4 Unaudited Annual Governance Statement 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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PUBLIC ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 18 May 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Unaudited Annual Governance Statement 2025 - 2026 ___________________________________________________________________ 1. Summary 1.1 The Local Authority Accounting Regulations require that an Annual Governance Statement is prepared and included in the Annual Accounts for the council. The Annual Governance Statement should be prepared in accordance with the CIPFA / Solace framework and addendum “Delivering good governance in Local Government”. 1.2 The Annual Governance Statement for 2025-26 is attached and has been prepared in accordance with the CIPFA / Solace framework and addendum “Delivering good governance in Local Government”. taking account of the Internal Audit Annual Report and Director’s evaluation of the operation of the governance arrangements within each service area. 1.3 The Governance Statement is subject to statutory audit by the Council’s External Auditors as part of their review of the annual accounts. ___________________________________________________________________ 2. Recommendations 2.1 Members are invited to note the Annual Governance Statement which will be included in the Unaudited Accounts for 2025/26 ___________________________________________________________________
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PUBLIC Implications of the Report 1. Financial - None 2. HR & Organisational Development - None 3. Community Planning – The application of sound governance arrangements supports the Council to deliver on its key objectives and priorities. 4. Legal - subject to approval by Council, the Accounts will be released for audit by the statutory deadline of 30 June 2026. 5. Property/Assets - None 6. Information Technology - None 7. Equality & Human Rights - None 8. Health & Safety – None 9. Procurement - None 10. Risk – Specific risks identified from the Chief Auditor’s Annual Report and the assessments of service Directors are disclosed in the statement. 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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1 PUBLIC Annual Governance Statement -2025/26 Scope of responsibility Renfrewshire Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently and effectively. The Council also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this overall responsibility, the Council’s members and the corporate management team are responsible for putting in place proper arrangements for its affairs and facilitating the effective exercise of its functions, which includes arrangements for the management of risk. The Council has approved and adopted a Local Code of Corporate Governance, which is consistent with the principles of the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE) framework and addendum, Delivering Good Governance in Local Government. A copy of the Local Code is available on our website Local Code of Corporate Governance - Renfrewshire Website. This statement explains how Renfrewshire Council has complied with the Local Code and also meets the Code of Practice on Local Authority Accounting in the UK, which details the requirements for an annual Governance Statement. The purpose of the governance framework The governance framework comprises the systems and processes, and culture and values, by which the Council is directed and controlled and through which it accounts to, engages with and leads the community. It enables the Council to monitor the achievement of its strategic objectives set out in the Council plan. The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. Internal control cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Council’s policies aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The governance framework The main features of our governance arrangements are described in the Local Code but are summarised below: Corporate Governance • The Council operates within an established governance framework which incorporates a scheme of delegated functions, financial regulations, standing orders relating to contracts and procedural standing orders. These elements of the framework are kept under regular review by the Council. • The Council facilitates policy and decision making through a policy board structure. • Clear and independent governance arrangements are in place with One Ren and the Renfrewshire Health and Social Care Partnership with oversight from the Head of Policy and Partnerships and the Head of Corporate Governance
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2 PUBLIC respectively and the Council’s Leadership Board. In terms of One Ren specifically, the Head of Policy and Partnerships and Head of Finance and Procurement also sit on the One Ren board as Council appointed observers. A review of services commissioned by the Council from One Ren is ongoing, and as part of this process all related service and operational agreements are subject to review. • Seven Local Partnerships are in operation and have identified local priorities. Decision making including that relating to relevant grants is delegated to each Local Partnership through a Lead Officer appointed by the Council, through the Chief Executive. Strategic Policy and Planning • The overarching strategic priorities and vision of the Council are set out in the Council Plan 2022-2027, which was refreshed in 2024 to make sure our priorities were clear and focused and to reflect how quickly the context was changing. The Council Plan is aligned to the Renfrewshire Community Plan 2017-2027 and sets out 5 strategic outcomes that the organisation will work to achieve over a 5-year period with specific priorities relating to tackling inequality, promoting economic and cultural regeneration, attainment and sustainability. These strategic outcomes are underpinned by a cross-cutting theme of Improving outcomes for children and families. • Renfrewshire’s Community Plan (which also acts as Renfrewshire’s Local Outcome Improvement Plan as required by the Community Empowerment (Scotland) Act 2015) details how the Council and its community planning partners will work together to achieve the key priorities identified for Renfrewshire. A mid- term review of the Community Plan was also undertaken in 2022 in tandem with the development of the new Council Plan, which identified three key areas of focus which would be progressed by partners. • Work has recently commenced on the refresh of both plans, with a view to these being finalised by September 2027. Service Delivery and Performance Management • Services can demonstrate how their own activities link to the Council’s vision and priorities through their service improvement plans. Performance management and monitoring of service delivery is reported through policy boards regularly including six monthly updates to the Leadership Board on progress against the implementation of the Council Plan alongside six-monthly updates to policy boards on the service improvement plans. Operational reports are also provided to relevant policy boards by different services. • The Council has developed a performance management framework and uses the Pentana Portal to co-ordinate and host all performance information. • A Performance Board was established in 2025 and chaired by the Director of Environment, Housing and Infrastructure. This is an officer group with all services represented and it’s focus is to drive improvements in performance corporately and across Council services. Service areas can be referred for a ‘deep dive’ exercise providing access to peer support and other resources to improve performance; referrals may be from the teams themselves or from senior leadership. • Regarding Performance Monitoring, the Council Plan scorecard is considered alongside other performance information each quarter by the Performance Board (established in 2025) and areas requiring additional scrutiny can be referred up to the Corporate Management Team (CMT). The CMT has access to the Pentana portal which is updated quarterly and shows performance against all Council Plan indicators and followed up with an in-depth look at
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3 PUBLIC performance in one service particular area of interest at regular intervals. Performance scrutiny sessions between the Chief Executive and Directorate teams are undertaken, typically twice a year. • An annual report on the Local Government Benchmarking Framework, which includes data for over 100 indicators for all 32 local authorities, is provided to the Audit, Risk and Scrutiny Board each year. This will increase to 6 monthly in accordance with the 2025/26 Statutory Performance Direction. • The Council makes a range of performance information available on its website, including the publication of its public performance report " How are we doing?", in line with statutory requirement. • A revised Business Continuity Policy is in operation and services have business continuity plans in place. Elected Members and Employees • The Council has adopted a code of conduct for its employees which is currently under review as part of the Council’s People Strategy implementation. A revised code is expected to be presented to Members for approval in the autumn 2026. Elected members adhere to the nationally prescribed Code of Conduct for Members. In addition, the Council has in place a protocol for Relationships between Political Groups, Elected Members and Officers. • Comprehensive arrangements are in place to ensure members and officers are supported by appropriate training and development, including a range of mandatory training which all staff undertake. • Registers of interests for elected members and senior officers are maintained and published on the Council’s website. Risk Management • Renfrewshire Council has a well-established approach to risk management with many positive features. During 2025/2026 the council has been progressing the recommendations from an external review undertaken the previous year. Of note, an updated Risk Matters (combined risk policy and strategy), has been prepared and approved by the Audit, Risk and Scrutiny Board in May 2026. Additionally, during 2025/2026, the risk and insurance function moved out of Internal Audit Services and is now under the leadership of the Head of Business Services, Risk and Safety. • Risks continue to be reported 6 monthly to the Audit, Risk and Scrutiny Board and a Risk Management Annual Report is also provided to Board in respect of corporate risk management arrangements. Online and in-person risk management courses continue to be available to all staff. Our innovative approach for business-as-usual risks (BaURAM © Renfrewshire Council) has now completed 3 years of operation and continues to provide valuable insight to how specific risks are being managed in practice across all areas of the council. Information Governance • The Director of Finance and Resources is the Council’s Senior Information Risk Owner and information risk is monitored through the Information Management and Governance Group and its sub-groups, including the Information Security Group. The Managing Solicitor (DPO) is the statutory Data Protection Officer. Cyber Security and Counter Fraud • Cyber-attacks are growing in both frequency and sophistication; with the evolving threat landscape being further influenced by geopolitical factors, which have increased the risk of cyber-attacks against UK public sector
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4 PUBLIC organisations. While no system or internal control can offer absolute protection, the Council has implemented a comprehensive, multi-layered set of cyber security controls. These controls are subject to annual testing to ensure alignment with current government standards and best practices. The Council adheres to recognised industry and public sector cyber security standards, including those set by the Public Sector Network (PSN), the National Cyber Security Centre (NCSC), the Scottish Government Public Sector Cyber Resilience Framework, and the Payment Card Industry Data Security Standards (PCI DSS). The O365 security and compliance toolset provides a wide range of protection against cyber-attacks including identity theft and phishing. The Council holds a current Certificate of Compliance for PSN standards. ICT network and digital services are continuously monitored for threats, with ongoing vulnerability assessments conducted every 2 weeks in partnership with our external cyber security provider. All activity is overseen by the Security & Compliance Team, led by a Security & Compliance Manager (Cyber) holding both CISSP and CISM certifications. Security events and alerts are monitored 24/7 by our cyber security partner, who are authorised to take immediate preventative action when necessary to protect systems and data and in addition the Council has a Cyber Incident Response Team (CIRT) contract in place, providing access to specialist external expertise in the event of a cyber incident. This includes support for incident triage, containment and eradication, digital forensics, threat intelligence, and recovery ensuring that, alongside internal capabilities, the Council can respond effectively to incidents, minimise disruption to services, and meet regulatory and reporting obligation. The Council complies with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption and the Council’s arrangements for fraud prevention, detection and investigation are managed through the corporate counter fraud service. The Council’s Counter Fraud Policy was updated in November 2024. • The Council’s approach to ‘whistleblowing’ is outlined in the whistleblowing policy which was revised in April 2026 and approved by the Finance, Resources and Customer Services Policy Board to reflect the disclosure protections being brought in as part of the Employment Rights Act 2025 reforms. A session on the policy was delivered to the Council’s senior manager forum in early 2026 to promote awareness and understanding. This governance framework has been in place at Renfrewshire Council for the year ended 31 March 2026. The system of internal financial control The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management and supervision, and a system of delegation and accountability. Development and maintenance of the system is undertaken by managers within the Council. The system includes: • Guidance on financial management supported by comprehensive financial regulations and codes; • Comprehensive budgeting systems, and detailed guidance for budget holders; • Established finance approval hierarchy within procurement and accounting systems; • Regular reviews of periodic and annual financial reports which indicate financial performance against forecasts; • Setting targets to measure financial and other performance; • Clearly defined capital expenditure guidelines; • As appropriate, formal project management principles; • The Chief Finance Officer is the Director of Finance and Resources who
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5 PUBLIC complies with the CIPFA Statement on the Role of The CFO in Public Services. The role and responsibilities of the Audit Committee and the Chief Auditor The role of the audit committee is under the remit of the Audit, Risk and Scrutiny Board which is chaired by an independent elected member; its role includes: • to approve the internal audit charter and annual internal audit plans; • to review internal and external audit reports and the main issues arising, including those relating to the annual accounts and seek assurance that action has been taken and make recommendations to the Council where appropriate; • to receive and consider the Chief Auditor’s annual report, summarising internal audit activity and the level of assurance this provides over the arrangements for internal control, risk management and governance within the Council; • to monitor the performance of internal audit; • to consider the annual review of the Local Code of Corporate Governance. The internal audit service operated in accordance with Global Internal Audit Standards in the UK Public Sector during 2025/26 and reports to the Audit, Risk and Scrutiny Board. Internal audit undertakes an annual programme of work, approved by the Board, based on a strategic risk assessment. The Council’s Chief Auditor provides an independent opinion on the adequacy and effectiveness of the governance framework, risk management and internal control. The Council conforms to the requirements of the CIPFA Statement on the Role of the Head of Internal Audit (2019). Members and officers of the Council are committed to the concept of sound governance and the effective delivery of Council services. The Audit, Risk and Scrutiny Board regularly self-assess against the CIPFA guidance, ‘Audit Committees: Practical Guidance for Local Authorities and Police’ and the latest assessment was undertaken in March 2026 to facilitate continuous improvement . The Board is compliant in all material respects, with some minor improvements required to further enhance this Board’s work. An action plan was drawn up and these improvements are being progressed. The result of each self-assessment is reported to Council. The Council’s Chief Auditor has responsibility to review independently and report to the Audit, Risk and Scrutiny Board annually, to provide assurance on the adequacy and effectiveness of the Local Code of Corporate Governance and the extent of compliance with it. The Audit, Risk and Scrutiny Board performs a scrutiny role in relation to the application of the Local Code of Corporate Governance and regularly monitors the performance of the Council’s internal audit service. Internal Audit reporting arrangements include communication of finalised audit engagements, monitoring the progress of agreed management actions and communication of any risk accepted by management which may be unacceptable to the Council. Review of effectiveness and continuous improvement Renfrewshire Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness of the framework is informed by the work of the Corporate Management Team who have responsibility for the development and maintenance of the governance environment, the Chief Auditor’s annual report, and reports from the external auditors and other review agencies and inspectorates.
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6 PUBLIC The effectiveness of the governance framework and how the organisation manages its risks is reviewed annually by the Corporate Management Team, including the use of the business as usual risk assurance model, which is an annually updated self- assessment tool covering 12 key areas of governance, internal control and risk as follows: • Asset Management • Complaints, Comments and Claims • Financial Control and Governance • Health and Safety, and managing adverse events • Information Handling • Organisational Resilience • Partnership Management • People, Wellbeing and Development • Programme Management • Service Performance • Community and Public Safety This self-assessment indicated the governance framework is being complied with in all material respects. The 2025/26 outturn compares favourably with 2024/25, with only one limited assurance score in the Information Handling module compared to six limited assurances over six modules. In addition, the review of the effectiveness of the governance arrangements and the systems of internal control within the group entities places reliance upon the individual bodies’ management assurances in relation to the soundness of their systems of internal control. The Council’s approach to continuous improvement has a number of strands. Our Council Plan and Service Improvement Planning processes drive much of this and allow for elected member scrutiny of improvement activity. Services also undertake improvement work linked to their core duties and to statutory requirements. Registered services in education, housing, social work and social care regularly undertake self- assessment activity as part of their regulatory framework and inspection process. Services within Environment, Housing and Infrastructure maintain their ISO 9001 accreditation as one means of demonstrating quality. A Transformation Board (officer group) has been established to provide strategic oversight of the Reshaping Renfrewshire programme. Chaired by the Director of Finance and Resources, this group has a membership of senior officers across the Council and reviews the progress of all major projects and programmes across the organisation, explores and manage interdependencies, shares learning and supports the management and prioritisation of resources across the programme. The Council continues to recognise the need to exercise strong financial management arrangements to manage the financial pressures common to all local authorities and it has robust financial control and financial planning processes in place. The CIPFA Financial Management (FM) Code was first adopted by the Council in June 2021, and the resulting action plan contained 59 improvement actions. There are currently 8 outstanding actions still in progress, most of a longer-term nature, with target dates up to December 2026. Work to refresh the initial engagement will be undertaken by the end of 2026/27 to ensure that improvement work continues to be focused, relevant and effective. The Council continues to manage a number of very significant issues and is operating within a context of new and emerging challenges which require the Council to respond
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7 PUBLIC very flexibly to the changing needs of local businesses, communities and citizens. These factors include: • Ongoing economic and geopolitical uncertainty and volatility, which has significantly increased costs and impacted supply chains utilised by the Council and its partners. The linked cost of living crisis has also required the Council to respond in new ways with partners to meet the needs of those most vulnerable across Renfrewshire through our Fairer Renfrewshire Programme and Action Plan. This remains under regular review, most recently to consider the impacts of the conflict in the middle east in terms of local household income as well as in relation to the Council and its expenditure. • Inflationary cost pressures, including those linked to pay, continue to significantly impact the Council’s financial position. The Council continues to progress its long-term change and transformation programme which will drive a range of service improvements and financial savings across the organisation over both the short and medium term. • Demand pressures on Council services continue to be experienced particularly in relation to areas such as housing and homeless services and the provision of support through, for example, the Scottish Welfare Fund. • New and emerging policy developments at a Scottish and UK government level, including in relation to employment legislation, immigration, education provision including reduced class contact time and the public service reform agenda in Scotland, particularly in relation to health and social care and education. • Responding to the changing needs of our local population, particularly in relation to migration and asylum, support for refugee resettlement and overall population growth which is projected to continue into the longer term • Continuing to embed new ways of working across all aspects of our service delivery. This includes building on new working practices following the pandemic through hybrid and flexible working opportunities, as well as embracing the opportunities that can be realised through new advances such as AI. • Progressing the next phase of the Council’s transformation journey – Reshaping Renfrewshire which will focus on improving outcomes for local communities and residents, whilst addressing the ongoing financial challenges facing the Council over the medium term. The programme also has a strong focus on delivering against key corporate priorities such as place shaping – focusing on investment in infrastructure such as housing and our learning estate. • Building trust and engagement mechanisms with local stakeholders is a particular priority for the Council strategically and at a service level. Building on our consultation and engagement strategy and the results from our resident research, a strong commitment has been made to strengthening the Council’s approach to listening and engaging authentically with citizens and communities. It is recognised that trust in public sector authorities is reducing, and the Council will need to respond positively to address this, including by tackling issues such as mis/dis/mal information. • Regardless of the Council’s technical preparedness for a cyber attack, the threat remains acute and present, as evidenced by successful attacks on other public sector organisations, with the risk of significant impact on council operations. Audit Scotland introduced a new approach to auditing Best Value in local government which commenced in 2023 as part of the next 5-year Best Value Audit programme. This approach involves thematic areas of focus each year which will be considered for all local
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8 PUBLIC authorities within the same snapshot in time rather than the previous rolling programme of deep dive audits which inspect each local authority across a five-year programme. These reviews have included leadership and governance, workforce innovation and transformation. The thematic review in 2026 will consider asset management. The Council has received positive reports in relation to each of the thematic reviews which have each been presented to the Audit Risk and Scrutiny Board by the Council’s external auditors, Azets. Following a report to the Accounts Commission in 2024 in relation to Dargavel Primary School and the related s102 process, the Council was notified that further updates in relation to the s102 report would be incorporated within wider best value audit activity planned for Renfrewshire Council, which would be accelerated to early 2025. The Best Value Audit process was undertaken during 2025, with findings being reported in May 2025 by the Accounts Commission. Overall the report was very positive with it being noted 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.’ The 2024/25 Action Plan from the separate self-assessment against the CIPFA guidance for effective Audit Committees which was undertaken with the members of the Audit, Risk and Scrutiny Board has now been implemented and the agreed actions are currently being progressed. The external auditors, Azets, provided an unqualified audit opinion on the 2024/25 annual accounts and concluded in their annual audit report that the vision, leadership and governance arrangements were effective and appropriate. Regular reviews of the Council’s governance arrangements are undertaken by internal audit. The programme of work undertaken by internal audit during 2025/26 identified three occasions where a limited assurance level was given in relation to the internal control, risk management and governance objectives for the specific areas of each audit review. All were specific to individual service areas and although these areas require to be addressed there is no significant impact on the Council’s overall system of internal control and action plans are in place to address the risk identified. In addition, internal audit conducted two investigative reviews of grant funding given to community organisations and these identified that the Council governance arrangements for grants were unsatisfactory and the Council’s grant conditions required to be reviewed. This is being progressed by Senior Management. Internal audit undertakes an annual exercise to ensure that recommendations arising from internal audit engagements have been implemented by service management and the results are reported to the Audit, Risk and Scrutiny Board. This work highlighted that 85% of recommendations were implemented by the due date, 14% had passed their original due date and revised implementation dates have now been set and 1% were superseded. Of the 33 recommendations followed up that were deemed to be critical, 27 have been fully implemented and 6 has been partially implemented. Revised implementation dates have been agreed for each of the partially implemented recommendations. It is our view that the Council has in place a sound framework for governance, risk management and internal control and that appropriate mechanisms are in place to identify any areas of weakness. This is corroborated by an Annual Report incorporating
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9 PUBLIC the Annual Assurance Statement prepared by the Council’s Chief Auditor stating that subject to management addressing the critical and important recommendations made and the limited assurance report findings, 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. Forward look on Governance Three main developments have been identified which are likely to further strengthen governance arrangements in the forthcoming year. • At the Leadership Board on 29 April 2026, it was agreed that the Council will progress the AI Transformation Programme 2026 -2030 Business Case. As part of that process various elements of governance and Elected Member oversight were agreed. This included the creation of three specific officer groups each dealing with specific matters arising from the project. The AI Strategic Programme Officer Board (chaired by the Chief Executive) will provide the overall strategic direction and oversight of the project, with key responsibilities including, approving programme priorities, ensuring alignment with corporate and service strategies, monitoring delivery progress, managing financial oversight and accountability, and reviewing risks and mitigation plans. The AI Programme Delivery Team (chaired by the Programme Lead) will coordinate day-to-day activity, working closely with services to plan, test, deploy and optimise AI solutions, with key responsibilities including coordinating technical delivery, managing sprint cycles and deployment plans, ensuring compliance with governance decisions, supporting services with implementation activities, and monitoring early impact and usage data. The Ethics and Assurance Board (chaired by the Head of Corporate Governance) will ensure responsible AI deployment with key responsibilities including reviewing Data Protection Impact Assessments, ensuring GDPR compliance, upholding ethical AI principles, monitoring fairness, transparency and accountability, and ensuring human oversight in all critical decision-making processes. To ensure Elected Member oversight of the project it was agreed that regular updates on the AI Transformation Programme 2026 – 2030 will be brought to the Leadership Board at appropriate key junctures as the overall programme is progressed over the next 3+ years, and that a 6-monthly ‘AI Transparency Report’ will also be brought to the Leadership Board outlining AI tools used by the Council, the purpose and function of each system, any data-protection or equality assessments undertaken, changes since the previous report, and any identified risks, mitigations or recommendations for future deployment.” • Following on from the Internal Audit investigative reviews of grants, management acknowledged that the processes for awarding of grants throughout the Council to third party organisations were inconsistent and that the Council’s Conditions of Grant required updating. A governance review of grant processes is therefore planned to commence in 2026/27. • Reflecting the approach set out and reported through the Reshaping Renfrewshire Transformation and Change Programme to the Council’s Leadership Board in February 2026, evaluation findings from the leadership programme, alongside insights from the Cultural Assurance Model (CAM), are being used to inform a more targeted and risk-based approach to leadership
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10 PUBLIC development for line managers and senior officers across the Council. This represents a move away from time-limited development programmes towards a more sustained focus on leadership capability as an enabler of effective governance and assurance. Leadership development activity will prioritise the behaviours and capabilities that evidence shows have the greatest impact on performance, assurance, and team climate. As part of this next phase, a new managers’ induction module will be introduced to provide a consistent foundation for colleagues taking on management responsibilities within the Council. The module will support new starters to understand their role in managing performance, risk, governance and assurance from the outset, while existing managers will also be encouraged to complete it to reinforce core expectations. This approach recognises transition into management as a point of heightened organisational risk and supports more consistent managerial accountability and assurance across services. In parallel, work is underway to design a dedicated development offer for newly appointed Chief Officers, whether recruited internally or externally. This programme will provide structured, assessment-informed development alongside coaching and mentoring, supporting effective transition into role, early establishment of leadership authority, and understanding of the Council’s organisational, governance and cultural context. The intention is to launch the programme in autumn 2026 as part of a more coherent, end-to-end leadership development pathway that supports succession planning, long-term organisational resilience, and strengthened corporate governance. Work, planning for the next local government elections and the new council in 2027, has commenced throughout the Council and a highly experienced group of staff will lead and deliver workstreams that support electoral event with integrity. In addition, our external auditors Azets will undertake planned annual best value audit activity in Summer 2026, with a key focus on the Council’s activities in relation to Fairness and Inequality. Any related findings will be reported as per the standard process through the Annual Audit report in September 2026. Action Plan Following consideration of the review of adequacy and effectiveness the following action plan has been agreed to ensure continual improvement of the Council’s governance arrangements. Agreed action Responsible person Date Undertake review of Council’s conditions of grant and produce updated internal guidance on grants management processes Head of Policy and Partnerships December 2027 Implement Actions arising from the Audit, Risk and Scrutiny Board Member’s self- assessment which are detailed in the ARSB Annual Report, reported to Council in May 2026. Head of Corporate Governance/Chief Auditor March 2027 Update on Previous Action Plans The agreed actions will be subject to review to identify the progress being made in implementing these actions.
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11 PUBLIC 2024/25 Action Plan Agreed action Progress Update Responsible person Date Implement recommendations from Best Value Reports, including the follow up report on the council’s approach to community engagement and culture change All recommendations are incorporated as actions within the Council’s agreed Corporate Improvement Plan. Updates on progress are reported on a 6 monthly basis to Leadership Board. The last update was provided in February 2026 and noted the majority of actions were now complete with a small number of longer term actions being implemented on an ongoing basis, but within agreed deadlines. Chief Executive & Director of Finance and Resources Complete Implement the new Statutory Performance Information Direction in line with statutory timescales All requirements relating to the new SPI Direction have been fully implemented – this includes amendments to our public performance report and increased frequency of reporting of Local Government Benchmarking data to Audit Risk and Scrutiny Board. Head of Policy and Partnerships Complete Address the improvement action arising from the independent review of the Council’s Risk Management Arrangements All agreed recommendations are being taken forward and are incorporated into the Strategic Risk Management Development Plan. The progress of this plan is monitored over the life cycle of the Risk Management Policy and progress is reported as part of the Annual Report. Director of Finance and Resources Complete 2023/24 Action Plan Agreed action Progress Update Responsible person Date Implement improvement plan arising from the Corporate Self- Assessment Exercise. With one exception , all of these actions have been completed. The development of a webpage on transformation is currently being progressed. Head of Policy and Partnerships September 2026 The recommendations Recommendations have been actioned, Director of Finance and Complete
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12 PUBLIC arising from the review of the corporate health and safety internal audit report, will be considered and an action plan developed for implementation. with one ongoing (the procurement and implementation of a H&S management system) which is progressing. Resources 2022/23 Action Plan All the agreed improvement actions are now complete. Executive Summary Assurance Subject to the above, and on the basis of the assurances provided, we consider the governance and internal control environment operating during 2025/26 provides reasonable and objective assurance that any significant risks impacting on the achievement of our principal objectives will be identified and actions taken to avoid or mitigate their impact. Systems are in place to continually review and improve the governance and internal control environment and action plans are in place to address identified areas for improvement.