track progress by recording all actions taken, including requests for further information. The Portal is currently used by all Services with the exception of Education staff, who continue to submit notifications of change via MS Forms, however, we were advised that they are expected to move to the Portal in September 2025. We consider that the Portal provides more robust controls than MS Forms in relation to submission of requests by authorised officers, recording of actions taken and any further information requested/obtained, monitoring of progress of individual tasks and management/performance information. Therefore, it is important that the implementation of Portal for Education staff is progressed in line with the stated timescales. From our review of the Portal, we noted that, whilst access to submit employee change forms is restricted to authorised signatories, the Portal does not prevent users from submitting changes relating to their own pay/conditions. We were advised that there are checks in place to confirm authorisation prior to processing requests, however, we consider that prevention is a more effective control. The Portal contains a Dashboard screen which enables Senior Advisors to review the tasks allocated to individual advisors within their team, including action taken to date, current status and length of time taken to complete tasks and this is reviewed by the Senior Advisors each day to identify any issues requiring follow-up with the Advisor. We were advised that it is intended to use the Dashboard to monitor performance on a regular basis, however, this has not yet been introduced. We obtained a report detailing all Portal requests between April 2024 and February 2025 and noted that, of the 567 completed/cancelled requests, 54 (10%) took more than 20 working days to complete. People Resources advised that the timescales for completing requests are often overstated as they do not account for the payroll close time and do not reflect the time taken for managers to provide all supporting documentation. Additionally, testing on a sample of five tasks with a significant number of working days to complete confirmed that three were delayed as they were awaiting information from other teams, however, the Portal did not always contain full details of the action taken, including follow-up/reminders issued by Advisors or confirmation that these were escalated to Senior Advisors for further action and there were often lengthy periods between reminders being issued. Implication Recommendation Priority Management response Implementation Date Requests for changes to pay and conditions may be submitted by authorised users for personal gain. If performance on processing employee change forms is not monitored, requests submitted may not be followed up and/or escalated promptly which could lead to delays in processing and incomplete records of action taken. The Chief Officer (People Resources) should: (1) Ensure that appropriate and timely action is taken to roll out the Portal to Education staff. (2) Explore the implementation of additional controls within the Portal to prevent authorised users from being able to submit requests relating to their own pay and conditions. (3) Introduce a process for monitoring performance in relation to processing employee change forms submitted through the Portal. This should include setting appropriate timescales for processing and ensuring that the Portal fully reflects details of the action taken (including reminders and escalation to Senior Advisors) and the reasons for delays. Medium Agree Gillian Quinn, Employee Service Centre Manager (1) The portal is scheduled for delivery by the end of September 2025 and there is a project plan in place to facilitate timely delivery. (2) Additional control methods will be explored and evaluated. (3) Longer term, it has always been the intention to introduce KPIs. Advice from consultants was to wait until the portal was fully rolled out. This will ensure there is accurate data that can be measured and averaged to set meaningful KPIs. Once agreed and in place, team managers will be able to monitor performance against agreed KPIs via a dashboard. The reasons for the timescales for completing requests being overstated will be considered when agreeing data to be included in future KPI’s. September 2025 November 2025 November 2026 Page 25 of 124
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12 3. Action Plan Employee Service Centre – Selected Key Controls 0350/2025/002 Ref Finding 3 A number of issues in respect of non-standard payments were identified. From our review of a sample of 25 non-standard payments, we are generally satisfied that payments are correctly calculated, in accordance with contractual entitlement and supported by adequate and appropriately authorised documentation. We did, however, identify a small number of issues including two payments where the incorrect rate had been applied resulting in small overpayments (under £15 each), one payment where the Service was unable to provide appropriate documentation to support the full transactions and two payments where supporting documentation contained cut and paste signatures, but no email was provided to us to support authorisation. We also obtained an iTrent report which detailed payments made under all element codes between January and April 2025 and whether they were allocated to a contracted or casual post. We undertook some data analysis on this report which identified the following issues: • Casual worker payments totalling £17,720 allocated to 47 posts with contracted hours. • Casual/sessional workers are generally only entitled to casual worker payments and casual holiday pay. However, we noted a number of casual/sessional workers who were in receipt of other payments which are not stated in their casual/sessional contracts and are often at enhanced rates (e.g. standby, disturbance allowance, non-core hours, overtime and public holiday enhancements). Whilst some of these payments appear to be errors, we were advised that, given the requirement to undertake certain services, local arrangements were in place to permit some sessional roles to claim these payments. However, we found no evidence to support these arrangements. Additionally, there appeared to be a lack of consistency in the types of payments claimed by different sessional workers. Details of the issues/errors identified will be provided to People Resources under separate cover. We were pleased to note that the HR Audit and Compliance Team obtain a report from iTrent after each payrun and review it to identify and correct any payments allocated to the incorrect element codes. Issues in relation to the incorrect use of element codes were raised in the previous audit report in this area (audit ref 0350/2024/001) and management action to resolve these issues and potentially restrict element codes available to individual employees is currently underway. Implication Recommendation Priority Management response Implementation Date There is a risk that payments may be made which have not been calculated correctly, to staff who are not entitled to them and/or that have not been authorised by appropriate levels of management. Staff may not be fully aware of the payments and rates that they are entitled to and this could lead to inconsistency in claims made by different staff. The Chief Officer (People Resources) should: (1) Determine the types of payments that casual/sessional workers are entitled to, including those at enhanced rates, and ensure that this entitlement is agreed, documented and clearly recorded in employees’ contracts. (2) Identify and correct any issues/errors arising from the finding, particularly in relation to casual worker payments being allocated to posts with contracted hours and/or casual/sessional workers in receipt of payments which they are not entitled to. (3) Issue a reminder to all Services advising that, appropriately completed and authorised documentation must be retained to support all non-standard payments which are not recorded directly by the employee, and authorised by the appropriate manager, on Myself. This should include advising that, where documentation cannot be physically signed by an authorised officer, an email confirming authorisation should be sent to the team processing the payment on iTrent and retained. Medium Agree Gillian Quinn, Employee Service Centre Manager (all) and Linda Cullen, Employment and Policy Manager and Adrienne Henry, HR Business Partnership Manager (1 only) (1) A working group will be formed to identify and collate differences across casuals/sessional workers payments and agree terms and conditions that should be included in the contract. (2) The issues/errors may have already been corrected during the HR Compliance and Audit team’s normal process. Findings could be a timing issue. However, the 47 entries highlighted will be reviewed, checked and corrected if required. Current process and report for checking to be reviewed. (3) A communication will be issued to authorised signatories and managers advising that, appropriately completed and authorised documentation must be retained to support all non-standard payments which are not recorded on Myself. July 2026 October 2025 July 2025 Page 26 of 124
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13 3. Action Plan Employee Service Centre – Selected Key Controls 0350/2025/002 Ref Finding 4 A review of the Standing Operating Procedures for processing employee change forms should be undertaken. Standard Operating Procedures (SOPs), which provide guidance detailing how to process employee change forms, have been prepared and made available to the People Operations team. From our review of the SOPs, we noted the following: • No SOPs have been produced for some of the key employee change forms (i.e. changes to contracted hours, flexible or phased retirement, revert to substantive post and salary change). • Some of the SOPs have not been updated for some time and are therefore out of date, referring solely to MS Forms and not the recently implemented MyNL Portal. • The SOPs do not follow a consistent format. We were advised by the Service that a review of the SOPs is currently underway. Implication Recommendation Priority Management response Implementation Date If SOPs are not available for all employee change forms and are not consistent and up to date, there is a risk that the procedures do not reflect current practice and changes may not be processed consistently and accurately. The Chief Officer (People Resources) should ensure that the review of the SOPs for employee changes forms is completed, resulting in SOPs for each type of change which provide clear guidance for processing which reflects current practice, refers to both MS Forms and the MyNL Portal (as appropriate) and follows a consistent format. Low Agree Gillian Quinn, Employee Service Centre Manager There is work underway to review all standard operating procedures (SOP’s) held at ESC. This is being carried out on a team-by-team basis and will be more detailed to include process maps, SOP’s and work instructions. Implementation period is difficult to predict and may change as currently there is no dedicated resource in place to coordinate the process. April 2026 Page 27 of 124
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https://nlcgov.sharepoint.com/sites/AUR-INTERNALAUDITMANAGEMENT/Shared Documents/AUDIT AND SCRUTINY PANEL/2025/August/C1b 20250723 Pack of Audit Reports.docx 14 INTERNAL AUDIT REPORT CORPORATE GOVERNANCE 2024-25 Headlines This was a focussed review which sought to provide assurance on the adequacy and robustness of the Council’s arrangements for ensuring that it complies with the CIPFA Delivering Good Governance in Local Government Framework 2016, including self-assessment against the Framework and implementation of improvement actions. Based on the results of our work, and wider general knowledge gained from previous Internal Audit reviews, we consider that the Council’s corporate governance arrangements in relation to the self-assessment are adequate and operating effectively and have therefore assessed this audit as providing substantial assurance. The Council has established a Strategic Governance Framework which demonstrates its commitment to good governance, and this framework is reviewed and refreshed annually to ensure it remains consistent with the principles of the Delivering Good Governance Framework. Strategy and Engagement undertake a self- assessment exercise against the Framework, including completion of checklists and certificates of assurance by Chief Officers and ALEO Chief Executives to confirm that governance arrangements and financial controls within their Service are working well and to raise any matters of significance. We were pleased to note that the annual self-assessment indicated a high level of compliance with the Framework which demonstrates that the arrangements, which have been developed and matured over a number of years, are working well. Additionally, we noted that there were appropriate arrangements in place to monitor and progress improvement actions identified. The outcome of this self-assessment and review exercise, along with consideration of issues arising from internal and external audit reviews, inspections from external bodies and improvement actions or future developments, are used to inform the Annual Governance Statement which, along with an update on the Strategic Governance Framework, is reported to the Audit and Scrutiny Panel each year. No areas for improvement have been identified, however, we consider that it is important that the Council continues to monitor changes in the legal, risk and control environment and adapt its governance arrangements accordingly to ensure that the current level of compliance is maintained. This engagement has been conducted in accordance with the Public Sector Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. Internal Audit Opinion Substantial Assurance Priority of Recommendations High Medium Low 0 0 0 Organisational Impact Minor Report Status FINAL Audit Ref 0900/2025/008 Date Issued 17/07/25 Audit Team Elaine MacDonald and Lesley Armstrong Issued To Chief Officer (Strategy and Engagement), Strategy and Customer Experience Manager and Strategy and Performance Manager Copied To Chief Executive and Depute Chief Executive Page 28 of 124
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https://nlcgov.sharepoint.com/sites/AUR-INTERNALAUDITMANAGEMENT/Shared Documents/AUDIT AND SCRUTINY PANEL/2025/August/C1b 20250723 Pack of Audit Reports.docx 15 INTERNAL AUDIT REPORT STRATEGIC GOVERNANCE ARRANGEMENTS Headlines The purpose of this audit was to assess the adequacy and effectiveness of the recently revised strategic governance arrangements in place to oversee the delivery of the Programme of Work (PoW) to 2028. The five-year PoW, approved in March 2023, outlines seven key delivery priorities (Transforming Places, Invest in North Lanarkshire, Sustainable Futures, Resilient People, Brighter Futures, Digital North Lanarkshire and One Service). The audit focussed on assessing the governance arrangements for monitoring progress against these priorities and the effective oversight by both senior officers and elected members, to determine whether these arrangements are sufficiently robust to support delivery of the Council’s agreed strategic objectives. Based on the results of our work, we consider that the Council’s strategic governance arrangements are adequate and operating effectively and have therefore, assessed this audit as providing substantial assurance. We were pleased to note that the governance arrangements across the seven priorities are both robust and consistent, with effective oversight provided through regular Strategic Board meetings and progress reporting to senior officers and elected members. One minor area for improvement, in relation to further development and implementation of benefits realisation arrangements, has been identified for management consideration and this is outlined in the action plan at Section 3. Internal Audit Opinion Substantial assurance Priority of Recommendations High Medium Low 0 1 0 Organisational Impact Minor Report status FINAL Audit ref 0900/2026/003 Date issued 12/08/2025 Audit Team Susan Whyte and Lesley Armstrong Issued to Chief Officer (Strategy and Engagement), Business Strategy Manager and Strategy and Performance Manager Copied to Chief Executive, Depute Chief Executive and all Chief Officers Page 29 of 124
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https://nlcgov.sharepoint.com/sites/AUR-INTERNALAUDITMANAGEMENT/Shared Documents/AUDIT AND SCRUTINY PANEL/2025/August/C1b 20250723 Pack of Audit Reports.docx 16 1. Executive Summary Objectives This audit sought to provide independent assurance on the following: • Are there governance structures that provide effective oversight, challenge, scrutiny and direction, both from senior management and elected members? • Are the governance structures in place effective in ensuring progress with the Programme of Work and achievement of its objectives? The work involved discussions with key officers to understand the governance and performance arrangements supporting the PoW. This included a detailed examination of arrangements for three Strategic Boards (Transforming Place, Brighter Futures and One Service) and a high-level review of a sample of six projects and activities being monitored and reviewed by these boards. Detailed testing of the individual projects and activities was not undertaken as it was outwith the scope of this audit. This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • The Council has developed a comprehensive PoW to support the implementation of its strategic objectives. • Six Strategic Boards have been established to provided leadership and oversight for each of the seven priorities outlined in the PoW. Each Board operates under a clearly defined Terms of Reference that sets out its purpose and responsibilities. • Strategic Boards are chaired by Chief Officers, who sit on the Corporate Management Team (CMT). This ensures alignment between individual PoW priorities and the Council’s overarching strategic direction. • A detailed Delivery Plan has been developed to support implementation of the PoW. This plan is continuously reviewed and monitored, with comprehensive progress reports produced quarterly to monitor performance, highlight key developments and identify emerging issues. These progress reports are presented to, and discussed at, both CMT and the Strategic Boards. • A robust monitoring process is in place to ensure the Delivery Plan accurately reflects progress in relation to individual projects/activities being undertaken as part of the PoW. The monitoring process incorporates independent assessment and review mechanisms to ensure the accuracy and reliability of information presented to CMT and the Strategic Boards. • Six-monthly reports summarising key achievements and progress across all PoW priorities are submitted to the Policy and Strategy Committee. Additionally, an annually agreed timetable sets out more detailed progress reports on specific aspects of the PoW, which are presented to individual Service Committees throughout the year. • Programme Uncertainty Level Status Evaluation (PULSE) risk management arrangements have been introduced to help Strategic Boards assess confidence levels around key risks, understand interdependencies and evaluate potential impacts across all PoW priorities. Although still relatively new, this process continues to be developed and improved based on feedback and evolving needs. Key areas requiring management action (High Priority) No key areas requiring urgent management action have been identified. Other areas for improvement (Medium Priority) One other area for improvement was identified: • Benefit realisation arrangements for the PoW require to be further developed, and subsequently implemented, to ensure intended benefits are clearly defined, monitored and successfully delivered. Page 30 of 124
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17 4. Action Plan Strategic Governance Arrangements 0900/2026/003 Ref Finding 1 Benefit realisation arrangements for the PoW require to be further developed, and subsequently implemented, to ensure intended benefits are clearly defined, monitored and successfully delivered. A documented Benefit Realisation Approach for the PoW has been developed and was presented to, and approved by, the One Service Strategic Board in June 2025. A corresponding Project Benefit Realisation tracker has also been drafted, however this has not yet been finalised and is therefore not yet fully populated or in use. As a result: • There is currently no benefit realisation plan in place which provides details of the anticipated benefits to be achieved in relation to the overall PoW or individual Strategic Board deliverables/priorities. • The arrangements for reviewing and ensuring that the PoW and/or individual deliverables are on track to deliver their agreed/documented objectives and intended benefits are not yet in place. • Ongoing monitoring of or reporting on achievement of objectives/intended benefits to senior management or elected members is not currently undertaken. Additionally, as the process for identifying and recording benefits has not been sufficiently developed and tested, baseline performance and a plan to establish the information required to measure future impacts and/or changes in performance arising from the overall PoW and Strategic Board priorities have not yet been established. Implication Recommendation Priority Management response Implementation Date Without robust benefit realisation arrangements, the expected benefits of Strategic Board priorities and the overarching PoW may not be clearly defined or measured, resulting in ineffective performance monitoring, and an inability to achieve or demonstrate the successful delivery of intended outcomes. The Chief Officer (Strategy and Engagement) should ensure that benefit realisation arrangements for the PoW are finalised and implemented by each of the Strategic Boards. These arrangements should include clearly identifying and documenting the anticipated benefits of individual Strategic Board deliverables, along with robust processes for their calculation, ongoing monitoring, and regular reporting of achievement against agreed outcomes to key stakeholders. Medium Agree Stephen Penman, Chief Officer Strategy and Engagement The benefits realisation approach and tracker was approved at the One Service Board in March 2025. Implementation Plans are being developed for each of the Programme of Work Boards. Draft Benefits Realisation Plans will be submitted by each Board in early 2026 with the first annual report being due at the One Service Board in Cycle 2 2026. June 2026 Page 31 of 124
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18 INTERNAL AUDIT REPORT PROCUREMENT – NON-CONTRACT SPEND Headlines The purpose of this audit was to provide assurance on the adequacy and effectiveness of controls in place to identify non-contract spend and minimise expenditure with non-contracted suppliers to ensure that, where this type of spend does occur, there are valid and justifiable reasons. The Council is bound by legislation and regulations regarding procurement and, as such, has prepared General Contract Standing Orders (GCSOs) which apply to all arrangements relating to the supplies, provision of services and execution of works, made by, or on behalf of, the Council. In the review of 2022/23 spend, the Corporate Procurement Team (CPT) introduced a formal spend analysis to identify non-contract spend by Services and obtain explanations for instances of significant spend with no formal contractual arrangements in place. This process is repeated annually, with the analysis for 2024/25 being in progress at the time of our fieldwork. Based on the results of our work, we have categorised this audit as offering reasonable assurance. Whilst the process for identifying non-contract spend is considered robust and the outcome is reported to Chief Officers and discussed at the Corporate Procurement Working Group (CPWG), we consider that the justification for categorisation of spend could be more transparent and that Service comments would benefit from review and follow-up by the CPT. Additionally, given that the process is relatively new and is only undertaken annually, there is currently a lack of analysis, monitoring and reporting of recurring non-contract spend. We have therefore identified some areas for improvement which management should consider. These are detailed in Section 3 of this report and include: • There is scope to improve the process for analysing, recording, validating and reporting non-contract spend. • There is a need to ensure that Services are adhering to procurement regulations and the Council’s GCSOs. • There is a need to undertake comparative analysis of non-contract spend data to previous years to identify recurring spend and trends. Internal Audit Opinion Reasonable assurance Priority of Recommendations High Medium Low 0 3 1 Organisational Impact Moderate Report status FINAL Audit ref 0600/2026/001 Date issued 08/08/2025 Audit Team Euan Campbell and Lesley Armstrong Issued to Chief Officer (Assets and Procurement) and Procurement and Support Manager Copied to Chief Executive and Depute Chief Executive Page 32 of 124
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19 1. Executive Summary Objectives The audit sought to provide independent assurance on the following areas: • Robust processes exist to identify instances of non-contract spend, and levels of recurring non-contract spend are monitored and reported to senior management. • For any areas of non-contract spend, appropriate action is being taken by relevant officers to ensure contract arrangements are put in place in line with procurement regulations and GCSOs, or that instances where no arrangements are in place are justified. This engagement has been conducted in accordance with the Global Internal Audit Standards. The Internal Audit section reports formally on conformance with these standards to the Audit and Scrutiny Panel. We would like to thank officers involved in this audit for their cooperation and assistance. 2. Findings and Recommendations Good practice identified We noted the following areas of good practice during the audit: • The CPT undertake an annual analysis of expenditure to categorise spend and Services are required to provide comments on any areas of non-contract spend. • Management information in relation to the outcome of the annual analysis of non-contract spend is reported to, and discussed by, the Corporate Procurement Working Group (CPWG), then issued to Chief Officers for individual Service area review. • The Council’s Annual Procurement Report (APR) provides a summary of the regulated procurements that the Council expects to commence in the next two financial years. Commitments made by Services to formalise procurement arrangements are captured within the APR. Key areas requiring management action (High Priority) No key areas requiring urgent management action have been identified. Other areas for improvement (Medium Priority) A number of other areas for improvement were also identified: • There is scope to improve the process for analysing, recording, validating and reporting non-contract spend. • There is a need to ensure that Services are adhering to procurement regulations and the Council’s GCSOs. • There is a need to undertake comparative analysis of non-contract spend data to previous years to identify recurring spend and trends. Page 33 of 124
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20 3 Action Plan Procurement – Non-Contract Spend 0600/2026/001 Ref Finding 1 There is scope to improve the process for analysing, recording, validating and reporting non-contract spend. The CPT undertake an analysis, on an annual basis, of the previous year’s expenditure through the financial ledger to identify instances of spend with individual suppliers over £50,000 where no formal contract is in place. In such cases, the CPT ask the Service with the largest spend with each supplier to review the expenditure and provide an explanation on the contractual position and any proposed action. From our review of the spreadsheet used to record non-contract spend and document explanations from Services, we noted that there was no evidence to indicate that the Service comments had been reviewed and followed-up by the CPT to ensure that the comments were justified, make amendments to the contractual status and ensure that appropriate action was being taken to move toward contracted spend where appropriate. Other observations from the spreadsheet include: • There were some instances where suppliers identified as non-contracted contained no Service comments. • For suppliers identified as exempt, there was no record of the reason (or associated legislative clause) for classifying these suppliers as exempt and our testing on a sample of suppliers classified as exempt identified two suppliers where we were unable to link the exemption to procurement regulations. • There were some instances where, upon receipt of the Services’ comments, the contractual status was amended to either exempt or contracted, however, there was no commentary by the CPT to confirm the reason for this amendment. Additionally, there were some instances where the Service comments indicated that the spend should be exempt, however, there was no evidence that this had been considered by the CPT and no amendment to the status was made. • Despite Service comments for some suppliers indicating a commitment to establish a relevant contract and include this on their forward procurement plans, we noted that very few had been recorded on either or both the CPT and Service procurement plans or had commenced a procurement process. • A large value of spend (£1.74m in 2023/24) related to securing agency staff, however, despite this being previously recognised as an issue, there was no evidence of action being taken to classify or resolve it. • Our checks on a sample of three suppliers where the Service comments indicated that spend would cease for the following financial year identified that spend had continued with two of the suppliers, with spend increasing for one of these suppliers. Implication Recommendation Priority Management response Implementation Date The transparency and consistency of the spend analysis process may be reduced which could result in the Council not obtaining best value and an increased exposure to legal and reputational risk and/or fraud. The Chief Officer (Assets and Procurement) should review the current annual non-contract spend process to include a formal validation of the Service comments to ensure that each supplier has been correctly categorised, comments are justified and that any further action is appropriately monitored and actioned by the Service. This should include updating the non- contract spend spreadsheet to clearly indicate the view of the CPT, any amendments made to the contractual status as a result of Service comments, confirmation that future contracts are included on forward procurement plans, justification for categorising spend as exempt and follow-up of any outstanding comments. Medium Agree Brian Ferguson, Procurement and Support Manager The spend review for 2024/25 is currently in progress. The CPT will review the non-contract spend process and spreadsheet, in line with the recommendation, for the 2025/26 process onwards. CPT will ensure any spend classified as ‘exempt’ will have clear reference to the relevant Procurement regulations. October 2026 Page 34 of 124
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21 3. Action Plan Procurement – Non-Contract Spend 0600/2026/001 Ref Finding 2 There is a need to ensure that Services are adhering to procurement regulations and the Council’s GCSOs. The GCSOs clearly state that spend with an estimated aggregated value exceeding £50,000 for supplies and services and £500,000 for works, including a call off from a Framework Agreement, are regulated procurements which require to follow a formal procurement process including obtaining a contract reference number from the CPT and formally awarding a contract. We noted that there were some disparities between the CPT and Services as to whether regulated supplier spend should be classed as contracted or non-contracted, particularly where national frameworks were used to select suppliers. In such cases, some Services considered that there was no requirement to follow the procurement guidance by notifying the CPT for inclusion in the contract register, issuing a formal contract, reporting to Committee and adding a contract award notice to Public Contracts Scotland (PCS) as the framework used had already been subject to checks and competition. Our review of the spreadsheet for analysing non-contract spend identified a number of suppliers which were initially classed as non-contracted by the CPT but were subsequently amended to contracted by Services as they used external frameworks to select suppliers, however, no formal call off from the framework had been undertaken and the CPT had no record of any related contract. We also noted that this re-classification was inconsistent between Services. Our review also identified a number of suppliers where the Service comments within the non-contract spend analysis spreadsheet suggested that there was no reasonable alternative supplier within the current market, however, there was no evidence that a Negotiated Tender Procedure (NTP) had been undertaken by the Service to ensure that best value was obtained. Implication Recommendation Priority Management response Implementation Date Non-compliance with procurement regulations and the Council’s GCSOs could result in the Council not obtaining best value and being open to challenge from other contractors which may expose the Council to legal, financial and reputational risk. The Chief Officer (Assets and Procurement) should ensure that: (1) All Services are made fully aware of the requirements of procurement regulations and the Council’s GCSOs, particularly in relation to regulated procurements undertaken using external frameworks and the NTP. (2) Compliance with procurement regulations and GCSOs is monitored, and any exceptions/deviations are reported to the appropriate Chief Officer and/or CPWG. (3) The classification of contracted, non-contracted and exempt spend is applied consistently across all Services. Medium Agree Brian Ferguson, Procurement and Support Manager (1) A relevant procurement advisory will be prepared and published in the Procurement channel, and shared with CPWG, to re-enforce the need for compliance with the procurement regulations and the Council’s GCSOs, particularly in relation to regulated procurements undertaken using external frameworks and the NTP. (2) Monitoring and reporting to the CPWG and Chief Officers, taking cognisance of the audit recommendations and proposed actions, will form part of the ongoing / business as usual Spend Analysis and Non-Contract Spend reporting. (3) The spend review for 2024/25 is currently in progress. The CPT will review the non-contract spend process, in line with the recommendation and ensure that classification of contracted, non- contracted and exempt spend is applied consistently across all Services. December 2025 March 2026 October 2026 Page 35 of 124
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22 3. Action Plan Procurement – Non-Contract Spend 0600/2026/001 Ref Finding 3 There is a need to undertake a comparative analysis of non-contract spend data to previous years to identify recurring spend and trends. We were advised by the CPT that Services are expected to monitor non-contract spend on an ongoing basis, however, there is no formal process in place to ensure that Services undertake this expectation on a regular and consistent basis. From our discussions with a sample of Services identified as having non-contract spend, we noted that monitoring is generally reactive, through responding to the annual exercise undertaken by the CPT, rather than proactive. Additionally, despite the 2024/25 exercise which is currently underway being the third year of non-contract spend analysis by the CPT, no year-on-year comparison of non- contract spend has been undertaken by either the CPT or Services to identify suppliers with recurring high levels of spend. Our comparison of non-contract spend for 2022/23, 2023/24 and unverified figures for 2024/25 identified a high level of recurring spend with non-contracted suppliers. 45 suppliers identified as being non-contracted in 2022/23 continued to have non-contracted spend in 2023/24 with the overall spend with these suppliers increasing by around £2.3million. 18 of these suppliers had further non-contracted spend in 2024/25, however, the overall spend with these suppliers fell by around £4.3million. We were advised by the CPT that they intend to incorporate some comparative analysis into the 2024/25 exercise. Implication Recommendation Priority Management response Implementatio n Date Without structured comparative analysis of spend data across years, there is a risk that recurring non- contracted spend is not identified promptly, reducing the Council’s ability to enhance compliance with procurement regulations and achieve best value. The Chief Officer (Assets and Procurement) should: (1) As part of the annual non-contract spend analysis, undertake a comparison to previous years to identify trends and recurring high levels of spend with specific suppliers. The outcome of this exercise should be used to focus future procurement activity with a view to reducing non-contract spend. (2) Consider introducing a formal process to ensure that Services monitor non-contract spend on an ongoing basis to ensure that suppliers approaching regulated procurement levels are identified at an early stage and appropriate contract arrangements are put in place promptly. Medium Agree Brian Ferguson, Procurement and Support Manager (1) CPT will include year on year comparisons for suppliers as part of the Spend Analysis and Non- contract spend process. (2) CPT will engage with the CPWG about Service- based monitoring of non-contract spend to determine the source of data required to support this, who will be responsible and agree any resultant procedures. October 2026 March 2026 Page 36 of 124
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23 3. Action Plan Procurement – Non-Contract Spend 0600/2026/001 Ref Finding 4 There is scope to improve the governance arrangements around the CPWG and CPT meetings with Services. The Council has a devolved procurement model, with a Corporate Procurement Team (CPT) which is responsible for governance of procurement activity and ensuring that Services comply with the Council’s GCSOs. As part of this role, the CPT facilitates the CPWG, which provides a forum for oversight and discussion of procurement matters across the organisation. We noted that the terms of reference for the CPWG is out of date and that CPWG meetings are not formally minuted, therefore there is no record of the discussions held or decisions made. We were advised that CPT officers undertake ongoing engagement and follow-up meetings with Services to monitor and discuss procurement commitments, however, we noted that there was no documentation held to support these discussions. Additionally, we noted that there are currently no formal procedures or guidance in place in relation to the annual spend analysis process, which is a key mechanism for identifying and addressing non-contract spend, to ensure that the CPT and Services are aware of the process and expectations for this exercise. Implication Recommendation Priority Management response Implementation Date If there are no up to date terms of reference for the CPWG, there could be a lack of clarity and purpose for the group, undefined roles and responsibilities and poor decision making. If CPWG meetings are not minuted, there may be a lack of transparency and accountability for decisions made and agreed actions may not be followed up timely and appropriately. The absence of structured processes may impact the Council’s ability to demonstrate that non-contract spend is being effectively identified, monitored, and addressed in accordance with procurement regulations and the GCSOs. The Chief Officer (Asset and Procurement) should: (1) Ensure that the terms of reference document for the CPWG is updated to reflect the current purpose, scope, objectives and membership of the group. (2) Ensure that minutes are prepared for all CPWG meetings clearly recording the discussions held, decisions made, and any agreed actions, including responsible officers and timescales for completion. (3) Produce, and subsequently implement, guidance for the non-contract spend analysis process which outlines the requirements for both the CPT and Services to ensure that the process is fully actioned. Low Agree Brian Ferguson, Procurement and Support Manager (1) The Procurement and Support Manager will review and update the CPWG Terms of Reference. (2) The Procurement and Support Manager will ensure minutes are taken for CPWG meetings. (3) The Procurement and Support Manager will establish procedures for the Spend Analysis and Non-Contract Spend process. March 2026 December 2025 March 2026 Page 37 of 124
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/LM/ASP/Aug 2025 Date 28/08/25 Internal Audit: Follow-up of implementation of audit recommendations From Francis Scott, Chief Officer (Audit and Risk) E-mail ScottFr@northlan.gov.uk Telephone 07887 914207 Executive Summary The purpose of this report is to update the Panel on the progress made by management in the implementation of Internal and External Audit recommendations. In the period to 30 June 2025, of the 26 High and Medium priority recommendations that were due, 14 have been fully implemented, 11 remain outstanding and one has been deemed as no longer relevant. Of the 11 recommendations that remain outstanding, four have an implementation date which is more than 12 months overdue. Since April 2021, 96% of all relevant audit recommendations have been satisfactorily implemented by Services, meaning that only 4% of these audit recommendations remain outstanding. In respect of recommendations from External Audit reports, five of the 14 agreed actions have been completed, three are partially implemented and six are not yet due. Recommendations The Panel is invited to: (a) Note the contents of this report. (b) Consider whether there are any issues arising from this report on which they wish to receive further information from relevant management. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work All Programmes of Work Item 4 Page 39 of 124
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1. Background 1.1 This report presents an overview of the progress of all High and Medium priority Internal Audit recommendations in the period to 30 June 2025. 1.2 This report also provides an update on progress made in addressing recommendations arising from External Audit reports issued as part of the 2022-23 and 2023-24 audits. 1.3 The updates from management on progress to date have been verified on a sample basis by Internal Audit as part of the preparation of this report. However, it should be noted that this review has focused on whether planned actions have been completed and has not included detailed substantive testing of whether the implemented actions have been effective in addressing previously identified weaknesses. 2. Report Internal Audit recommendations 2.1 Table 1 below summarises the progress of all High and Medium priority recommendations which were due to be completed in the period to 30 June 2025. Overall, 14 of the agreed actions have been completed, one has been deemed as no longer relevant and 11 remain outstanding. Table 1 Completed No Longer Relevant Outstanding Total Chief Officer Area Community Operations 1 0 1 2 Education and Families 6 0 5 11 Finance and Technology 1 0 1 2 People Resources 0 1 3 4 Place 1 0 0 1 Planning, Performance and Quality Assurance 5 0 1 6 TOTAL 14 1 11 26 2.2 For the 11 outstanding recommendations, revised implementation dates have been agreed. Appendix 1 provides detail of these recommendations with an update on progress provided by service management. Appendix 1 also references instances where the original implementation date of a recommendation was more than 12 months overdue. In this period there are four such actions, referenced 1.1–1.4 in the appendix. Relevant Chief Officers have been invited to attend the Panel meeting to provide explanations. 2.3 The one recommendation assessed as no longer relevant relates to the following audit: • Payroll: Follow up of Overtime Duplicate Payments For this recommendation, the appropriate Chief Officer has advised that they accept the risk and have transferred the action onto the Service Risk Register, where it will thereafter be tracked and monitored. Internal Audit have confirmed that this is now included on the Services’ Risk Register. Details of this recommendation are referenced in Appendix 2. Page 40 of 124
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2.4 As at 30 June 2025, 96% of all relevant audit recommendations, where the original agreed implementation date was either due or had passed, have been fully implemented by Services, meaning that the percentage overall of all audit recommendations made since April 2021 which remain outstanding is 4%. This highlights an improvement since the last period when 94% were complete and 6% were outstanding. External Audit recommendations 2.5 Table 2 shows the status of actions agreed by management in response to External Audit reports issued as part of the 2022-23 and 2023-24 audits. As at 30 June 2025, five of these recommendations are complete, three are partially implemented and six are not yet due. Table 2 Completed Partially implemented Not yet due Total Report Title 2022-23 Annual Report 2021/22 1 2 0 3 Best Value Thematic Report 3 0 0 3 2023-24 Annual Report 1 1 3 5 Best Value Thematic Report 0 0 3 3 TOTAL 5 3 6 14 2.6 A six-monthly tracking report of progress in implementing these recommendations will be presented to the November meeting of the Panel. 3. Measures of success 3.1 Internal Audit reports each cycle to the Audit and Scrutiny Panel on the progress made by management in implementing actions in response to Internal and External Audit reports. 4. Supporting documentation Appendix 1 Register of Outstanding Internal Audit Recommendations Appendix 2 Internal Audit Recommendations Transferred to Risk Register Francis Scott, Chief Officer (Audit and Risk) Page 41 of 124
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact because of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Failure by Services to address previously identified issues and/or weaknesses will impact on the effectiveness of the relevant control framework. This, depending on the nature of the issue, will be captured and should be reflected in the relevant service risk register or the corporate risk register (as appropriate). 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ Page 42 of 124
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APPENDIX 1 – Register of Outstanding Internal Audit Recommendations 30.06.25 Ref. Report Details Recommendation Original & revised timescales Management update 1.1 Chief Officer (Community Operations) Chief Officer (People Resources) Follow-up of Investigation of Staffing Issues within Waste and Fleet Resources (July 2023) (1) ensure that HR Business Partners, prior to authorising and passing higher duties claims for payment, properly scrutinise and understand the appropriateness of such claims, confirm that claims have been agreed and authorised by the Chief Officer or senior management and ensure that documentation accurately reflects the reason for such payments. (2) review, and take appropriate action, to resolve the issues and errors in contractual and non-contractual payments identified by Internal Audit and outlined in the document which has been provided under separate cover. (3) identify other employees who may be affected by the issues identified in the finding above, with a view to review and taking appropriate action to resolve any subsequent issues/errors identified; and (4) ensure that where overpayments arise from these reviews, prompt action is taken to ensure that appropriate repayment schedules, with reasonable terms, are promptly agreed with relevant employees and that recovery commences as soon as possible. Priority: High September 2023 December 2023 June 2024 September 2024 November 2024 February 2025 May 2025 September 2025 (>12 months overdue) Requests for higher duties claims are authorised by the Business Manager, Chief Officer and HR Business Partner to ensure all such claims have been properly scrutinised and appropriately authorised. A review of the contractual and non-contractual payments has been completed, and appropriate action is being and/or will be taken to resolve the issues and errors in these payments as identified both by Internal Audit and during the aforementioned review. Work has been concluded in this area to ensure that anyone who has not been paid correctly has now been paid correctly. Any underpayments identified will be calculated and paid to the affected employees. A report was submitted to the BMT in May 2025 seeking approval to stop recovery of the overpayments identified. A decision was made at this meeting that this approval should be sought and obtained from the Finance and Resources Committee. As such, a report is being prepared and will be taking to the next meeting of the Finance and Resources Committee in September 2025. Page 43 of 124
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Ref. Report Details Recommendation Original & revised timescales Management update 1.2 Chief Officer (People Resources) Payments to Staff (Regularity): Additional Non- Standard Payments (October 2023) The Chief Officer (People Resources) should undertake a review of current element codes to: (1) determine the need for each code based on the Council’s terms and conditions, removing any which are unnecessary and provide a clear explanation of each code remaining to ensure that staff and managers understand the purpose of each code; and (2) restrict the codes available to individual employees so that they are only able to select codes which are relevant to their post. Priority: Medium January 2024 December 2024 April 2025 May 2025 October 2025 (>12 months overdue) (a) A review of all element codes has been undertaken to determine the need for each code and resulted in the following action being taken: - Element codes that have never been used and thus contain no historical data have now been fully deleted - Element codes that have been used previously, but not in the last 3 years have had an 'end date' put against them. These will now be hidden from view of users. They cannot be fully deleted as they contain historical data. - Element codes currently in use have been reviewed and work is currently underway to make element descriptors clearer which will hopefully alleviate confusion over which element code should be selected by the employee and/or Reporting Manager. (b) The Service consider this part of the recommendation to be fully implemented. As per the management response, the Service undertook work to investigate the feasibility of restricting codes to individual employees. The outcome of this was that there would need to be individual claim forms for each Service and/or specific roles within Services. It was thus deemed not to be feasible, but the Service considered that the introduction of the Paid Time module on Itrent would allow business rules to be built around what element codes certain roles or cohorts of staff would have access to. As previously reported via updates for other payroll recommendations, proposal for the Paid Time Module has not yet been agreed and until then cannot be developed and implemented. Page 44 of 124
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Ref. Report Details Recommendation Original & revised timescales Management update 1.3 Chief Officer (Education and Families) School Excursions (October 2023) The Chief Officers of Education and Families (North and South) should ensure that: (1) A comprehensive formal review of both the Council’s Educational Excursions and Outdoor Activities Policy and the Risk Assessment Guidance on Educational Excursions and Outdoor Activities is undertaken to revisit and refresh all aspects of these documents with a view to improving the robustness of the Council’s arrangements associated with school trips and excursions. This should take account of, but not limited to, the information contained in Appendix 2 and the need for roles and responsibilities of all relevant parties, including those within other Council services to be clearly documented in the revised guidance. (2) Any revised arrangements are fully communicated to all Council Services with a role in the process. (3) They explore how best to gather/record details of all school trips and excursions and thereafter monitor compliance with the Council’s expected arrangements associated with such trips and excursions. Category: High April 2024 March 2025 September 2025 (>12 months overdue) The Service has critically reviewed the key areas of work in conjunction with available staff resources. At this time the following operational activity was prioritised by the Service through to June 2025: (a) Preparation of a new DSM scheme (b) Preparation of an ASN business case (c) Development of resilience, business continuity and risk management plans (d) Transfer of school transport activity to Community Operations In light of the above, the review of the School Excursions Policy has now begun, Head Teachers have been briefed on the requirement to undertake a review of the policy, and a short life working group has been created. Engagement with the Head Teachers on the draft revised Policy will commence in August 2025. In the interim, best practice advice has, and will, continue to be given to schools based on the existing policy. Page 45 of 124
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Ref. Report Details Recommendation Original & revised timescales Management update 1.4 Chief Officer (Education and Families) School Excursions (October 2023) The Chief Officers of Education and Families (North and South) should: (1) as part of the formal review referenced at Action Plan point 1 above, ensure that this includes the creation of a dedicated section within the policy and/or associated procedures which outlines clear expectations around the financial aspects associated with the organisation and execution of trips. This should include, but not be limited to: (a) A clear and detailed protocol for booking trips where a travel company/tour operator is not going to be used ensuring arrangements minimise the risks associated with such payments and ensure that the use of personal credit cards to book trips is prohibited. (b) Consideration to promoting iPay Impact as the primary means for collecting monies in schools thus reducing cash payments and the subsequent flow of physical cash in the school. (c) Determining the additional checks/monitoring that need to be carried out at establishment level to ensure all monies due are received and duly banked in line with Council policy. (d) clear guidance on the levels of physical cash that can/should be taken on a trip/excursion, the required records to be completed and documentary evidence required/expected to support any such spend. Category: High April 2024 March 2025 September 2025 (>12 months overdue) The Service has critically reviewed the key areas of work in conjunction with available staff resources. At this time the following operational activity was prioritised by the Service through to June 2025: (a) Preparation of a new DSM scheme (b) Preparation of an ASN business case (c) Development of resilience, business continuity and risk management plans (d) Transfer of school transport activity to Community Operations In light of the above, the review of the School Excursions Policy has now begun, Head Teachers have been briefed on the requirement to undertake a review of the policy, and a short life working group has been created. Engagement with the Head Teachers on the draft revised Policy will commence in August 2025. In the interim, best practice advice has, and will, continue to be given to schools based on the existing policy. 1.5 Chief Officer (Education and Families) School H – School Funds (December 2024) Education and Families should ensure that, as a matter of urgency, liaise with the Bank of Scotland to establish the current balance and a list of any transactions from February 2020 to date for both the Primary School and Nursery accounts. Once established, arrangements should be made for any balance remaining to be transferred to the current bank account for the school and nursery and these ‘old’ accounts closed. Priority: High December 2024 May 2025 September 2025 Work is ongoing to identify a process which will allow the school to access funds held as the authorised signatories held by the Bank of Scotland are no longer in post in the school. Contact has been made with the previous Head Teacher who has agreed to arrange an appointment with the bank with a view to determining what action requires to be taken to access the funds and close the accounts. Page 46 of 124
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Ref. Report Details Recommendation Original & revised timescales Management update 1.6 Chief Officer (People Resources) Payroll: Follow-up of Overtime Duplicate Payments (August 2024) The Chief Officer (People Resources) should ensure that: (1) A formal plan, detailing the action required to be taken to agree and recover the previously identified overpayments and the associated timescales and responsible officers, is prepared and progress thereafter monitored; and (2) Appropriate and timely action is thereafter taken to recover the overpayments referenced at recommendation (1) above, with regular updates on the status of the recovery of these overpayments provided to Senior Management. Priority: Medium December 2024 March 2025 May 2025 September 2025 When work commenced in this area in January, calculations undertaken uncovered some discrepancies which required to be investigated and considered. The payroll team have reported that the work is extremely time consuming and cannot be accommodated during the normal working day due to the complex nature of these overpayments. A report was submitted to the BMT in May 2025 seeking approval to stop recovery of the overpayments identified. A decision was made at this meeting that this approval should be sought and obtained from the Finance and Resources Committee. As such, a report is being prepared and will be taking to the next meeting of the Finance and Resources Committee in September 2025. 1.7 Chief Officer (People Resources) Payroll: Follow-up of Overtime Duplicate Payments (August 2024) The Chief Officer (People Resources) should ensure that a review is undertaken, after a sufficient period to allow arrangements to become embedded, to determine the adequacy and effectiveness of the processes in place to monitor and address those cases where employees repeatedly submit duplicate claims, with amendments made as necessary. Priority: High March 2025 December 2025 There is now a Duplicate Claims Protocol in place which clearly outlines the process that will be followed for both employees who submit duplicate claims and managers who authorise them. Once this protocol has had time to embed, it will be reviewed and assessed to determine the adequacy and effectiveness of the processes put in place. 1.8 Chief Officer (Planning, Performance and Quality Assurance) Social Work – Quality Assurance Arrangements (October 2024) The Chief Officer (Planning, Performance and Quality Assurance) should review the current Contract Monitoring Framework. And associated documentation, and make the necessary amendments to ensure that these arrangements: (1) fully reflect best practice; management expectations and current working practices (removing reference to elements no longer undertaken), based on the detail which was outlined in the finding; and (2) include the provision of more robust guidance in respect of the roles and responsibilities of staff at each stage of the increased monitoring process. Priority: Medium April 2025 September 2025 The Contract Management Framework has been reviewed and enhanced and, whilst this was progressing, this action was paused. It is now intended that the guidance, and associated documentation. will reflect the new practice albeit it should be recognised that the Contract Management Framework is a live document which will require to be updated continuously in accordance with external and internal challenges. Thereafter, the revised guidance will be circulated to all relevant parties. Page 47 of 124
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Ref. Report Details Recommendation Original & revised timescales Management update 1.9 Chief Officer (Education and Families) Devolved School Management (May 2025) The Chief Officer (Education - South) should: (1) ensure that all relevant officers within Education and Families and/or key stakeholders who utilise or influence the DSM scheme are identified and that appropriate training on all relevant aspects of the DSM scheme, tailored to their respective roles, is developed and subsequently rolled out. Refresher training should be delivered on a periodic basis to ensure stakeholders remain appropriately informed; and (2) consider whether attendance at DSM training should be mandatory for all new and existing Heads of Establishment. If considered mandatory, arrangements for monitoring attendance and taking appropriate remedial action should be established. Priority: Medium May 2025 October 2025 (1) Staffing groups who utilise or influence the DSM scheme have been identified and the arrangements for training have been outlined as part of the overall DSM training programme which is documented in the revised DSM Scheme. The DSM training will include many of the existing modules, manuals and guidance documents. Any gaps in training materials will be identified and further options developed. Thereafter, the full list of DSM materials will be incorporated into a DSM training directory and the programme forwarded to all relevant staff in August 2025 thus enabling training to be rolled out. (2) Consideration was given as to whether attendance at DSM training should be mandatory for all new and existing Heads of Establishment and the decision made to only make it mandatory for new Heads of Establishment. This is reflected in the revised DSM Scheme approved at the Education, Children and Families Committee in May 2025 and training will be rolled out to the new cohort of Heads of Establishment as part of the scheduled induction training at the start of each academic year. A register will be taken to monitor attendance at such training, and remedial action will be taken as necessary. 1.10 Chief Officer (Education and Families) Devolved School Management (May 2025) The Chief Officer (Education - South) should identify all staff within the Service who are involved in making procurement decisions and ensure that these staff are provided with appropriate procurement training relevant to their respective roles. Priority: High June 2025 October 2025 Core individuals who are involved in procurement activity/decisions have been identified and the arrangements for procurement training have been outlined as part of the overall DSM training programme which is documented in the revised DSM Scheme. The DSM training will include many of the existing modules, manuals and guidance documents. Any gaps in training materials will be identified and further options developed. Thereafter, the full list of DSM materials will be incorporated into a DSM training directory and the programme forwarded to all relevant staff in August 2025, thus enabling training to be rolled out. For session 2025/26, priority will be given to new Head Teachers, Depute Head Teachers, AFAs, Education and Families Managers and aspiring Head Teachers before thereafter being delivered to other cohorts of staff who have purchasing/procurement responsibilities. Page 48 of 124
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Ref. Report Details Recommendation Original & revised timescales Management update 1.11 Chief Officer (Finance and Technology) Use of Purchase Cards (January 2025) The Chief Officer (Finance) should ensure that the Policy expectation for Treasury to undertake the system administrator role is implemented with all key responsibilities of that role being fully undertaken, including an annual review of all active cards. Priority: Medium June 2025 October 2025 Work has been undertaken with the Royal Bank of Scotland (card provider) to update the online card management process and enable credit and purchase cards to be managed within the same portal, with training being provided by the Royal Bank of Scotland. The portal works well with an appropriate level of reporting for service(s) and reconciliation/ledgering of expenditure. An initial draft review of the Policy review has been undertaken, pending changes to be incorporated as a result of review findings and a roll out of the Purchase to Pay (P2P) model. The proposed extension to the implementation date, will enable the P2P model to be fully embedded and for full consideration to thereafter be given to requirements, including administrator responsibilities prior to establishing and/or making changes to the Policy on use of purchase cards moving forward. Page 49 of 124
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APPENDIX 2 – Internal Audit Recommendations Transferred to Risk Register The following recommendations has been closed without being fully implemented. The Chief Officer responsible has confirmed that they will accept the risk, which will be tracked and monitored through the appropriate service risk register. Ref. Report Details Recommendation Original & revised timescales Chief Officer Justification 2.1 Chief Officer (People Resources) Payroll: Follow-up of Overtime Duplicate Payments (August 2024) The Chief Officer (People Resources) should ensure that: (1) the system enhancements identified by the Workforce Systems and Analytics Team as offering a more permanent solution to system controls to prevent duplicate overtime claims being submitted, authorised and paid, are fully explored and, if deemed viable, a Business Case is prepared and presented to CMT for approval. (2) if action at 1 above is not progressed, as a matter of priority, a comprehensive review of the interim arrangements is undertaken, to consider the adequacy, efficiency and effectiveness of this approach as a permanent solution. This review should also encompass consideration of any other more effective preventative and/or detective controls to ensure duplicate claims cannot be submitted, authorised and paid, and (3) an action plan is prepared which clearly details the actions required with regards to recommendations (1) and, if applicable, (2) above and the associated timescales and responsible officers which is thereafter tracked and monitored. Priority: High July 2025 While interim measures are in place and the number of duplicate claims has reduced significantly, longer term there needs to be a sustainable system led solution. At the meeting of the BMT on 17 October 2024, the Chief Officer (People Resources) reported that detailed work had been undertaken with MHR, the Council’s iTrent provider, to scope the necessary system development work which will ensure that no further duplicate claims can be processed by the system and requested the funding to support the implementation. It was determined by the BMT at that time that before funding could be approved, the matter should be referred to the EAGG to allow for the exploration of all inhouse technical solutions. The People Resources Service have worked extensively with Finance and Technology to explore and develop solutions, however to date, no viable inhouse solution has been forthcoming that would directly improve the control environment in a way which would block the approval of duplicate claims. Following recent discussions directly with MHR at a senior level, they have agreed to give People Resources free access to a development version of the Paid Time module until the end of the year, so that we can fully assess whether it will meet the requirements we need in terms of improving the control environment. Following this, People Resources will bring a report on our findings and BMT may be asked to reconsider the availability of funding as outlined above to allow for the purchase and implementation of the Paid Time module. Additionally, a further Duplicate Claims Protocol has been developed that clearly details the responsibilities of both managers and employees whilst ensuring that everyone is clear on the consequences of repeatedly or wrongly authorising duplicate or false claims. Until an appropriate technical solution is established, the effective control of duplicate claims will be maintained with the current manual controls and checks in place, and the Employee Service Centre Manager will continue to monitor the number of occurrences. As the original audit recommendation cannot be fully resolved without the development of a final IT solution, it was agreed with Audit & Risk, that this issue will be placed on the service risk register. Page 50 of 124
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/ASP/RMAug25 Date 28/08/25 Risk Management Update From Francis Scott, Chief Officer (Audit and Risk) E-mail ScottFr@northlan.gov.uk Telephone 07887 914207 Executive Summary This report seeks to support the Audit and Scrutiny Panel in the discharge of the aspect of its remit of monitoring the effective development and operation of risk management in the Council. The report provides an overview of the recent annual review of the Corporate Risk Register (CRR) and developments on Corporate Risks since the May update. The report also includes a high-level overview of Service Risk Registers (SRRs), comparing the current residual risk profile with the profile reported to the February Panel. The report concludes with a summary of the key considerations of the Risk Management Corporate Working Group (RMCWG) within the reporting period. Recommendations The Panel is asked to consider the contents of the report and note: (a) the CRR review process and outcome described in sections 2.1 – 2.4. (b) the CRR for 2025-26 as detailed in Appendix 1. (c) the key developments in corporate risk as described in sections 2.5 – 2.11. (d) the overview of service high scoring service level risks at 2.12 and Appendix 2. (e) the summary of the key discussion points of the RMCWG as noted at section 2.13. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 5 Page 51 of 124
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1. Background 1.1 The Audit and Scrutiny Panel terms of reference include the remit to monitor the effective development and operation of risk management in the Council. This report supports the Panel in discharging that aspect of its remit by providing an overview of how certain requirements of the Risk Management Strategy have been delivered during the reporting period. 2. Report Corporate Risk Register Review 2025-26 2.1 The Risk Management Strategy makes provision for an annual review of the CRR. A range of information sources have been considered when undertaking the review process. Predominantly, the Horizon Scanning material referenced in the May update to the Panel has been considered to identify any potential exposures that could impact on the Council’s ability to deliver objectives and could be helpful to manage by reference to the CRR. Other sources used to inform the review include: • Analysis of / informal comparison with the high-level risk registers of other local authorities. • Consideration of Service Level Risk Registers to identify common themes that may present a corporate risk but are not currently referenced within the CRR. 2.2 Our analysis of these sources of information has not resulted in the addition of any new risks at the time of writing this report. The key risk themes from our Horizon Scanning are referenced within our risk register framework (as part of a risk). We also found that the entries on our CRR are broadly consistent with other similar organisations. 2.3 Having said that, following recent structural changes and Chief Officer responsibilities the ongoing review of some CRR entries may result in refinement to how some corporate risks are captured and treated. This could include for example, a change to the scoring or context of existing risks, a more direct reference to the themes in the Horizon Scanning material and/or an alternative method of treating long standing Corporate Risks. 2.4 The CRR for 2025-26 is included at Appendix 1. The agreed risk register for 2024-25 was presented to the Panel in August 2024 contained 27 risks. Any new additions or deletions to the register since that report have been included in the updates reported to the Panel throughout the year. Similarly, a summary of the rationale for any changes to residual scoring of risks on the CRR has been routinely reported to the Panel. As a result of changes reported previously and those included later in this report, the CRR for 2025-26 contains 23 risks. Key developments relating to Corporate Risks since the last update 2.5 Risks on the CRR are subject to ongoing monitoring and review, with higher scoring risks being subject to more frequent review. Management considers factors such as changes in the operating environment, the effectiveness of existing controls, the development of additional controls and progress of agreed actions to determine Page 52 of 124
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whether it would be appropriate to adjust the risk assessment in line with the Risk Management Strategy. 2.6 Home Support Service Delivery / Sustainability 2.6.1 This risk captures the uncertainty for the Council in delivering adequate levels of Home Support service. The scoring of this risk has reduced from 25 (Very High) to 20 (High) during the reporting period. The reduction is a result of a reduction in likelihood which management consider appropriate due to progress made in implementing controls around recruitment and transport, and improvements in Care Inspectorate Grades. Despite the reduction in likelihood the risk rating remains high reflecting the ongoing uncertainty created by upgrades to systems and telephony and the implementation of a new operating model. 2.7 Procurement 2.7.1 At the last review of this risk, pertaining to compliance with our procurement rules, management recorded a reduction on the likelihood rating from 4 to 3. The rationale for this change was the completion of actions pertaining to improved awareness of contract management guidance and training and the availability of information (for example the contract register) to internal stakeholders. Management are of the view that the implementation of the related controls justifies a reduction in the likelihood of the risk occurring. 2.8 Enterprise Contract (Mobilisation) / Enterprise Contract Management 2.8.1 Following risk review management are comfortable that the mobilisation phase of the Enterprise Contract has concluded as the focus shifts to ongoing contract management. During the reporting period review of the mobilisation risk had resulted in reductions in both the residual likelihood and impact which had taken the overall risk score to 8 (Low). Key to these changes were the progress made in implementing the remaining identified controls including recruitment to roles within the Contract Performance and Assurance Team and completion of the project reporting requirements and the risk was subsequently closed. A new CRR entry, Enterprise Contract Management, is being developed with a focus on contract management and contract governance. 2.9 RAAC 2.9.1 This risk relates to the Council’s ability to manage the consequences of the RAAC issue across the property estate (corporate and housing). There was an overall reduction in the score of this risk at the latest review following a reduction in residual impact rating. Management review recorded a lowering of impact rating from 5 to 4 because of increased clarity on potential financial impacts following the approval of the grant scheme for former Council owned properties. 2.10 Digital Adoption 2.10.1 The uncertainty around the Council being able to create the appropriate conditions for successful Digital Adoption for employees and service users is captured in this risk. At the last review a major control improvement was noted in the approval of the detailed plan of activity - Digital Culture Leadership and Knowledge action plan. This plan contains the multiple discrete activities for training and development relating to Digital Adoption until March 2026 and implementation is underway. Activities will be subject to monitoring and reporting and where necessary corrective actions will be Page 53 of 124
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included. This in addition to other implemented controls reduced the likelihood rating from 5 to 4 and the overall risk score from 20 to 16. 2.11 Home to School Transport Delivery / Sustainability 2.11.1 Service provider failure and limited market capacity resulted in the addition of this risk to the CRR. Since then, there have been improvements in the business continuity arrangements for this aspect of service. These arrangements had recently been exercised as part of routine business continuity management activity. Consequently, it has been agreed by senior colleagues in Education and Families and Enterprise and Communities to defer the risk to service level for ongoing monitoring. The risk will be managed within Enterprise and Communities following the transfer of the function to that Service. Service risk registers – risks with highest residual scores 2.12 In line with the requirements of the Council’s Risk Management Strategy, SRRs are maintained and reviewed through the support of the Service Risk Champion and Risk Facilitator network. A summary of the changes in residual risk profile across our SRRs during the period is shown in the table below. Further detail on the high scoring risk is available in Appendix 2. Other Risk Management Developments 2.13 The RMCWG co-ordinates activities and resources in order to implement the Risk Management Strategy and promote good risk management practice throughout the Insignificant Low Medium High Very High Total Jan 2025 Jul 2025 Jan 2025 Jul 2025 Jan 2025 Jul 2025 Jan 2025 Jul 2025 Jan 2025 Jul 2025 Jan 2025 Jul 2025 Chief Executive Services 39 40 55 57 37 35 6 5 0 0 137 137 Education & Families 6 8 18 14 21 22 1 1 0 0 46 45 Adult Health & Social Care 1 0 7 7 12 11 0 0 0 0 20 18 Enterprise & Communities 30 30 132 130 86 84 13 9 0 0 261 253 Page 54 of 124
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Council. There were two sessions of the RMCWG since the last report to Panel, with the key discussion points noted below: Horizon Scanning 2G Network Switch Off / Lithium Batteries • Material made available to inform risk identification and awareness on Risk Management subsite Training • Positive mandatory internal training completion rates noted Corporate Risk Officer Retirement • Our Corporate Risk Officer, Robert Mitchell, retired at the end of June. The recruitment exercise for a replacement is underway. 3. Measures of success 3.1 The Corporate Risk Team will continue to report quarterly to CMT and the Audit and Scrutiny Panel, providing an overview of key developments in risk management and updating on progress in respect of planned improvements to the Council’s risk management arrangements. 3.2 The adequacy and effectiveness of the Council’s risk management arrangements will be subject to independent review by Internal Audit, who will report directly on the results of that work to the Audit and Scrutiny Panel. 3.3 Effective risk management arrangements assist the Council in achieving planned outcomes and/or help the Council mitigate the impacts of adverse events. 4. Supporting documentation Appendix 1: Corporate Risk Register 2025 - 2026 Appendix 2: Highest Scoring Service Risk Register Entries Francis Scott, Chief Officer (Audit and Risk) Page 55 of 124
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact because of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If yes, please provide a summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Effective risk management arrangements will enable the Council to manage its risks more effectively, increasing the likelihood of the Council achieving its plans and ambitions by minimising or mitigating potential threats to planned outcomes. A robust risk management strategy lays out the framework and underpins all risk management activity across the organisation. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex-Service personnel, or their families, or widow(er)s)? Yes ☒ No ☒ 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ Page 56 of 124
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Appendix 1 Corporate Risk Register 2025-26 CORPORATE RISKS (Operational) Likelihood Impact Rating Evaluation Change 1. Home support service delivery/ sustainability 4 5 20 High Was 25 2. Information security and governance 5 4 20 High No 3. ICT operational capability 5 4 20 High No 4. Human resources (workforce planning) 4 4 16 High No 5. Public protection 4 4 16 High No 6. Governance, leadership and decision- making 4 4 16 High No 7. Health and Safety 5 3 15 Medium No 8. Business continuity planning 5 3 15 Medium No 9. Terrorism 3 5 15 Medium No 10. Procurement risk 3 4 12 Medium Was 16 11. RAAC 3 4 12 Medium Was 15 12. Resilience planning 2 5 10 Medium No 13. Enterprise Contract Management 2 5 10 Medium New 14. Serious organised crime, fraud and corruption 3 3 9 Medium No CORPORATE RISKS (Strategic) Likelihood Impact Rating Evaluation Change 15. Tackling poverty 5 4 20 High No 16. Power resilience (Black Start) 4 5 20 High No 17. Climate change 5 4 20 High No 18. Digital adoption 4 4 16 High Was 20 19. Improving educational outcomes 4 4 16 High No 20. Financial sustainability 3 5 15 Medium No 21. Digital and IT strategy 4 3 12 Medium No 22. Engagement and consultation 3 3 9 Medium No 23. Delivery of approved programme of work 2 4 8 Low No DEFERRED / CLOSED RISKS Likelihood Impact Rating Evaluation Change Home to school transport delivery/ sustainability 3 4 12 Medium Deferred to Service Level Enterprise Contract (Mobilisation) 2 4 8 Low Was 20 Closed replaced by “Enterprise Contract Management ” Page 57 of 124
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Appendix 2 Highest Scoring Service Risk Register Entries Risk Number Title Residual Risk Score Service RIA0000372 Inadequate staffing levels or expertise to provide advice and support to the council, its ALEOs and elected members. 20 Chief Executive's RIA0000212 Child Abuse Legislation 20 Chief Executive's RIA0000039 Organisational capacity and retention of staff 16 Chief Executive's RIA0000020 Failure to implement business change / service redesign thus impacting on stated benefits realisation 16 Chief Executive's RIS0000532 PCI Compliance (HUB) 16 Chief Executive's RIS0000671 Advocacy and Representation for Residents 16 Education & Families RIS0000754 Revocation of Section 19 Permit re School Transport 20 Enterprise and Communities RIA0000223 Service failure due to loss in IT capability 20 Enterprise and Communities RIA0000012 HSMS Maintenance & Development 16 Enterprise and Communities RIS0000315 Management of Service Users Recorded under MAPPA within the Community (Outed Cases) 16 Enterprise and Communities RIS0000617 General Workforce - Place 16 Enterprise and Communities RIS0000709 Impact of staffing issues on service provision 16 Enterprise and Communities RIA0000109 Failure of key unsupported business systems 16 Enterprise and Communities RIS0000395 Inability to provide a service due to staffing/ training/ absence etc. 16 Enterprise and Communities RIS0000744 Decommissioning of B: Drive and subsequent loss of reliant databases and data 16 Enterprise and Communities Page 58 of 124
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☐ Yes ☒ No Ref FS/NFI Date 07/08/25 National Fraud Initiative – Update From Chief Officer (Audit and Risk) E-mail scottfr@northlan.gov.uk Telephone 07887 914207 Executive Summary The purpose of this report is to inform the Panel of the progress made to date by the Council in response to the 2024 National Fraud Initiative (NFI) data matching exercise and to highlight where further action is required by the Council and/or relevant Services. The NFI in Scotland is a counter-fraud data matching exercise led by Audit Scotland and overseen by the Public Sector Fraud Authority for the UK as a whole. The exercise is undertaken every two years and is recognised as an important tool in preventing and detecting fraud. It involves comparing data sets from a range of public bodies to identify inconsistencies and anomalies which may be indicative of possible fraud or error. This information enables public bodies to follow-up matches on a targeted and prioritised basis to establish if fraud has occurred and to take appropriate action. Recommendation It is recommended that the Panel note the contents of this report, progress made to date and future planned action in relation to the follow-up of matches. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work All Programmes of Work Item 6 Page 59 of 124
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1. Background 1.1 The NFI is a UK-wide exercise which assists public bodies in detecting possible fraud and error. It is led by Audit Scotland under statutory powers added to the Finance and Accountability (Scotland) Act 2000 by section 97 of the Criminal Justice and Licensing (Scotland) Act 2010. 1.2 The NFI uses data matching to compare a range of information held by public bodies to identify potential inconsistencies or circumstances that could indicate fraud or error. This information enables public bodies to follow-up these matches on a targeted and prioritised basis to establish if fraud has occurred and to take appropriate action. A match does not automatically mean that there is fraud or error, and therefore the Council is not expected to review or follow up every match. The outcomes from any investigations are recorded on the secure NFI web application. 1.3 Data in relation to payroll, housing (current tenants and waiting lists), Council Tax reduction scheme, blue badge parking permits, taxi licenses, business rates, creditor payments and other relevant creditor standing data was uploaded by the Council to the secure NFI database in October 2024. The results of the data matching for these datasets were received between December 2024 and June 2025, with a total of 17,322 matches identified. 1.4 Additionally, Council Tax single person discount and electoral register data was uploaded separately to the NFI database in December 2024. The matches were made available shortly after submission and the Council received 21,351 matches. 2. Report NFI progress to date 2.1 Audit Scotland has indicated that they do not expect every match or report to be reviewed and has advised bodies to prioritise matches. As such, they have categorised the individual reports based on the assessed quality of match (high, medium, address or information only), with ‘high’ reports often being matched on National Insurance Number. Additionally, all matches contained in reports have been allocated a ‘risk scoring’ based on a combination of the likelihood of fraud occurring and the number of times an individual appears across the NFI data. 2.2 Given the high volume of matches received, there are limitations to the number of matches that can be reviewed within the resources available. Services are responsible for determining a method of prioritising their matches for investigation, ensuring timely action and update of the NFI database. This is generally done by considering the risk scoring allocated on the NFI database. Page 60 of 124
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2.3 As of 31 July 2025, 54% of all matches have been reviewed, resulting in 619 errors with £15,620 savings identified. A summary of the results by report type is detailed in the table below. Report Type Matches Processed In progress Fraud Error Value (£) Housing Benefit 184 42 1 0 0 0 Council Tax Reduction 1,271 280 5 0 22 £15,620 Payroll 119 100 18 0 0 0 Blue Badges 1,125 1,125 0 1 597 0 Creditors 6,948 6,653 19 0 0 0 Procurement 54 52 2 0 0 0 Housing Tenants 1,280 666 61 0 0 0 Housing Waiting List 1,913 284 25 0 0 0 Business Rates 62 52 10 0 0 0 HMRC 4,366 0 0 0 0 0 Total 17,322 9,254 141 1 619 £15,620 2.4 Matches relating to housing benefit and Council Tax reduction are being dealt with the Appeals and Adjudications team within Finance and Technology. The team has prioritised high risk reports, and review of these reports is almost complete. Outcomes for these reports have fallen since the previous NFI exercise due to the increase in Universal Credit claimants over which the Council has no control. 2.5 Internal Audit assessed payroll matches where North Lanarkshire Council employees are also employed by other public sector organisations. Review of these matches was prioritised and initially focused on employees earning more than £10,000 per annum with both employers, then considered the remaining matches. Internal Audit are awaiting feedback from other employers in relation to queries on seven matches. No issues have been identified to date, although examples have previously been identified at other public sector organisations which highlight the existence of “ghost” employees, and individuals holding multiple employments while on sick leave with another employer. 2.6 Internal Audit also assessed matches where Council employees were also receiving creditor payments for goods/services provided. Review of these matches is complete, however, we have identified a small number of matches requiring further consideration. 2.7 The review of matches relating to active blue badges to deceased persons is complete and has resulted in 598 badges being cancelled. Page 61 of 124
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2.8 Creditors matches, relating to potential duplicate payments and creditors references accounts for 40% of the total matches received and the majority of these (91%) fall into two reports matched on invoice number, invoice amount and/or creditor reference. Internal Audit has undertaken an initial review of these matches and has identified that they contain many false positives as some suppliers (i.e. utilities) have regular monthly charges using the same account reference as the invoice number. As such, review of these matches has been prioritised to focus on those where the potential for duplicate payments is greatest, and the invoice value is most significant. Review of these matches is almost complete with a small number of potential duplicate payments identified, and these are in the process of being investigated further by Internal Audit. 2.9 Matches relating to procurement involve a comparison of North Lanarkshire Council employees to Companies House information and creditor payments to identify any potential undeclared conflicts of interest. Internal Audit has reviewed these matches and identified two matches which are currently being investigated further. 2.10 Review of housing tenant and waiting list matches is progressing with 32% of the matches having been reviewed. Housing plan to review the remaining matches by December 2025. 2.11 Business rates matches were received in April 2025. Review of these matches is complete, with ten matches identified for further investigation. 2.12 The NFI has a mandatory requirement to submit Council Tax single persons discount (SPD) records for matching against electoral data. For the 2022 NFI exercise, the SPD review was outsourced to an external third party, who additionally matched council tax SPD records to credit reference data. The outcomes from this engagement demonstrated far greater results than would have been generated had only the NFI matches been investigated. The SPD review for the 2024 NFI exercise has again been outsourced and is now underway. On completion, the NFI report will be cross matched to the outcomes achieved and will be reported to a future meeting of the Panel. 2.13 The SPD matches include 1,152 matches to deceased persons, which due to their nature are being reviewed internally. Of these matches, 1,090 have been assessed as requiring no further action, while the remaining 62 matches are currently being investigated. 3. Measures of success 3.1 Successful participation in NFI 2024 will result in error, fraud and potential savings identified and positive assessment by the Council’s external auditor of the Council’s approach. Francis Scott Chief Officer (Audit and Risk) Page 62 of 124
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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? Future data matching arrangements will be reviewed to ensure the Council remains legally compliant with recent legislative changes. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☒ No ☐ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ Page 63 of 124
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If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Failure to participate in the NFI could result in non-compliance with legislation, criticism from external audit and create additional potential for fraudulent activity not being identified at an early stage. 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 64 of 124
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North Lanarkshire Council Report Audit and Scrutiny Panel Does this report require to be approved? ☒ Yes ☐ No Ref RB/SL Date 28/08/25 Self-Evaluation of the Audit and Scrutiny Panel - outcome report From Rachel Blair, Chief Officer (Legal and Democratic) E-mail BlairR@northlan.gov.uk Telephone Executive Summary Through the discrete functions of both Audit and Scrutiny, the Audit and Scrutiny Panel plays an important role in relation to the council’s governance arrangements. As set out in the terms of reference in the Scheme of Administration, the purpose of the 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”. The council’s governance arrangements are reviewed on an annual basis through the Strategic Governance Framework (as part of the programme of scrutiny work) and throughout the year as part of the internal audit programme of audit work. These processes support the council in demonstrating compliance with, and commitment to, the good governance principles as set out in the national Delivering Good Governance in Local Government: Framework (2016). An Internal Audit review in 2021 considered there was a risk that “the council may not be able to adequately demonstrate that it has effective audit committee arrangements and/or arrangements to ensure Elected Members have the skills, knowledge and, where appropriate or required, access to relevant training and resources to effectively undertake their role”. To this end, Internal Audit 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. A self-evaluation of the Audit and Scrutiny Panel was subsequently undertaken in 2023 with implementation of the resultant improvement plan approved by the Panel in November 2023. At this time the next steps, also approved by the Panel, included a follow up self- evaluation exercise to be undertaken. As such, a follow-up self-evaluation was carried out in July 2025, and the findings are presented in this outcome report for due consideration by Audit and Scrutiny Panel members. The Panel is also asked to identify any further developments required in this respect to inform the improvement plan and next steps to ensure the Panel continues to demonstrate that it is effective in discharging its role. Recommendations It is recommended that the Audit and Scrutiny Panel: Item 7 Page 65 of 124
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1. Background 1.1 Members of the Audit and Scrutiny Panel are well versed in the role of the Panel and its statement of purpose 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. • Provide independent review of the council’s governance, risk management, performance, and control frameworks and oversee the financial reporting and annual governance processes. • Oversee the council’s internal and external audit arrangements, helping to ensure efficient and effective assurance arrangements are in place. • Undertake the scrutiny function within the council’s governance framework (establishing 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. 1.2 The Panel is a key component of the council’s corporate governance arrangements which are subject to various review and assessment processes. In 2021, an Internal Audit review of Principles E, F, and G from the Delivering Good Governance in Local Government: Framework (2016) considered there was a risk that “the council may not be able to adequately demonstrate that it has effective audit committee arrangements and/or arrangements to ensure Elected Members have the skills, knowledge and, where appropriate or required, access to relevant training and resources to effectively undertake their role”. 1.3 To implement the 2021 Internal Audit recommendations, the self-evaluation exercise was incorporated into the review programme for the council’s Strategic Self-Evaluation Framework. The evaluation framework, process, and timetable for the self-evaluation of the Audit and Scrutiny Panel was subsequently developed in line with the Strategic Self-Evaluation Framework and customised in order to best meet the needs, operating environment, and required outcomes of the function being evaluated. As part of this process, the Chief Officer (Legal and Democratic) was assigned the role of independent (1) Recognise that the outcome from the self-evaluation demonstrates the extent to which the Panel is effective in discharging its Audit and Scrutiny roles, (2) Review the results from the 2025 self-evaluation exercise (with comparisons to the 2023 exercise where relevant) and identify any further developments required to inform the improvement plan and next steps to ensure the Panel continues to demonstrate that it is effective in discharging its role, and (3) Endorse and action the next steps outlined at paragraph 2.16 to ensure the Panel remains effective in discharging its Audit and Scrutiny roles in relation to the functions of an Audit Committee as per the CIPFA document Audit Committees: Practical Guidance for Local Authorities (2022), and to ensure the council can demonstrate Best Value through the existence of robust arrangements for performance reporting and scrutiny. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 66 of 124
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Champion for the self-evaluation exercise. 1.4 A self-evaluation of the Audit and Scrutiny Panel was subsequently undertaken in 2023 which at the time comprised a request for current Panel members (as well as those who had been members of the Panel since the local government elections in May 2022) to complete an online survey which consisted of good practice statements aligned to the undernoted. In respect of the Audit function of the Panel: a) Chartered Institute of Public Finance and Accountancy (CIPFA) Position Statement: Audit Committees in Local Authorities (2018). b) CIPFA Audit Committees Practical Guidance for Local Authorities (2018). In respect of the Scrutiny function of the Panel: c) Best Value Statutory Guidance (2020). 1.5 The ensuing improvement plan was approved by the Panel in November 2023 (link). At this time the next steps, also approved by the Panel, included the requirement for a follow up self-evaluation exercise to be undertaken. A specific recommendation was subsequently approved by the Policy and Strategy Committee in December 2023 in respect of amending the governance arrangements and removing the scope for substitute members to attend Audit and Scrutiny Panel meetings. This recognised the role that consistency of involvement has in terms of ensuring ongoing Panel effectiveness and was considered a key improvement given the importance of Panel members having appropriate training, knowledge, and understanding. 1.6 A follow-up self-evaluation was carried out in July 2025 and issued to the 11 current members of the Panel. To ensure consistency between the 2023 and 2025 self- evaluations, the intention had been to use the same set of assessment questions which had initially been derived from the national guidance documents listed in paragraph 1.4 above. However, CIPFA had since published a new version of their aforementioned documents and, while much of the content remained similar to the previous version, there were some distinct differences which impacted on the assessment question set used in 2025. Appendix 2 to this report lists the question set used in 2025 and shows whether the results for 2025 can be compared to the results from the 2023 self- evaluation. 1.7 Following completion of work to collate and analyse the responses to the 2025 online survey, this report herewith - from the Chief Officer (Legal and Democratic) in their role as Champion for the self-evaluation exercise - presents the outcome from the self- evaluation of the Audit and Scrutiny Panel as a synopsis in Appendix 1 for due consideration by Panel members. This covering report contains a high-level summary of the synopsis. 1.8 Having considered the results from the 2025 self-evaluation of the Audit and Scrutiny Panel; the Panel are asked to identify any further developments required to inform the improvement plan and next steps to ensure the Panel continues to demonstrate that it is effective in discharging its role. 2. Self-Evaluation 2.1 Undertaken in line with the corporate approach set out in the Strategic Self-Evaluation Framework, the self-evaluation of the Audit and Scrutiny Panel aims to answer three simple questions - How well are we doing? How do we know? (i.e. What evidence is there to support the view of how well we are doing?), and How can we do better? (i.e. Page 67 of 124
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What are we going to do now?). 2.2 A synopsis of the self-evaluation exercise is set out in Appendix 1; this includes the following: • An outline in terms of what the self-evaluation of the Audit and Scrutiny Panel aimed to achieve. • The assessment framework - which was based on the key principles and good practice set out in the national documents listed in paragraph 1.4 above. • The assessment process, including timescales - from the initial desktop exercise identifying existing evidence against the respective CIPFA and Best Value guidance (referred to above), to the online survey process, and subsequent development of the outcome report. • Respondents - in total 11 Elected Members who currently sit on the Audit and Scrutiny Panel were given the opportunity to respond to the online survey. • Survey results - the aggregated overall RAG status for the self-evaluation exercise as well as for each of the four themes and good practice questions which have been compiled from the results of the online survey (where responses were anonymous). 2.3 The 2025 online survey contained 24 good practice questions and presented the opportunity for respondents to: • Provide constructive feedback in line with the experience of being a member of the Audit and Scrutiny Panel by answering Yes, Partially, No, or Don’t Know to each of the questions. A No or Partially response in some questions prompted a further question that asked for more details to help understand any further improvements required in this respect. • Highlight where the Panel works well - in line with its approved terms of reference. The Terms of Reference are attached to this report in Appendix 3 for reference. • Identify anything that could be improved in relation to the Audit and Scrutiny Panel - in line with the Panel’s approved terms of reference. How well are we doing? 2.4 A RAG status was applied to each of the 24 good practice questions based on how respondents answered each question, this is set out in Table 1 below. Description RAG status applied Respondents replied with a Yes to the question in the online survey = this is an area of good practice. Green Respondents replied with a Partially to the question in the online survey = this is an area that potentially requires further investigation. Amber Respondents replied with a No to the question in the online survey = this is an area that requires further investigation. Red Respondents replied with a Don’t Know to the question in the online survey = this is an area that potentially requires further investigation. Grey Table 1: Description of survey responses and RAG status applied 2.5 The 2025 online survey received an 82% response rate, with 9 out of 11 respondents answering the 24 good practice questions. This is a higher response rate than the 2023 survey (58% for 11 out of 19 respondents). Page 68 of 124
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2.6 The aggregated RAG status for the good practice questions combined is set out in Figure 1 below. A high-level summary shows that: • The results for the 2025 survey show a relatively positive response across all questions, with 77% of responses having a Yes response (compared to 59% in 2023). • in 2025 there is a smaller proportion of negative compared to positive responses in terms of Partially (12%) and No (5%). This compares to 12% and 11% in 2023 respectively. • In 2025 the proportion of Don’t Knows is 7%; this is also an improvement from 18% Don’t Knows in 2023. It is considered that the proportion of Don’t Knows will have been influenced by the length of time respondents have been a member of the Audit and Scrutiny Panel. 2.7 Following the online survey the good practice questions considered areas of good practice, which received the highest Yes responses, are listed in Table 2 below. Theme Good practice question % responses = Yes in 2025 % responses = Yes in 2023 Functions of the Panel Q5. Has the Panel maintained its remit as set out in the Terms of Reference in the approved Scheme of Administration? 100% 73% Functions of the Panel Q9. Do the scrutiny structures in the council support Members in reviewing and challenging performance? 100% 55% Effectivenes s of the Panel Q18. Does the Panel engage with a wide range of leaders and managers, including discussion of audit findings, risks, and action plans with the responsible officers? 100% 73% Effectivenes s of the Panel Q22. Has the Panel maintained a non-political approach to discussions throughout? 100% n/a Table 2: Areas of good practice (i.e. Yes responses) n/a = question new for 2025 2.8 The areas of good practice shown in Table 2 above are further substantiated by the feedback provided in terms of where respondents think the Panel works well (in line with its approved terms of reference). A summary of the constructive feedback received in respect of the themes referenced in Table 2 is noted below: a) Totally non-political. b) All very supportive of the work and not afraid to interrogate as necessary. c) A trusting working relationship and transparency. d) The Panel complies with the terms of reference. e) Working positively together with departments heads for a better understanding. f) I think reviewing and challenging performance is a key function of the panel that it undertakes to a high standard. Page 69 of 124
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g) A positive team effort. h) [The Panel works well] across all areas. i) Working positively with council officers. j) We have seen real tangible improvements from recommendations made by the Panel. k) I think the Panel is effective in scrutinising the operations and performance of council services and continues to be an important aspect of the council's credibility as a multi-million-pound organisation. How can we do better? 2.9 Following the online survey, the good practice questions which are considered to potentially require further investigation, and which received the highest combined responses for Partially, No, and Don’t Know are listed in Table 3 below. * Note, this table also shows where the aggregated responses for Partially, No, and Don’t Know responses combined exceed the response for Yes to a question. This aggregation is shown in the table below to clearly differentiate between (a) areas of good practice (i.e. Yes responses) and (b) areas potentially requiring further investigation (i.e. Partially, No, and Don’t Know responses combined). Theme Good practice question 2025 % responses = Partially, No, or Don’t Know combined 2023 % responses = Partially, No, or Don’t Know combined Membership and Support Q11. From the wider Panel perspective and remit, do you consider there is a satisfactory level of knowledge across the membership of the Panel? * (a) 44% compared to (b) 56%. 56% No 33% + Partially 22% combined (there were 0% Don’t Know’s) n/a Membership and Support Q12. Do Members of the Panel receive sufficient training and support to perform their role on the Panel? * (a) 56% compared to (b) 44% in 2025 compared to (a) 55% and (b) 45% in 2023. 44% No 33% + Don’t Know 11% combined (there were 0% Partially’s) 45% Partially 27% + No 9% + Don’t Know 9% Membership and Support Q10. From your own perspective as an individual member of the Panel, do you feel you have appropriate knowledge and skills to sit on the Panel? * (a) 67% compared to (b) 33%. 33% No 22% + Don’t Know 11% combined (there were 0% Partially’s) n/a Panel Purpose and Governance Q4. Are Members of the Panel committed to training and personal development to update and enhance their knowledge, skills, capacity, and capabilities (where appropriate or required) to deliver Best Value and perform their role on the Panel? * (a) 44% compared to (b) 56% in 2025, compared to (a) 70% and (b) 30% in 2023. 56% No 11% + Partially 33% + Don’t Know 11% combined 30% Partially 10% + No 20% combined (there were 0% Don’t Knows) Panel Purpose and Governance Q1. Is the role and purpose of the Audit and Scrutiny Panel understood and accepted across the council? * (a) 56% compared to (b) 44% in 2025 compared to (a) 45% and (b) 55% in 2023. 44% Partially 33% + Don’t Know 11% combined (there were 0% No’s) 55% Partially 27% + No 27% combined (there were 0% Don’t Know’s) Page 70 of 124
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Effectiveness of the Panel Q17. Are meetings effective with a good level of discussion and engagement from all Panel members? * (a) 56% compared to (b) 44% in 2023, compared to (a) 55% and (b) 45% in 2023. 44% No 11% + Partially 33% combined (there were 0% Don’t Knows) 45% Partially 18% + No 18% + Don’t Know 9% combined Effectiveness of the Panel Q23. Do recommendations from the Panel have traction with council officers in leadership roles? * (a) 67% compared to (b) 33%. 33% Partially 22% + Don’t Know 11% combined (there were 0% No’s) n/a Effectiveness of the Panel Q19. Does the Panel make recommendations for the improvement of governance, risk, control, and performance and are these acted on? * (a) 67% compared to (b) 33% in 2025, compared to (a) 64% and (b) 36% in 2023. 33% Partially 22% + Don’t Know 11% combined (there were 0% No’s) 36% Partially 27% + Don’t Know 9% combined (there were 0% No’s) Effectiveness of the Panel Q16. Has the Panel obtained feedback on its performance from those interacting with the Panel or relying on its work? * (a) 67% compared to (b) 33% in 2025, compared to (a) 27% and (b) 73% in 2023. 33% Partially 22% + Don’t Know 11% combined (there were 0% No’s) 73% Partially 9% + No 18% + Don’t Know 45% combined Effectiveness of the Panel Q20. Has the Panel evaluated whether and how it is adding value to the organisation? * (a) 56% compared to (b) 44% in 2025, compared to (a) 18% and (b) 82% in 2023. 44% Partially 11% + Don’t Know 33% combined (there were 0% No’s) 82% Partially 9% + No 27% + Don’t Know 45% combined Table 3: Areas potentially requiring further investigation (i.e. Partially, No, and Don’t Know responses combined) n/a = question new for 2025 Note, due to rounding, % figures may not always sum to 100%. 2.10 As noted in paragraph 2.6, overall there has been a lower proportion of Don’t Know responses in 2025 than in 2023 (7% compared to 18% respectively). While it is recognised that the proportion of Don’t Knows will have been influenced by the length of time respondents have been a member of the Audit and Scrutiny Panel, this does present an opportunity to highlight potential areas for improvement. The good practice questions which received the highest Don’t Know responses are listed in Table 4 below. Theme Good practice question 2025 % responses = Don’t Know 2023 % responses = Don’t Know Effectiveness of the Panel Q20. Has the Panel evaluated whether and how it is adding value to the organisation? 33% 45% Functions of the Panel Q7. Where coverage of core areas in the terms of reference has been found to be limited, are plans in place to address this? 25% 45% Effectiveness of the Panel Q16. Has the Panel obtained feedback on its performance from those interacting with the Panel or relying on its work? 22% 45% Panel Purpose and Governance Q1. Is the role and purpose of the Audit and Scrutiny Panel understood and accepted across the council? 11% 0% Panel Purpose and Q4. Are Members of the Panel committed to training and personal development to update and enhance 11% 0% Page 71 of 124
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Governance their knowledge, skills, capacity, and capabilities (where appropriate or required) to deliver Best Value and perform their role on the Panel? Functions of the Panel Q6. Are the Panel fulfilling their Terms of Reference and ensuring adequate consideration has been given to all core areas in the Terms of Reference? 11% n/a Membership and Support Q10. From your own perspective as an individual member of the Panel, do you feel you have appropriate knowledge and skills to sit on the Panel? 11% n/a Membership and Support Q12. Do Members of the Panel receive sufficient training and support to perform their role on the Panel? 11% 9% Membership and Support Q13. Is the secretariat and administrative support provided to the Panel adequate? 11% 9% Effectiveness of the Panel Q19. Does the Panel make recommendations for the improvement of governance, risk, control, and performance and are these acted on? 11% 9% Effectiveness of the Panel Q23. Do recommendations from the Panel have traction with council officers in leadership roles? 11% n/a Table 4: Areas potentially requiring further investigation (i.e. Don’t Know responses) n/a = question new for 2025 2.11 The areas potentially requiring further investigation shown in Tables 3 and 4 above are further substantiated by the feedback provided in terms of where respondents think things could be improved (in line with the Panel’s approved terms of reference). A summary of the constructive feedback received in this respect is noted below: a) Getting some matters outstanding concluded quicker. b) Members involvement and managers responses to issues raised. Not much can be done about Members but the CMT should take more action on managers who do respond poorly to issues raised. This has seen some improvement recently but there is room for improvement in this respect in some areas. c) To work with departments for a better understanding of issues so we can process them. d) I think the turnover of Elected Members has affected the Panel’s performance. Though this is in hands of political parties rather than something that the Panel itself can directly influence. e) While I appreciate services will always approach the audit team with caution, it is critical that all services recognise and value the purpose of the Panel and contribute to it in a transparent manner. f) On occasion, too much turnover in membership, which affects continuity, albeit that has improved greatly recently. g) I feel training would be beneficial for a better understanding. h) Questioning and scrutiny by all Members of the Panel - we need to identify why only some consistently do this and encourage others to contribute more. i) Maybe training more often and more encouragement to attend. j) Stick to original time and date for quarterly meetings and give adequate time for any special meeting called. k) They are always room for improvements. l) I think in terms of Elected Members, the Panel would be better served by those with the time to scrutinise performance, financial and otherwise, and all papers brought forward in the detail they deserve and that there should be an Page 72 of 124
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expectation placed on the amount of time an Elected Member ought to put into their role on the Panel. m) Turnover has been a problem but that looks to be resolved with those in place at present. n) Try and avoid any special meetings and keep to original time and dates in diary. o) Identifying issues, working to resolve them. Conclusion and next steps 2.12 The analysis from the detailed survey responses set out in the synopsis in Appendix 1, and the summary overview in paragraphs 2.6 to 2.11 above, show a relatively positive response to the 2025 self-evaluation exercise with an improvement from 59% positive responses in 2023 compared to 77% in 2025. In terms of the Audit and Scrutiny Panel effectively discharging its duties the 2025 exercise also shows a high degree of performance (and 100% positive response rates from Panel members) being reflected against the following good practice questions: • Q5. Has the Panel maintained its remit as set out in the Terms of Reference in the approved Scheme of Administration? • Q9. Do the scrutiny structures in the council support Members in reviewing and challenging performance? • Q18. Does the Panel engage with a wide range of leaders and managers, including discussion of audit findings, risks, and action plans with the responsible officers? • Q22. Has the Panel maintained a non-political approach to discussions throughout? 2.13 As noted in the synopsis in Appendix 1, and the summary overview in paragraphs 2.6 to 2.11 above, there are also areas potentially requiring further investigation in order to identify any further developments required to inform the improvement plan and next steps to ensure the Panel continues to demonstrate that it is effective in discharging its role. In terms of honing in on specific questions, the Audit and Scrutiny Panel may wish to focus on those questions where the survey results do not show improvement from the 2023 self-evaluation exercise to the 2025 exercise. Out of the 18 questions where results are comparable from the 2023 to the 2025 survey, 72% (13 questions) show improvement, with 28% (5 questions - noted below) potentially requiring further investigation. • Q4. Are Members of the Panel committed to training and personal development to update and enhance their knowledge, skills, capacity, and capabilities (where appropriate or required) to deliver Best Value and perform their role on the Panel? • Q12. Do Members of the Panel receive sufficient training and support to perform their role on the Panel? • Q13. Is the secretariat and administrative support provided to the Panel adequate? • Q14. Does the Panel have good working relations with officers across the council (i.e. internal audit leads, scrutiny and best value leads, and the Chief Finance Officer) and including with the external auditors? • Q17. Are meetings effective with a good level of discussion and engagement from all Panel members? 2.14 From an Audit perspective, where the results of the 2025 self-evaluation exercise show a high degree of performance against the good practice questions - and clear improvement from the 2023 exercise - CIPFA consider this to be an indicator that the Audit and Scrutiny Panel is soundly based and has in place a knowledgeable Page 73 of 124
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membership. 2.15 From a Scrutiny perspective, improvements in the 2025 self-evaluation show the extent to which the Panel positively contributes to the council being able to demonstrate Best Value. Moving forward, any improvement actions identified will be incorporated into the Scrutiny Work Programme which is reported to the Panel annually. This will enable Elected Members on the Panel to monitor the progress and effectiveness of the improvement actions implemented along with the Panel’s routine activity. 2.16 As well as informing an improvement plan for the Panel, the self-evaluation exercise is also considered an important improvement tool in terms of supporting future planning for the Panel’s work programme, training plan, and annual report. As such, the Audit and Scrutiny Panel is asked to review the results from the 2025 self-evaluation exercise (with comparisons to the 2023 exercise where relevant) and identify any further developments required to inform the improvement plan and next steps to ensure the Panel continues to demonstrate that it is effective in discharging its role. 3. Measures of success 3.1 Measures of success will be identified in the form of evidence which demonstrates that the council has effective Audit and Scrutiny Panel arrangements. Specifically, that the: • Panel effectively discharges its duty in line with the council’s Scheme of Administration (December 2024). • Performance and activities of the Panel are effective in discharging the audit aspect of its role in line with the CIPFA documents - Position Statement: Audit Committees in Local Authorities (2022, and Audit Committees Practical Guidance for Local Authorities (2022). • Performance and activities of the Panel are effective in discharging the scrutiny aspect of its role in line with ensuring the council can demonstrate Best Value through the existence of robust arrangements for performance reporting and scrutiny. 3.2 Further measures of success will reflect the skills and knowledge of the Elected Members on the Audit and Scrutiny Panel, and their commitment to ensuring they have (where appropriate or required) access to relevant training and resources to enhance their knowledge, skills, capacity, and capabilities in order to effectively undertake their role on the Panel. 4. Supporting documentation 4.1 Appendix 1: Synopsis of the self-evaluation of the Audit and Scrutiny Panel. Appendix 2: Good practice questions used in the online survey, showing where comparisons are available between the 2023 and the 2025 results. Appendix 3: Audit and Scrutiny Panel Terms of Reference. Rachel Blair Chief Officer (Legal and Democratic) 5. Impacts Page 74 of 124
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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 75 of 124
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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? Implementation of a self-evaluation of the Audit and Scrutiny Panel contributes to the mitigation of the risk on the Corporate Risk Register for governance, leadership, and decision making. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 76 of 124
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Appendix 1 SYNOPSIS FOR THE SELF-EVALUATION OF: The Audit and Scrutiny Panel ASSESSMENT FRAMEWORK: The framework used reflects the function being assessed and the context and operating environment of that function and as such reflects the undernoted. In respect of the Audit function of the Panel - the assessment framework incorporated the key principles set out in the following national documents which are considered to be essential factors in developing effective Audit aspects for such a committee. • CIPFA Position Statement: Audit Committees in Local Authorities (2022). • CIPFA Audit Committees Practical Guidance for Local Authorities (2022). In respect of the Scrutiny function - the Panel has a key role to play in ensuring the council can demonstrate Best Value through the existence of robust arrangements for performance reporting and scrutiny, as such relevant assessment statements have been incorporated from the national document: • Best Value Statutory Guidance (2020). ASSESSMENT TEAM: • Council’s Project Team: Rachel Blair - Chief Officer (Legal and Democratic) and Corporate Management Team (CMT) Champion, Susan Lawrie (Strategy, Performance, Data Manager). • Respondents: 11 Elected Members currently on the Audit and Scrutiny Panel (as at July 2025): Councillors S Watson (Convener), P Kelly (Vice- Convener), C Costello, A Duffy-Lawson, M Hughes, J Hume, D Johnston, J Leckie, M McCulloch, J McLaren, G Robinson. ASSESSMENT PROCESS: • May 2025 - Desktop exercise to map the 2023 question set against the updated CIPFA documents referenced above to determine the question set to be used in 2025; this was subsequently reviewed and approved by the Chief Officer (Audit and Risk) and the Chief Officer (Legal and Democratic). • June 2025 - Desktop exercise to identify existing evidence against the respective CIPFA and Best Value guidance. • 10th July 2025 - Chief Officer (Legal and Democratic) shared the online survey with the respondents (listed above), offering 1:1 support if requested. • 10th July to 6th August 2025 - Online survey open. • 7th August 2025 - Verbal update of the initial headline results at the Audit and Scrutiny Panel Conveners meeting. • 15th August 2025 - Oversight of outcome report by the CMT. • 28th August 2025 - Presentation of outcome report to the Audit and Scrutiny Panel meeting for Members on the Panel to identify areas for improvement and further developments required to inform the improvement plan. WHAT THE EVALUATION AIMS TO ACHIEVE: Through the discrete functions of both Audit and Scrutiny, the Audit and Scrutiny Panel provide an independent and high-level resource to support good governance and strong public financial management. The Panel’s role in respect of the Audit function reflects the standards set out in the Chartered Institute of Public Finance and Accountancy (CIPFA) Position Statement: Audit Committees in Local Authorities (2022). This role, and the wider Terms of Reference for the Panel, which includes the Scrutiny function, is set out in the Scheme of Administration which was most recently approved at the Council meeting in December 2024. The council’s governance arrangements are reviewed on an annual basis through the Strategic Governance Framework (as part of the programme of scrutiny work) and throughout the year as part of the internal audit programme of audit work. These processes support the council in demonstrating compliance with, and commitment to, the good governance principles as set out in the national Delivering Good Governance in Local Government: Framework (2016). A corporate governance review of Principles E, F, and G from the national Framework was undertaken by Internal Audit in 2021 which focused on the following: • E - Developing the entity’s capacity, including the capability of its leadership and the individuals within. • F - Managing risks and performance through robust internal control and strong public financial management. • G - Implementing good practices in transparency, reporting, and audit to deliver effective accountability. In relation to the effectiveness of the Audit and Scrutiny Panel, the Internal Audit report (submitted to the Panel in March 2021) considered there was a risk that: “the council may not be able to adequately demonstrate that it has effective audit committee arrangements and/or arrangements to ensure Elected Members have the skills, knowledge and, where appropriate or required, access to relevant training and resources to effectively undertake their role”. A self-evaluation of the Audit and Scrutiny Panel was subsequently undertaken in 2023 with implementation of the improvement plan approved by the Panel in November 2023. At this time the next steps, also approved by the Panel, was for a follow up self- evaluation exercise to be undertaken. As such, a follow-up self-evaluation has been carried out in July 2025, and a summary of the findings are set out in this synopsis for due consideration by Panel members. The Panel is also asked to identify any further developments required to inform the improvement plan and next steps to ensure the Panel continues to demonstrate that it is effective in discharging its role. Page 77 of 124
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HEADLINE RESULTS: The 2025 online survey received an 82% response rate, with 9 out of 11 respondents answering the good practice questions. The response rate to the 2023 survey was 58% (11 out of 19). The 2025 online survey asked respondents to state how much they agreed with the good practice questions by responding either Yes, Partially, No, or Don’t Know. The aggregated RAG status for the good practice questions combined is set out in Figure 1. A high-level summary of the results shows that: • The results for the 2025 survey show a relatively positive response across all questions, with 77% of responses having a Yes response (compared to 59% in 2023). • in 2025 there is a smaller proportion of negative compared to positive responses in terms of Partially (12%) and No (5%). This compares to 12% and 11% in 2023 respectively. • In 2025 the proportion of Don’t Knows is 7%; this is also an improvement from 18% Don’t Knows in 2023. • It is considered that the proportion of Don’t Knows will have been influenced by the length of time respondents have been a member of the Audit and Scrutiny Panel. The evaluation framework for the self-evaluation of the Audit and Scrutiny Panel covered four themes: A. Panel Purpose and Governance. B. Functions of the Panel. C. Membership and Support. D. Effectiveness of the Panel. The analysis of the online survey shows the overall RAG status for each of the 4 themes in Figure 2. This shows the differentiation between (a) areas of good practice (i.e. Yes responses) and (b) areas potentially requiring further investigation (i.e. Partially, No, and Don’t Know responses combined). A high-level summary of the 2025 results shows that: • Functions of the Panel received the highest proportion of positive (Yes) responses (91%). • Panel Purpose and Governance received the lowest proportion of positive (Yes) responses (69%), closely followed by Membership and Support (70%). • When responses for Partially, No, and Don’t Know are combined the themes which require further investigation the most are Panel Purpose and Governance (31%) and Membership and Support (30%). Looking at the Partially, No, and Don’t Know responses in more detail (as depicted in Figure 3), this shows that: Page 78 of 124
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• The theme for Panel Purpose and Governance received the highest proportion of negative responses (Partial and No combined) with 25% in this respect, closely followed by Membership and Support (24%). • The proportion of Don’t Knows are highest in the theme of Effectiveness of the Panel (9%), although there is not much variation across the four themes in this respect. Page 79 of 124
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FULL RESULTS: Delving deeper into the results from the 2025 online survey, the % of respondents who answered either Yes, Partially, No, or Don’t Know for each of the good practice questions is show in Figure 4. This includes a RAG status to provide a visual representative of the results, i.e. • Yes = Green • Partially = Amber • No = Red • Don’t Know = Grey Note, due to rounding, % figures may not always sum to 100%. The good practice questions that received the highest positive (Yes) responses are listed below: Functions of the Panel • Q5 - 100% of respondents said Yes, the Panel has maintained its remit as set out in the Terms of Reference in the approved Scheme of Administration. This is an improvement from 73% in the 2023 survey. • Q9 - 100% of respondents said Yes, the scrutiny structures in the council support Members in reviewing and challenging performance. This is an improvement from 55% in the 2023 survey. Effectiveness of the Panel • Q18 - 100% of respondents said Yes, the Panel engages with a wide range of leaders and managers, including discussion of audit findings, risks, and action plans with the responsible officers. This is an improvement from 73% in the 2023 survey. • Q22 - 100% of respondents said Yes, the Panel has maintained a non-political approach to discussions throughout. This question was new in the updated CIPFA guidance so was not asked in 2023. The good practice questions that received the highest negative responses (Partially and/or No and/or Don’t Know) are listed below. A comparison of the 2025 results with the 2023 results (where available) is included in the subsequent individual graphs for each question. Membership and Support • Q11 - 56% of respondents replied that from the wider Panel perspective and remit, they considered there was not (or only partially) a satisfactory level of knowledge across the membership of the Panel. 33% replied to say No and 22% Partially. With Partially and No combined for this question, this is a higher proportion than the 44% who responded to say Yes. • Q12 - 44% of respondents considered that Members did not receive sufficient training and support to perform their role on the Panel, or they didn’t know if this was the case. 33% replied to say No and 11% Page 80 of 124
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replied to say Don’t Know. • Q10 - While two thirds agreed with question 10, a third (33%) considered that from their own perspective as an individual member of the Panel, they felt they did not have appropriate knowledge and skills to sit on the Panel, or they didn’t know if this was the case. 22% replied to say No and 11% replied to say Don’t Know. Panel Purpose and Governance • Q4 - 56% of respondents considered that Members of the Panel were not (or only partially) committed to training and personal development to update and enhance their knowledge, skills, capacity, and capabilities (where appropriate or required) to deliver Best Value and perform their role on the Panel, or they didn’t know if this was the case. 33% replied to say Partially, 11% No, and 11% Don’t Know. With Partially, No, and Don’t Know combined for this question, this is a higher proportion than the 44% who responded to say Yes. • Q1 - 44% of respondents considered that the role and purpose of the Audit and Scrutiny Panel was only partially understood and accepted across the council, or they didn’t know if this was the case. 33% replied to say Partially, and 11% Don’t Know. Effectiveness of the Panel • Q17 - 44% of respondents considered that meetings were not (or only partially) effective with a good level of discussion and engagement from all Panel members, or they didn’t know if this was the case. 11% replied to say No, and 33% Partially. • Q23 - While two thirds agreed with question 23, a third (33%) of respondents considered that recommendations from the Panel only partially had traction with council officers in leadership roles, or they didn’t know if this was the case. 22% replied to say Partially and 11% replied to say Don’t Know. • Q19 - While two thirds agreed with question 19, a third (33%) of respondents replied that they considered the Panel only partially made recommendations for the improvement of governance, risk, control, and performance and that these were acted on, or they didn’t know if this was the case. 22% replied to say Partially and 11% replied to say Don’t Know. • Q16 - While two thirds agreed with question 16, a third (33%) of respondents considered that the Panel only partially obtained feedback on its performance from those interacting with the Panel or relying on its work, or they didn’t know if this was the case. 11% replied to say Partially and 22% replied to say Don’t Know. • Q20 - 44% of respondents considered that the Panel only partially evaluated whether and how it is adding value to the organisation, or they didn’t know if this was the case. 11% replied to say Partially and 33% replied to say Don’t Know. The good practice questions that received the highest individual Don’t Know responses are listed below. A comparison of the 2025 results with the 2023 results (where available) is included in the subsequent individual graphs for each question. Effectiveness of the Panel • Q20 - a third (33%) of respondents Didn’t Know if the Panel evaluated whether and how it is adding value to the organisation. • Q16 - 22% of respondents Didn’t Know if the Panel had obtained feedback on its performance from those interacting with the Panel or relying on its work. Functions of the Panel • Q7 - a quarter (25%) Didn’t Know if - where coverage of core areas in the terms of reference has been found to be limited - there were plans in place to address this. The following good practice questions all received 11% in terms of a Don’t Know response rate; this equates to one response each. • Q1 - Is the role and purpose of the Audit and Scrutiny Panel understood and accepted across the council. • Q4 - Are Members of the Panel committed to training and personal development to update and enhance their knowledge, skills, capacity, and capabilities (where appropriate or required) to deliver Best Value and perform their role on the Panel. • Q6 - Are the Panel fulfilling their Terms of Reference and ensuring adequate consideration has been given to all core areas in the Terms of Reference. • Q10 - From your own perspective as an individual member of the Panel, do you feel you have appropriate knowledge and skills to sit on the Panel. • Q12 - Do Members of the Panel receive sufficient training and support to perform their role on the Panel. • Q13 - Is the secretariat and administrative support provided to the Panel adequate. • Q19 - Does the Panel make recommendations for the improvement of governance, risk, control, and performance and are these acted on. • Q23 - Do recommendations from the Panel have traction with council officers in leadership roles. Page 81 of 124
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Context and evidence base. Context is an important first step in a self-evaluation exercise in order to ensure a clear understanding of the operating environment of the function being evaluated. For the self-evaluation of the Audit and Scrutiny Panel, initial desktop work was undertaken to gather evidence to ensure that the results from the self-evaluation exercise can be cross checked from multiple sources in order to increase the reliability and validity of the findings, as well as help to ensure a wider understanding of complex issues and facilitate the identification of more complete and fully informed areas for improvement. The section on the left below reflects the outcome of the desktop exercise and contains the pre-populated evidence and context base regarding the operation of the Panel in line with the council’s decision making and committee arrangements as set out in the approved Standing Orders and Scheme of Delegation. This section also reflects updates in terms of the council’s corporate governance arrangements which have been set out in various reports to the Panel over the course of many cycles in every year. The section on the right below sets out the outputs provided by respondents who replied to the 2025 online survey. In relation to the qualitative comments on the right, these have been handled with a degree of sensitivity to ensure that no individual can be identified from any comment, and that feedback is clear and constructive in informing future improvements to the Audit and Scrutiny Panel. Panel Purpose and Governance Pre-populated evidence and context base Outputs provided by the respondents who replied to the online survey • Local authorities are corporate bodies created by statutes for corporate decision making. 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. In North Lanarkshire, 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 the 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). • 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. This was subsequently updated following amendments approved at the Council meeting on 28th March 2024. Following the organisational and structural changes agreed by the Policy and Strategy Committee at its meeting on 26th September 2024 (link to file), the Scheme of Administration was most recently updated in December 2024 (link to file); this includes the Terms of reference for the Audit and Scrutiny Panel - which are also noted at Q1. Is the role and purpose of the Audit and Scrutiny Panel understood and accepted across the council? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • Some Elected Members still do not understand, or appreciate, the importance of the Audit and Scrutiny Panel in its duty to audit the performance of the council and scrutinise its operations, practices, governance, and controls. • There can be poor responses from some managers re issues raised. • I would say it is not always fully understood by Elected Members who are not on the Panel. Q2. Does the Panel provide support to the council in meeting the requirements of good governance? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: Page 82 of 124
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the end of this document for ease of reference. A reminder of the Terms of Reference for the Panel was on the meeting agenda in May 2024. • The Audit and Scrutiny Panel was established in its current form in 2017, with Audit / Governance and Scrutiny being separate committees prior to that. The current Audit and Scrutiny Panel has two discrete functions - Audit and Scrutiny, with corporate governance a key aspect within both of these functions and Risk Management having a dedicated agenda item at each meeting. • As per the Scheme of Administration, the Audit and Scrutiny Panel is a standing committee of North Lanarkshire Council and a Sub-Committee of the Policy and Strategy Committee. • The Audit and Scrutiny Panel’s remit in relation to accountability arrangements is to report to the council’s Policy and Strategy Committee on the Panel’s findings, conclusions, and recommendations concerning the adequacy and effectiveness of the council’s governance, risk management and internal control frameworks, financial reporting arrangements, internal and external audit arrangements, the performance of the council in delivering upon its priorities, and the adequacy and effectiveness of the council's performance and improvement arrangements. It is also required to report to the Policy and Strategy Committee on a regular basis on the Panel’s performance in relation to its Terms of Reference and the effectiveness of the Panel in meeting its purpose. • The Terms of Reference for the Audit and Scrutiny Panel have a specific section in relation to governance, risk, and control which sets out the Panel’s requirements to review the council’s corporate governance arrangements against relevant good practice guidance and consider annual governance reports and assurances. The Terms of Reference also set out 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. This provides an opportunity for the Panel to identify issues and concerns • Panel can only be as good as Councillors on the Panel make it. Q3. Are the arrangements to hold the Panel to account for its performance operating satisfactorily? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • The mechanisms are there but not utilised fully. Q4. Are Members of the Panel committed to training and personal development to update and enhance their knowledge, skills, capacity, and capabilities (where appropriate or required) to deliver Best Value and perform their role on the Panel? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey in respect of a lower proportion who said No, but there is an increase in the proportion who said Partially and Don’t Know, combined with a decrease in the proportion who said Yes. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • In my opinion, some members do not fully understand their role on the Panel. • There has been some turnover on the Panel - hopefully this situation is now resolved. I believe that the longer standing members of the panel understand their roles and are committed to personal development, and hope that the newer members will demonstrate the same commitment. • Some members do not contribute. • I believe the turnover in members of the Panel has been too large to say that this is the case across the board. However, I do believe there are a core group of Elected Members on the Panel who are committed to keeping themselves up to date and appropriately trained. Feedback from respondents on the Panel’s Purpose and Governance in terms of where they think the Panel works well (in line with its approved terms of reference): • The Panel is effective in discharging all its duties in relation to its purpose and governance. It monitors and questions Page 83 of 124
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that need to be escalated. • The Annual Governance Statement also fulfils the requirement set out in the CIPFA Position Statement: Audit Committees in Local Authorities (2022) document referenced above, i.e. “that the committee publish an annual report in accordance with the 2022 guidance, including compliance with the CIPFA Position Statement 2022, results of the annual evaluation, development work undertaken and planned improvements, and how it has fulfilled its terms of reference”. • Each year the Strategic Governance Framework provides the evidence for production of the Annual Governance Statement to demonstrate that the purpose, activities, and functions of the council’s Audit and Scrutiny Panel reflect the standards set out in CIPFAs Position Statement: Audit Committees in Local Authorities (2022). The most recent reports in this respect were submitted to the Panel in June 2025 link to Strategic Governance Framework, link to Annual Governance Statement for 2024/25. both internal and external audit effectively, timeously manages its duties regarding annual financial statements and scrutinises council operations and services effectively, requiring senior officers to demonstrate that they are effectively managing any issues identified by the Panel. • A very competent Audit and Scrutiny team provides good support. • Works well in all aspects. • The information the Panel is given from the Internal Audit team is good. Members do not always use the information for proper scrutiny and managers do not always respond effectively to issues raised. • Understanding the issues brought to the Panel to scrutinise and work for a better understanding • I think the Panel does well in scrutinising performance and asking challenging questions. • I think the Panel is effective in its governance of process and procedure across the Council. The ability to question any service on any programme of work in relation to timescales and financials is important and I think this works well. Feedback from respondents on the Panel’s Purpose and Governance in terms of where they think things could be improved (in line with the Panel’s approved terms of reference): • Getting some matters outstanding concluded quicker. • Members involvement and managers responses to issues raised. Not much can be done about members but the CMT should take more action on managers who do respond poorly to issues raised. This has seen some improvement recently but there is room for improvement in this respect in some areas. • To work with departments for a better understanding of issues so we can process them. • I think the turnover of Elected Members has affected the Panel’s performance. Though this is in hands of political parties rather than something that the Panel itself can directly influence. • While I appreciate services will always approach the audit team with caution, it is critical that all services recognise and value the purpose of the Panel and contribute to it in a transparent manner. Functions of the Panel Pre-populated evidence and context base Outputs provided by the respondents who replied to the online survey • The Terms of Reference for the Audit and Scrutiny Panel explicitly address the following areas from CIPFAs Position Statement: Audit Committees in Local Authorities (2022), i.e. governance arrangements, risk management arrangements, internal control arrangements (including financial management, value for money, ethics and standards, counter fraud and corruption), annual governance statement, financial reporting, assurance framework, internal audit, and external audit. • 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 Q5. Has the Panel maintained its remit as set out in the Terms of Reference in the approved Scheme of Administration? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Q6. Are the Panel fulfilling their Terms of Reference and ensuring adequate consideration has been given to all core areas in the Terms of Reference? Page 84 of 124
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recorded in the minutes. • Good governance enables the council to effectively pursue the ambition set out in The Plan for North Lanarkshire within appropriate controls and the management of risk. It is also central to ensuring effective scrutiny and delivery of statutory Best Value obligations. A 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 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. These reports also set out the role of Panel members in this respect. The external auditors Annual Audit Report (AAR) is reported to the Panel each year, the latest was in October 2024 (link to file). • Reflecting the principles in the national Delivering Good Governance in Local Government: Framework, the council’s local code of governance is set out in the Strategic Governance Framework which was initially approved in February 2020 and subsequently refreshed and approved by the Audit and Scrutiny Panel annually thereafter; the most recent in June 2025 (link to file). Q6 is not comparable across the 2023 and 2025 surveys. Q7. Where coverage of core areas in the terms of reference has been found to be limited, are plans in place to address this? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Q8. Is the Panel’s role clear in relation to ensuring the council can demonstrate Best Value through the existence of robust arrangements for performance reporting and scrutiny? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • External best value assessment is not always consistent with internal assessment. Good results are made very visible. Poor results are not covered in sufficient detail. Q9. Do the scrutiny structures in the council support Members in reviewing and challenging performance? Page 85 of 124
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• Representatives from the external auditors (currently Audit Scotland) are regular members of Audit and Scrutiny Panel meetings and separate meetings can be held between the Convener and the external auditors (where required) and 1:1s are often held between the Chief Officer (Audit and Risk) and the Convener of the Panel. The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Feedback from respondents on the Functions of the Panel in terms of where they think the Panel works well (in line with its approved terms of reference): • Totally non-political. • All very supportive of the work and not afraid to interrogate as necessary. • A trusting working relationship and transparency. • The Panel complies with the terms of reference. • Working positively together with departments heads for a better understanding. • I think reviewing and challenging performance is a key function of the panel that it undertakes to a high standard. Feedback from respondents on the Functions of the Panel in terms of where they think things could be improved (in line with the Panel’s approved terms of reference): • On occasion, too much turnover in membership, which affects continuity, albeit that has improved greatly recently. • I feel training would be beneficial for a better understanding. Membership and support Pre-populated evidence and context base Outputs provided by the respondents who replied to the online survey • 11 Elected Members sit on the Audit and Scrutiny Panel. Membership is in line with appointments to all committees and other bodies and these places are decided upon at a meeting of the Council. As such, the political composition of the Panel is also decided upon at a meeting of the Council. • Panel meetings are held quarterly in line with the council’s arrangements for committee meetings which support the implementation of the 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 Q10. From your own perspective as an individual member of the Panel, do you feel you have appropriate knowledge and skills to sit on the Panel? Q10 is not comparable across the 2023 and 2025 surveys. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • The complexity of the work the council does makes it impossible for members to carry out audit and scrutiny of the detailed analysis of the work the council does. More external assessment is needed to review all the measures the council is assessed on. Page 86 of 124
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arrangements and the Scheme of Administration. This was subsequently updated following amendments approved at the Council meeting on 28th March 2024. Following the organisational and structural changes agreed by the Policy and Strategy Committee at its meeting on 26th September 2024 (link to file), the Scheme of Administration was updated in December 2024 (link to file). • 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). • The Committee Services team within Legal and Democratic provide secretariat and administrative support to all of the council’s committees, including the Audit and Scrutiny Panel. This support also includes the provision of advice and guidance for all of the council’s committees to ensure compliance with the interpretation and implementation of the Scheme of Administration and Standing Orders. • The Chief Officer (Audit and Risk) supports the Panel on matters relating to internal audit, external audit, and risk management. • Prior to April 2025, the Chief Officer (Business and Digital) supported the Panel on matters relating to scrutiny and Best Value; this role transferred to the Chief Officer (Strategy and Engagement) from April 2025. Matters in relation to corporate governance can be covered by either of these two Chief Officers, depending on the particular subject matter. • The Chief Officer (Finance and Technology) supports the Panel on matters relating to financial reporting. • Any Chief Officer can be called in by the Panel to provide further support, where appropriate, on service- specific queries or matters. • LearnNL provides an online portal for all Elected Members training and development needs, as well as an induction programme for new Elected Members: Q11. From the wider Panel perspective and remit, do you consider there is a satisfactory level of knowledge across the membership of the Panel? Q11 is not comparable across the 2023 and 2025 surveys. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • I do not think some members fully understand their unique role on the Panel. • [There are ] a number of newer members on the Panel. It also does seem that questioning / scrutiny originates from a few members. We need to explore how we encourage all members to contribute. • Impossible based on complexity of council’s work; the scrutiny aspect of the Panel is difficult because of this. • Mainly due to turnover. It takes a decent length of time to get to grips with the functions of the Panel. Q12. Do Members of the Panel receive sufficient training and support to perform their role on the Panel? While the assessment of this question by respondents shows improvement from the 2023 to the 2025 survey in respect of a small increase in the proportion of Yes responses corresponding with a decrease in Partially responses, the proportion responding No and Don’t Know has increased. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • We need to rely mostly on Internal Audit work which is generally good but get little information on whether the actual council processes are in keeping with best standards. • Issues brought before Panel members may be where the rules and regulations are not always known. Q13. Is the secretariat and administrative support provided to the Panel adequate? The assessment of this question by respondents shows a small decrease in the proportion of Yes responses and a small increase in the proportion of Don’t Know responses from the 2023 to the 2025 survey. Page 87 of 124
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https://learnnl.learningpool.com/login/index.php Q14. Does the Panel have good working relations with officers across the council (i.e. internal audit leads, scrutiny and best value leads, and the Chief Financial Officer) and with the external auditors? The assessment of this question by respondents shows a decrease in the proportion of Yes responses with an increase in the proportion of Don’t Know responses from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • Very poor support or response to issues raised but getting better. Q15. Does the Panel have access to clear, timely, and sufficiently detailed information that allows them to carry out their governance and scrutiny role? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • Info is sometimes biased towards good news and results. • I think this varies depending on the department in question. Feedback from respondents on the Panel’s Membership and Support in terms of where they think the Panel works well (in line with its approved terms of reference): • The convenership of the panel is strong, contributing to its success in terms of achieving its purpose and terms of reference. • A positive approach both by the Panel and the officers. • Across all areas. • Internal Audit works well. • Identifying issues working positively with council officers. • I think the addition of the new Chief Officer and Audit Manager have worked well and reassured members following some challenging months. Feedback from respondents on the Panel’s Membership and Support in terms of where they think things Page 88 of 124
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could be improved (in line with the Panel’s approved terms of reference): • Questioning and scrutiny by all members of the Panel - we need to identify why only some consistently do this and encourage others to contribute more. • Maybe training more often and more encouragement to attend. • Stick to original time and date for quarterly meetings and give adequate time for any special meeting called. • They are always room for improvements • I think in terms of Elected Members, the Panel would be better served by members with the time to scrutinise performance, financial and otherwise, and all papers brought forward in the detail they deserve and that there should be an expectation placed on the amount of time an Elected Member ought to put into their role on the Panel. Effectiveness of the Panel Pre-populated evidence and context base Outputs provided by the respondents who replied to the online survey • Internal Audit undertakes a programme of work which is approved by the Audit and Scrutiny Panel on an annual basis; this is based on the Internal Audit Annual Plan. This plan is risk based and is periodically updated to reflect evolving issues and changes. The most recent was approved in May 2025 (link to file). Progress reports (with recommendations for improvement noted therein) are submitted to the Panel at each meeting which report on the outcome and findings from each completed audit from the Internal Audit Annual Plan. • A log is maintained of Audit and Risk related items to allow Elected Members to track implementation of outstanding requests and recommendations made by the Panel; log as at May 2025 (link to file). • The Internal Audit Charter is a formal document that defines Internal Audit’s purpose, authority, and responsibility. It establishes Internal Audit’s position within the council, including the nature of the functional reporting relationship with senior management and the Audit and Scrutiny Panel; authorises access to records, personnel, and physical properties relative to the performance of audit engagements; and defines the scope of Internal Audit activities. Although the Charter is discussed and agreed with senior management (including the Chief Executive), final approval of the Internal Audit Charter resides with the Audit and Scrutiny Panel. The most recent report was submitted to the Panel in May 2025 (link to file). • The Internal Audit Strategy (link to file) is a formal document that defines Internal Audit’s strategic Q16. Has the Panel obtained feedback on its performance from those interacting with the Panel or relying on its work? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • Who relies on the work of the Panel? • Little assessment on performance but some recent work to improve as this survey demonstrates. Q17. Are meetings effective with a good level of discussion and engagement from all Panel members? While the assessment of this question by respondents shows improvement from the 2023 to the 2025 survey in respect of a small increase in the proportion of Yes corresponding with a decrease in Don’t Know responses, the proportion responding Partially and No has increased. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • Yes, most of the time but in my experience not all members participate and there have been membership changes. • It tends to be the same Elected Members who ask questions. Page 89 of 124
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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. The most recent report was submitted to the Panel in October 2024 (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. The most recent was reported to the Panel in June 2025 (link to file). • An Assessment and Prioritisation Process is in place for Member led scrutiny. This was approved by the Panel in August 2018 and subsequently updated in September 2022 and 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. • A further report in February 2023 combined the previous twofold approach to the scrutiny function of the Panel - which comprises (1) items, functions, or activities requiring scrutiny identified and submitted by Panel members, and (2) the presentation of information and reports aligned to the long-term vision set out in The Plan for North Lanarkshire and its supporting strategic frameworks - into the one composite Scrutiny Work Programme. This composite programme listed all scrutiny related reports scheduled to be presented to the Panel during each cycle of the year; the most recent Q18. Does the Panel engage with a wide range of leaders and managers, including discussion of audit findings, risks, and action plans with the responsible officers? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Q19. Does the Panel make recommendations for the improvement of governance, risk, control, and performance and are these acted on? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • They are generally acted on, but not always in a timely manner - this has been a key area of focus for the Panel. • Risk is now assessed properly using standard tools. We get little information on risk mitigation plans. Q20. Has the Panel evaluated whether and how it is adding value to the organisation? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • Not officially but some members have made suggestions that have improved the effectiveness of the Panel. Q21. Are meetings well chaired, ensuring key agenda items are addressed with a focus on improvement? Q21 is not comparable across the 2023 and 2025 surveys. Page 90 of 124
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report in this respect was submitted to the Panel in February 2025 (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 arising from the self-evaluation exercise in respect of amending the governance arrangements and removing the scope for substitute members to attend Audit and Scrutiny Panel meetings. This was considered important by the Panel in terms 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. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • Meeting procedures are followed but focus on improvement is often not fully dealt with. Q22. Has the committee maintained a non- political approach to discussions throughout? Q22 is not comparable across the 2023 and 2025 surveys. Q23. Do recommendations from the Panel have traction with council officers in leadership roles? Q23 is not comparable across the 2023 and 2025 surveys. Where respondents replied either Partially or No to this question, further information was requested; the responses provided are therefore noted below: • There remains room for improvement in the responses and quality of them in this respect from certain areas. Q24. Is the Panel assured that its scrutiny of council performance adds value to the scrutiny activity which already takes place at Service Committee level and does not duplicate efforts? The assessment of this question by respondents shows improvement from the 2023 to the 2025 survey. Where respondents replied either Partially or No to this question, further information was requested; the Page 91 of 124
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Note, because of the way the software displays the outputs from the survey, and because responses are anonymous, it is not wholly possible to identify what text is referred to when respondents say “see previous answer” or “as above” in response to a qualitative question, therefore this text is not reflected in the above narrative. responses provided are therefore noted below: • How do we know what scrutiny takes place at Service level apart from high level things like risk analysis. Feedback from respondents on the Effectiveness of the Panel in terms of where they think the Panel works well (in line with its approved terms of reference): • A positive team effort. • [The Panel works well] across all areas. • Working positively with council officers • We have seen real tangible improvements from recommendations made by the Panel. • I think the Panel is effective in scrutinising the operations and performance of council services and continues to be an important aspect of the council's credibility as a multi-million-pound organisation. Feedback from respondents on the Effectiveness of the Panel in terms of where they think things could be improved (in line with the Panel’s approved terms of reference): • Turnover has been a problem but that looks to be resolved with those in place at present. • Try and avoid any special meetings and keep to original time and dates in diary. • Identifying issues, working to resolve them. Page 92 of 124
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Appendix 2 Self-evaluation of the Audit and Scrutiny Panel: Good practice questions used in the online survey. Theme Question asked in 2025 survey Comparable with question asked in 2023 Panel Purpose and Governance Q1. Is the role and purpose of the Audit and Scrutiny Panel understood and accepted across the council? Yes Q2. Does the Panel provide support to the council in meeting the requirements of good governance? Yes Q3. Are the arrangements to hold the Panel to account for its performance operating satisfactorily? Yes Q4. Are Members of the Panel committed to training and personal development to update and enhance their knowledge, skills, capacity, and capabilities (where appropriate or required) to deliver Best Value and perform their role on the Panel? Yes Functions of the Panel Q5. Has the Panel maintained its remit as set out in the Terms of Reference in the approved Scheme of Administration? Yes Q6. Are the Panel fulfilling their Terms of Reference and ensuring adequate consideration has been given to all core areas in the Terms of Reference? No * Q7. Where coverage of core areas in the terms of reference has been found to be limited, are plans in place to address this? Yes Q8. Is the Panel’s role clear in relation to ensuring the council can demonstrate Best Value through the existence of robust arrangements for performance reporting and scrutiny? Yes Q9. Do the scrutiny structures in the council support Members in reviewing and challenging performance? Yes Membership and Support Q10. From your own perspective as an individual member of the Panel, do you feel you have appropriate knowledge and skills to sit on the Panel? No * Q11. From the wider Panel perspective and remit, do you consider there is a satisfactory level of knowledge across the membership of the Panel? No * Q12. Do Members of the Panel receive sufficient training and support to perform their role on the Panel? Yes Q13. Is the secretariat and administrative support provided to the Panel adequate? Yes Q14. Does the Panel have good working relations with officers across the council (i.e. internal audit leads, scrutiny and best value leads, and the Chief Financial Officer) and with the external auditors? Yes Q15. Does the Panel have access to clear, timely, and sufficiently detailed information that allows them to carry out their governance and scrutiny role? Yes Effectiveness of the Panel Q16. Has the Panel obtained feedback on its performance from those interacting with the Panel or relying on its work? Yes Q17. Are meetings effective with a good level of discussion and engagement from all Panel members? Yes Page 93 of 124
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Theme Question asked in 2025 survey Comparable with question asked in 2023 Q18. Does the Panel engage with a wide range of leaders and managers, including discussion of audit findings, risks, and action plans with the responsible officers? Yes Q19. Does the Panel make recommendations for the improvement of governance, risk, control, and performance and are these acted on? Yes Q20. Has the Panel evaluated whether and how it is adding value to the organisation? Yes Q21. Are meetings well chaired, ensuring key agenda items are addressed with a focus on improvement? No * Q22. Has the committee maintained a non-political approach to discussions throughout? No * Q23. Do recommendations from the Panel have traction with council officers in leadership roles? No * Q24. Is the Panel assured that its scrutiny of council performance adds value to the scrutiny activity which already takes place at Service Committee level and does not duplicate efforts? Yes No * - The question used in 2025 is not comparable to 2023 as it has either required to be reworded or is new in order to comply with the updated national documents and suggested evaluation framework from CIPFA, i.e. CIPFAs Audit Committees Practical Guidance for Local Authorities document (2022). Page 94 of 124
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Appendix 3 AUDIT AND SCRUTINY PANEL TERMS OF REFERENCE (1) Statement of Purpose 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. (2) Governance, Risk and Control The Audit and Scrutiny Panel’s remit in relation to governance, risk and control is:- • to review the Council’s corporate governance arrangements against relevant good practice guidance and consider annual governance reports and assurances; • 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; • to consider the Council’s arrangements to secure value for money and review assurances and assessments on the effectiveness of these arrangements including in relation to the Council’s ALEOs; • to monitor the effective development and operation of risk management in the Council and its ALEOs, including monitoring progress in addressing risk-related issues reported to the Panel; • to consider reports on the effectiveness of internal controls and monitor the implementation of agreed actions, and • to review the assessment of fraud risks and potential harm to the Council from fraud and corruption by monitoring the Council’s counter-fraud strategy, actions and resources. (3) Internal Audit The Audit and Scrutiny Panel’s remit in relation to Internal Audit is:- • to approve the Internal Audit Charter; • to approve the risk-based Internal Audit Plan, including Internal Audit’s resource requirements; • to approve significant interim changes to the risk-based Internal Audit Plan and resource requirements; • to make appropriate enquiries of both management and the Audit and Risk Manager Page 95 of 124
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to determine if there are any inappropriate scope or resource limitations impacting on the work of Internal Audit; • to consider reports from the Audit and Risk Manager on Internal Audit’s activity and performance during the year. These will include:- - updates on the work of Internal Audit, including key findings, issues of concern and action in hand as a result of Internal Audit work; - regular Internal Audit Progress Reports (including summaries of substantive Internal Audit reports, as requested); - periodic reports on the results of the Quality Assurance and Improvement Programme, and - reports on instances where the internal audit function does not conform to the Public Sector Internal Audit Standards and Local Government Application Note, considering whether the non-conformance is significant enough that it must be included in the Annual Governance Statement; • to consider the Audit and Risk Manager’s Annual Report, including:- - the statement of the level of conformance with the Public Sector Internal Audit Standards and Local Government Application Note and the results of the Quality Assurance and Improvement Programme that supports the statement – these will indicate the reliability of the conclusions of Internal Audit, and - the opinion on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and control, together with the summary of the work supporting the opinion - these will assist the Panel in reviewing the Council’s Annual Governance Statement; • to receive reports outlining the action taken where the Audit and Risk Manager has concluded that management has accepted a level of risk that may be unacceptable to the Council or there are concerns about progress with the implementation of agreed actions; • to contribute to the Quality Assurance and Improvement Programme and in particular, to the external quality assessment of Internal Audit that takes place at least once every five years, and • to support the development of effective communication with the Audit and Risk Manager. (4) External Audit The Audit and Scrutiny Panel’s remit in relation to External Audit is:- • to consider the External Auditor’s Annual Plan and all relevant reports issued to those charged with governance; • to comment on the scope and depth of external audit work and to ensure it gives value for money, and • to advise, and make recommendations as appropriate, on the effectiveness of relationships between External Audit and Internal Audit and other inspection agencies or relevant bodies. (5) Financial Reporting The Audit and Scrutiny Panel’s remit in relation to financial reporting is:- • to review the Annual Statement of Accounts. Specifically, to consider whether Page 96 of 124
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appropriate accounting policies have been followed and whether there are concerns arising from the financial statements, or from the audit, that need to be brought to the attention of the Council, and • to consider the External Auditor’s report to those charged with governance on issues arising from the audit of the accounts. (6) Scrutiny The Audit and Scrutiny Panel’s remit in relation to the challenge and scrutiny function is:- • to review and monitor the performance of the council in delivering upon its priorities, outcomes, programme of work and targets in the Council plan, specifically performance (for example in improving services and outcomes and in demonstrating Best Value); • to review performance to assess whether intended policy outcomes have been achieved; • to consider the Council's performance, improvement, and governance arrangements to ensure that approaches continues to facilitate effective and efficient delivery of planned services and outcomes and the Council's vision, and • to commission independent short life task group reviews (based on evidence), and carry out reviews recommended from service committees, to enable in-depth scrutiny of policy, practices, and performance where the challenge and scrutiny function can make an impact or add value. (7) Accountability Arrangements The Audit and Scrutiny Panel’s remit in relation to accountability arrangements is:- • to report to the Council’s Policy and Strategy Committee on the Panel’s findings, conclusions and recommendations concerning:- - the adequacy and effectiveness of the Council’s governance, risk management and internal control frameworks; - financial reporting arrangements; - internal and external audit arrangements; - the performance of the council in delivering upon its priorities, and - the adequacy and effectiveness of the Council's performance and improvement arrangements. • to report to the Council’s Policy and Strategy Committee on a regular basis on the Panel’s performance in relation to its Terms of Reference and the effectiveness of the Panel in meeting its purpose. Page 97 of 124
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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 28/08/25 Statutory performance reporting requirements From Stephen Penman, Chief Officer (Strategy and Engagement) E-mail PenmanSte@northlan.gov.uk Telephone 07947 997750 Executive Summary Complying with the Accounts Commission’s Direction has been a statutory requirement for the council for over 30 years not only from a transparent public performance reporting perspective, but also from the council fulfilling its duty to secure Best Value to demonstrate improvement in terms of improving the lives of, and services for, local people and ensuring effective use of resources. Evolving over the years to be less prescriptive in detailing the performance information councils should publish, the Direction has to date enabled each council to determine how they meet the statutory requirements through their own approaches and procedures, and in line with their own strategic priorities. This has been a welcome approach in North Lanarkshire Council as it has allowed for flexibility in the implementation of the Direction in a way that best supports The Plan for North Lanarkshire, its delivery through the Programme of Work, and the needs of the organisation. The consistency in approach to the statutory requirements of the Direction over the last ten years has further enabled the council to establish clear and practicable governance foundations that have remained relatively stable in supporting the council’s strategy and ensuring best use of resources. The effectiveness of the council’s governance arrangements can be evidenced through two Internal Audit reviews recently undertaken in 2025 (in respect of corporate governance and the strategic governance arrangements for the Programme of Work) which both received a substantial assurance audit assessment. Following the latest three yearly review, a new Direction has been published for 2025/26 to 2027/28 which places additional requirements on councils. As the council now has well established performance management and reporting arrangements (including Public Performance Reporting), it is not the intention to develop anything new to support the new Direction, or to make any significant changes to existing arrangements. The purpose of this report herewith is therefore as follows: • To raise awareness of the new statutory Direction and its requirements (see Appendix A) with the Audit and Scrutiny Panel in line with the Panel’s terms of reference and purpose “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”. • To integrate key additional requirements from the Direction within the existing non- negotiable Standards for performance management, progress monitoring, and Item 8 Page 99 of 124
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performance reporting to ensure the quality of the right information to the right audience at the right time (see Appendix B). • To present the updated Framework and Schedule which sets out the wide range of performance reporting expected to be carried out by Chief Officers, and corporately, for 2025 to 2026 (see Appendices C and D). 1. Background 1.1 The Accounts Commission’s Statutory Direction was established following the Local Government Act 1992 to direct councils in terms of the “publication of information as to standards of performance” relating to activities and services. 1.2 Initially comprising a very prescriptive suite of performance indicators, the Direction has evolved over the years to be broader and less specific, giving councils more flexibility to develop their own approaches to manage and report on performance in a way that best fits with the delivery of each council’s local priorities, aligns to existing governance arrangements, and makes best use of resources. 1.3 However, in terms of councils fulfilling the requirements of the Direction and demonstrating compliance, several aspects have remained consistent (particularly over the last ten years). These requirements are summarised below: • Making comparisons of performance: (i) Over time (e.g. compared to previous years) so the direction of travel is clear. (ii) With others where data is available and it is appropriate to do so (e.g. other local authorities, or the national average, or other relevant bodies) to support ongoing assessment and continuous improvement. • Reporting a range of information that demonstrates improvement in local services and outcomes for people. • Reporting a range of information that demonstrates Best Value. • Benchmarking - comparing performance using the Local Government Benchmarking Framework (LGBF) indicators (i.e. the Improvement Service Recommendations It is recommended the Audit and Scrutiny Panel: (1) Are aware of the statutory requirements of the Accounts Commission’s Direction for 2025/26 to 2027/28, (2) Note that, where appropriate, the additional requirements from the Direction have been integrated within the existing non-negotiable Standards for performance management, progress monitoring, and performance reporting to minimise the impact on council resources and ensure processes remain aligned and practicable, (3) Note the updated Framework and Schedule which sets out the wide range of performance reporting expected to be carried out by Chief Officers, and corporately, for 2025 to 2026, and which supports the performance assurance review reports submitted to the Panel on a quarterly basis. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 100 of 124
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dashboard https://www.improvementservice.org.uk/benchmarking/explore-the-data). • Ensuring ongoing community engagement and empowerment - evidencing that the council is carrying out community planning for the “improvement in the achievement of outcomes” and, in agreeing outcomes with partners and communities, reporting on how the council has engaged with, responded to, and helped to empower their communities, including those who require greater support. 1.4 A consistent and central requirement to the Direction has also remained that of Public Performance Reporting (PPR). Incorporated into the Direction following the establishment of Best Value through the Local Government in Scotland Act 2003, this requires that councils demonstrate the following in relation to the approach and content for Public Performance Reporting. In terms of the approach to Public Performance Reporting, this requires that the council: The content of Public Performance Reporting should be easy to understand and concise and include: 1. Has clearly identified what information will be provided at a service activity level and which at a corporate level. 2. Derives the information utilised in Public Performance Reporting from its performance management and information arrangements. 3. Considers a range of media and conveys this information in one or a number of ways that make it easy for stakeholders to find out what they want to know. 4. Includes clear guidance as to where and how stakeholders can access more detailed information on specific topics. 5. Presents the information in a clear, easy-to-understand and concise form, taking account of equalities and accessibility issues. 6. Has an accessible feedback process which encourages stakeholders to comment on the information and mechanisms of Public Performance Reporting, and ensures this feedback is reviewed regularly to inform improvement activities. 1. Information on what services the authority provides, what people can expect of them, and how people can get access to them. 2. Information on what the authority has learned from consultation about what matters to its stakeholders and what it is doing to respond to these concerns. 3. Information that shows how the authority is working with other bodies to best meet the needs of its communities through Community Planning. 4. Information that allows the public to see that the authority is spending its money wisely and achieving value for money on behalf of its communities (showing clearly that the authority is eliminating waste, focusing on priorities, achieving value for money, and doing things that work). 5. Information that provides a rounded, honest, and balanced picture of how the authority is performing. 6. Trend information, comparative information, and performance against targets or benchmarks to help stakeholders assess how performance is changing. 7. Information on what the authority is doing to improve its performance and impact, what targets it has for improvement, and what improvements have been achieved since it last reported. Source: The Local Government Act 2003, Best Value Guidance (2004) 1.5 Since 2015 the Direction has moved from an annual publication to one which is reviewed, updated, and issued every three years, with the previous version covering the years from 2022/23 to 2024/25. 1.6 Following engagement during 2024/25 with a range of stakeholders, including Solace, the Accounts Commission subsequently published their new Direction for 2025/26 to 2027/28. This is set out in Appendix A to this report. For the first time Guidance for local authorities has also been produced (by Audit Scotland on behalf of the Accounts Commission) to provide further information and explanation regarding specific aspects of the Direction. Page 101 of 124
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1.7 In developing this latest version of the Direction, reference is made to reviewing evidence about councils’ performance reporting collected through the Best Value audit work with the conclusion made that “We have heard that the Direction continues to be highly valued across local government as a statutory underpinning of existing approaches but also that councils want more clarity about what is expected of them and how to ensure they are complying. For that reason, while it remains generally high- level in nature, we have sought to make the requirements in this new Direction clearer and more specific.” 1.8 As the council now has well established performance management, progress monitoring, and performance reporting arrangements (including Public Performance Reporting), it is not the intention to develop anything new to support the new Direction, or to make any significant changes to existing arrangements. The council’s arrangements in this respect already align to many aspects of the new Direction and therefore a desktop assessment of current arrangements was carried out against the new requirements to identify any areas for improvement and next steps. 1.9 The purpose of this report is therefore to raise awareness of the new statutory Direction and its additional requirements. In doing so the report also sets out the integration of the Direction’s requirements into the existing non-negotiable Standards and processes for performance management, progress monitoring, and performance reporting. As such, an updated reporting Framework and Schedule is also presented for the awareness of the Audit and Scrutiny Panel as this supports the performance assurance review reports submitted to the Panel on a quarterly basis. 2. Statutory Direction for 2025/26 to 2027/28 Direction 2.1 The Foreword to the new Accounts Commission Direction (set out in Appendix A) reports that it takes effect during a critical period for local government and an environment comprising “a combination of ongoing financial constraints, growing demand for services, workforce challenges, and a complex policy landscape” which are “continuing to put councils under extreme pressure, forcing them to make difficult decisions about how services are delivered, including the need for transformation”. 2.2 As such, the Accounts Commission state that within this context “clear, balanced and effective reporting to the public on how well services are performing has never been more important, enabling citizens to understand the reasons behind decisions that can have a significant impact on their lives. The better informed people are, the more they feel able to engage in the decision-making process.” 2.3 The new Direction recognises that each council has its own strategic priorities, determined in accordance with local needs and appropriate data, and the Accounts Commission expect these priorities to guide decisions about use of resources and for the decisions made to impact on performance across a range of areas. As such, how councils plan for, manage, and report on these impacts is noted as a key area of focus in the external auditors’ audit work, particularly on Best Value. 2.4 Information on performance over time and in comparisons to others is considered a crucial tool for continuous improvement and transformation and, as such, the statutory basis set out in paragraphs 1.3 and 1.4 remains unchanged with some specific distinctions made in respect of Public Performance Reporting, where the new Direction states that councils should be able to demonstrate: • How they are working with partners to achieve shared local outcomes. Page 102 of 124
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• How they are responding to the needs of their local communities. • How they are learning from best practice elsewhere. • What factors are impacting on their performance. • How they are using data to inform decision-making. • How they measure success. 2.5 As part of the legislation the Direction has contained a Schedule over the years, and it is this part of the document (in Appendix A) which lists the specific requirements which the council is required to demonstrate compliance with. Non-negotiable standards - Appendix B 2.6 The frameworks supporting The Plan for North Lanarkshire and Programme of Work all comprise the same set of five non-negotiable Standards, which were approved in 2021. For performance management, progress monitoring, and performance reporting, these Standards aim to ensure that these are aligned, consistent, transparent, in context, and balanced. Taking into account the additional requirements from the new Direction, it is proposed that moving forward these are updated as noted below, providing seven Standards to be complied with to support the council in demonstrating compliance with the Direction, as well as the duty of Best Value and the requirements of Public Performance Reporting. • Aligned - to The Plan for North Lanarkshire to give stakeholders an insight into the performance of council activities both in the short-term and against the long-term ambitions. • Consistent - to ensure a standard, easily recognisable, and well-established process across each different audience over time. This aims to help build credibility, reliability, and a common understanding. • Transparent - to allow stakeholders to understand what is being measured, what it means, what level of performance has actually been achieved, and what difference this means in reality for the people and communities of North Lanarkshire. • In context - to avoid the So What? question and provide a coherent narrative to ensure fully informed review, reporting, scrutiny, and decision-making processes. • Balanced - to ensure reporting contains areas in which performance has improved as well as areas where performance has not improvement or has declined. Any supporting narrative in this respect must add value and tell a balanced narrative. The narrative should include reasons for performance levels not in line with targets, standards, or original plans and the remedial action undertaken to address this. • Accessible - to citizens and written in a format and manner that is easily understood by them. This includes making use of summaries to communicate key messages, easy-read versions of reports wherever possible, and technology to display performance information in a variety of formats (while adhering to the statutory requirements in relation to equalities). • Timely - to ensure performance information reported comprises the most up to date data and progress available and there is regular public reporting where the frequency is (where appropriate) determined by data availability or reporting cycles. Data should be reported frequently enough to track progress and/or changes that are taking place in order to take action, and quickly enough for the information to still be relevant and useful in fulfilling the requirements of each audience. Reporting against a particular indicator or set of indicators should include a time series that is appropriate for the particular indicator(s) chosen, typically covering a period of at least three years (where data is available). 2.7 The seven non-negotiable Standards are set out in Appendix B. Page 103 of 124
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Reporting framework - Appendix C 2.8 Initially reported to the Audit and Scrutiny Panel in February 2024, the Framework in Appendix C focuses on the purpose and audience of each item to be reported in line with the various roles and responsibilities of each audience. It focuses on the right information to the right audience at the right time in line with the ethos established through the Strategic Performance Framework at the outset where information captured at each of the three levels is not restricted to being used and reported at that level; information can (and should) be used within and across levels to ensure a full and complete picture of performance is available to inform an assessment (by each particular audience in line with their respective roles and responsibilities) of whether the vision in The Plan for North Lanarkshire is being achieved. 2.9 Appendix C sets out the Framework which has been updated to reflect the reporting requirements in respect of the new Direction, particularly in relation to Public Performance Reporting where it also captures requirements in terms of informing the Public Performance Reporting schedule and communications plan in line with the Communications and Engagement Strategy approved at Policy and Strategy Committee in June 2024. Reporting schedule - Appendix D 2.10 The Schedule in Appendix D lists the specific items to be reported to each audience throughout the year. This includes Chief Officer’s individual performance review reports at service committees and service specific performance reporting which takes place each year to meet both business and/or statutory obligations. This forms the basis for reporting to the Panel as it supports the ongoing performance assurance review reports that have been submitted to the Panel on a quarterly basis since May 2023. 2.11 Original established in 2023 and subsequently updated and reported to the Panel annually thereafter., Appendix D sets out the updated Schedule for 2025 to 2026. Public performance reporting 2.12 Following the Local Government in Scotland Act 2003, the duty to secure Best Value was aligned to the Accounts Commission Direction and the requirements therein. Specific guidance was implemented which has remained in place in respect of the duty of Public Performance Reporting (PPR). This states that in terms of an approach: “Public Performance Reporting should give stakeholders information that allows them to make informed judgements about public services, to contribute to decisions about what standards of service should be pursued, and to challenge performance in the interests of future service improvement. To be productive, PPR has to involve the right information going in the right way to the right people at the right time”. The original requirements in terms of the approach to, and content of, Public Performance Reporting (as noted in paragraphs 1.3 and 1.4) remain unchanged, although the cross over, re-emphasis of specific points, and alignment to Best Value can clearly be seen within the new Direction. 2.13 Over the years the council has published a wide range of products to support Public Performance Reporting and the items listed in Appendices C and D have contributed to this. In addition, following Programme of Work reports to each committee cycle throughout the year, regular news articles and updates on delivery and performance Page 104 of 124
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are reported through the council’s website and various other communication channels (as noted in the annual communications plan evaluation reported to the Policy and Strategy Committee in June 2025). 2.14 As part of the annual external auditors’ audit process, an improvement action in this respect was highlighted in the 2023/24 Annual Audit Report (AAR). This found that “The council does not publish a summary of its performance which is easy for its citizens and communities to determine how well its services are performing and what action is needed to improve service performance”. The associated risk in this respect identified in the AAR was that North Lanarkshire’s citizens and communities cannot determine how the council is performing. To fulfil this audit recommendation, this report herewith sets out the Standards, Framework, and Schedule of performance reporting to be implemented moving forward. 3. Measures of success 3.1 Measures of success include: • Regular oversight and monitoring of performance across the organisation to gain assurances in terms of governance and accountability. • Regular review and challenge processes to scrutinise the performance of the council to ensure effective use of resources and that resources are directed in accordance with agreed policy and according to priorities, while ensuring sound decision making and clear accountability for the use of resources in achieving improved outcomes for service users and the local community. • Performance monitoring, management, and reporting arrangements that support the demonstration of improved performance in local services and outcomes, and the delivery of Best Value. 4. Supporting documentation 4.1 Appendix A - Accounts Commission Statutory Performance Information Direction 2024 (for 2025/26 to 2027/28). Appendix B - Standards: for performance management, progress monitoring, and performance reporting to ensure the quality of the right information to the right audience at the right time. Appendix C - Framework: for performance management, progress monitoring, and performance reporting. Appendix D - Schedule: for performance reporting and progress monitoring 2025 to 2026. 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? Page 105 of 124
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If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Local Government Act 1992 established the role of the Statutory Direction to direct the “publication of information as to standards of performance”. The Local Government in Scotland Act 2003 introduced the duty of Best Value; this requires that councils “make arrangements to secure continuous improvement in performance”. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ Page 106 of 124
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5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? As noted in paragraphs 2.9 and 2.13 public performance reporting will be carried out in line with the council’s Communication and Engagement Strategy (2024) and the annual Communications Plan Evaluation. 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? Continued implementation of the reporting Standards, Framework, and Schedule, set out in this report will facilitate effective review and scrutiny processes and therefore contribute to the mitigation of the risks 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 107 of 124
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Accounts Commission Statutory Performance Information Direction 2024 Foreword by the Chair of the Accounts Commission I am pleased to present this latest version of the Accounts Commission’s Statutory Performance Information (SPI) Direction, which takes effect during a critical period for local government. A combination of ongoing financial constraints, growing demand for services, workforce challenges and a complex policy landscape is continuing to put councils under extreme pressure, forcing them to make difficult decisions about how services are delivered, including the need for transformation. In this context, clear, balanced and effective reporting to the public on how well services are performing has never been more important, enabling citizens to understand the reasons behind decisions that can have a significant impact on their lives. The better informed people are, the more they feel able to engage in the decision-making process. The Commission has a statutory duty to direct councils to publish information that will: • enable comparisons of performance between councils and over time, and • show how well they are improving local outcomes with community planning partners in their area. Complying with the SPI Direction is fundamental to councils fulfilling their duty to secure best value – a duty that focuses on improving lives and services for local people alongside using resources effectively. The Direction reinforces the importance of councils being transparent through reporting to their local communities on how well they are meeting this duty. Rather than prescribing in detail the information councils should publish, we remain fully supportive of a sector-led approach to benchmarking and improvement. Developed for and with councils, indicators from the Local Government Benchmarking Framework (LGBF) should be used, as this is the most effective and comprehensive means of enabling comparisons to be drawn by councils themselves and by the public. Appendix A Page 108 of 124
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Accounts Commission Statutory Performance Information Direction 2024 | 2 We recognise that each council has its own strategic priorities, determined in accordance with local needs and appropriate data, and we expect these priorities to guide decisions about use of resources. We understand that the choices made by councils will impact on performance across a range of areas. How councils plan for, manage and report on these impacts is a key area of focus in our audit work, particularly on best value. Information on performance over time and in comparisons to others is a crucial tool for continuous improvement and transformation. Through their public performance reporting, councils should be able to demonstrate: • how they are working with partners to achieve shared local outcomes, • how they are responding to the needs of their local communities, • how they are learning from best practice elsewhere, • what factors are impacting on their performance • how they are using data to inform decision-making, and • how they measure success. Councils being clear and transparent in this way will help communities to understand the reasons for changes in the delivery and performance of local services. In developing this version of the SPI Direction, we have consulted a range of stakeholders and reviewed evidence about councils’ performance reporting collected through our best value audit work. We have heard that the Direction continues to be highly valued across local government as a statutory underpinning of existing approaches but also that councils want more clarity about what is expected of them and how to ensure they are complying. For that reason, while it remains generally high-level in nature, we have sought to make the requirements in this new Direction clearer and more specific. I hope these revisions are helpful. We will review how this Direction operates in practice no later than the third year in which it applies, and we would welcome any feedback either as part of this review process or via our audit colleagues. Jo Armstrong Chair, Accounts Commission December 2024 Page 109 of 124
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Accounts Commission Statutory Performance Information Direction 2024 | 3 Local Government Act 1992: The Publication of Information (Standards of Performance) Direction 2024 1. This Direction is given by the Accounts Commission for Scotland (“the Commission”) under section 1(1)(a) of the Local Government Act 1992, which requires the Commission to direct relevant bodies to publish such information relating to their activities in any financial year or other specified period as will, in the Commission’s opinion: “facilitate the making of appropriate comparisons (by reference to the criteria of cost, economy, efficiency and effectiveness and of securing best value in accordance with section 1 of the Local Government in Scotland Act 2003) between – i) the standards of performance achieved by different relevant bodies in that financial year or other period; and ii) the standards of performance achieved by such bodies in different financial years or, as the case may be, other periods.” 2. Such information is also to facilitate the drawing of conclusions about the discharge of those bodies' functions under the Community Empowerment (Scotland) Act 2015 (in essence, carrying out community planning for the “improvement in the achievement of outcomes”). 3. This Direction is given to all local authorities, as defined by the Local Government (Scotland) Act 1973, and amended by the Local Government etc. (Scotland) Act 1994. 4. Each local authority shall, in accordance with section 13 of the Local Government in Scotland Act 2003 and associated regulations and guidance from Scottish Ministers, publish the information specified in the Schedule to this Direction for all activities which are carried out by the body. 5. The periods for which the information in the Schedule must be published are the financial years beginning 1st April 2025, 2026 and 2027. 6. Local appointed auditors will assess the adequacy of councils’ arrangements for meeting the requirements set out in the Schedule to this Direction as part of their annual audit work. 7. Audit findings from this work will be used to inform the Controller of Audit’s reporting to the Commission on the extent to which individual local authorities are meeting their duty to secure best value – in particular, their obligations in relation to use of resources, continuous improvement and public performance reporting. Page 110 of 124
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Accounts Commission Statutory Performance Information Direction 2024 | 4 Schedule 1. Each council will report information about its performance in a way that enables that council, other councils, the Accounts Commission, local residents and communities, and any other interested parties to draw comparisons and make judgements in relation to: i) that council’s performance over time, and ii) the performance of different councils in a given period of time. 2. For the purposes of (i) above, reporting against a particular indicator or set of indicators should include a time series that is appropriate for the particular indicator/s chosen, typically covering a period of at least three years but taking account of: • internal factors such as council plans and other strategic or budget decisions, and • external factors such as national policy changes and any extraordinary events. 3. For the purposes of (ii) above, councils should ensure: • comparisons are made against councils that are similar in relevant respects, such as budget size, urban/rural classification, and demographic or socioeconomic characteristics, and • their choice of indicators – including whether they have adopted LGBF or other indicators or a combination – and their performance data are robust, consistent and comparable, and complemented by narrative context where appropriate. 4. The Commission expects councils to maximise the use of the Local Government Benchmarking Framework (LGBF) as a primary means of facilitating comparisons, alongside or in conjunction with other locally appropriate measures of performance. Councils should be transparent as to why specific measures have been chosen for local benchmarking and performance reporting purposes, particularly where they have chosen not to use LGBF indicators. 5. In satisfying the requirements set out in this Schedule, the Commission requires each council to ensure that its reporting meets the following three criteria: • Balanced, in respect of areas in which performance has improved and those in which it has not improved or has declined. It is important to avoid reporting in a way that is, or could reasonably be perceived as being, selective, misleading or biased. • Timely, in the interests of transparency and to enable the council to respond promptly where remedial action is required. It should be possible for councils to publish an annual performance report Page 111 of 124
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Accounts Commission Statutory Performance Information Direction 2024 | 5 within nine months – and no later than twelve months – after the end of the respective year. In addition, councils should be updating and reviewing information on their performance on a quarterly basis (or otherwise as determined by data availability or reporting cycles), and where possible making that information publicly available. • Accessible, and able to be easily understood by all citizens. For example, councils should publish summaries to communicate key messages, produce easy-read versions of reports wherever possible, and make appropriate use of technology to display performance information in a variety of formats whilst adhering to statutory requirements in relation to equalities. 6. Councils’ performance information reporting shall cover the four key areas set out in the remainder of this document. In meeting these requirements, councils should take cognisance of current statutory guidance on Best Value. 1: Using resources effectively to address strategic priorities 7. Councils’ performance reporting should highlight the impact of activities that are relevant to the priorities and objectives articulated in their council plan (or equivalent). This includes indicators specified in a performance management framework, and any other information or activity that is relevant to addressing the council’s priorities or fulfilling its statutory duties. 8. Councils should identify key indicators and set targets against which their performance in addressing their priorities and achieving their objectives can be measured, and report on their progress towards reaching those targets. 9. In doing so, councils should be able to demonstrate how the priorities they have set are driving decision-making about their use of resources and in turn how those decisions are impacting on performance in different areas – over time and relative to other councils. 10. Where performance information shows that a council is not on track to achieve a particular target or objective, the council should explain the factors that have contributed to this, and what actions it is taking to respond and improve its performance in that area, including an expected timeframe for that improvement. 2: Working with partners and communities to achieve shared outcomes 11. Recognising the statutory role of councils in relation to community planning, councils’ performance reporting should show how they and their community planning partners are working together to address the Page 112 of 124
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Accounts Commission Statutory Performance Information Direction 2024 | 6 priorities, targets and actions set out in their local outcomes improvement plans (LOIPs) and locality plans. 12. Aligning their performance reporting with these plans should show how council actions are contributing to the delivery of locally agreed shared outcomes. 13. Where a target is not on track to be met, the council should explain any factors that may have contributed to this, and what actions are being taken by the council and/or its partners to improve performance in that area, including an expected timeframe for that improvement. 3: Financial sustainability and budget transparency 14. It is vital for elected members and local communities to be able to understand their council’s overall financial position and the choices it must consider when setting a budget, and the subsequent impact of the decisions the council makes. 15. Councils should publish information pertaining to relevant indicators – particularly those in the LGBF – that enables comparative assessment of key aspects of their current and future financial position. 16. Councils should also be able to provide information requested by the Commission to inform its reporting on councils’ financial sustainability. 4: Use of data and assessments to support improvement and transformation 17. Councils should be able to demonstrate how they are assessing and interpreting data about their performance, and using that analysis to inform decision-making about their use of resources and any required transformation of service delivery. 18. Councils should carry out self-assessments, and make use of third- party feedback mechanisms and opportunities to learn from others (such as peer collaborative improvement), to evaluate their own performance over time and relative to other councils, and identify factors contributing to that performance as well as opportunities for improvement. 19. Councils should also show how they are using and responding to the findings and recommendations arising from any self-assessment work, audit assessments, reviews undertaken by other scrutiny or inspection bodies, and engagement with service users, to drive continuous improvement in the context of resource constraints – as part of their duty to secure best value. Page 113 of 124
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Appendix B Standards: for performance management, progress monitoring, and performance reporting to ensure the quality of the right information to the right audience at the right time. Previously reviewed by the Audit and Scrutiny Panel in February 2024, and subsequently updated to reflect the Accounts Commission Direction as at August 2025. Approach In order to support the council in demonstrating compliance with the Statutory Direction, as well as aspects of the duty of Best Value and the requirements of Public Performance Reporting, the following seven non-negotiable standards must be adhered to ensure that performance reporting (including Public Performance Reporting) and progress monitoring is: • Aligned - to The Plan for North Lanarkshire to give stakeholders an insight into the performance of council activities both in the short-term and against the long-term ambitions. • Consistent - to ensure a standard, easily recognisable, and well-established process across each different audience over time. This aims to help build credibility, reliability, and a common understanding. • Transparent - to allow stakeholders to understand what is being measured, what it means, what level of performance has actually been achieved, and what difference this means in reality for the people and communities of North Lanarkshire. • In context - to avoid the So What? question and provide a coherent narrative to ensure fully informed review, reporting, scrutiny, and decision-making processes. • Balanced - to ensure reporting contains areas in which performance has improved as well as areas where performance has not improvement or has declined. Any supporting narrative in this respect must add value and tell a balanced narrative. The narrative should include reasons for performance levels not in line with targets, standards, or original plans and the remedial action undertaken to address this. • Accessible - to citizens and written in a format and manner that is easily understood by them. This includes making use of summaries to communicate key messages, easy-read versions of reports wherever possible, and technology to display performance information in a variety of formats (while adhering to the statutory requirements in relation to equalities). • Timely - to ensure performance information reported comprises the most up to date data and progress available and there is regular public reporting where the frequency is (where appropriate) determined by data availability or reporting cycles. Data should be reported frequently enough to track progress and/or changes that are taking place in order to take action, and quickly enough for the information to still be relevant and useful in fulfilling the requirements of each audience. Reporting against a particular indicator or set of indicators should include a time series that is appropriate for the particular indicator(s) chosen, typically covering a period of at least three years (where data is available). Content - performance In practice this means that the content of all performance reports must contain the following sections which require to be completed in line with the requirements of the seven non-negotiable Standards. This recognises that service specific performance reports which are required to meet business and/or statutory obligations may also carry their own approaches, standards, or formats which require to be adhered to. Current context • This section should highlight the current context within which the service, project, programme, programme of work is operating, e.g. environment within which the service is operating (locally and/or nationally), service pressures, national policy changes impacting on local resources and/or delivery, any remaining pandemic impacts, etc. • This section is pre-defined when the corporate template is used. When the corporate template is not used (i.e. for service specific performance reporting required to meet business and/or statutory obligations), the following should be included to help make the information reported easy to digest for the audience: - A high-level summary section in the covering report and also in the document itself if it is to stand alone for future public or other external reporting purposes. - Through this high-level summary, the reader should be able to make an assessment as to the level of performance achieved, i.e. is performance good or bad, improving or getting worse, etc - This high-level summary must include the purpose of the report and the period covered by the report, with any caveats on the data, or time lags. Recent performance highlights • This section should highlight areas of good performance. This should be able to be clearly evidenced in the accompanying data and evidence comparisons in performance (a) over time and (b) against other local authorities or the national average (where available and appropriate). In this respect reporting against a particular indicator or set of indicators should include a time series that is appropriate for the particular indicator(s) chosen, typically covering a period of at least three years but taking account of internal factors such as council plans and other strategic or budget decisions, and external factors such as national policy changes and any extraordinary events. • The high-level summary must include a short, summarised list of key performance highlights identifying the main areas of good performance. In doing so it must be clear what makes this good performance, e.g. to what are any comparisons being made, i.e. over time (from year to year), or (b) with others (where available), or both, or (c) to something else. Areas of performance requiring improvement • This section should summarise any performance indicators which show a Red RAG status and/or where the level of performance achieved is considered will have a significant impact on the successful delivery of the Programme of Work and The Plan for North Lanarkshire. • Narrative should be included that provides an explanation for the level of performance achieved and summarises the remedial action implemented (or to be implemented) to bring performance back on track. • The next report in the cycle should ensure monitoring of these remedial actions and reflect on whether the remedial action has been successful in terms of improving performance. • Text in current and subsequent reports must demonstrate that the loop has been closed in terms of implementation and monitoring of both improvement actions and subsequent performance levels. This is required to provide a clear evidence trail that demonstrates continuous improvement in performance in line with the requirements of Best Value. • The narrative in this section should be able to be clearly evidenced in the accompanying data. Content - progress monitoring In practice this means that the content of all Programme of Work reports must contain information that provides an update in respect of the following. Risk • Are there any issues in terms of the risks associated with what is being delivered? If so, please summarise the issue(s) and the action(s) that have been taken to mitigate against the risk(s). Note, in the committee report template this can be done in the impacts section. Scope • Is delivery in line with the scope or has it been impacted by scope creep or other significant changes? If not, please outline why not and advise what remedial action has been put in place. Quality • Is the quality of what is being delivered in line with agreed standards? If not, please outline why not and advise what remedial action has been put in place. Time / Schedule • Is actual or forecasted delivery of the project in line with expected timescales, or ahead of schedule? If not, please outline why not and advise what remedial action has been put in place. Resources • Is delivery being achieved, or available to be achieved, within existing resources? If not, please outline why not and advise what remedial action has been put in place. Cost / Budget • Is delivery being achieved within approved budget and/or contract value - this relates to both capital and non-capital areas of activity? If not, please outline why not and advise what remedial action has been put in place. Note, in the committee report template this can be done in the impacts section. % completion • Is actual or forecasted delivery being achieved within expected timescales, or ahead of schedule? If not, please outline why not and advise what remedial action has been put in place. RAG • Can a RAG status be applied to the project / activity (where appropriate and meaningful to do so) to demonstrate progress being made in delivery? If so, the standard adopted by the Programme of Work Delivery Plan should be adopted and the latest status included in the report, i.e. Benefits • Can progress in terms of releasing the expected benefits and/or achieving the outcomes originally intended from the piece of work be identified? If so, the benefits to date should be reflected in the report. project or activity is complete green amber red project or activity is not yet due to start Page 114 of 124
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Appendix C Framework: for performance management, progress monitoring, and performance reporting Originally reviewed by the Audit and Scrutiny Panel in February 2024, and subsequently updated to reflect the Accounts Commission Direction as at August 2025. Reporting requirements at a service and corporate level with purpose and role of audience, where appropriate Standard template to be used Frequency Responsibility Audience(s) Committee reporting cycle Service 1. Performance reviews of Chief Officer portfolios (in line with the Strategic Performance Framework) to service committees in order to support Elected Members “to monitor the performance of all services” within the committee’s remit. ✓ Committee report template, with standardised paragraphs to be completed Six monthly reports (or as appropriate where only annual indicators are in place). All Chief Officers. Service Committees (following SMT review) Across all cycles throughout the year. 2. Performance reviews of service specific performance reports which are required to meet business / statutory obligations to service committees in order to support Elected Members “to monitor the performance of all services” within the committee’s remit (and meet external statutory reporting requirements). Annual report, or as appropriate for each specific report. All Chief Officers. Service Committees (following SMT review) See Reporting Schedule in Appendix D. 3. Programme and performance monitoring - for 7 x Programme of Work priorities. ✓ Standard committee report template As per Programme of Work reporting schedule agreed through each Programme of Work Board. Chief Officers / Senior Responsible Officer for each Programme of Work Board. Service Committees (following Programme of Work Board and/or CMT / SMT review) Across all cycles throughout the year. 4. Service / operational Public Performance Reporting - key highlights from each cycle’s suite of reports. Each cycle. All Chief Officers to publish - and/or identify to Strategic Communications - the key highlights and impacts from their reports each cycle to support Public Performance Reporting. Public. Across all cycles throughout the year. Corporate 5. Performance review of the latest results for the 28 Health Check Indicators. n/a - Annual deep dive. - Six monthly interim review of new data published. Chief Executive. Policy and Strategy Committee (following CMT review) / public reporting. Cycles 1 and 3. 6. Programme and performance monitoring - for the single Integrated council Programme of Work. n/a - Annual looking backwards / looking forwards report. - Interim achievements / Programme of work progress report. Chief Executive. Policy and Strategy Committee (following CMT review). Cycles 1 and 3. 7. Performance assurance review in line with role of the BMT “to maintain oversight and monitoring of performance reporting across the organisation to gain assurances in terms of governance and accountability”. n/a Quarterly BMT agenda lists all performance reports submitted to committee in the previous quarter along with hyperlinks for ongoing oversight and monitoring. Chief Officer (Strategy and Engagement). BMT. BMT review of existing / already reported items on a quarterly basis. 8. Audit and Scrutiny Panel assurance review of performance and progress (in line with the Strategic Performance Framework and Programme of Work) and the responsibilities of the Panel “to review and monitor the performance of the council in delivering upon its priorities, outcomes, programme of work, and targets in the council plan, specifically performance in improving local services and outcomes and in demonstrating Best Value”. Corporate Management Team review of performance and progress (in line with the Strategic Performance Framework and Programme of Work) and the responsibilities of the CMT “to maintain strategic oversight and monitoring of the Programme of Work, and its supporting programmes, projects, strategies, policies, and plans in so far as they relate to delivery of The Plan for North Lanarkshire”, and “to scrutinise the performance of the council and individual service groupings to ensure effective use of resources, ✓ Standardised templates tailored for each audience - Quarterly report which summarises the contents and key points from the reports already submitted in items 1 and 2 above (aligned to the non-negotiable standards). - Quarterly Programme of Work monitoring report which combines progress already reported to each of the six Programme of Work Strategic Boards into the one composite Programme of Work report for CMT oversight. Chief Officer (Strategy and Engagement). • Audit and Scrutiny Panel (following CMT oversight in advance of being submitted to the Panel). • Composite report to CMT providing oversight of progress in delivering the overall Programme of Work. Across all cycles throughout the year. Page 115 of 124
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Reporting requirements at a service and corporate level with purpose and role of audience, where appropriate Standard template to be used Frequency Responsibility Audience(s) Committee reporting cycle continuous improvement, and ongoing delivery of The Plan for North Lanarkshire”. 9. Corporate Public Performance Reporting - key highlights from each cycle’s suite of reports. Each cycle. All Chief Officers to publish - and/or identify to Strategic Communications - the key highlights and impacts from their reports each cycle to support Public Performance Reporting. Public. Across all cycles throughout the year. 10. Annual public performance report in line the council’s Communication and Engagement Strategy (2024) and the annual Communications Plan Evaluation. Annually within nine months - and no later than twelve months - after the end of the respective year in order to meet the requirements of the Direction. Chief Officer (Strategy and Engagement). Public. Cycle 4. ✓ Items are required to use the standardised corporate templates (identified above) and adhere to the Standards in Appendix B. Items are required to follow the Standards set out in Appendix B. Page 116 of 124
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Appendix D Schedule: for performance reporting and progress monitoring 2025 to 2026 (Note, this is an indicative schedule prepared as at August 2025; matters arising throughout the year may impact on final reporting dates.) Originally established in 2023 and subsequently updated and reported to the Audit and Scrutiny Panel annually thereafter. Performance report Committee meeting dates Chief Officer responsible Committee Latest version submitted to Committee Cycle 2 Apr - Jun 2025 Cycle 3 Aug - Sept 2025 Cycle 4 Oct - Dec 2025 Cycle 1 Jan - Mar 2026 Cycle 2 Apr- Jun 2026 Scottish Housing Regulator: annual landlord report This report presents the annual landlord report published by the Scottish Housing Regulator (SHR) which shows Scotland’s social landlords’ performance for both Local Authorities and Registered Social Landlords (RSL’s) against the Scottish Social Housing Charter (SSHC). 5 Nov 2025 Chief Officer (Housing) Housing Committee 06-11-24 Scottish Housing Regulator: 2023/24 Landlord Report link to report Scottish Housing Regulator: Annual Assurance Statement Since April 2019, Social Landlords in Scotland are required to advise the Scottish Housing Regulator (SHR) if they meet the regulatory standards and requirements by submitting an Annual Assurance Statement between April and October each year. Each landlord should confirm in its Statement its level of compliance with all the relevant requirements at section 3 of the Regulatory Framework. The SHR assesses each Statement as part of their regulatory risk assessment and publishes an engagement plan for each landlord. From March 2021, RSL engagement plans include a regulatory status which is the SHR judgement on whether the RSL complies with regulatory standards and requirements. 27 Aug 2025 Chief Officer (Housing) Housing Committee 28-08-24 Scottish Housing Regulator: 2023/24 Annual Assurance Statement link to report Annual housing / Scottish Social Housing Charter performance report The annual performance report to tenants is designed to keep tenants, service users, and other customers informed of council performance and how the council is progressing towards meeting the outcomes of the Scottish Social Housing Charter (SSHC). X Chief Officer (Housing) n/a, published on the council’s website each year 24-10-24 Housing annual performance report 2023/24 https://www.northlanarkshire.gov.uk/housi ng/housing-annual-performance- report/housing-annual-performance- report-20232024 Community safety hub performance Following its merger into Housing Management, an annual report on the performance of the community safety hub has been incorporated into the service’s programme of annual service performance reports. The Plan for North Lanarkshire aims to make North Lanarkshire a better place to live, learn, work, invest, and visit, where homes and public spaces are safe - and feel safe - for everyone. The work of the community safety hub plays a key role in this respect by improving community safety through CCTV, tackling anti-social behaviour, and ensuring public protection. 5 Nov 2025 Chief Officer (Housing) Housing Committee 28-08-24 Community safety hub performance and development link to report Homeless progress and performance This report provides an update in terms of performance in relation to the provision of homelessness services and homelessness related plans and progress made in delivering such. The report also sets out the current homelessness context and latest statistics in relation to North Lanarkshire and within the wider national context. 5 Nov 2025 Chief Officer (Housing) Housing Committee 06-11-24 Rapid Rehousing Transition Plan annual progress update, homelessness overview, and prevention plan link to report Planning and place performance report The Planning (Scotland) Act 2019 introduced statutory reporting of the performance of Planning Authorities. This report seeks to inform the committee of the feedback from the National Planning Improvement Co-ordinator on the outcome of the submission of the Planning and Place Service as part of the new National Planning Improvement Process and to update on the performance of the service against key performance indicators. The report also sets out the improvement actions that the service has identified to focus on in the coming period. 20 Nov 2025 Chief Officer (Place) Planning Committee 05-12-24 Planning and place performance report 2023/24 link to report Business regulation service plan All local authority regulators of food law and occupational health and safety law must plan their enforcement and advisory activities and, in accordance with independent 20 Aug 2025 Chief Officer (Community Operations) Environment and Climate Change Committee 21-08-24 Business Regulation Service Plan 2024- 25 Page 117 of 124
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Performance report Committee meeting dates Chief Officer responsible Committee Latest version submitted to Committee Cycle 2 Apr - Jun 2025 Cycle 3 Aug - Sept 2025 Cycle 4 Oct - Dec 2025 Cycle 1 Jan - Mar 2026 Cycle 2 Apr- Jun 2026 auditor preference, present that plan before a relevant committee for its approval. This includes a summary of the service plan for the council’s Business Regulation Service (and latest performance achievements) to fulfil obligations in respect of food law and health and safety law. link to report Annual Building Standards performance There is a statutory requirement to produce and publish on the council website an Annual Building Standards Verification Performance Report. The report includes a broad range of performance and service improvement information, and it looks back at the previous 12 months, as well as looking forward to the next period. X Chief Officer (Community Operations) n/a, published on the council’s website each year Building Standards annual verification performance report 2024/25 https://www.northlanarkshire.gov.uk/plann ing-and-building/building- standards/building-performance Scottish Road Works Commissioner annual road works performance review The Scottish Road Works Commissioner oversees improvements to the planning, co-ordination, and quality of road works by both local authorities and statutory undertakers in Scotland. The council has a statutory duty under section 118(1) of the New Roads and Street Works Act 1991, to co-ordinate the execution of works of all kinds in roads for which they are responsible: (a) In the interests of safety. (b) To minimise inconvenience to persons using the road. (c) To protect the structure of the road and integrity of apparatus in it. This report will present details of the Scottish Road Works Commissioner’s annual performance review in terms of how well the council is meeting its statutory obligations. 20 Aug 2025 Chief Officer (Community Operations) Environment and Climate Change Committee 21-08-24 Annual report on the performance of North Lanarkshire Council from the Scottish Roadworks Commissioner link to report Annual Standards and Quality report This annual report serves three purposes: (i) To provide all stakeholders and the public with the performance information across the six National Improvement Framework (NIF) drivers and against improvement priorities to measure performance in improving educational outcomes for young people. (ii) To meet the statutory requirement under the Standards in Schools etc. Act 2000 (as amended by the Education (Scotland) Act 2016). (iii) To provide the information required to contribute to the Scottish Government’s annual report on the six NIF drivers for improvement. 9 Sept 2025 Chief Officer (Education) Education, Children and Families Committee 19-11-24 Standards and quality report session 2023/24 link to report Strategic Equity Fund This report updates on progress made in the Attainment Challenge and future plans nationally in this respect given that current national plans for the Scottish Attainment Challenge run from 2022/23 to 2025/26. Future plans outline a reconfigured model through which all local authorities would benefit from a new funding model, referred to as Scottish Equity Fund (SEF). 20 May 2025 26 May 2026 Chief Officer (Education) Education, Children and Families Committee 20-05-25 Proposed Strategic Equity Fund operating model link to report Performance update This report provides an update on North Lanarkshire’s performance for the most recent school session across key measures including attainment within the broad general education (from early learning and childcare to end of S3) measured via Achievement of a Level (ACEL) data, attendance and exclusion, teacher numbers and Pupil Teacher Ratio (PTR). The report also includes local authority comparison data compiled from national statistics. 3 Mar 2026 Chief Officer (Education) Education, Children and Families Committee 25-02-25 Performance update link to report Annual Report of the Chief Social Work Officer The Chief Social Work Officer (CSWO) of each local authority is required to provide an annual report and a standard template for this purpose is issued by the office of the Chief Social Work Advisor to the Scottish Government. The North Lanarkshire CSWO report provides information on the delivery of statutory functions, and performance and improvement activity across the range of social work services over the last year. 18 Nov 2025 --- 11 Nov 2025 Chief Social Work Officer Education, Children and Families Committee --- Adult Care and Social Work Committee Annual Report of the Chief Social Work Officer 2023/24 19-11-24 Education and Families Committee: link to report 12-11-24 Adult Care and Social Work Committee Page 118 of 124
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Performance report Committee meeting dates Chief Officer responsible Committee Latest version submitted to Committee Cycle 2 Apr - Jun 2025 Cycle 3 Aug - Sept 2025 Cycle 4 Oct - Dec 2025 Cycle 1 Jan - Mar 2026 Cycle 2 Apr- Jun 2026 link to report Adult Support and Protection This reports on the work carried out by social work services within Health and Social Care North Lanarkshire, in respect of the council’s statutory duties set out in the Adult Support and Protection (Scotland) Act 2007. The Adult Support and Protection (Scotland) Act 2007 set up multi-agency Adult Protection Committees (APCs) in every council area. The committee monitors and reviews what is happening locally to safeguard adults. It is made up of senior staff from many of the agencies involved in protecting adults who may be at risk. These include staff from the council, the NHS and the police. APCs are chaired by independent convenors, who cannot be members or officers of the council. APCs have a central role to play in taking an overview of adult protection activity in each council area and making recommendations to ensure that adult protection activity is effective. Adult Protection Committees are required to submit a report to Scottish Ministers every two years. Chief Officer (Adult Social Work Services) / Chief Social Work Officer Adult Care and Social Work Committee 21-02-23 Adult Support and Protection - Social Work annual report 2021/22 and Adult Protection Committee biennial report 2020-22 link to report An update in terms of adult support and protection is also included in the 2023/24 Annual Report of the Chief Social Work Officer. Community payback order annual report Section 227ZM of the Criminal (Procedure) Scotland Act 1995 places a duty on local authorities to prepare an annual report outlining the operation of Community Payback Orders (CPOs). Annual reports require to be submitted both to Scottish Government and Community Justice Scotland. This report summarises activity undertaken in relation to the supervision of CPOs in North Lanarkshire over the past year, the ongoing development of the service, and the progress secured against agreed targets. 18 Nov 2025 Chief Social Work Officer Education, Children and Families Committee 19-11-24 Annual report - Community Payback 2023/24 link to report Local child poverty action report The Child Poverty (Scotland) Act 2017 places a duty on local authorities and NHS Boards to jointly develop and publish an annual Local Child Poverty Action Plan. The Child Poverty Action Report covers previous year activities and outlines future plans, in line with the statutory requirements and aligned to the Plan for North Lanarkshire. 31 Oct 2025 Chief Social Work Officer Wellbeing and Tackling Poverty Strategy 28-09-23 Tackling Poverty Strategy and Local Child Poverty Action Report for North Lanarkshire link to report Tackling poverty team annual report This report provides details of the income maximisation work carried out by the council during the year and the additional benefit income for the residents of North Lanarkshire. It highlights the activity of the external services commissioned by the council under the commissioning model which started in 2018. The report also focuses on key area of income from welfare benefits and the continued programme of welfare reform and its impact, including the introduction of benefits devolved and provided through Social Security Scotland as well as the future challenges which the council, partners, and local communities are predicted to face. 15 Aug 2025 Chief Social Work Officer Wellbeing and Tackling Poverty Committee 16-08-24 Tackling poverty team report 2023/24 link to report Community learning and development This report provides an overview of performance in relation to community learning and development activity during the latest year. This includes both universal and targeted work with an emphasis on engagement with vulnerable people living in the lowest 20% data zones and other vulnerable groups as reflected within the revised national self-evaluation framework for community learning and development. 9 Sept 2025 Chief Social Work Officer Education, Children, and Families Committee 10-09-24 Report on progress in relation to community learning and development activity link to report Active and Creative Communities This report provides an overview of usage of a range of sports, culture, and leisure venues comparing quarterly figures from one year to the next. 27 Oct 2025 9 Feb 2026 27 Apr 2026 Chief Officer (Community Operations) Communities Committee 03-02-25 Active and Creative Communities and community facility usage and footfall link to report Absence statistics Chief Officer JCC for Local 19-03-24 Page 119 of 124
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Performance report Committee meeting dates Chief Officer responsible Committee Latest version submitted to Committee Cycle 2 Apr - Jun 2025 Cycle 3 Aug - Sept 2025 Cycle 4 Oct - Dec 2025 Cycle 1 Jan - Mar 2026 Cycle 2 Apr- Jun 2026 This reports on the latest absence statistics (including teachers and local government employees) for the average full-time equivalent (FTE) days lost per employee due to sickness absence. (People Resources) Government Employees Absence report - quarter 1 and June 2023 link to report 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). This report aims to fulfil this requirement. Chief Officer (People Resources) Wellbeing and Tackling Poverty Committee 25-04-25 Public Sector Equalities Duty - composite report link to report Freedom of Information annual report This report provides an update of the number of Freedom of Information (FOI) and Environmental Information Requests (EIR) received by the council during the previous financial year and those completed by the statutory deadlines as well as the number of internal reviews and appeals to the Scottish Information Commissioner processed. 19 Nov 2025 Chief Officer (Legal and Democratic) Finance and Resources Committee 26-02-25 Annual Freedom of Information report 2023/24 link to report Registration service performance This report provides an update on the performance of the registration service, for the latest calendar year. The performance of the Registration Service provided is monitored annually by the District Examiners from National Records of Scotland (NRS). Note, production of this report relies on the timely receipt of the respective performance data from the NRS. 10 Sept 2025 Chief Officer (Legal and Democratic) Finance and Resources Committee 24-05-24 Registration performance report for 2021 and 2022 link to report Annual data protection report This reports on the council’s data protection compliance and activity for the latest financial year in line with the General Data Protection Regulation (GDPR) and the Data Protection Act 2018 (DPA) which came into force on 25 May 2018. The report is from the council’s Data Protection Officer (DPO) and provides an update, following the introduction of the legislation, in relation to data sharing, breaches, complaints, and training. 19 Nov 2025 Chief Officer (Legal and Democratic) Finance and Resources Committee 11-09-24 Annual Data Protection report for financial year 2023/24 link to report Senior Information Risk Owner (SIRO) annual report 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. It sits alongside the data protection annual report by the council’s Data Protection Officer (DPO). 19 Nov 2025 Chief Officer (Legal and Democratic) Finance and Resources Committee 26-02-25 Senior Information Risk Owner (SIRO) - information governance - assurance and performance report 2024 link to report Community asset transfer and participation requests annual report This report fulfils the legislative requirements as set out in Parts 3 and 5 of the Community Empowerment (Scotland) Act 2015 which requires relevant authorities to publish an annual report setting out the number of requests received and the outcome of these. 18 Aug 2025 Chief Officer (Strategy and Engagement) Communities Committee 19-08-24 Community Asset Transfer and Participation Requests - annual report 2023/24 link to report Local Outcome Improvement Plan (LOIP) performance report The Community Empowerment (Scotland) Act 2015 requires Community Planning Partnerships (CPPs) to identify and understand priority communities experiencing the most significant levels of inequality. CPPs are required to agree a framework for partnership action to develop targeted, partnership interventions, and approaches through working with local communities set out and articulated though Local Outcome Improvement Plans (LOIPS). 18 Aug 2025 9 Feb 2026 Chief Officer (Strategy and Engagement) Communities Committee 03-02-25 LOIP performance report 1 April 2024 - 30 September 2024 link to report Page 120 of 124
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Performance report Committee meeting dates Chief Officer responsible Committee Latest version submitted to Committee Cycle 2 Apr - Jun 2025 Cycle 3 Aug - Sept 2025 Cycle 4 Oct - Dec 2025 Cycle 1 Jan - Mar 2026 Cycle 2 Apr- Jun 2026 This report provides a snapshot of progress linked to key priorities for each of the nine Local Outcome Improvement Plans on a six-monthly basis. The report also provides an overview of progress with implementation of the Management and Monitoring Framework and work to develop the role of the Local Partnership Teams. North Lanarkshire Community Planning Partnership - annual report The Community Empowerment (Scotland) Act 2015 introduced a range of new requirements on local authorities and community planning partners to empower and strengthen community involvement in the design, planning, and delivery of local services. The statutory duty of community planning requires all public sector agencies to work collaboratively in agreeing both strategic and local priorities for their areas to improve outcomes and address poverty and inequalities. Community Planning Partnerships must also annually review and report on their progress. 9 Feb 2026 Chief Officer (Strategy and Engagement) Communities Committee 03-02-25 North Lanarkshire Community Planning Partnership: annual oversight and outcomes report 2023/24 link to report Performance in handling complaints The Scottish Public Services Ombudsman Act 2002 provides the legislative basis for the Scottish Public Services Ombudsman (SPSO) to publish Model Complaints Handling Procedures for bodies under its jurisdiction. Since it was implemented in 2013, the council has implemented the Local Authority Model Complaints Handling Procedure (CHP). The council also manages and reports performance in terms of complaints handling in order to fulfil the requirements of good governance. 13 Nov 2025 Chief Officer (Strategy and Engagement) Audit and Scrutiny Panel 26-02-24 Performance in complaints handling link to report Public Sector Duties Climate Change annual report The Climate Change (Duties of Public Bodies; Reporting Requirements) (Scotland) Order 2015 introduced a legal obligation for public bodies to report annually detailing their compliance with the duties specified in the Climate Change (Scotland) Act 2009 and its subsequent amendments. The report is produced annually for the most recently completed financial year with a submission date of 30th November each year. The annual submission requires the council to demonstrate that, as a public sector organisation, it is contributing to the nationally set climate change targets as well as adhering to its other responsibilities in terms of both adaptation and sustainability. The report ensures the council fulfils its legal obligations; it also provides an update on progress against the council’s carbon budgets set within the Climate Plan and the Energy Policy targets. 11 Feb 2026 Chief Officer (Assets and Procurement) Environment and Climate Change Committee 05-02-25 Public Sector Duties Climate Change report 2023/24 link to report 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. 10 Sept 2025 Chief Officer (Assets and Procurement) Finance and Resources Committee 11-09-24 Annual Procurement Report 2023/24 link to report (report shows the date as 13/09/23; but this link is the actual 11/09/24 report) Revenues and benefits update report This report provides an update on the payment performance for council tax and non-domestic rates and the administration of welfare benefits and Council Tax Reduction Scheme. 21 May 2025 10 Sept 2025 19 Nov 2025 4 Mar 2026 27 May 2026 Chief Officer (Finance and Technology) Finance and Resources Committee 21-05-25 Revenues and Benefits update link to report Treasury Management annual activity report This report fulfils the key requirements of the council’s reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities and reports on the council’s performance in complying with the mandatory prudential indicators. 10 Sept 2025 Chief Officer (Finance and Technology) Finance and Resources Committee 11-09-24 Treasury Management annual activity report - 2023/24 link to report Treasury Management quarterly monitoring report This report fulfils the key requirements of the council’s quarterly reporting procedures for Treasury Management in accordance with the CIPFA Code of 21 May 2025 10 Sept 2025 19 Nov 2025 4 Mar 2026 27 May 2026 Chief Officer (Finance and Technology) Finance and Resources Committee 21-05-25 Treasury management quarterly monitoring report Page 121 of 124
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Performance report Committee meeting dates Chief Officer responsible Committee Latest version submitted to Committee Cycle 2 Apr - Jun 2025 Cycle 3 Aug - Sept 2025 Cycle 4 Oct - Dec 2025 Cycle 1 Jan - Mar 2026 Cycle 2 Apr- Jun 2026 Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities and reports on the council’s performance in complying with the mandatory prudential indicators. link to report Financial monitoring report - council summary (revenue) This report presents the council’s revenue monitoring position for the General Fund Account, Housing Revenue Account, and Adult Health and Social Care. 21 May 2025 10 Sept 2025 19 Nov 2025 4 Mar 2026 27 May 2026 Chief Officer (Finance and Technology) Finance and Resources Committee 21-05-25 Revenue monitoring report - council summary 1 April 2024 to 28 February 2025 link to report Financial monitoring report - council summary (capital) This report presents the council’s capital monitoring position for the council’s capital programmes, including general services, housing revenue account, City Deal, etc. 21 May 2025 10 Sept 2025 19 Nov 2025 4 Mar 2026 27 May 2026 Chief Officer (Finance and Technology) Finance and Resources Committee 21-05-25 Capital programme 2024/25 monitoring report link to report Financial monitoring - savings This report provides an update on the achievement of the three-year financial savings targets and progress in implementing one-off investment priorities. 10 Sept 2025 4 Mar 2026 Chief Officer (Finance and Technology) Finance and Resources Committee 26-02-25 Review of 2024/25 to 2026/27 budget savings link to report Annual accounts The Local Authority Accounts (Scotland) Regulations 2014 require the council to prepare an annual Statement of Accounts in accordance with proper accounting practices. These regulations also required that, as a committee of the authority whose remit includes audit or governance functions, the Audit and Scrutiny Panel meet to consider the audited annual accounts with the aim to approve these for signature no later than 30th September, and to publish these by 31st October immediately following the financial year to which they relate. Note, statutory Annual Accounts timescales means that a special meeting of the Audit and Scrutiny Panel often requires to be set. Unaudited - date tbc Audited - date tbc Chief Officer (Finance and Technology) Audit and Scrutiny Panel 31-10-24 Annual Accounts 2023/24 (Audited) link to report North Lanarkshire Properties NLP LLP is a limited liability partnership established in 2013 between the Council and its wholly owned company, North Lanarkshire Property Investments Ltd. It undertakes the marketing, leasing and management of the Council’s commercial property portfolio (shop units, office accommodation, business centres, industrial yards and storage units) and, on behalf of the Council, manages legacy properties which remain in the Council’s investment property portfolio. It also delivers services in relation to externally owned properties that the Council leases for its own operational use and provides general advice on lease transactions. Responsibility for oversight of service delivery by arm’s length bodies rests with the relevant service committee. The report confirms where NLP LLP is fulfilling its contractual obligations and meeting the council’s service delivery expectations, as well as providing information on financial performance and overall financial standing within the company. This information aims to help give early warning of any financial risks which may give rise to operational or reputational risks for the council. 10 Sept 2025 4 Mar 2026 Chief Officer (Assets and Procurement) Finance and Resources Committee 20-11-24 North Lanarkshire Properties LLP - performance indicators: 1 April to 30 September 2024 and financial performance as at 19th July 2024 link to report Routes to Work Routes to Work, established in 2002, is a company limited by guarantee with charitable status which is owned by North Lanarkshire Council. The organisation provides a range of free employability services to North Lanarkshire residents and specialises in providing case worker support to unemployed residents as well as support with accessing vocational training and the short-term costs associated with moving from benefits to employment, such as childcare and travel. They also provide in-work support for up to 6 months for those participants that require it. Responsibility for oversight of service delivery by arm’s length bodies rests with the relevant service committee. This report outlines Routes to Work Ltd performance 2 May 2025 15 May 2026 Chief Officer (Place) Enterprise and Fair Work Committee 02-05-25 Routes to Work Ltd - performance and finance report link to report Page 122 of 124
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Performance report Committee meeting dates Chief Officer responsible Committee Latest version submitted to Committee Cycle 2 Apr - Jun 2025 Cycle 3 Aug - Sept 2025 Cycle 4 Oct - Dec 2025 Cycle 1 Jan - Mar 2026 Cycle 2 Apr- Jun 2026 against its charitable objectives and council priorities. The report also provides commentary in respect of the charity’s governance arrangements to provide assurance that council obligations are being satisfied. The financial performance of Routes to Work Ltd and overall financial standing is also included. Fusion Assets Fusion Assets is a wholly owned subsidiary of the council. It focuses on delivering physical economic regeneration projects across North Lanarkshire and in particular industrial development - a market where there is currently limited speculative development. Unlike more traditional council owned property companies, Fusion Assets is more similar to an urban regeneration company whose role is focused on the redevelopment of vacant and derelict land and brownfield sites rather than commercial property management. Responsibility for oversight of service delivery by arm’s length bodies rests with the relevant service committee. This report provides details of the operational performance of Fusion Assets Ltd and outlines a range of economic outputs, outcomes being delivered through this ALEO, and details key highlights achieved during the year. The report also details the financial performance of Fusion Assets, their overall current financial standing, and future financial projections. 2 May 2025 15 May 2026 Chief Officer (Place) Enterprise and Fair Work Committee 02-05-25 Fusion Assets - performance and financial monitoring report link to report Health and Social Care North Lanarkshire annual performance report The Public Bodies (Joint Working) (Scotland) Act 2014 requires the Integration Joint Board to publish an Annual Performance Report, setting out an assessment of performance in planning and carrying out those functions for which it is responsible. With the cessation of the emergency (pandemic) legislation, Annual Performance Reports for 2022/23 onwards reverted to the original statutory timescale. Sept 2025 Head of Planning, Performance, and Quality Assurance Integration Joint Board (Performance, Finance, and Audit Committee) 25-09-24 Health and Social Care North Lanarkshire annual performance report 2023/24 link to report Adult Social Work Quarterly report to complement the annual report above. 13 May 2025 2 Sept 2025 11 Nov 2025 24 Feb 2026 19 May 2026 Head of Planning, Performance, and Quality Assurance Adult Care and Social Work Committee 13-05-25 Adult social care performance report - quarter 3 2024/25 link to report Quality assurance annual report The role of quality assurance covers a range of functions across social work by facilitating the delivery of high-quality services through effective business planning, maintaining quality standards and quality monitoring information. A commitment is in place to provide an annual report on activity carried out in the preceding year. 11 Nov 2025 Head of Planning, Performance, and Quality Assurance Adult Care and Social Work Committee 12-11-24 Quality assurance annual report 2023/24 link to report Page 123 of 124
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