Item 3. Internal Audit and Counter Fraud Progress and Performance for Period to 30 June 2026
Renfrewshire Council · 17 August 2026
Back to Audit, Risk and Scrutiny Board — 17 August 2026 and its agenda
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PUBLIC ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 17 August 2026 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Internal Audit and Counter Fraud Progress and Performance for Period to 30 June 2026 ___________________________________________________________________ 1. Summary 1.1 The Internal Audit Annual Plan was approved by the Audit, Risk and Scrutiny Board on 16 March 2026. Internal Audit measures the progress and performance of the team on a regular basis using a range of performance indicators. This report monitors progress from 1 April 2026 to 30 June 2026 in terms of the delivery of the Audit Plan for the year and compares actual performance against targets set by the Director of Finance and Resources. 1.2 In terms of Counter Fraud, no formal performance targets for fraud investigation have been established for the following reasons. Part of their work involves being the single point of contact (SPOC) for the Department for Work and Pension’s (DWP) Single Fraud Investigation Service and the Service Level Agreement for this work contains time targets for completing this work. The types of fraud referrals received to date are wide ranging and the team’s objective is to concentrate on investigating those referrals considered to contain the greatest fraud risk. They are also involved in promoting fraud awareness and assisting with the implementation of adequate fraud prevention measures within the Council. 1.3 We also provide advice and support where necessary to council services and partner bodies.
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PUBLIC 1.4 The report details progress against local and national initiatives involving Internal Audit and the Counter Fraud Team from 1 April 2026 to 30 June 2026. ___________________________________________________________________ 2. Recommendations 2.1 Members are invited to note the Internal Audit and Counter Fraud Team progress and performance to 30 June 2026. _________________________________________________________ 3. Background 3.1 The progress and performance of the Internal Audit Team is subject to regular monitoring using a number of performance measures. The Director of Finance and Resources has set annual targets for the team to demonstrate continuous improvement. In terms of the Counter Fraud team, there are time targets in place for responding to requests from the DWP’s Single Fraud Investigation Service. Due to the diverse nature of fraud referrals no formal performance targets have been established and the outcomes from investigations are regularly monitored by management. In addition, the Counter Fraud Team are heavily involved in fraud prevention measures within the Council. 3.2 Internal Audit and the Counter Fraud Team support a variety of local and national initiatives through participation in professional practitioner groups and co-ordination of national initiatives such as the National Fraud Initiative. 3.3 This report measures the progress and performance of both the Internal Audit and Counter Fraud Team for the period from 1 April 2026 to 30 June 2026. 4. Internal Audit Service Resource 4.1 Work is currently ongoing to implement the new approved structure within the Internal Audit Service. To further enhance the team in terms of succession planning, the aim of the restructure is to provide opportunities for our current staff and for someone to train as an Internal Auditor. 4.2 The Assistant Chief Auditor post has been re designated to Internal Audit Service Manager to reflect duties of the post better. Recruitment for this post has taken place and an officer has accepted this post, subject to post interview checks being satisfactory. In addition, the Senior Counter Fraud Investigator’s post has been advertised and interviews are to take place in mid-August 2026. Our current two Internal Auditors have just commenced studying for relevant professional qualifications and a Senior Auditor post is going to be replaced with a trainee post. Work has now commenced in drawing up a job description and person specification for this post which will be advertised as soon as these
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PUBLIC documents have been finalised and the post grade formally approved by the Job Evaluation Team. 5. Internal Audit Team Performance (a) Percentage of audit plan completed as at 30 June 2026 This measures the degree to which the Audit Plan has been completed. Actual 2025/26 Annual Target 2026/27 Audit Plan Completion Target to 30 June 2026 Audit Plan Completion Actual 30 June 2026 90.1% 90.0% 18% 22.0% The current audit plan completion indicator is above target for the quarter. (b) Percentage of assignments complete by target date This measures the degree with which target dates for audit work have been met. Target 2026/27 Actual to 30 June 2026 95.0% 100% Actual performance is ahead of the target set for the year. (c) Percentage of audit assignments completed within time budget This measures how well the time budget for individual assignments has been adhered to. Target 2026/27 Actual to 30 June 2026 95.0% 100% Actual performance is ahead of the target set for the year, although this could reduce over the remainder of the year. (d) Percentage of audit reports issued within 6 weeks of completion of audit field work This measures how quickly draft audit reports are issued after the audit fieldwork has been completed. Target 2026/27 Actual to 30 June 2026 95.0% 100% Actual performance is ahead of the target set for the year, although this is likely to reduce over the remainder of the year.
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PUBLIC 6. Review of the 2026/27 Internal Audit Plan 6.1 Our main focus this quarter has been on the completion of last year’s audits which were carried forward. It is planned to have these fully completed by 30 September 2026. 6.2 We have commenced our 2026/27 Audit Plan and this is subject to ongoing review in light of any organisational risks arising, and also to determine whether any assignments will have to be amended or cancelled as result of us being unable, for any reason, to undertake the work planned. At this stage we are not recommending any further amendments to the plan. 6.3 Although a vacancy factor was built into the Audit Plan, the vacancies in this quarter may result in assignments being completed later than planned and therefore progress will continue to be closely scrutinised by management. We also have had a number of Freedom of Information requests to deal with in this quarter which is not considered the norm for Internal Audit. 6.4 Any proposed amendments to the Audit Plan will be brought to this Board for approval. 7. Counter Fraud Team Progress and Performance 7.1 In line with the Service Level Agreement, the Counter Fraud Team act as the Single Point of Contact (SPOC) to route potential housing benefit fraud referrals to the DWP, liaise with the Council’s Housing Benefit Team and DWP Fraud Officers and retrieve the necessary evidence for the DWP Fraud Officers from the Housing Benefit System. 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. In addition, they also work jointly with DWP Fraud Officers on criminal fraud investigations which focuses on the investigation and prosecution of the Local Authority administered Council Tax Reduction Scheme and Social Security benefit fraud. In addition to investigation work the team also undertake fraud prevention work. 7.2 Until the Senior Counter Fraud Investigator post is filled in August supervisory duties of the team are currently being covered by the Chief Auditor and Internal Audit Service Manager. 7.3 The Counter Fraud Officers have been working on the various fraud referrals and are finalising the 2024/25 National Fraud Initiative matches which were chosen for investigation as any information requested from other Authorities/Organisation is received. A full report on the results of the National Fraud Exercise will be brought to this Board for information once Audit Scotland’s national report, which is due August/September,
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PUBLIC has been published. We have now commenced preliminary work for submission of the data for the 2026/27 initiative. 7.4 As part of our fraud prevention work, we are continuing to validate any bank account changes received from the Council’s suppliers and contractors and the details supplied by new Housing Applicants. 7.5 The financial and non-financial results for the period (April 2026 to June 2026) are noted in the table below. Financial Outcomes Period to 30 June 2026 (£) Cash savings directly attributable to preventative counter fraud intervention 44,302 Cash recoveries in progress directly attributable to counter fraud investigations 35,956 Notional savings identified through counter fraud investigation, (e.g. housing tenancy and future council tax) 145,435 Housing Benefit Savings Attributable to Joint Working by Counter Fraud and DWP Counter Fraud Officers 0 Other DWP Benefit or Tax Credit Savings identified through other Counter Fraud work or through joint working with DWP 0 Non-Financial Outcomes Period to 30 June 2026 Housing properties recovered 1 Housing applications amended/cancelled 6 Housing Allocation Priority Changed 0 Blue badge misuse warning letters issued 11 Blue Badges Cancelled 0 Supplier/Contractor Checks Undertaken 18 7.6 Our notional savings are based on the methodology prepared by the Cabinet Office. 8. Local and National Initiatives Scottish Local Authorities Chief Internal Auditors Group 8.1 The Local Authorities’ Chief Internal Auditors Group last met in June 2026 with Audit Scotland colleagues to discuss the effect on Internal Audit Plans of additional checking by Internal Audit if errors are identified in the Housing Benefit Subsidy checks undertaken by External Audit. This matter is now resolved as the Department for Work and Pensions have now agreed that this additional checking can be carried out by
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PUBLIC Revenue and Benefits staff. In addition, this group held a bytesize Cyber Conference which we attended and found to be beneficial. 8.2 The Annual Report of this group is attached at Appendix 1. The Vision of SLACIAG is set out in the Introduction and the remainder of the report provides an overview of its work throughout the year. Scottish Local Authorities Investigation Sub-Group 8.3 The Local Authorities Investigation Sub-Group also met in June 2026 and the main presentation focused on the progress of the National Fraud Initiative. Information Security Group 8.4 The Information Security Group, chaired by the Chief Auditor and attended by the Senior Managers from Information Governance, Information Management and Cyber Security teams met in April 2026 and updates from all the teams were provided. 8.5 Global Internal Audit Standards in the Public Sector Work is still ongoing to ensure all our guidance documentation reflects the requirements of these standards. _________________________________________________________ Implications of the Report 1. Financial - The Council has in place arrangements to recover any overpayments identified from the work of the Counter Fraud Team and the National Fraud Initiative. 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
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PUBLIC 9. Procurement - None 10. Risk - The progress and performance reported relates to the delivery of the risk-based internal audit plan and the mitigation of the risk of fraud and error. 11. Privacy Impact – None 12. COSLA Implications – None 13. Climate Risk – None 14. Children’s Rights - None ________________________________________________________________ Author: Karen Campbell, Chief Auditor – 07768354651
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1 PUBLIC ANNUAL REPORT FROM THE CHAIR – 2025 “WORKING TOGETHER TO SUPPORT THE KEY ROLE OF INTERNAL AUDIT” 1. INTRODUCTION 1.1 Membership of the CIPFA Scottish Local Authorities Chief Internal Auditors’ Group (SLACIAG) is open to the chief internal auditor from each Scottish local authority and the Strathclyde Partnership for Transport (SPT). SLACIAG is a Special Interest Group of CIPFA in Scotland, with operational arrangements, vision, and objectives set out in a formal Constitution. 1.2 SLACIAG’s Vision is to be the voice of internal audit across Scottish local authorities and a driving force for best practice in respect of local authority and public transport bodies internal audit, governance, and operations. 1.3 In support of that Vision, SLACIAG has the following objectives: • Secure a quality and responsive service for members of the group. • Develop the influence of the group with key decision makers and institutions in Scotland, as the key representative body for internal audit in local government with a particular emphasis on governance, risk, control and assurance matters. • Strengthen links and build long term relationships across the internal audit community within the public service. • Provide an effective group for the discussion of issues of common concern, sharing of good practice and commissioner of work to develop advanced practice. • Consider the development and training needs of our people as a collective to ensure that the best available products are procured at the best price. • Uphold the group’s key values, including: respect; openness and honesty; adding value; professional team working; sharing best practice; integrity; continuous improvement. 1.4 The purpose of this annual report to key stakeholders is to provide an update on SLACIAG’s activities and achievements over the course of 2025 and to recognise actions required to achieve its Vision. 1.5 SLACIAG has two long-established sub-groups whose activity is reflected in this report: • the Computer Audit Sub-Group (CASG); and • the Scottish Local Authorities Investigators’ Group (SLAIG). 1.6 Further sub-groups were established by SLACIAG in 2023 to lead on development actions arising from the SLACIAG Conference held in June 2023 within specific themes, including risk, data analytics, resourcing, and sustainability/climate change. Their activity in 2025 is also referenced in this report.
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PUBLIC 2. MANAGEMENT COMMITTEE 2.1 I, Chief Officer Audit & Risk, Scottish Borders Council, was appointed as Chair of SLACIAG at the AGM in March 2025, continuing as Chair following a 2-year term during 2022-2023 to facilitate succession planning within the Management Committee. I previously served as Chair of SLACIAG during 2014- 2015. In accordance with SLACIAG’s Constitution, my term of office will expire after serving 2 years at the SLACIAG AGM in March 2026. The Chair of SLACIAG joins the meetings of the CIPFA Scotland Branch Executive Committee, as SLACIAG is a special interest group of CIPFA in Scotland. 2.2 Internal Audit Manager, South Lanarkshire Council, was re-elected as Treasurer of SLACIAG at the AGM March 2025 having initially been appointed to the role in June 2020. Treasurer provided regular updates on the financial position of SLACIAG to enable the Management Committee to plan activity. 2.3 The appointments to the SLACIAG Management Committee were approved at the AGM March 2025. New members were welcomed to the Management Committee, including each sub-group Lead to ensure all sub-groups were represented. The Chairs of both CASG and SLAIG participate in the Management Committee meetings to derive benefits from their sectoral expertise and to ensure synergy when forward planning the regular meetings. 2.4 There were some membership changes during 2025, as follows: SLACIAG MANAGEMENT COMMITTEE 2025 Chief Officer Audit & Risk Scottish Borders Council Chair SLACIAG Internal Audit Manager South Lanarkshire Council Treasurer SLACIAG Service Manager Audit and Risk Management Fife Council Member; Lead for EQA and Risk Sub-Groups Audit & Risk Manager (stood down June 2025 secondment) East Dunbartonshire Council Member Service Manager Internal Audit East Lothian Council Member; Lead for Sustainability/ Climate Change Sub-Group Head of Audit (stood down June 2025 due to new job role) Glasgow City and Shetland Islands Councils Member; Lead for Data Analytics Sub-Group Audit Service Manager Stirling Council Member; EQA Moderation Panel Chief Internal Auditor Aberdeenshire and Aberdeen City Councils Member Chief Internal Auditor City of Edinburgh Council Member; Lead for Resourcing Sub-Group Senior Manager (Audit, Fraud, Safety, Risk and Insurance) North Ayrshire Council Chair CASG Corporate Fraud Team Leader East Dunbartonshire Council Chair SLAIG 2.5 There were Management Committee virtual meetings held in March, July and August 2025. The purpose of these meetings was to forward plan the SLACIAG Conference and SLACIAG and Sub-Group meetings, considering topics, setting dates and arranging speakers. 2.6 The Management Committee also oversees the External Quality Assessment (EQA) process, which is a peer review process established by SLACIAG to enable external validation of compliance with the Global Internal Audit Standards in the UK Public Sector (GIAS). The Management Committee monitors progress with completion against a recommended programme of reviews each year to ensure that all participating organisations comply with the requirement to undertake an EQA once every 5 years.
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PUBLIC 3. SCOTTISH LOCAL AUTHORITIES’ CHIEF INTERNAL AUDITORS GROUP (SLACIAG) SLACIAG Conference 2025 a) The biennial SLACIAG Conference was held on Thursday 5 and Friday 6 June 2025 at Edinburgh Napier University (ENU) Craiglockhart Campus, an incredible learning campus with superb location and facilities, hosted by the Chair of SLACIAG. The event was attended each day by 95+ delegates from nearly all Scottish Councils’ internal audit, risk management and counter fraud functions to invest in their learning and development. b) The Keynote speaker was the Director of Finance and Procurement at City of Edinburgh Council (CEC) outlining the Important Role of Internal Audit in Challenging times ‘Navigating a New Era’. They shared their perspectives on the rapid changes and challenges in the local government sector and the profession of Internal Audit, setting out the opportunity to evolve and respond to these challenges using the new global internal audit standards to continue to add value through its vital role in councils across the country (not only in terms of providing assurance, but through insight and advice on a whole range of areas of work), and reflected on the road map of the future including the new skills requirements for audit and other assurance functions in a more digitised environment. This keynote speech acted as a catalyst for the workshop connections and collaborations over the two days. c) Furthermore, guest speakers were welcomed to cover key areas over the two days, including: o Chief Internal Auditor, City of Edinburgh Council: Coordination and Resilience - Assurance Mapping o Insurance Manager, City of Edinburgh Council: Areas of emerging risk – Insurance Lead Officer perspective o Head of Technical Content and Research, Chartered Institute of Internal Auditors: Topical Requirements in new Global Internal Audit Standards in the UK public sector: Cyber security (approved; implementation February 2026); Third Party Supply Chain (being finalised; implementation 12 months from approval); and Organisational Behaviour (out for consultation) o SLACIAG Resourcing Sub-Group: Coaching and Mentoring Awareness Session - Overview of the proposed approach o Head of IT, Fife Council: Generative Artificial Intelligence (AI) – threat or opportunity for audit and fraud professionals in public sector, governance of AI o Account Manager and Senior AI Solution Engineer, Microsoft: Generative AI – the art of the possible o Chief Officer (People Resources), North Lanarkshire Council: Building a Sustainable Scottish Local Government Workforce for the Future – national developments in 2025 o Director CIFAS: Failure to Prevent Fraud: New legislation and Fraud Risk assessments & Fraud Prevention Strategies d) There were excellent networking opportunities for all delegates, significant sharing of knowledge and practice during the workshop sessions, and lots of suggestions for improvement actions in keeping with the conference title ‘Connections Collaborations Catalysts’. This will help all delegates to collectively improve, challenge and strengthen the approaches and practices within their respective organisations in Scottish local government.
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PUBLIC SLACIAG Meetings 2025 3.1 The Treasurer produced the 2024 annual accounts, which were considered in draft by the Group at the AGM in March 2025. Thanks to those at South Ayrshire Council for completing the independent audit of the 2024 Accounts. Thanks to SLACIAG Treasurer for her professionalism in fulfilling the Treasurer role and providing regular updates during 2025 on the financial position of SLACIAG which is important to ensure the Group remains financially sustainable. 3.2 There were three SLACIAG virtual meetings in 2025 with topics/speakers set out in the table below in addition to core business. The network continues to be strongly supported by members with a focus on significant and current issues. Date Topics / Speakers 21 March 2025 AGM • SLACIAG Annual Report 2024 (Chair) • SLACIAG Annual Accounts 2024 (Treasurer) • SLACIAG Subscriptions Accounts Commission report IJB Finances • The IJB CIAs from NHS boards were invited to the virtual meeting to discuss common issues raised within the Accounts Commission report (published 6 March 2025) Integration Joint Boards Financial Bulletin 2023/24 with key message “Reform urgently needed to tackle precarious health and social care finances”. Updates from Sub-Groups • External Quality Assessment (EQA), Data Analytics, Resourcing, Sustainability/Climate Change, Risk 5 September 2025 CIIA Internal Auditing Competency Framework • Head of Technical Content and Research, Chartered Institute of Internal Auditors (CIIA), provided an overview of the Internal Auditing Competency Framework (published July 2025) using CIIA Global website. The overview covered: Competency in the Global Internal Audit Standards (Domains II, III, IV, V); Components of the Competency Framework; Using the Competency Framework. SLACIAG Mentoring approach • Chief Internal Auditor (Resourcing Sub-Group Lead and CAE City of Edinburgh Council) presented an overview of Mentoring, the recent work of the sub- group, the next steps in setting up the Mentoring approach for SLACIAG members (CAEs and their teams) and evaluating it in 2026. External Quality Assessment (EQA) • Service Manager Audit and Risk Management (EQA Sub-Group Lead and CAE Fife Council) provided an update on External Quality Assessment (EQA), completing the EQA2 programme and the March 2026 target date for the EQA Sub-Group to update the guidance and templates for the SLACIAG EQA3 process to meet the requirements of the Global Internal Audit Standards in the UK Public Sector (GIAS).
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PUBLIC Date Topics / Speakers 5 December 2025 Risk Assurance Module • Risk Manager, Renfrewshire Council, presented an overview of the ‘Business As Usual Risk Assurance Module’ which they developed, and how this is used to obtain the annual assurances from Services to assist in formulating the Annual Governance Statement. Strategic Risk Analysis in Scottish Councils • Risk Sub-Group presented an analysis of corporate risks on Scottish Councils’ risk registers highlighting the themes of significant current risks as well as emerging risks. Risk focus to inform CAE horizon scanning for the development of Internal Audit Strategies and Plans 2026/27 for Scottish Councils. Strategic Audit Review • Director of Audit Services, Audit Scotland, provided an outline of the strategic audit review process, timescales and any opportunity for SLACIAG, Councils and/or CAE engagement. Accounts Commission S102 Report - Comhairle nan Eilean Siar Cyber-attack • Chief Internal Auditor, CAE City of Edinburgh Council, chaired a discussion on the learnings from the cyber-attack affecting operations and services at Westerns Isles Council, and used this to consider the GIA Topical Requirement on Cyber Security to assess risks and controls in Councils. External Quality Assessment (EQA) 3.3 The EQA Sub-Group members set out below have been active in 2025 to oversee the completion of the EQA2 schedule and to plan the EQA3 schedule. The schedule of EQA3 peer reviews (involves 29 Councils with 21 CAEs due to shared services arrangements) was approved. Appointment to the vacancy on the Moderation Panel will be considered at March 2026 AGM. EQA Sub-Group Moderation Panel Service Manager Audit and Risk Management Fife Council Chief Internal Auditor Argyll & Bute Council Chief Internal Auditor Orkney Islands Council Audit Service Manager Stirling Council Chief Internal Auditor South Ayrshire Council vacancy 3.4 Responsibility is on the reviewee Council CAE to meet EQA requirements and to keep their Audit Committee informed of any delays in meeting the 5-year timeframe. Access to the SLACIAG peer EQA process through SLACIAG membership provides a potential financial saving benefit with costs to have a similar exercise completed by an external supplier or body likely to be more than £5,000. Sub-Groups 3.5 At each of the quarterly SLACIAG meetings during 2025 updates were received from the Sub-Groups in accordance with their respective terms of reference to derive significant benefits from them. The Data Analytics Sub-Group has fulfilled its purpose and was stood down in June 2025. SLACIAG Knowledge Hub and Teams Channel 3.6 All Agendas, Minutes, and Presentations of SLACIAG meetings, Conference, EQA Framework Guidance, and other relevant documents are uploaded to the SLACIAG Knowledge Hub to enable access by all members in a secure way. New Members have been registered on the SLACIAG Knowledge Hub, including new starts from within audit teams of Councils, thus enabling greater participation. A new SLACIAG MS Teams channel hosted by Aberdeenshire Council has been created and used during 2025 to enable discussion content and document sharing, though there is scope for greater participation.
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PUBLIC 4. COMPUTER AUDIT SUB-GROUP 4.1 The main aim of the Computer Audit Sub-Group (CASG), which is a permanent sub-group of SLACIAG, is to provide a forum to share and discuss computer audit practices and developments. This includes raising awareness of new standards, updates to legislation, new and current topics of interest, and computer audit developments, resources, and techniques. 4.2 The role and outputs of CASG have been expanded during 2025 to cover IT/Cyber Security, Artificial Intelligence (AI), Data Analytics and Digital Transformation, in addition to core Computer Audit work to ensure the sustainability of the sub-group. 4.3 The Computer Audit Sub-Group (CASG) met two times in 2025, all meetings were virtual to ensure participation in the group remains good, with topics/speakers as follows: Date Topics / Speakers 09 April 2025 Cyber Security Maturity Assessments Frameworks • Head of Public Sector Cyber Resilience, National Cyber Resilience Unit, Scottish Government, was welcomed to deliver a presentation to the group, which was followed up by Questions and Discussions on how this could be used to comply with the GIAS Cyber Security Topical requirement which is mandatory by February 2026. SEEMiS Audit Report Presentation • Internal Auditor, Midlothian Council, highlighted key findings to the group from each of the control objectives from the audit report, and outlined the data analytics work which was undertaken to identify system users who were still on the system but were leavers. 05 November 2025 Cyber Assurance and Data Analytics Internal Auditor, Strathclyde Partnership for Transport (SPT), delivered a presentation followed by group discussion, covering the following key elements: • Begin the audit with an overview of cybersecurity standards. • Consider IIA guidance on cybersecurity, including topical issues and budget constraints. If complying with the Scottish Government framework then most likely you are complying with the IIA topical requirements. • Ensure policies and procedures are communicated to the right stakeholders and roles and responsibilities are clearly defined. • Check industrial control measures to safeguard assets and data flows across infrastructure components and preventing unauthorized access. • Undertake a self-assessment to identity gaps and control failures Group discussion on use of AI across the Councils and to discuss about the recent AI training from Fife Council and Microsoft Group acknowledged that Council teams are all are different levels whilst the development of AI products is fast paced. Some Council teams are using free version whilst others have licenced version of CoPilot. There’s an opportunity to learn from other Councils as AI Policies are developed. 4.4 The Agendas, Minutes, and Presentations for CASG meetings 2025, where available, are uploaded to the SLACIAG Knowledge Hub (CASG sub-folder) to enable access by all members in a secure way.
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PUBLIC 5. SCOTTISH LOCAL AUTHORITY INVESTIGATORS GROUP (SLAIG) 5.1 The main aim of the Scottish Local Authority Investigators Group (SLAIG), which is a permanent sub- group of SLACIAG, is to provide a forum to share and discuss counter fraud practices and developments. This includes raising awareness of updates to legislation, new and current topics of interest, and developments in counter fraud activities. 5.2 The Scottish Local Authority Investigators Group (SLAIG) met four times in 2025, all meetings were virtual, with topics/speakers as follows in addition to core business: Date Topics / Speakers 12 March 2025 Polygamous Working Presentation on case at Stirling Council. Sharing of red flags identified during the investigation and of steps required to ensure similar cases are suitable for criminal proceedings. • Stirling Council 12 June 2025 NHS Bribery Presentation on a recent case involving employees of NHS and of directors of a company who had been awarded a contract by NHS. Details provided of investigation methods deployed and red flags identified by the investigation. • NHS Scotland NFI Data Matching exercise Update on the current position and sharing of good practice for the sifting and investigation of matches. • Audit Scotland 25 September 2025 Proposed Fraud Landscape Report and Fraud Apprenticeship Scheme Input from Scottish Government providing an overview of a proposed Fraud Landscape Report and of a proposed Fraud Apprenticeship Scheme in partnership with Skills Scotland. • Scottish Government 10 December 2025 Tenancy Fraud detection tool Presentation on a tool developed by Lintels which searches online booking platforms. • Lintels NFI Data Matching exercise Presentation on current position of the NFI data matching exercise, deadline for completion of exercise for inclusion in next report, tips on investigation of creditors matches and of forthcoming pilot with Airbnb. • Audit Scotland 5.3 One specific task assigned to SLAIG was the Benchmarking on fraud activity and resources to align with the vison and objectives of SLACIAG and SLAIG’s Terms of Reference. The proposal was agreed in March 2025 that all local authorities will participate in a benchmarking exercise which is ongoing. The core content of the exercise will include resources, training, and outcomes. 5.4 All Agendas, Minutes, and Presentations of SLAIG meetings, and other relevant documents are uploaded to the SLAIG Knowledge Hub to enable access by all members in a secure way. Articles and discussion forums are shared to provide fraud risk insights relevant to the local government sector.
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PUBLIC 6. CONCLUSION 6.1 Notwithstanding the challenges that continue to affect our organisations, SLACIAG and its Sub-Groups have had another successful year, as evidenced by the number of delegates investing in their learning and development through their engagement during the 2-day in-person Conference in June 2025 and through participation in our virtual meetings, the range of topics discussed and the outputs created. This provides significant benefits to our members and their teams. 6.2 During the year Chief Audit Executives (CAE) considered significant matters facing our organisations such as Financial Sustainability Risks and Cyber Security Risks, shared approaches being taken to implement the new Global Internal Audit Standards, assessed their impact on the provision of assurance and advisory services, discussed key issues facing our assurance functions, including resourcing, workforce planning, skills and knowledge mix, and shared approaches being taken to address these, and focussed on specialist themes including data analytics, counter fraud and crime, climate change and sustainability. 6.3 In line with their remits the CASG and SLAIG Sub-Groups focussed on matters that are affecting our organisations and our functions/individuals. The Sub-Groups are excelling in their exploration of specific matters to the benefit of the wider Group and its members. I give thanks to those who volunteer their time to achieve this. 6.4 I would like to thank the Management Committee and the Leads of our Sub-Groups for their work in organising meetings and responding to the challenges that have arisen. I would also like to thank our speakers for giving up their time to join us at our virtual meetings during 2025 and assist us in enhancing our effectiveness as providers of assurance and compliance services. 6.5 My thanks are also extended to our members for their support, as evidenced by engaging in the 2-day in-person Conference in June 2025 and participating in our virtual meetings during 2025, but also by the generous advice and assistance provided in relation to the myriad of audit, risk and governance questions which have arisen within our membership during the year. SLACIAG relies on the dedicated and hard-working public sector professionals within its membership, recognising the time and effort of those members who volunteer their time to plan and deliver these events. We look forward to the learning and development opportunities in 2026 to support us in fulfilling the roles and responsibilities of CAE and Internal Audit functions, and the wider functions covered in some organisations. 6.6 CAEs are asked to distribute the SLACIAG Annual Report 2025 to key stakeholders within their organisations, in particular the Audit Committee or equivalent, to highlight the value of this forum. Chief Officer Audit & Risk, Scottish Borders Council Chair of SLACIAG 10 March 2026