Minute of Meeting of Audit and Risk Committee of 29 June 2026 for Approval
Perth and Kinross Council · 21 September 2026
Back to Audit and Risk Committee — 21 September 2026 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 29 June 2026 at 1.00pm. Present: Councillors D Illingworth, B Brawn, L Barrett, M Frampton (substituting for K Harvey), G Laing (substituting for A Chan), I MacPherson and G Stewart. In Attendance: L Simpson, Strategic Lead – Legal and Governance; S Walker, Strategic Lead – Finance and Business Support; A O’Brien, J Sailsbury and G Walker (Finance and Business Support); P Johnstone and L Hamilton (Strategic Planning, People and Performance), N Lennon (Housing and Communities); S Thompson (Health and Social Care Partnership); J Clark, K Molley, E Ferguson and M Pasternak (all Legal and Governance). Also in Attendance: P Bryan (Audit Scotland). Apologies: Councillors A Chan and K Harvey Councillor D Illingworth, Convener, Presiding. 1. Welcome and Apologies/Substitutions The Convener welcomed everyone to the meeting and apologies and substitutes were 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 23 March 2026 for Approval The minute of meeting of the Audit and Risk Committee of 23 March 2026 was submitted and approved as a correct record apart from a typo under item 6. 25-09 - Petty Cash where the sentence to be corrected to ‘consolidation of finance’. 4. Outstanding Business Statement Resolved: (i) The contents of the Outstanding Business Statement, be noted. (ii) It be agreed that completed actions would be removed from the Outstanding Business Statement.
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5. Unaudited 2025/26 Annual Accounts (Draft) There was submitted a report by Chief Finance Officer (26/190) presenting the Council’s unaudited 2025/26 Annual Accounts (draft) in accordance with the Local Authority Accounts (Scotland) Regulations 2014. Councillor G Laing queried how confident the Chief Finance Officer was that Audit Scotland would produce the audited accounts by 30 November 2026. S Walker confirmed that the Council have had positive conversations with Audit Scotland and that they are on track to deliver the accounts by 30 November. S Walker added that they are hoping to be able to bring the accounts even earlier for consideration, however, do not want to make any commitment at this stage. In response to a question from Councillor G Stewart regarding support to the Proper Officer, S Walker referred to a recent publication by CIPFA which set out what the Chief Finance Officer should expect in terms of being able to deliver a professional finance team that are competent and capable to produce the information required by the Council. S Walker highlighted the positive work being carried out by the finance team in Perth and Kinross Council, including the work to deliver the unaudited accounts to Audit Scotland on time. S Walker confirmed that he was comfortable with the abilities of the finance team but advised there are opportunities for him to raise any issues with Elected Members or Senior Officers if he felt that it was necessary. In response to a supplementary question from Councillor G Stewart regarding resilience, S Walker advised that there are several young people going through CIFPA courses to gain qualifications and confirmed that the Council are in a better position over recent years in relation to succession planning. Councillor B Brawn queried how confident the Chief Finance Officer was that Audit Scotland would concur with his view that the Council is fit for purpose. S Walker expressed that he was very confident that the Council would receive a clean audit certificate. S Walker added that officers have regular conversations with Audit Scotland around any issues or matters arising and confirmed that work was being carried out with Audit Scotland all year round. In response to a supplementary question from Councillor B Brawn, S Walker confirmed that the Council does have financial challenges ahead. S Walker advised that he was confident that the organisation would continue to deliver essential services, however, those services may need to be delivered differently. S Walker added that the Strategic and Executive Leadership teams are starting to look at the budget setting process for 2027/28 to see what can be brought forward, which would then be reported through the budget review groups. Councillor G Laing quired if the Council are looking to set aside more to maintain and improve the Council’s capital assets, S Walker advised that as part of the budget process, money had been invested into bridges and roads, however there would not be enough finance due to the size of Perth and Kinross. S Walker added that teams involved are applying a risk-based approach and continue to monitor sites, especially throughout bad weather events. S Walker confirmed that through conversations at the Corporate Investment Group and the Asset Management
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Group, colleagues are doing what they can to keep on top of the Council’s key assets. Members thanked the finance team for their work in preparing the draft accounts and highlighted that the narratives in the management commentary are more user friendly. Resolved: (i) The Chief Finance Officer, be authorised to sign the unaudited 2025/26 Annual Accounts. (ii) It be noted that it is anticipated that the unsigned audited 2025/26 Annual Accounts will be considered by the Audit & Risk Committee on 30 November 2026. 6. Perth and Kinross Council Best Value Thematic Work – Asset Management There was submitted a report by Audit Scotland (26/191) (1) setting out the findings and four recommendations for improvement contained in the Perth & Kinross Council Best Value Thematic Work on Asset Management; and (2) providing a response and details actions that will be progressed in respect of the recommendations. P Bryan, Audit Scotland, provided a summary of the report. Councillor L Barrett referred to the first key message that states the Council’s asset challenge process provides a good model to inform decision making, however, data to fully implement the process for property assets is lacking, limiting its effectiveness and queried how the issue would be addressed. S Walker confirmed that the Council does hold a lot of data, but that data was not currently held for all assets. G Walker added that the key message was referring to utilisation data which the Council currently holds for Perth and Kinross school estate. G Walker confirmed that once an area of review had been undertaken, the utilisation data would be captured for assets at that time. Councillor G Laing queried the definition of capital project and asked if it be due to a project being over a certain numerical value or due to strategic importance in a specific area of Perth and Kinross. P Bryan confirmed that there was not a clear definition in place and that Audit Scotland are working with the Council on criteria. S Walker added that officers have assessed projects which they think Elected Members would be interested in, which could be a mixture of high and low monetary values. S Walker added that words would be included in the next capital monitoring report to the Finance and Resources Committee to say that projects would continue to be assessed on an individual basis. In response to a question from the Convener regarding the four recommendations of the report, P Bryan confirmed that the recommendations are largely administrative points but advised that the most significant one to address
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would be recommendation two as this would be a larger piece of work for the Council in terms of creating the performance measures and being clear on what and how often information should be reported. P Bryan confirmed that overall the report was positive and that the recommendations outlined are more suggestions going forward to ensure that good practice remains in place. Members thanked officers and Audit Scotland for the positive report. Resolved: The Contents of Audit Scotland’s Best Value Thematic Work, be noted. 7. Internal Audit Follow Up There was submitted a report by Chief Internal Auditor (26/192) presenting current summary of Internal Audit’s ‘follow up’ work relating to actions due for completion up to April 2026. Councillor L Barrett referred to the actions on business continuity plans and queried how confident the Chief Internal Auditor was that the next set of deadlines would be achieved. J Clark confirmed that for the remaining two BCPs, one service are currently awaiting a test on their BCP to take place and in the other service, there are significant areas which have their own standalone business continuity arrangements which are regularly being tested, however, the information had not yet been consolidated into one plan for that strategic area. J Clark added that she had been advised that the actions would meet the September deadline. Resolved: The current position in respect of the agreed actions arising from Internal Audit’s work, be noted. 8. Internal Audit Update There was submitted a report by Chief Internal Auditor (26/193) presenting a summary of Internal Audit’s work undertaken as part of the Internal Audit Plans for 2024/25 and 2025/26. Resolved: The progress with Internal Audit activity, be noted. 9. Internal Audit – 25-04 Health and Safety There was submitted a report by Chief Internal Auditor (26/194) presenting an audit undertaken on Health and Safety as part of the Internal Audit Plan for 2025-26, which was approved by the Audit & Risk Committee in June 2025.
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Councillor G Laing asked for further information about the role of the health and safety team. L Hamilton confirmed that the health and safety team sits in People and Culture Services within the Council, and the role of the team would be to support managers in discharging their responsibilities. L Hamiton added that in areas such as Friarton or housing repairs, there are many staff with higher risk activities. L Hamilton added that someone from the health and safety team works closely with the senior managers in those areas to provide support in terms of health and safety. L Hamiton advised the Council does not use external consultants for health and safety. Councillor L Barrett raised concerns over the 23 actions detailed in the audit and queried if the timescales in the management plan are sufficiently robust to address the risk and if the deadlines would be achieved. P Johnstone confirmed that management are responsible for health and safety in their own area of work, for ensuring robust risk assessments and safe systems of work are in place and that staff that are undertaking certain activities have been fully trained. P Johnstone added that conversations had been held with internal audit and services in preparation of the report and advised that she felt the timescales included were realistic and meet with the risk level placed against them. Councillor L Barrett asked if members concern could be passed to services given the seriousness with some of the actions. Members thanked J Clark, her team and other relevant officers for their work on the audit. Resolved: The contents of Report 26/194, be noted. 10. Internal Audit – 25-07 Insurance There was submitted a report by Chief Internal Auditor (26/195) presenting an audit undertaken on Perth and Kinross Insurance as part of the Internal Audit Plan for 2025-26, which was approved by the Audit & Risk Committee in June 2025. Members thanked J Clark, her team and other relevant officers for their work on the audit. Resolved: The contents of Report 26/195, be noted. 11. Internal Audit – 24-04 Affordable Housing There was submitted a report by Chief Internal Auditor (26/196) presenting an audit undertaken on Perth and Kinross Affordable Housing as part of the Internal Audit Plan for 2024-25, which was approved by the Audit & Risk Committee in June 2024. Councillor G Stewart referred to the relationship between the property team and the paralegals and queried if shared access had been put in place for buybacks to enhance efficiency and communication, instead of having standalone records. N
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Lennon advised that two record keeping systems were still in place, however, confirmed that the paralegals now have access to the documentation raised by the buyback officer. N Lennon added that there has been agreement to meet twice a year to raise any issues. In response to a question from the Vice-Convener regarding the nature of the audit, J Clark confirmed that the audit was undertaken on the delivery of affordable housing provision and that a specific reference to buybacks had been included due to the high numbers that had exceeded annual targets. J Clark confirmed that across the board the arrangements are satisfactory, however, the actions have been put in place so the Chief Internal Auditor can be able to place substantial assurance over the Council’s achievements on affordable housing. In response to a question from the Convener, J Clark confirmed that good progress has been made and anticipated that she would be able to place substantial assurance once all actions are completed. Members thanked J Clark, her team and other relevant officers for their work on the audit. Resolved: The contents of Report 26/196, be noted. 12. Internal Audit Annual Report & Internal Audit Opinion 2025/26 There was submitted a report by Chief Internal Auditor (26/197) presenting the year-end report and audit opinion of the Chief Internal Auditor for 2025/26. In response to a question from Councillor G Laing regarding the Global Internal Audit Standards, J Clark advised that with the new standards there had been little difference shown in the way that internal audit carry out their audits, however, confirmed that the GIAS have created greater emphasis on the governance around internal audit and the requirements for evidencing. The Vice-Convener referred to whistleblowing and queried if internal audit receives many requests through the email or telephone line from employees with concerns at work. J Clark confirmed that internal audit does not receive many requests through the helpline which was positive. J Clark added that for issues to reach this level, it would imply there had been a failing or breakdown in communication earlier in the process. An employee should be able to raise a concern with their line manager or Strategic Lead, and the issue should be sufficiently dealt with at that point. Resolved: The contents of this report, be noted, specifically the conclusion of the Chief Internal Auditor, which states that reasonable reliance can be placed on the Council’s risk management and governance arrangements, and systems of internal control for 2025/26.
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13. Internal Audit Mandate & Charter There was submitted a report by Chief Internal Auditor (26/198) presenting Internal Audit’s Mandate and Charter, in accordance with the Global Internal Audit Standards in the UK Public Sector (GIAS (UKPS)). 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 and it be confirmed it accurately reflects their understanding and expectations of the IA function. (There followed a short recess and the meeting reconvened at 2.27pm) 14. Internal Audit Strategy & Plan 2026/27 There was submitted a report by Chief Internal Auditor (26/199) 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 2026/27. In response to a question from Councillor G Laing regarding elected member input into the plan, J Clark confirmed that the idea could be taken forward and that she would look to formally consult with members of the Audit and Risk Committee over the next plan. Resolved: The strategy and plan for 2026/27, be approved. 15. National Fraud Initiative 2024/25 Outcomes There was submitted a report by Chief Internal Auditor (26/200) outlining the action that has been taken by Perth & Kinross Council in response to the requirements of the National Fraud Initiative for 2024/25. Councillor G Laing asked for further information regarding the process of blue badges when someone has passed away and queried if there had been any cases of others using a blue badge when it does not belong to them. J Clark confirmed that the process Tell Us Once would be used in connection with blue badges so if a death has been registered in Perth and Kinross and badge was held, the badge would be cancelled. J Clark added that internal audit did not see any instances of fraud after someone had passed, however, J Clark agreed that majority of errors could be that blue badges have been disposed of or left somewhere not used. In response to a supplementary question from Councillor G Laing, J Clark confirmed that blue badges would need to be reapplied for every three years or they would become invalid. J
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Clark confirmed that internal audit did not receive any reapplications following the death of a holder. Resolved: (i) It be noted that Perth & Kinross Council takes seriously its obligations for taking part in the NFI exercise. (ii) The actions taken by Perth & Kinross Council in response to the requirements of the NFI, be noted. (iii) It be noted that the 2024/25 exercise is now complete, with financial outcomes for Perth & Kinross recorded as £131,236.42. 16. Strategic Risk Annual Report There was submitted a report by Strategic Lead – Legal and Governance (26/201) (1) providing assurance that the Council’s Risk Management Framework is adequate and effective and (2) advising the Committee of the current key strategic risks facing the organisation and how these risks are being mitigated and managed. Members thanked officers for their work in developing and monitoring the Strategic Risk Register. Resolved: (i) The contents of Report 26/201, be considered and appropriate and 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 – Appendix 1 SR06 Resolved: The contents of the risk SR06 be noted and assurance be accepted. P2. Internal Audit Follow Up – Appendix 2 There was submitted a report by Chief Internal Auditor (26/192) presenting a current summary of Internal Audit’s ‘follow up’ work relating to actions due for completion up to April 2026 (Parkdale Care Home).
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Resolved: The current position in respect of the agreed actions arising from Internal Audit’s work, outlined in Appendix 2 to Report 26/192, be noted. P3 Parkdale Progress Update There was submitted a report by Chief Internal Auditor (26/202) providing the Audit & Risk Committee with a progress report on the control environment at Parkdale following the appointment of new management. This was as a result of the initial whistleblowing report considered by the Audit & Risk Committee in December 2025. Resolved: The progress of the Internal Audit activity, be noted.