Minute of the Meeting of the Audit and Risk Committee of 25 June 2025 for Approval
Perth and Kinross Council · 17 September 2025
Back to Audit and Risk Committee — 17 September 2025 and its agenda
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AUDIT AND RISK COMMITTEE Minute of hybrid meeting of the Audit and Risk Committee held in the Council Chambers on Monday 25 June 2025 at 9.30am. Present: Councillors D Illingworth, L Barrett, J Duff (Substituting for Councillor A Chan), K Harvey, I MacPherson, G Stewart, and C Stewart. In Attendance: S Walker, Strategic Lead – Finance and Business Support; G Boland; Strategic Lead – Strategic Planning, People and Performance; A O’Brien and J Salisbury (both Finance and Business Support); L Dott and L Potter (Strategic Planning, People and Performance); and J Clark, S Hendry, K Molley, M Pasternak and R Ramsay (all Legal and Governance). Apology: Councillor A Chan Also in Attendance: P Bryan (Audit Scotland). Councillor D Illingworth, Convener, Presiding. 1. WELCOME AND APOLOGIES/SUBSTITUTIONS The Convener welcomed everyone to the meeting and an apology was noted as above. 2. DECLARATIONS OF INTEREST There were no declarations of interest made in terms of the Councillors’ Code of Conduct. 3. MINUTE OF MEETING OF THE AUDIT AND RISK COMMITTEE OF 24 MARCH 2025 FOR APPROVAL The minute of meeting of the Audit and Risk Committee of 24 March 2025 was submitted and approved as a correct record. 4. DRAFT UNAUDITED 2024-25 ANNUAL ACCOUNTS There was submitted a report by Chief Finance Officer (25/163) presenting the Council’s draft unaudited 2024/25 Annual Accounts in accordance with the Local Authority Accounts (Scotland) Regulations 2014. Councillor L Barrett suggested that it would be beneficial to add an explanation of the Improvement Service to the document. Councillor L Barrett also referred to the community engagements taking place all supported by the Improvement Service and asked for it to be made clear whether it was the Scottish Government or internal. Councillor L Barrett referred to the performance management and performance summary and queried why there had been no changes made to
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the audited accounts from last year. Councillor L Barrett also commented on the key areas of improvement and how it does not relate to the KPI trend overview and asked if the links could be made clearer. S Walker confirmed that the comparative data would not be made available until later in the year and confirmed that the audited accounts would have 24/25 Council data as well as comparisons included. L Dott confirmed that the Annual Performance Report contained further data around specific KPI’s and improvement actions. L Dott advised that the comments would be taken on board and incorporated into the audited accounts. Councillor L Barrett referred to the Community Investment Fund and queried why there had not been a reference made to the Green Living Fund which had also made a significant difference to communities. S Walker confirmed that once the 2024/25 information had been made available, a reference to the Green Living Fund would be included. Councillor L Barrett referred to ‘the doubling of revenue grant contributions and donations that are yet to be recognised as income as they have conditions attached to them that will require the monies or property to be returned’ and queried why the Council would not be able to make use of them. A O’Brien confirmed that those monies are grants received from the Scottish or UK Government with the intent for specific projects with specific time periods. A O’Brien added that at the end of the financial year, judgments are made whether the conditions of the grant have been met. Councillor L Barrett referred to note 36 and queried if the process of the Council purchasing Pullar House should be included. S Walker confirmed that he would add further information to advise that there was an ongoing process following the Council decision. Members thanked the Finance Team for their work in preparing the unaudited accounts. Resolved: (i) The contents of Report 25/163, be noted. (ii) The Chief Financial Officer be authorised to sign the Unaudited 2024-25 Annual Accounts, subject to the changes mentioned above. (iii) It be noted that the Audited 2024/25 Annual Accounts brought to the Audit and Risk Committee on 1 December 2025. 5. INTERNAL AUDIT FOLLOW-UP There was submitted a report by Chief Internal Auditor (25/164) presenting the current summary of Internal Audit’s ‘follow up’ work relating to actions due for completion up to April 2025. Resolved: The contents of Reports 25/164, be noted.
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6. INTERNAL AUDIT UPDATE There was submitted a report by Chief Internal Auditor (25/165) presenting a summary of Internal Audit’s work undertaken as part of the Internal Audit Plans for 2023/24 and 2024/25. The Convener referred to the issue of whistleblowers and asked for examples of what could be involved. J Clark confirmed there had been an increase of requests from Senior Managers and an increase in disclosures through the whistleblowing process. J Clark advised that disclosures are varying and could be around administration or culture and behaviours which require internal audit to ascertain more of the facts behind the allegations made. J Clark added that the increase has had an impact on the work of the team but confirmed that the team welcome whistleblowing disclosures as it highlights areas of scope for additional assurance. Councillor G Stewart referred to the implementation of Mosiac and queried if there had been contact with the audit team in Dundee to see if they had any issues with the system. J Clark advised that her overview had been around the implementation rather than the ongoing application. J Clark confirmed she would await the outcome from external audit colleagues to see if any additional work would be required on the system. Councillor C Stewart referred to the significant activity being undertaken in relation to unplanned work and queried what different areas are involved. J Clark confirmed that unplanned work would often arise from senior managers or team leaders who are looking for advice on internal controls, risk management and governance. J Clark advised that those areas of unplanned activity do not often lead to a full audit. Resolved: The progress with Internal Audit activity, be noted. 7. A24-01 – BUSINESS CONTINUITY MANAGEMENT (BCM) PLANNING There was submitted a report by the Chief Internal Auditor (25/166) presenting an audit undertaken on Business Continuity Management Planning. Councillor C Stewart queried if cyber security had been considered as part of the business continuity management planning audit. J Clark confirmed there was a separate business continuity plan for cyber security in place. In the short term, G Boland reassured members that plans are consistent and the annual testing exercise had been reinstated. Councillor L Barrett confirmed that she strongly agreed with the recommendation to revisit the Business Continuity Plans 2026/2027 and queried if the process would start early in the cycle. J Clark confirmed that she would like to ensure that services had the time to undertake the full
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annual review process and anticipated that it would be in second quarter of 2026/27. Councillor C Stewart referred to the procedure on business continuity management with a timeline of May 2025. G Boland confirmed that the procedure had been finalised. Resolved: The contents of Report 25/166, be noted. 8. INTERNAL AUDIT ANNUAL REPORT & INTERNAL AUDIT OPINION 2024/25 There was submitted a report by Chief Internal Auditor (25/167) presenting the year-end report and audit opinion of the Chief Internal Auditor for 2024/25. Councillor L Barrett referred to the case of money laundering and queried if it had increased confidence that controls are working or indicate areas that need further work. J Clark confirmed that the findings provided reassurance that the current controls in place are operational. The Convener thanked J Clark and her team for their work. Resolved: The contents of Report 25/167, be noted. 9. INTERNAL AUDIT MANDATE & CHARTER There was submitted a report by Chief Internal Auditor (25/168) presenting Internal Audit’s Mandate and Charter, in accordance with the Global Internal Audit Standards in the UK Public Sector (GIAS (UKPS)). Councillor L Barrett referred to the co-operation of Council Management and queried if the Chief Internal Auditor felt respect from the leadership teams and their staff. J Clark advised that the Strategic Leadership Team engage well with internal audit and confirmed that services are implementing outcomes from the audit process in an appropriate time. If that were to change, it would be brought to the attention of the committee. Resolved: The Internal Audit Mandate & Charter which is aligned to the requirements of the Global Internal Audit Standards (GIAS) and their application in the UK Public Sector and the CIPFA Code of Practice for the Governance of Internal Audit in Local Government, be approved. 10. INTERNAL AUDIT STRATEGY & PLAN
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There was submitted a report by Chief Internal Auditor (25/169) presenting the Strategy for the delivery of Internal Audit services for Perth and Kinross Council, and the proposed approach for the direction of planned Internal Audit work for 2025/26. Councillor L Barrett asked for further indication on how the actions detailed would be prioritised and planned. J Clark confirmed that some work had already started on assignments in the plan around areas such as external funding workstream, care home and petty cash. J Clark added as part of planning, internal audit would negotiate with Strategic Leads and Service Managers around an appropriate timeframe. Councillor G Stewart referred to the importance of internal audits and the verification of implementing actions and queried the allocation of resources. J Clark clarified that the allocation of resources was ongoing. J Clark added that a database records all actions that have been agreed, and the responsible officer would be contacted to ask for progress reports and agreed evidence to provide internal audit with reassurance that the actions have been undertaken. Councillor C Stewart referred to the Administration of Social Care Establishment and queried what additional benefit the Council would receive from an internal audit in the area. J Clark confirmed that the internal audit would not focus on the care aspects but would look at the administration, and particularly the financial administration of the establishment. Members thanked J Clark and her team for their work. Resolved: The strategy and plan for 2025/26, be approved. 11. STRATEGIC RISK ANNUAL REPORT There was submitted a report by Strategic Lead – Strategic Planning, People and Resources (25/170) providing assurance that the Council’s Risk Management Framework is adequate and effective to advise of the current key strategic risks facing the organisation and how these risks are being mitigated and managed. Councillor G Stewart asked for further information on Risk Trained Officers. L Dott confirmed a cohort a staff across the organisation have a qualification in the management of risk. L Dott added that with changes to the operating model under the Strategic Lead – Planning, People and Performance, training was being provided to additional staff by the risk practitioners. In response to a supplementary question from Councillor G Stewart, L Dott confirmed that each Strategic Lead has a business partner that provide support in terms of risk and performance arrangements.
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Resolved: (i) The contents of the Report 25/170 be considered constructive challenge and comment be provided. (ii) The current key strategic risks which have been identified through the application of the approved risk management process, be noted. (iii) The assurance as to adequacy and effectiveness of the risk management framework, be accepted. IT WAS AGREED THAT THE PUBLIC AND PRESS SHOULD BE EXCLUDED DURING CONSIDERATION OF THE FOLLOWING ITEM IN ORDER TO AVOID THE DISCLOSURE OF INFORMATION WHICH IS EXEMPT IN TERMS OF SCHEDULE 7A TO THE LOCAL GOVERNMENT (SCOTLAND) ACT 1973. P1. STRATEGIC RISK ANNUAL REPORT – SR06 There was submitted a report by Strategic Lead – Strategic Planning, People and Resources (25/170) providing assurance that the Council’s Risk Management Framework is adequate and effective to advise of the current key strategic risks facing the organisation and how these risks are being mitigated and managed. Resolved: The contents of the risk SR06 be noted and assurance be accepted. ~~~~~~