Minutes - Audit and Scrutiny Panel of 24 March 2022

North Lanarkshire Council · 29 September 2022
Back to Policy and Strategy Committee — 29 September 2022 and its agenda

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AUDIT  AND  SCRUTINY  PANEL  -  24  MARCH  2022 
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24 March 2022 at 1 pm. 
A Meeting of the AUDIT  AND  SCRUTINY  PANEL 
PRESENT 
Councillor Watson, Convener; Councillor Stevenson, Vice-Convener; Councillors Carragher, Douglas, Hume,
T. Johnston, Loughran and Alan Valentine. 
CHAIR 
Councillor Watson (Convener) presided. 
IN  ATTENDANCE 
The Head of Business Solutions; Head of Financial Solutions; Head of Legal and Democratic Solutions; Head of
Regulatory Services and Waste Solutions; Audit and Risk Manager; Business Strategy Manager; Strategy and
Performance Manager; Business Partnership Manager; Corporate Risk Manager; Information Risk Manager;
Principal Auditor, and Committee Officer. 
ALSO  IN  ATTENDANCE 
G. McCreadie (Audit Manager) and P. Murray (Senior Audit Manager), Audit Scotland, and E. Lynch and
E. Todorovski, Improvement Service. 
APOLOGIES 
Councillors Anderson, Burrows and Graham. 
DECLARATIONS  OF  INTEREST  IN  TERMS  OF  THE  ETHICAL  STANDARDS  IN  PUBLIC  LIFE  ETC. 
(SCOTLAND)  ACT  2000 
1. Councillor Douglas, by virtue of being a Director of North Lanarkshire Properties LLP, declared an
interest by virtue of a connection in respect of paragraph 11 – ALEOs' Governance and Risk
Management: 2021/22 Oversight and Assurance Report (Programme of Work Number 75.1 – Part 6),
and left the meeting during consideration of this item. 
PRESENTATION  REGARDING  LOCAL  GOVERNMENT  BENCHMARKING  FRAMEWORK 
2. There was submitted a presentation by Emily Lynch of the Improvement Service providing details of
(a) the Local Government Benchmarking Framework (LGBF); (b) the impact on communities and
Council services during the first year of Covid-19; (c) a comparison of the expenditure patterns for
protected versus unprotected services; (d) the latest results relevant to the Council within the context
of the national position, as well as compared to both the Scottish average and its family group of
councils, and (e) links to a range of materials and the website for further use of the Framework to drive
improvement activity. 
Following the presentation, and a question and answer session, the Convener thanked Emily Lynch
for her contribution to the meeting.

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AUDIT  AND  SCRUTINY  PANEL  -  24  MARCH  2022 
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AUDIT  AND  RISK  RELATED  ITEMS:  ACTION  LOG 
3. There was submitted a report by the Audit and Risk Manager enabling the Panel to track
implementation of requests and recommendations made by it in respect of Audit and Risk related
items in the previous 18 months, with the action log, attached as Appendix 1 to the report, recording
those requests and recommendations made by the Panel and when these had been addressed and/or
were expected to be addressed. 
Decided: that the content of the report be noted. 
INTERNAL  AUDIT  PROGRESS  REPORT 
4. There was submitted a report by the Audit and Risk Manager (1) providing an overview of Internal
Audit activity; (2) reporting the results of Internal Audit outputs finalised since the last update to the
Panel in December 2021; (3) highlighting the most significant issues arising from the completed audit
work; (4) updating the Panel on other aspects of the work of Internal Audit, and (5) attaching, as an
Appendix to the report, a brief summary of the scope and key findings of each substantive planned
audit, together with a supplementary pack containing copies of those reports. 
The Audit and Risk Manager and the Head of Regulatory and Waste Solutions provided additional
commentary regarding the investigation into Waste and Fleet overtime payments.  The Head of
Regulatory and Waste Solutions re-assured the Panel that the findings had been accepted and a
range of actions had subsequently been implemented in order to rectify the findings.  Following
extensive discussion , the Panel agreed that a deep dive be undertaken in relation to Waste and Fleet
Overtime and that a further report be submitted to the Panel in six months time. 
Decided: 
(1) that the findings, conclusions and recommendations of completed Internal Audit reports,
together with the associated management responses be noted; 
(2) that a deep dive be undertaken in relation to Waste and Fleet overtime and that a further report
be submitted to the Panel in six months time; 
(3) that it be agreed that Internal Audit provide a report to future meetings of the Panel reporting
progress made by management in implementing agreed management actions in relation to all
audit recommendations categorised as “high” or “medium”, and 
(4) that the content of the report be otherwise noted. 
INTERNAL  AUDIT:  FOLLOW-UP  OF  ACTIONS  PREVIOUSLY  AGREED  BY  MANAGEMENT  IN 
RESPONSE  TO  AUDIT  RECOMMENDATIONS 
5. There was submitted a report by the Audit and Risk Manager (1) detailing the extent to which
management had implemented actions previously committed to in response to recommendations in
Internal Audit reports, where those actions were due to be completed by the end of December 2021;
(2) advising that Internal Audit had concluded that 12 of the 25 actions agreed in response to relevant
Internal Audit recommendations had been completed with 13 being assessed as partially
implemented; (3) indicating that Internal Audit had concluded that, in respect of External Audit reports,
7 of the 14 actions had been completed, with 1 having been partially implemented, 2 which were not
due yet and 4 that were no longer considered relevant, and (4) attaching, as an Appendix to the report,
the details of Internal Audit recommendations together with a current status and commentary by
Internal Audit.

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AUDIT  AND  SCRUTINY  PANEL  -  24  MARCH  2022 
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Discussion took place in respect of Appendix 1 to the report, specifically in relation to Risk
Management and Payroll: Review of Selected Key Controls for Payments to Employees, following
which, it was agreed that further reports would be submitted in relation to these items to a future
meeting of the Panel. 
Decided: 
(1) that the content of the report be noted, and 
(2) that it be agreed that a further report in relation to Risk Management and Payroll: Review of
Selected Key Controls for Payments to Employees be submitted to a future meeting of the
Panel. 
EXTERNAL  AUDIT  -  ANNUAL  PLAN  2021/22 
6. There was submitted a report by the Audit and Risk Manager advising that the annual planning
document for the audit of the Council, which would normally be presented to the Panel by the Council's
appointed External Auditors, was not yet available. 
G. McCreadie, Audit Scotland confirmed that the Covid-19 pandemic had impacted on the work of
Audit Scotland and it was now anticipated that the plan would be available in the near future, with sign
off planned by 31 October 2022.  Following discussion, it was agreed that, subject to the approval of
the Convener and the Audit and Risk Manager, the plan be e-mailed to the Panel, with any questions
then submitted to Audit Scotland. 
Decided: 
(1) that the current status of the planned approach to the 2021/22 audit of the Council be noted,
and 
(2) that it be agreed that the plan be e-mailed to the Panel, subject to the approval of the Convener
and the Audit and Risk Manager. 
CHANGES  TO  THE  CODE  OF  PRACTICE  ON  LOCAL  AUTHORITY  ACCOUNTING  2021/22 
7. There was submitted a report by the Head of Financial Solutions (1) explaining that the Council's
Financial Statements were compiled in accordance with the Code of Practice on Local Authority
Accounting in the United Kingdom, which was based on International Financial Reporting Standards
and also the requirements of Accounting and Statutory Guidance of Central Government; (2) informing
the Panel that Financial Solutions maintained an awareness of changes to accounting practices and
assessed the impact that these may have on the Council's procedures and its reported financial
position; (3) outlining the process for carrying out a review of this matter, and (4) indicating that the
2021/22 Unaudited Annual Accounts were due to be submitted to External Audit by 30 June 2022. 
Decided: 
(1) that the contents of the report be acknowledged, and 
(2) that the actions being taken to ensure the Council submitted a fully compliant set of Annual
Accounts to External Audit be recognised. 
RISK  MANAGEMENT  UPDATE

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8. There was submitted a report by the Audit and Risk Manager (1) providing an update to the Panel on
risk management developments in the period including progression on reviewing, assessing and
managing risks contained within the Council’s Corporate Risk Register (CRR); (2) reminding the Panel
that the approved CRR for 2021/22 contained 25 risks, as detailed in Appendix 1 to the report; 
(3) highlighting that there were currently 21 risks classified as “live” with completed control
documentation and four risks classified as “draft”, where relevant control documentation was currently
being reviewed and/or finalised; (4) reporting on changes in the CRR, since the last update to the
Panel; (5) detailing the proposed outline of the process for reviewing the CRR in 2022/23, and
(6) highlighting that an Internal Audit of Risk Management arrangements was now underway, with the
results of the audit expected to be available and reported to the first meeting of the Panel after the
Local Government Elections in May 2022. 
Decided: 
(1) that the risk management progress and activity undertaken in the last period be noted; 
(2) that the timetable for the future submission to the Panel of the revised CRR 2022/23 be
agreed, and 
(3) that the future submission of a proposed timetable for providing detailed risks leads reports
and individual corporate risks be agreed. 
RISK  MANAGEMENT  UPDATE:  ADDITIONAL  CORPORATE  RISK  –  ADMINISTRATION  OF 
ELECTIONS 
9. There was submitted a report by the Head of Legal and Democratic Solutions (1) advising that the
annual review of the Corporate Risk Register 2020/21, as agreed with the Corporate Management
Team, had, resulted in an additional risk being added to the Register relating to the “Administration of
Elections”; (2) intimating that a particular focus at that time was the safe, efficient and effective delivery
of elections during the pandemic in terms of the increased safety, risks and challenges in the context
of the public health measures in place, and the resultant impact on the elections process; (3) detailing
the (a) risk and wider risks associated with the administration of an election at any time; (b) current
key management processes and controls, which were designed to mitigate the risk, and (c) planned
actions which were intended to enhance current controls or to mitigate the risk further for future
electoral events, and (4) attaching, as Appendix 1 to the report, the “deep dive” review of this Corporate
risk. 
Decided: that the content of the report be noted. 
UPDATE  ON  ACTIONS  TO  ASSURE  DISASTER  RECOVERY  PROCESSES 
10. With reference to paragraph 4 of the Minute of this Panel held on 25 September 2019, which outlined
the Council’s Disaster Recovery (DR) Plan and testing arrangements, there was submitted a report by
the Head of Business Solutions (1) providing an overview of the Council’s road map for refreshing
existing ICT DR processes; (2) summarising the main activities concluded, in progress and planned
in order to implement a modern DR strategy; (3) identifying the need for not only a DR plan but also
DR processes which were fit for modern ICT Service Delivery, and (4) highlighting the risks which may
affect the operation of good DR planning practice. 
Decided: 
(1) that the content of the report and the actions associated with provisioning modern DR
processes be noted, and

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(2) that it be recognised that DR practices needed to be considered as ongoing business-as-usual
activities and therefore required resources to be targeted at them on an ongoing basis. 
Councillor Douglas, prior to consideration of the following item of business, having declared a
connection by virtue of being a Director of North Lanarkshire Properties LLP, left the meeting during
consideration of this item. 
ALEOS  GOVERNANCE  AND  RISK  MANAGEMENT:  2021/22  OVERSIGHT  AND  ASSURANCE 
REPORT  (PROGRAMME  OF  WORK  NUMBER  75.1  –  PART  6) 
11. There was submitted a report by the Head of Business Solutions (1) providing an overview of
governance, financial governance and risk management within the Council’s Arm’s Length External
Organisations (ALEOs) in the period from September 2021 to March 2022; (2) highlighting where
Covid-19 had impacted on company operations, including the safeguards that were put in place during
the pandemic to maintain service delivery and ensure safe working practices; (3) describing the
recovery strategies that were being developed to resume service delivery, as Covid restrictions were
lifted; (4)  advising that monitoring, reporting and scrutiny confirmed that, overall, the Council’s ALEOs
continued to operate satisfactorily and there were no new or substantial governance or risk matters
which required to be highlighted at this stage, and (5) providing a progress update on the winding up
of those ALEOs where the Council had previously taken the decision to either insource or cease
operations and an assurance that robust project management arrangements were in place to support
individual company directors in fulfilling their statutory duties.   
Following discussion, it was agreed that a six monthly update would be provided to the Panel in relation
to the final windup of those ALEOs where the Council had previously taken the decision to either
insource or cease operations. 
Decided: 
(1) that the governance and risk management arrangements within the Council’s arms length
service delivery providers remained sufficiently robust and provided assurance to the Council
that the entities delivering services on its behalf were being effectively managed; 
(2) that it be agreed that with, reference to the Head of Financial Solutions assessments in relation
to the impact of Covid-19 in individual companies, the relevant Boards or Management
Committees should continue to monitor financial performance closely, along with ongoing
separate oversight by Financial Solutions, and 
(3) that it be agreed that a six monthly update be provided to the Panel in relation to the final
windup of those ALEOs where the Council had previously taken the decision to either insource
or cease operations. 
VALEDICTORY 
The Convener gave thanks on behalf of himself and the Vice-Convener to all Committee Members and staff
for their hard work and support.