3 Internal Audit Annual Report 2025 - 2026 complete
Renfrewshire Council · 18 May 2026
Back to Audit, Risk and Scrutiny Board — 18 May 2026 and its agenda
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 18 May 2026 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Internal Audit Annual Report 2025 - 2026 ___________________________________________________________________ 1. Summary 1.1 The Global Internal Audit Standards in the UK Public Sector require the Chief Auditor to prepare a report, at least annually, to senior management and the Board on the internal audit activity’s purpose, authority, and responsibility, as well as performance relative to its plan. 1.2 The annual report must also provide an annual audit opinion on the overall adequacy and effectiveness of the Council’s internal control environment and include details of any significant risk exposures and control issues, including fraud risks, governance issues, and other matters that can be used to inform the governance statement. 1.3 The Annual Report for 2025-26 is attached and outlines 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 contains the annual audit assurance statement. ___________________________________________________________________ 2. Recommendations 2.1 Members are invited to consider and note the contents of the Internal Audit Annual Report. ___________________________________________________________________
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Implications of the Report 1. Financial - None 2. HR & Organisational Development - None 3. Community Planning – Safer and Stronger - effective internal audit is an important element of good corporate governance. 4. Legal - None 5. Property/Assets - None 6. Information Technology - None 7. Equality & Human Rights – None 8. Health & Safety – None 9. Procurement - None 10. Risk - The summary reported relates to the delivery of the risk-based internal audit plan. 11. Privacy Impact – None 12. COSLA Implications – None 13. Climate Risk – None 14. Children’s Rights - None ________________________________________________________________ Author Karen Campbell, Chief Auditor
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PUBLIC Annual Report 2025-2026 Renfrewshire Council Internal Audit May 2026
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PUBLIC Renfrewshire Council Internal Audit Annual Report 2025/2026 Contents Page 1. Introduction 1 2. Responsibilities of Management and Internal Audit 2 3. Internal Audit Activity in 2025/26 2 4. Summary of Internal Audit Work 5 5. Internal Audit Resources 5 6. Review of Internal Audit Activity • Table 1 – Analysis by category of audit 6 7. Quality Assurance and Improvement Activity • Table 2 – Internal Audit Performance 7 8. Implementation of Audit Recommendations • Table 3 – Implementation of Audit Recommendations 8 9. Performance of Non-Audit Activities • Table 4 – Corporate Counter Fraud Performance 9 10. Audit Assurance Statement 11 Appendix 1 – Summary of Assurances
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1 PUBLIC Renfrewshire Council Internal Audit Annual Report 1 April 2025 – 31 March 2026 1. Introduction 1.1 Internal Audit is an independent and objective assurance and consulting activity designed to add value and improve the operations of Renfrewshire Council. It assists Renfrewshire Council in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the organisation's risk management, control, and governance processes. 1.2 The Chief Auditor reports functionally to the Audit, Risk and Scrutiny Board and administratively (i.e. day to day operations) to the Director of Finance and Resources. In accordance with the principles of good corporate governance, regular reports on internal audit work and performance are presented to the Audit, Risk and Scrutiny Board. 1.3 The purpose, authority and responsibility of the internal audit activity is defined in the internal audit charter, approved by the Audit, Risk and Scrutiny Board; and provides that the Chief Auditor has independent responsibility for the conduct, format and reporting of all internal audit activity and findings. 1.4 The service operated in accordance with the Global Internal Audit Standards in the UK Public Sector for 2025/26. The Standards define the basic principles for carrying out internal audit. They establish the framework for providing internal audit services, which add value to the organisation, leading to improved organisational processes and operations. 1.5 The Standards require the Chief Auditor to prepare a report, at least annually, to senior management and the Board on the internal audit activity’s purpose, authority, and responsibility, as well as performance relative to its plan. The annual report must also provide an annual audit opinion, on the overall adequacy and effectiveness of the Council’s internal control environment. It must include details of any significant risk exposures and control issues, including fraud risks, governance issues, and other matters that can be used to inform the governance statement. 1.6 The aim of this report is to provide an opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and control and provide a summary of the work undertaken during the year to support that opinion. The report also provides details of the performance of the internal audit service during the past year, and the results of the quality assurance and improvement programme. 1.7 In addition to the work carried out in relation to council services, we also provide an internal audit service to the following organisations: • OneRen
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2 PUBLIC • Renfrewshire Valuation Joint Board • Scotland Excel • Renfrewshire Integration Joint Board 1.8 The outcome of the audit assignments undertaken for these organisations is reported separately to their Boards and the Integration Joint Board has a separate Audit, Risk and Scrutiny Committee. These Boards also receive an Internal Audit Annual Report which contains an assurance statement on the overall accuracy and effectiveness of their internal control environment. 1.9 Summaries of internal audit assignments within partner organisations are also submitted to members of the Audit, Risk and Scrutiny Board for their information. 2. Responsibilities of Management and Internal Audit 2.1 It is the responsibility of the Council’s managers to ensure that the management of the areas under their control is adequate and effective and that their services have a sound system of internal control which facilitates the effective exercise of the organisation’s functions and which includes arrangements for the management of risk. 2.2 Internal audit is not a substitute for effective control exercised by management as part of their responsibilities. Internal audit’s role is to independently assess the adequacy of the risk management, internal controls and governance arrangements put in place by management and to undertake sufficient work to evaluate and conclude on the adequacy of those controls for the period under review. 3. Internal Audit Activity during 2025/2026 3.1 The internal audit plan for 2025/2026 was approved by the Audit, Risk and Scrutiny Board on 17 March 2025. The plan was risk-based and took into account the outcomes of the service and corporate risk evaluation processes, any significant changes in council operations over the period, and the impact of developments in national policy and regulation. The plan also took into account key external audit reports including their Annual Audit Report for the council. 3.2 The audit plan is kept under continuous review throughout the year, to ensure we are flexible in reacting to changes in the internal and external environment or to any changing risk profile for the council. The team have been operating with a reduced resource during the year as a result of the structure review, which is explained in section 5 of this Report, which was planned for in part when the audit plan was being finalised. Although, no amendments were made to the 2025/26 plan there has been a slight delay in the completion of some audit assignments due to this resource issue and also to some planned developmental work which has been carried over into 2026/27. 3.3 The majority of planned assignments as detailed in the 2025/2026 audit plan have been undertaken or are ongoing and only one assignment has not yet
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3 PUBLIC commenced. Those assignments not finalised by 31 March 2026 have been prioritised in the first quarter of the current year. 3.4 Set out below are the significant risks which influenced the content of the plan and the nature of the work undertaken in recognition of these. (1) Asset Management Effective governance and management of the council’s property assets is essential, otherwise there is a significant risk of harm to employees and citizens, financial loss, and service disruption within the Council. The 2025/26 audit plan included time for reviewing:- • Arrangements for Securing Empty Public Buildings • The Housing Assurance Statement • Vehicle Road Fund Licence Processes (2) Financial Challenges The Council faces an ongoing financial challenge to make significant savings after many years of already delivering substantial efficiencies and reduction in our spending. Alongside this, our communities continue to experience cost-of- living pressures and the demand for our services continues to grow. Therefore, the financial outlook continues to be subject to significant and regular scrutiny. The 2025/26 audit plan included time for reviewing:- • Non-domestic Rates • School Transport Allocation • Procurement Processes for Obtaining Goods and Services below £24,999.99 (nearing completion) • Procuring ICT Systems (ongoing) (3) Governance Arrangements The Council governance framework ensures that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded. It comprises the systems and processes, and culture and values, by which the Council is directed and controlled. These arrangements should be subject to regular review whilst undertaking transformation change programmes. The 2025/26 audit plan included time for reviewing the:- • Local Code of Corporate Governance • Authorisation of Transactions (nearing completion) (4) Tackling Inequalities The Council plays a key role in tackling inequalities and providing the best possible services to our communities, particularly those who are experiencing the poorest outcomes. The current cost of living crisis impacts disproportionately on particular groups in society. The Council is committed to
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4 PUBLIC supporting people on low incomes to maximise income and seek advice with income and debt management. The 2025/26 audit plan included time for reviewing:- • Scottish Welfare Fund Payments • The Employability Programme (5) Public Protection Public protection is a wide-ranging agenda relating to the protection of vulnerable people, communities, businesses and organisations. The 2025/26 audit plan included time for reviewing:- • Security of Paper Documentation • Taxi Vehicle Inspections (Ongoing) (6) Fraud and Error Attempts at undertaking fraudulent activity against individuals and organisations are rapidly increasing. The Council is committed to minimising the risk of fraud and error occurring within the operation of its services by internal and external parties. To assist in achieving this aim, it is important that that the Council reviews the adequacy of the internal controls in any areas where fraudulent activity has occurred in other organisations. The 2025/26 audit plan included time for reviewing:- • Council Tax Refund Processes • Key Financial Controls (7) Strategic Sustainable Planning for People and Assets When major transformation is ongoing to deliver the best services possible, it is inevitable that job roles and service processes will change throughout the Council. The 2025/26 audit plan included reviews of:- • The Job Evaluation Scheme (Still to Commence) • Customer Service Processes (Ongoing) 3.5 There are a number of significant risks, arising from the external and internal environment, which could impact on the council’s ability to achieve its objectives. The most significant risks and the risk control measures to manage these risks are identified through the council’s corporate risk management process. Subject to the overall flexibility of the Audit Plan, priority was given to audit engagements which impacted on the council’s strategic and corporate risk management. 3.6 In line with the council’s procedures, instances of suspected theft, fraud or other irregularity are reported to internal audit. Depending on the nature of the allegations, they are investigated either by the Internal Audit service or by the
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5 PUBLIC Corporate Counter Fraud service. All referrals were evaluated and investigated as appropriate. 3.7 During 2025/26, Internal Audit conducted a number of investigations mainly in relation to allegations of malpractices and employee conduct. Service management has undertaken disciplinary procedures and strengthened internal controls where necessary. 3.8 The outcomes of all internal investigation reviews undertaken by internal audit are reported to the Audit, Risk and Scrutiny Board after any disciplinary action has been completed. 4. Summary of Internal Audit Work 4.1 The internal audit team also provide advice and support where necessary to council services and partners. They have the flexibility to undertake ad hoc or investigative reviews as directed by the Chief Auditor . 4.2 Appendix 1 details the assurances arising from the internal audit work carried out in line with the 2025/26 audit plan and from those 2024/25 assignments which were finalised during this year which supports the annual assurance statement. These include the conclusions in relation to the overall system of internal control, risk management and governance arrangements. 4.3 Some internal audit contingency work examining the use of Council grants awarded to organisations/groups has resulted in the audit recommendations being taken forward as part of a wider ongoing management review of the governance arrangements for awarding grants throughout the Council. 5. Internal Audit Resources 5.1 For the year to 31 March 2026, the audit plan was based on 869 operational days. However, the actual staffing complement was reduced temporarily due to two posts within the internal audit and counter fraud teams remaining vacant during the staffing structure review. 5.2 The Assistant Chief Auditor was appointed permanently to the post of Chief Auditor in August 2025 and one of the Senior Auditors is covering the Assistant Chief Auditors post on an interim basis. In addition, the Senior Counter Fraud Officer is currently vacant due to the retiral of the previous post holder 5.3 It was recognised that there have been difficulties in recruiting Internal Auditors recently within some other Local Authorities and it was agreed that as the opportunity has arisen, the Chief Auditor in conjunction with the Director of Finance and Resources would carry out a review to determine the staffing and skillset required to deliver an adequate and efficient Internal Audit and Counter Fraud Service, taking into consideration future corporate plans and priorities and workforce and resilience planning issues. It should be noted that the delivery of financial savings was not an objective of this exercise, and Renfrewshire Council’s Director of Finance & Resources is committed to
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6 PUBLIC maintaining an adequately resourced, flexible and professional internal audit and counter fraud service. 5.4 This revised structure has been agreed upon and has been designed to give current and new staff the opportunity to further develop their skills and study for a professional qualification. The number of staff will remain unchanged and it is planned to recruit a trainee internal auditor. We are currently in the process of implementing this revised structure with the assistance of HR staff. New and revised posts are being submitted for formal job evaluation as required. 5.5 The internal audit team will ensure that independence and objectivity are maintained in line with the Global Internal Audit Standards in the UK Public Sector including where non-audit work is undertaken. Internal auditors will have no operational responsibilities. There have been no impairments impacting on the Chief Auditor’s independence. 5.6 Due to the vacancies being carried, this has been a challenging year for the Internal Audit Service and some of our developmental and administration work has been carried forward into 2026/27 to enable priority to be given to operational reviews. Some of the available resource has also been used to cover some counter fraud tasks. The service had adequate financial resources which can be used flexibly and was utilised for some staff overtime to ensure adequate operational work was undertaken to enable the Chief Auditor to provide their assurance opinion on the internal control environment in operation. It is therefore considered that the team has been sufficiently resourced during the year to undertake the operational work required. 6. Review of Internal Audit Activity 6.1 The Audit Plan for 2025/26 set out our risk-based plans across a range of audit categories, the results of which have been reported quarterly to Audit, Risk and Scrutiny Board. Table 1 below compares the actual days spent on each category of audit work against that planned for the year. Table 1 Type of Audit Planned Days Actual Days Variance Days % Governance 76 57 (19) 25% Assurance 360 303 (57) 16% Contingency 295 258 (37) 12% Audit Planning & Reporting 138 138 0 0% Total Operational Days 869 756 (113) 13% Training 51 41 (10) 19% Strategic Management 16 16 (0) 0% Team Administration 91 71 (20) 22% Development 73 54 (19) 26% Total Non-operational Days 231 182 (49) 21%
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7 PUBLIC Gross Available Days 1100 938 Operational % 79% 81% Non-Audit – Including Management of Risk Management and Insurance and Corporate Counter Fraud including the co-ordination of NFI 71 55 16 22% 6.2 Material differences of over 20% from the plan are explained below: 1) Governance This is due to one of the governance assignments not having yet commenced and the budgeted days have been deferred into 2026/27. 2) Administration With the focus being on operational work, this was restricted as much as possible to concentrate on operational work. 3) Development Development time was planned to look at a revised team structure, further developing our working practices including encompassing the Global Internal Audit Standards, revising our internal audit manual and reviewing alternative ICT audit management system options. This work was restricted and focused on the staff structure review and ensuring our work was undertaken in accordance with the new standards. The other development work will be progressed through 2026/27. 4) Non-Audit This budget included time for Internal Audit and Counter Fraud combined quarterly team meetings. Early in 2025/26, it was agreed that it would be beneficial to have these meetings on a two weekly basis instead of the two teams meeting separately with the Chief Auditor and Interim Assistant Chief Auditor and therefore the budget for these meetings was not utilised. 7. Quality Assurance and Improvement Activity 7.1 Internal audit measures performance against a range of measures set annually by the Director of Finance and Resources. The Audit, Risk and Scrutiny Board received quarterly reports on progress and performance during the year. Table 2 shows the actual performance against targeted performance for the year.
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8 PUBLIC Table 2 Internal Audit Performance 2025/26 Performance measure Target 2025/26 Actual 2025/26 % completion of audit plan for the year* 90% 90.1% % engagements completed by target date 95% 98.3% % engagements completed within time budget 95% 98.3% * this measures the completion percentage as at 31 March. 100% of the plan is ultimately delivered through the finalisation of the outstanding elements in the new financial year. 7.2 The percentage completion of the audit plan met target set for the year. In addition, the actual performance for the year for the other two indicators, is above the target performance level. 7.3 The Global Internal Audit Standards in the UK Public Sector require the Chief Auditor to develop and maintain a quality assurance and improvement programme (QAIP) that covers all aspects of the internal audit activity. The QAIP must include ongoing monitoring of compliance with the standards, periodic internal self-assessments and five-yearly external assessments, carried out by a qualified, independent assessor from outwith the organisation. 7.4 With regards to the ongoing monitoring to ensure compliance, the work undertaken during an assignment is reviewed by a senior audit team member. 7.5 We undertook a self-assessment against these new standards and reported the results and required actions to the Audit, Risk and Scrutiny Board in August 2025. An updated Charter and Mandate was approved by Board in November 2025 and staff training on the revised standards has also been undertaken. It is now considered that Internal Audit comply with the standards. A further formal self-assessment is planned for the forthcoming year and the outcomes will be reported to Board. 7.6 We continued to participate in the Scottish Local Authorities Chief Internal Auditors’ Group peer review process and our next external assessment is not due until 2028/29. 8. Implementation of Audit Recommendations 8.1 During 2025/26, 162 recommendations were followed up, with 85% of all recommendations being completed. The implementation status of the recommendations across each service area is detailed in Table 3 below.
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9 PUBLIC Table 3 Implementation of Audit Recommendations 2024/25 Service No. Followed up Complete Partially Complete (new date) Not Implemented (new date) Redundant Adult Services 12 11 (92%) 1 (8%) 0 0 Chief Executive’s 9 7 (78%) 2 (22%) 0 0 Children’s Services 16 15 (94%) 1 (6%) 0 0 Environment, Housing & Infrastructure 56 47(84%) 9 (19%) 0 0 Finance & Resources 69 58 (84%) 6 (9%) 3 (4%) 2 (3%) Total 162 138 (85%) 19 (12%) 3 (2%) 2 (1%) 9. Performance of Non-Audit Activities 9.1 Risk Management . In August 2025, the Strategic Risk Management and Insurance Team transferred to Business Services under the leadership of the new Head of Business Services, Risk and Insurance Services. The two functions however continue to work closely together through their governance, with the Chief Auditor being a member of the Corporate Risk Management and Risk Alliance Groups, and reporting arrangements to the Audit, Risk and Scrutiny Board. Risk management performance is detailed in the risk management annual report. 9.2 Corporate Counter Fraud The Corporate Counter Fraud Team reports to the Chief Auditor and consists of a Senior Counter Fraud Officer (Vacant) and two Counter Fraud Officers. Arrangements are currently being progressed to recruit a Senior Counter Fraud Officer. The Corporate Counter Fraud Team works to raise awareness of fraud, and to encourage and promote an anti-fraud culture. Where a suspicion of fraud arises, the team investigate and report their findings to management. Where appropriate, follow-on action is taken, such as reporting the matter to Police Scotland for further investigation, or directly to the Procurator Fiscal. The team works to protect Council resources, investigating frauds against the Council, such as council tax reduction, tenancy, housing application, Scottish Welfare Fund, school placements, blue badge and any other potentially fraudulent matters arising. Where appropriate, customers are contacted by telephone or e-mail. This process is convenient for customers and staff alike and enables investigations
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10 PUBLIC to be conducted quickly and efficiently. Where necessary, and for more serious cases, visits and interviews under caution are conducted. The team continue to work with the DWP, undertaking joint investigations, which can result in the identification of overpayments of Single Person Discount, Council Tax Reduction, Council Tax Benefit, Housing Benefit, Universal Credit, Child and Working Tax Credits, and other DWP benefits. A Counter Fraud training course is available to staff on iLearn and is promoted across the Council. Table 4 Corporate Counter Fraud Performance 2025/26 Financial Outcomes 2025/26 (£) Cash savings directly attributable to preventative counter fraud intervention (e.g. business grants) 8,780 Cash recoveries in progress directly attributable to counter fraud investigations 57,626 Notional savings identified through counter fraud investigation, (e.g. housing tenancy and future council tax) 570,485 Housing Benefit Savings identified through other counter fraud work or through joint working with the DWP 0 Other DWP Benefit or Tax Credit Savings identified through other counter fraud work or through joint working with the DWP 3,731 Non-Financial Outcomes 2025/26 Housing properties recovered 5 Housing applications amended/cancelled 17 Housing Allocation Priority Changed 0 Blue badge misuse warning letters issued 51 Blue Badges Cancelled 16 Supplier/Contractor Bank Checks Undertaken 195 Non-Domestic Rates Bank Checks Undertaken 51 9.3 The National Fraud Initiative
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11 PUBLIC The National Fraud Initiative (NFI) in Scotland is a counter-fraud exercise led by Audit Scotland and overseen by the Cabinet Office for the UK. It uses data matching techniques to compare information about individuals held by different public bodies, and on different financial systems that might suggest the existence of fraud or error. Internal audit is responsible for the co-ordination of the exercise which is undertaken every second year. The Council’s data, as required by the NFI, was submitted in October 2024, the resulting matches were received from December 2024 onwards. The investigation of those matches is undertaken by the Counter Fraud Officers or service staff and is nearing completion. To date £272,309 of corrections and overpayments and a further £225,786 in relation to single person discounts of have been identified from the 2024/25 National Fraud Initiative and these overpayments are in the process of being recovered from claimants. In addition, £1,113,920 of notional savings have been identified with the majority relating to housing tenancies, housing applications and blue badges. The final outcomes arising from the exercise will be subject to a separate report to the Audit, Risk and Scrutiny Board during 2026/27 when the national report on this exercise is published. 9.4 Whistleblowing Policy Under the Council’s Whistleblowing Policy, the Chief Auditor should be informed of all whistleblowing referrals so they can be recorded. During this year, Three referrals were received and recorded in the Whistleblowing Register, Two of these referrals were referred to the responsible service to review as they were management issues. The remaining referral is currently being investigated by Internal Audit and the findings will be reported to the Audit, Risk and Scrutiny Board Members on completion of the investigation. 10. Audit Assurance Statement 10.1 Internal audit has performed its work in accordance with the role defined in paragraph 1.4. The audit work performed has been reported to senior managers and where areas for improvement in internal control have been identified appropriate recommendations have been made and accepted for action by management. 10.2 In view of the continued challenges common to all local authorities, the Council recognises the need to exercise very close scrutiny over financial management and compliance with overarching governance arrangements and will continue to take appropriate action to further strengthen control in these areas. 10.3 Internal audit contributes to the promotion of sound corporate governance in the Council. The scrutiny function within the council performed by the Audit, Risk and Scrutiny Board further demonstrates strong commitment in this area.
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12 PUBLIC 10.4 It is important to balance the risks involved in accepting systems limitations with the consequences if a problem emerges. Internal audit recognises this and assesses this in its reporting mechanism. It is not realistic for the system of internal control in the Council to be without any weakness. 10.5 The Council’s governance arrangements have been reviewed during the year and the local code of corporate governance updated as required. A Transformation Board (officer group) has been established to provide strategic oversight of the Reshaping Renfrewshire programme. A Performance Board (officer group) has been established with all services represented and its focus is to drive improvements in performance corporately and across Council services. 10.6 A further, comprehensive assessment of the Audit, Risk and Scrutiny Board arrangements against the CIPFA practical guidance for Audit Committees has been completed in March 2026 and a few improvement actions of a minor nature have been identified to enhance the operation of this Board. 10.7 The 12 modules of the business-as-usual risk management assurance framework were completed by Heads of Service’s/Relevant Senior Managers during the year to self-assess their own levels of assurance against those risk areas. The 2025/26 outturn compares favourably with only one limited assurance compared to six in the previous year. 10.8 The programme of work undertaken by internal audit in 2025/2026 identified 3 occasions where a limited assurance level was provided in relation to the internal control, risk management and governance objectives for the specific areas of each audit review. 85% of all internal audit recommendations followed up during the year have been implemented by the due date which is an improved position from last year. 10.9 Therefore, subject to management addressing the critical and important recommendations made, it is considered that reasonable assurance can be placed upon the adequacy and effectiveness of the Council’s internal control, risk management and governance arrangements as evidenced by: (i) the results of the planned audit work in 2025/26; (ii) the results of investigative work in 2025/26; (iii) management self-assessment business as usual risks; (iv) management action to respond to audit recommendations to mitigate the risks areas highlighted in this report; (v) the regular review of the Local Code of Corporate Governance. Signed Chief Auditor
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13 PUBLIC Date
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Appendix 1 1 PUBLIC Renfrewshire Council Internal Audit Annual Report 2025/2026 – Summary of Audit Assignments Undertaken 1. Assignments Completed and Internal Audit Report Finalised Audit Engagement Risk Area Assurance Level Report Summary Household Waste Recycling Assurance Limited All current staff have been provided with the Household Waste Recycling Staff Guide and our sample check highlighted that sufficient staff were on duty and sites diaries were being updated. However, there was a lack of evidence to demonstrate that only those eligible were able to dispose of items at the centres and agreements with third sector organisations who uplift items to reuse required to be formalised. Housing Adaptations Grants Assurance Reasonable For the sample of grant applications tested, the processes relating to eligibility criteria, supporting documentation and owners’ agreement to housing adaptation grant conditions were found to be satisfactory. Issues were identified in the authorisation processes for awarding grants and there was a lack of monitoring that grantees adhered to the grant conditions.. Housing Assurance Statement Assurance Substantial Based on a sample check of the evidence used to demonstrate compliance, we would confirm that the Council has sufficient supporting evidence to comply with the requirements of the Housing Assurance Statement. Surplus Public Building Security Assurance Limited The audit highlighted significant weaknesses in the system of internal control. Although some actions had been undertaken satisfactorily to complete the closedown and management of the surplus buildings selected for testing, there was no formal, standardised process followed relating to this, roles and responsibilities were not clear and there was a lack of evidence to demonstate the risk assessments
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Appendix 1 2 PUBLIC undertaken and decisions made. Furthermore, the insurance conditions for unoccupied buildings regarding property inspections were not being met. Roads Funds License Renewals Assurance Reasonable The audit identified that satisfactory controls are in place for checking that vehicles purchased and sold are correctly added/removed from DVLA records. Vehicle tax payments agreed to post office monthly statements. An issue was identified in relation to the authorisation of payments for the licences. Child Protection Assurance Substantial The audit identified that satisfactory arrangements are in place for the initiating, approving and undertaking of Learning Reviews and that the decisions taken are recorded in line with National Guidance. For the Learning Review cases tested, there were delays in starting the reviews but this is a national issue due to the lack of available reviewers and this is being worked on a national basis. Learning Estate Governance Investment Programme Assurance Reasonable The arrangements in place for Governance of the Learning Estate Programme were found to be robust. The governance, communication and reporting arrangements in place for the Learning Estate Strategy and Delivery Board are effective and operating as intended. The Board is compliant with its Terms of Reference and Governance Framework and there is clear evidence of effective monitoring, cross-service collaboration and timely decision- making. Two issues were identified in relation to formal awareness sessions on capital monitoring and financing, and a formalised reporting mechanism to the Children’s Services Directorate and the Corporate Management Team. Financial Planning Assurance Substantial The arrangements in place for financial planning were found to be robust. Assumptions and financial risks related to cost pressures were reported to the Council. Non-Domestic Rates Assurance Reasonable The audit identified that satisfactory controls are in place for the billing and collection and awarding reliefs in relation to The main issue identified was in relation to reconciliation
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Appendix 1 3 PUBLIC processes which were not always being carried out timeously or being checked. Scottish Welfare Fund Assurance Reasonable The audit provides reasonable assurance that the council’s arrangements for administering Scottish Welfare Fund payments are generally effective. Governance and operational controls are supported by well-documented procedures, established review mechanisms for contested decisions, and robust budget monitoring and reporting processes. Audit testing identified that in some cases the quality of document completion required to be improved upon and the Central User List for the system in operation required to be reviewed and updated. Council Tax Refunds Assurance Reasonable The audit has identified that there was appropriate supporting documentation for the sample of council tax refunds tested. Senior officers attend a credit balance working group to discuss strategies to minimise credit balances and enable refunds. An issue was identified in relation to the input of some refunds to demonstrate adequate segregation of duties., Main Financial Systems- Key Controls Assurance Limited The audit identified that satisfactory controls are in place for system documentation and budget monitoring across the main financial systems. Some control weaknesses were identified in relation to segregation of duties and in relation to reconciliation of feeder systems. In addition there was a substantial backlog of unresolved Accounts Receivable transactions in the ERP system, with systemic workflow and error-handling issues which required management attention. Employability Partnerships Assurance Substantial The audit has identified that satisfactory arrangements are in place for Employability Partnerships operating within the Council.
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Appendix 1 4 PUBLIC Petty Cash Assurance Reasonable Whilst there are some establishments that would continue to require petty cash imprests, we identified some other imprests that could be closed as they have not been used for some time and others could be decreased as their use seems to have declined. Corporate Governance Framework Governance Substantial The adequacy and effectiveness of the revised Local Code of Corporate Governance was reviewed and evidence was available to demonstrate that the Council complies with the this code. 2. Assignments Completed and Internal Audit Report in Draft Audit Engagement Risk Area Assurance Level School Transport Assurance Reasonable Programme Management Assurance Reasonable Security of Paper Documentation Assurance Reasonable Assurance Level Substantial Assurance • There is a sound system of internal control designed to achieve the objectives of the area being reviewed. • The control processes tested are being consistently applied. Reasonable Assurance • The internal control processes are generally satisfactory with some areas of weakness being identified that could put some objectives of the area being reviewed at risk • There is evidence that the level of non-compliance with some of the control processes may put some of the objectives of the area being reviewed at risk. Limited Assurance • Weaknesses in the system of internal controls are such as to put the objectives of the area being reviewed at risk. • The level of non-compliance puts the objectives of the area being reviewed at risk. No Assurance • Control processes are generally weak with significant risk to the achievement of the objectives of the area being reviewed. • Significant non-compliance with control processes leaves the processes/systems open to error or abuse.
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Appendix 1 5 PUBLIC