Annual Audit Report 25 to 26 for Council
Renfrewshire Council · 22 June 2026
Back to Council — 22 June 2026 and its agenda
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To: Council On: 22 June 2026 Report by: Director of Finance & Resources Heading: AUDIT, RISK & SCRUTINY BOARD ANNUAL REPORT 2025/26 1 Summary 1.1 The Chartered Institute of Public Finance and Accountancy (CIPFA) guidance recommends that all audit committees should “prepare an annual report that provides assurance to all those charged with governance that it fulfils its purpose and can demonstrate its impact.”. (Audit Committees Practical Guidance for Local Authorities and Police, published by CIPFA in 2022). 1.2 Taking the CIPFA guidance into account, the reporting dates for this Annual Report is from 1 April 2025 to 31 March 2026 and this report provides an overview of the Audit, Risk & Scrutiny Board (the Board) activity during the financial year 2025/26 and a summary of key developments. 1.3 This report has been prepared to inform Renfrewshire Council of the work carried out by, and the impact of, the Audit, Risk & Scrutiny Board and provides details of the Board’s membership and attendance. It sets out how the Board has fulfilled its remit and provides assurance to those charged with governance that it has fulfilled its purpose and demonstrated its impact. 1.4 The annual report is timed to support the annual review of governance and preparation of the Annual Governance Statement. This enables the Board to take stock of the assurances it has received and the extent to which its own performance has contributed to governance arrangements. 1.5 This annual report is submitted to the Board in terms of the Council’s Code of Corporate Governance and highlights the issues considered by the Board during 1 April 2025 to 31 March 2026. Public
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Internal Audit reports, together with monitoring the progress made by management in completing agreed actions to improve the Council’s control environment. It also considered the status of external audit action plans arising from external audit reports received and the external audit annual plan for 2025/26 from the external auditors in March 2025. 2 Recommendations 2.1 That the Audit, Risk & Scrutiny Board Annual Report 2025/26 and appendices be noted. 3 Background and Context 3.1 Remit and Role of the Board The Audit, Risk & Scrutiny Board is a key component of the Council’s governance framework. Its purpose is to provide an independent and high-level focus on the adequacy of governance, risk and control arrangements. The Board’s role in ensuring that there is sufficient assurance over governance risk and control gives greater confidence to all those charged with governance that those arrangements are effective. The Board has oversight of both internal and external audit together with financial and governance reports, helping to ensure that there are adequate arrangements in place for both internal challenge and public accountability. 3.2 Scrutiny enables Members to review decisions, policies and performance that affect the Council and helps to ensure that the services and policies meet the Council’s aims and standards. The scrutiny process not only provides a means of reviewing the Council’s own services but also challenging whether the Council is on track to achieve its performance targets and meet its objectives. Members will highlight areas where value for money may be an issue and enables examination of services provided by other organisations on issues causing public concern. 3.3 To fulfil the remit, the Board sought assurance on the adequacy and effectiveness of the Council’s systems of governance, risk management and internal control to ensure efficient operations and the highest standards of probity and accountability. This was achieved through reports received from Internal Audit, other Council services and External Audit with focus in particular on internal control and governance. Public 1.6 On a quarterly basis the Board considered key risks and assurances from
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4 Core Functions of the Audit Committee 4.1 The core functions of the Audit, Risk & Scrutiny Board reflect both standard practice for audit committees across all sectors and the specific legislative and professional standards requirements for local authorities. The CIPFA Position Statement sets out the core functions of the audit committee as follows: ƒ Supporting the establishment and maintenance of good governance, risk management and control arrangements; ƒ Supporting accountability and public reporting, in particular, the financial statements and the annual governance statement, and other statements that accompany the financial statements; and ƒ Supporting the establishment and maintenance of good arrangements for internal and external audit. 4.2 The Audit, Risk & Scrutiny Board met eight times during 2025/26 comprising meetings on 19 May, 18 August, 22 September, 3 November 2025, 19 January, 16 March 2026 and two Special meetings held on 17 April and 20 October 2025 respectively, to consider reports relevant to the Audit cycle and other matters as deemed appropriate. 4.3 Pre agenda meetings were also held ahead of the Board meeting involving the Convenor, Depute Convenor and appropriate officers to allow for informal discussion, briefing Members on key issues, and facilitating a more efficient and informed decision-making process. 4.4 All Pre-agenda meetings were held using the Microsoft Teams platform to allow remote participation. The Board meetings were held on a hybrid basis, with members and officers able to attend either in-person or via Microsoft Teams, and were webcast for live and retrospective viewing by the public on the Council's live-streaming website. 5 Structure/Membership of the Board, Political Balance and Attendance 5.1 As per CIPFA guidance, the Board does not play any role in the day-to-day operational or strategic management of the Council. It is a non-political, independent Board, advisory in its capacity on behalf of those charged with governance. It is not a decision-making body with respect to the policy and service areas and therefore makes recommendations in these areas for referral back to full Council for ratification. The Audit, Risk & Scrutiny Board does, however, make decisions on audit-related items which are within its agreed remit. Public
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5.2 The Board comprises of nine Elected Members drawn from all the political parties/independent members represented on the Council, having regard to the party balance on the Council (three Administration, three Labour, one Conservative and two Independent). The quorum of the Audit, Risk & Scrutiny Board is three Elected Members. 5.3 CIPFA advises that “Elected Members of local authorities are part of the body charged with governance and bring knowledge of the organisation, its objectives and policies to the Audit committee”. Members with experience in scrutiny or standards offer additional knowledge of activity, risks and challenges affecting those areas. Ideally, the selection of Elected Members to the audit board should take account of aptitude and experience. 5.4 The Convener is an independent member, and the Depute Convener is from an opposition party. 5.5 In terms of the Council’s Procedural Standing Orders, the rest of the members have been drawn from the political parties represented on the Council on a proportionate basis, having regard to party balance on the Council. 5.6 There have been no changes to membership of the Board since last year and Members have settled into their role, developing their skills, knowledge and experience through the induction and development programme. 5.7 It should be noted that members of the Leadership Board and members who are Conveners of another Board may not be Members of the Audit, Risk & Scrutiny Board. 5.8 At a development session on 26 February 2024, Board members agreed it would be appropriate for there to be an option for the Board to appoint up to two individuals as non-voting lay members where they identified any need for specific assistance or any deficiencies in areas of experience of Board Members. 5.9 At the Audit, Risk & Scrutiny Board held on 18 March 2024, the members considered a report entitled CIPFA Audit Committee Guidance – Self Assessment and Action Plan. The report proposed that “the Board may appoint up to 2 individuals as non-voting lay members to bring access to external expertise, knowledge or experience, as necessary”. Lay members should be appointed by the Council after a recommendation from an interview panel chaired by the Convenor of the Audit, Risk and Scrutiny Board. Lay members should not be a member of any political party. 5.10 The Board’s request to change the Guidelines for Operation of the Audit, Risk & Scrutiny Board was agreed at the Council Meeting of 9 May 2024 to accommodate this decision. The Board has not sought to recommend any specific appointment to Council since this change was agreed. Public
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5.11 The membership and attendance of the Audit, Risk & Scrutiny Board are as follows:- ELECTED MEMBER PARTY POSITION APPOINTED TO BOARD POSSIBLE NO OF MEETING TO ATTEND MEETINGS ATTENDED Andy Doig IND Convener June 2022 8 8 J McDonald LAB Depute-Convener (appointed Feb 2024) June 2022 8 7 J Adam SNP Member June 2022 8 7 G Graham LAB Member December 2024 8 8 L Hughes SNP Member June 2022 8 7 R Innes SNP Member June 2022 8 5 J MacLaren CONS Member June 2022 8 6 B Smith LAB Member February 2024 8 8 W Mylet IND Member 1 May 2025 8 4 5.12 Attendance by Officers at the Board Meetings All Audit, Risk & Scrutiny Board meetings were attended by the Chief Auditor, Head of Corporate Governance and the Director of Finance & Resources. Other senior officers also attended meetings as appropriate for items of business for which their presence was relevant. Representatives from the appointed Council’s external auditors - Azets Scotland, were also present at all of the meetings. A Senior Committee Services Officer is allocated to the Board to ensure the lawful, efficient operation of the Board meetings by providing expert procedural advice, drafting minutes, supporting governance, making the necessary administrative arrangements for meetings, development sessions and being responsible for the Programme of Reviews on behalf of the Board. 6 Governance Arrangements 6.1 Internal control, governance and risk management arrangements are in place to help ensure the Council makes appropriate use of its resources and powers. The Audit, Risk & Scrutiny Board is a key component of governance. Its purpose is to provide an independent and high-level focus on the adequacy of governance, risk and control arrangements and the Board plays an important role in supporting leadership teams and elected representatives and helps the Council to achieve its priorities. Public
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6.2 The Audit, Risk & Scrutiny Board is different from the other Council’s Boards. It is politically neutral with the Convener and Depute Convener being selected from either different parties or being non-affiliated. The role of the Convener is undertaken from outwith the Administration and Party Whips do not apply. The Board reports to the full Council. 6.3 Following the Independent External Review Report in 2024 (“the Bowles Report”), Renfrewshire Council has focused on strengthening governance, improving financial sustainability amid high inflation, and rebuilding community trust. Key actions include a Leadership Development Programme for senior management, a cross-party working group for governance review, and a revised focus on "Plan 2022-2027". There is now a wide-ranging set of governance structures, delivery mechanism and collaborative procedures in place to support the running of the Council and these are reassessed each year by Internal Audit and reported through the Board. It should be noted that the Council’s external audit arrangements have never flagged any material issues with governance arrangements in the Council, however, there are always opportunities to improve and strengthen governance arrangements. 6.4 The Terms of Reference for the Board differ from other Policy Boards as there is no general delegation on specific service performance monitoring. The Board has specific delegations:- x Audit: Including acting as the Council’s Audit Committee; x Corporate Governance: The Council’s code of corporate governance; x Risk Management: Including approval of the risk management strategy; x Monitoring and Reviewing Service Delivery Performance, Policies and Practices; x Community Leadership through Monitoring of Other Public Bodies; x Standards and Ethics: in relation to Elected Members; and x Written Intimations: Specific requests from Members of the Board. 7 Audit, Risk & Scrutiny Board Activity and Issues considered by the Board during 2025/26 7.1 Audit of Accounts - The Board at a special meeting held on 20 October 2025 considered a report relative to the audit of the Council’s 2024/25 accounts. Each year the Council's appointed external auditors carry out an audit of the Council’s financial statements and provide an opinion as to whether the statements provide a true and fair view of the financial position of the Council and its income and expenditure for the year; and whether they had been prepared in accordance with the relevant regulations. Public
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7.2 External Audit and External Audit Plan 2025/26 – The Board at the meeting held on 16 March 2026 considered a report which outlined Azets’ approach to the audit of the 2025/26 annual accounts and the Coats Observatory to assess whether they provided a true and fair view of the financial position of the Council, and whether they had been prepared in accordance with proper accounting practice. The plan outlined the responsibilities of Azets and the Council, their assessment of key challenges and risks and the approach and timetable for completion of the 2025/26 audit. At a special meeting held on 17 April 2025, the Chief Executive submitted a follow-up report from Azets which advised that a Controller of Audit Best Value report was being prepared by Audit Scotland and would be presented to the Accounts Commission on 15 May 2025. The work underpinning this included a focus on following up on previous audit recommendations related to the Section 102 reporting in January and August 2024. The key points to note were outlined in the report, alongside the Council’s response to the sole recommendation. At the meeting of the Board on 22 September 2025, Azets, submitted a Best Value Thematic report as part of the annual audit process. The report noted that the Accounts Commission had directed auditors to report on transformation in each local authority. The report presented background information on Renfrewshire Council’s transformation agenda and summarised the findings of the external auditor in relation to the scope set out in the report. 7.3 Annual Internal Audit Plan 2026/27 – The Board at the meeting held on 16 March 2026 agreed a risk-based internal audit plan for 2026/27. The plan considered the outcomes of the internal corporate and service risk identification and evaluation processes, and the current business environment. In addition to undertaking work which would provide assurance on the robustness of key internal controls, the plan sought to reflect the key priorities and challenges for the Council. Public The report advised that there were five material adjustment made to the annual accounts over the course of the audit in relation to: restatement of group comparative figure due to overstatement of other long-term asset due to asset ceiling cap of £31.788m and understatement of other long-term liability due to unfunded liability portion of £0.501; overstatement of the group’s other long- term asset of £41.941m due to asset ceiling cap and understatement of other long-term liability due to unfunded liability portion of £0.440; unfunded pension liabilities restatement – this followed a review by the Finance team of all unfunded pension benefits where the Council was the employer; holiday pay creditor restatement – the figure was uplifted by the increase in NI that came into effect on 1 April 2025; and right of use assets restatement – the Clyde Valley Waste contract model had not been updated for the impact of IFRS16 by the lead authority in time for the publication of the Unaudited Accounts. Other minor and presentational changes were also agreed.
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The report set out the methods that had been employed to facilitate production of the Plan and the influencing factors that had been considered in the assessment of the current business environment and the priority areas of audit. Progress on the 2026/27 annual audit plan and summaries on the findings and conclusions of each audit assignment were reported to the Board on a quarterly basis. 7.4 Internal Audit – The Board, at a meeting held on 19 May 2025 considered the Chief Auditor’s annual report 2024/25 which outlined the role of Internal Audit, the performance of Internal Audit, the strategic and operational issues which influenced the nature of the work carried out, the key audit findings, and contained the annual audit assurance statement. The Board at its meeting held on 18 August 2025 considered a report relative to Global Internal Audit Standards in the Public Sector. The report sought to provide members with an overview of the gap analysis undertaken to determine what actions were required to follow the requirements of the Global Internal Audit Standards and the additional requirements set out in the new Global Internal Audit Standards (GIAS) which came into force in January 2025. At the same Board meeting on 18 August 2025, a report was considered relative to the National Fraud Initiative (NFI) 2025/28. The report advised that the counter-fraud exercise was overseen by the Cabinet Office for the UK as a whole and was part of a range of measures in place across the public sector which aimed to prevent and detect fraud. The National Fraud Initiative 2024/28 Strategy was published in February 2025 by the Public Sector Fraud Authority and aimed to enhance the NFI through innovation, increased data access and insight, whilst maintaining the highest standards of service quality and data security. By improving training and support for participants and fostering greater engagement, it aimed to maximise fraud detection outcomes and build new counter fraud partnerships across sectors. The Board, at the meeting held on 3 November 2025, considered a revised Internal Audit Charter and Mandate that has been updated to take account of the new Global Internal Audit Standards in the UK Public Sector. The main changes involved providing a fuller description of the work of the Internal Audit Service and the roles and responsibilities of the Chief Auditor within the Council and its associated Bodies and clarifying the mandate of the Internal Audit Service. 7.5 Summary of Internal Audit Activity in Partner Organisations - Members of the Audit, Risk & Scrutiny Board expressed an interest in the outcomes of audits undertaken in partner organisations. A proposed revision to the Audit, Risk & Scrutiny Board’s Terms of Reference, to facilitate this, was agreed at a meeting of the Council on 4 May 2024. The Board considered reports at the meetings held on 19 May 2025 and 18 August 2025 which provided Members with a summary of the internal audit arrangements within each partner body. Public
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7.6 Internal Audit Findings – In terms of National guidance, the Board considered quarterly reports on the findings of internal audit in terms of national guidance produced by CIPFA on the implementation of audit committee principles in Scottish local authorities, in line with which internal audit submitted regular reports on the findings of audit work to the Board based on the work of internal audit and detailing the key issues arising. Several of these reports were exempt because of the sensitive nature of the information. The Board considered an annual report on 16 March 2026 which advised members of those internal audit recommendations, which had been classified as critical, where the actions had not been effectively implemented by the agreed due date. The report provided an updated position on critical recommendations that had been followed up during 2025/26 and had not yet been fully implemented by service management. 7.7 Internal Audit and Counter Fraud Progress and Performance – The Board considered regular reports which detailed progress and performance in terms of delivery of the audit plans for the internal audit and counter fraud teams. The reports monitored progress in terms of the delivery of the Audit Plan for the year and compared actual performance against targets set by the Director of Finance and Resources. The Director of Finance & Resources sets annual targets to demonstrate continuous improvement. In terms of counter fraud, due to the diverse nature of fraud referrals, no formal performance targets had been established and the outcomes from investigations were monitored and reported on a regular basis by the Council’s management. 7.8 Strategic, Corporate and Service Risks – The Board, at meetings held on 19 May and 3 November 2025, considered the latest position in managing the Council’s risks entering the respective quarters of the financial year. 7.9 Annual Complaints Handling 2024/25 – The Board at the meeting held on 19 January 2026 considered a report which detailed complaints received by the Council from 1 April 2024 to 31 March 2025 and how this information had been used to ensure that the Council delivered high quality, efficient and responsive services. A summary was included of the numbers and types of complaints received; responded to within timescales; customer satisfaction monitoring; and key complaint areas including what was being done to address the issues raised. The report advised that 10,418 complaints had been received in 2024/25 compared with 10,025 in 2023/24. The report detailed the performance on key indicators, and highlighted improvements made to the complaints handling process over the past year to ensure that complaints were handled well. Public
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7.10 Corporate Governance – The Board, at its meeting held on 16 March 2026 considered a report by the Chief Auditor which reviewed the adequacy and effectiveness of the revised Local Code of Corporate Governance. Internal Audit carried out a sample check of the evidence used to demonstrate compliance and confirmed that the Council complied with the requirements of the Local Code of Corporate Governance. In addition, it was evident that the Local Code had been subject to review and updates in line with developments in best practice and any revised Council Policies. At the same meeting on 16 March 2026 the Audit, Risk & Scrutiny Board considered a report by the Chief Executive which reviewed the Council’s Local Code of Corporate Governance 2026 and provided evidence of how the Council complied with the Code. The evidence presented within the report demonstrated that strong governance arrangements had remained and were in place within the Council, and that Councillors and Officers were working together to lead and manage the Council in order to provide vital public services. 7.11 Records Management Plan – the Board at the meeting held on 19 May 2025 considered an update report which detailed the annual review of the Council’s Records Management Plan (RMP) to guide continual improvement of its record keeping. 7.12 Local Government Benchmarking Framework - The Board at the meeting held on 19 May 2025 considered a report which provided an overview of Renfrewshire Council’s performance for 2023/24, as well as outlining the wider context and trends for local authorities across Scotland. The purpose of the Framework was to support evidence-based comparisons and encourage shared learning and improvement. A Mid-Year report was submitted to the Board held on 3 November 2025. 7.13 Report on Keeping “The Promise” in Renfrewshire 2026 – At the Audit, Risk and Scrutiny Board meeting on 16 March 2025, the Board considered a report relative to the delivery of “The Promise” within Renfrewshire. The report outlined Renfrewshire’s continued progress in delivering Scotland’s Promise and summarised key developments across early help, whole-family support, education, youth voice, employability and children’s hearings. Annual Reports by other Bodies 7.14 Audit Scotland Reports – during the period covered by this report, there were ten reports submitted from Audit Scotland: x Audit Scotland Finance Bulletin 2023/24: Integration Joint Boards x Audit Scotland Briefing: Additional Support for Learning x Audit Scotland: Local Government Budgets 2025/26 x Audit Scotland: Delivering for the future: Responding to the workforce challenge x Audit Scotland - The 2023/24 Audit of Glasgow City Council Senior Officer Exit Packages x Audit Scotland - Spotlight on Culture and Leisure Services x Audit Scotland Cyber Incident Findings: Comhairle nan Eilean Siar Public
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Each report highlighted key points and the Council’s position where available. 7.15 Scottish Public Services Ombudsman (SPSO) – Annual Report 2024/25 – The Board at the meeting held on 19 January 2026 considered a report which highlighted that the health sector was the sector for which the SPSO received most complaints, with local authority cases receiving the second highest number. The report advised that information received separately from the SPSO indicated that the number of complaints determined by the SPSO was 52, compared with 54 in 2023/24. Of the 52 complaints determined during the period, none went to public investigation stage. 7.16 CIPFA – Code of Practice: Governance of Internal Audit in UK Local Government - The Board at the meeting held on 19 May 2025 considered a report which provided members with an overview of the new CIPFA guidance and assurance to members as to how the Council complied with the guidance. The outcomes of a self-assessment exercise by the Interim Chief Auditor and the improvement actions identified were detailed in the Report. 8 Annual Programme of Reviews 8.1 The guidelines suggest that in relation to (a) scrutiny of service delivery and performance and (b) monitoring and reviewing service delivery, performance, policies and practices, the Board may select particular areas for investigation as part of its annual programme, thereafter, making recommendations to the Council. 8.2 In relation to the Council's role in community leadership, the guidelines recognise that this is not clear cut and requires it to be considered carefully to ensure that the respective functions and responsibilities of other public bodies are not compromised but that the Board allows the Council to provide a forum for an informed public debate on these issues. Current Reviews 8.3 In terms of the Annual Programme of Reviews, several projects were investigated by Lead Officers and presented to the Board between 1 April 2025 to 31 March 2026: Public x Audit Scotland Briefing: Improving Care Experience – Delivering ‘The Promise’ x Audit Scotland: Local Government Financial Bulletin 2024/25 x Summary of recent Audit Scotland Publications
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x Cyber Security Update - Briefing given to members on 22 September 2025; x Lack of house and garden maintenance by some tenants and residents – A briefing was given to Members on 22 September 2025 and the final report was submitted to Board on 18 May 2026; x Lead piping in public and private housing in Renfrewshire - the lead piping in public and private housing in Renfrewshire review has commenced and Members received a briefing at the meeting held on 18 May 2026; x Strategic Plan for Social Economy and Community Investment - Briefing was given to Members on 16 March 2026; x Houses to be Demolished – Plans for Demolition/Temporary Use options /Redevelopment of Areas Briefing was given to members on 16 March 2026. Future Reviews 8.4 Each year it has been the practice that members of the Board are asked to suggest topics for investigation and to provide information in relation to why the investigation should be undertaken and the anticipated outcome. 8.5 It was agreed that Members would still have the ability to submit written intimations to the Board to consider matters they would like reviewed, however, a session would be held annually with officers and members to consider strategic and corporate risks and Council priorities to inform the development of the annual Programme of Reviews. 8.6 A development session was held on 20 October 2025 to discuss the Programme of Reviews for 2025/26 and the possible reviews for 2026/27. Members of the Board, the Director of Finance & Resources, the Head of Corporate Governance, the Chief Auditor and the Clerk of the Board were present at the session where the current and future reviews were discussed. A list of topics was formulated together with timescales to form the basis of the Programme of Reviews for 2026/27. These reviews are outlined in Appendix 1 and members are asked to approve the list for the Programme of Reviews 2026/27. 9 Delivering Effectiveness and Strengthening the Audit Board 9.1 CIPFA’s Position Statement advises that one of the characteristics of an Audit Committee should be “a membership that is trained to fulfil their role so that members are objective, have an inquiring and independent approach, and are knowledgeable”. While expertise in the areas within the remit of the committee is very helpful, the attitude of committee members and willingness to have appropriate training and development are of equal importance. It is essential therefore to ensure that a training programme and ongoing support for Board members is in place in order that they can confidently and effectively discharge their responsibilities. Public
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9.2 The Guidelines for Operation of the Audit, Risk & Scrutiny Board - Role of Members, was amended in 2024 to recommend that all Members of the Audit, Risk and Scrutiny Board undertake an annual assessment of knowledge and skills which would be used to develop an annual training and development programme, as recommended in the CIPFA guidance. 9.3 The Chair and Vice Chair of the Audit, Risk & Scrutiny Board attended the “CIPFA Introduction to the Knowledge and Skills of the Audit Committee” training on 18 November 2025 It should be noted that Councillor Hughes has also attended the course but in her capacity as Chair of IJB Audit, Risk & Scrutiny. 9.4 A development session was held with Members of the Board on 25 March 2026 which covered the following areas:- x Introduction & Audit Committee Good Practice Guidance x 2025 Improvement Action Plan Update x 2026 Self-Assessment x Members Development Programme x Programme of Reviews/Awareness Sessions – Update Member’s Self-Assessment 9.5 CIPFA recommends that a regular self-assessment should be used to support the planning of the Audit Board work programme and training plans. Discussion took place on the self-assessment and the document was updated. A copy is attached as Appendix 2a and 2b. The Board’s Action Plan 9.6 The 2025 Action Plan which was drawn up at the development session held on 19 May 2025 was discussed and re-evaluated, the statements were updated, and the outcome of discussions are attached at Appendix 3. Areas for Improvement 9.7 Members looked at areas where the audit committee could have impact by supporting improvement; noted examples of how the audit committee could demonstrate its impact; highlighted key indicators of effective arrangements; indicated Members’ evaluation and detailed proposed actions. 9.8 Regular Briefings are provided to the Board on topical issues and it was agreed that this should continue. The Chief Auditor will continue to report annually to the Board on the outcomes and actions arising from their annual self-assessment of internal audit processes. Public
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Annual Development Session on Governance and Value of Good Governance to be arranged by the Head of Corporate Governance. Induction Sessions for new members will now include the Chief Auditor, the Clerk and other main contributors to the Board. Key components of the induction programme will include: • Understanding of the Board’s functions: • Review of relevant legislation and protocols: • Training on audit and risk management principles: • Understanding of scrutiny processes: • Briefings on key policies and procedures: Where individual Members indicated specific development requirements, it has been agreed that the Chief Auditor will arrange for one-to-one meetings to determine how best to support each Members development. Implications of the Report 1 Financial – none. 2. HR & Organisational Development – none. 3. Community/Council Planning – none. 4. Legal – as set out in the report 5. Property/Assets – none. 6. Information Technology – none. 7. Equality & Human Rights The Recommendations contained within this report have been- assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – none. 9. Procurement – none. 10. Risk – none. 11. Privacy Impact - none 12. Climate Risk - none 13. Cosla Policy Position – none. 14. Children’s Rights – none Public
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x CIPFA Audit Committees: 2022 edition - Practical Guidance for Local Authorities and police x Audit Scotland Annual report and accounts 2024/25 x CIPFA Audit Committee Guidance – Self Assessment and Action Plan – Audit, Risk & Scrutiny Board, 24 March 2024. x Guidelines for Operation of the Audit, Risk & Scrutiny Board Author: Carol MacDonald, Senior Committee Services Officer, Finance & Resources. email: carol.macdonald@renfrewshire.gov.uk List Of Background Papers Public
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Audit, Risk & Scrutiny Board Programme of Reviews 2025/26 Development Session – 20 October 2025 Current Programme No Review Suggestion Comments Further Action Responsible iƯĖèôŘ Timescale Ongoing 1 Lack of Housing and Garden Maintenance Discussed at Board on 21 September 2025. Members asked for further work to be undertaken and a report to be submitted to a future board Further Work Ongoing. Maurice Gilligan May 2026 Still to Commence 2 Lead Piping in Public and Private Housing in Renfrewshire This was a result of a Council Motion by Councillors Doig/Hannigan in 2022. OƯicer reŗuired to lead review. TBA Commenced January 2026 3 Financial Risks for the Council in relation to Partner Bodies. This was reŗuested by the Board as a result of Internal Audit Report/Risk Report in May 2025. At the Development meeting held on 20 October 2026 Members agreed that Reviews 3, 4 and 5 would be dealt with together and a brieƱng brought to the Board in early 2026 after the Scottish Government had published their Budget at the end of January 2026. It would then be decided if further work was reŗuired. To consider the statutory duties of IJB and whether additional services were being provided. Alastair MacArthur August 2026 4 IJB and Transformational Change This review was reŗuested by the Board as a result of an Internal Audit Report/Risk Report in May 2025. BrieƱng report for Risk report to include this. N/A N/A APPENDIX 1 Public
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New Suggestions 5 Scope of Arms Length Arrangement with IJB and Council Priorities to be managed BrieƱng report for Risk report to include this. N/A N/A 6 Review relevance and risks of subsidiary work – many overlaps between OneRen and IJB re prevention and early intervention At the Development meeting held on 20 October 2026, Members agreed that this review should be delayed until the OneRen Review had been completed and reported to the Leadership Board. OƯicers will submit report to May 2026 Board after OneRen Review completed and Report submitted to Leadership Board. Alastair MacArthur TBA 7 Scope of Partnership/Arms Length arrangement with OneRen & risks Members agreed that this review should take a seŗuential approach in relation as to how the learning estate looks/ which may have an eƯect on schools/sports estate development. At the Development meeting held on 20 October 2026, Members agreed that this review should be delayed until the OneRen Review had been completed and reported to Council. The Board would then decide if any further work was reŗuired. Alastair MacArthur TBA 8 Strategic Plan for Social Economy and Community Investment To look at the strategies for Participatory Budgeting/Asset Transfers/Social Economy Strategy. What is the sustainable strategy for supporting Community Groups to participate in these processes eg Are there available Funding Streams and what is their accessibility eg If asset transfer, what assistance is available to maintain building etc. At the Development meeting held on 20 October 2026, Members agreed that a brieƱng would be arranged by Chief Executive’s Service on this area and then a decision taken by Board Members if any further work is reŗuired. Alastair MacArthur/Laura McIntyre/Alasdair Morrison Complete March 2026 Public
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9 Houses to be Demolished – Plans for Demolition/ Temporary Use options /Redevelopment of Areas To look at whether houses to be demolished could be used for any other purpose on a temporary basis; number of properties; time taken for demolition etc It was hoped that this would show whether there had been improvements since the Ferguslie Park project where houses were boarded up for some time awaiting demolition and also highlight any good initiatives. A ŗuick recap on the position in relation to private dwellings was also reŗuested. At the Development meeting held on 20 October 2026, Members agreed to reŗuest a brieƱng from Director of Environment, Housing & Infrastructure. A decision will then be taken by Board Members is any further work is reŗuired. Alastair MacArthur/Gordon McNeil Complete March 2026 10 Waste Services - Percentage of Bins Emptied First Time; Process for calculation; Street Cleanliness Rating; Waste Uplift; Freŗuency of Bins left on Street; Non uplift of Contaminated Bins To look at problem of bins not being emptied; rubbish on streets and bins overƲowing. Also, what the process is if waste contaminated? Why are same crews or at least same supervisor not allocated to same route? Members were looking for an overview on how: x the rotation of the crews work x how the three-team system works x bin labelling is operated. At the Development meeting held on 20 October 2026, Members agreed to reŗuest a brieƱng from Director of Environment, Housing & Infrastructure. A decision will then be taken by Board Members is any further work is reŗuired. Alastair MacArthur/Gordon McNeil August 2026 11 Maintenance of Non-Council Infrastructure including listed Buildings – Possible Actions to ensure Owners take responsibility To ascertain what powers/legislation is available to enforce private owners and companies eg Network Rail to take action to maintain properties/listed buildings. To determine if there are any Trust organisations which repairs listed buildings and to establish if a similar arrangement could be put in place in Renfrewshire. To determine if there a list of buildings within Renfrewshire that are in disrepair? Director of Finance & Resources agreed to ascertain the outcome of a piece of work undertaken previously in relation to options for ensuring listed building were maintained and this suggestion would be reviewed further. Alastair MacArthur August 2026 Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions Major improvement Significant improvement Moderate improvement Minor improvement No further improvement Weighting of answers 0 1 2 3 5 Audit committee purpose and governance 1 Does the authority have a dedicated audit committee that is not combined with other functions (eg standards, ethics, scrutiny)? (ARSB) X The Audit, Risk & Scrutiny Board (ARSB) has a wider remit than would be expected from that set out in the Guidance. It does cover Standards, Ethics and Scrutiny. Following the previous assessment, the Terms of Reference for the ARSB was updated in May 2024 and items which were considered by members to be better suited to be reviewed elsewhere were removed eg Absence Reports Also, the role of the Chair of the ARSB has now been documented and the role is different from policy board Convenors. 2 Does the audit committee report X The ARSB does report to the Council. The minutes Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions directly to the governing body (PCC) and chief constable/full council/full fire authority, etc)? of meetings are included on the Council meeting papers. 3 Has the committee maintained its advisory role by not taking on any decision-making powers? X The Audit, Risk and Scrutiny Committee is not a decision- making committee. 4 Do the terms of reference clearly set out the purpose of the committee in accordance with CIPFA’s 2022 Position Statement? X The current Terms of Reference was updated in May 2024, and it was confirmed with members in March 2026 that no further amendments were required. 5 Do all those charged with governance and in leadership roles have a good understanding of the role and purpose of the committee? X Knowledge and Skills Framework were completed in 2025. Briefing sessions now presented on high risk/topical areas Some members have attended CIPFA Audit Committee Training It was agreed that the New Members Induction Session by the Chief a) Annual Development Session on Governance and Value of Good Governance to be arranged by the Head of Corporate Governance b) The Induction Session for new members will include the Chief Auditor, the Clerk and other main contributors to the Board. Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions Auditor and Strategic Risk and Insurance Service Manager should be expanded to include sessions from the Committee Clerk and a representative from the Policy and Commission Service. In addition, members agreed it would be beneficial to continue to receive:- a) An Annual Development Session on Governance and the value of Good Governance. b) Annual Updates from the Chief Auditor regarding their self- assessment of the operation of Internal Audit processes. c) Chief Auditor to continue to report annually to the ARSB, the outcomes and actions arising from their annual self- assessment of internal audit processes. 6 Does the audit committee escalate issues and concerns promptly to those in X The mechanism is there to raise concerns, but it isn’t generally used. Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions governance and leadership roles? 7 Does the governing body hold the audit committee to account for its performance at least annually? X Yes. There is an annual report which is in the name of the Director of Finance & Resources and contains the expected information. This is now submitted to Council. Functions of the committee 8 Does the committee publish an annual report in accordance with the 2022 guidance, including: • compliance with the CIPFA Position Statement 2022 X This was added to the Annual Report from 2025 onwards. • results of the annual evaluation, development work undertaken and planned improvements X This was added to the Annual Report from 2025 onwards and members were in agreement that the Annual Report is the main mechanism to inform Council of the work the ARSB have undertaken. Annual Report to continue to be submitted to Council, along with any Reports detailing the outcomes from development sessions TO enable this ARSB to account for its performance? • how it has fulfilled its terms of reference and the key issues escalated in the year? X The Board has sought assurance on the adequacy and effectiveness of the Council’s systems of governance, risk Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions management and internal control to ensure efficient operations and the highest standards of probity and accountability. This was achieved through reports received from Internal Audit, other Council functions and External Audit with a focus in particular on internal control and governance. 9 Do the committee’s terms of reference explicitly address all the core areas identified in CIPFA’s Position Statement as follows? x Governance arrangements X Yes x Risk management arrangements X Yes x Internal control arrangements, including: - financial management - value for money - ethics and standards - counter fraud and corruption X It does have a remit for ethics and standards, but Q1 also suggests this should be separate from the Audit Committee. Terms of Reference has been updated in 2024 and approved by Members of the ARSB. Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions x Annual governance statement X Yes x Financial reporting X Members confirmed they were satisfied with the reporting arrangements in place. x Assurance framework X The guidelines for the operation of the ARSB para 2.1 make this clearer x Internal audit X x External audit X 10 Over the last year, has adequate consideration been given to all core areas? X Relevant reports have gone to the Board, for consideration. ARSB now receive information re Internal Audit Assignments in Partner Organisations, and all Audit Scotland reports are now submitted. The Annual Programme of Reviews was discussed at the Programme of Reviews Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions 2025/26 development session held on 20 October 2025 and approved by the ARSB at the meeting held on 19 January 2026 and timescales agreed. 11 Over the last year, has the committee only considered agenda items that align with its core functions or selected wider functions, as set out in the 2022 guidance? X Absence Monitoring Reports were transferred to Finance & Resources Policy Board after the 2025 Self-Assessment. Members now receive briefing sessions during the year on major topical areas, such as Cyber Security Arrangements. A new process was agreed for the review programme. Members will first receive a briefing on the topic and then members can request further review/work to be undertaken, if required. Members confirmed at the March 2026 Development Session that the relevant agenda items are submitted to the ARSB. A development session will now be held annually to discuss/select topics for the Programme of Reviews and set out the possible timescales. Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions 12 Has the committee met privately with the external auditors and head of internal audit in the last year? X Meeting with Interim Chief Auditor took place in May 2025. Meeting with External Audit took place in May 2025. Arrangements are in place for the private meetings in 2026/27. . Membership and support 13 Has the committee been established in accordance with the 2022 guidance as follows? • Separation from executive X Yes • A size that is not unwieldy and avoids use of substitutes X Yes • Inclusion of lay/co- opted independent members in X The ARSB Guidelines were updated to facilitate this if desired. Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions accordance with legislation or CIPFA’s recommendation Members confirmed that they felt it was not necessary at this time, but the mechanism is in place if the need arises. 14 Have all committee members been appointed or selected to ensure a committee membership that is knowledgeable and skilled? X The selection process is a matter for the individual political parties. 15 Has an evaluation of knowledge, skills and the training needs of the chair and committee members been carried out within the last two years? X Skills and Knowledge frameworks were completed in 2025. 16 Have regular training and support arrangements been put in place covering the areas set out in the 2022 guidance? X The Chair and Vice Chair have attended the CIPFA training on Audit Committees. Regular Briefings are provided on topical issues a) Annual Development Session on Governance and Value of Good Governance to be arranged by the Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions Members agreed that an annual governance refresher session would be beneficial to them. Induction session for new members to be expanded to include briefing from other regular contributors to the ARSB. Head of Corporate Governance. b) The Induction Session for new members will include the Chief Auditor, the Clerk and other main contributors to the Board. c) Chief Auditor to continue to report annually to the ARSB, the outcomes and actions arising from their annual self-assessment of internal audit processes. 17 Across the committee membership, is there a satisfactory level of knowledge, as set out in the 2022 guidance? X Members agreed this was satisfactory. 18 Is adequate secretariat and administrative support provided to the committee? X Members agreed there was. 19 Does the committee have good working relations with key people and X Members agreed this exists Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions organisations, including external audit, internal audit and the CFO? Effectiveness of the committee 20 Has the committee obtained positive feedback on its performance from those interacting with the committee or relying on its work? X There is currently no mechanism to do this. It has been mentioned in External Audit Reports. 21 Are meetings well chaired, ensuring key agenda items are addressed with a focus on improvement? X The role of the Chair is documented in the guidelines. The role of Members is documented in the guidelines. There is good level of engagement from Members. Members confirmed they feel key agenda items are adequately addressed at meetings and they feel empowered to discuss and Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions challenge the information presented. 22 Are meetings effective with a good level of discussion and engagement from all the members? X As above 23 Has the committee maintained a non- political approach to discussions throughout? X Yes 24 Does the committee engage with a wide range of leaders and managers, including discussion of audit findings, risks and action plans with the responsible officers? X The Director of Finance & Resources, Head of Corporate Governance and Chief Auditor attend all meetings, other senior officers attend as required. Where Internal Audit submits a report, the relevant Head of Service will be asked to attend the ARSB and members confirmed they found this arrangement very useful. Other relevant officers are also asked to attend when Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions other reports, eg Risk Reports are being presented by the lead officer. All other agenda items are presented by appropriate officers. 25 Does the committee make recommendations for the improvement of governance, risk and control arrangements? X Yes 26 Do audit committee recommendations have traction with those in leadership roles? X Yes 27 Has the committee evaluated whether and how it is adding value to the organisation? X Yes will be completed annually 28 Does the committee have an action plan to improve any areas of weakness? X As above 29 Has this assessment been undertaken collaboratively with X In line with the agreed arrangements, this checklist has been Public
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Renfrewshire Council APPENDIX (2a) ARSB - Self-assessment of good practice 2025 Good practice questions Does not comply Partially complies and extent of improvement needed Fully complies Comments Improvement Actions the audit committee members? completed collaboratively with the Chief Auditor, Clerk, Director of Finance & Resources and Members of the ARSB. The checklist on the impact and effectiveness of the Audit Committee was last undertaken collaboratively with all members of the ARSB at the development session held in May 2026. March 2026 Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions Promoting the principles of good governance and their application to decision making. x Supporting the development of a local code of governance. x Providing a robust review of the AGS and the assurances underpinning it. x Supporting reviews/audits of governance arrangements. x Participating in self- assessments of governance arrangements. x Working with partner audit committees to review governance arrangements in partnerships. x Elected members, the leadership team and senior managers all share a good understanding of governance, including the key principles and local arrangements. x Local arrangements for governance have been clearly set out in an up- to-date local code. x The authority’s scrutiny arrangements are forward looking and constructive. x Appropriate governance arrangements established for all collaborations and arm’s-length arrangements. x The head of internal audit’s annual opinion on governance is satisfactory (or similar wording). There are clear terms of reference for the ARSB, which were updated in May 2024 which covers consideration of the code of corporate governance. The revised local code and the audit review of the local code is submitted to the Board annually. The ARSB review and note (not approve) the Annual Governance Statement. The external auditors for 2024/25 concluded that the “governance statement is consistent with the financial statements and has been prepared in accordance with the Delivering Good Governance in Local Government: Framework.” The arrangements for RLL governance have been reviewed and strengthened. Partner governance is within the remit of the Leadership Board. The ARSB members now receive Internal Audit Reports on work undertaken in Partner Organisation’s The CIA’s annual audit opinion sets out the assurances being provided. The overall opinion is usually reasonable, (although in 24/25 it was subject to management addressing the critical and important recommendations made and the limited Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions assurance report findings), the opinion covers governance, internal control and risk management. The audit universe covers governance. External Audit concluded in their 2024/25 Report that “The Council has taken a number of steps to improve its governance and scrutiny arrangements over the year. It has completed a self-assessment against CIPFA guidance for local authority audit committees, benchmarked its governance against practice in other councils, established a cross-party working group to review governance and scrutiny arrangements and undertaken a review of risk management arrangements. They also state that:- “The Council’s governance arrangements have been substantially reviewed during the year, including fully implementing the comprehensive assessment of the Audit, Risk and Scrutiny Board arrangements against the CIPFA practical guidance for Audit Committees which has made a positive impact on scrutiny arrangements. In addition, the recommendations arising from the Council’s comprehensive review of its governance arrangements by the member led cross party working group, which were Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions reported to and approved by the Council on 29 February 2024 have been actioned.” Contributing to the development of an effective control environment. x Encouraging ownership of the internal control framework by appropriate managers. x Actively monitoring the implementation of recommendations from auditors. x Raising significant concerns over controls with appropriate senior managers. x The head of internal audit’s annual opinion over internal control is that arrangements are satisfactory. x Assessments against control frameworks such as CIPFA’s FM Code have been completed and a high level of compliance identified. x Control frameworks are in place and operating effectively for key control areas – for example, information security or procurement. The CA’s annual audit opinion sets out the assurances being provided. The overall opinion is usually reasonable, (although in 24/25 it was subject to management addressing the critical and important recommendations made and the limited assurance report findings) the opinion covers governance, internal control and risk management. The audit universe covers the auditable areas for the council and is reviewed annually. Where individual audit reports provide an overall assurance level of reasonable, limited or no assurance, senior management from the service area attend the ARSB to answer any member questions. Member questions now tend to focus on obtaining assurance that the issues will be rectified. There are arrangements in place for informing members of any delay in the implementation of critical audit recommendations. They are also informed of the number of recommendations implemented/not implemented by their due date in the Chief Auditors Annual Report Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions Supporting the establishment of arrangements for the governance of risk and for effective arrangements to manage risks. x Reviewing risk management arrangements and their effectiveness, eg risk management maturity or benchmarking. x Monitoring improvements to risk management. x Reviewing accountability of risk owners for major/ strategic risks. x A robust process for managing risk is evidenced by independent assurance from internal audit or external review. There are robust processes in place for managing risk. The Board also has responsibility for approving the risk management policy and strategy and reviewing the effectiveness of risk management arrangements. The Risk Management policy and Strategy was approved by the ARSB in November 2023. The ARSB are provided with 6 monthly reports on the corporate and strategic risk registers. Risk owners are included on the risk registers. A revised strategy will be brought to the May 2026 Board incorporating the actions from External review into these documents. Advising on the adequacy of the assurance framework and considering whether assurance is deployed efficiently and effectively. x Reviewing the adequacy of the leadership team’s assurance framework. x Specifying the committee’s assurance needs, identifying gaps or overlaps in assurance. x Seeking to streamline assurance gathering and reporting. x Reviewing the effectiveness of assurance providers, eg internal audit, risk x The authority’s leadership team have defined an appropriate framework of assurance, including core arrangements, major service areas and collaborations and external bodies. There are clear terms of reference for the ARSB, which were updated in May 2024 which covers consideration of the code of corporate governance. The revised local code and the audit review of the local code is submitted to the Board annually. The ARSB review and note (they do not approve) the Annual Governance Statement. The external auditors for 2024/25 concluded “governance statement is consistent with the financial statements and has been prepared in accordance with the Delivering Good Governance in Local Government: Framework.” Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions management, external audit. The CIA’s annual audit opinion sets out the assurances being provided. The overall opinion is usually reasonable, (although in 24/25 it was subject to management addressing the critical and important recommendations made and the limited assurance report findings) the opinion covers governance, internal control and risk management. The audit universe covers governance. External Audit concluded in their 2023/24 Report that “The Council has taken a number of steps to improve its governance and scrutiny arrangements over the year. At its meeting in May 2025, the Council considered the results of the ARSB’s self- assessment against CIPFA good practice on audit committees. The self-assessment identified a number of areas of good practice and 4 action points, to enhance the work of this Board. The Council approved the results of this review and the action plan. All the action points have been implemented. This Board was also responsible for ensuring the actions from the External Review and the S102 Report were implemented. Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions The ARSB members have also agreed a programme of reviews to be undertaken and receive progress reports regularly as the reviews progress. Supporting effective external audit, with a focus on high quality and timely audit work. x Reviewing and supporting external audit arrangements with focus on independence and quality. x Providing good engagement on external audit plans and reports. x Supporting the implementation of audit recommendations. x The quality of liaison between external audit and the authority is satisfactory. x The auditors deliver in accordance with their audit plan and any amendments are well explained. x An audit of high quality is delivered. The external auditor’s attend the ARSB to present their Annual Audit Plan and Annual Report on the Audit. The auditor’s acknowledged that the financial statements received were of a good standard and on time and the majority of working papers were adequate. Management agreed to meet Azets to discuss any areas for improvement to ensure all working papers are satisfactory. There were no amendments to the external audit plan and each element of the plan is addressed in the Annual Report on the audit. The Guidelines for the Operation of the ARSB state that:- lIn exercising its function as the Council’s Audit Committee, it would be anticipated that at least one meeting, or part thereof, shall provide the internal and external auditor with the opportunity to meet the members of the Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions Committee without senior officers present. introducing an annual private meeting with both the internal and external auditor” A private meeting with External Audit took place in May 2025. Arrangements are in place for the 2026 Internal and External Audit meetings Supporting the quality of the internal audit activity, in particular underpinning its organisational independence. x Reviewing the audit charter and functional reporting arrangements. x Assessing the effectiveness of internal audit arrangements, providing constructive challenge and supporting improvements. x Actively supporting the quality assurance and improvement programme of internal audit. x Internal audit that is in conformance with GIAS and LGAN (as evidenced by the most recent external assessment and an annual self- assessment). x The head of internal audit and the organisation operate in accordance with the principles of the CIPFA Statement on the Role of the Head of Internal Audit (2019). The internal audit charter was revised and approved by the ARSB in November 2025. The Annual Internal Audit Plan is also approved by this Board. The internal auditor attends each meeting of the ARSC and provides regular progress reports. Reports on the outcome of each audit engagement, the annual plan and annual report are also provided to the ARSB. Members receive an annual report detailing any critical internal audit recommendations not implemented by their due date. At the March 2026 ARSB, a member asked the Chief Auditor to consider including further information in this report to make it more meaningful. A report was submitted to the ARSB in August 2025 to inform them of the outcomes of the gap analysis undertaken by the Chief Auditor to identify the improvement actions required to ensure compliance with the Global Internal Audit New style report for outstanding critical recommendations to be considered by Chief Auditor Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions Standards in the UK Public Sector in April 2025. A further self-assessment will be undertaken, and members will be updated as part of the Chief Auditor’s annual report. The last external assessment was reported to the ARSB in June 2023. The report concluded that the internal audit function fully conforms with the Public Sector Internal Audit Standards and LGAN (in full). The Chief Internal Auditor conforms with the CIPFA Statement on the Head of Internal Audit (2019) and this is disclosed in the governance statement and supported by job description, person specification, the audit charter. Internal Audit met privately with the members of the ARSB in May 2025 and will meet again in May 2026. Aiding the achievement of the authority’s goals and objectives by helping to ensure appropriate governance, risk, control and assurance arrangements. x Reviewing how the governance arrangements support the achievement of sustainable outcomes. x Reviewing major projects and programmes to ensure that governance and assurance x Inspection reports indicate that arrangements are appropriate to support the achievement of service objectives. x The authority’s arrangements to review and assess performance are satisfactory. ARSB’s TOR includes a remit for “To consider reports by the Accounts Commission, Audit Scotland and other similar organisations and to make recommendations where appropriate to the Council.” Relevant reports have gone to the Board, for consideration. ARSB now receive information re Internal Audit Assignments in Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions arrangements are in place. x Reviewing the effectiveness of performance management arrangements. Partner Organisations and all Audit Scotland Reports are now submitted It has been agreed that the Board will now receive periodic briefings regarding major projects and Board members can ask for further work to be undertaken if required. For example, the Board received a briefing on City Deal. At the 2026 self-assessment, Board members confirmed they were satisfied with this approach. The Dargavel action plan progress was reported at each ARSB meeting and this action plan is now complete The ARSB ToR includes a remit for “To review service delivery and performance management arrangements across all services and to submit recommendations to the Council. To consider reports by the Scottish Public Services Ombudsman in terms of the Scottish Public Services Ombudsman Act 2002.” These reports are submitted on a regular basis to the Board. The external auditor made no adverse comments regarding the council’s arrangements for performance management. Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions Supporting the development of robust arrangements for ensuring value for money. x Ensuring that assurance on value-for-money arrangements is included in the assurances received by the audit committee. x Considering how performance in value for money is evaluated as part of the AGS. x Following up issues raised by external audit in their value-for- money work. x External audit’s assessments of arrangements to support best value are satisfactory. The Accounts Commission stated in their Best Value Report that “Renfrewshire Council has a strong commitment to improving, including creating a positive culture, supporting its staff to develop as leaders, and focusing on engaging with residents. It must now talk to them about tough spending decisions that lie ahead” In relation to the thematic Best Value Review on Transformation Programmes, the external auditor concluded in their 2024/25 report which is submitted to the ARSB that “Council has appropriate transformation plans in place and is well-placed to deliver complex transformation and change programmes, having successfully delivered a range of transformation programmes over the past 15 years. The Leadership Board has a remit for “To provide oversight and continuous improvement of the Council’s corporate performance management and quality assurance framework and the Council’s arrangements and systems for achieving best value.” Members confirmed they were happy with the information they currently receive in relation to best value arrangements. Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions Helping the authority to implement the values of good governance, including effective arrangements for countering fraud and corruption risks. x Reviewing arrangements against the standards set out in the Code of Practice on Managing the Risk of Fraud and Corruption (CIPFA, 2014). x Reviewing fraud risks and the effectiveness of the organisation’s strategy to address those risks. x Assessing the effectiveness of ethical governance arrangements for both staff and governors. x Good ethical standards are maintained by both elected representatives and officers. This is evidenced by robust assurance over culture, ethics and counter fraud arrangements. Members of the ARSB receive regular updates on Counter Fraud progress/outcomes and progress with the National Fraud Initiative from the Chief Auditor. There is a counter fraud and corruption policy which was approved by the FR&CS policy board. The arrangements for Counter Fraud are made clear in the annual governance statement. There is a Code of Conduct for Members, that all members formally sign up to. There is induction training for members which covers the Code of Conduct for members. There is a fraud awareness i-learn module for employees which ARSB members were made aware of. There is also a Code of Conduct for Employees and a protocol for member officer relations. Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions Declarations of interests and transparency statements made and recorded at all Board and Committee meetings. There are appropriate policies and procedures for the register of interests and the register of gifts and hospitality. The ARSB are provided with summaries of any employee fraud related investigations. External audit for 2024/25, concluded that “there are appropriate arrangements for the prevention and detection of fraud, error and irregularities. Promoting effective public reporting to the authority’s stakeholders and local community and measures to improve transparency and accountability. x Working with key members/ the PCC and chief constable to improve their understanding of the AGS and their contribution to it. x Improving how the authority discharges its responsibilities for public reporting – for example, better targeting the audience and use of plain English. x The authority meets the statutory deadlines for financial reporting with accounts for audit of an appropriate quality. x The external auditor completed the audit of the financial statements with minimal adjustments and an unqualified opinion. x The authority has published its financial statements and AGS in The financial statements were prepared in accordance with the CIPFA Code of Practice on Local Government Accounting 2024/25. With regards to working papers management discussions are to take place with Azets to determine any areas for improvement. The external auditor’s opinion was unqualified for 2024/25. The annual governance statement is underpinned by the Business As Usual Risk Assessment modules undertaken by each Head of Service and the outcomes being signed off by the Directors. Public
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Renfrewshire Council APPENDIX 2 (b) Self-assessment – The Influential Audit Committee – March 2026 Areas where the audit committee can have impact by supporting improvement Examples of how the audit committee can demonstrate its impact Key indicators of effective arrangements Your evaluation: strengths, weaknesses - Proposed Actions x Reviewing whether decision making through partnership organisations remains transparent and publicly accessible and encourages greater transparency. x Publishing an annual report from the committee. accordance with statutory guidelines. x The AGS is underpinned by a robust evaluation and is an accurate assessment of the adequacy of governance arrangements. Oversight of the governance of partner bodies is within the remit of the Leadership Board. Annual Report – The ARSB Annual Report was last submitted in May 2025 to ARSB and then to Council in June 2025. OVERALL QUESTIONS TO CONSIDER 1 Does the committee proactively seek assurance over the key indicators? x Yes, Members concluded that as a Board they carry out this role collectively. When reports are being discussed at Board, they find it very beneficial to have the operational Head of Service/officer in attendance at Board to respond to any queries or take forward any actions. 2 Is the committee proactive in responding to aspects of governance, risk, control and audit and is there any improvements required? x Yes, Members concluded that they were and there are currently no improvements required 3 Are recommendations from the committee taken seriously by those responsible for taking action? x Yes and there is a process to ensure any actions are taken forward by the relevant officer. Public
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APPENDIX 3 CIPFA Audit Committee Guidance - Self-assessment Action Plan – March 2026 - 2025 Improvement Action Plan Update No. Action Action Owner Progress Completion date Actioned Comments Audit Committee Purpose and Governance 1 Expand the ARSB Member ŝŶĚƵĐƟŽŶďƌŝĞĮŶŐƚŽŽƚŚĞƌ ƌĞůĞǀĂŶƚŽĸĐĞƌƐ͘ Chief Auditor Arrangements have been made to include briefings from the Committee Clerk and a representative from the Policy and Commissioning service in the induction session May 2026 Щ The new arrangements will be implemented when a new member is appointed to ARSB 2 Report on Internal Audit’s self- assessment of compliance with Global Internal Audit Standards in the UK Public Sector to be ƐƵďŵŝƩĞĚƚŽZ^ĂŶŶƵĂůůLJ͘ Chief Auditor This will be undertaken November 2026 Functions of the Committee 3 An ARSB members development session to be held annually to discuss/select topics for the Programme of Reviews and set out the possible timescales. Clerk This arrangement is now in place May 2026 ض Membership and Support 4 Annual refresher briefing session on governance and value of good governance to be delivered Head of Corporate Governance This will be arranged as part of members development programme December 2026 Effectiveness of Committee 5 New Style Report for reporting critical Internal Audit Recommendations to be designed. Chief Auditor This has been completed and a sample copy sent to ARSB members. April 2026 Щ The new report will be submitted to the ARSB on completion of the 2026/27 internal audit exercise following up previous recommendations made. Public