Internal Audit - 25-05 - Housing Regulator Submission
Perth and Kinross Council · 23 March 2026
Back to Audit and Risk Committee — 23 March 2026 and its agenda
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Internal Audit Report Housing & Communities 25-05 Housing Regulator Submission March 2026 Final Report (Report No. 26/71) Legal and Governance Perth & Kinross Council Council Offices 2 High Street Perth PH1 5PH
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25-05 Housing Regulator Submission Contents by Section 1. Introduction 2. Audit Background Information 3. Scope and Limitations 4. Assessment of the Control Environment 5. Summary of Findings 6. Conclusions 7. Acknowledgement 8. Action Implementation & Follow Up 9. Management Action Plan 10. Authorisation 11. Distribution 12. Assessment Definitions
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1. Introduction 1.1 The audit of the Housing Regulator Submission was undertaken as part of the Internal Audit Plan for 2025/26, which was approved by the Audit and Risk Committee on 25 June 2025. The period under review for the purposes of the audit exercise was the financial year 2024-25. 1.2 The indicative scope for the audit was to review arrangements for the compilation of the annual submissions to the Housing Regulator. 1.3 The audit is not directly linked to any particular risk on the Strategic Risk Register, however, forms the basis for external assurance provider, which may be relied on by Internal Audit as part of planning, in accordance with the Global Internal Audit Standards in the UK Public Sector. 2. Executive Summary 2.1 The audit has found that Substantial Assurance can be placed on the Council’s internal controls in relation to the review for the compilation of the annual submissions to the Housing Regulator by the Council, with no improvement actions arising from the Internal Audit (Objectives 1 and 2 below). Areas of good practice have been highlighted within Section 5 of this report. 2.2 Whilst reviewing the arrangements for the compilation of the annual submission, Internal Audit reviewed in detail the content of the Submission (Objective 3 below). We found that the Service were aware of these and were taking actions to address the issues, where possible. These findings are captured in Section 6 and an action plan in Section 10 includes the actions which are on-going to address the issues raised. As a result of this part of the audit, there are ten actions arising. These actions are designed to enhance performance as reported in the Submission. 3. Audit Background Information 3.1 The Scottish Housing Regulator (SHR) was established on 01 April 2011 in accordance with the Housing (Scotland) Act 2010. Its objective is to protect and promote the interests of tenants and other service users of Local Authorities and Registered Social Landlords (RSLs). 3.2 The Regulatory Framework states that each landlord is responsible for delivering good outcomes and services for its tenants and service users. Landlords need to be self-aware, analytical, open and honest about their performance, and identify and drive improvement. 3.3 Section 2.4 of the Regulatory Framework requires landlords to prepare and publish an Annual Assurance Statement. This statement serves to confirm to both tenants and the Scottish Housing Regulator that the landlord is meeting the relevant regulatory requirements applicable to Local Authorities and Registered Social Landlords (RSLs).
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3.4 In accordance with section 2.9 of the Framework, the main risks that they consider are: poor outcomes for tenants, people who are homeless and other service users poor quality or safety of tenants’ homes 3.5 Further, the Regulatory Framework advises that landlords should consider how best to utilise Internal Audit as a source of independent assurance when preparing their Annual Assurance Statements. This includes providing assurance on compliance with regulatory requirements, such as the Standards of Governance and Financial Management applicable to Registered Social Landlords (RSLs). 3.6 According to section 4.2 the statement should be completed and agreed by the governing body or local authority committee. It is mentioned that the governing body or committee should confirm that they have appropriate assurance that they comply with: all relevant regulatory requirements set out in Chapter 3 of the Regulatory Framework all relevant standards and outcomes in the Scottish Social Housing Charter all relevant legislative duties the Standards of Governance and Financial Management (RSLs only) any specific assurance requirements asked landlords to cover in their Statement. 4. Scope and Limitations 4.1 The Audit has reviewed the relevant standards and outcomes in the Scottish Social Housing Charter and identified the arrangements for the compilation of the annual submissions to the Housing Regulator (HR). 4.2 To arrive at an opinion on the achievement of the control objective, the review included, Document reviews concerning Housing Regulator submission Interviews with key staff who are responsible for the various indicators Reviewing of any third-party documents and arrangements with relevant performance indicators Ensuring lessons learned from previous non-compliance are incorporated into future planning. 4.3 There were no limitations identified that would impact the Audit. 4.4 The details of the control objectives reviewed and the Internal Audit’s assessment of their strength of control in each area are contained within Section 5 of this report.
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5. Assessment of the Control Environment 5.1 The table below contains a summary of the findings against each control objective and Internal Audit’s assessment of the adequacy and effectiveness of the controls in place to meet each of the objectives agreed for this audit. Further details, including any improvement actions, are set out in the Management Action Plan. Action RatingNo. Control Objective 5 4 3 2 1 Control Objective Assessment 1 To ensure appropriate evidence has been gathered to support the level of assurance. Substantial Assurance 2 To assess whether the conclusion arrived at is appropriate based on the evidence available and satisfies the governance requirement. Substantial Assurance 3 To ensure all relevant standards and outcomes in the Scottish Social Housing Charter and legislative duties have been achieved. 7 2 1 Reasonable Assurance 5.2 The auditor has assessed that Substantial Assurance can be placed on controls overall in relation to the arrangements for the compilation of the annual submissions to the Housing Regulator. Meaning: “A sound system of governance, risk management and control exists, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited”. 5.3 A summary of the key findings and actions is provided in section 6. Please note, however, the following areas of good practice which have been highlighted during the audit: 5.3.1 The submission of Annual Assurance Statements commenced in 2018/19, and over the past six years, there has been a consistent demonstration of commitment and the delegation to ensure timely submission. Cross functional teams worked together for the compilation of the Annual Assurance Statement for the 2024/25 and to meet the 31 October 2025 deadline. 5.3.2 There are certain delegated authorities have been appointed to oversee all aspects related to the housing regulator submission and delivery of the different services to the tenants. Service performance is reported regularly to the Housing Management Team, Communities Senior Management Team and Executive Leadership Team.
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5.3.3 According to the Scottish Housing Regulator website 8,226 homes are owned by Perth and Kinross council as of 31 March 2025. The total rent due to this landlord reported for the year 2024/25 was £32,978,973. It further mentioned that the PKC increased its weekly rent on average by 6.0% from the previous year but it is still below the Scottish average weekly rents. 5.3.4 Our observations confirm that appropriate measures have been implemented to ensure all the houses achieve the Gas Servicing Compliance requirements 2024/25 year. We commend the Housing Compliance Team for their dedication and performance in achieving this target and encourage the continued application of the Gas Servicing Quality Assurance Framework. 5.3.5 Our review indicates that PKC remains committed to delivering home adaptations, with 404 completed during 2024/25. Notably, the number of households waiting for adaptations was reduced from 45 to 32. While the average completion time has slightly decreased, it remains better than the Scottish average. The efficient use of resources has also led to a significant reduction in total expenditure. The dedication of the Property - Housing Capital Projects and New Builds team, in collaboration with the Occupational Therapist, is commendable in achieving these outcomes. 5.3.6 It has been noticed that PKC charges the lowest factoring fee of £20 compared with the Scottish Average and other Registered Social Landlords. Currently, there are 116 owners across multi-storey and other blocks who are subject to this fee. Satisfaction with factoring services has increased over the year, reflecting strong performance in delivering good value for money (outcome 13), communication (outcome 2) and participation (outcome 3) in line with the Scottish Social Housing Charter. 5.3.7 According to Social Housing Allocation Guidelines, in allocating housing, social housing landlords need to balance a range of factors such as, the individual's housing need, the suitability of the house for that applicant and the needs of the community. In April 2025, PKC revised the Common Allocation Policy (CAP) to better identify the priority tenants in response to housing pressure. We appreciate the steps taken to implement Perth and Kinross Common Housing Register (CHR), a computer-based, single waiting list shared by PKC, Caledonia Housing Association, Hillcrest Homes and Kingdom Housing Association. This system uses Group Plus Points System to ensure fair and consistent allocations, in alignment with relevant housing legislation and the Scottish Social Housing Charter. 5.3.8 The preparation of Assurance Statements requires the collection and input of various data into the Scottish Housing Regulator’s system. This process has been effectively coordinated by a designated officer who possesses comprehensive knowledge across all relevant areas. The officer has provided consistent support to the Team Leader, ensuring that all necessary evidence has been appropriately gathered. The resulting Assurance Statement addresses all key indicators in accordance with the requirements of the Regulatory Framework. 5.3.9 In our observation, the Assurance Statement was prepared well in advance, with all supporting documentation clearly itemised in a separate annexe. The
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assurance provided is consistent with the evidence presented, which has been reviewed and found satisfactory by the Internal Audit. 5.3.10We observed that appropriate governance arrangements were in place for the submission to the Scottish Housing Regulator. This was evidenced by participation in the Housing and Social Wellbeing Committee meeting held on 01 October 2025. During this meeting, the Assurance Statement along with the relevant appendices was formally approved for submission to the Regulator. This approval aligns with the Framework’s requirements and was granted by the Committee on the same day. 5.3.11As internal audit we agree with the conclusion derived in the Assurance Statement which states that “during 2024/25 Perth and Kinross Housing Service complied with all except one regulatory requirement as set out in Chapter 3 of the Scottish Housing Regulator's Framework.” Also, we are satisfied with the explanation provided in relation to the recognised non- compliance. 5.3.12During 2024/25, Perth and Kinross Council reported non-compliance in relation to the management of Gypsy/Traveller sites. The details of this non- compliance have been outlined in our findings. However, the Assurance Statement clearly highlights the steps taken to address the issue, including the provision of quarterly updates to the Scottish Housing Regulator. We acknowledge and commend the ongoing efforts made throughout the year to achieve and maintain full compliance in the management of Gypsy/Traveller sites. 6. Summary of Findings 6.1 Below is a summary of key findings and actions, which are reflected in the Management Action Plan, detailed in section 10. 6.2 The assurance process was conducted effectively, and sufficient evidence was gathered to support the expressed opinion. 6.3 As part of the audit, whilst testing was undertaken for the third control objective, as detailed in Section 5 above, Internal Audit has identified areas where additional controls could be beneficial particularly in relation to certain national key performance indicators. 6.4 Our observation confirm that the Customer Satisfaction Survey was conducted by an independent, third-party organisation, Knowledge Partnership, using a representative sample to assess overall tenant satisfaction. Key areas evaluated included keep tenants informed, opportunities to participate, housing quality, repairs, neighbourhood management and rent value. During 2024/25 most of these indicators showed a decline compared to the previous year and indicating a downward trend in tenant satisfaction. [Action point 01]
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6.5 Regarding the complaint handling, all the complaints are received via email or telephone and are recorded in Firmstep (Case Viewer), before being downloaded to Excel for verification. Housing-related complaints are manually identified, sorted, and documented as a part of this process. Although discussions have taken place regarding the implementation of a complaint’s dashboard, it should be noted that the dashboard was not fully operational during the 2024/25 reporting period and therefore was not utilised for the Housing Regulator submission. [Action point 02] 6.6 The review of documents and discussions with the Corporate Complaints Team Leader revealed an increase in Stage 2 complaints rising from 60 to 80 from 2023/24 to 2024/25. Stage 2 Complaints means if the complainant is dissatisfied with the Stage 1 outcome or if the issue remains unresolved, the complaint is escalated to Stage 2. Additionally, more serious complaints may be classified directly as Stage 2. These are typically resolved within 20 working days. It was noted that 9 of the 80 complaints received during the year were carried forward to 25/26 financial year and resolved fully. Actions have already been implemented in this area; therefore, no further actions are currently required. 6.7 The audit has identified that a substantial amount of information in relation to the social housing is publicly available in the PKC website. This includes the access to applications, common allocation policy and clarifications addressing misconceptions regarding the allocation process. However, it was noticed that certain information on the website is outdated. For instance, the update provided for the Common Housing Register Waiting List is dated 13 September 2021 which may lead to confusion or misinformed expectations among applicants. [Action point 03] 6.8 According to the Scottish Housing Quality Standards (SHQS), social landlords must ensure that their tenants’ homes: energy efficient, safe and secure, not seriously damaged have kitchen and bathrooms that are in good condition. Landlords are expected to maintain these standards unless otherwise they prevent by social or technical reason from completing improvements required by SHQS. It is mentioned that in general, SHQS should be achieved rather than avoided. 6.9 From our observation, we found that there are 1662 houses which do not pass this minimum SHQS in 2024/25; from these, 123 houses are in abeyance (refers to the situation where planned work cannot be completed due to social reasons such as tenant behaviour), and 417 houses are under exemption (due to technical or economic reasons).
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1082 houses have fully failed to meet the standards. Specifically, 999 houses failed on one criterion, while 83 houses failed on two or more criterion. The most common failures notified were roof structure and common floor/parts failures. For the year 2024/25 SHQS pass rate is 80.28%, reflecting an improvement from the previous year pass rate of 76.32%. It is noted that the Council will not achieve 100% conformance in this area, due to reasons such as tenant preference, the type of housing stock etc, and that the Council’s performance is above the local authority average; the Service continues to progress towards achieving the maximum compliance rate possible. [Action point 04] 6.10 The Energy Efficiency Standard for Social Housing (EESSH) was introduced to improve the energy efficiency of social housing in Scotland, with the aim of reducing energy consumption, fuel poverty and greenhouse gas emissions. As part of our review, it was identified that a significant number of properties failed to meet EESSH requirements. Specifically, 1055 properties did not comply with the standard in 2024/25; 451 of these properties are under exemption (due to technical or economic reasons) or an abeyance (tenant issues, for example, opting out of the improvements required or not allowing access). [Action point 05] 6.11 The status of the Energy Performance Certificate (EPC) of PKC Housing Stock as of 31 March 2025 has been observed as follows. Following the introduction of the Energy Team, the number of properties without an EPC has significantly decreased from 919 to 198. As of 31 March 2025, there were 210 properties with Energy Performance Certificates (EPC) rated in Bands E and F, comprising 170 properties in Band E and 40 in Band F. 6.12 As per the updated figures as of 30 June 2025, we noted that there are 185 properties without Energy Performance Certificate (EPC) and 874 out of date which require attention from the Housing Capital Projects & New Builds team in Property Services. It is appreciated that these figures can be impacted by lack of access provided to carry out the EPC surveys. [Action point 06]
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6.13 Currently, there are multiple software solutions used by the Council to support various aspects of housing management operations. The primary asset database utilised by the Housing Capital Projects & New Builds Team is the “Houses” Database, which is operated by BACRA. This system underpins reporting requirements for both ARC (Annual Return on the Charter) and SHQS (Scottish Housing Quality Standards). The Housing Service employs the NEC Housing Management System to effectively manage and maintain a range of functions including Housing Advice, Homelessness, Allocations, Tenancies, Rents, Arrears, Customer Services, Planned Maintenance, and Housing Online. Additionally, the Housing Repairs Service utilises the Total Mobile (Total Connect) system for job management, scheduling, and mobile delivery. 6.14 Whilst it is appreciated that the current reports and quality assurance processes for the compilation of the submission to the Scottish Housing Regulator ensure that the information is accurate, there is scope for considering some improvement. The audit identified the Council does not maintain a centralised asset database accessible across all departments. For instance, the “Houses” database is not integrated with other systems such as NEC and Total Mobile. [Action point 07] 6.15 Regarding the indicator Anti-social behaviour cases resolved, it was noted that there is a 13.77% (From 91.37% to 79.60%) reduction from previous year of resolving them within the agreed time. [Action point 08] 6.16 We have observed positive progress in rent collection, accompanied by a significant reduction in gross rent arrears. However, it has been identified that there is currently no utilisation of advanced technologies to proactively detect potential rent arrears at the tenant level. Several other councils have successfully implemented predictive analytics to identify early indicators of financial distress among tenants and this may be a route for PKC to consider. [Action point 09] 6.17 During the audit, we observed that concerns were raised in relation to the safety, standards, communication and human rights concerns at Gypsy/Travellers site by the Scottish Housing Regulator published on 21 March 2025. In the Double Dykes site, PKC failed to meet the minimum standard for Essential Fabric Standards (Standard 1), Safety and Security (Standard 4), Maintenance and Repairs (Standard 5), Fair Treatment (Standard 6) and Consultation (Standard 7). In the Bobbin Mill site, PKC failed to meet the Essential Fabric Standards (Standard 1), Energy Efficiency (Standard 2), Safety and Security (Standard 4) and Consultation (Standard 7). 6.18 The Housing Regulator mentioned both Gypsy/Travellers sites are failing to meet several Social Housing Charter Outcomes such as Equalities (outcome 1), Communication (outcome 2), Participation (outcome 3), Repairs, maintenance and improvement (outcome 5), Gypsy/Travellers (outcome 16).
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There is an ongoing replacement of the chalets and general upgrades in both sites. However, on the completion day of this audit, the Comprehensive Satisfaction Survey has not been carried out. [Action point 10] 6.19 The latest Stock Condition Survey was carried out in June 2021 and covered 30% of the housing stock at that time. As per Regulator guidance, the next scheduled Survey is to be held before June 2026 and this was also due to cover 30% of different houses for SHQS compliance, as per the Annual return submitted. Since the Annual Return was submitted in May 2025, the Service has reconsidered its position going forward, to improve the accurate understanding of the condition of the housing stock. A new contract is being progressed that will ensure that 100% of the properties are reviewed within the lifetime of the contract, therefore within the five year period required for the next Stock Condition Survey. 7. Conclusion 7.1 The Internal Audit review is able to place Substantial Assurance on the overall control environment for arrangements for the compilation of the annual submissions to the Housing Regulator. The agreed actions, once implemented, should enable Internal Audit to place substantial assurance on these. 8. Acknowledgements 8.1 Internal Audit would like to thank all officers who were involved in this audit, Elaine Ritchie (Strategic Lead – Housing & Communities), Calvin Cameron (Housing Development Worker, Communities - Performance & Business Support), Andrea McCallum (Service Manager - Housing - Communities), Mark Weir (Team Leader - Income Maximisation, Communities - Performance & Business Support), June McColl (Service Manager (Housing) Communities - Repairs & Improvements), Nicola Lennon (Service Manager - Capital Projects & New Build), Nicola Sworowski (Place Strategies Manager & Chief Planning Officer Communities - Planning & Housing Strategy), Martin Smith (Service Manager - Perth City and Specialist Services Communities - Perth City & Specialist), Connor Wilson (Business Support Service Manager – Finance & Business Support), Joy Mayglothling (Corporate Complaints Team Leader) 9. Action Implementation & Follow up 9.1 Responsibility for the maintenance of adequate and effective controls rests with management. Where the audit has identified areas for management action, these are identified in the Management Action Plan.
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Where a decision is taken by management not to act in response to findings from this review, it is the responsibility of management to assess and accept the risk arising from non-implementation. 9.2 Achievement of the agreed actions is monitored through Internal Audit’s ‘follow up’ arrangements.
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10. Management Action Plan Action Point Para. No Finding Risk Rating Agreed Action & Evidence Action Owner Target Completion Date 1 6.4 Our observations confirm that the Customer Satisfaction Survey was conducted by an independent, third-party organisation, Knowledge Partnership, using a representative sample to assess overall tenant satisfaction. Key areas evaluated included keeping tenants informed, opportunities to participate, housing quality, repairs, neighbourhood management and rent value. During 2024/25 most of these indicators showed a decline compared to the previous year and indicating a downward trend in tenant satisfaction. 3 Agreed action: The findings of the Satisfaction Survey for 2025/26 are being reviewed for any areas where action can be taken to address areas of concerns being raised. Agreed evidence: Outomes from the review of tenant satisfaction within Perth and Kinross. A. McCallum (Service Manager - Housing - Communities) May 2026 2 6.5 Regarding the complaint handling, all the complaints are received via email or telephone and are recorded in Firmstep (Case Viewer), before being downloaded to Excel for verification. Housing- related complaints are manually identified, sorted, and documented as a part of this process. Although discussions have taken place 2 Agreed action: A pilot dashboard has been developed with managers presenting live data, tracking and themes with a view to resolving complaints quickly and efficiently. Roll out took place from January 2025, becoming fully operational from April 2025. C. Wilson (Business Support Service Manager – Finance & Business Support) Completed
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regarding the implementation of a complaints dashboard, it should be noted that the dashboard was not fully operational during the 2024/25 reporting period and therefore was not utilised for the Housing Regulator submission. Agreed evidence: Live dashboard 3 6.7 The audit has identified that a substantial amount of information in relation to the social housing is publicly available in the PKC website. This includes the access to applications, common allocation policy and clarifications addressing misconceptions regarding the allocation process. However, it was noticed that certain information on the website is outdated. For instance, the update provided for the Common Housing Register Waiting List is dated 13 September 2021 which may lead to confusion or misinformed expectations among applicants. 1 Agreed action: We recognise the importance of providing data that is meaningful and relevant to both applicants and tenants, and significant progress has been made in this area. Agreed evidence: The updated waiting list M. Smith (Service Manager - Housing) Completed 4 6.9 From our observation, we found that there are 1662 houses which do not pass this minimum SHQS in 2024/25; out of that 123 houses are in abeyance (refers to the situation where planned work cannot be 3 Agreed action: New Contract put in place for Stock Condition Survey. New Asset Management Database for all areas of Housing to feed data into to N. Lennon (Service Manager - Capital Projects & New Build) October 2027
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completed due to social reasons such as tenant behaviour), and 417 houses are under exemption (due to technical or economic reasons). 1082 houses have fully failed to meet the standards. Specifically, 999 houses failed on one criterion, while 83 houses failed on two or more criterion. The most common failures notified were roof structure and common floor/ parts failures. For the year 2024/25 SHQS pass rate is 80.28%, reflecting an improvement from the previous year 76.32%. It is noted that the Council will not achieve 100% conformance in this area, due to reasons such as tenant preference, the type of housing stock etc, and that the Council’s performance is above the local authority average; the Service continues to progress towards achieving the maximum compliance rate possible. ensure asset management information is up to date. Review of SHQS failures and targeted inspections carried out to investigate elements shown as failures Agreed evidence: Appointment of contractor for Stock Condition Survey and commencement of contract within 2026 Appointment of new Asset Management Database provider and move from current databases to new Database undertaken Regular reports provided by database to track reduction in SHQS failures Data relating to each failure is fully evidenced and shown with a plan of how this will be addressed J McColl, (Service Manager (Housing) Communities - Repairs & Improvements Nicola Sworowski, (Place Strategies Manager & Chief Planning Officer)
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5 6.10 The Energy Efficiency Standard for Social Housing (EESSH) was introduced to improve the energy efficiency of social housing in Scotland, with the aim of reducing energy consumption, fuel poverty and greenhouse gas emissions. As part of our review, it was identified that a significant number of properties failed to meet EESSH requirements. Specifically, 1055 properties did not comply with the standard in 2024/25; 451 of these properties are under exemption (due to technical or economic reasons) or an abeyance (tenant issues, for example, opting out of the improvements required or not allowing access). 3 Agreed action: Targeted plan to address EESSH failures, taking into account budgetary pressures Agreed evidence: EESSH failures list categorised into elements to be addressed to improve EESSH compliance and work towards completion of delivery of the required elements N. Lennon (Service Manager - Capital Projects & New Build) Overall target: March 2030 Interim targets: March 2026 – 114 properties March 2027 – 306 properties March 2028 – 182 properties March 2029 – 1 property March 2030 - 1 property 6 6.12 As per the updated figures as of 30 June 2025, we noted that there are 185 properties without Energy Performance Certificate (EPC) and 874 out of date which require attention from the Housing Capital Projects & New Builds team in Property Services. It is appreciated 3 Agreed action: Properties currently without an EPC or with an out-of-date EPC are being prioritised for surveys through the current contract that is in place; this contract has a planned N. Lennon (Service Manager - Capital Projects & New Build) March 2027
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that these figures can be impacted by lack of access provided to carry out the EPC surveys. delivery requirement to guarantee it meets the required deliverables. Agreed evidence: Progress monitoring reports provided fortnightly by the contractor at the progress meeting Bi-monthly Highlight Reports provided to Housing Management Team. 7 6.14 Whilst it is appreciated that the current reports and quality assurance processes for the compilation of the submission to the Scottish Housing Regulator ensure that the information is accurate, there is scope for considering some improvement in that the audit identified the Council does not maintain a centralised asset database accessible across all departments. 3 Agreed action: A comprehensive contract strategy has been completed to tender for a new system. This strategy acknowledges the limitations and sets out a clear pathway for procuring a new housing asset management solution that meets both current and future operational and regulatory needs. This process has taken significant time given the complexities involved. Market testing has been conducted to ensure the proposed system will deliver improved functionality, integration, and data reliability. N. Lennon (Service Manager - Capital Projects & New Build) J. McColl (Service Manager (Housing) Communities - Repairs & Improvements March 2026
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However, the costs have been passed to our Finance colleagues for review and comment, as the quotation received far exceeds the anticipated costs, therefore it is unclear at this stage whether we will have a budget to meet the full requirements Agreed evidence: Contract award document / outcome from decision on whether to proceed 8 6.15 Regarding the indicator Anti-social behaviour cases resolved, it was noted that the 13.77% (From 91.37% to 79.60%) reduction from previous year of resolving them within the agreed time. 3 Agreed action: Review and update the ASB procedures. Deliver targeted staff training – with a particular focus on trauma informed approach. Encourage the use of a wide range of interventions and legal tools. Promote early intervention through positive engagement, education, mentoring, and diversion activities Agreed evidence: ASB indicator for 25/26 A.McCallum (Service Manager - Housing - Communities) May 2026
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9 6.16 We have observed positive progress in rent collection, accompanied by a significant reduction in gross rent arrears. However, it has been identified that there is currently no utilisation of advanced technologies to proactively detect potential rent arrears at the tenant level. Several other councils have successfully implemented predictive analytics to identify early indicators of financial distress among tenants and this may be a route for PKC to consider. 2 Agreed action: We are currently testing NEC Analytics, which is a form of AI, to help with the identification of trends and forecasting to target our work and free up staff to focus on those more complex and challenging cases. Agreed evidence: Reports run by NEC Analytics A. McCallum (Service Manager - Housing - Communities) Build completion December 2025 Phased go- live Q1 2026 10 6.18 Housing Regulator mentioned both Gypsy/Travellers sites are in failures in meeting several Social Housing Charter Outcomes such as Equalities (outcome 1), Communication (outcome 2), Participation (outcome 3), Repairs, maintenance and improvement (outcome 5), Gypsy/ Travellers (outcome 16). There is an ongoing replacement of the chalets and general upgrades in both sites. However, on the completion day of this audit, the Comprehensive Satisfaction Survey has not been carried out. 3 Agreed action: Tenant satisfaction surveys are embedded within our programme and scheduled in accordance with both statutory requirements and resident feedback. Review the findings of the Satisfaction Survey for 2025/26. Consider the potential to extend the current contract or alternative means of collecting the satisfaction levels. The regulator only requires updates every 3 years for these indicators. A. McCallum (Service Manager - Housing - Communities) April 2026
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Agreed evidence: Comprehensive Satisfaction Survey
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11. Authorisation 11.1 The auditor for this assignment was D. Arachchilage. The supervising auditor was J Clark. This report is authorised for issue: 12. Distribution 12.1 The final report will be issued to: T Glen, Chief Executive C Mailer, Depute Chief Executive E Ritchie, Strategic Lead – Housing & Communities S Marone, Strategic Lead – Economy, Development & Planning S Walker, Strategic Lead – Finance & Business Support J Beveridge, Strategic Lead – Property Services A McCallum (Service Manager - Housing - Communities), J McColl (Service Manager (Housing)Communities - Repairs & Improvements, N Lennon (Service Manager - Capital Projects & New Build), M Smith (Service Manager - Perth City and Specialist Services Communities - Perth City & Specialist) C Wilson (Business Support Service Manager – Finance & Business Support) N Sworowski (Place Strategies Manager & Chief Planning Officer Communities - Planning & Housing Strategy) Committee Services External Audit 13. Assessment Definitions 13.1 The following table contains the definitions of the control objective assessment. Control Objective Assessment Level of assurance Definition Substantial Assurance A sound system of governance, risk management and control exists, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited. Reasonable Assurance There is a generally sound system of governance, risk management and control in place. Some issues, non- compliance or scope for improvement were identified which may put at risk the achievement of objectives in the area audited. Limited Assurance Significant gaps, weaknesses or non-compliance were identified. Improvement is required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited.
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No Assurance Immediate action is required to address fundamental gaps, weaknesses or non-compliance identified. The system of governance, risk management and control is inadequate to effectively manage risks to the achievement of objectives in the area audited. 13.2 The following table contains the definitions applied by Internal Audit in rating audit findings/actions. Risk Rating for Individual Findings Rating Rating description Definition 5 Critical Significant observations / major concerns which require immediate action. Management will need to add these to the appropriate Service risk register Issue represents a control weakness which could cause, or is causing, severe disruption of the process or severe adverse effect on the ability to achieve process objectives 4 High Significant observations regarding the absence / failure of key controls requiring urgent action. Management should consider adding these to the appropriate Service / divisional risk register Issue represents a control weakness which could have, or is having, major adverse effect on the ability to achieve process objectives 3 Medium Observations regarding the effectiveness of key controls requiring reasonably urgent action. Management should consider these when updating any divisional / team risk registers Issue represents a control weakness which could have, or is having, significant adverse effect on the ability to achieve process objectives 2 Low Minor observations regarding the adequacy of controls which require action to improve the efficiency, effectiveness, or economy of operations or which otherwise require to be brought to the attention of Senior Management Issue represents a minor control weakness with minimal but reportable impact on the ability to achieve process objectives 1 Trivial / Minor Very minor observations which will be raised during the audit and may not be included within the final report
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Issue represents a very minor control weakness with negligible impact on the ability to achieve process objectives. The issue will be raised during the audit and may not be included within the final report.