Internal Audit Strategy and Plan 2026-27
Perth and Kinross Council · 29 June 2026
Back to Audit and Risk Committee — 29 June 2026 and its agenda
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Audit & Risk Committee Date of Meeting: 29 June 2026 Report Title: Internal Audit Strategy & Plan 2026/27 Report Number: 26/199 Report Author: Jackie Clark, Chief Internal Auditor Organisational Lead: Strategic Lead – Legal and Governance ___________________________________________________________________ 1. Purpose 1.1 The purpose of this report is to present 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 2026/27 1.2 Sections 1. Purpose 2. Recommendation(s) 3. Background/Context 4. Main Issues 5. Proposals 6. Conclusion 7. Impact Value Assessment 8. Appendices 2. Recommendation(s) It is recommended that the Committee: 2.1 approves the strategy and plan for 2026/27. 3. Background/Context 3.1 The Global Internal Audit Standards in the UK Public Sector (GIAS (UKPS)) requires that the Chief Audit Executive should create an internal audit plan at least annually, which considers all areas of the organisation’s business and its governance, risk management and control processes. The Plan should be regularly reviewed and dynamic in terms of being responsive to organisational need.
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3.2 The Council’s strategic delivery of internal audit services is through a directly employed team, with the option to bring in specialties as required to ensure an adequate service delivery. 3.3 Internal Audit’s strategy is to deliver a risk-based Internal Audit service by designing planned activity around the Council’s key risks to achieving its objectives. Internal Audit also aims to add value to the organisation by ensuring that there is appropriate and enabling risk management, governance and controls in place. 3.4 In order to comply with GIAS (UKPS), there is a need for the further assessment by Internal Audit of the assurances provided by internal and external sources, and the degree that reliance can be placed on these activities. This forms part of the Internal Audit Plan for 2026/27. 3.5 In addition, evidence provided to support the Annual Governance Statement has been examined. Information in relation to external inspections by regulators and other bodies has also been taken into account, where available, along with the outcomes from previous Internal Audit reviews. 3.6 As in previous years, the Internal Audit Plan proposes a thematic approach to elements of Council activity and risks assessed. The detailed scope of each assignment will be agreed prior to the commencement of each thematic review. 3.7 Cumulative audit knowledge and experience has been drawn upon, from our knowledge of the organisation, awareness of significant changes in systems processes and personnel, previous Internal Audit involvement in areas of activity and from our analysis of the risks faced by individual functions in delivering their objectives. This has resulted in the identification of some specific areas for Internal Audit activity in 2026/27. 3.8 Reports arising from Internal Audit activity will be presented to the Audit & Risk Committee except where the assignments are consultative in nature. A summary of the work undertaken will be provided as part of the routine Update reports, as agreed in in June 2016 (Report 16/306 refers). The outcomes from these assignments will be taken into consideration in arriving at future Internal Audit Plans. 4. Main Issues Internal Audit resources 4.1 Resources for Internal Audit activity in year is 3.6 full time equivalent posts available plus the Chief Internal Auditor. These resources will be available to undertake the Perth & Kinross Council and Integration Joint Board Internal Audit Plans; ad-hoc advice and consultancy; investigations into fraud and corruption; facilitate the National Fraud Initiative and overseeing the whistleblowing arrangements.
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4.2 An allocation of resources is made annually for tasks relating to counter-fraud and corruption activity, including the oversight and facilitation of the National Fraud Initiative. 4.3 An important part of the Internal Audit process is the verifying of the implementation of agreed actions arising from Internal Audit reports. An allocation of resources is made to support this process and to ensure that Elected Members are informed of the status of actions arising from previous audit reports. 4.4 The Internal Audit service for the Integration Joint Board is provided jointly by officers from Perth & Kinross Council and NHS, with the role of Chief Internal Auditor being held by Perth & Kinross Council. Resources are set aside for the provision of this Service. 4.5 2026/27 represents the second year of the GIAS (UKPS) being in place, and some additional resources will be directed to ensuring that the Internal Audit Service is able to demonstrate further conformance with these Standards. Furthermore, resources are released to ensure that appropriate professional development is undertaken within the team. 4.6 The leaves approximately 60% of audit time to be dedicated to planned internal audit activity. 5 Proposals 5.1 The Strategic Risk Register is being presented for consideration at this meeting of the Audit & Risk Committee. Internal Audit has an overview of the arrangements for its development and have placed reliance on its content. The key themes identified for inclusion within the Internal Audit Plan for 2026/27 are taken from the Strategic Risk Register, in consultation with the Strategic Leadership Team. 5.2 In addition, the requirements of GIAS (UKPS) have influenced some areas of focus around internal assurances for 2026/27, which require to be validated to enable formal assurance to be placed on their effectiveness. 5.3 Additional work arising from past advisory work and whistleblowing disclosures have also informed the focus for some assignments within the proposed plan. 5.4 Two assignments from the 2025/26 Plan appear on the table below, these being Strategic Partnering within Environment & Infrastructure and Risk Maturity. The former is a consultancy assignment, where Internal Audit is represented on a working group which continues into 2026/27. The latter is an assignment which is still required but has not yet been undertaken in year.
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5.5 A blended model of assurance and advisory/consultancy activity is proposed within the table below. The table also highlights where audits are directly linked to the risk register, enable assurance to be placed on internal processes going forward, or arising out of other work, such as previous advisory or whistleblowing disclosures. 5.6 In line with the requirements of GIAS (UKPS), the Internal Audit Plan should be dynamic. Therefore the Committee should note that there may be in-year changes to adapt to circumstances not yet appreciated. Audit Theme Strategic risk / audit type Strategic Lead Portfolio Brief description Strategic Partnering (continuing) 05 Advisory Environment & Infrastructure Carried forward. To provide advice / support for service redesign and transformation Risk Maturity (from 2025/26) Internal assurance Strategic Planning, People & Performance Carried forward. To review the Council’s risk maturity in line with best practice. Forward Planning Advisory Strategic Planning, People & Performance To support the review of corporate priorities Assurance Mapping Internal Assurance Whole Council To work with Strategic Leads to complete an assurance mapping exercise Throughcare & Aftercare 01 Assurance Children, Families & Justice To ensure that the Council meets current requirements for care experienced young people. Organisational Behaviour All risks Assurance Whole Council To apply the IIA’s Topical Requirement for the review of the design and implementation of governance, risk management and control processes related to organisational behaviour. Complex Needs Project 01 Assurance Children, Families & Justice To ensure the effectiveness of the project in delivering outcomes Treasury Management 08 Assurance Finance & Business Support To ensure controls are in place for treasury management.
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Customer Insights Assurance Customer & Digital/ Finance & Business Support To review the arrangements in place for identifying improvements from customer interactions. IT Incident Management 06, 07 Assurance Customer & Digital To ensure that arrangements in place for managing IT incidents are effective. School Estate Management 10 Assurance Property Services To review arrangements for ensuring the school estate remains fit for purpose. Tay Cities Deal 03 Assurance Economy, Development & Planning To review local governance, risk and delivery arrangements Planning Applications Assurance Economy, Development & Planning To ensure that the arrangements in place for processing planning applications and the decision making process is robust and effective. Public Accessibility Regulations Assurance Strategic Planning, People & Performance To review the arrangements in place to ensure that the Council conforms to the Public Accessibility Regulations. Transformation Delivery & Outcomes 05 Assurance Programmes & Projects To ensure that transformation continues to deliver the desired outcomes in terms of benefits realisation and governance, including reporting. 5.7 Furthermore, GIAS (UKPS) requires the Chief Internal Auditor to consider assignments which would be included within the Internal Audit Plan if additional resources were available and for these to be reported to the relevant Committee. The following table includes such assignments, which form part of the “reserve” list in the event that they can be accommodated within year.
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Audit Theme Strategic risk / audit type Strategic Lead Portfolio Brief description Family Group Decision Making 01 Assurance Children, Families & Justice To ensure the effectiveness of arrangements in place. Unpaid Work 01; 04 Assurance Children, Families & Justice To ensure that National Standards are being achieved Housing Applications Assurance Housing & Communities To ensure that applications for housing are appropriately managed. Anti-poverty 04 Assurance Strategic Planning, People & Performance To ensure maximum benefit is being achieved through the use of allocated funding. To ensure that governance arrangements support the anti-poverty agenda. 6 Conclusion 6.1 In addition to fulfilling the GIAS (UKPS) requirement to provide a risk-based Internal Audit Plan for 2026/27, this proposed Plan also assists in demonstrating the degree to which reliance can be placed on internal sources of assurance, which is also required by GIAS (UKPS). 6.2 There will be an ongoing review of the emerging risks faced by the Council to ensure that these themes cover the areas of highest risk in achieving the Council’s objectives. 6.3 The Plan is designed to be dynamic and proportionate. Any changes to the Plan in-year, and the rationale, will be reported to the Audit & Risk Committee. 7. Impact and Value Assessment 7.1 This report has been classified as being an operational report and as such does not require a full Impact and Value Assessment. 8. Appendices 8.1 Not applicable