Agenda Document Pack - Audit, Risk and Scrutiny Board - 19/05/2025
Renfrewshire Council · 19 May 2025
Back to Audit, Risk and Scrutiny Board — 19 May 2025 and its agenda
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Notice of Meeting and Agenda Audit, Risk and Scrutiny Board Date Time Venue Monday, 19 May 2025 15:00 Council Chambers (Renfrewshire), Council Headquarters, Renfrewshire House, Cotton Street, Paisley, PA1 1AN MARK CONAGHAN Head of Corporate Governance Membership Councillor Andy Doig (Convener): Councillor Janis McDonald (Depute Convener): Councillor Jennifer Adam: Councillor Gillian Graham: Councillor Lisa-Marie Hughes: Councillor Robert Innes: Councillor James MacLaren: Councillor Will Mylet: Councillor Ben Smith: Further Information This is a meeting which is open to members of the public. A copy of the agenda and reports for this meeting will be available for inspection prior to the meeting at the Customer Service Centre, Renfrewshire House, Cotton Street, Paisley and online at http://renfrewshire.cmis.uk.com/renfrewshire/CouncilandBoards.aspx For further information, please email democratic-services@renfrewshire.gov.uk Members of the Press and Public Members of the press and public wishing to attend the meeting should report to the customer service centre where they will be met and directed to the meeting. Published: 14/5/25
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Hybrid Meeting Please note that this meeting is scheduled to be held in the Council Chambers. However, it is a hybrid meeting and arrangements have been made for members to join the meeting remotely should they wish. Webcasting of Meeting This meeting will be filmed for live or subsequent broadcast via the Council’s internet site – at the start of the meeting the Convener will confirm if all or part of the meeting is being filmed. To find the webcast please navigate to https://renfrewshire.public-i.tv/core/portal/home Apologies Apologies from members. Declarations of Interest and Transparency Statements Members are asked to declare an interest or make a transparency statement in any item(s) on the agenda and to provide a brief explanation of the nature of the interest or the transparency statement. AUDIT 1 Unaudited Annual Governance Statement 2024 - 2025 Report by Chief Auditor. 1 - 12 2 CIPFA Code of Practice – Governance of Internal Audit in UK Local Government Report by Chief Auditor. 13 - 22 3 Summary of Internal Audit Reports for period 1 January to 25 April 2025 Report by Chief Auditor. 23 - 42
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4 Internal Audit Annual Report 2024/25 Report by Chief Auditor. 43 - 64 5 Summary of Internal Audit Activity in Partner Organisations 1 October to 25 April 2025 Report by Chief Auditor. 65 - 70 MONITORING & REVIEWING SERVICE DELIVERY PERFORMANCE POLICIES AND PRACTICE 6 Risk Management Annual Report 2024/25 Report by Director of Finance & Resources. 71 - 82 7 Risk Report, May 2025 Report by Director of Finance & Resources. 83 - 120 8 Records Management Plan Update Report by Director of Finance & Resources. 121 - 126 9 Local Government Benchmarking Framework 2023/24 Report by Chief Executive. 127 - 154 10 Audit Scotland Finance Bulletin 2023/24: Integration Joint Boards Report by Chief Executive. 155 - 178 11 Audit, Risk & Scrutiny Board Annual Report 2024/25 Report by Director of Finance & Resources. 179 - 192 AUDIT EXEMPT EXCLUSION OF PRESS AND PUBLIC The Board may by resolution exclude the press and public from the meeting during consideration of the following items of business as it is likely, in view of the nature of the business to be transacted, that if members of the press and public are present, there could be disclosure to them of
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exempt information as defined in paragraph 1 of Part I of Schedule 7A of the Local Government (Scotland) Act, 1973. Exempt Item Exempt documents are no longer available in print format. You will require to log in to Audit, Risk & Scrutiny Exempt Items to access documents. Please note that access to exempt documents is now restricted. 12 Summary of Internal Audit Investigation/Review Reports for period 1 January to 25 April 2025 Report by Chief Auditor.
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19 May 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Unaudited Annual Governance Statement 2024 - 2025 ___________________________________________________________________ 1. 1.1 1.2 Summary 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 guidance “Delivering good governance in Local Government”. The Annual Governance Statement for 2024-25 is attached and has been prepared in accordance with the relevant regulation and guidance 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 2024/25. ___________________________________________________________________ Item 1 Page 1 of 192
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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 2025. 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 Implications of the Report ________________________________________________________________ Author: Karen Campbell, Interim Chief Auditor Page 2 of 192
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1 Annual Governance Statement 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, 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. It is the mechanism through which the Council accounts to, engages with and leads the community and 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 their impact if realised, and to manage them efficiently, effectively and economically. The governance framework 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 community planning partners will work together to achieve the key priorities identified. 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. The main features of our governance arrangements are described in the Local Code but are summarised below: 1. The key outcomes the Council is committed to delivering with its partners, are set out in the Community Plan; 2. The Council operates within an established governance framework which incorporates a Page 3 of 192
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2 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; 3. The Council facilitates policy and decision making through a policy board structure; 4. 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; 5. With regard to Performance Monitoring, the Council Plan scorecard is considered alongside other performance information each quarter by the Corporate Management Team. In addition, an in-depth look at performance in one service particular area of interest is undertaken at regular intervals. Performance scrutiny sessions between the Chief Executive and Directorate teams are undertaken, supported by a Peer Director model; 6. The Council has developed a performance management framework and uses the Pentana ict system to co-ordinate and host all performance information. A performance management guide has been refreshed and shared with relevant Council officers to guide practice; 7. A Performance Board is being established which will be chaired by the Director of Environment, Housing and Infrastructure and will drive improvements in performance corporately and across Council services; 8. 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 in frequency in relation to the recently revised Accounts Commission’s Statutory Performance Direction; 9. 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 requirements; 10. The Council has adopted a code of conduct for its employees. 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; 11. In 2024/25 Willis Towers Watson undertook an independent review of the Council’s risk management arrangements and concluded that “Renfrewshire Council has a well-established approach to risk management with many positive features, especially in terms of strong governance and a positive cultural attitude towards risk management at a corporate level.” The Council’s approach to risk management is set out in the combined risk management policy and strategy, Risk Matters, and is well embedded. Risks are 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 are available to all staff. In 2023/24 the council launched an innovative approach for business-as-usual risks (BaURAM © Renfrewshire Council). Now in year two of implementation, Heads of Service have continued to engage well with the model. All 12 modules within the model showed an improved position in assurance levels when compared with year one. Directors are required to confirm their assurance levels for their service areas and the Heads of Service returns within BaURAM provide Directors with a tangible evidence base to support their assurance. To complete the loop in terms of organisational learning and continuous improvement, each module in BaURAM has its own identified subject matter experts (SME) and the SMEs use responses within the modules to inform any corporate improvements that can be taken forward; 12. 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; 13. Comprehensive arrangements are in place to ensure members and officers are supported by appropriate training and development; 14. Registers of interests for elected members and senior officers are maintained and published on the Council’s website; Page 4 of 192
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3 15. 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 during 2024/25; 16. The Council’s approach to ‘whistleblowing’ is outlined in the whistleblowing policy; 17. Cyber-attacks are growing in both frequency and sophistication. 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; 18. 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 respectively and the Council’s Leadership Board; 19. 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. This governance framework has been in place at Renfrewshire Council for the year ended 31 March 2025. 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: 1. Guidance on financial management supported by comprehensive financial regulations and codes; 2. Comprehensive budgeting systems, and detailed guidance for budget holders; 3. Regular reviews of periodic and annual financial reports which indicate financial performance against forecasts; 4. Setting targets to measure financial and other performance; 5. Clearly defined capital expenditure guidelines; 6. As appropriate, formal project management principles; 7. The Chief Finance Officer is the Director of Finance and Resources who 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: 1. to approve the internal audit charter and annual internal audit plans; 2. 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; 3. to receive and consider the Chief Auditor’s annual report, summarising internal audit activity Page 5 of 192
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4 and the level of assurance this provides over the arrangements for internal control, risk management and governance within the Council; 4. to monitor the performance of internal audit; 5. to consider the annual review of the Local Code of Corporate Governance. The internal audit service operated in accordance with Public Sector Internal Audit Standards during 2024/25 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 Committee self-assessed against the CIPFA guidance, Audit Committees: Practical Guidance for Local Authorities and Police. The Committee is compliant in all material respects, with some minor improvements required to improve clarity of roles. An action plan was prepared and these improvements have now been completed. A further annual self-assessment is planned to reflect on the Board’s operations and facilitate continuous improvement. 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 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 unacceptable risk identified to the Board. 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. 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: 1. Asset Management 2. Complaints, Comments and Claims 3. Financial Control and Governance 4. Health and Safety, and managing adverse events 5. Information Handling 6. Organisational Resilience 7. Partnership Management 8. People, Wellbeing and Development 9. Procurement and Contract Management 10. Programme Management 11. Service Performance 12. Community and Public Safety This self-assessment indicated the governance framework is being complied with in all material respects. The 2024/25 outturn compares favourably with 2023/24, with all modules showing an improved position. 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 Page 6 of 192
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5 relation to the soundness of their systems of internal control. The Council’s approach to continuous improvement has several strands and is closely aligned to our Council value of “we value learning”. 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. The Council has embedded self-assessment as a core element of its approach to improvement. A full corporate self- assessment was undertaken in 2023, which was based on the PSIF/EFQM model widely used across the public sector. In 2024/25 this was supplemented by a specific self-assessment exercise on organisational culture, through our new Cultural Assurance Model. Developed in partnership with the Improvement Service, this is the first model of this type in Scotland for local government and will used in conjunction with Employee Survey and Employee forum outputs to strengthen organisational culture. Improvements identified through the self-assessment process have been used to inform the development of a Corporate Improvement Plan. The Plan also includes specific actions identified by our external auditors through the Annual Audit Report and will also include any specific improvement actions flowing from the Council’s Best Value report, with the findings due to be published by the Accounts Commission in June 2025. The first iteration of the Corporate Improvement Plan was reported to the Leadership Board in February 2025. A new Strategic Learning Estate Strategy was developed in 2024/25 and its implementation will span across several years. To assist in the governance of this programme a new Learning Estate Strategy and Delivery Board has been established with clear Terms of Reference to manage and control the delivery of the learning estate programme effectively and ensure all formal governance requirements within the Council are observed. The Council continues to recognise the need to exercise strong financial management arrangements to manage the financial pressures common to all local authorities and 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 16 outstanding actions with target dates up to December 2026. Work to refresh the initial engagement will be undertaken by the end of 2025/26 to ensure that improvement work continues to be focused, relevant and effective. The Council continues to manage a number of very significant challenges and is operating within a context of new and emerging challenges which require the Council to respond very flexibly to the changing needs of local businesses, communities and citizens. These factors include: 1. Ongoing economic uncertainty and volatility, which has significantly increased costs and impacted supply chains utilized 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. 2. 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 the next three years. 3. New and developing demand pressures continue to impact the Council, including in relation to issues such as migration and asylum, in relation to support for Ukrainian Displaced Persons, Unaccompanied Asylum-Seeking Children and Young People and more recently the widening out of the asylum dispersal programme and Afghan Resettlement programmes. 4. The Council continues to mitigate some of the impacts on our communities from the pandemic, including those relating to increasing living costs and by supporting routes to Page 7 of 192
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6 employment to try and boost our working age population. Improving outcomes for children and families underpins all that we wish to achieve as a Council. As an organisation, the Council has continued to adopt new ways of working, building on the strong approach developed during the pandemic in areas such as digital access for customers, and embracing hybrid working. Much of the business-as-usual work has fully resumed, including: 5. The work on social renewal is now part of the wider Fairer Renfrewshire programme, which is overseen by the Fairer Renfrewshire sub-committee of the Leadership Board. 6. The current Right for Renfrewshire transformation programme is now reaching its natural end but there is a requirement for the Council to continue to maintain a focus on progressing the delivery of further change, transformation and improvement to address the ongoing financial challenge that is expected to persist over the medium term. Therefore, the next phase of the long-term programme will continue to have a similar focus on development of the organisation, which will be critical for the Council to deliver further financial savings, but it will be coupled with a strategically wider outward focused perspective that considers Renfrewshire’s geography and its communities. A report summarising progress to date and outlining the next phase of transformation through the Reshaping Renfrewshire programme, was approved by the Leadership Board in February 2025. 7. A new 5-year digital strategy has been developed using customer insights, which focuses on corporate transformation to ensure the Council and its services continue to develop for the future needs of its customers in the most appropriate and efficient manner. The organisation has been recognised for its best practice in terms of its activities to reduce digital exclusion in a recent national report by Audit Scotland and is working collaboratively at pace to progress significant programmes of digital transformation, including in relation to Artificial Intelligence utilisation. Audit Scotland have 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 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. This is a significant shift in approach and has involved thematic reviews of leadership in 2023 and workforce innovation in 2024. In 2025, the Accounts Commission have identified a focus on transformation, and officers have provided information to our external auditors to assist with this process. Following the findings of the independent review into the circumstances of the errors in the planning and delivery of school provision in the Dargavel area and the related Account Commission s102 Investigation Report, a combined action plan was drawn up, detailing the Council’s response. The progress of this action plan was regularly reported to the Audit, Risk and Scrutiny Board until all the actions were completed in November 2024. The Accounts Commission notified the Council 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. This work has been ongoing in recent months in conjunction within our external auditors and it is anticipated that a report relating to local best value activity will be presented to the Accounts Commission in May 2025. The Council’s best value report was drafted by Audit Scotland in recent months, utilising published information drawn from reports by the Council’s external auditors Azets. The report summarises improvements identified within these reports, which as highlighted above, are embedded and are being progressed through the Council’s overarching Corporate Improvement Plan. This includes the best value thematic reviews which the Accounts Commission requires external auditors to progress each year, reviewing the Council through a specific lens. In the last few years this has covered themes such as Leadership, Workforce Innovation, whilst this year’s theme of Transformation has not yet been formally audited and reported. The report will be considered by the Accounts Commission on 15 May, with findings subsequently being published. The Best Value report is positive and notes Page 8 of 192
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7 “Renfrewshire Council remains committed to the principles of Best Value and has made good progress on previous improvement actions identified in best value reports.” “In a recent follow-up report the auditor reported they are satisfied that the council has demonstrated evidence of a positive corporate culture and continues to take a range of actions aimed at supporting further development of openness and transparency” The Council undertook a comprehensive review of its governance arrangements through a member led cross party working group, the recommendations arising were reported to and approved by the Council on 29 February 2024 and have now all been actioned. The 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 completed. A further annual self-assessment has been planned to reflect on the Board’s operations and facilitate continuous improvement. Following the successful roll out of the bespoke Leadership Development Programme to Chief Officers, this has been extended to 3rd tier managers over 2 cohorts. This includes a governance module. The programme for cohorts 2 and 3 has now been completed and an evaluation has been undertaken, which will inform plans for future programmes. The external auditors, Azets, provided an unqualified and unmodified audit opinion on the 2023/24 annual accounts. Regular reviews of the Council’s governance arrangements are undertaken by internal audit. Three specific area were identified in the 2023/24 governance statement as impacting on the overall internal control, risk management and governance arrangements. These were: 1. Disaster recovery –. The review identified that improvements were required, including formal identification of critical systems and formalising the procurement guidance to ensure that services procured meet the required disaster recovery arrangement. All the recommended actions have now been implemented. 2. Health and Safety – An external health check, which was commissioned, has just been completed and management are progressing the recommendations. 3. Purchasing processes (corporate credit cards) - Compliance against the corporate procedures required to be improved upon. All the recommendations have now been implemented. The programme of work undertaken by internal audit in 2024/2025 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 which is an improvement on last year. 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 risks identified. 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 76% of recommendations were implemented by the due date. 21% had passed their original due date and revised implementation dates have now been set and 4% were superseded. Of the 19 recommendations followed up that were deemed to be critical, 13 have been fully implemented, 1 has been superseded, 1 has been partially implemented, and 4 have not yet been implemented. Revised implementation dates have been agreed for each of these 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 the Annual Assurance Statement prepared by the Council’s Interim Chief Auditor stating that subject to management addressing the critical and important Page 9 of 192
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8 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. 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:- Agreed action 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 Chief Executive & Director of Finance and Resources 31 October 2025 Implement the new Statutory Performance Information Direction in line with statutory timescales Head of Policy and Partnerships 31 December 2025 Address the improvement action arising from the independent review of the Council’s Risk Management Arrangements Director of Finance and Resources 31 December 2025 The agreed actions will be subject to review to identify the progress being made in implementing these actions. Update on Previous Action Plans 2023/24 Action Plan Agreed action Progress Update Responsible person Date Implement improvement plan arising from the Corporate Self- Assessment Exercise. The vast majority of actions have been completed or are nearing completion and represent a significant programme of work across the range of Best Value themes. The Improvement Plan will be regularly updated and we last reported progress to Leadership Board in February 2025 Head of Policy and Partnerships July 2025 The recommendations arising from the review of the corporate health and safety internal audit report, will be considered and an action plan developed for implementation. In addition to the Internal Audit Report, an external health check on Health & Safety management and systems was undertaken. The independent review made a number of improvement recommendations which will be actioned during 2025. Director of Finance and Resources December 2025 2022/23 Action Plan Page 10 of 192
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9 Agreed action Progress Update Responsible person Date All service level business continuity plans are to be updated to record all the ICT risks referred to in the council’s business continuity plan template for all service areas. All service areas have updated their business continuity plan templates. An external quality assurance review has now completed and any improvement actions from this review will be implemented. Service Directors December 2025 A review of the current manual payment process is under review with key stakeholders from the Corporate Procurement Unit and the Finance Business Partners, this will enable and introduce an exception policy to support the No Purchase Order No Payment. Once the review is conducted the exception policy will be implemented and the No Purchase Order No Payment approach will commence, this is anticipated to take up to 12 Months. The Council’s No PO No Pay Policy was approved by the Finance, Resources and Customer Services Policy Board in November 2024. While early adoption is encouraged across services, the policy will be formally implemented upon launch of the new P2P Module within Business World ERP, currently targeted for September 2025 Strategic Lead (P2P) September 2025 Assurance Subject to the above, and on the basis of the assurances provided, we consider the governance and internal control environment operating during 2024/25 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. Page 11 of 192
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19 May 2025 ___________________________________________________________________ Report by: Director of Finance & Resources ___________________________________________________________________ Heading: CIPFA Code of Practice – Governance of Internal Audit in UK Local Government ________________________________________________________ 1. Summary 1.1 The Chartered Institute of Public Finance and Accountancy (CIPFA) has published a Code of Practice for the Governance of Internal Audit in UK Local Government to support authorities in establishing and maintaining their internal audit arrangements in line with the statutory regulations It came into effect from 1 April 2025 and supports the practice of internal audit under the Global Internal Audit Standards in the UK Public Sector. 1.2 The Code is aimed at those responsible for the governance of internal audit including the Council’s Section 95 Officer and the Audit Committee and is also relevant for heads of internal audit and audit providers to the sector. 1.3 This report seeks to provide members with an overview of the new CIPFA guidance and provide assurance to members as to how the Council, in the main complies with the guidance. The outcomes of self assessment exercise by the Interim Chief Auditor and improvement actions identified are detailed in Appendix 1 of this Report. __________________________________________________________________ Recommendations 2.1 It is recommended that members of the Audit, Risk and Scrutiny Board note the: • results of self assessment exercise undertaken to ensure compliance with the CIPFA Code on the Governance of Internal Audit Item 2 Page 13 of 192
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• evidence available to support compliance • actions to be undertaken to ensure full compliance with the code ___________________________________________________________________ 3. Background 3.1 Local government bodies have a requirement for internal audit as set out in national regulations. New standards, Global Internal Audit Standards (UK public sector), have been introduced from 1 April 2025, which Local Authority Internal Audit teams must follow, consisting of the Global Internal Audit Standards (GIAS) of the Institute of Internal Auditors (IIA) and the CIPFA Application Note: Global Internal Audit Standards in the UK public sector. 3.2 When the IIA published the GIAS, it recognised that in the public sector, governance structures or other laws or regulations may impact on how the essential conditions can be applied. This is the case in UK local government, where there isn’t a straightforward replacement for the ‘board’ as described in GIAS. 3.3 This Code provides the framework to meet the objectives of the essential relevant conditions of the Global Internal Audit Standards (UK public sector), by providing for the necessary governance of internal audit, but in a way that is appropriate for UK local government bodies. It includes roles and responsibilities of the audit committee, senior management and those charged with governance towards internal audit. ___________________________________________________________________ Implications of the Report 1. Financial - None 2. HR & Organisational Development – None 3. Community Planning – Safer and Stronger - None 4. Legal - None 5. Property/Assets - None 6. Information Technology - None 7. Equality & Human Rights - None 8. Health & Safety – None Page 14 of 192
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9. Procurement - None 10. Risk - The report addresses the risk of non-compliance against the revised CIPFA guidance for the Governance of Internal Audit 11. Privacy Impact – None 12. COSLA Implications – None 13. Climate Risk – None 14. Children’s Rights – None. ________________________________________________________________ Author: Karen Campbell, Interim Chief Auditor Page 15 of 192
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Appendix 1 Compliance with the CIPFA Code – Governance of Internal Audit Provision Compliance Evidence Action 1. Providing authority for internal audit 1.1 Internal Audit’s Mandate - To be effective and to meet the requirements of professional standards, internal audit’s authority needs to be established. Internal Audit’s (IA) Mandate is stated in national regulations. However each Local Authority may agree a wider statement of IA’s authority which should be formally approved. Yes – the IA Mandated Authority and Access are set out in the Internal Audit Charter which has been approved by the Audit, Risk and Scrutiny Board and in the Council’s Financial Regulations and Codes Internal Audit Charter A self assessment is being undertaken by the Interim Chief Auditor against the GIAS in the UK Public Sector. An action plan will be prepared detailing any improvement actions required, including updating the IA Charter. Completion Date – 18 August 2025 1.2 Internal Audit Charter - The chief audit executive has a responsibility to prepare a charter that conforms with GIAS in the UK public sector. The Charter confirms the means by which leaders, managers and decision makers can have confidence that the governance arrangements that they have approved are being implemented, operating as intended, and remain fit for purpose Yes – IA Charter stipulates arrangements for periodic assessments of IA Internal Audit Charter N/A The Charter states management oversight arrangements in place for IA Yes – the Charter states the line management arrangements for IA. Internal Audit Charter N/A The Charter sets out the role of IA Yes – the scope of IA is listed Internal Audit Charter N/A Page 16 of 192
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Appendix 1 The Audit Committee must approved the Charter Yes – included in the Audit, Risk and Scrutiny Board’s Term of Reference ARSB Minutes N/A 1.3 Support for IA - Internal audit’s activities require access to and support from senior management, the audit committee and those charged with governance. Support allows internal audit to apply their mandate and charter in practice and meet expectations. Internal Audit is adequately supported by those charged with Governance Yes – in addition to regular management meetings with the Director of Finance and Resources, quarterly meetings also take place with the Council’s Chief Executive and Monitoring Officer to discuss IA’s work. Meetings also take place with all Service Senior Management Teams. The Chief Auditor can report directly if required to the Chief Executive, ARS Board members or the Council. IA has unrestricted access to all records and properties within the Council Internal Audit Charter, Meeting Agendas N/A Direct reporting line of the chief audit executive is not lower than a member of the senior management team and has access to all members of the team. Yes - Chief Auditor reports to the Director of Finance & Resources and has access the Chief Executive and all members of the Corporate Management Team. The internal audit plan is approved by the Audit, Risk and Scrutiny Board. The Chief Auditor also reports directly to the ARSB. Internal Audit Charter N/A Chief Auditor is a senior Officer Yes – Chief Auditor reports directly to the Director of Finance and Resources and is a member of the Finance and Resources Senior Management Team Internal Audit Charter N/A Audit Committee meets at least annually with the Chief Auditor without senior management present. Yes - this is included in the Guidelines for Operation of the Audit, Risk & Scrutiny Board. This meeting will take place when the Internal Audit Annual Report is submitted to ARSB. Guidelines for Operation of the Audit, Risk & Scrutiny Board. N/A 2 Positioning internal audit independently Page 17 of 192
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Appendix 1 2.1 Organisational independence- On behalf of those charged with governance, senior management needs to establish and safeguard internal audit’s independence Internal audit’s access to staff and records, as set out in regulations and the charter, operates freely and without any interference to its scope, performance of engagements or communication of results. Yes – Internal Audit is responsible for determining the scope of an audit and have access to Council staff and records Internal Audit Charter N/A Chief Audit Executive reports in own right on work of Internal Audit Yes – The Chief Auditor submits all Internal Audit Reports directly to the ARSB ARSB Papers N/A Where there are actual or potential impairments to the independence of internal audit, senior management should work with the chief audit executive to remove or minimise them or ensure safeguards are operating effectively. Yes – Conflict of Interest procedure in place within Internal Audit. N/A Recognise that if the chief audit executive has additional roles and responsibilities beyond internal auditing, appropriate safeguards must be put in place by senior management to protect the independence of internal audit and support conformance with professional standards. Yes – Chief Auditor is responsible for Risk Management and Counter Fraud Teams. However when internal audit reviews are being undertaken on these areas, they are carried out by an external contractor. Risk Management and Insurance Team is transferring to FAR Business Services during 2025/26 2024/25 External Review of Risk Management and FAR Board Papers – FAR Staffing Update – April 2025 N/A Matters around the appointment, removal, remuneration and performance evaluation of an in-house chief audit executive will be undertaken by senior management Yes – Director of Finance and Resources has responsibility to undertake these tasks in accordance with Council Policies Council Policies N/A The audit committee should provide feedback on the proposed job description and the performance evaluation of the chief audit executive should include feedback from the Yes - the Job Description for Chief Auditor’s post is currently being refreshed in light of the forthcoming management structure changes. The Chair of the ARSB and the Chief Executive are Performance Evaluation Form Chief Auditor’s Job Description to be Updated Completion Date - 30 June 2025 Page 18 of 192
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Appendix 1 chair of the audit committee. asked to provide feedback when the Chief Auditor’s performance is being evaluated 2.2 Qualifications of the chief audit executive - Ensuring effective leadership of the internal audit team requires a suitably qualified and experienced chief audit executive The Application Note: GIAS in the UK public sector sets out the qualifications and competencies expected of the chief audit executive. These must be taken into account by senior management when recruiting to the post. Yes - the Chief Auditor job description states that they must hold a relevant professional recognised qualification and have the necessary experience Chief Auditor’s Job Description N/A 3. Oversight of internal audit 3.1 Audit committee interaction - To ensure the effectiveness of internal audit, it should be overseen by the audit committee All audit committees should follow the CIPFA audit committee guidance for the oversight of internal audit. Yes - the ARSB has undertaken a self assessment against the CIPFA Audit Committee Guidance and all the actions have been implemented. Annual Self Assessments are now planned Council Report N/A Audit committees must agree its work plan with the chief audit executive to ensure there is appropriate coverage of internal audit matters within audit committee agendas. Yes - the Director of Finance and Resources, Monitoring Officer and Chief Auditor facilitated the ARSB, self assessment exercise and the Terms of Reference of the ARSB were updated as part of this exercise ARSB Terms of Reference N/A Audit committee must familiarise itself with the authority’s assurance framework and approach to governance, risk management and internal control arrangements to fulfil the wider terms of reference of the committee. This understanding will facilitate its interactions with internal audit. Yes - a report detailing how the Council complies with the Local Code of Corporate Governance and listing the evidence to support this code is submitted annually to the ARSB. A programme of training, including Governance is in place for ARSB Members. ARSB Reports and Training Programme N/A Senior management should update the audit committee on significant changes to governance, risk and control arrangements and any concerns they may have on assurance. The Yes - there is an annual report on the compliance with the Local Code of Corporate Governance . The unaudited annual governance statement is submitted to the ARSB. ARSB Reports N/A Page 19 of 192
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Appendix 1 audit committee should have oversight of the annual governance statement before final approval. The committee should also oversee the tracking and implementation of the actions agreed following audits. Yes - the Chief Auditor’s Annual Reports includes the implementation rates for recommendations followed up. All critical recommendations not implemented by their due date are reported to the ARSB separately IA Annual Report/Critical Recommendations Followed Up Report N/A Where internal audit consider the management of risk or proposed actions in response to audit engagements represent an unacceptable level of risk to the authority, the audit committee must review the matter Yes - this would be highlighted on the Committee Summary submitted to Board for the engagement undertaken. Internal Audit Committee Summaries N/A 3.2 Resources The audit committee and senior management must engage with the chief audit executive to review whether internal audit’s financial, human and technological resources are sufficient to meet internal audit’s mandate as set out in the regulations and achieve conformance with GIAS in the UK public sector. Yes - the level of resource required is detailed in the Internal Audit Plan and the Annual Report compares the actual resources to the planned resource and any issues highlighted. If resource issues resulted in a limitation of scope, this would be highlighted in the governance statement. ARSB Reports – Internal Audit Annual Plans and Annual Reports N/A The long-term viability of the internal audit function must be considered by Senior Management. Yes -This is considered by Senior Management and can be demonstrated by the recent project to examine a shared service proposal for Internal Audit ARSB Reports – Internal Audit Progress Reports N/A 3.3 Quality – Conformance against GIAS in the UK Public Sector The audit committee must review the results of the chief audit executive’s assessment of conformance against GIAS in the UK public sector, including any action plan. Partly - A self assessment exercise is currently being undertaken on conformance with these standards and will be reported upon to the ARSB on completion. ARSB Report Finalise the Self Assessment Exercise of compliance with GIAS in the UK public Sector and prepare action plan Page 20 of 192
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Appendix 1 Completion Date - 31 July 2025 The audit committee must review the chief audit executive’s annual report, including the annual conclusion on governance, risk management and control, and internal audit’s performance against its objectives. The committee should review in-year updates and make appropriate enquiries if there are concerns about internal audit performance. Chief Auditors annual report including an assurance statement is submitted to the ARSB. ARSB also receives quarterly reports of Internal Audits progress and performance ARSB Reports N/A To meet the requirements of the regulations (the mandate) for internal audit, the audit committee must satisfy itself on the effectiveness of internal audit. They should take into account conformance with the standards, interactions with the committee, performance and feedback from senior management. Their conclusions should be reported to those charged with governance, for example as part of the audit committee’s annual report. Partly - The Chair of the ARSB and potentially other members will be contacted by the External Assessor of Internal Audit to provide feedback on Internal Audit as part of the external review which is undertaken every 5 years. As well as receiving quarterly internal audit performance reports, the ARSB also receive reports on the outcomes of Internal Audit’s Self and External Assessments on whether they undertake their duties in compliance with the current internal audit standards. However the Board’s opinion on the effectiveness Internal Audit is not formally documented as part of the ARSB annual report ARSB reports The ARSB Annual Report should report on the effectiveness of Internal Audit as part of their Annual Report Completion Date - May 2026 3.4 External quality assessment Senior management must ensure that internal audit has an external quality assessment at least once every five years of its conformance against GIAS in the UK public sector, including this Code. Yes – the Scottish Local Authority Internal Audit Group have a process in place where the Chief Auditor of an Local Authority will undertake the external assessment. Renfrewshire Council’s external assessment was last undertaken by South Ayrshire Council in 2023. ARSB Report N/A Page 21 of 192
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Appendix 1 The audit committee must receive the complete results of the assessment and consider the chief audit executive’s action plan to address any recommendations. Progress should be monitored Yes – the external assessment report and action plan were reported to the ARSB ARSB Report N/A Page 22 of 192
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19 May 2025 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Summary of Internal Audit Reports for period 1 January to 25 April 2025 ___________________________________________________________________ 1. Summary 1.1 In line with the Public Sector Internal Audit Standards, Internal Audit must communicate the results of each engagement to the Board. To comply with this requirement, Internal Audit submits regular reports on the findings and conclusions of audit engagements to the Audit, Risk and Scrutiny Board. 1.2 Appendix 1 provides details of audit engagements completed during the period 1 January to 25 April 2025 with the overall assurance rating and the number of recommendations in each risk category. The committee summary for each report is also attached. For each audit assignment where recommendations have been made, the relevant managers have put action plans in place to address the issues raised. 1.3 In addition to the reports listed in the Appendix, Internal Audit has an ongoing commitment to: • A range of corporate and service initiatives; • Progressing of information security matters in partnership with ICT and Legal Services; • The regular provision of advice to departmental officers; • The provision of internal audit services to the associated bodies for which Renfrewshire Council is the lead authority and to OneRen and Renfrewshire Health and Social Care Integrated Joint Board; • Co-ordination of the Council’s corporate risk management activity; Item 3 Page 23 of 192
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• Management of the counter fraud team; • Management of the risk management and insurance team. ___________________________________________________________________ 2. Recommendations 2.1 Members are invited to consider and note the Summary of Internal Audit Reports finalised during the period from 1 January to 25 April 2025. ___________________________________________________________________ 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, Interim Chief Auditor– 07768354651 Page 24 of 192
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Appendix 1 Renfrewshire Council Internal Audit Service Update for Audit, Risk and Scrutiny Board Final Audit Reports issued from 1 January – 25 April 2025 Category Service Engagement Assurance Rating Recommendation Ratings Critical Important Good Practice Service Improvement Assurance Adult Services Eclipse Application Review Substantial 0 0 2 0 Chief Executives Greenspaces & Villages Investment Fund Grants Limited 1 4 0 0 Children’s Services Fostering Arrangements - Short Term & Permanency Planning Reasonable 0 1 1 0 Finance & Resources ERP Utilisation Reasonable 0 0 10 0 WTW Independent Risk Management Review Reasonable 0 3 7 1 Payroll Reasonable 0 3 1 1 Page 25 of 192
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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. Recommendation Rating Service Improvement Implementation will improve the efficiency / housekeeping of the area under review. Good Practice Implementation will contribute to the general effectiveness of control. Important Implementation will raise the level of assurance provided by the control system to acceptable levels. Critical Addresses a significant risk, impacting on the objectives of the area under review. Page 26 of 192
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Internal Audit Report Adult Services Eclipse Application Review (A0074/2025/001) Date: March 2025 EXECUTIVE SUMMARY Audit Objectives The objectives of the audit are to ascertain that:- • Appropriate guidance is in place regarding user access controls for administrators. • Administrator access is kept to a minimum. • Password controls are adequate and are in line with best practice. • User access profiles have been created and are suitable for predefined user roles. • User access is approved and reasons provided for any deviations from the standard profile access are recorded. • Evidence is available that users are aware of their responsibilities in relation to data access and protection. • There are adequate audit trails in operation which record user access. • Processes are in place to ensure that users are removed when access is no longer required. Audit Scope 1. Interviewed the relevant officers and ascertained the procedures in place relating to user access controls for the Eclipse Case Management System. 2. Prepared a series of tests to meet the detailed audit objectives. Key Audit Assurances 1. Appropriate guidance is in place from the system provider regarding user access controls for administrators. 2. Administrator access is kept to a minimum and restricted to members of the Quality and Assurance team. 3. Password controls are adequate and are in line with best practice e.g. single sign on (SSO) for council network users and separate password controls for non-network users. 4. User access profiles have been created and are suitable for predefined user roles e.g. for job roles in particular services or departments. 5. User access approval processes were satisfactory. 6. There are adequate audit trails in operation which record user access i.e. the information that users have accessed and also who has accessed specific client records. Key Risks No key risks were identified during this audit. Overall Audit Opinion The audit has identified that there is appropriate guidance for user administrators and that administrator access is restricted to Quality and Assurance team members. In addition it was found that password controls are adequate and user access permitted was suitable for job roles. There were also adequate audit trails of user access. We have made recommendations to enhance completeness of training records and strengthen controls regarding user accounts that have not been logged into recently. Page 27 of 192
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Internal Audit Report Adult Services Eclipse Application Review (A0074/2025/001) Date: March 2025 Management Commentary We welcome the internal audit findings and are pleased that no key risks have been identified with the Eclipse Case Management System. It’s reassuring to see the audit confirmed that administrator access is tightly controlled, password security is robust, and user access profiles are appropriate for each role. Working with corporate colleagues, we are already acting on the recommendations to improve oversight of training record completeness and tightening controls on accounts that haven’t been used recently. We are absolutely committed to ensuring that our governance and information security is as tight as it possibly can be and that personal and sensitive data is rigorously managed and properly controlled. Page 28 of 192
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Internal Audit Report Adult Services Eclipse Application Review (A0074/2025/001) Date: March 2025 Page 29 of 192
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Internal Audit Report Chief Executives Greenspaces & Villages Investment Fund Grants (A0060/2025/001) Date: February 2025 COMMITTEE SUMMARY Audit Objectives Following the change of responsibility of the fund from Communities & Housing across to Chief Executives Service in 2023, a review of the processes now in place within Chief Executives was requested to ensure they were satisfactory. The objectives of the audit were to ensure that: 1. There are appropriate criteria for determining eligibility for grant assistance 2. Applications are appropriately completed by the claimant, include relevant supporting evidence and are signed 3. Grant applications are approved by an authorised officer 4. Conditions of grant are clear and there is evidence of acceptance 5. Payments are only made on receipt of appropriate evidence of the expenditure incurred 6. Arrangements are in place to monitor that grant conditions are complied with and any clawback arrangements are instigated when required. Audit Scope 1. Interviewed the appropriate officers and ascertained the processes in place for the administration of Community Grants for Greenspaces Funding and the Villages Investment Fund. 2. Prepared a series of tests to ensure that the processes in place for the administration of Community Grants for Greenspaces Funding and the Villages Investment Fund were operating effectively and as described. Key Audit Assurances 1. For Greenspaces Funding and the Villages Investment Fund there is appropriate criteria for determining eligibility for grant assistance in order to meet the funds objectives. 2. For the sample of grant applications tested, these were all approved by an authorised officer or at Board depending on the grant value. 3. For the sample of grant applications tested, conditions of grant were clear and there was evidence of acceptance by grant applicants, where appropriate. Key Risks 1. Where reconciliations are not carried out between the budget and spend in the ledger and the independent calculations carried out by the grant administrator, there is the possibility of unplanned overspends. 2. Eligibility for those grants cannot be demonstrated if there is no evidence that all of the required supporting documentation has been provided for some grant applicants,. 3. If, there is no evidence that grant works are being checked after the grant payment, there is a risk that grant funds may not be appropriately spent. Overall Audit Opinion Page 30 of 192
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Internal Audit Report Chief Executives Greenspaces & Villages Investment Fund Grants (A0060/2025/001) Date: February 2025 The audit identified that there are appropriate criteria for determining eligibility for grant assistance for Greenspaces Funding and the Villages Investment Fund. All applications are approved by an authorised officer or Board after acceptance of grant conditions by the applicants. Grant payments are made before expenditure is incurred. There was a lack of appropriate budget monitoring resulting in delays in identifying overspends. In regard to the supporting documentation provided by grant applicants this was not always held in a single location and on some occasions part of this documentation could not be located. We have made recommendations to improve controls in relation to budget monitoring, record keeping and retaining evidence of checks carried out by council staff after grants are paid. Management Commentary The Policy and Partnerships service is implementing all recommendations relevant to the service, including working with Finance to implement recommendations relating to budget reconciliations and financial monitoring. The guidance for the Villages Investment Fund was reviewed as part of a scheduled process in December 2024 and January 2025, and approved by Leadership Board in February 2025. Going forward, all processes in relation to these grants will align to existing processes in relation to existing funding streams such as the Sustainable Communities Fund / Local Partnerships etc. This includes checklists, record keeping, filing, and grants monitoring processes. Page 31 of 192
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Internal Audit Report Childrens Services Fostering Arrangements - Short Term & Permanency Planning (A0098/2025/001) Date: March 2025 COMMITTEE SUMMARY Audit Objectives The objectives of the review were to ensure that: • There is appropriate tracking of the completion of core training for foster carers; Children and young people have timely moves to permanent care and this is monitored robustly and continuously; • The fostering service advocates on behalf of children, young people and carers, through attendance at reviews and evaluation of plans, to progress plans within timeframes. These objectives were agreed with Children’s Services management to assess progress in implementing areas for improvement set out in the Care Inspectorate Inspection of Renfrewshire’s Fostering Service March 2023 report. Audit Scope Following discussions with the appropriate officers to ascertain the processes in place, prepared a series of tests to meet the above objectives. Key Audit Assurances 1. For the sample of foster children records tested, children and young people were continuously monitored through regularly held looked after reviews where the priority was always to move the child towards permanent care in as timely a fashion as possible. Where these reviews took longer than expected a Children’s Services officer was able to demonstrate that this was a result of other monitoring/interventions that caused the next review to be delayed. 2. For the sample of foster children tested, their reviews had adequate attendance by council staff at review meetings and an in-depth evaluation of their plan to ensure they achieved permanency and so demonstrated advocacy. Each evaluation tested included an appraisal of the current placement, a discussion of the foster child’s health, a detailed update from Social Work and any external agencies present and also a dialogue regarding the path to permanent care for the child. Key Risks Where reasons for foster carers not being up to date on their training are not recorded, it cannot be demonstrated that tracking of the completion of core training is adequate. Page 32 of 192
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Internal Audit Report Childrens Services Fostering Arrangements - Short Term & Permanency Planning (A0098/2025/001) Date: March 2025 Overall Audit Opinion The Care Inspectorate Inspection of Renfrewshire’s Fostering Service March 2023 report stated that tracking of the completion of core training needs to be further developed; tracking of permanency needs to be improved to ensure consistency of experience and outcomes for all children and young people; and the role of staff in advocating on behalf of carers and young people, through attendance at reviews, and the evaluation of plans could be improved. The audit identified that foster children’s reviews and other monitoring interventions are held regularly and include an in-depth evaluation of their care plan and so demonstrate advocacy. However, audit testing identified some carers who had not completed their required core training. Whilst there can be valid reasons for this, no reasons were recorded. Therefore, Children’s Services staff should further develop systems to demonstrate that tracking of completion of foster carers core training is adequate. We have made recommendations to address this issue. Management Commentary Management are currently devising processes to ensure Foster Carers core training needs are identified, recorded and monitored. Remedial plans will also be put in place for any training which is outstanding. Page 33 of 192
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Internal Audit Report Finance & Resources ERP Utilisation (A074 2024 001) April 2025 COMMITTEE SUMMARY Audit Objectives The objectives of the audit were to ensure that:- 1. For, those self-service modules that have been rolled out to all services, the required functionality is being utilised, with no manual work arounds or duplicate processes. 2. Where there are any manual work arounds or duplicate processes in operation, explanations were sought and considered in terms of validity. The processes were reviewed in areas within the following services :- a) Renfrewshire Health & Social Care Partnership b) Environment, Housing & Infrastructure c) Childrens’ Services 3. There is adequate visibility of the extent of utilisation of the ERP system at both a service and corporate level. 4. For those modules that have been purchased, but yet to be rolled out, ascertain the future work plans for roll out and consider the adequacy of those plans. Audit Scope 1. Interviewed appropriate officers to understand the arrangements in place for ERP utilisation and the reasons for any additional manual processes in place. 2. The current modules discussed with officers were planned leave (annual leave), unplanned leave (sick leave) and overtime/expenses. 3. Discussed with the relevant officers the progress of modules not yet rolled out - Learning Management and Purchase to Pay. Key Audit Assurances 1. The ERP team have provided Business World training for planned leave, unplanned leave, overtime and expenses to the majority of service departments. 2. At the time of the review, a project had been established to ensure all unplanned absences were being recorded on Business World by Service Managers. A Project Manager has met the relevant service supervisors/ managers as part of a project to have all service managers recording unplanned absences on Business World, with outstanding issues remaining in a small number of service departments. 3. At the time of the audit, work plans for ERP modules for Learning Management and Purchase to Pay had not yet been rolled out but were progressing. Page 34 of 192
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Internal Audit Report Finance & Resources ERP Utilisation (A074 2024 001) April 2025 4. At the time of the review, the ERP Senior Responsible Officer reports monthly to Finance & Resources senior management (including corporate People and OD management) as to progress in deploying overtime and expenses, planned leave and unplanned leave, in Business World. Key Audit Risks 1. Where service departments are not fully utilising Business World, especially for unplanned leave (sickness absence), they are using manual workarounds and duplicate processes which are mainly reliant on spreadsheets that are not suitable for the volume of data required and may result in inaccurate absence data. 2. Where service departments are using Supporting Attendance teams and proxy users, they are not fully using the self-service functions of Business World and may not be maximising savings in terms of time and cost. Overall Audit Opinion There has been a gradual increase in service departments using Business World to record overtime and expenses, planned leave and unplanned leave including Return to Work interviews and Formal meetings on Business World. The Project Manager, for the project to improve self-service for unplanned leave, has met with relevant service supervisors/ managers during 2024 and reported improvements. Although the ERP System is a Corporate Resource, and in our opinion, a system which all services are responsible for embedding into their operations, our review indicated that this view was not always concurred with within parts of services. We have therefore recommended that People and OD Management, as owners of the Managing Absence Policy, should continue to liaise with the Project Team, ERP team as well as services management to decide if the current processes in place as an alternative to self-serving in Business World (proxy users) for unplanned leave are the best work around options to enable the tasks to be undertaken. It is recognised that the additional work as a result of the Business World projects will require resources from People and OD and therefore will have to prioritised and built into their staff workplans. Management Commentary Discussions are being arranged by People and OD service with appropriate officers including ERP management and relevant service Managers to plan how to progress the internal audit recommendations. We plan to have the recommendations actioned by 30 September 2025. Page 35 of 192
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Internal Audit Report Finance & Resources WTW Independent Risk Management Review (B0015/2025/001) Date: February 2025 COMMITTEE SUMMARY Audit Objectives As Corporate Risk Management is part of the Internal Audit Service, in order to gain assurance over the Council’s arrangements in place, it was agreed that a review would be undertaken by an external contractor to ensure that:- 1. An appropriate corporate risk management framework is in operation and is satisfactory 2. There is evidence to support that the corporate risk management arrangements are being complied with in practice across service areas 3. The BAU (business as usual) Risk Assurance Model is operating as intended. This engagement was undertaken by Willis Towers Watson (WTW), Risk Management Specialists. Audit Scope 1. To meet the objectives requested by Renfrewshire Council, WTW primarily utilised their Enterprise Risk Management (ERM) maturity model. This model considers eight ERM attributes and scores these according to five levels of maturity. WTW determined which maturity level is appropriate for each category based on the information provided and analysed during this review. 2. Prior to commencing fieldwork, WTW conducted a gap analysis between Renfrewshire Council’s requested scope and their ERM maturity model. 3. Where the model did not sufficiently cover elements of requested scope, additional analysis was conducted. Key Audit Assurances 1. Renfrewshire Council has established strong governance of risks across leadership and management. As well as a committee with overall accountability (Audit, Risk and Scrutiny), operational governance appears to be working effectively. This is partially due to an engaged community of risk representatives and subject-matter experts who take part in efficient, targeted and timely meetings on risk matters. This community has clearly defined roles and responsibilities and recognise the value and importance of their risk related activities. 2. The positive governance and cultural environment is driven by the Risk Manager, who has established innovative processes (in particular the BAU Risk Assurance Model or “BaURAM”), designed engaging training materials and is evidently committed to the continuous improvement of risk management at Renfrewshire Council. 3. Renfrewshire Council’s approach to risk analysis and evaluation is established and shows strength in certain areas. A particular strength in this area is the risk deep dive process utilised to analyse a particular risk in depth. 4. The risk information captured, analysed and evaluated is being used to drive the selection of risk responses in a relatively structured way 5. Although Renfrewshire Council does not have a software-based risk reporting system, the overall quality of reporting and monitoring is well established with regular reports being submitted to Senior Managers and Members. 6. The training documentation available for managing risks within projects is adequate. Page 36 of 192
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Internal Audit Report Finance & Resources WTW Independent Risk Management Review (B0015/2025/001) Date: February 2025 7. The BaURAM is an innovative and powerful approach which operates effectively and is subject to appropriate scrutiny and has the dual benefit of providing: 1. the organisation with a clear record, signed by the responsible individual, of how they get assurance over their risks or how they plan to develop that assurance. 2. protection to the responsible individual, who can evidence they have considered their risk(s) and implemented appropriate assurance. Risk Maturity Diagram WTW’s opinion is that a score of 4.0 overall would, in general, be the maximum realistic level we would expect to see for an organisation in Renfrewshire Council’s sector except in exceptional circumstances. Key Leading – Governance and Culture Established -Risk Reporting, Risk Response, Risk Analysis and Strategy Developing - Ongoing Control Environment and Risk Identification Page 37 of 192
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Internal Audit Report Finance & Resources WTW Independent Risk Management Review (B0015/2025/001) Date: February 2025 Key Risks / Development Opportunities 1. Risk Management Resource - If Renfrewshire Council wants to pursue enhanced Enterprise Risk Management maturity and further develop Risk Management operations the current level of resource allocated to risk management, in terms of staffing and electronic system is likely to place limitations on this work – the Risk Manager already has a wide range of responsibilities and Service Risk Representatives unanimously reported not having the time they would like to focus on risk duties. 2. Building the link between council/business strategy (the council plan) and risk. - A link between strategy and risk is established, especially at the “Strategic” and “Corporate” risk levels. The cultural attitude to risk management places appropriate focus on the need to take sufficient, appropriate, well-controlled risks – those which are “within appetite” – to achieve strategic objectives. This link could be stronger, however, and an option for Renfrewshire Council to continue to enhance ERM maturity is to develop the application and definition of risk appetite. In addition, more clearly aligning the analysis of risk impacts to strategy could further enhance this link. 3. Ensuring the capture and on-going control of risks - Whilst there is a toolkit of resources for individuals to use when identifying and analysing risks, the identification and capture of these risks into the risk management process is relatively informal. The process places a great deal of reliance on the Service Risk Representatives. Whilst highly engaged, those that we spoke to as part of this review unanimously reported wishing they had additional time to focus on their risk responsibilities alongside their primary roles. Should these individuals have insufficient capacity, or simply forget to pass on a risk that has been raised to them by a member of the service they represent, there is the potential for such risks to fail to enter the risk management process entirely. 4. On-going control of risks - Whilst some control information is captured (for example, the controls articulated against strategic and corporate risks in the Board report) there is limited observable information regarding the quality, effectiveness, frequency, importance etc. of the control(s). Whilst the delivery of Internal Audit reviews considering controls (amongst other elements) provides an additional layer of assurance for leadership in this respect, there is an opportunity to enhance the maturity of the risk management process itself by increasing consideration, capture and scrutiny of control measures. Overall Audit Opinion Renfrewshire Council has a well-established approach to risk management with many positive features, especially in terms of strong governance and a positive cultural attitude towards risk management at a corporate level. The overall risk maturity score was identified as 3.2, as shown in the Risk Maturity Diagram above. It should be noted that WTW’s opinion is that a score of 4.0 overall would, in general, be the maximum realistic level we would expect to see for an organisation in Renfrewshire Council’s sector except in exceptional circumstances. The BAURAM (Business-as-usual risk assurance model © Renfrewshire Council) is an innovative and powerful approach which was been designed well and, like many other elements of Page 38 of 192
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Internal Audit Report Finance & Resources WTW Independent Risk Management Review (B0015/2025/001) Date: February 2025 Renfrewshire Council’s risk approach, is evidently subject to continuous improvement. To continue to grow risk management maturity, some opportunities were identified for further development and Renfrewshire Council may wish to focus on ensuring sufficient resources – both in terms of personnel and systems - are available to ensure risks are identified promptly, recorded consistently and therefore managed appropriately. Management Commentary The Finance, Resources and Customer Services Policy Board approved a report in April 2025 to increase the Risk Management resource and this will be implemented as soon as possible. All other areas for further development have been included in the Strategic Risk Management Development Plan and will be implemented. Page 39 of 192
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Internal Audit Report Finance & Resources Payroll (A0084/2025/001) Date: April 2025 EXECUTIVE SUMMARY Audit Objectives The objectives of the review are to ensure that: 1. Documented procedures are in place for processing payroll. 2. Required checks are undertaken and evidenced, prior to the payroll being completed. 3. BACS payments are only released on proper authorisation. 4. Appropriate exception reports are obtained and reviewed to check for anomalies and action taken to investigate and correct if necessary. 5. Control accounts are reconciled and payments are processed to third parties timeously. 6. BACS rejects are investigated and subsequently corrected. Audit Scope 1. Interviewed the relevant officers and obtained the required information and documentation relating to payroll processing. 2. Prepared and carried out a series of tests on appropriate sample groups to meet the detailed audit objectives. Key Audit Assurances 1. Payroll Processing procedures set out step by step instructions for Payroll team members to follow when processing payroll. 2. For the sample of pay runs tested, there was evidence of checks undertaken e.g. tax refunds, pension overrides for each pay run as the checklist had been completed. 3. Payments to third parties tested were processed correctly and timeously. Key Risks 1. Where Payroll checklists and BACS transmission forms are completed by only one person for some pay runs, there is no evidence that a second person has checked that all tasks on the checklists have been satisfactorily completed or that the total BACS payments are correct. 2. Where control accounts are not reconciled timeously there is a risk that items are not coded correctly in the ledger and/or within the correct financial year. Overall Audit Opinion Payroll Run Processing procedures set out each stage of payroll process to be carried out by Payroll team members. However, we identified a lack of evidence of some payroll checks and incomplete control account reconciliations which require management action. Page 40 of 192
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Internal Audit Report Finance & Resources Payroll (A0084/2025/001) Date: April 2025 Management Commentary We are in the process of actioning the internal audit recommendations. Email reminders will be sent to the appropriate staff to ensure adequate segregation of duties is maintained when undertaking payroll checks and that sufficient evidence is retained of task/checks undertaken and by whom. With regards to Control Accounts we will endeavour to process these timeously. Page 41 of 192
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Internal Audit Report Finance & Resources Payroll (A0084/2025/001) Date: April 2025 Page 42 of 192
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19 May 2025 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Internal Audit Annual Report 2024 - 2025 ___________________________________________________________________ 1. Summary 1.1 The Public Sector Internal Audit 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. 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 2024-25 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. ___________________________________________________________________ Item 4 Page 43 of 192
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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, Interim Chief Auditor Page 44 of 192
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Annual Report 2024-2025 Renfrewshire Council Internal Audit May 2025 Page 45 of 192
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Renfrewshire Council Internal Audit Annual Report 2024/2025 Contents Page 1. Introduction 1 2. Responsibilities of Management and Internal Audit 2 3. Internal Audit Activity in 2024/25 2 4. Summary of Internal Audit Work 4 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 8 10. Audit Assurance Statement 10 Appendix 1 – Summary of Assurances Page 46 of 192
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1 Renfrewshire Council Internal Audit Annual Report 1 April 2024 – 31 March 2025 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 Public Sector Internal Audit Standards (PSIAS) for 2024/25. 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 Page 47 of 192
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2 • Renfrewshire Valuation Joint Board • Scotland Excel • Renfrewshire Health and Social Care Partnership – Integration Joint Board 1.8 The outcome of the audit assignments undertaken for these organisations is reported separately as part of their annual report which also contains an assurance statement to their Boards. 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 2024/2025 3.1 The internal audit plan for 2024/2025 was approved by the Audit, Risk and Scrutiny Board on 18 March 2024. 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 reduction in resource due to the retiral of the Chief Auditor on 30 June 2024 was partly taken into account when the audit plan was being finalised. We also experienced a further reduction in resource due to unplanned absence. Although, amendments were made to the 2024/25 plan there has been a slight delay in the completion of some audit assignments due to this resource issue and also the level of investigative/contingency work which has been undertaken. 3.3 All planned assignments as detailed in the 2024/2025 audit plan have been undertaken or commenced and those assignments not finalised by 31 March 2025 have been prioritised in the first quarter of the current year. Page 48 of 192
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3 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) Financial Challenges Our organisation 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 2024/25 audit plan included time for reviewing: • financial planning (nearing completion); • non-domestic rates ; and • payroll. (2) Learning from Dargavel The Council has been subject to criticism regarding errors made during planning and delivery of Dargavel Primary School. As a result, there has been significant scrutiny of our arrangements arising from the independent review (Bowles Report), from our external auditors and from the Accounts Commission under s102 (1) of the Local Government (Scotland) Act 1973. The Council has developed an action plan to address the recommendations made which was subject to regular reporting to the Audit, Risk and Scrutiny Board. The 2024/25 audit plan included time for reviewing: • governance of the learning estate development programme (ongoing); • project and programme management (ongoing); and • risk management As the Risk Manager reports to the Chief Auditor, to ensure the Chief Auditor’s independence was not impaired, the review of the Council’s Risk Management processes was undertaken by an External Consultancy firm. (3) 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 supporting people on low incomes to maximise income and seek advice with income and debt management. The 2024/25 audit plan included time for reviewing: • council tax reduction; and • community grants Page 49 of 192
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4 (4) Public Protection Public protection is a wide-ranging agenda relating to the protection of vulnerable people, communities, businesses and organisations. The 2024/25 audit plan included time for reviewing: • child protection (nearing completion); • housing adaptations (Ongoing); • fostering and adoption; and • Eclipse system. 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 will be given to audit engagements which impact on the council’s strategic and corporate risks. 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 Corporate Counter Fraud service. All referrals were evaluated and investigated as appropriate. 3.7 During 2024/25, Internal Audit conducted a number of investigations mainly in relation to employee conduct and 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 has been working on a hybrid basis. The team also provided advice and support where necessary to council services. 4.2 Appendix 1 details the assurances arising from the internal audit work carried out in line with the 2024/25 audit plan and from those 2023/24 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. 5. Internal Audit Resources 5.1 For the year to 31 March 2025, the audit plan was based on 856 operational days. However, the actual staffing complement was slightly reduced due to the retiral of the Chief Auditor and higher than anticipated unplanned absence in both Internal Audit and Counter Fraud. Page 50 of 192
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5 5.2 The internal audit team will ensure that independence and objectivity are maintained in line with the PSIAS including where non-audit work is undertaken. Internal auditors will have no operational responsibilities. There have been no impairments impacting on the Interim Chief Auditor’s independence and the team has been sufficiently resourced during the year to undertake operational work. 5.3 Since the retiral of the Chief Auditor, the Asst Chief Auditor has been covering this post on an interim basis. Given that it was recognised that there may be resilience issues regarding internal audit and counter fraud staff in the future, discussions were undertaken with the Chief Financial Officers of two neighbouring councils which resulted in a considerable piece of work being undertaken during the year to explore a potential shared delivery model. It should be noted that the delivery of financial savings was not an objective of this exercise, and Renfrewshire Council’s Chief Financial Officer was committed to maintaining the current level of resource. 5.4 This work has been completed and it was concluded that it would not represent value for money to progress with the shared service proposal at this point due to the complexities of servicing a number of public bodies (Councils, Partners and Associated Bodies) under a single operational management structure with different systems, processes and working practices in place. This decision was agreed by members of the Finance, Resources and Customer Services Policy Board on 3 April 2025. The exercise has however been useful in reaching a shared understanding of the challenges each audit team faces; and there is the potential for a more informal resource sharing arrangement being put in place. 5.5 Further service changes were also approved in the Finance, Resources and Customer Services Policy Board with regard to Risk Management. The responsibility for the management of the corporate risk function is transferring to come under the wider business services management arrangements with the Chief Auditor role being focussed on delivery of internal audit and fraud services for the Council and associated bodies. The two functions would however continue to work closely together through their governance and reporting arrangements to the Audit, Risk and Scrutiny Board. 5.6 The revised operating and management arrangements outlined above in the coming months, including formal job evaluation of new or revised roles will take place in the coming months. This will allow the Council to then progress to recruit a Chief Auditor on a permanent basis. 6. Review of Internal Audit Activity 6.1 The Audit Plan for 2024/25 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. Page 51 of 192
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6 Table 1 Type of Audit Planned Days Actual Days Variance Days % Governance 51 45 (6) 12% Assurance 374 320 (54) 14% Contingency 293 295 2 1% Audit Planning & Reporting 138 140 2 1% Total Operational Days 856 800 (56) 7% Training 56 41 (15) 26% Strategic Management 16 16 (0) 0% Team Administration 89 88 (1) 1% Development 69 43 (26) 37% Total Non-operational Days 230 188 (42) 18% Gross Available Days 1086 988 Operational % 79% 81% Non-Audit – Including Management of Risk Management and Insurance and Corporate Counter Fraud including the co-ordination of NFI 71 74 3 4% 6.2 Material differences (over 20% and over 20 days) from the plan are explained below: 1) Assurance Due to unplanned absence and the amount of time spent on investigative work, completion of some of the assurance work has been delayed and consequently a number of the budgeted days have been deferred into 2025/26. 2) Training As a result of the unplanned absences, some of the Counter Fraud work, including coordination of the National Fraud Initiative data collection exercise had to be transferred to a member of Internal Audit Staff. In addition to this, the Internal Audit staff’s main priority was to focus on operational work and therefore the training budget was under utilised for this year. 3) Development Development time was planned to look at alternative system options and also to encompass the new Global Internal Audit Standards into our working Page 52 of 192
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7 practices. In 2023/24, our Audit Management System supplier informed us they were unlikely to continue to support this system but this decision has since been withdrawn. In addition CIPFA, (Public Sector Accounting Body) have stated that it is acceptable to amend working practices to ensure compliance with the Global Internal Standards during 2025/26. Therefore, as a result of the reasons detailed above this work has been delayed but is a priority for 2025/26. 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. Table 2 Internal Audit Performance 2024/25 Performance measure Target 2024/25 Actual 2024/25 % completion of audit plan for the year* 90% 93.6% % engagements completed by target date 95% 96.7% % engagements completed within time budget 95% 98.4% * 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 is ahead of the target set for the year. In addition, the actual performance for the year for the two other indicators, is above the target performance level. 7.3 The PSIAS 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 both periodic internal self- assessments and five-yearly external assessments, carried out by a qualified, independent assessor from outwith the organisation. 7.4 We continued to participate in the Scottish Local Authorities Chief Internal Auditors’ Group peer review process. Our most recent external assessment was reported to the Audit, Risk and Scrutiny Board in May 2023 and included 7 recommendations for improvement, all recommendations have now been completed. The annual internal self-assessment process has concluded that the internal audit service fully complies with the PSIAS during 2024/25. 7.5 We have commenced a self assessment exercise against the new Global Internal Audit Standards. Any actions identified will be implemented to ensure compliance. Page 53 of 192
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8 8. Implementation of Audit Recommendations 8.1 During 2024/25, 106 recommendations were followed up, with 76% of all recommendations being completed. The implementation status of the recommendations across each service area is detailed in Table 3 below. Table 3 Implementation of Audit Recommendations 2024/25 Service No. Followed up Complete Partially Complete (new date) Not Implemented (new date) Redundant Adult Services 1 1 (100%) 0 0 0 Chief Executive’s 14 12 (86%) 1 (7%) 1 (7%) 0 Children’s Services 8 3 (38%) 0 2 (25%) 3 (38%) Environment, Housing & Infrastructure 21 14(67%) 4 (19%) 3 (14%) 0 Finance & Resources 62 51 (82%) 8 (13%) 2 (3%) 1 (2%) Total 106 81 (76%) 13 (12%) 8 (8%) 4 (4%) 9. Performance of Non-Audit Activities 9.1 Risk Management The responsibility for co-ordinating risk management and insurance activity across the council was with internal audit during 2024/25. 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; during the period 2024/2025, the team has worked on a hybrid basis. 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 matter arising. Where appropriate, customers are contacted by telephone or e-mail. This process is convenient for customers and staff alike and enables investigations Page 54 of 192
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9 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 has been developed and is available to staff on iLearn and is promoted across the Council. Table 4 Corporate Counter Fraud Performance 2024/25 Financial Outcomes 2024/25 (£) Cash savings directly attributable to preventative counter fraud intervention (e.g business grants) 2,719 Cash recoveries in progress directly attributable to counter fraud investigations 83,037 Notional savings identified through counter fraud investigation, (e.g. housing tenancy and future council tax) 474,955 Housing Benefit Savings identified through other counter fraud work or through joint working with the DWP 68,002 Other DWP Benefit or Tax Credit Savings Savings identified through other counter fraud work or through joint working with the DWP 63,385 Non-Financial Outcomes 2024/25 Housing properties recovered 5 Housing applications amended/cancelled 8 Housing Allocation Priority Changed 1 Blue badge misuse warning letters issued 32 Blue Badges Cancelled 5 Supplier/Contractor Checks Undertaken 226 9.3 The National Fraud Initiative Page 55 of 192
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10 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 and investigation of those matches is ongoing. The final outcomes arising from the exercise will be subject to a separate report to the Audit, Risk and Scrutiny Board during 2025/26. 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 7 referrals were received and 6 were referred directly to the responsible service to review as they were management issues. The remaining referral was investigated by Internal Audit and the findings will be reported to the Audit, Risk and Scrutiny Board Members on completion of any disciplinary process which may be instigated. 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. 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 substantially reviewed during the year, including fully implementing the comprehensive assessment of the Audit, Risk and Scrutiny Board arrangements against the CIPFA practical guidance for Audit Committees which has made a positive impact on scrutiny arrangements. In addition the recommendation arising from the Council’s Page 56 of 192
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11 comprehensive review of its governance arrangements by the member led cross party working group, which were reported to and approved by the Council on 29 February 2024 have been actioned. 10.6 Following the successful roll out of the bespoke Leadership Development Programme to the Chief Officers group, this was extended to the 3rd tier level and this has now been completed. This includes a governance module. 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 2024/25 outturn compares favourably with 2023/24, with all modules showing an improved position 10.8 The programme of work undertaken by internal audit in 2024/2025 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 which is an improved position from last year. 76% of all internal audit recommendations followed up during the year have been implemented by the due date. 10.9 Therefore, 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 as evidenced by: (i) the results of the planned audit work in 2024/25; (ii) the results of investigative work in 2024/25; (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 Interim Chief Auditor Date 19 May 2025 Page 57 of 192
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Appendix 1 1 Audit Engagement Risk Area Assurance Level Conclusion Non-domestic Rates Assurance Reasonable • The audit identified that satisfactory controls are in place for the billing and collection of NDR. Reviews of NDR reliefs, granted on the basis of a prior year's applications, have not been carried during 2023/24 because management needed to consider the impact of changes in legislation, specifically related to reliefs, which superseded the normal review process. Evidence for current year reliefs and refunds were available for the samples tested. However, some actions that management stated would be put in place after previous audit recommendations are not fully implemented. It was noted that staff changes have resulted in income and refund reconciliations not being carried out regularly. Also, a significant number of historic credit balances were found to still exist on the NDR system, for which no actions had been taken to identify if these should be cleared or result in refunds to customers. Corporate Governance Framework Governance Substantial • Based a sample check of the evidence used to demonstrate compliance, it was confirmed that the Council complies with the requirements of the Local Code of Corporate Governance. In addition, it was evident that the Local Code has been subject to review and updating in line with developments in best practice and any revised Council Policies. Corporate Risk Management Assurance Reasonable • Renfrewshire Council has a well-established approach to risk management with many positive features, especially in terms of strong governance and a positive cultural attitude towards risk management at a corporate level. The overall risk maturity score was identified as 3.2 against a score of 4 which in the external consultant’s opinion would, in general, be the maximum realistic level we would expect to see for an Page 58 of 192
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Appendix 1 2 organisation in the Council’s sector except in exceptional circumstances. The BAURAM (Business- as-usual risk assurance model © Renfrewshire Council) is an innovative and powerful approach which was been designed well and, like many other elements of Renfrewshire Council’s risk approach, is evidently subject to continuous improvement. To continue to grow risk management maturity, some opportunities were identified for further development and Renfrewshire Council may wish to focus on ensuring sufficient resources – both in terms of personnel and systems - are available to ensure risks are identified promptly, recorded consistently and therefore managed appropriately. Housing Assurance Statement Assurance Substantial Assurance • Based on a sample check of the evidence used to demonstrate compliance, we confirmed that the Council complies with the requirements of the Housing Assurance Statement. Payroll Assurance Reasonable • Payroll Run Processing procedures set out each stage of payroll process to be carried out by Payroll team members. However, we identified a lack of evidence of some payroll checks and incomplete control account reconciliations which required management action. Fostering Arrangements - Short term and Permanency planning Assurance Reasonable • The aim of this review was to assess progress in implementing areas for improvement set out in the Care Inspectorate Inspection of Renfrewshire’s Fostering Service March 2023 report. The audit identified that foster children’s reviews and other monitoring interventions are held regularly and include an in-depth evaluation of their care plan and so demonstrate advocacy. However, audit testing identified some carers who had not completed their required core training. Whilst there can be valid reasons for this, no reasons were recorded. Therefore, Children’s Services staff should further develop systems to demonstrate that Page 59 of 192
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Appendix 1 3 tracking of completion of foster carers core training is adequate. Adult Services - Eclipse Application Review Assurance Substantial • The audit has identified that there is appropriate guidance for user administrators, administrator access is restricted to Quality and Assurance team members, password controls are adequate, user access is suitable for job roles and there are adequate audit trails of user access. We made recommendations to enhance completeness of training records and strengthen controls regarding user accounts that have not been logged into recently. Council Tax Reductions Assurance Substantial • The audit has identified that satisfactory arrangements are in place for administering the Council Tax Reduction (CTR) scheme. For the sample of Council Tax Reduction applications tested, reductions were only applied to eligible individuals and there was evidence of appropriate checks on each application by a Benefits Assessor. However, management action is required as cyclical reviews of Council Tax Reduction only cases are not undertaken to ensure the amount of CTR remains valid. Greenspaces & Villages Investment Fund Grants Assurance Limited • The audit identified that there are appropriate criteria for determining eligibility for grant assistance for Greenspaces Funding and the Villages Investment Fund. All applications are approved by an authorised officer or Board after acceptance of grant conditions by the applicants. Grant payments are made before expenditure is incurred. There was a lack of appropriate budget monitoring resulting in delays in identifying overspends. In regard to the supporting documentation provided by grant applicants the supporting documentation was not always held in a single location and on some occasions part of this documentation could not be located. Page 60 of 192
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Appendix 1 4 Management of Allergens in Schools Assurance Limited • Although there are procedures and guidelines available regarding food allergies and food safety, improvements could be made regarding implementation of these. Furthermore, the uptake of training relating to food allergies and food safety is unsatisfactory among employees who undertake catering roles. ERP Utilisation Assurance Reasonable • There has been a gradual increase in service departments using Business World to record overtime and expenses, planned leave and unplanned leave including Return to Work interviews and Formal meetings on Business World. The Project Manager, for the project to improve self-service for unplanned leave, has met with relevant service supervisors/ managers during 2024 and reported improvements. Although the ERP System is a Corporate Resource, and in our opinion, a system which all services are responsible for embedding into their operations, our review indicated that this view was not always concurred with within parts of services. We have therefore recommended that People and OD Management, as owners of the Managing Absence Policy, should continue to liaise with the Project Team, ERP team as well as services management to decide if the current processes in place as an alternative to self-serving in Business World (proxy users) for unplanned leave are the best work around options to enable the tasks to be undertaken. It is recognised that the additional work as a result of the Business World projects will require resources from People and OD and therefore will have to prioritised and built into their staff workplans. Waste Management Assurance Limited Assurance • Although roles and responsibilities relating to the provision of the commercial waste service are clearly defined and processes are in place in relation to providing this service, issues were identified in relation to the invoicing of customers for the uplift of commercial Page 61 of 192
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Appendix 1 5 waste. Furthermore, concerns were identified in relation to the level of outstanding debts for the uplift of commercial waste. Although work has commenced by the Waste Service to determine the information available on clients not paying their invoices, there was no formal policy in place for staff to follow regarding the continued provision of the service for clients with outstanding debts and this needs to be addressed as soon as possible. Treasury Management Assurance Reasonable • Discussions are ongoing between Treasury supervisors and Purchase to Pay supervisors as to payment categories that would be more suitable for the Purchase to Pay team to administer instead of the Treasury team and it was recognised that these should be transferred across as soon as possible. In addition, a lack of segregation of duties was identified in that all users with Corporate Administrator and single authorisation access can currently request a payment and also authorise that payment themselves which required to be addressed. Other recommendations in relation to the authorisation of payments were made. Programme Management - Project Health Checks Assurance Substantial Assurance • The health check assessments carried out on the City Deal & Infrastructure and the Housing Led Regeneration & Renewal Programmes were found to be robust with actions arising from the presentations to the Corporate Management Team being addressed. Unpaid work Assurance Reasonable • The sample testing undertaken indicates that unpaid work orders are adequately monitored. The courts are notified on completion of unpaid work orders or in cases on non – compliance. There are still some ongoing issues with recording unpaid work orders and other community service order information on the Eclipse system and work was ongoing with the developer to fix these. This has resulted in manual processes and Page 62 of 192
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Appendix 1 6 spreadsheets being prepared to meet operational needs. Recruitment Assurance Reasonable • Audit testing in the areas of the recruitment process after a preferred candidate has been chosen noted that generally target timescales were met for each part of the process and that where targets had not been met, these were followed up through management checking processes. It was also noted that although there are good monitoring and oversight arrangements in place, these could be improved by establishing Key Performance Indicators that could be reported at a higher level than the current processes dictate. 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. Page 63 of 192
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19 May 2025 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Summary of Internal Audit Activity in Partner Organisations 1 October to 25 April 2025 ___________________________________________________________________ 1. Summary 1.1 Members of the Audit, Risk and Scrutiny Committee expressed an interest in the outcomes of audits undertaken in partner organisations. 1.2 This report provides members with a summary of the internal audit arrangements within each partner body and a summary of the internal audit activity from 1 October 2024 to 25 April 2025. 1.3 Renfrewshire Valuation Joint Board – Internal audit services are provided by Renfrewshire Council’s Internal Audit Service. An audit on the non-domestic rates valuation system has been undertaken and will be reported upon to the Renfrewshire Valuation Joint Board. 1.4 Scotland Excel Joint Committee - Internal audit services are provided by Renfrewshire Council’s Internal Audit Service. An audit relating to the governance arrangements of the contract delivery process is currently in progress and will be reported upon to the Executive Sub-Committee once finalised. 1.5 Renfrewshire Integration Joint Board - Internal audit services are provided by Renfrewshire Council’s Internal Audit Service. Audits have been finalised relating to governance and financial planning processes. A summary of these audit engagements are included at appendix 1 and 2 of this report. An exercise to ensure that previous internal audit recommendations have been implemented by their due date was undertaken and Management confirmed all the recommendations were implemented. Item 5 Page 65 of 192
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1.6 Glasgow City Region City Deal – Internal audit services are provided by Glasgow City Council Internal Audit Services, finalised reports for each completed audit engagement are reported to the Glasgow City Region Cabinet and the reports are shared with member Council’s. Currently one audit review is ongoing on the financial monitoring and reporting controls carried out by member authorities. A summary of the review will be shared with members once the final report is received. ___________________________________________________________________ 2. Recommendations 2.1 All of these Summaries of the Audit Reports have been submitted and considered by the partner organisations’ audit committees. Members are therefore invited to note the content of these summaries. __________________________________________________________________ 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 plans for the partner bodies 11. Privacy Impact – None 12. COSLA Implications – None 13. Climate Risk – None 14. Children’s Rights – None. Page 66 of 192
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________________________________________________________________ Author: Karen Campbell, Interim Chief Auditor Page 67 of 192
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Appendix 1 Internal Audit Report INTEGRATION JOINT BOARD IJB - Governance Arrangements (B0017/2025/001) Date: February 2025 COMMITTEE SUMMARY Audit Objectives The IJB have developed local governance arrangements that are designed to ensure compliance with, ‘Delivering Good Governance in Local Government: Framework,’ published by CIPFA. The objectives of this audit were to review independently and report annually to the IJB Audit, Risk and Scrutiny Committee: • To provide assurance on the adequacy and effectiveness of the Local Code of Corporate Governance and the extent of compliance with it. • To support the Chief Internal Auditor’s annual opinion included in the Internal Audit Annual Report and the Governance Statement included in the Annual Accounts. Audit Scope 1. Obtained an up-to-date copy of the IJB’s Local Code of Corporate Governance and selected a sample of elements for compliance testing. 2. Obtained the appropriate evidence to confirm compliance with the Code. Key Audit Assurances 1. The Local Code and Sources of Assurance for Governance Arrangements was updated and submitted to the Renfrewshire Integration Joint Board on the 21st of June 2024. 2. Based on our sample check of the evidence used to demonstrate compliance, we would confirm that the IJB complies with the requirements of the Local Code of Corporate Governance. Key Risks No key risks were identified as a result of this audit. Overall Audit Opinion Internal Audit has reviewed the adequacy and effectiveness of the revised Code which was presented to the Renfrewshire Integration Joint Board on the 21st of June 2024. Based on our sample check of the evidence used to demonstrate compliance, we would confirm that the IJB complies with the requirements of the Local Code of Corporate Governance. In addition, it is evident that the Local Code has been subject to regular review and updating in line with developments in best practice. Management Commentary N/A as no key risks were identified. Page 68 of 192
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Appendix 2 Internal Audit Report IJB Financial Planning (A0114 2025 001) January 2025 COMMITTEE SUMMARY Audit Objectives The objectives of the review were to ensure that financial plans are: • Aligned with the IJB Strategic Plan; • Supported by reasonable assumptions; • Regularly reviewed to adapt to existing and emerging financial risks; • Based on consultation with appropriate people and teams; • Reported to the appropriate senior managers and Boards. Audit Scope 1. Interviewed the appropriate officers to ascertain the systems in place for financial planning. 2. Prepared and carried out a programme of tests to enable the audit objectives to be met. 3. The auditor reviewed financial plans reported to the IJB Board and working papers for some of the cost pressures referred to in financial plans. These related to council recharges, adult supported living planned placements including childcare transitions and prescribing. Key Audit Assurances 1. Financial plans are aligned with the IJB Strategic Plan. Measures to reduce cost pressures referred to in the Strategic Plan are presented in the Medium-Term Financial Plan and annual Delegated Health and Social Care Budget. 2. The sample of components of the Renfrewshire Health and Social Care Budget tested were supported by reasonable assumptions and methodologies to calculate costs. Assumptions for Planned Placements and Prescribing are reviewed and updated by the Finance Team every 4 weeks. We were advised that the same rigour is applied to all other financial planning assumptions. For Planned Placements this includes the average increase in placement costs over the last 3 years being cross checked against a future placement tracker and childcare transitions spreadsheet which is approved / signed off by the Head of Childcare in the Council. For Prescribing, the projected % cost uplift and supporting data for each financial year provided by NHS Finance Prescribing Lead is analysed by the Finance team to project future volume increases and estimated average cost per item for prescribed medicines. 3. Financial plans are scrutinised on a 4-weekly basis by the Finance team to adapt to existing and emerging financial risks and these risks are noted in relevant meeting minutes and reports. Planned Placement budget packages are discussed at Resource Planning meetings to ensure best value before approval by the Head of Service and the Chief Finance Officer. Prescribing reports refer to anticipating future changes which involve assessing future prescribing behaviour, the influence of external drivers of prescribing, and the impact of new medicines coming to the market. 4. Financial plans are prepared after consultation with appropriate stakeholders. Council and RHSCP finance mangers discuss recharges, to ensure that they are fairly calculated. Planned Placements are discussed at Finance & Governance meetings to manage demand pressures for placements and Heads of Service budget monitoring meetings to manage costs and Page 69 of 192
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Appendix 2 Internal Audit Report IJB Financial Planning (A0114 2025 001) January 2025 savings. Prescribing is discussed at Chief Finance Officer meetings to monitor medicine price and volume increases and Sustainable Futures (Prescribing meetings) to discuss alternatives to currently prescribed medications as well as regular prescribing budget meetings which include the Clinical Director and Lead Pharmacist. 5. The financial plans are reported to the appropriate senior managers and Boards e.g. Due Diligence Report on Support Service Recharges and the Delegated Health and Social Care Budget referring to Planned Placements and Prescribing reported to the IJB. Key Audit Risks If appropriate savings or reductions in services are not identified, there is a risk that Renfrewshire IJB will have insufficient funding to achieve a balanced budget. Overall Audit Opinion The arrangements in place in Renfrewshire Integrated Joint Board for financial planning were found to be robust. The Finance team robustly monitor budgets and fluctuations in cost pressures throughout the financial year (4 weekly). Due to the nature of the budgets including external and internal influences these were found to be particularly complex in the areas reviewed. In September 2024, the IJB’s external auditors stated that there is a critical need to identify recurring savings or reductions in services for Renfrewshire’s IJB to remain financially sustainable. The IJB’s Chief Finance Officer responded that additional savings proposals will be prepared to be considered by the IJB in March 2025, alongside a draft budget for 2025/26 and an updated Medium Term Financial Plan. However, the savings proposals for 2025/26 were taken to the IJB earlier than anticipated, (reflecting the level of savings required to deliver financial balance) in December 2024. Savings of approximately £14m over the next 3 financial years were approved by the Board and savings of approximately £3m were agreed to be progressed over the next 3 financial years which will require further consultation. We have asked for confirmation that the draft budget for 2025/26 and updated Medium Term Financial Plan will be delivered as stated. Management Commentary The Chief Finance Officer confirmed that an updated Medium Term Financial Plan will be taken to the IJB in March 2025 along with the proposed budget for 2025/26. In addition, the sustainable futures programme is the overarching programme to deliver financial sustainability for the IJB and as such reports will be taken to each IJB over the next couple of years with updates on both approved savings and also those which require approval to be taken forward by officers to the next stage prior to being presented to the IJB for approval. Page 70 of 192
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Page 2 of 4 __________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19 May 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Risk Management Annual Report 2024/2025 ___________________________________________________________________ 1. Summary 1.1 1.2 1.3 1.4 This paper presents the Risk Management Annual Report for 2024/2025 (Appendix 1). The Report describes the corporate risk management activity that has taken place during 2024/2025 in relation to the council’s risk management arrangements and strategic risk management objectives. It is not the purpose of this paper to report on the management of specific risks as such information is already provided separately to the Board in the Risk Report, May 2025 paper. In exceptionally challenging times and with constrained resources, the council continues to apply an appropriate level of risk management to prevent or mitigate the effects of loss or harm. In doing so, we recognise that good risk management contributes to the delivery of better service and financial outcomes, business objectives, better project success rates, achievement of targets and fewer unexpected problems. We purposefully promote a risk aware culture and strive to place risk management information at the heart of the key decisions that we make. Our risk appetite is ‘cautious.’ We take an effective approach to managing risk in a way that both addresses our significant challenges but also enables innovation. This report is provided in the knowledge that in an independent review of the council’s risk management arrangements, during 2024/25, WTW (the auditors), concluded that “Renfrewshire Council has a well-established approach to risk management with many positive features, especially in terms of strong governance and a positive cultural attitude towards risk management at a corporate level.” ___________________________________________________________________ 2. Recommendations Item 6 Page 71 of 192
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Page 3 of 4 2.1 It is recommended that the Board considers the content of the Annual Report, noting the robustness of the council’s risk management arrangements and the significant contribution that it makes with regards to the council’s corporate governance arrangements. ___________________________________________________________________ 3. Background 3.1 In keeping with the ‘Scheme of Delegated Functions’ a Risk Management Annual Report is provided to the Audit, Risk and Scrutiny Board each year for consideration. The report supports the council’s code of corporate governance and seeks to provide assurance to stakeholders (internal and external) concerning the comprehensive risk management arrangements in place at the council. ___________________________________________________________________ Implications of the report 1. Financial – not relevant to report recommendations 2. HR & Organisational Development – not relevant to report recommendations 3. Community/Council Planning – not relevant to report recommendations 4. Legal – not relevant to report recommendations 5. Property/Assets – not relevant to report recommendations 6. Information Technology – not relevant to report recommendations 7. Equality & Human Rights – not relevant to report recommendations 8. Health & Safety – not relevant to report recommendations 9. Procurement – not relevant to report recommendations 10. Risk – as per the subject matter of this report 11. Privacy Impact – not relevant to report recommendations 12. Climate Risk – not relevant to report recommendations 13. Children’s Rights – This report does not present a new policy, function, or strategy, nor a substantive change to an existing policy, function or strategy which will have an impact on children’s rights. The report itself is therefore largely neural on children. However, our risk management arrangements extend to the management of certain risks which support a number of the Articles contained within the United Nations Convention on the Rights of the Child (Incorporation) (Scotland) Act 2024. For example, managing the risk relating to ‘Community and Public Safety’ supports Articles: • 19 – protection from violence • 34 – protection from sexual abuse • 35 – protection from sale and trafficking • 36 – protection from exploitation 14. Cosla Policy Position – not relevant to report recommendations Page 72 of 192
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Page 4 of 4 ___________________________________________________________________ List of Background Papers (a) Non applicable – reports provided on a year-by-year basis ___________________________________________________________________ Author: Karen Locke Risk Manager riskmanager@renfrewshire.gov.uk Page 73 of 192
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Document Title: Risk Management Annual Report 2024/2025 Service: N/A Lead Author Risk Manager and the Corporate Risk Management Group Date Effective: 19 May 2025 Review Dates: Not applicable Appendix 1 Risk Management Annual Report 2024 - 2025 Page 74 of 192
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Document Title: Risk Management Annual Report 2024/2025 Service: N/A Lead Author Risk Manager and the Corporate Risk Management Group Date Effective: 19 May 2025 Review Dates: Not applicable CONTENT 1. Introduction ........................................................................................................................................... 1 2. Risk Management Framework 2024/25: Overview ............................................................................... 1 3. Risk Management Infrastructure/ Enablers ........................................................................................... 2 4. Risk Management Process ..................................................................................................................... 3 5. Risk Management Application/ Results ................................................................................................. 4 6. Reporting and Monitoring ..................................................................................................................... 4 7. Risk Management Function/ Training and Development ...................................................................... 5 8. Conclusion ............................................................................................................................................. 6 Page 75 of 192
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1 Document Title: Risk Management Annual Report 2024/2025 Service: N/A Lead Author Risk Manager and the Corporate Risk Management Group Date Effective: 19 May 2025 Review Dates: Not applicable 1. Introduction 1.1 The Risk Management Annual Report is provided to the Audit, Risk and Scrutiny Board each year in keeping with its delegated function of considering the corporate risk management annual report. The Report describes the corporate- led risk management activity that has taken place during 2024/25 in relation to the council’s risk management arrangements and strategic risk management objectives. The Report does not cover the management of specific risks as such information is already provided separately to the Board in the Risk Report, May 2025 paper. 1.2 In exceptionally challenging times and with constrained resources, the council continues to apply an appropriate level of risk management to prevent or mitigate the effects of loss or harm. In doing so, we recognise that good risk management contributes to the delivery of better service and financial outcomes, business objectives, better project success rates, achievement of targets and fewer unexpected problems. 1.3 We purposefully promote a risk aware culture and strive to place risk management information at the heart of the key decisions that we make. Our risk appetite is ‘cautious.’ We take an effective approach to managing risk in a way that both addresses our significant challenges but also enables innovation. 1.4 This annual report supports the council’s code of corporate governance and seeks to provide assurance to stakeholders (internal and external) concerning the risk management arrangements in place at the council. This report is provided in the knowledge that in an independent review of the council’s risk management arrangements, during 2024/25, WTW (the auditors), concluded that “Renfrewshire Council has a well-established approach to risk management with many positive features, especially in terms of strong governance and a positive cultural attitude towards risk management at a corporate level.” 2. Risk Management Framework 2024/25: Overview 2.1 Below is an overview of the key components of the council’s risk management framework. Thereafter sections 3 to 7 of this report expand on each component and highlight specific points relevant to 2024/25 activity. (1) Infrastructure/ enablers At the heart of the council’s risk management arrangements are the strategic risk management objectives, the risk management policy and strategy and the strategic risk management development plan. Also embedded within the infrastructure are the communications systems in use for risk management information, the Intranet and the key policy boards and groups such as the Corporate Management Team and Corporate Risk Management Group that have a specific role in risk management. NOTE: looking ahead - the Framework, including Risk Matters (our combined risk management policy and strategy), is due for review in 2025/2026. The review will take account of recommendations from the recent WTW external review of the council’s risk management arrangements, and so the revised policy and strategy will be slightly delayed to May 2026 to allow the related development work to be completed. (2) Process A cyclical process for risk assessment, treatment, communication, monitoring and review of risk using a standardised risk matrix. The process and supporting matrix continue to enable a consistent approach to risk management throughout the council, set within the context of the council’s capacity and tolerance for risk, sometimes also referred to as ‘risk appetite.’ NOTE: looking ahead – the definitions and approaches associated with the terms ‘appetite’ and ‘tolerance’ will be revisited later in 2025/26 in line with WTW recommendations and anticipated guidance from ALARM later in 2025. (3) Application/ results Risk management is not viewed as an isolated function or practice but is applied to other key business processes of the council, including service planning, financial planning, performance management, procurement, project management and partnerships. Applying risk management at the right time and in the right way is key to risk management adding value to the organisation and delivering tangible results. (4) Reporting and monitoring Reporting and monitoring arrangements, including individual and group roles and responsibilities for risk management, are defined in such a way as to ensure a suitable flow of risk management information throughout the council and an appropriate level of monitoring and scrutiny relating to the effectiveness of the risk management Page 76 of 192
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2 Document Title: Risk Management Annual Report 2024/2025 Service: N/A Lead Author Risk Manager and the Corporate Risk Management Group Date Effective: 19 May 2025 Review Dates: Not applicable arrangements in place and progress being made in relation to activity linked to strategic and corporate risk registers and service risk management plans. NOTE: looking ahead - a new form will be developed in early 2025/26 (accessible by all employees), to assist with ease of capture of risk information/ risk identification, from any area of council business and service delivery. (5) Risk management function For the risk management framework to be effective, it must be underpinned by training, guidance and ongoing development activity which raise awareness of how to implement good risk management practice across the council. This aspect of the framework informs the workplan of the corporate risk management function under the responsibility of the Director of Finance and Resources. NOTE: A recommendation of the WTW review is that the Director of Finance and Resources should “increase internal resource allocated to management of risk.” 3. Risk Management Infrastructure/ Enablers 3.1 Risk Management Policy and Strategy In November 2023 ‘Risk Matters’ the combined risk management policy and strategy was revised and approved by the Audit, Risk and Scrutiny Board1. At an interim review of Risk Matters in November 2024 (corporate risk management group), no material changes were made as it was felt that a full review would be more beneficial to take account of recommendations flowing from the external review of the council’s risk management arrangements. The review will take place in the second half of 2025/26 with a new version to be submitted to ARSB in May 2026. 3.2 Strategic Risk Management Objectives The council bases its strategic risk management objectives around the former National Risk Management Performance Assessment Model developed by ALARM2. The strategic risk management objectives remain relevant and continue to form the basis of our Strategic Risk Management Development Plan. 3.3 Strategic Risk Management Development Plan To support the ongoing implementation of ‘Risk Matters’ and the continuous improvement of risk management practice within the council, a Strategic Risk Management Development Plan (the Plan), is in place, outlining key actions that require to be completed over the life cycle of Risk Matters. The Plan is accessible to all Corporate Risk Management Group members via the Group’s MS Teams channel. Performance against the Plan is reported as follows: YEAR 1, 2024-25 Key performance figure - 100%, (12 of 12 actions) complete, against an 85% in-year target YEAR 2, 2025-26 10 of 10 actions in progress 1 Risk Matters is reviewed formally every two years by Board with an interim annual review conducted by the Corporate Risk Management Group. 2 ‘ALARM’ is a member association for risk professionals working in the public sector in the UK. The council’s Risk Manager is a Board Director of ALARM. Page 77 of 192
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3 Document Title: Risk Management Annual Report 2024/2025 Service: N/A Lead Author Risk Manager and the Corporate Risk Management Group Date Effective: 19 May 2025 Review Dates: Not applicable 3.4 The Corporate Risk Management Group (CRMG) (1) The Group meets 6 weekly for ‘Risk Pulse’ ensuring all members are aware of developing/ emerging areas of risk and how this might impact on various risk registers. The key purpose of this meeting is to share good practice, be aware of each other’s risk context (thus promoting corporate working) and identify new and emerging risks. Risk Pulse performance has been in line with strategy/ corporate expectations. (2) The Group also meets on an ad hoc basis for ‘Risk Bite’ where meetings are arranged to ensure progress against key milestones such as ensuring risks are reviewed and reports provided timeously to Board. Risk Bite performance has been in line with strategy/ corporate expectations. (3) The final core aspect of activity is ‘Risk Dive’ where the purpose is to carry out an in-depth analysis of a specific risk to form an opinion as to whether the risk is over, under or well controlled, and take forward any improvement actions required. Risk Dive performance has not been as hoped for during 2024/25. The Group aims to undertake two deep dives per annum but due to competing priorities for the corporate risk function, only one event could be facilitated in the year. The risk explored was in relation to workforce planning, recruitment and retention. 3.5 Information and communication The council’s website continues to be the main channel through which colleagues and indeed the public can access information about our risk management arrangements. Information about the council’s insurance arrangements is available to colleagues via the intranet. The Corporate Management Group has access to further in-depth material through its extensive use of a dedicated MS Teams channel and sub channels. While risk register data is collated for reporting within the MS Teams channel, going forward there will be development undertaken to systemise this data. New in 2024/25: To improve the resilience and workload management of the risk and insurance team (total 2 FTEs), new shared mailboxes were established, thereby better channelling enquiries and requests for support. 4. Risk Management Process 4.1 The table below summarises the guidance which accompanies the risk management process. Applying this process in all aspects of business helps officers to manage their activities and pursue opportunities in a way that helps achieve objectives and prevent loss or harm. Establish the context Services consider risk in terms of context such as key themes and objectives, service priorities, operational activities or projects, longer-term or shorter-term objectives. Identify risk Services carefully define their risks in such a way as to be clear about the situation presented (opportunity, activity, service change, problem or challenge) and the consequences that may flow from it. We use risk ‘bowtie’ analysis which employees are finding very visual and helpful in understanding risk. Analyse risk Services analyse risk in terms of likelihood of occurrence and should it occur, its potential impact using the standardised risk matrix. Evaluate risk Services evaluate risk in terms of significance, being either ‘low’, ‘moderate’, ‘high’ or ‘very high’ and compare this with the council’s capacity and tolerance for risk. Treat risk Services consider a range of options when deciding on the most appropriate way to address their risks, either through measures to terminate; transfer elsewhere (such as through insurance); tolerate as it is; or treat with cost effective measures to reduce it to a level where the exposure is acceptable or tolerable for the council in keeping with its capacity and tolerance for risk. Note: in the case of opportunities, services may ‘take’ an informed risk in terms of tolerating it if an opportunity is judged to be (1) worthwhile pursuing and (2) the service is confident in its ability to achieve the benefits and justify the risk. Monitor and review risk Services are aware that once a risk assessment has been undertaken it is necessary to continue to monitor and review the risk for changes in context or the measures that are in place to control it. Communicate and consult Services are aware that it is good practice for at least two officers with relevant subject knowledge to undertake risk assessment (in consultation with other officers if necessary) with the key outcomes of Page 78 of 192
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4 Document Title: Risk Management Annual Report 2024/2025 Service: N/A Lead Author Risk Manager and the Corporate Risk Management Group Date Effective: 19 May 2025 Review Dates: Not applicable the risk assessment process communicated to relevant persons (such as using the risk implications section on Board papers). The standardised process for risk management within the council remains fit for purpose. The steps in the process are embedded in the council’s online risk management course. 5. Risk Management Application/ Results 5.1 For risk management to truly add value for the organisation, it needs to be applied across the range of business processes in operation throughout the council and all its service departments. This section provides an outline of how this happens in practice across a range of business practices. 5.2 Risk management continues to be a key component of the council's programme and project management arrangements meaning that if risks are proactively addressed through each stage of a project, the desired outcomes are more likely to be achieved, on time and within the planned budget. 5.3 Each service continues to monitor their risks and refresh them annually, taking account of the service priorities and service improvement plans. This means that risks relating to the service priorities are proactively addressed and services are more likely to achieve their priorities and outcomes as planned. 5.4 Each year, services bring to the attention of the Director of Finance and Resources any areas of unavoidable cost pressures they are experiencing. During this process services can highlight instances where cost pressures relate to risks, and this supports effective decisions to be made in financial planning. 5.5 For risk assurance, each and every Head of Service (and direct reports to Directors), undertake self-assessment with the Business as Usual Risk Assurance Model (BaURAM © Renfrewshire Council) which was developed in house and launched in April 2023. The outputs from the model are reported to the Audit, Risk & Scrutiny Board as per the 6 monthly risk reporting requirements and separately by the Chief Auditor in relation to annual governance assurance levels. 6. Reporting and Monitoring 6.1 The governance arrangements in place during 2024/25 have continued to ensure clear lines of accountability for risk management and continue to enable a suitable flow of risk information throughout the council. The Audit, Risk & Scrutiny Board received risk progress reports on time in May and November 2024. 6.2 Each service has at least one representative on the Corporate Risk Management Group (the Group), and at least one representative from each service is always a Head of Service. The Group has overseen the 2024/25 strategic and corporate risks, monitoring progress. Services have taken ownership of their risks with processes being followed for reporting, and where necessary ‘escalation’ of significant risks to the Group. All service departments submitted their risk data on time for the 6 monthly progress reports to the Audit, Risk and Scrutiny Board as planned. 6.3 The Corporate Risk Management Group continues to operate in a way that is more dynamic in terms of monitoring risk activity across various risk registers and the Business as Usual Risk Assurance Model. 6.4 In terms of monitoring performance in risk management the council historically participated in the ALARM/ CIPFA3 former benchmarking club to assess risk maturity, and measured as level 4, where risk management was “embedded and integrated.” New in 2024/25: When undertaking their review of the council’s risk management arrangements, WTW used their own model to produce risk maturity ratings, the maximum score for a local authority like Renfrewshire being considered to be 4. The council was assessed as ‘4 – leading’ in the areas of governance and culture, as ‘3 – established’ in the areas of strategy, risk reporting and monitoring, risk analysis and evaluation, and risk 3 Chartered Institute for Public Finance and Accountancy. Page 79 of 192
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5 Document Title: Risk Management Annual Report 2024/2025 Service: N/A Lead Author Risk Manager and the Corporate Risk Management Group Date Effective: 19 May 2025 Review Dates: Not applicable response, and as ‘2 – developing’ in the areas of risk identification and the risk control environment. For this reason the council will be introducing an additional tool/ form to enable new risks to be identified and captured from all/ any business or service delivery area. 6.5 In relation to Key Performance Indicators, as reported last year, new KPIs were agreed for implementation in 2024/25. In addition to the KPIs being agreed, targets have now been clarified, with some minor modifications to KPI descriptors required to ensure the most meaningful data was being gathered. Performance at year end was as follows. 100% Strategic RM Development Plan actions completed in year (annual, target 85%) 100% service departments undertaking horizon scanning, 6 monthly (6 monthly, target 100%) 100% 'Whose risk it anyway' delegate feedback (scoring 4 or above) (per course, target 85%) 100% services (SMTs) reviewing risk profiles regularly (>6 monthly) (annual, target 100%) 97% risk modules showing reasonable or substantial assurance (annual, target 95%) 50% risk ‘pulse’ meetings with 100% service risk rep representation (annual, target 100%) 50% deep dive exercises undertaken against target (annual, target 2 per annum) 5.4% ≥grade 9 completing the online risk module (30% in-year target) (annual, targets as follows): (NOTE: EHI services did meet the 30% target) Yr1 30%, Yr2 60%, Yr3 90%) Looking ahead, in relation to the one red KPI above, service risk reps will track grade 9 (and above) completion of the online risk management course and regularly report progress to their senior management teams in order to bring this target into line with expectations. 7. Risk Management Function/ Training and Development 7.1 The council’s Risk Management Training Strategy ensures we are clear about the council’s expectations as to the degree of risk management knowledge required across a range of roles within the council, and the risk management training and development solutions that are available and should be accessed through the council to enable competence and capacity to manage risk within those roles. 7.2 Over the course of 2024/25 the training below has been delivered, in addition to the two online courses (the introduction to risk management, and the insurance guide for procurement activities): Corporate Course (in person)* Service Specific Elected Members Other ▪ [15/03/2024] Whose Risk is it Anyway? ▪ 31/05/2024 Whose Risk is it Anyway? ▪ 27/08/2024 Whose Risk is it Anyway? ▪ 29/10/2024 Whose Risk is it Anyway? ▪ 21/11/2024 Whose Risk is it Anyway? ▪ 30/01/2025 Whose Risk is it Anyway? ▪ 11/02/2025 Whose Risk is it Anyway? (half day course)* ▪ 02/04/2024 Risk session with Children’s Services DMT ▪ 18/11/2024 Insurance and procurement for Technical Property Services ▪ 19/11/2024 Risk spotlight session for finance and procurement managers ▪ 17/02/2025 Risk session with Finance and Resources Service SMT ▪ 20/06/2024 1-2-1 elected member training ▪ 06/08/2024 1-2-1 elected member training ▪ 17/02/2025 1-2-1 elected member training ▪ 18/04/2024 Risk session with Election Team ▪ 25/06/2024 Election risk and contingency walkthrough event ▪ 15/07/2024 1-2-1 for new subject matter expert (business as usual risk assurance model) ▪ 11/11/2024 Risk session for graduate apprentice accountants ▪ 16/04/2024 1-2-1 session with a new CRMG member * Total numbers of colleagues through the ‘Whose Risk is it Anyway’ course are: ▪ Chief Execs - 06 delegates ▪ Children’s Services - 00 delegates* ▪ Environment, Housing & Infrastructure - 33 delegates ▪ Finance and Resources Services - 13 delegates ▪ Health & Social Care Partnerships - 23 delegates *Note, exploring use of in-service days. Page 80 of 192
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6 Document Title: Risk Management Annual Report 2024/2025 Service: N/A Lead Author Risk Manager and the Corporate Risk Management Group Date Effective: 19 May 2025 Review Dates: Not applicable 7.3 Ad hoc support, advice or training requests continue to be met so far as reasonably practical. NOTE: looking ahead – following the external review of the council’s risk management arrangements undertaken in 2024/25, there has been recognition that further resource is required within the corporate risk function to ensure resilience and capacity. 7.4 To continue to provide evidenced based training, development and advice for the council, the council’s Risk Manager maintains continued professional development in her field and is qualified to Masters Level (MSc in Risk Management awarded by Glasgow Caledonian University). 7.5 Through membership of some groups and organisations that include ALARM, the Risk Manager keeps abreast of risk management developments and best practice in other public-sector organisations and local authority areas. The Risk Manager now sits on the ALARM Board and is presently serving a two year term as ALARM President. This role means greater development opportunities that in turn serve the council well. 7.6 Through the council’s contracts with Insurers and Insurance Brokers, the Risk and Insurance Team keep up to date with developments in the insurance sector to ensure that the council’s insurance interests and liabilities are protected so far as possible. 8. Conclusion 8.1 This Report has provided an overview of risk management arrangements and activity relating to 2024/25 in regard to the council’s corporate-led risk management approach. It is intended that the report provides assurance to the Board. Page 81 of 192
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19 May 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Risk Report, May 2025 ___________________________________________________________________ 1. Summary 1.1 Each year the Board considers and approves the council’s risks. 1.2 This paper sets out the latest position in managing the council’s risks, on entering the new financial year. The appendices attached provide details of: • 1: longer-term or imminent strategic risks • 2: longer-term significant corporate risks • 3: service risks • 4: assurance levels for business-as-usual risks 1.3 This paper does not include specific programme or project risks as each programme board has established governance arrangements for the ongoing monitoring of such risks throughout the lifetime of the various projects. ________________________________________________________________________________ 2. Recommendations 2.1 It is recommended that the Board approves the report. _________________________________________________________ 3. Background 3.1 The key areas of risk previously reported to the Audit, Risk & Scrutiny Board in November 2024 were: Strategic Risks: Very High Economy Very High Reducing inequalities High Migration and asylum related impacts High Global environmental sustainability and route to Net Zero High Strategic sustainable planning for people and assets Corporate Risks: Very High Successful Cyber Attack Very High Financial sustainability High Asset management High Financial Stability High Workforce planning, recruitment, and retention High Delivery of homeless duties Moderate National Care Service - governance and financial implications Item 7 Page 83 of 192
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3.2 The strategic and corporate risk profile for the council in terms of its longer-term or imminent risks was: Evaluation: Low Moderate High Very High Total LT or Imm Strategic Risks: 00 00 03 02 05 LT or Imm Corporate Risks: 00 01 04 02 07 3.3 Service department risk profiles were as follows: Chief Executives Children’s Services Environment, Housing & Infrastructure Finance & Resources - - 1 - 7 - 1 - - 2 - 2 - 5 - 2 3.4 All risks were evaluated using the Council’s adopted risk matrix; this involves multiplying the likelihood of a risk event occurring by its potential impact. Risks are then evaluated as either ‘low’ (green), ‘moderate’ (yellow), ‘high’ (amber) or ‘very high’ (red). 3.5 Turning to 2025/2026, and as is our normal practice, we look to the annual Global Risk Report for risk context in terms of the immediate risk landscape, the next two year period and then ten year period. It is interesting to note how the top 5 global risks change over this timeframe, and it helps us to consider the wider horizon as we capture more immediate risks in the here and now. Two specific observations from the data presented in the report are that: a) for the first time in a number of years, economic risks do not feature in the top 5, at all, over the next 10-year period, however, on deeper analysis of the UK subset of data, the economy risk is still with us, and, b) while environmental, geopolitical, societal and technological risks feature in the top 5 over the next 2 years, when it comes to the 10 year point, all but one of the top risks are environmental. Source, Global Risk Report, World Economic Forum Page 84 of 192
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Source, Global Risk Report, World Economic Forum 3.6 Focusing on a national rather than global context, the council turns to the UK National Risk Register [2025] for further intelligence. The NRR provides reasonable worst-case scenarios for ‘acute’ risks, described as discrete events requiring an emergency response. As an example, the NRR reports that the risk of another pandemic is viewed as being in the range of 5-25% likelihood of occurrence with a catastrophic impact. It is important to note that what the NRR does not do, is provide any sense of imminency or timeframe. The World Health Organisation would be a source of intelligence for imminency. 3.7 Focusing more on local matters, which include the West Community Risk Register, and indeed those risks for which we have more influence, in terms of our ability to control or mitigate, the Corporate Management Team has captured, assessed and reviewed what we believe to be the material risks going forward, in relation to delivery of the council plan and related services, both in terms of strategic and corporate risks. 3.8 Individually, service directors have captured, assessed and reviewed their service- specific risks. This has been an area of increased focus over the past 12 months and accounts for an increase in visibility of the number of risks now being formally captured, particularly across Children’s Services and Environment, Housing and Infrastructure Services. 3.9 This section of the report sets out the movement in risks from the November 2024 report to now. • Risks added/ NEW Strategic - nil Corporate o CRR25.04.07 - Partnership financial sustainability – very high This risk was previously embedded within the council’s financial sustainability risk, however in recent months the significance of the Renfrewshire Health and Social Care Partnership’s (HSCP’s) financial position has developed to the extent that this area of financial risk merits being recorded on its own. The HSCP most recently reported a 2024/25 forecast overspend of £3.7m, which is expected to be funded from IJB reserve balances. The HSCP is also indicating Page 85 of 192
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that it faces significant financial pressures moving into 2025/26 and is currently expecting to achieve a balanced budget by relying heavily on the use of reserves and the delivery of savings options recently agreed by the IJB. o CRR25.04.13 – Misinformation/ disinformation – high The proliferation of information providers and social media and online channels has increased the risk of disinformation and misinformation spreading which can undermine trust in public bodies through spreading false information o CRR25.04.14 – Increasing scrutiny burden/ information requests – high Over recent months and years, the council has experienced and continues to experience significant pressure in relation to information requests from a variety of sources (see context), all of which places a significant burden on staff at a time when resource is decreasing. Consequently there is a real risk that statutory and internal deadlines will be missed with service and reputational impacts, and potential fines. o CRR25.04.15 – Renfrew Bridge – moderate The new bridge is complex and unique, being the first opening vehicle bridge across the River Clyde. Robust testing around bridge functionality mitigates technical bridge risks, however the complexity and uniqueness of the new bridge could lead to unforeseen factors emerging in year 1 which could in turn impact on council reputation. Service o Temporary funding streams ending – high (Children’s Services) o Violence and Aggression – high “ o Pupil Attendance and Exclusion – high “ o Additional Support for Learning – high “ o Housing Landlord Compliance – high (EHI Services) o Alcohol, drugs or meds impacts – high o Recruitment & retention, Technical Unit – Moderate “ o contractors are unable to accept waste – Moderate “ • Risks remaining, where scoring has Strategic - nil Corporate - nil Service - nil • Risks remaining, where scoring has (other than de-escalated risks) Strategic - nil Corporate o Financial Sustainability – reduced from very high to high following approval of the budget in February with a grant funding settlement that was higher than forecast. The risk is continually monitored for actuals vs assumptions. Service o Housing Investment Programme – reduced from high to moderate as risk registers for each project are now in place and regularly updated. • Risks escalated from service/s to strategic or corporate - nil • Risks escalated from 'business as usual’ to strategic or corporate - nil • Risks removed or de-escalated to service Strategic - nil Page 86 of 192
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Corporate - nil Service o Last in Block Properties – no longer posing a risk o Collection and disposal of Waste Upholstered Domestic Seating (WUDS)/ Persistent Organic Pollutants (POP’s). The new legislation has been in place for over 15 months and the process of separating and disposing of WUDS/POPS waste has been integrated into normal service delivery. o Programme and project management (FARs) – corporate arrangements in place and nothing of concern coming through the related BaURAM1 module o Payment Card Industry (PCI) compliance – no issues or concerns regarding accreditation based on recent experience. • Risks with material updates but no change to scores o SRR.24.03.05 Strategic sustainable planning for people and assets ▪ Added – Delivery of the newly approved learning estate strategy o CRR24.04.10 Asset Management ▪ Removed - Unwanted Fire Alarm Signalling and Upgrade costs/ new communication systems have been installed and no longer pose a risk ▪ Added - Increasing costs, availability of materials and supply chain issues impacting on works programmes and projects o CRR25.04.17 National Care Service ▪ Still ‘moderate’ but on hold pending a revised Bill to support a different approach to that which was originally proposed. 3.10 Horizon scanning and other points of note There are a number of matters that the Corporate Management Team keep a watching brief on. This is particularly relevant for ‘known unknowns’ i.e. matters that we know could be of concern but are not yet tangible enough for an informed assessment of risk, or, risks where we will be called upon to respond to, but most likely at the direction of national government. These are captured below for information. a) Geopolitical context In keeping with views reflected in the global risk report, CMT continually monitor the geopolitical landscape as what has become clearer in recent months and years is how strategic decisions taken elsewhere globally can very quickly lead to local impacts being felt. b) Emerging duties and current uncertainty around implications Duties were highlighted here in the past in relation to equalities and, the United Nations Convention of the Rights of the Child. At this time the main point to highlight here is the consumer duty for relevant public authorities under provisions set out in the Consumer Scotland Act 2020, which came fully into force on 1 April 2025. The council requires to self-assess levels of compliance with the duties and identify any action required. There may be a risk emerges depending on the outcome following self-assessment. 1 Business as usual risk assurance model – BaURAM © Renfrewshire Council Page 87 of 192
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c) Public health matters A watching brief is kept in relation to the potential for a further pandemic (see para 3.6). Additionally there is recognition of the potential for animal-related public health incidents which include diseases such as avian flu, swine flu etc. The council would take guidance from the Department for Environment, Food & Rural Affairs (DEFRA), on such matters. 3.11 With 3.5 - 3.9 in mind, the strategic and corporate risk profile is now as follows: Evaluation: Low Moderate High Very High Total LT or Imm Strategic Risks: 00 00 03 02 05 LT or Imm Corporate Risks: 00 02 07 02 11 Strategic Moderate risk Very high risk Economy Reducing inequalities High risk Migration and asylum related impacts Global environmental sustainability and route to Net Zero Strategic sustainable planning for people and assets Corporate Moderate risk Renfrew Bridge National Care Service Very high risk Successful cyber attack Partnership financial sustainability High risk Delivery of homeless duties Workforce planning, recruitment and retention Financial sustainability Financial Stability Asset management Misinformation/ disinformation Increasing scrutiny burden/ information requests Page 88 of 192
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3.10 The service department risk profiles are now as follows: Chief Executives Children’s Services Environment, Housing & Infrastructure Finance & Resources - - 6 - 7 - - - - 2 - 2 6 - 1 3.11 Appendix 1 provides the detail for 05 longer-term or imminent strategic risks. Appendix 2 provides the detail for 11 longer-term or imminent corporate risks. Appendix 3 provides the detail for 24 longer-term or imminent service risks. Appendix 4 provides the assurance levels (to date) for business-as-usual risks. 3.12 The strategic and corporate risks remain aligned with the council plan themes that were approved in 2022. __________________________________________________________________ Implications of the Report 1. Financial Recurring costs associated with the measures in place for each risk are considered proportionate to the level of risk, and new planned actions are also considered to be cost effective. The financial requirements to support the risks should be met within the budget of each relevant risk owner, nevertheless, any unplanned and unbudgeted cost pressures that arise in relation to any of the risks identified will be subject to review in consultation with the Director of Finance and Resources. 2. HR & Organisational Development – not relevant to report recommendations 3. Community/Council Planning – effective risk management supports the delivery of all community/ council plan outcomes 4. Legal – not relevant to report recommendations 5. Property/Assets – not relevant to report recommendations 6. Information Technology – not relevant to report recommendations 7. Equality & Human Rights – not relevant to report recommendations 8. Health & Safety – not relevant to report recommendations 9. Procurement – not relevant to report recommendations 10. Risk – as per the subject matter of this report 11. Privacy Impact – not relevant to report recommendations 12. Climate Risk – not relevant to report recommendations Page 89 of 192
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13. Children’s Rights – This report does not present a new policy, function, or strategy, nor a substantive change to an existing policy, function or strategy which will have an impact on children’s rights. The report itself is therefore largely neural on children. However, management of certain risks described in the report support a number of the Articles contained within the United Nations Convention on the Rights of the Child (Incorporation) (Scotland) Act 2024. For example, managing the risk relating to ‘Community and Public Safety’ supports Articles: a. 19 – protection from violence b. 34 – protection from sexual abuse c. 35 – protection from sale and trafficking d. 36 – protection from exploitation 14. Cosla Policy Position – not relevant to report recommendations _________________________________________________________ Author: Karen Locke, Risk Manager 01/04/2025 Email: riskmanager@renfrewshire.gov.uk Page 90 of 192
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9 | P a g e Appendix 1: Strategic Risks, longer-term or imminent • ECONOMY – building an inclusive, green and resilient economy Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation SRR.25.01.01 Economy Renfrewshire’s economy faces challenges such as: growing the working age population; more closely aligning the Education and skills provision with the needs of local employers; and achieving a strong and inclusive economy. The risk therefore is that significant economic improvement and upskilling of local workforce is difficult to progress until the current landscape improves and our investment programmes are completed Head of Economy and Development Head of Finance and Procurement Programme Director – City Deal & Infrastructure (1) Capital investment such as investment in housing and heritage assets; supporting Scotland’s investment by identifying and developing opportunities such as AMIDS2 and supporting local businesses seeking to export to new markets (2) Developing skills interventions to address the risks of unemployment, in particular those in low-paid employment, and parents. (3) Support for local businesses to bid for council contracts (4) Support for local businesses to become more carbon neutral 05 05 25 V.High Renfrewshire’s economy has well established strengths in transport (including Glasgow Airport), retail (including Braehead), manufacturing (including significant international exports) and construction and major initiatives such as AMIDs are key to future growth. There is a risk that failure to support economic growth will have a negative impact on residents, businesses, and public services. Action Codes Actions Latest Note Assigned To Date Status CP22.02.08 Maximise funding for regeneration of Renfrewshire’s places through grant submissions to external sources including UK and Scottish Governments. The Regeneration and Place Team have successfully secured funding through various external sources. Between 21/22 and 25/26 it has been allocated £2.9m from the Place Based Investment Fund for capital regeneration projects. Between 22/23 and 23/24 we have received £1.5m in funding for capital and revenue regeneration spend from the Shared Prosperity fund. The Council has consistently been successful in RCGF funding applications, most recently receiving £800k in funding for the PACE theatre project. Four applications have been submitted this year for the 24/25 allocation. We were invited to Stage 2 for two of these applications, which were duly submitted in November 2024. An application was also submitted this year to the Scottish Governments Vacant and Derelict Land Investment Programme (VDLIP) and again we were successful in progressing to Stage 2, with a further application submitted in November. However, all these applications have subsequently been put on hold by the Scottish Government indefinitely whilst a decision is made on the regeneration grant funding as a whole. However, due to funding reductions to the Scottish Government’s Regeneration funding, it has recently been announced that both the RCGF and VDLIP schemes have been put on hold indefinitely. Funding worth £85k has been secured from SEPA to investigate the potential deculverting and environmental enhancement of the Candren Burn in Ferguslie. Head of Economy and Development 31-Mar- 2026 2 Advanced Manufacturing Innovation District Page 91 of 192
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10 | P a g e The Regeneration team will continue to explore external funding opportunities to help deliver our place shaping agenda. CESDP21 - 01 - 27 Monitor benefits of City Deal Projects, including AMIDS, Clyde Waterfront and Renfrew Riverside and City Region wide employment programmes. Monitoring of benefits reported through the City Region PMO is ongoing. This will be transitioned to Regeneration Team after CWRR completion. Programme Director - City Deal and Infrastructure 31-Mar- 2025 CESIP24.02.01 Fully participate in the AMIDS Joint Venture AMIDS joint venture fully established and operational, Council is fully participating. This action is now complete Programme Director, City Deal and Infrastructure 31-Mar- 2026 CP.22.02.01 Develop an Investment Proposition for Renfrewshire that is clear on our economic ambitions for place Two reports have been commissioned to analyse Renfrewshire’s Growth Sectors. The first highlighted that there are several opportunities which Renfrewshire needs to capitalise on to support the growth of its economy further. The second report aims to reconcile existing priorities, team capacity and skills engaged in the economic development and regeneration functions of the Chief Executive’s Department, with the future opportunities and challenges outlined in the first report and the Council’s Economic Strategy. This report highlights that there is a requirement to grow and increase visibility of Renfrewshire’s inward investment proposition to drive future economic growth and development. A new web page has been created which signposts the area’s main investment locations. (https://www.renfrewshire.gov.uk/article/13818/Renfrewshire-investment-prospectus) Future works includes looking at developing a dedicated investment page on the Invest Renfrewshire webpage. Moreover, a dedicated website to drive investment at AMIDS is being developed and is hoped to be launched later this year. Head of Economy and Development 31-Mar- 2025 CP.22.02.07 Develop a Community Wealth Building Plan for Renfrewshire The Renfrewshire Economy Conference was held in June 2024 with attendance from key stakeholders across Renfrewshire’s public, private and third sectors. Community Wealth Building featured as part of the key economic themes and agendas with a keynote presentation on CWB and the Wellbeing Economy by the Council’s Economic Development Manager and a CWB stakeholder engagement workshop delivered by the Council’s CWB Coordinator. Feedback from the workshop will be used to inform next steps in progressing the CWB agenda across Renfrewshire through building a partnership approach. Renfrewshire’s Anchor Supply Chain event delivered by Renfrewshire Council’s economic development department in partnership with the council’s procurement team alongside anchor procurement partners from NHS Greater Glasgow and Clyde, University of the West of Scotland and Scotland Excel was held in October 2024. The aim of the event was to develop the local supply chain in Renfrewshire to respond to procurement opportunities available in the public sector. The event highlighted public sector opportunities suitable for local SME's and focused on how local SME’s can develop their procurement capability as a supplier. Businesses were encouraged to register on Head of Economy and Development with Head of Finance and Procurement 31-Mar- 2025 Page 92 of 192
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11 | P a g e PCS and to develop their understanding of public procurement and the opportunities that bidding for public sector contracts can unlock. Procurement leads alongside business support organisations provided information and guidance on requirements for bidding and support available for local businesses. Page 93 of 192
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12 | P a g e • PLACE - working together to enhance wellbeing across communities • FAIR - nurturing bright, happy and healthy futures for all Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation SRR.25.02.02 Reducing inequalities in Renfrewshire If we don’t have a coordinated approach to tackling inequalities across Renfrewshire (including for example, the causes and consequences of poverty), this could jeopardise the effort in reducing both the short-term impacts on households but also have wider long-term consequences on attainment and health for people living on low incomes. Head of Policy & Partnerships (1) Fairer Renfrewshire Programme (2) Attainment Challenge and Pupil Equity Funding (3) Strong partnership working (e.g. Community Planning Partnership (CPP). Advice Partnership, Empowering Communities Forum, Improving Life Chances, CPP Board (4) Community Plan identifies ‘Fair’ priorities with associated actions relating to cost of living crisis, addressing the impact of alcohol and drugs, and a just transition to Net Zero. Social Renewal Plan has been developed through a programme of analysis, research, and engagement. 05 05 25 V.High 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. As well as our focus on health and wellbeing, we are also committed to support vulnerable individuals, groups or communities through early intervention and prevention, responding to poverty, supporting routes to employment as well as dealing with welfare reforms. The pandemic had a disproportionate impact on those experiencing poverty and the extent of recovery from those impacts is varied. There is a significant focus on ensuring that people receive the economic and wellbeing support that is needed, with a real opportunity to work in a different way, and to tackle some of the existing inequalities across communities as we do this. The current cost of living crisis impacts disproportionately on particular groups in society. The implementation of recent announcements by the UK Government on welfare reform are likely to have an impact in this area and any changes and mitigations will be closely monitored. Action Codes Actions Latest Note Assigned To Date Status CESIP24.03.06 Deliver the Fairer Renfrewshire programme, working with partners to support residents through the cost-of- living crisis The Fairer Renfrewshire Sub-Committee has been meeting since August 2022 and a Fairer Renfrewshire Officers Group from across services is meeting monthly. In March 2023 existing funds were brought together into a single resource for Fairer Renfrewshire at around £5million, and partners are working together to further develop the programme. There are four key emerging themes which are shared across all elements of the programme, under which key projects are being funded:· Improving financial security· Advancing equality of opportunity· Building community capacity and resilience· Listening to lived experience The new School Support service is now in place across all Renfrewshire secondary schools. This service, provided by Renfrewshire Citizens Advice Bureau (RCAB), embeds advice workers in schools, and referrals can be received by pupils over 16, parents/carers, and school staff. Advice Works is providing a Family Support service to families with younger children, which can be accessed by telephone or online. Both services provide support to maximise family income, and both also receive referrals under the new school meal debt processes, which prioritises supporting families. Winter Connections is running for a 2nd year in Winter 24/25, providing opportunities for communities to come together and take part in free Head of Policy and Partnerships 31-Mar- 2025 Page 94 of 192
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13 | P a g e activities and including food. This has contributed to wellbeing over the winter. The Fairer Renfrewshire Panel has provided insight in a number of areas including holiday provision in Renfrewshire, with the Panel contributing to the plans for our ‘Summer of Fun’, both for summer 23 and 24, the Council’s new School Meal Debt processes, digital exclusion and employability, especially parental employability. Digital inclusion is also being supported through the introduction of Digizones and through the Digital Champions programme, both developed through the Citizens Voice forum. CESIP24.03.05 Develop the Trauma Informed and Responsive Renfrewshire Programme Additional temporary capacity has been created to support this programme. The Level 1 online learning resource is ready for piloting. Work in the first half of 2025 will focus on identifying priority groups for Level 2 training and on growing capacity within the organisation to deliver trauma-informed training. This will link closely to other council-wide programmes such as The Promise and the forthcoming work on tackling stigma. Head of Policy & Partnerships 31-Mar- 2025 CESIP24.03.03 Developing new and potentially radical approaches to tackling child poverty in Renfrewshire Work continues to develop place-based models to tackle child poverty. A Community Needs Assessment is currently being carried out and will inform the next phase. Funding has been allocated to support the continuation of community development activity in Gallowhill following the publication of the Community Needs Assessment. This will provide capacity to support the development and implementation of actions emerging from the community needs assessment, and continue to improve and expand community led activity and infrastructure in the area. Wider work will also be undertaken to develop a place-based approach based on the learning from the CNA. Head of Policy and Partnerships 31-Mar- 2027 CESIP24.01.02 Design a new Connected Communities service model for the Council – implementing a new service structure and developing the corporate approach for the whole organisation Work has been progressed to develop a new Connected Communities function within the Chief Executive’s Service which will bring together staff from the existing Community Learning and Development and Partnership and Inequalities teams. Phase one of this work which focuses on the enabling internal restructure is progressing well. Head of Policy & Partnerships 31-Dec- 2025 CP.22.03.08 Take forward the recommendations of the Alcohol and Drugs Commission The Alcohol and Drug Change Programme is in its final phase and during 2024/25 evaluation work will be undertaken and responsibility for governance and oversight will transition to Renfrewshire Alcohol and Drug Partnership. The Programme Board will continue to meet in 2024 until those arrangements have been finalised. As the funding associated with the Programme will also come to an end, decisions will be required as to the future of projects in receipt of test-of-change funding. Qualitative research has been commissioned to support project leads in gathering information about the impact of their work which can support decision making. This research will also help inform the programme evaluation which will be reported in the autumn. ▪ Several projects have been mainstreamed or completed: Head of Policy & Partnerships 31-Mar- 2025 Page 95 of 192
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14 | P a g e o The Alcohol and Substance Awareness Education pack is in use in education establishments across Renfrewshire. o The additional specialist training for First Crisis means that specialist support for people using alcohol or drugs is now part of the core First Crisis service. o The Youth Health and Wellbeing pilot has concluded. o Two research pieces on Hidden Harm and Family Support are complete. o The Alcohol Policy post has ended, and elements will be incorporated into a new ADP post. o Connecting and Caring Renfrewshire is near completion, with only the evaluation element to complete. o Recovery Change Fund has concluded. ▪ Several projects have funding remaining and so continue: o MYLA, supporting people to sustain settled housing. o Safeguarding Vulnerable Young People, creating additional pastoral support for a small number of pupils in a Renfrewshire secondary school. o Peer support work as part of CIRCLE. o HARRT, delivering mobile outreach services for those not currently engaged with other services. o Stigma/Language Matters, a training resource for staff. Specific work on trauma is part of the wider Trauma Informed and Responsive Renfrewshire programme. This action will be closed and the final evaluation work and transition to new governance will be reported as part of the Fairer Renfrewshire programme. CESIP23.03.02 Develop the Fair Food Renfrewshire strategy. The Fair Food Renfrewshire (FFR) Steering Group, which met initially in September 2023, has continued to meet on a quarterly basis and is now a member of the Sustainable Food Places network. A six-month plan was agreed by the Steering Group in August, and a Food Support Forum was held in October 2024, with a further meeting arranged for February 2025. The purpose of the Form is identifying and solving issues both for those suffering from food insecurity and those providing emergency and community food, exploring opportunities for collaborative working, knowledge sharing and identifying key priorities. This feeds into the first key priority of FFR, which are: · Working to reduce, then eradicate food poverty, by promoting a collaborative approach across all communities, ensuring a dignified and fair access to health and affordable food for all. · Increased access and availability of growing grounds in every town and village within Renfrewshire. · Widen access and availability to educational opportunities regarding nutrition and cooking skills, and wider use of “home economics” type classes within education, health and community settings. The Scottish Government’s update to the National Good Food Plan is due shortly following the analysis of consultation responses being published on 27 September 2024. It is likely that that the Bill will go before Parliament in June 2025, with formal commencement in March 2026. Once the National Good Food Nation legislation has been finalised, a Council food strategy can be drafted to reflect the new statutory duties, and the needs of communities in Renfrewshire and initial contact has taken place with the Living Good Food nation Lab, who have been funded to support Local Authorities develop their plans. Strategic Partnerships & Inequalities Manager 31-Dec- 24 Page 96 of 192
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15 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation SRR.25.02.03 Migration and asylum related service pressures The pace at which asylum dispersal and refugee resettlement has taken place in Renfrewshire since 2022 has been significant, and beyond anything previously experienced. Partnership governance structures have been established to enable partners to share information and to identify and respond to issues as these emerge. In the short term, these are anticipated to be in relation to potential pressure on local education, health and social care services. There are significant pressure on, homelessness and housing services, given the tightness of the current housing market locally and on children’s social work due to availability of foster care and residential provision. Head of Child Care & Criminal Justice Head of Policy and Partnerships Head of Housing Services (1) The Migration and Resettlement Strategic Group meets regularly to review and discuss developments across all migration and resettlement programmes. This group is comprised of senior officers from across appropriate council services. (2) Asylum Dispersal meetings are held once every two weeks with senior council officers and representatives from the UK Government Home Office and their agent Mears. (3) Liaison Meetings with Migrant Help are held approximately once every six weeks with senior council officers and other partner organisations such as Police Scotland and HSCP. (4) The Renfrewshire Community Protection Chief Officer Group receives regular updates on migration and asylum issues and any emerging issues. (5) The Renfrewshire Community Protection Member Officer Group receives regular updates on migration and asylum issues and any emerging issues. (6) Updates are provided, as required, to the Leadership Board of the council. 04 04 16 High Migration/ Ukraine/ Asylum programmes - this is an area which is developing and could be a potential major issue moving forward. The impact of the conflict in Ukraine is reflected within the Financial Sustainability Risk, but only in relation to pricing volatility and global supply issues. The risk here is wider ranging and includes: - Ukrainian Displaced Persons - Home Office Asylum dispersal programme – use of hotel accommodation in Renfrewshire - – increase in volume and speed of decision making - Unaccompanied Asylum-Seeking Children – new requirement from UK Government for Renfrewshire to provide for children and young people under the National Transfer Scheme - Syrian/ Afghan resettlement programme - Support to ensure effective resettlement to New Scots Action Codes Actions Assigned To Date Status Ongoing Monitoring Page 97 of 192
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16 | P a g e • GREEN – leading Renfrewshire to Net Zero Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation SRR.25.03.04 Global environmental sustainability and route to Net Zero A key risk to the Council is that it may not achieve its target of working towards net zero by 2030 in both its own operational emissions and Renfrewshire’s area-wide emissions. Decarbonising our domestic and non- domestic properties and fleet alone will require significant capital investment. In terms of reducing Renfrewshire’s area-wide emissions there are challenges around influencing behavioural changes, and a risk that others do not contribute towards the 2030 target. The climate emergency also brings a risk to the Council in terms of increased frequency of severe weather events may lead to more instances of damage to Council infrastructure and property, interruptions to service delivery and increased demands on services, often with little notice. There is risk to life, transport disruption and pollution to the local environment, as well as impact adversely on the local economy if businesses are unable to operate. The Council has a requirement to provide immediate response and manage the adverse effects of more frequent and severe weather emergency situations, including support to local communities and businesses. Head of Climate, Public Protection and Roads (1) Renfrewshire’s Plan for Net Zero has specific objectives to reduce emissions, and these are included in other key documents such as the Council Plan (2) Governance through the Planning & Climate Change Policy Board as well as a new Net Zero Oversight Group (3) Development of Costed Delivery Plans and a Climate Delivery Action Plan. (4) Sustainable Communities Fund – to support local people to develop sustainable projects that will promote or improve community collaboration, health and wellbeing, local spaces, economic development, biodiversity and the environment. (5) Use of an emissions modelling tool to quantify the impact of actions, inform future targets and present emissions data. (6) A Carbon Management Plan (7) An approved Adaptation Plan 04 04 16 High Climate change is expected to continue and worsen in the future if no action is taken, with increases to mean global temperatures, sea level rises and the increasing frequency and severity of weather events such as floods, heatwaves, droughts and storms. More frequent and intense heavy rainfall events increase the risk of soil erosion and flooding. Severe weather is already affecting public services across Scotland, with operational, reputational, financial and legal consequences. There is also an ongoing impact of severe winter weather including snowfall and freezing temperatures which impact service delivery and the integrity of our roads open space and buildings infrastructure. This shift in weather patterns caused by climate change is also affecting biodiversity across Scotland. Renfrewshire Council declared a Climate Emergency in 2019 and approved the target to work towards being net zero, for both Council estate emissions and area – wide emissions by 2030. In 2022 the Council approved RenZero, the first stage of Renfrewshire’s Plan for Net Zero. This Plan sets out the strategic framework required to work towards our climate change targets. The Planning and Climate Change Policy Board oversee this work. Actions include: leading by example by decarbonising our estate and fleet, publishing our Local Heat and Energy Efficiency Strategy and Delivery Plan, maximising the carbon absorption potential of our natural environment and supporting communities to become more resilient to the impact of extreme weather events. Page 98 of 192
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17 | P a g e Action Codes New Actions Assigned To Date Status SRR.24.03.04a Continue to report transparently on our emissions to ensure that Renfrewshire’s emissions baseline is clearly understood. Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04b Deliver the Local Heat and Energy Efficiency Strategy Delivery Plan. Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04c Identify opportunities for Partnership Delivery Models for clean energy projects such as solar and battery storage Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04d Prioritise actions in relation to the biggest emissions sources, where we have the most influence, through project pathfinder approaches for decarbonisation of domestic and non-domestic properties and vehicles to bring scale and pace to emissions reduction. Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04e Continue to work with stakeholders to articulate the potential costs and skills required to reach our net zero target. Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04f Continue to develop our adaptation measures, as part of an approved Adaptation Plan, as we are aware that mitigation alone will not protect communities from the impact of climate change. Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04g Develop a Zero Waste Strategy to minimise waste generation and encourage reuse and recycling to support a more sustainable and circular economy. Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04h Explore opportunities for expansion of carbon sinks and other carbon capture technologies. Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04i Explore the options around developing a carbon budget for the Council. Head of Climate, Public Protection and Roads 31-Mar- 2026 SRR.24.03.04j Continue to work with communities to ensure a holistic approach to tacking climate change is taken and to ensure no community is left behind. Head of Climate, Public Protection and Roads 31-Mar- 2026 Forward action linked to Net Zero plan: Climate change action to make Renfrewshire net zero - Renfrewshire Website Page 99 of 192
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18 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation SRR.25.03.05 Strategic sustainable planning for people and assets There is a risk that decisions could be made in the short term, for example to address financial pressures, which may then impact adversely on sustainability goals for the longer term impacting on our communities and organisation. CMT (1) Learning Estate Programme Board established (2) Implementation of the Corporate Asset Management Strategy ensures that property assets are managed effectively and efficiently through the provision of relevant management and performance information (3) The Energy Management Team: ensure energy management initiatives are aligned to the capital investment programme and corporate asset strategy to optimise use of property estate and reduce overall running costs and energy consumption levels. Promote reductions in energy usage and advise employees and residents about energy efficiency (4) Through the Procurement Unit, sustainability and community benefits are considered in the development of all contract strategies, with a Sustainable Procurement Strategy approved in November 2023. 04 04 16 High - Deliver sustainable person-centred public services (the Verity Agreement) and an engaged sustainable workforce - Ensure infrastructure future-proofing, with investment in solar and wind farms, electric charging networks and public transport, showing that taking the right risks right now, can transform communities - For capital projects and existing assets, ensure these are fit for purpose for the future and have sustainable maintenance and repairs strategies - Delivery of the newly approved learning estate strategy Action Codes Linked Actions Latest Note Assigned Date Status Ongoing monitoring continues in relation to financial capacity to to deliver the various mitigating strategies Page 100 of 192
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19 | P a g e Appendix 2: Corporate Risks, longer-term or imminent • LIVING our VALUES – making a difference together Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.06 Successful Cyber Attack Regardless of the Council’s technical preparedness for a cyber attack, the threat remains acute and present, as evidenced by successful attacks on partner bodies, with the risk of significant impact on council operations. CMT For security reasons, technical security controls are not published in the public domain. 04 05 20 V.High Context: The risk is specific to a successful cyber attack as more and more this risk comes closer to home, despite the sophisticated technical security protocols and cyber architecture in place, and for those organisations who have been impacted by successful attacks, the effects are devastating. No matter what technology is deployed, the risk is materially impacted by individual employee behaviours – i.e. learning how to recognise a cyber attack and keeping that knowledge up to date by reading cyber updates and doing mandatory cyber training, being alert to phishing attacks and understanding the need for rapid escalation should an error inadvertently be made and criticality of urgently reporting when they have reacted to a phishing email and explaining all actions taken. Action Codes Linked Actions Latest Note Assigned To Due Date Status As agreed by the Corporate Management Team Page 101 of 192
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20 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.07 Partnership Financial Sustainability The HSCP is currently forecasting recurring gross pressures of £33m in 2025/26. Scottish Government funding pass-throughs from both local government and the NHS are expected to amount to £11m, and the second (and final) year of the employer superannuation contribution reduction will avoid £4m of costs. The IJB recently agreed a programme that should generate savings of around £8m in 2025/26, assuming they are fully implemented. All of these mitigating actions may still lead to a planned budget gap of £10m, which could be funded from IJB reserve balances in-year. This will, however, deplete the available IJB reserve balances leave the HSCP with little financial resilience as it enters 2026/27, and despite a continued drive to achieve savings through its Sustainable Futures programme, a recurring budget gap of £25-30m is expected in 2026/27, with minimal reserve balances available to support this position. It is therefore possible that the HSCP may be required to consider financial recovery measures, perhaps even during the course of 2025/26. The Integration Scheme states that should the IJB be unable to achieve a balanced budget for future years, it would be required to seek additional funding from its Partner Bodies, including the Council. Director of Finance & Resources (1) The IJB’s Sustainable Futures programme looks to mitigate some of the pressure through a portfolio of savings measures (2) The Council is fully passing through settlement funding for Free Personal Care and Adult Social Care Real Living Wage increases (3) Regular budget monitoring discussions between Council and HSCP finance officers (4) Regular medium term financial monitoring between Council and HSCP finance officers 05 04 20 V.High Context: Renfrewshire Health and Social Care Partnership (HSCP) most recently reported a 2024/25 forecast overspend of £3.7m, which is expected to be funded from IJB reserve balances. The HSCP is also indicating that it faces significant financial pressures moving into 2025/26 and is currently expecting to achieve a balanced budget by relying heavily on the use of reserves and the delivery of savings options recently agreed by the IJB. Action Codes Linked Actions Latest Note Assigned To Due Date Status Continual monitoring Page 102 of 192
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21 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.08 Delivering homeless duties It is becoming more difficult to fulfil our statutory duties for providing accommodation so breaches may occur with an increase in rough-sleeping and reputational harm. Director of Environment, Housing & Infrastructure (1) Monitored at weekly Housing SMT meetings with Head of Service and senior housing managers (2) Reports to Communities and Housing Policy Board (latest Jan 2025 ) (3) The Council’s stock of furnished properties being used to provide temporary accommodation for those who have nowhere to stay has been increased on a stepped basis to 285 (4) Additional staffing resources have been appointed within Homeless Services, with 3 x Accommodation Officer and 2 x Housing Options Adviser posts now filled on a temporary basis to support the Councils response to the increase in homelessness. Also, extension of 2 temporary posts to improve access to support, housing options advice and advocacy for tenants in the private rented sector. This has been further augmented with additional temporary Accommodations staff from March 2025. (5) Two additional Housing Support Officer posts have now been created and filled on a temporary basis to help ensure the legal duty to assess the support needs of those who are homeless and ensure these needs are met can be complied with This has been further augmented with 3 additional temporary Housing Support posts from March 2025. (6) Attendance at regular multi-agency meetings regarding utilisation of temporary hotel accommodation 04 04 16 High We are at risk of being unable to provide temporary/ settled accommodation for the increased number of homeless applicants, Ukraine and Afghan resettlement programmes, and those asylum seekers living in Renfrewshire receiving positive decisions. Action Codes Actions Assigned To Date Status CRR24.04.14a In response to the increase in the level of homelessness over the last two to three years, The Council has increased its target to provide 55% of general lets to homeless applicants in 2024/25 and this was approved by the Policy Board in March 2024. Continue with the increased target of 55% of general lets to homeless applicants in 2025/26 as approved by the Policy Board in January 2025. Head of Housing Services 31-Mar- 2026 CRR24.04.14b Deliver the key initiatives detailed in Renfrewshire’s Rapid Rehousing Transition Plan, including, the provision of adequate temporary accommodation, increasing the number of lets to homeless in order to meet needs, provide assistance to help new tenants resettle, and upscaling the provision of wraparound support initiatives such as Housing First. Homeless & Housing Support Services Manager 31-Mar- 2025 Page 103 of 192
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22 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.09 Workforce planning, recruitment and retention There is a national shortage in the UK labour market for certain trades and professional services. For Renfrewshire Council that is impacting on certain specialist recruitment campaigns. This combined with salaries that cannot compete with the commercial sector, the reality is that there is a risk the council may lose key personnel, it may be very difficult to recruit suitably qualified and skilled officers for compliance, advisory, investigative and assurance work, with significant impact on statutory responsibilities and slippage in professional activity. Director of Finance & Resources Head of People and Organisational Development (1) Corporate Workforce Planning Group established to manage and implement the Corporate Workforce/ People Strategy. (2) Data analytics to look at areas of risk, trends both recruitment and attrition. (3) Ensuring we hire the right people in the first place by having solid recruitment methods (4) Offering workplace flexibility which can help enhance work life balance, and burnout (5) Creating opportunities for development (6) Partnering with employability, community, and further/higher education programmes to support the Council as an employer of choice 04 04 16 High • Workforce planning risk is captured by our model for business-as-usual risk, however a live issue exists in relation to recruitment and retention challenges for particular roles, such as: o Various trades and professional services e.g, Legal o Social services Action Codes Actions Latest Note Assigned To Date Status Ongoing monitoring with reporting twice yearly to the FRCS Board. Page 104 of 192
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23 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.10 Financial Sustainability If significant cost pressures are not successfully planned for and managed effectively over the medium to longer term, this could jeopardise the financial sustainability of the council and result in a significant impact on availability and quality of front- line services and capital investment resources. Decisions will then be required on the continuity or scope of some services currently offered. Director of Finance and Resources; and Head of Finance and Procurement (1) Revised medium - to long-term Financial Outlook reassessed the various risks to the Council’s short, medium - and longer-term financial sustainability. Refreshed medium term outlook reported to Council on 27 February 2025 along with the 2025/26 budget, and outlined the immediate financial concerns and plans to address these, including savings, and managed use of reserve balances; however, as the position continues to develop and evolve, close monitoring will be required to ensure that the Council manages costs in the short term and fully appreciates the longer term consequences of actions taken to address short-term risks. Committee reports of this nature cover a wide range of current and future financial and economic factors e.g., Strategic Economic and National Policy Context, Cost Pressures, Pressures on Income and Mitigation Strategies to deal with such uncertainties. (2) A well-developed and embedded budget planning, budget setting and budgetary control system is in place throughout the organisation, and this informs members and officers regarding financial performance and stability. This facilitates robust and transparent decision making and incorporates an escalation process with regards budget management issues which may arise. The Council agreed the 2025/26 budget on 27 February 2025. (3) In conjunction with the medium to longer term financial outlook and the Council’s ongoing financial sustainability workstreams, Renfrewshire Council has been proactive in planning for the future by identifying and agreeing a series of directorate-led savings targets over the medium term (2025/26 to 2027/28). It remains the case that savings will continue to require be generated at scale in order to ensure the ongoing financial sustainability of the Council. (4) There is close financial monitoring of the agreed savings to ensure that they are delivered within the agreed timescales, or where this is not possible, to understand and reschedule planned delivery to achieve the associated objectives. Monitoring is undertaken via a combination of financial and operational measures, actions and related update reports. (5) Regular updates and bespoke reports are provided to CMT and the Council with regards the national fiscal position, likely 03 05 15 High Financial recovery from global events - Potential reduced income from NDR/CT over the medium term as full economic implications of the cost-of-living crisis, in particular energy cost inflation, continue to impact local businesses and communities - Volatility in the global supply chains leading to shortage of labour and materials following Brexit and the outbreak of the Ukraine war Best value report - Recommendation in Best Value report to prioritise how services need to be provided in future to be funded from within available resources. Cost and Income pressures - Future grant settlements and the level of funding available. - Implications of national economic policy choices to protect certain services from real-terms reductions in funding such as the NHS - Local Government pay settlements, and non-payroll inflation - Demographics and demand pressures, such as an ageing population with increased associated service demands, and increases in demand for children’s social care Page 105 of 192
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24 | P a g e - HSCP financial situation and real risk of entering financial recovery in 2024/25 - Implications of welfare policies and poverty levels, exacerbated by cost- of-living crisis. - Reductions in income from fee- generating services such as car parking; implications of the national economic recovery and associated risks/uncertainty in economic factors e.g., interest rates and inflation. - Implications of third party provider financial stability, such as childcare providers in current economic climate - Liability for predecessor organisations, in light of the removal of the limitation period for historic child abuse claims developments and the impact on the council through close liaison with national groups e.g., CIPFA DoFs, COSLA and the Scottish Government. This liaison remains critical in ensuring the Council is aware of potential financial developments and is in a position to influence these. (6) The CMT now has a regular formal focus on financial sustainability, with one meeting in four being a Financial Sustainability and Transformation Board. These spotlight director-led savings and any associated policy changes or risks for discussion. (7) Managing the level and use of reserves has been a key tool in addressing the costs of the pandemic, therefore the planned use of reserves in the medium term, and the Council’s Capital Investment and Treasury Management Strategy, are key to ensuring ongoing financial sustainability. (8) Reports and publications from Audit Scotland in relation to the Local Government financial outlook, financial planning and related developments and improvements are supplemented with a Renfrewshire context report, with both reports being submitted to the Council's Audit Risk and Scrutiny Board. (9) Energy consumption data and condition surveys are used to identify priority areas for investment in the Council’s estate, support informed investment decisions and formulate the Council’s Capital and Revenue budgets. (10) Regular review of HSCP financial position along with HSCP colleagues (please refer to new related risk CRR25.04.07) Action Codes Linked Actions Latest Note Assigned To Due Status CRR25.04.08a Directorate Savings Target 2025/26 £8m Targets by directorate have been set, based on influenceable spend. Regular monitoring takes place with Finance Business Partners and ongoing challenge is provided by regular updates to CMT (Financial Sustainability Board). CMT 31-Mar-26 CRR25.04.08b Directorate Savings Target 2026/27 £8m CMT 31-Mar-27 CRR25.04.08c Directorate Savings Target 2027/28 £8m CMT 31-Mar-28 Page 106 of 192
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25 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.11 Financial Stability If significant short-term costs and income losses are not closely monitored and understood, this could destabilise the finances of the Council to an extent beyond the financial resilience of the Council, resulting in a need for immediate cost control measures, or short-term savings which have an immediate impact on service delivery. Head of Finance and Procurement (1) Revenue budget monitoring reports to Policy Boards focus on the forecast year-end outturn position rather than the historic periodic position, so that significant variances are reported early, and any mitigating steps can be taken. This is already highlighting severe price pressures (such as contractual inflation) across different services. The impact of pay inflation is also highlighted through this reporting mechanism. (2) Review of savings workstreams following approval of the 2025/26 Revenue Budget to ensure targets remain achievable. (3) Clear analysis of the Council’s reserves position and potential for reprioritisation or redirection; including the development of plans to rebuild financial resilience of the Council in the medium term. (4) Ongoing discussion with directors to understand the financial consequences of the current economic climate for each service and how these will be managed. (5) Review of capital plan and ongoing projects to ensure clear understanding of phasing of potential spend. 03 05 15 High Context: Imminent shorter- term risk for financial stability, recognising the immediate financial situation of the Council (note: the medium to longer-term financial position is captured under financial ‘sustainability’) Action Codes Linked Actions Latest Note Assigned Due Date Status Ongoing monitoring Page 107 of 192
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26 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.12 Asset Management Effective governance and management of the council’s property assets is essential, otherwise there is a significant risk of harm, financial loss, service disruption, non- compliances, fines, rising energy costs and inability to recover losses via insurance proceeds CMT Director of Environment, Housing & Infra- structure. Head of Economy & Development Services Corporately: Key responsibilities with regards to the Estate span 2 specific service departments, but they come together through a CAMIS Development Group (Corporate Asset Management Information System) which is taking forward a workplan to more effectively consolidate and oversee asset management risk Heads of Service: Effective asset management in practice on the frontline is included within the new Risk Assurance model which went live on 1 April 2023. Responsible person inventory currently being updated for all properties. 03 05 15 High Context: GOVERNANCE – roles and responsibilities 1) Estates (Leases – by and from the council, and on behalf of HSCP) 2) Facilities management (security, housekeeping, statutory duties/ inspection, maintenance, repair, building fire risk assessment) 3) Property services (capital works, and CAMIS development) 4) All services (inspection inventories and response, people elements of fire risk assessment) OTHER MATTERS IN SCOPE 1) Fluorescent Lights – requiring LED replacement. We continue to work through this, and spot replacements will be on a like for like basis, however, larger complete renewal is being considered for Renfrewshire House. 2) Increasing costs, availability of materials and supply chain issues impacting on works programmes and projects Codes Linked Actions Latest Note Assigned Due Status CRR22. 05.10d Undertake gap analysis to identify activities that take place outside of the CAMIS environment and consider if these can be brought into CAMIS by way of system development Due to competing demands, development work on CAMIS has moved to virtual environment and slower than initially planned. Work still being undertaken to assess what sits outside CAMIS and what can be brought in. Discussions with other Local Authorities that use CAMIS to see what can be added with Health and Safety module being reviewed. Due date therefore amended to March 2026. CAMIS Development Group 31- March- 2026 CRR22. 05.10e Explore data and status monitoring Whilst CAMIS is noted to be a good repository for data, development work is required to improve the data and how it can be easily accessed. Due to resource requirements elsewhere in the Council, this has been delayed. However, conversations continue virtually to assess what can be done to improve CAMIS for users to ensure robust, up to date data is stored within the application. Engagement continues with Concerto and recent developments. Short life working group currently discussing the property “Responsible Person” to ensure known across the entire portfolio. CAMIS Development Group 31- March- 2026 Page 108 of 192
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27 | P a g e Work continues to engage with all different stakeholders. Further development to include duty holders and those with delegated responsibilities. Page 109 of 192
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28 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.13 Disinformation and misinformation A significant increase in the number of online channels available and the diversification of audiences can increase the risk of the spread of disinformation and misinformation. This is the intentional spreading of false information which can then be shared by others who may not be aware of any inaccuracies in the information. This can create mistrust and tension within communities and impact on trust in organisations. Head of Marketing and Communications (1) Regular review of channels, their performance and routes to reach audiences (2) Regular review of the council’s social media strategy to ensure effective performance of online channels (3) Regular review of the council’s Marketing and Communications Strategy 2024-2027 (4) Digital Experience Programme to replace Renfrewshire.gov.uk as trusted source of information for public 03 04 12 High Context: The proliferation of information providers and social media and online channels has increased the risk of disinformation and misinformation spreading which can undermine trust in public bodies through spreading false information. Action Codes Actions Latest Note Assigned To Date Status CESIP22.03.12 Launch a new Council website – Renfrewshire.gov.uk – and implement the digital experience strategy, transforming how citizens interact with the Council across digital platforms. Work has started on the initial workshops with the contractor. We are currently refining our delivery timeline and ways of working to ensure alignment with resource and other dependencies. The ongoing rewrite of all existing content continues, with positive feedback from services engaging with the process. We’re continuing the development of our prototypes, design system, and HTML pattern library, and started the research and planning phase of the new intranet. Migration from GovDelivery to SendGrid is underway, with initial efforts focusing on implementation planning. This includes business analysis work around the volume, type and cost of SMS and email messaging used throughout the council to identify efficiencies and cost savings that can be leveraged by improving SMS and emails guidance and increasing the use of approved tools like Sendgrid and GovNotify. Head of Marketing and Communicat ions 31-Mar-27 Page 110 of 192
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29 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.14 Increasing scrutiny burden/ information requests Over recent months and years, the council has experienced and continues to experience significant pressure in relation to information requests from a variety of sources (see context), all of which places a significant burden on staff at a time when resource is decreasing. Consequently there is a risk that statutory and internal deadlines will be missed with service and reputational impacts, and potential fines. CMT (1) Ongoing engagement with scrutiny bodies to plan the Council response and get early visibility of upcoming audit/ scrutiny activity (2) Guidance on the website to assist with proper channelling of enquiries (3) Use of open data and self-service where possible (4) Prioritisation of statutory duties (5) Streamlining processes where possible (6) Database monitoring (Sharepoint/ mailtracking etc) (7) Metrics monitoring/ early warning indicators by service and corporate management team (8) Annual audit of complaints (9) Resident perception survey commissioned 03 04 12 High Context: - Increasing volume of information and engagement requested from various scrutiny bodies as part of ongoing and new national inspection programmes. - Significant volumes of enquiries (FOIs, EIRs, SARs, Complaints from public/ residents, elected members, MPs and MSPs), all requiring responses to be managed, responded to timeously and actions be planned and taken. - Increasing duties linked to recent legislation (e.g Consumer Scotland Act 2020) - All of the above at a time when the council is seeking to reduce resources and work more efficiently. Action Codes Actions Latest Note Assigned To Date Status Ongoing monitoring Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.15 Renfrew Bridge The robust testing around bridge functionality mitigates technical bridge risks, however the complexity and uniqueness of the new bridge could lead to unforeseen factors emerging in year 1 which could in turn impact on council reputation. Head of Environment, Housing & Infrastructure (1) Bridge operatives trained for operations as well as all aspects of health and safety and public safety. (2) Priority to river traffic. The bridge will be opened on-demand to vessels and can be opened in both automatic and manual modes. (3) Procedures are in place should a vessel be unable to pass under the bridge and can be docked in the purpose build layby dock if necessary. (4) Road traffic comms will be explicit re times when the bridged is closed to road traffic/ open to river traffic 03 03 09 Moderate Context: - Complexity – unique, first opening vehicle bridge across the River Clyde - 24/7 operations and community safety matters - Managing expectations for both connectivity and economic benefits - Potential for changing volumes in river traffic outwith council control. Action Codes Actions Latest Note Assigned To Date Status Ongoing monitoring of any incidents and issues emerging. Page 111 of 192
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30 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR25.04.16 National Care Service – governance and financial implications **ON HOLD pending Bill update** Cause: Consultation and negotiation breakdown in relation to fundamental elements of the Bill, with Government continuing to pursue this Policy. Event: Legislation for the new National Care Service being passed with insufficient resourcing or detail on how the service will operate, and unclear lines of accountability. Effect: The council will face further financial and operational pressures and increased risk in terms of liabilities for both the council and HSCP. CMT (1) Maintaining a watching brief through various professional networks 03 03 09 Moderate Under current proposals for the planned National Care Service, staff will continue to be employed by councils. However, under the terms of a partnership arrangement, legal responsibility for the service is to be ‘shared’ between the health service, councils, and Scottish government, with councils also responsible for buildings and the delivery of services. Parliament approved the general aims of the National Care Service (Scotland) Bill at Stage One with significant amendment to follow at Stage Two. Further to Stage Two consultation, COSLA has withdrawn support (in addition to trade unions), for the Bill in its present form, and the situation is now more uncertain than before. The risk statement is updated to reflect the above. Action Codes Actions Assigned Date Status Monitoring only Page 112 of 192
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31 | P a g e Appendix 3: Service Risks Risk (Cause and effect) Risk Capture Service RR Project RR H&S PLAN Evaluation Low Moderate High Very High Means of Monitoring Board Risk-Reporting SIP Project Board H&S Planning Group Notes Chief Executive’s Service (1) Discontinuation of Shared Prosperity Fund If the SPF ceases, without a replacement, funding for current economic development and place-based initiatives would be reduced by £2-3M per annum. £1.5M of this funding relates to long term staff and services (economic development only) so any reduction below this level will mean potential redundancies. Service RR Moderate Board Risk-Reporting Renfrewshire Council benefits from the Fund through the Glasgow City Region arrangements. The current arrangements end in March 2026 and as yet, a replacement has not been identified. Funding for 25-26 was reduced by 45% from the previous year but has been managed to allow core services to continue. (2) AMIDS - Investment Zone status If AMIDS were not to achieve Investment Zone status it could dampen placeshaping ambitions and weaken local economy Project RR Moderate Board Risk-Reporting Investment Zone status would enhance the attractiveness of the site to investors, as status means various tax reliefs as well as practical support from the Scottish Government. The designation of an alternative site could reduce the appeal of AMIDS. Children’s Services (3) Future school capacity planning If demand projections are not sufficiently robust there is a risk that the learning estate will be insufficient over the longer term Service RR High Board Risk-Reporting Robust demand projections (core projection, potential upper scenario and a long-term view) for scale and timing of short-term peak demand to inform decisions. Process and arrangements to support and provide detailed monitoring and updates to projections, for updates to actual data sets to facilitate a continual re-assessment of longer-term trend and likely requirements/ decision point required in relation to deployment of potential additional interventions. Options identified to deliver, if required, additional capacity (both temporary capacity and permanent long-term capacity) to ensure the council can respond appropriately to the potential for upper end demand scenarios and or temporary demand peaks to emerge. A new learning estate strategy has been approved by Elected Members and this will be the blueprint for future decisions and developments Page 113 of 192
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32 | P a g e Risk (Cause and effect) Risk Capture Service RR Project RR H&S PLAN Evaluation Low Moderate High Very High Means of Monitoring Board Risk-Reporting SIP Project Board H&S Planning Group Notes (4) Temporary Funding Streams ending A number of service funding streams are coming to an end in the next two years. This will impact on the continuation of projects and programmes, staffing, services and goods which are linked to the service priorities such as closing poverty related attainment gap, improving mental health and wellbeing and delivering whole family wellbeing. Service RR High Project Board There are a number of funding streams which are ending in March 2026 including the Scottish Attainment Challenge and Pupil Equity Fund. Exit planning and the sustainability of projects has been regularly discussed at portfolio board meetings and as part of the Quality Improvement Framework in schools. (5) Pupil Attendance and Exclusion monitoring Pupil attendance in school has been declining over a number of years. This is due to a number of factors such as the impact of covid, inequalities, additional supports needs and poor mental health and wellbeing. As a result, this can impact on pupil attainment, achievement as well as health and wellbeing. At the same time, the service in monitoring exclusion rates across all establishments with a view to these reducing. Service RR High Board Risk-Reporting This is a national issue which is being monitored on a monthly basis at DMT. Effective strategies and interventions are in place to support and improve attendance of identified children and young people. A number of our schools are participating in a national pilot developed by Education Scotland. There is an Emotional Based School Avoidance working group led by REPS developing a response to this issue locally. (6) Addressing Violence and Aggression Following feedback from staff and regular monitoring of data, the number of violent and aggressive incidents across the service has significantly increased and this poses a risk to children, young people and staff safety. It can lead to absence of children and young people which can have an impact on attainment, achievement and a sense of belonging. It can also have a significant impact on staff absence and wellbeing. Service RR High H&S Planning Group Work is ongoing to monitor violence and aggression in all establishments. A policy was recently launched as part of the support to colleagues and data is regularly reviewed from Business World. Strategies and interventions are in place to support the de-escalation of incidents. Addressing violence and aggression in the classroom must be considered in the context of Getting it Right for Every Learner. (7) Additional Support for Learning Establishments are reporting increased additional support needs and as a result require additional resource and staffing capacity to support needs all of learners within existing budgets. If needs are not supported, children and young people will not thrive in Service RR High Board / Committee Risk – Reporting Recent engagement sessions took place with staff to better understand the issues and potential solutions for schools going forward. Page 114 of 192
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33 | P a g e Risk (Cause and effect) Risk Capture Service RR Project RR H&S PLAN Evaluation Low Moderate High Very High Means of Monitoring Board Risk-Reporting SIP Project Board H&S Planning Group Notes their learning and can also have an impact on wellbeing and sense of belonging. (8) 21 Hours The Scottish Government have committed to a reduction in teacher class contact time from 22.5 hours to 21 hours. This commitment was made in recognition of the workload pressures that Scotland's teachers faced. To deliver, this would require significant planning time as well as an increase in teacher numbers which would have financial implications. Service RR High Board / Committee Risk – Reporting The service is awaiting further announcements from Scottish Government around timescales. However, a desktop staffing exercise has been conducted to assess service implications. (9) Portfolio Management Unintended delays in progress in each of the three portfolios listed below will impact on our ability to ensure that children and young people thrive, learning and achieve: 1. Curriculum, learning, teaching and assessment; 2. Inclusion; and 3. Families and Communities Project RR Moderate Project Board Effective governance arrangements are in place with oversight, leadership and direction being provided by the Portfolio Governance Board which meets on a monthly basis. The three portfolio groups provide updates to the Board. (10) Availability of Alternative Care Placement (Foster Care and Residential Care) This could result in a higher level of risk being managed within the community. Service RR Moderate Board/Committee Risk -Reporting Case managed by Social Work Management Teams with contingency plans in place. Environment, Housing and Infrastructure Services (11) Commercial Vehicle and Operators License Renfrewshire Council requires its fleet of vehicles to be effectively managed, otherwise there could be sustained impact in several areas including community care, housing maintenance and repairs, Neighbourhood Services and waste collection. Service RR High Board Risk-Reporting The fleet comprises around 500 vehicles including heavy and large goods vehicles, light vans and cars. The council implements a range of governance and operational measures to ensure ongoing vehicle operator licence compliance. External auditors carry out ongoing 6 monthly reviews of the operator’s compliance licence. (12) Review of electric vehicle (fleet) infrastructure Service RR High Board Risk-Reporting Electric Vehicle fleet comprises around 102 vehicles. The council implements a range of measures to ensure vehicles Page 115 of 192
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34 | P a g e Risk (Cause and effect) Risk Capture Service RR Project RR H&S PLAN Evaluation Low Moderate High Very High Means of Monitoring Board Risk-Reporting SIP Project Board H&S Planning Group Notes Risks associated with the installation of charging facilities were managed during the related installation projects. There is however a need to review any residual risks that remain in relation to the siting, inspection, and maintenance of the facilities, to further reduce any risks to people or property within their vicinity. are roadworthy and serviced accordingly. The EV Charging Infrastructure is electrically tested at final commissioning stage by a competent EV contractor. EV Chargers are serviced annually as part of warranty/ maintenance contract. Chargers are also monitored remotely by the contractor for any faults and site attended by contractor if fault is not able to be fixed by back-office support. (13) Tree Fall and Ash Die Back & Larch Infection With the emergence of Ash Die back in the UK there is now an increased potential for public injury and property damage, awards against the Council, reputational damage and statutory notices Service RR High Board Risk-Reporting The main trigger for this risk was a significant outbreak of Ash Dieback in the UK which is resulting in a significant number of trees within Renfrewshire having to be felled. Ash dieback work is continuing, and no new species have been identified. (14) Alcohol, drugs or prescription medication impacting employee performance If the Council is unable to identify employees whose performance is impaired by alcohol, drugs or prescription medications when driving or operating machinery, this could lead to an adverse event with impact on employees, service users, and/ or local citizens, and the Council’s Commercial Vehicle and Operator's Licence. Service RR High Board Risk-Reporting The Council fleet currently includes around 75 LGVs (Large Goods Vehicles) and social transport buses. The current corporate policy will be reviewed to clarify ways in which we can identify employees who need support for their own wellbeing, and the general safety of themselves and others when operating equipment (15) Housing Regeneration and Renewal Programme Risks associated with delivering £100m regeneration and renewal programme. Project RR High Project Board Risk registers have been produced for each project and are regularly reviewed to identify, manage and mitigate known risks associated with the programme. (16) Housing IT System Replacement Programme Ensuring replacement system procured fulfils all requirements and is delivered within target. Project RR High Project Board Renewal of main system dealing with Housing Services, Housing Asset Management and Homeless Services. Page 116 of 192
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35 | P a g e Risk (Cause and effect) Risk Capture Service RR Project RR H&S PLAN Evaluation Low Moderate High Very High Means of Monitoring Board Risk-Reporting SIP Project Board H&S Planning Group Notes (17) Housing Landlord Compliance Risk of failing to comply with statutory duties in relation to landlord compliance. This could result in legal penalties, financial losses, reputational damage and potential harm to tenants, staff or appointed contractors. Service RR High Board Report Housing Landlord Strategy and two associated policies approved at March 25 Board. Four remaining policies to be reviewed and presented to Board in 2025. Additional policy on damp and mould to be established. Bi-annual Board reports to be presented with updates on Landlord compliance. Additional reassurance provided through internal and external audit and scrutiny checks. (18) Housing Investment Programme Risk of delivering approved capital investment programmes and ensuring stock complies with statutory and regulatory standards. Project RR Moderate Project Board Risk registers have been produced for each project and are regularly reviewed to identify, manage and mitigate known risks associated with the programme. (19) Disposal of Coal Tar Coal tar is now classed as hazardous waste material. There is consequently a knock-on risk to the council’s resurfacing scheme with some moderate delays in only a few locations as alternative solutions are developed. Service RR Moderate Board Reporting Once detected, it is moved from resurfacing to another treatment type which ensures the material remains in-situ. We test all roads / footways in advance of our Roads Capital programme. (20) Implementation of Local Heat and Energy Efficiency Strategy Key risk is reputational damage if the Council does not deliver on their Local Heat and Energy Efficiency Strategy and Local Heat and Energy Efficiency Delivery Plan. Both Strategy and Delivery Plan have been published. Work has commenced on the Delivery Plan. Project RR Moderate Board Reporting The Scottish Parliament passed the Local Heat and Energy Efficiency Strategies (Scotland) Order in May 2022. The LHEES Order places a duty on local authorities to prepare, publish and update a Local Heat and Energy Efficiency Strategy and Delivery Plan. (21) Collection Management / Routing Software for Waste and Recycling Service The Service is looking to improve performance and maximise efficiencies by procuring and implementing a new Waste & Recycling Management/Routing system. This will assist in the setup and day-to-day management of the waste and recycling collection service. There is a risk that during the implementation process the service to customers may fluctuate and they are not kept fully informed. Project RR Moderate Project Board A Project team is being assembled, with cross-service representation to ensure the effective procurement and implementation of the new Waste and Recycling Management System. The project team will be responsible for the planning and implementation of a comprehensive communication strategy at each stage of the project. The service will liaise with colleagues from Customer Services Unit to share information and ensure this is available to customers timeously. Page 117 of 192
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36 | P a g e Risk (Cause and effect) Risk Capture Service RR Project RR H&S PLAN Evaluation Low Moderate High Very High Means of Monitoring Board Risk-Reporting SIP Project Board H&S Planning Group Notes (22) Risk that waste and recycling contractors are unable to accept waste materials Service RR Moderate Board Risk-Reporting Arrangements are in place to address this risk through our procurement process. Work is on-going to explore the opportunities which may exist to develop a Waste Transfer Station for handling this material. (23) Recruiting suitable professional staff into key posts The Technical Unit has experienced major issues in recruiting suitable professional staff into key posts and this shows no sign of improving in the near future. This is likely to be exacerbated in future years due to the age profile of the senior officers with a large number nearing retirement. Vocational trainee placements were put in place for 2024/25 and this will continue into 2025/26. This is hoped that future qualified students will consider Renfrewshire Council as an employer of choice for future vacancies. Service RR Moderate Board Risk-Reporting Technical Unit officers are liaising with Glasgow Caledonian University to advertise for vocational trainees for 2026. Finance and Resources Services (24) Administration of elections While there are no planned electoral events until 2026, election preparedness is important on an ongoing basis to respond to snap elections or by-elections. If we are not prepared and do not monitor on an ongoing basis the supply chain relied upon for various elements of the then there is a risk that we will struggle to deliver the administration of an event with significant reputational impact. Service RR Moderate Board Risk-Reporting The council has a highly experienced group of staff that can be relied upon to lead and deliver on the governance, logistics, risk and contingency workstreams required to deliver an electoral event with integrity. There is also ongoing monitoring of supply chain, such as for printing and distribution of postal votes, ballots papers, availability of electronic voting equipment etc. Page 118 of 192
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37 | P a g e Appendix 4: Business-as-Usual Risks The council has 12 areas of risk monitored via BaURAM © Renfrewshire Council. Each Head of Service (and other officers who report directly to a Service Director), undertake an annual self-assessment against a set of questions for each risk and indicate what level of assurance they can provide in relation to how they and their teams perform in these areas. The image below shows the system output for 2024/25, and this compares favourably with the 2023/24 outputs. All modules show an improved position. The CRMG monitors a performance target of 95% module responses providing reasonable or substantial assurance. The KPI for the year is 97%. The most improved module this year, by way of a reduction in the number of limited responses was the health, safety and managing adverse events module (reducing from 4 limiteds to 1). It should be noted that the corporate risk function reports here on system outputs, whereas the Interim Chief Auditor will report separately on the quality of responses and levels of assurance, in discussion with individual Directors regarding the annual assurance statement A reminder of what the modules cover is provided overleaf. 12 Page 119 of 192
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38 | P a g e While these are the council’s business-as-usual risks, where there is recognised need for specific corporate action in any of these aspects of risk, these are escalated from time to time to the corporate risk register. An example of this is nos. 2 and 7 below. Aspects of these risks are reflected not only within the risk assurance model but are also reflected in the corporate risk register. BAU RISK AREA ENCOMPASSING BAU RISK AREA ENCOMPASSING 1. Community & public safety Child and adult protection Serious and organised crime (external) 2. Asset management Statutory compliance Arrangements for void properties Fleet and other infrastructure ICT hardware and software assets and responsibilities 3. People wellbeing & development Staff health and wellbeing Training and development Corporate and local induction 4. Information handling GDPR compliance Information asset management Information security Records management 5. Health, safety & managing adverse events Staff incident recording RIDDOR arrangements Incident monitoring and trends analysis 6. Programme and project management Governance Compliance with industry standards/ adopted methods 7. Organisation resilience Business continuity: - Staffing resource - ICT and/ or power outages - Facility issue - Cyber security 8. Partnership management Partnership registers Agreements Liabilities 9. Financial control and governance Authorities and delegation Budgeting and accounting Conflict and whistleblowing Insider threat and crime Counter fraud 10. Service planning and performance monitoring Customer engagement Public/ stakeholder engagement KPI trends analysis Links to risk management and service improvement 11. Procurement and contract management Standing orders Roles and responsibilities Monitoring & Performance Mgt 12. Complaints, comments and claims handling Compliance Trends analysis Links to service improvement [Item End] Page 120 of 192
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1 ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19th May 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Records Management Plan Update ___________________________________________________________________ 1 Summary The Council provides the Keeper of the Records of Scotland (“the Keeper”) with an annual update on progress made towards our Records Management Plan (“RMP”). The update is referred to as a Progress Update Review (“PUR”). The Council received our latest PUR invitation on 08 August 2024 and provided our response on 29 November 2024. We received a draft PUR response from The Keeper’s Assessment Team on 16th April 2025. ___________________________________________________________________ 2 Recommendations It is recommended that the Board: • Note the progress of the Council Records Management Plan. ___________________________________________________________________ 3 Background Item 8 Page 121 of 192
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2
3.1 In March 2016 the Council submitted its original RMP in compliance
with the Public Records (Scotland) Act 2011 to the Keeper and
conditional agreement from the Keeper was received on 16 August
2016. This meant that the Keeper had fully accepted 9 out of the 14
elements of the RMP with the remaining 5 elements classed as Amber
being on an "Improvement Route”.
3.2 Following annual PURs, 4 of the 5 'amber' elements were improved to
green. The remaining one Amber element was therefore: Element 4 -
Business Classification Scheme (“BCS”). A BCS represents the
business activities of the Council in a hierarchical way, structured by
function. The BCS should be used as a tool to assist with the
structuring of information created and used by the Council.
3.3 A policy and guidance document outlining the classification(s) relevant
to each function of the Council is visible on the Council's intranet page.
The Records Management Officer ("RMO") has been working with
representatives in each service area to implement the scheme in the
structuring of Council information.
3.4 The Council’s Records Retention Schedule has been improved to
categorise entries in line with the Council’s BCS.
3.5 Further work to implement the BCS on legacy shared area network
drives, SharePoint sites, and line of business systems is ongoing. This
involves a tidying up of the information stored on these areas, ensuring
folder structures are consistent with the hierarchical structure
represented in the BCS, to aid the efficiency and functionality of the
records used by Council employees.
3.6 The Keeper’s Assessment Team has now provided a response to the
2024 PUR submission where we have advised her of the above-
mentioned steps towards the Business Classification Element, as well
as provided updates on Element 2 (Records Manager) and Element 3
(Policy) and Element 5 (Retention Schedule).
3.7 The Assessment Team have advised that the way the Council apply
records management, having devolved responsibility to Council
services, and ensuring the high-level visibility of the scheme via intranet
pages, is good practice and commendable.
3.8 The Assessment Team have also recognised the time needed to
implement a structure, advising that they look forward to updates and
that the Council's 'amber' grading in this element will remain throughout
this transition.
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3 3.9 The Council advised the Keeper of a routine update to the Records Management Policy. As laid out in the Council's RMP and in the PRSA legislation, regular updates to the policy are required. The Policy was approved at the 2024 Finance and Resources Customer Service Board and is on the intranet for visibility for all staff. 3.10 The Assessment Team considered this update a 'welcome' assurance that the process laid out was still being followed. 3.11 The Council provided an update that the Corporate Retention Schedule had moved from a PDF document to a SharePoint site to reflect the need for the document to be 'dynamic' and able to change to reflect the business needs, as and when required. Retention entries are kept under regular review by the services and service-level representatives attend the quarterly meetings of the Records Management Working Group. 3.12 The Keeper commended Renfrewshire Council and Licensing Board's recognition and understanding of the benefits to having a live document. 3.13 The Council also provided an update on the Information Governance team structure to the Keeper’s Assessment Team in the 2023 PUR. The update advised that the creation of the RMO to replace the Records Manager post was designed with records management compliance in mind. The restructure allows for a greater focus on records management by separating the responsibility for records management from the coordination of information requests. 3.14 The Assessment Team advised that this restructure was ‘welcome’ and considered an improvement for records management at the Council. 3.15 The Council is on track to progress its one remaining ‘amber’ element and the continued participation in the PUR process allows for the Council to have regular interactions with the Keeper to ensure it is progressing in implementing the best practice of records management. Implications of the Report 1. Financial – none 2. HR & Organisational Development – none Page 123 of 192
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4 3. Community Planning – Implementing good records management principles within the organisation supports the Council to deliver on its key objectives and priorities. 4. Legal – Implementation of the RMP is a key element in complying with the Public Records (Scotland) Act 2011. 5. Property/Assets – none 6. Information Technology – none 7. Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report as it provides an update on the Council’s Records Management Plan and is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – none 9. Procurement – none 10. Risk – none 11. Privacy Impact - Effective records management can only have a positive impact on people’s privacy whereby records are only retained for as long as necessary and are kept securely. 12. Climate Risk - none 13. Children’s Rights – none 12. Cosla Policy Position - none _________________________________________________________ List of Background Papers (a) none ___________________________________________________________________ Page 124 of 192
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5 Author: Stacey Anderson, Records Management Officer, tel: 0141 487 1085, Stacey.Anderson@renfrewshire.gov.uk. Page 125 of 192
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To: Audit, Risk and Scrutiny Board On: 19 May 2025 Report by: Chief Executive Heading: Local Government Benchmarking Framework 2023/24 1. Summary 1.1 The Local Government Benchmarking Framework (LGBF) is a high-level benchmarking tool which allows local authorities to compare their performance across a wide range of key service areas such as education, housing, and adult social care. Renfrewshire Council has participated in the development of the LGBF since its inception in 2010 and the framework has expanded to comprise 108 indicators. The purpose of the Framework is to support evidence-based comparisons and encourage shared learning and improvement across local authorities. A report on performance against the indicators is provided to the Audit, Risk and Scrutiny Board each year following publication of the LGBF Annual Report by the Improvement Service. This year’s national report was published in March 2025. 1.2 The Improvement Service releases LGBF data on a monthly basis, as it becomes available. This report therefore includes all 2023/24 data released up to and including March 2025, 88 indicators in total. The tables in Appendix 1 provide data for 2021/22, 2022/23 and, where available, 2023/24. These tables also include a comparison with the national average and with the relevant family group of local authorities (i.e. those with similar characteristics). 1.3 The Improvement Service provides an online dashboard which allows users to view and interact with the data. It allows comparison between a council and the national average, and with the family group. Previously, the IS ranked each council and published these rankings, but have moved away from this practice. Whilst rankings can be helpful in understanding how similar councils perform, they do not take context into account (for example, local policy priorities, or council structures). They also infer particular Item 9 Page 127 of 192
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judgements, such as cheapest equalling best. Our local policy decisions can therefore impact on how our performance appears relative to others. 1.4 In order that elected members can have some insight into improvement relative to other councils, officers have calculated rankings and included in the data in Appendix 1. It should be noted that information is not published in this format through the LGBF portal. It should also be noted that it is possible for performance to improve in real terms but for this not to be reflected in rankings because other councils have also improved. 1.5 Of the 88 indicators with data for 2023/24, Renfrewshire has performed as follows in terms of the LGBF: o 46 indicators have improved or sustained performance; o 42 indicators have falling performance; o 43 indicators maintained or improved their ranking; o 45 indicators have fallen in the rankings; o 23 indicators are ranked in the top 8 best performing councils for that measure and 50% of indicators are in the top half of councils; o 23 indicators are ranked in the 8 lowest performing councils for that measure; 1.6 Renfrewshire Council actively contributes to national discussions and learning on the Local Government Benchmarking Framework and uses it to identify opportunities to explore areas of challenge and of best practice. 1.7 The Council also publishes its statutory Public Performance Reporting document – How are we doing? - on the Council’s website. Performance information gathered through the LGBF is included as part of the report which allows our residents to understand how the Council is performing, relative to other Councils. Services also publish performance information regularly through operational reports and updates on Service Improvement Plans and the Council Plan. 2. Recommendations 2.1 It is recommended that the Audit, Risk and Scrutiny Board • notes the contents of the report; • notes that an update on the LGBF will be provided to this Board in November 2025. 3. Background 3.1 All Scottish local authorities participate in the Local Government Benchmarking Framework (LGBF), which allows councils to compare their performance across a suite of indicators, including costs and performance of key council services, and levels of public satisfaction. Whilst there are always different views on the nature and calculation of specific indicators, the framework provides a tool for the Council to consider its performance in relation to delivering Best Value, as well as a platform for learning and sharing good practice. It is used in conjunction with other benchmarking tools, data and Page 128 of 192
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information that Council services use to assess performance, such as service key performance indicators, service improvement outturn reports, national and local surveys, inspections, and audits. 3.2 There are currently 108 indicators in the Framework, which cover the majority of council services across ten categories: • Children’s services; • Corporate services; • Adult social care; • Culture and leisure services; • Environmental services; • Housing services; • Corporate asset management; • Economic development; • Financial sustainability; • Tackling climate change. 3.3 In 2023, the Improvement Service moved to monthly data releases, and this report covers all data released up to and including the March 2025 dataset, which included 2023/24 data for 88 indicators. 3.4 The LGBF provides a useful means of comparing relative performance across all Scottish councils but like all performance information, it should be used with caution, with due consideration given to local priorities and investment decisions, and differences in council structures. It does not represent the full range of council service delivery. 3.5 The Accounts Commission have published a new Statutory Performance Indicator (SPI) Direction which covers three reporting years starting from 2025/26. The updated direction has an increased focus on the use of LGBF indicators and more frequent reporting. Renfrewshire Council will therefore move to six monthly updates to elected members on the LGBF indicators, taking effect from this current financial year. 4. National Context 4.1 Each year, the Improvement Service publishes a national report on the LGBF indicators, providing general commentary on performance and identifying key themes. The 2023/24 report was published in March 2025 and notes the “extraordinary effort and achievements delivered across local government against unprecedented financial, workforce and demand pressures”. 4.2 The Improvement Service identify that performance improvement is slowing for all local authorities, though there is local variation in the depth and severity, and in the service areas most impacted. They believe that local authorities are facing difficult decisions, and that managing funding and workforce pressures have affected the capacity of local authorities to deliver sustained good performance alongside efficiency improvements. Page 129 of 192
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4.3 The national report highlights funding pressures arising from real term decreases in funding, and note the view that local authorities are being directed to deliver more to meet national policy goals, and have less discretion to deliver on local priorities. The funding challenge is framed in the context of budget increases in other sectors; the Improvement Service have calculated that Scottish Government budgets have grown by 45% since 2013/14 whilst local government budgets have remained static. The report also notes that the budget for health since 2013/14 has grown by 20% but declined by 0.9% for local government over the same period. Demand for services continues to grow, with factors such as an ageing population, increased cost of living, and an increase in additional support needs within schools contributing to this. 4.4 The report states that workforce pressures are also contributing to a slowing of performance. They find that increased demand, challenges with recruitment and retention, and a skills gap in some areas are all impacting on organisational capacity and resilience. Their data shows that staff absences are an issue for many councils, and this is driven in part by increases in absence due to stress, fatigue or mental health challenges. The report also points to significant turnover in senior leadership as a challenge. The Improvement Service believe the funding pressures will continue and that councils may find it difficult to sustain and reform essential services whilst managing workforce shortages. 4.5 The chapter on adult social care reports on the challenges arising from growing demand and widespread staffing shortages in the sector. It notes that modelling suggests that gross spending on adult social care would have had to risen by 144% since 2010/11 to keep pace with growing demands; the actual increase in spend has been 28.7%. The report states: “it is important to recognise that service expectations have been raised amongst our communities, at a time when our ability to deliver is under greater pressure than ever, and demand is accelerating faster than ever”. 4.6 On education, the report notes the signs of recovery from the pandemic, with higher levels of senior phase attainment compared with pre-2020, a narrower poverty attainment gap in literacy, and a narrowing of the poverty gap in terms of positive destinations. However, the poverty attainment gap for numeracy is smaller but has not recovered to pre-pandemic levels yet, and pupil attendance continues to be at a lower level than pre-pandemic. 4.7 The report identifies that the higher cost of living continues to impact on local government performance, with the Improvement Service highlighting that rent arrears are at an almost all-time high, falling collection rates for Council Tax, and considerable growth in spend on Discretionary Housing Payments. 4.8 In concluding, the national report finds that the slowing rate of improvement is to be expected, adding that 68% of indicators still show improvement on the base year when the LGBF was first reported. They find that the trend of declining satisfaction with council services are at least partly arising from public expectations not reducing despite increased demand and reduced resources for local government. The Improvement Service believes it Page 130 of 192
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is “vital” for local government to work closely with communities to communicate these pressures and work with them to shape local priorities. 5. Overview of Renfrewshire’s Performance 5.1 This section provides an overview of Renfrewshire’s LGBF performance in relation service categories. Appendix 1 provides the Council’s data, ranked position, the Scottish average, and the family group range for all the indicators; for ease of use, indicators in the top quarter of performance are highlighted in pale green and those in the bottom quarter in pale red. Appendix 2 includes a list of those indicators in the top quarter and bottom quarter in terms of ranked performance of the 32 local authorities. 5.2 Data is available for 2023/24 for 88 indicators to date; of these, 46 have sustained or improved actual performance compared with last year and 42 show declining performance. These totals include the cost measures where increased cost is presented as declining performance, and more information on those cost measures is provided in paragraph 5.6 below. 5.3 Renfrewshire Council ranks in the top 8 councils for 23 indicators, and in the bottom 8 for 23 indicators. Analysis indicates a strong improvement profile; Renfrewshire is in the top two quartiles for performance, cost and financial indicators in terms of relative performance over time. Around two-thirds of indicators have improved since the base year. Areas where we have strong relative performance include pupil attainment at levels 5 and 6, quality of roads, hospital readmissions, the minimising of delayed discharge from hospital, time taken for non-emergency housing repairs, and financial sustainability measures. Areas where we rank in the bottom quarter include the poverty-related literacy attainment gap, Council Tax collection rates, adults supported at home feeling they are supported to live as independently as possible, satisfaction rates for cultural and leisure services, procurement spend with local businesses, and the average time taken to process business and industry planning applications. 5.4 The LGBF has now been in place since 2010, and Figure 1 below shows that Renfrewshire has seen improvement in almost three-quarters of performance indicators since the collection started. Figure 2 shows the percentage of indicators which have improved on the previous year. This slowing or levelling off of performance improvement is a feature across local authorities in Scotland and is reflective of the challenges outlined by the Improvement Service in the national report. Page 131 of 192
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Figure 1: Performance indicators Change on base year (Renfrewshire) Figure 2: Performance indicators change on most recent year (Renfrewshire) 5.5 More detail on specific indicators is covered below under each LGBF category. Understanding Cost Indicators and Performance 5.6 The approach taken by the Improvement Service in relation to LGBF rankings on cost measures (of which there are 18) is to consider ‘cheapest’ as ‘best performing’. As such, any consideration of relative and absolute performance must take account of local policy decisions which target investment in priority areas, such as the investment in roads in Renfrewshire. Similarly, differences in the structure of every council can also account for variation; an example of this would be indicator CORP1 which shows support services as a percentage of expenditure. In Renfrewshire, the model of centralised support means that more staffing costs are captured in that figure than in councils where each operational service has its own support staff. It should be noted that cost measures only present part of an assessment of performance and alone, they should not be perceived to equate to quality. 5.7 The two figures below show the rate of improvement for Renfrewshire for cost indicators, where green represents lower costs and red increasing costs. Figure 3: Cost indicators – change on base year Figure 4: Cost indicators – change on most recent year 5.8 Investment in roads has been a priority for the Council for several years and this is demonstrated by the cost per kilometre of road; although this has dropped in 2023/24 it remains much higher than the national average and represents a clear policy decision to Page 132 of 192
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spend on roads. The impact of this investment on the quality of roads is discussed later in this report. 5.9 Similarly, the cost of parks and open spaces per 1,000 population was calculated as £39,487 in 2023/24 compared with a Scottish average of £23,338. Renfrewshire Council has taken consistent decisions to invest in play park infrastructure and has worked proactively to renew existing play parks, create new play parks and undertake initiatives such as refurbishing local sports facilities such as the tennis courts in Johnstone. 5.10 The indicator ENV5 Cost of Trading Standards and Environmental Health per 1000 population also includes the cost of money advice services, which are not provided by all local authorities. In Renfrewshire, Trading Standards and Environmental Health costs also appear higher than other areas because they include other service costs including the Wardens Service and CCTV. Through the Fairer Renfrewshire programme, the Council has provided significant funding to support the provision of internal and external money advice and support in light of local deprivation levels, the pandemic and the ongoing cost of living crisis. Understanding Customer Satisfaction Measures 5.11 The LGBF reports on seven customer satisfaction measures, and uses the Scottish Household Survey (SHS) as its source for these indicators. Because of very low sample sizes once the survey is broken down to local authority level, the measures use an average over the most recent three year period; the 2023/24 figures are therefore an average of results from 2021/22, 2022/23 and 2023/24. In this year’s national report, the Improvement Service highlight one of the challenges of the satisfaction measures, namely that they are based on a general sample of the population rather than only those who use the services they are asked to comment on. The report notes that satisfaction ratings from those who actually use services are typically much higher than the general measures. As the respondents are different each time, it is not possible to state whether a person’s perception improves or worsens over time. 5.12 As well as the small sample size per local authority, and the use of value judgements rather than measurable quality, there are two further caveats to be considered when using SHS data. The first is that the LGBF uses the figures for those who actively express satisfaction, rather than those actively expressing dissatisfaction – this is relevant because many people state that they have no view. The second is that SHS statistics are provided with a note of the sampling error, which tells users how much margin of error there is with the figure depending on the estimate and the sample size. For small sample sizes, that margin of error can make a considerable difference. Page 133 of 192
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5.13 Figures 5 and 6 below show how levels of customer satisfaction, as measured by the SHS, have shifted. Figure 5: Satisfaction indicators – change on base year Figure 6: Satisfaction indicators – change on most recent year 5.14 In 2025, the Council will be carrying out its own resident survey to gather a greater volume of local data about many aspects of council service delivery and performance, to be followed up with focus group research. Our own research will build upon the basis that the SHS provides but allow us to get a broader and deeper understanding of our customer needs and local issues, with the focus groups giving opportunities for a deep dive into specifics which is difficult to achieve from a survey alone. Children’s Services 5.15 Recent trends in overall attainment are difficult to determine, given the need for an Alternative Certification Model during and immediately after the pandemic, which means that attainment was measured differently in those years. The standard approach to assessment resumed in 2022/23 and so attainment for 2023/24 can be compared to the previous year and to the pre-pandemic levels. The overall tariff score for the senior phase in Renfrewshire fell in 2023/24 but remained above the Scottish average. When considered by SIMD quintile, tariff scores rose for the those living in the most deprived (SIMD1) and least deprived (SIMD5) areas. In primary education, there have been increases in the percentage of pupils (measured at P1, P4 and P7) achieving expected levels in literacy and in numeracy, and for both, Renfrewshire outperforms the national average. 5.16 There has been a fall in the poverty-related attainment gap for literacy at primary school level – from a gap of 26.4 percentage points to 23.3 in 2023/24. This is higher than the national gap of 20.2 percentage points and the widest gap within our family group. In numeracy, the gap remained the same between 2022/23 and 2023/24 at 17.9 percentage points, closer to the national average of 17.4. 5.17 As is noted in the national report from the Improvement Service, attendance levels in school are yet to recover to pre-pandemic levels. In Renfrewshire, attendance increased slightly from 90.2% to 90.3% in 2023/24 and this is in line with the national average. Attendance has been improving in the primary sector but not in the secondary sector. Page 134 of 192
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Adult Social Care 5.18 The percentage of people aged 65 and over who have long term care needs and receive personal care at home has remained stable, despite growing demands. In 2023/24, 63.2% were supported at home in this way. 5.19 Renfrewshire remains high-performing in relation to minimising delayed discharges from hospital, with the lowest rate in the country. Between 2022/23 and 2023/24, the number of days per 1,000 population aged 75 and over fell from 295.92 to 138.74 resulting in our ranked position moving from third to first; the Scottish average is 846.3 days. Renfrewshire is also performing well in reducing the rate of hospital readmissions and ranks eighth overall and first in our family group of similar local authorities. Strong joint working remains a key factor in performance. 5.20 The proportion of care services graded Good (4) or better by the Care Inspectorate has fallen from 78% to 75.4%, moving Renfrewshire into the bottom 8 in terms of performance. It must be noted that this refers to all registered care services in Renfrewshire and not just those provided directly by the Council or HSPC, or those commissioned by the Council or HSPC. No HSPC-provided services have gradings below Good; four are graded Very Good and three are graded Excellent. Corporate Services and Corporate Assets 5.21 As noted above, the national report by the Improvement Service highlights how the cost of living is impacting on council services. We continue to receive a high volume of applications for support; in 2023/24, Renfrewshire Council dealt with more than 9,000 Crisis Grant applications, and 85.75% of these cases were given a decision within one working day. This compares with a Scottish average of 94%. Performance has improved relative to other councils, with Renfrewshire ranking 17th this year, compared with 28th last year. Our internal target for processing Crisis Grants is 2 days, and this is consistently achieved. The Council also processed over 2,000 Community Care Grant applications with 86.25% of applications receiving a decision within 15 days, and this compares with a Scottish average of 83.25%. LGBF indicators also show the extent to which local authorities are supplementing monies allocated for the Social Welfare Fund (SWF) and for Discretionary Housing Payments (DHP); Renfrewshire’s spend on SWF was 145% of the allocation, and for DHP was 119% of the allocation, the latter being the highest proportion in Scotland. 5.22 There has been a slight fall in the level of Council tax collected as a percentage of the amount due – from 95.3% in 2022/23 to 94% in 2023/24. In the previous year, a cost of Page 135 of 192
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living award of £150 per household was made on behalf of the Scottish Government in respect of over 62,000 households, and this was credited directly to Council Tax accounts, increasing the collection rate. Ongoing cost of living challenges are impacting on performance and are likely to continue to do so. The national average collection rate is 95.5%. 5.23 As well as support such as that provided by Business Gateway, the Council supports local suppliers is through the prompt payment of invoices. In 2023/24, the Council processed 241,143 invoices, and 97% were paid within 30 days of receipt – the third highest rate of all local authorities. This is a considerable improvement in both performance and ranking compared with the previous year. The reduction in manual processing which will be delivered through the Council’s Purchase to Pay programme should contribute to sustained strong performance in this area. 5.24 The gender pay gap in Renfrewshire has narrowed once more in 2023/24 and is 0.44% compared with 0.5% in 2022/23 and 2.29% in 2021/22. In addition to employee turnover the key reasons for the reduction is the impact of recent changes to the Council’s pay and grading model for local government employees and on-going service redesigns under the Council’s transformational plans. There has been a slight increase in the percentage of the highest paid employees who are women, which is 57.59% in 2023/24. This is lower than the Scottish average and not yet reflective of the workforce as a whole, of whom around 75% are women. 5.25 Staff sickness absence remains challenging for Scottish councils. This is an area where there have been some improvements for Renfrewshire in 2023/24, with teacher absence falling from 7.4 days to 7.23 days. That improvement is considerable relative to other councils, resulting in our ranked position moving from 25th to 13th; Renfrewshire also outperforms the national average of 7.62. Absence levels for non-teaching staff have also improved slightly from 15.2 days to 14.7 days and the Council is no longer in the bottom quarter for performance. The implementation of the new Managing Absence Policy and the suite of policies and other supports targeting staff wellbeing are contributing factors to the improved position. 5.26 The percentage of operational building floor space which is in a satisfactory condition fell from 93.16% in 2022/23 to 88.94% in 2023/24. This information is based on property surveys and there has been an increase in these as a result of the Council’s ongoing strategic property review, including for some buildings which had not been surveyed for a number of years. Culture and Leisure Services 5.27 There are four cost measures and four satisfaction measures for Culture and Leisure services, and none specifically tracking performance. As noted earlier in the report, higher costs can represent investment such as the case of our parks and open spaces. Satisfaction levels as reported through the Scottish Household Survey show a declining Page 136 of 192
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trend, and it is intended that our own customer research will provide a clearer understanding of these trends. Environmental Services 5.28 The continued investment in Renfrewshire’s roads is evident in sustained good performance in relation to their condition, which is measured in the LGBF according to the percentage of roads requiring maintenance treatment. Renfrewshire’s performance exceeds the national average for all four classes of road, and family group analysis shows that we are the best performing council in our group for Class A and B roads, and the second best in group for Class C and unclassified roads. There was a particular focus on investment in Class A roads during 2023/24. 5.29 The Street Cleanliness score, as measured by 3 random samples across the year, declined in 2023/24 to 88.5% deemed ‘Acceptably Clean’ compared with 93.3% in the previous year. This compares with a Scottish average of 92.1%. This moved our ranked position from 10th to 26th. As well as a planned maintenance programme, a responsive service is offered to deal with any issues. Officers are working proactively with elected members, members of the public and stakeholders to respond to feedback in relation to street cleansing. 5.30 The proportion of waste being recycled has fallen from 54% in 2022/23 to 44% in 2023/24, though it remains above the Scottish average of 43.5%. This is in part due to changes in how biodegradable waste is treated which allows some of it to be classed as recycling after processing. There has been no increase in landfill use as the non-recycled material is sent for energy recovery instead. In 2024, the Council was successful in securing funding from the Recycling Improvement Fund which will enhance our recycling services to residents, focused on the recycling of food waste and on enhancing provision at flatted and difficult to reach properties. Economic Development 5.31 Employability services continue to perform well in terms of supporting people into paid work and shows a steady upward trend in recent years (specific targeted funding in 2021/22 led to a large increase but should not be considered as part of that longer-term trend). The percentage of people supported into work in 2023/24 was 19.6, compared with 18.47% in 2023/24, and a national average of 12.08%. 5.32 There has also been an increase in the number of business start-ups supported by Business Gateway. There were 16.3 businesses per 10,000 population, compared with 11.6 the previous year; this was the twelfth highest rate in Scotland. Renfrewshire typically has a lower proportion of self-employed people than other council areas, which has been attributed to a buoyant job market making the risk of self-employment less appealing. 5.33 There has been a further increase in the proportion of Council procurement spend with local suppliers, rising from 19.3% in 2022/23 to 20.15% in 2023/24. This translates to £56.4 million of Renfrewshire Council direct spend on locally based businesses. A further 59.38% Page 137 of 192
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of our spend was with businesses in bordering local authorities (Glasgow City, Inverclyde, North Ayrshire, East Renfrewshire and West Dunbartonshire. Changes to our standing orders in 2023, an ongoing programme of supplier events and recent market engagement with potential suppliers are all intended to increase interest from local suppliers in bidding for Council contracts. Increasing direct spend with local businesses is also a key element of the Council’s Community Wealth-Building work. 5.34 Town vacancy rates have decreased slightly from 18% to 17.7%. The figure is impacted by the deliberate strategy to leave units in the Paisley Centre vacant ahead of its redevelopment. If the Paisley Centre were excluded from the calculation, the vacancy rate would be 14.8%. That figure is still higher than the national average of 12.3%. 5.35 The average time to process business and industry planning applications increased for the second year in a row, from 12.94 weeks in 2022/23 to 13.55 weeks in 2023/24, This is above the national average and moves our ranked position from 20th to 26th. A key factor is the obligation to seek consultation responses from external holders, and the time then taken for these, particularly in relation to contaminated land issues. Housing 5.36 There has been a slight fall in the level of rent arrears, as measured as a percentage of rents due, and this runs counter to the national trend of steady increases in the level of arrears. In 2023/24, arrears amounted to 8.32% of rents due, compared with 8.59% the previous year and with 9.5% nationally. The Council’s Tenant Support Fund, introduced in 2023 to provide assistance to some tenants in specific circumstances, may be contributing to a reduction in arrears. There may also be a link between falling arrears and the Council’s ongoing topping-up of the Discretionary Housing Payment fund. 5.37 The time taken to complete non-emergency repairs continues to be an area of strong performance, at 7.9 days against a Scottish average of 10 days. The service also continues to reduce the proportion of rent income lost to voids which is currently 1.5%, compared with 1.9% and 2.03% in the previous two years. 5.38 The percentage of council dwellings meeting the Scottish Housing Standard is 68% and remains behind the average. Changes to these standards to include compliance with the 5- yearly Electrical Installation Condition Report (EICR) and the new smoke and heat detector standard have impacted our performance. Additional resource has been put in place to accelerate compliance and we estimate that the 2024/25 figure will be around 80%. Financial Sustainability 5.39 Renfrewshire’s performance against these measures remains strong; three of the five indicators are ranked in the top quarter and four showed improvement in 2023/24, Performance compares favourably both with the national average and with our family group. Tackling Climate Change Page 138 of 192
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5.40 Three additional climate change indicators were added to the LGBF dataset in 2022/23, covering CO2 emissions from transport, electricity and gas. Data for 2022/23 has recently become available and shows a reduction in total emissions in Renfrewshire and in emissions within the scope of the local authority. 5.41 The 2022/23 data shows that both area-wide emissions and those which are specifically in the scope of Council influence continue to reduce. Emissions from transport increased in 2022/23 and this had been anticipated following the lifting of all remaining pandemic restrictions and the consequent increase in travel. However, emissions in 2022/23 from transport were still lower than pre-pandemic levels and the Scottish average. Gas emissions also increased in 2022/23; as with transport an element of this was related to people returning to office buildings after pandemic restrictions. Electricity emissions dropped, and at 30.3 tonnes per 1,000 population were well below the Scottish average of 43.7 tonnes. Emissions from electricity are almost half of what they were when this data was first reported in 2017/18 (emissions of 57.6 tonnes per 1,000 population). 6. Monitoring and reporting of LGBF 6.1 The performance of the LGBF indicators will continue to be monitored by the Corporate Management Team, through service improvement planning processes and through further benchmarking activities to develop and share best practice. A report on the LGBF will continue to be submitted to the Audit, Risk and Scrutiny Board annually to review performance and monitor progress. 6.2 Officers will shortly establish a new Performance Group to provide an additional focus on performance at service and council level, measured by local indicators as well as benchmarking indicators. The Group will undertake regular deep-dives to promote a council-wide understanding of what is driving performance change and how improvement can be supported where necessary. All services will be represented on the Group. 6.3 Renfrewshire Council publishes its statutory Public Performance Reporting document on the Council’s website in March each year. Relevant performance information gathered through the LGBF is included as part of the report. 6.4 For 2025/26 and beyond, the Council will increase the level of reporting on the LGBF and produce a report every six months, covering any new data released since the previous report. As well as a report to members, the LGBF dashboard on the Council’s website will be updated. Implications of this report 1. Financial – No direct implications though the report includes cost-based measures. Page 139 of 192
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2. HR and Organisational Development – no direct implications from the report but there are several indicators relating to staff. 3. Community/Council Planning – the indicators contribute to our understanding of performance in relation to Community Plan and Council Plan themes. 4. Legal – none 5. Property/Assets – no direct implications but the report references indicators relating to council assets. 6. Information Technology – n/a 7. Equality & Human Rights – The recommendations contained within this report have not been assessed in relation to their impact on equalities and human rights. The report contains information about past performance and is for noting. 8. Health and Safety – none 9. Procurement – no direct implication but the report includes details of an indicator relating to the Council’s procurement spend. 10. Risk – none 11. Privacy Impact – none 12. COSLA Policy Position – the LGBF framework represents a joint commitment by SOLACE (Scotland) and COSLA to develop better measurement and comparable data to target resources and drive improvements. 13. Children’s Rights – no direct implications from the recommendations but the report contains information about performance indicators relating to services for children and young people. 14. Climate Risk – no direct implications but the report includes measures relating to CO2 emissions. Author: Lisa Fingland, Policy Manager, lisa.fingland@renfrewshire.gov.uk Page 140 of 192
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Appendix 1: Renfrewshire’s 2023/24 data Indicators are grouped by service category. The tables show Renfrewshire’s position for the last three years, the Scottish average, and the Family Group range and ranking. Indicators which are in the top eight councils for performance are highlighted in pale green and indicators in the bottom eight councils are highlighted in pale red. Family Groups allow comparisons and encourage discussions between similar councils. Renfrewshire is currently in the following family groups: • Family Group 3 for population type, which includes Children Services, Adult Social Care and Housing Services – Clackmannanshire, Dumfries & Galloway, Falkirk, Fife, Renfrewshire, South Ayrshire, South Lanarkshire, and West Lothian. • Family Group 3 for area, which includes Corporate Services, Culture and Leisure, Environmental Services, Corporate Assets, Economic Development, Financial Sustainability, Tackling Climate Change – Angus, Clackmannanshire, East Renfrewshire, Inverclyde, Midlothian, Renfrewshire, South Lanarkshire and West Lothian. Children’s Services 20 of the 32 indicators have 2023/24 data available. Eight are ranked in the top quarter, two are ranked in the bottom quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 CHN1 Cost Per Primary School Pupil 8 13 9 £6,059.00 £7,063.67 £6,910.14 £7,182.91 £6,732 (East Renfrewshire) to £7,529 (Midlothian) 3 CHN2 Cost per Secondary School Pupil 1 3 5 £7,040.00 £8,222.93 £8,362.30 £8,935.70 £8,362 (Renfrewshire) to £9,284 (Clackmannanshire) 1 CHN3 Cost per Pre-School Education Registration 9 6 15 £9,578.00 £10,200.6 7 £11,783.19 £11,630.12 £9,594 (West Lothian) to £13,319 (Clackmannanshire) 4 CHN4 % of Pupils Gaining 5+ Awards at Level 5 6 7 10 74 71 69 66 79% (West Lothian) to 59% (Fife) 4 CHN5 % of Pupils Gaining 5+ Awards at Level 6 5 10 6 44 39 42 39 53% (West Lothian) to 29% (Clackmannanshire) 2 Page 141 of 192
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CHN6 % of Pupils from Deprived Areas Gaining 5+ Awards at Level 5 (SIMD) 6 5 8 57 57 51 50 60% (West Lothian) to 41% (Fife) 3 CHN7 % of Pupils from Deprived Areas Gaining 5+ Awards at Level 6 (SIMD) 5 11 6 27 22 24 23 31% (West Lothian) to 16% (Fife) 2 CHN8a The Gross Cost of "Children Looked After" in Residential Based Services per Child per Week 24 27 n/a £5,472.70 £6,157.69 n/a n/a n/a CHN8b The Gross Cost of "Children Looked After" in a Community Setting per Child per Week 10 7 n/a £380.10 £337.05 n/a n/a n/a CHN9 % of children being looked after in the community 10 9 n/a 91.4 91.7 n/a n/a n/a CHN11 Proportion of Pupils Entering Positive Destinations 8 10 5 96.60% 96.4 97.1 95.7 98.7% (South Ayrshire) to 95.5% (Dumfries and Galloway) 2 CHN12a Overall Average Total Tariff 9 9 10 1037 969.58 945.95 917.53 1,009.78 (West Lothian) to 762.82 (Clackmannanshire) 4 CHN12b Average Total Tariff SIMD quintile 1 7 6 5 743 697 721 661 728 (Falkirk) to 554 (Dumfries & Galloway) 2 CHN12c Average total tariff SIMD quintile 2 12 9 17 870 838 741 762 848 (South Lanarkshire) to 648 (Fife) 4 CHN12d Average total tariff SIMD quintile 3 6 4 14 1055 1005 932 889 1034 (West Lothian) to 834 (Fife) 5 CHN12e Average total tariff SIMD quintile 4 7 8 9 1206 1155 1122 1049 1237 (Falkirk) to 923 (Clackmannanshire) 3 CHN12f Average total tariff SIMD quintile 5 4 12 8 1391 1235 1287 1260 1379 (Falkirk) to 996 (Clackmannanshire) 3 Page 142 of 192
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CHN13a % of P1, P4 and P7 pupils combined achieving expected CFE Level in Literacy 11 13 12 71.9 73.78% 76.19% 73.99% 79.6% (West Lothian) to 71.0% (Dumfries & Galloway) 4 CHN13b % of P1, P4 and P7 pupils combined achieving expected CFE Level in Numeracy 7 8 8 81.4 82.80% 83.72% 80.29% 85.2% (South Ayrshire) to 77.1% (Dumfries & Galloway) 3 CHN14a Literacy Attainment Gap (P1,4,7 Combined) - percentage point gap between the least deprived and most deprived pupils 12 24 24 20.9 0.264pp 0.233pp 0.202pp 0.148pp (Dumfries & Galloway) to 0.233pp (Renfrewshire) 8 CHN14b Numeracy Attainment Gap (P1,4,7 Combined) - percentage point gap between the least deprived and most deprived pupils 17 18 19 18.8 0.179pp 0.179pp 0.174pp 0.145pp (Dumfries & Galloway) to 0.199pp (Fife) 7 CHN17 % of children meeting developmental milestones 29 28 n/a 77.81 79 n/a n/a n/a CHN18 % of funded early years provision which is graded good/better 15 22 23 90.28 90.10% 88.70% 89.80% 96.8% (West Lothian) to 86.3% (Dumfries & Galloway) 7 CHN19a School attendance rate 20 20 18 91.9 90.20% 90.30% 90.30% 91.1% (Clackmannanshire) to 89.6% (Fife) 4 CHN19b School attendance rate (Looked After Children) 24 26 n/a 86.51 82.2 n/a n/a n/a CHN20a School exclusion rate (per 1,000 pupils) 29 31 n/a 20.88 29.33 n/a n/a n/a Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2019/22 2020/23 2021/24 2019/22 2020/23 202/24 Page 143 of 192
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CHN10 % of Adults Satisfied with Local Schools 17 27 31 72% 70% 62% 71.30% 78% (South Ayrshire) to 61.3% (Dumfries and Galloway) 7 Corporate Services Updated data is available for all twelve Corporate Services indicators. Three indicators are ranked in the top quarter, three are ranked in the bottom quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 CORP 1 Support services as a % of total gross expenditure 29 30 30 5.68 5.30% 5.59 4.06 2.85% (Inverclyde) to 5.59% (Renfrewshire) 8 CORP 3b % of the highest paid 5% employees who are women 22 21 20 58.15 56.80% 57.59% 59.80% 70.1% (Angus) to 57.59% (Renfrewshire) 8 CORP 3c The gender pay gap (%) 13 7 11 2.29 0.50% 0.44% 1.74% -0.8% (Angus) to 0.49% (East Renfrewshire) 4 CORP 4 The cost per dwelling of collecting council tax 21 21 24 £8.03 £7.97 £8.00 £5.89 £4.21 (West Lothian) to £13.5 (East Renfrewshire) 5 CORP 6a Sickness absence days per teacher 19 25 13 5.9 7.4 7.23 7.62 5.81 (East Renfrewshire) to 13.24 (Clackmannanshire) 5 CORP 6b Sickness absence days per employee (non-teacher) 21 26 23 13.19 15.2 14.69 13.89 13.19 (Inverclyde) to 19.59 (Clackmannanshire) 6 CORP 7 % of income due from council tax received by the end of the year 21 24 25 95.48 95.30% 94.00% 95.50% 97.5% (East Renfrewshire) to 93.8% (Midlothian) 7 CORP 8 % of invoices sampled that were paid within 30 days 5 19 3 95.5 90.21% 96.70% 93.10% 96.7% (Renfrewshire) to 83.3% (Angus) 1 CORP 9 % of Crisis Grant decisions within 1 day 27 28 17 88.5 83.30% 85.75% 94.00% 99.8% (Inverclyde) to 85.75% (Renfrewshire) 8 CORP 10 % of CCG Grant decisions within 15 days 18 16 18 91.75 90.10% 86.25% 83.25% 100% (Inverclyde) to 85.3% (Angus) 7 Page 144 of 192
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CORP 11 The proportion of SWF Budget Spent 17 14 8 100.81 130% 145% 129% 145% (Renfrewshire) to 99.2% (Inverclyde) 1 CORP 12 Proportion of DHP Funding spent 12 1 1 101.73 106% 119% 101% 119% (Renfrewshire) to 83% (East Renfrewshire) 1 Adult Social Care Updated data is available for all eleven indicators. Three are ranked in the top quarter, four are ranked in the bottom quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 SW1 Home care costs per hour for people aged 65 or over 8 12 13 £22.01 £30.29 £32.22 £33.59 £17.46 (Clackmannanshire) to £45.78 (Fife) 5 SW2 Self Directed Support (Direct Payments + Managed Personalised Budgets) spend on adults 18+ as a % of total social work spend on adults 18+ 18 21 22 4.77 4.67% 4.67% 9.06% 8.25% (West Lothian) to 3.46% (Fife) 4 SW3a % of people aged 65 and over with long-term care needs who receiving personal care at home 5 11 13 63.06% 63.06% 63.20% 62.60% 70.5% (Clackmannanshire) to 59.2% (South Ayrshire) 5 SW4b % of adults supported at home who agree that their services and support had an impact in improving or maintaining their quality of life 23 n/a 28 81.83 n/a 64.2 69.8 69.8% (Falkirk) to 69.1% (Dumfries and Galloway) 5 SW4c Percentage of adults supported at home who agree that they are supported to live as independently as possible 23 n/a 30 75.22 n/a 65.5 72.4 73% (Dumfries and Galloway) to 60.1% (Clackmannanshire) 7 Page 145 of 192
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SW4d Percentage of adults supported at home who agree that they had a say in how their help, care or support was provided 13 n/a 28 73.24 n/a 54.3 59.6 59.6% (Dumfries and Galloway) to 51% (Fife) 5 SW4e Percentage of carers who feel supported to continue in their caring role 29 n/a 23 25.9 n/a 28.5 31.2 30.7% (Falkirk) to 25.8% (West Lothian) 5 SW5 Residential costs per week per resident for people aged 65 or over 6 5 6 £470.00 £555.28 £565.18 £722.63 £518.31 (Dumfries & Galloway) to £1058.99 (Fife) 2 SW6 Rate of readmission to hospital within 28 days per 1,000 discharges 6 4 8 86.7 80.15 85.4 99.03 85.4 (Renfrewshire) to 136 (Falkirk) 1 SW7 Proportion of care services graded 'good' (4) or better in Care Inspectorate inspections 8 15 24 81.46 78 75.4 77 87.7% (Renfrewshire) to 78.9% (Fife) 5 SW8 Number of days people spend in hospital when they are ready to be discharged, per 1,000 population (75+) 5 3 1 295.9 295.92 138.74 846.3 138.7 (Renfrewshire) to 1829.1 (South Ayrshire) 1 Culture and Leisure Data is available for seven of the eight indicators. One is ranked in the top quarter, four are ranked in the bottom quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/22 2022/23 2023/24 2021/22 2022/23 2023/24 Page 146 of 192
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C&L1 Cost per attendance at sports facilities 16 15 20 £5.72 £4.10 £4.42 £4.35 £0.95 (West Lothian) to £12.32 (Midlothian) 5 C&L2 Cost per library visit 3 4 2 £1.47 £1.38 £0.85 £2.38 £0.85 (Renfrewshire) to £6.72 (Inverclyde) 1 C&L3 Cost per visit to Museums & Galleries n/a n/a n/a n/a n/a n/a n/a n/a C&L4 Cost of parks & open spaces per 1,000 population 29 32 31 £32,162. 00 £50,534.0 0 £39,487.00 £23,338.00 £8,803 (Midlothian) to £39,487 (Renfrewshire) 8 C&L5a % of adults satisfied with libraries 24 32 29 62 56 55 67 69.7% (Angus) to 49% (West Lothian) 7 C&L5b % of adults satisfied with parks and open spaces 13 15 21 87.8 87% 83.70% 85% 81% (Clackmannanshire) to 90% (Inverclyde) 7 C&L5c % of adults satisfied with museums and galleries 18 29 28 58 54.7 56 69.3 70.7% (South Lanarkshire) to 41.7 (Clackmannanshire) 6 C&L5d % of adults satisfied with leisure facilities 13 26 26 71 67.3 64.7 67 73% (Inverclyde) to 30% (Clackmannanshire) 6 Environment Updated data is available for all fifteen indicators. Three are ranked in the top quarter, six in the bottom quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 ENV1a Net cost of waste collection per premise 26 25 14 £92.13 £96.21 £75.93 £78.48 £54.51 (Inverclyde) to £89.16 (South Lanarkshire) 4 ENV2a Net cost of waste disposal per premise 17 16 14 £112.54 £106.69 £101.88 £104.41 £48.07 (Midlothian) to £121.50 (South Lanarkshire) 5 ENV3a Net cost of street cleaning per 1,000 population 2 3 6 £8,126 £8,227 £9,188 £16,180 £1,410 (South Lanarkshire) to £20,597 (West Lothian) 3 Page 147 of 192
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ENV3c Street Cleanliness Score 18 10 26 89.60% 93.30% 88.50% 92.10% 95% (Falkirk) to 88.5% (Renfrewshire) 8 ENV4a Cost of Roads per kilometre 29 24 21 £23,055 £21,104 £16,518 £13,480 £9,434 (Midlothian) to £34,354 (East Renfrewshire) 5 ENV4b % of A Class roads that should be considered for maintenance treatment 5 2 2 17.29 15.50% 14.80% 28.90% 14.8% (Renfrewshire) to 30% (Angus) 1 ENV4c % of B Class roads that should be considered for maintenance treatment 7 4 3 21.24 19.20% 20.70% 32.40% 20.7% (Renfrewshire) to 38.2% (Angus) 1 ENV4d % of C Class roads that should be considered for maintenance treatment 18 11 11 30.55 27% 27.60% 33.30% 25% (Clackmannanshire) to 43% (West Lothian) 2 ENV4e % of U Class roads that should be considered for maintenance treatment 9 6 9 30.99 30.10% 30.90% 36.20% 30% (West Lothian) to 42.6% (Midlothian) 2 ENV5 Cost of Trading Standards and environmental health per 1,000 population 28 29 28 £35,370 £36,599 £34,335 £22,777 £13,072 (Clackmannanshire) to £34,355 (Renfrewshire) 8 ENV5a Cost of Trading Standards per 1000 30 29 30 £13,299 £12,967 £13,402 £7,258 £1,675 (Clackmannanshire) to £13,402 (Renfrewshire) 8 ENV5b Cost of environmental health per 1,000 population 26 28 26 £22,072 £23,632 £20,933 £15,518 £7,545 (West Lothian) to £20,933 (Renfrewshire) 8 ENV6 % of total household waste arising that is recycled 8 6 19 51.70% 54% 44% 43.50% 58% (East Renfrewshire) to 41% (South Lanarkshire) 7 ENV7a % of adults satisfied with refuse collection 28 29 27 66.3 73.30% 75.30% 78.30% 73% (Clackmannanshire) to 90% (Inverclyde) 7 ENV7b % of adults satisfied with street cleaning 32 31 29 47.77 50.10% 51.30% 58% 44% (Dumfries & Galloway) to 68% (Fife) 8 Housing Page 148 of 192
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Data is available for four of the five indicators. One indicator is ranked in the top quarter. None in the bottom quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 HSN1b Gross rent arrears (all tenants) as at 31 March each year as a percentage of rent due for the reporting year 9 11 11 7.99 8.59 8.32 9.5 4.6 (South Ayrshire) to 13.9 (Falkirk) 4 HSN2 % of rent due in the year that was lost due to voids 20 19 15 2.03% 1.90% 1.50% 1.80% 0.51% (South Lanarkshire) to 2.18% (Falkirk) 5 HSN3 % of council dwellings meeting Scottish Housing Standards 20 13 20 57.11% 68% 68% 78% 93.8% (West Lothian) to 68% (Renfrewshire) 7 HSN4b Average number of days taken to complete non- emergency repairs 24 3 9 14.57 6.1 7.9 10 5.1 (Clackmannanshire) to 14.5 (South Lanarkshire) 4 HSN5a % of council dwellings that are energy efficient 20 n/a n/a 78.37 n/a n/a n/a n/a n/a Corporate Asset Data is available for both indicators. One indicator is ranked in the bottom quarter. None in the top quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 CORP-ASSET1 Proportion of operational buildings that are suitable for their current use 9 11 11 91.39 90.90% 91.70% 85.40% 96.2% (West Lothian) to 66.5% (Midlothian) 5 CORP-ASSET2 Proportion of internal floor area of 11 11 24 94.49 93.16% 88.94% 89.80% 98% (Angus) to 81.6% (Midlothian) 6 Page 149 of 192
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operational buildings in satisfactory condition Economic Development Data is available for twelve of the thirteen indicators. One is ranked in the top quarter and three in the bottom quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 ECON1 % of unemployed people assisted into work from council operated / funded employability programmes 5 11 11 40.24 18.47 19.6 12.08 41.5% (East Renfrewshire) to 5% (Angus) 4 ECON2 Cost of Planning & Building Standards per planning application 11 16 12 £4,539 £5,823 £6,120 £6,675 £5,039 (Clackmannanshire) to £8,240 (Midlothian) 4 ECON3 Average time per business and industry planning application (weeks) 6 20 26 7.96 12.94 13.55 10.67 7.7 (Clackmannanshire) to 16 (South Lanarkshire) 7 ECON4 % of procurement spend spent on local enterprises 25 26 26 18.87 19.30% 20.15% 30.7 33.2% (Angus) to 11.4% (East Renfrewshire) 5 ECON5 No of business gateway start-ups per 10,000 population 20 27 12 14.89 11.6 16.3 13.59 19.8 (Inverclyde) to 12.1 (East Renfrewshire) 5 ECON6 Investment in Economic Development & Tourism per 1,000 Population 9 8 19 £147,235 £129,213 £99,855 £115,357 £212,409 (Inverclyde) to £38,765 (Angus) 2 ECON7 Proportion of people earning less than the real living wage 19 14 19 19.8 12.5 16 10.2 10.6 (South Lanarkshire) to 20.2 (Angus) (only 5 in this group) 4 Page 150 of 192
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ECON8 Proportion of properties receiving superfast broadband 8 7 10 98 98.60% 98.30% 96.00% 98.9 (Midlothian) to 89.5 (Angus) 3 ECON9 Town Vacancy Rates 26 28 29 17.7 18 17.7 12.3 4.6 (East Renfrewshire ) to 17.7 (Renfrewshire) 8 ECON10 Immediately available employment land as a % of total land allocated for employment purposes in the local development plan 3 12 5 98.05 32.67 74.3 24.5 96.6 (East Renfrewshire) to 12 (South Lanarkshire) 2 ECON11 Gross Value Added (GVA) per capita 13 14 n/a £24,680 £23,758 n/a n/a n/a ECON12a Claimant Count as % of Working Age Population 20 20 22 3.6 3.1 3.2 3.1 1.8 (East Renfrewshire ) to 3.6 (Inverclyde) 6 ECON12b Claimant Count as % of 16-24 Population 16 20 20 3.48 3.6 3.7 3.5 1.9 (East Renfrewshire) to 5.1 (Clackmannanshire) 4 Financial Sustainability Updated data is available for all five indicators. Three are ranked in the top quarter and none are in the bottom quarter. Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 FINSUS1 Total useable reserves as a % of council annual budgeted revenue 3 3 4 46.23 49.2 43.2 23.8 43.2% (Renfrewshire) to 13.8% (West Lothian) 1 FINSUS2 Uncommitted General Fund Balance as a % of council annual budgeted net revenue 20 18 19 2.4 2.2 2.06 2.26 2.4% (Midlothian) to 0.3% (Angus) 3 Page 151 of 192
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FINSUS3 Ratio of Financing Costs to Net Revenue Stream - General Fund 4 7 7 3.11 3 3.13 5.75 0.3 (Inverclyde) to 9.4 (Angus) 4 FINSUS4 Ratio of Financing Costs to Net Revenue Stream - Housing Revenue Account 25 22 17 40.64 32.5 27.7 20 7.25 (Clackmannanshire) to 40.2 (Midlothian) 4 FINSUS5 Actual outturn as a percentage of budgeted expenditure 8 4 8 100.02 101.7 100.5 99.6 100.7% (West Lothian) to 97.9% (Angus) 2 Tackling Climate Change Indicator Ranked Position Data Scottish Average Family Group (Maximum/Minimum) Family Group Ranking 2021/2 2 2022/23 2023/24 2021/22 2022/23 2023/24 CLIM01 CO2 emissions area wide, per capita 14 16 n/a 4.6 4.4 n/a n/a n/a CLIM02 CO2 emissions area wide, emissions within scope of LA, per capita 8 11 n/a 4.0 3.8 n/a n/a n/a CLIM03: Emissions from transport per 1,000 population 6 10 n/a 17.8 18.2 n/a n/a n/a CLIM04: Emissions from electricity per 1,000 population 1 1 n/a 32.2 30.3 n/a n/a n/a CLIM05: Emissions from natural gas per 1,000 population 5 8 n/a 45.3 46.2 n/a n/a n/a Page 152 of 192
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Appendix 2: Indicators ranked in top eight and bottom eight of local authorities Top quarter ranking • CHN2 Cost per Secondary School Pupil • CHN5 % of Pupils Gaining 5+ Awards at Level 6 • CHN6 % of Pupils from Deprived Areas Gaining 5+ Awards at Level 5 (SIMD) • CHN7 % of Pupils from Deprived Areas Gaining 5+ Awards at Level 6 (SIMD) • CHN11 Proportion of Pupils Entering Positive Destinations • CHN12b Average Total Tariff SIMD quintile 1 • CHN12f Average total tariff SIMD quintile 5 • CHN13b % of P1, P4 and P7 pupils combined achieving expected CFE Level in Numeracy • CORP 8 % of invoices sampled that were paid within 30 days • CORP 11 The proportion of SWF Budget Spent • CORP 12 Proportion of DHP Funding spent • SW5 Residential costs per week per resident for people aged 65 or over • SW6 Rate of readmission to hospital within 28 days per 1,000 discharges • SW8 Number of days people spend in hospital when they are ready to be discharged, per 1,000 population (75+) • C&L2 Cost per library visit • ENV3a Net cost of street cleaning per 1,000 population • ENV4b % of A Class roads that should be considered for maintenance treatment • ENV4c % of B Class roads that should be considered for maintenance treatment • HSN4b Average number of days taken to complete non-emergency repairs • ECON10 Immediately available employment land as a % of total land allocated for employment purposes in the local development plan • FINSUS1 Total useable reserves as a % of council annual budgeted revenue • FINSUS3 Ratio of Financing Costs to Net Revenue Stream - General Fund • FINSUS5 Actual outturn as a percentage of budgeted expenditure Page 153 of 192
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Bottom quarter ranking • CHN14a Literacy Attainment Gap (P1,4,7 Combined) - percentage point gap between the least deprived and most deprived pupils • CHN10 % of Adults Satisfied with Local Schools • CORP 1 Support services as a % of total gross expenditure • CORP 4 The cost per dwelling of collecting council tax • CORP 7 % of income due from council tax received by the end of the year • SW4b % of adults supported at home who agree that their services and support had an impact in improving or maintaining their quality of life • SW4c Percentage of adults supported at home who agree that they are supported to live as independently as possible • SW4d Percentage of adults supported at home who agree that they had a say in how their help, care or support was provided • SW7 Proportion of care services graded 'good' (4) or better in Care Inspectorate inspections • C&L4 Cost of parks & open spaces per 1,000 population • C&L5a % of adults satisfied with libraries • C&L5c % of adults satisfied with museums and galleries • C&L5d % of adults satisfied with leisure facilities • ENV3c Street Cleanliness Score • ENV5 Cost of Trading Standards and environmental health per 1,000 population • ENV5a Cost of Trading Standards per 1000 • ENV5b Cost of environmental health per 1,000 population • ENV7a % of adults satisfied with refuse collection • ENV7b % of adults satisfied with street cleaning • CORP-ASSET2 Proportion of internal floor area of operational buildings in satisfactory condition • ECON3 Average time per business and industry planning application (weeks) • ECON4 % of procurement spend spent on local enterprises • ECON9 Town Vacancy Rates Page 154 of 192
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 19 May 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Audit Scotland Finance Bulletin 2023/24: Integration Joint Boards ___________________________________________________________________ 1. Summary 1.1 On 6 March 2025, on behalf of the Accounts Commission, Audit Scotland published a Finance Bulletin comprising an analysis of IJB annual accounts for 2023/24 and the corresponding annual audit reports undertaken by local auditors. The bulletin summarises the ongoing challenging financial position in which IJB’s across Scotland continue to operate. 1.2. Alongside this, Audit Scotland has published an interactive online tool utilising the data and analysis from the bulletin, which they anticipate will be a useful resource for IJBs, their stakeholders and members of the public. 1.3. The key messages in the bulletin are as follows: 1. Integration Joint Boards’ (IJBs) finances continue to be precarious. IJBs 2023/24 funding has increased in real terms compared to 2022/23, but there is a concerning picture of continued overspending, depletion of reserves and required savings being met through one-off rather than recurring savings. 2. The majority of IJBs reported a deficit on the cost of providing services requiring unplanned use of reserves and additional contributions from partner bodies, noting that: Item 10 Page 155 of 192
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a) Total reserves held by IJBs have reduced by 40 per cent in 2023/24. Contingency reserves have almost halved, limiting IJBs’ ability to address future deficits. Nine IJBs now do not hold any contingency reserves, reducing their financial flexibility and increasing the risk to their financial sustainability. b) NHS boards and councils face significant financial challenges themselves and IJBs cannot continue to rely on their partners being able to find additional money to support them during the year. IJBs need to agree budgets that are realistic and transparent and to have strategies in place to manage in-year risks. 3. The majority of the total planned savings were achieved, but a substantial proportion were achieved on a one-off basis meaning these non-recurring savings need to be carried forward and covered each year to balance future budgets. 4. The financial position is set to worsen with a projected funding gap of £457 million in 2024/25. The budget process needs collaboration with partners and candid conversations with communities about the impact of the savings needed to set a balanced budget. The budgets and proposed savings need to be realistic and achievable. 5. A continued high turnover of chief officers and chief finance officers adds to the risks around effective strategic planning and decision- making. 6. IJBs need to be working collaboratively with each other and with their NHS and council partners to find ways to transform services so that they are affordable. Investment in prevention and early intervention is needed to help slow the ever-increasing demand for services, the cost of more complex care and, improve the experience and outcomes for people. 1.4. Further detail on these key messages is provided in the sections below. 1.5 This paper was presented to the IJB Audit, Risk and Scrutiny Committee on 14 March 2025. ___________________________________________________________________ 2. Recommendations 2.1 It is recommended that the Audit, Risk and Scrutiny Committee: Note the content of this report, and the full Audit Scotland bulletin as attached in Appendix 1. _________________________________________________________ Page 156 of 192
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3. Background 3.1 In July 2024, the Accounts Commission published its Integration Joint Boards’ Finance and Performance 2024 briefing. The briefing developed upon reports previously issued in 2022 and 2023 by the Commission and provided a high-level independent analysis of IJBs, commenting on: the financial performance of IJBs in 2022/23 and the financial outlook for IJBs in 2023/24 and beyond; performance against national health and wellbeing outcomes and targets alongside other publicly available performance information; a ‘spotlight’ focus on commissioning and procurement of social care. 3.2 This updated bulletin summarises the Commission’s findings based on the 2023/24 annual accounts for 29 IJBs (27 audited and two unaudited), 2023/24 annual audit reports, as well as IJB budget documentation. 3.3 The Commission advises it has published the bulletin as early as possible to help inform budget-setting discussions. 4. IJB Financial Performance 4.1 Expanding on the findings of its Finance and Performance briefings of recent years, the Finance Bulletin 2023/24 outlines the challenging demographic context facing IJBs, including societal changes which have resulted in an increase in demand and complexity of health and care needs. Underlying factors identified in the report include a 27% increase in the percentage of people who reported having bad, or very bad health; and a 28% increase in the percentage of population that provide unpaid care, since the 2011 census. 4.2 The bulletin notes that, while there was a real-terms increase in IJB funding between 2022/23 and 2023/24, the financial health of IJBs continues to weaken and there are indications of further challenging times ahead. 4.3 Of the 29 IJBs included within the report, 24 (83%) reported a deficit on the cost of providing services in 2023/24, with 11 receiving additional contributions from partner bodies and 16 making unplanned drawdowns from reserves to cover year-end overspends. Page 157 of 192
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4.4 The bulletin also notes that there was a 154% increase in the savings target between 2022/23 and 2023/24, and a substantial proportion of this was achieved on a non-recurring basis. Only seven IJBs achieved their full savings target, of which Renfrewshire IJB was one. 4.5 Financial sustainability risks have been identified by auditors in 26 out of 27 (96%) of IJBs where Annual Audit Reports were available, and over half of all IJBs reported turnover in senior officer roles (Chief Officer/Chief Finance Officer). 4.6 The projected funding gap is expected to worsen, with IJB annual accounts and budget papers identifying a 28% increase in the overall projected funding gap between 2023/24 and 2024/25. 4.7 The bulletin, consistent with the narrative of previous Audit Scotland reports, concludes that the reliance on non-recurring sources of income to fund recurring budget pressures is unsustainable in the medium to long term, and the identification and delivery of recurring savings and a reduced reliance on drawing from reserves to fund revenue expenditure will be key to ensuring long-term financial sustainability. ___________________________________________________________________ Implications of the Report 1. Financial – none 2. HR & Organisational Development - none 3. Community/Council Planning – none 4. Legal – none 5. Property/Assets - none 6. Information Technology - none 7. Equality & Human Rights -The Recommendations contained within this report have not been assessed in relation to their impact on equalities and human rights as it summarises another publication and is for noting only. 8. Health & Safety - none 9. Procurement – none 10. Risk - the report summarised in this paper sets out a range of challenges facing the Scottish Government and Health Boards across Page 158 of 192
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Scotland. Related risks for the IJB and HSCP are captured through ongoing risk management activity and reported to the IJB Audit, Risk and Scrutiny Committee at each scheduled meeting. 11. Privacy Impact – not applicable 12. Climate Risk –not applicable. 13. Children’s Rights –not applicable. 14. COSLA Policy Position –not applicable. _______________________________________________________ List of Background Papers None ___________________________________________________________________ Author: Alastair MacArthur, Director of Finance and Resources Page 159 of 192
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Integration Joint Boards Finance bulletin 2023/24 Prepared by Audit Scotland March 2025 APPENDIX Page 160 of 192
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Integration Joint Boards | 2 Contents Key messages 3 Introduction 5 Context 6 Financial performance 7 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility Page 161 of 192
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Key messages | 3 Key messages 1 Integration Joint Boards’ (IJBs) finances continue to be precarious. IJBs 2023/24 funding has increased in real terms compared to 2022/23 but there is a concerning picture of continued overspending, depletion of reserves and required savings being met through one-off rather than recurring savings. 2 The majority of IJBs reported a deficit on the cost of providing services requiring unplanned use of reserves and additional contributions from partner bodies: • Total reserves held by IJBs have reduced by 40 per cent in 2023/24. Contingency reserves have almost halved, limiting IJBs ability to address future deficits. Nine IJBs now do not hold any contingency reserves reducing their financial flexibility and increasing the risk to their financial sustainability. • NHS boards and councils face significant financial challenges themselves and IJBs cannot continue to rely on their partners being able to find additional money to support them during the year. IJBs need to agree budgets that are realistic and transparent and to have strategies in place to manage in-year risks. 3 The majority of the total planned savings were achieved, but a substantial proportion were achieved on a one-off basis meaning these non-recurring savings need to be carried forward and covered each year to balance future budgets. 4 The financial position is set to worsen with a projected funding gap of £457 million in 2024/25. The budget process needs collaboration with partners and candid conversations with communities about the impact of the savings needed to set a balanced budget. The budgets and proposed savings need to be realistic and achievable. 5 A continued high turnover of chief officers and chief finance officers adds to the risks around effective strategic planning and decision-making. Page 162 of 192
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Key messages | 4 6 IJBs need to be working collaboratively with each other and with their NHS and council partners to find ways to transform services so that they are affordable. Investment in prevention and early intervention is needed to help slow the ever-increasing demand for services, the cost of more complex care and, improve the experience and outcomes for people. Page 163 of 192
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Introduction | 5 Introduction 1. Integration Joint Boards (IJBs) are responsible for the governance, planning and resourcing of social care, primary and community healthcare and unscheduled hospital care for adults in their local area. The Public Bodies (Joint Working) (Scotland) Act 2014 (the Act) requires the 32 Scottish councils and 14 territorial NHS boards to work together in partnerships to integrate how social care and community healthcare services are provided. IJBs were created as part of the Act. More information about the role of IJBs is set out in a short video available on our website What are Integration Joint Boards? 2. On behalf of the Accounts Commission, Audit Scotland has undertaken an analysis of the IJB annual accounts for 2023/24 and the annual audit reports produced by local auditors. The data and analysis is published on the Audit Scotland website as an interactive online tool – The IJB Finance bulletin 2023/24. 3. The interactive online tool allows users to explore the financial performance of their local IJB, as well as compare individual IJBs. We anticipate this will be a useful resource for IJBs, their stakeholders and members of the public. It includes data on the funding and income and reserves position, outturn budget position, savings performance and financial outlook. The tool also includes local and national contextual data from the 2022 census that illustrates the increasing population pressures nationally and the significant variation across Scotland. Accompanying guidance on how to use the online tool is also available on the Audit Scotland website. 4. This document provides a summary of the national level messages from the online Finance bulletin. 5. Our findings are based on the 2023/24 annual accounts for 29 IJBs (27 audited and two unaudited), 2023/24 annual audit reports, as well as IJB budget documentation. The accounts for East Dunbartonshire IJB were unavailable at the time of publication. 6. We have published the Finance bulletin as early as possible to help inform budget-setting discussions. Further information will be added to the data tool as it becomes available. By Autumn 2025, it will also include performance and outcome data. Page 164 of 192
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Context | 6 Context Demographic shifts are driving an increase in the demand and complexity of health and care needs 7. The pressures on Scotland's social care and healthcare services are escalating, with higher demand, workforce difficulties, and financial strains, further aggravated by inflationary cost pressures. 8. Scotland’s wide-ranging population density also presents different logistical and workforce challenges, along with associated cost pressures, to providing services. 9. The 2022 Census sets out how the underlying factors impacting on the demand for social care and healthcare services have changed since 2011. 2022 Census data Movement since 2011 census/range Population 5.4 million 2.7% increase Proportion of population aged over 65 20% Increasing from 17% Population density (residents per km2) 70 Varying from 9 (Eilean Siar) to 3,555 (Glasgow) Percentage of people who reported having bad or very bad health 7% 27% increase Percentage of people with a long-term illness, disease or condition 21% Increasing from 19% Percentage of population that provide unpaid care 12% 28% increase Source: Scotland’s Census 2022 10. These societal changes result in an increased resource demand for social care and healthcare services and impact on the financial sustainability of these services as we set out later in this report. Page 165 of 192
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Financial performance | 7 Financial performance The financial health of IJBs continues to weaken and there are indications of more challenging times ahead IJB funding has increased in real terms compared to 2022/23 11. IJBs receive their funding as annually agreed contributions from their council and NHS board partners. Funding is largely received to cover in- year expenditure on providing services but can also be received for specific services and national initiatives to be funded in future years. The funding split between NHS and council partners remains around 70 per cent from NHS boards and 30 per cent from councils. 12. There has been a four per cent real-terms increase in IJB funding between 2022/23 to 2023/24 (Exhibit 1). Exhibit 1 IJB Funding and income 2020/21 – 2023/24 Funding increased by four per cent in real terms in the past year Note: * Position/movement excluding East Dunbartonshire IJB as accounts are unavailable. Source: Audited accounts £10,577 £10,792 £9,996 £11,841 £507 £960 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 2020/21 2021/22 2022/23 2023/24* £ million Partner contributions Covid-19 funding Page 166 of 192
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Financial performance | 8 The majority of IJBs reported a deficit on the cost of providing services requiring additional contributions from partner bodies and the unplanned use of reserves 13. Twenty-four IJBs reported a deficit on the cost of providing services with the majority (18) reporting a deficit between zero and three per cent (Exhibit 2, page 9). 14. Of the 24 IJBs reporting an operating deficit, 11 received additional contributions from partner bodies to cover the year end overspend and 16 made an unplanned drawdown from reserves. A number of IJBs will have received additional partner contributions during the year that will not be captured by this analysis. These additional in-year contributions can arise for a variety of reasons, including specific one-off cost pressures not anticipated during budget-setting. 15. Five IJBs reported an operational surplus, down from 19 in 2022/23. Reasons reported for surplus’ included delays in the launch of some transformation and improvement projects and challenges in health and social care recruitment. 16. Recruitment and retention issues facing the sector persist, but the related savings from holding vacancies, that contributed to the majority of operational surpluses in 2022/23, are being outstripped by inflationary cost pressures and, reflecting the workforce pressures, a higher spend on agency/locum/bank staff. Other financial pressures driving the increase in the costs of providing services include increasing demand for services, prescribing costs and pay inflation. Page 167 of 192
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Financial performance | 9 Exhibit 2 Operational surplus/deficit as a proportion of the 2023/24 net cost of service The majority of IJBs reported a deficit on the cost of providing services in 2023/24 requiring additional contributions from partner bodies and the unplanned use of reserves. Note: * Comparable data for 2022/23 was not available for these IJBs. ** East Dunbartonshire IJB accounts unavailable. Source: Audited accounts, auditor returns The majority of the total planned savings were achieved, but a substantial proportion was achieved only on a one-off basis 17. There was a 154 per cent increase in the savings target between 2022/23 and 2023/24, increasing to £214 million. Overall, IJBs achieved 79 per cent of their planned savings targets in 2023/24. This was down -10% -5% 0% 5% 10% Shetland Orkney* Dumfries & Galloway* Falkirk Eilean Siar Midlothian Aberdeen East Renfrewshire Fife Aberdeenshire Scottish Borders East Ayrshire Perth and Kinross North Ayrshire Moray East Lothian Glasgow Dundee Clackmannanshire & Stirling Edinburgh* West Dunbartonshire Inverclyde West Lothian Renfrewshire East Dunbartonshire** Argyll & Bute South Lanarkshire Angus North Lanarkshire South Ayrshire 2022/23 2023/24 Page 168 of 192
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Financial performance | 10 from 84 per cent in 2022/23. Only seven IJBs achieved all of their savings target with three IJBs achieving less than half their target (Exhibit 3, page 11). 18. Fifty-seven per cent of savings were achieved on a recurring basis with the remaining 43 per cent being achieved on a non-recurring basis. The non-recurring savings will be carried forward to be found again in future years. Page 169 of 192
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Financial performance | 11 Exhibit 3 2023/24 Savings performance 79 per cent of total planned savings were achieved in 2023/24, compared to 84 per cent in 2022/23. Note: * In the absence of the 2023/24 East Dunbartonshire IJB accounts, the 2022/23 Net Cost of Service was used. Source: 2023/24 Audited accounts, auditor returns 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% North Lanarkshire Angus Inverclyde Perth and Kinross Renfrewshire Clackmannanshire & Stirling South Ayrshire Orkney Scottish Borders East Ayrshire East Dunbartonshire* Glasgow North Ayrshire Moray East Renfrewshire Fife Dundee Shetland Aberdeen West Lothian Argyll & Bute Edinburgh West Dunbartonshire Eilean Siar Falkirk Dumfries & Galloway Savings target as a proportion of the net cost of service Savings achieved Savings target + target amount £23.2m £1.4m £13.5m £7.9m £20.7m £8.9m £6.6m £9.4m £2.0m £5.1m £21.4m £7.1m £4.1m £5.0m £21.5m £3.9m £5.2m £2.5m £2.4m £2.4m £2.5m £3.3m £4.4m £1.3m £0.9m £2.7m 85% 59% 146% 71% 106% 83% 97% 79% 57% 100% 53% 39% 66% 94% 100% 64% 61% 100% 85% 31% 95% 85% 75% 100% 100% 57% 100% Page 170 of 192
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Financial performance | 12 19. IJBs achieved 79 per cent of their planned savings target in 2023/24. Over two-fifths of this were achieved on a non-recurring basis. This means that these savings will be carried forward to be found again in future years. Identifying and achieving savings every year on a recurring basis, and moving away from relying on one-off savings, is essential for IJBs to maintain financial sustainability. Total reserves held by IJBs have reduced by 40 per cent in 2023/24. 20. By the end of 2023/24, IJBs reported a reduction in their total level of reserves, decreasing by 36 per cent between 2022/23 and 2023/24 (40 per cent real-terms reduction). Part of the reduction relates to the use of ringfenced reserves to support Scottish Government national policy objectives (Exhibit 4). Exhibit 4 Total reserves by year Total reserves held by IJBs have reduced by 40 per cent in real terms in 2023/24. Note: * 2023/24 position/movement excludes the East Dunbartonshire IJB position. Source: Audited accounts £- £200.00 £400.00 £600.00 £800.00 £1,000.00 £1,200.00 £1,400.00 2020/21 2021/22 2022/23 2023/24 Millions Ringfenced/Earmarked reserves Contingency reserves Covid reserves Page 171 of 192
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Financial performance | 13 Contingency reserves have almost halved, limiting IJBs ability to address future deficits 21. Contingency reserves have almost halved (49 per cent real-terms reduction) and now represent 0.8 per cent of the total Net Cost of Services (down from 1.6 per cent). These are reserves that are held but have not been earmarked for a specific purpose and are often used to mitigate the financial impact of unforeseen circumstances (Exhibit 5). Exhibit 5 2023/24 year end IJB reserves as a proportion of the net cost of services Over half of all IJBs had contingency reserve levels of less than one per cent of net cost of services. Source: Audited and unaudited accounts 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Aberdeenshire Midlothian Fife East Lothian Shetland Edinburgh East Renfrewshire Moray Perth and Kinross North Ayrshire Dumfries & Galloway Aberdeen West Lothian East Ayrshire Clackmannanshire & Stirling Scottish Borders Argyll & Bute Dundee Glasgow Orkney South Lanarkshire South Ayrshire Renfrewshire Falkirk West Dunbartonshire North Lanarkshire Angus Inverclyde Eilean Siar Ringfenced/Earmarked reserves Contingency reserves Page 172 of 192
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Financial performance | 14 22. One IJB (Aberdeenshire) utilised all their reserves in year, meaning that any future overspend position would require additional funding from partner bodies. 23. Four IJBs utilised all their contingency reserve in year, bringing the total number of IJBs without any contingency reserves, at the end of 2023/24, to nine. Financial sustainability risks have been identified by auditors in the vast majority of IJBs 24. The majority of auditors raised financial sustainability risks as part of their annual audits of IJBs. The risks identified included the reliance on non-recurring sources of income, such as reserves and one-off savings, to meet overspends. 2023/24 Audit Financial management risks identified* 22% Financial sustainability risks identified* 96% Medium-term financial plan in place** 90% Accounts presented within agreed timetable** 83% Unmodified opinion* 100% IJBs reporting turnover in senior officer roles (CO/CFO)** 57% IJBs who agreed their 2024/25 budget prior to the start of the financial year** 87% Note: * Based on 27 IJBs, where Annual Audit Reports were available. ** Based on all IJBs. Turnover figures include IJBs with interim Chief Officers (CO)/Chief Finance Officers (CFO) in place. Source: Annual Audit Reports, IJB budget papers, Medium-term financial plans 25. Other financial sustainability risks highlighted by auditors included: • Reserves level falling below minimum required as per their individual reserves policies. In one case, the general reserve has been depleted in full. • Undeveloped/underdeveloped plans for the achievement of recurring savings to allow IJBs to reach a balanced financial position. Page 173 of 192
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Financial performance | 15 • Additional contributions being required from IJB partners to meet cost pressure. • Inability to reduce reliance on agency and locum staff due to ongoing recruitment challenges. 26. Financial management risks identified included: • Inaccurate information provided or not presented in line with regulations. • Insufficient detail provided to allow the reader to fully assess the board’s overall performance. • Financial forecasting requiring more accuracy. • Requirement to enhance the reporting to provide greater clarity regarding the underlying IJB budget and performance against the budget during the year. Instability of leadership continues to be a challenge for IJBs 27. Over half of IJBs reported a change of Chief Officer or Chief Finance Officer in 2023/24. We previously reported that half of IJBs reported a change in senior leadership across 2021/22 and 2022/23. 28. The leadership and strategic vision of senior officers is crucial in the strategic planning and decision making required to drive much needed transformation change. Instability in leadership teams has the potential to disrupt strategic planning and the leadership capacity to bring about the fundamental change required to address the growing scale of challenges facing IJBs. The projected financial position is set to worsen 29. 2024/25 budget-setting revealed that the projected funding gap for IJBs has increased again to £457 million (£357 million for 2023/24) (Exhibit 6, page 16). 30. For 2024/25, 16 of the 30 IJBs agreed a balanced budget before the start of the financial year. Delays in the agreement of savings plans and NHS partner funding were the most common reasons for balanced budgets not being agreed at the start of the financial year. Page 174 of 192
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Financial performance | 16 Exhibit 6 IJB funding gaps as a proportion of 2023/24 net cost of services IJB annual accounts and budget papers identify a 28 per cent increase in the overall projected funding gap between 2023/24 and 2024/25. Note: * In the absence of the 2023/24 East Dunbartonshire IJB accounts, the 2022/23 Net Cost of Service was used. Source: IJB budget papers, auditor returns Reliance on non-recurring sources of income is not sustainable 31. At the time of the 2024/25 budget-setting, nine per cent of the projected funding gap was planned to be bridged using non-recurring reserves (Exhibit 7, page 17). 0% 2% 4% 6% 8% 10% 12% Scottish Borders South Ayrshire Angus West Lothian North Ayrshire Perth and Kinross Argyll & Bute East Dunbartonshire* West Dunbartonshire Orkney East Lothian Fife Falkirk Moray Eilean Siar 2024/25 gap as proportion of Net Cost of Service 2023/24 gap as proportion of Net Cost of Service Page 175 of 192
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Financial performance | 17 32. A proportion of the funding gap did not have planned savings agreed against it at the time of budget-setting. These unidentified savings made up 13 per cent of the total projected funding gap and were the result of 12 IJBs starting the 2023/24 financial year with an unbalanced budget. Exhibit 7 2024/25 IJB funding gap planed action The use of non-recurring reserves makes up nine per cent of plans to bridge the funding gap. Source: IJB budget papers, auditor returns 33. The proposed savings contain both recurring and non-recurring savings. The reliance on non-recurring sources of income to fund recurring budget pressures is unsustainable in the medium to long term. The identification and delivery of recurring savings and a reduced reliance on drawing from reserves to fund revenue expenditure will be key to ensuring long-term financial sustainability. Agreed savings 76% Use of reserves 9% Other 2% Remaining gap 13% Agreed savings Use of reserves Other Remaining gap Page 176 of 192
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Integration Joint Boards Finance bulletin 2023/24 Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit.scot www.audit.scot ISBN 978 1 915839 65 7 AS.5.0 Page 177 of 192
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To: Audit, Risk & Scrutiny Board On: 19 May 2025 Report by: Director of Finance & Resources Heading: AUDIT, RISK & SCRUTINY BOARD ANNUAL REPORT 2024/25 1 Summary 1.1 It is important that the Audit, Risk & Scrutiny Board fully complies with best practice guidance on Audit Committees to ensure it can demonstrate its effectiveness as a scrutiny body as a foundation for sound corporate governance for the Council. 1.2 The Chartered Institute of Public Finance and Accountancy (CIPFA) issued an updated guidance note entitled Audit Committees Practical Guidance for Local Authorities and Police 2022 Edition, which incorporated CIPFA’s Position Statement: Audit Committees in Local Authorities and Police which included the production of an annual report on the performance of the Audit Board against its remit for submission to the Council. 1.3 The Annual Report for the Audit, Risk & Scrutiny Board for 2024/25 is attached as an Appendix to this report for consideration by Members and provides an overview of the Audit, Risk & Scrutiny Board’s activity during the period 1 April 2024 to 31 March 2025 and a summary of key developments. It sets out how the Board has fulfilled its remit and provides assurances to the Council. 1.4 Members are asked to note the Annual Report for 2024/25 and agree that the report be submitted to the next meeting of the Council, to be held on 26 June 2025, in line with best practice guidance. 2 Recommendations (a) That the Audit, Risk & Scrutiny Board Annual Report 2024/25 be noted; (b) Agree that the report should be submitted to the next meeting of the Council, to be held on 26 June 2025, in line with best practice guidance. Item 11 Page 179 of 192
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Implications of the Report Financial – none HR & Organisational Development – none Community Planning – none Legal – none Property/Assets – none Information Technology – none Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. Health & Safety – none Procurement – none Risk – none Privacy Impact – none Cosla Policy Position – not applicable Climate Risk – none List Of Background Papers - None Author: Carol MacDonald, Senior Committee Services Officer, Finance & Resources. email: carol.macdonald@renfrewshire.gov.uk Page 180 of 192
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To: Council On: 26 June 2025 Report by: Director of Finance & Resources Heading: AUDIT, RISK & SCRUTINY BOARD ANNUAL REPORT 2024/25 1 Summary 1.1 The Chartered Institute of Public Finance and Accountancy (CIPFA) guidance recommends that all audit committees should “prepare an annual report that provides assurance to all those charged with governance that it fulfils its purpose and can demonstrate its impact.”. (Audit Committees Practical Guidance for Local Authorities and Police, published by CIPFA in 2022). 1.2 Taking the CIPFA guidance into account, the reporting dates for this Annual Report is from 1 April 2024 to 31 March 2025 and provides an overview of the Audit, Risk & Scrutiny Board (the Board) activity during the financial year 2024/25 and a summary of key developments. 1.2 This report has been prepared to inform Renfrewshire Council of the work carried out by, and the impact of, the Audit, Risk & Scrutiny Board and provides details of the Board’s membership and attendance. It sets out how the Board has fulfilled its remit and provides assurance to those charged with governance that it has fulfilled its purpose and demonstrated its impact. 1.3 The annual report is timed to support the annual review of governance and preparation of the Annual Governance Statement. This enables the Board to take stock of the assurances it has received and the extent to which its own performance has contributed to governance arrangements. 1.4 This annual report highlights the issues considered by the Board during 1 April 2024 to 31 March 2025 when the Audit, Risk & Scrutiny Board met seven times. The report was submitted to the Board in terms of the Council’s Code of Corporate Governance. Page 181 of 192
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1.5 At each meeting, the Board considered significant findings from Internal Audit reports together with monitoring the progress made by management in completing agreed actions to improve the Council’s control environment. It also considered the status of external audit action plans arising from external audit reports received and the external audit annual plan for 2024/25 from the external auditors in March 2025. 2 Recommendations 2.1 That the Audit, Risk & Scrutiny Board Annual Report 2024/25 be noted; 3 Background and Context 3.1 Remit and Role of the Board The Audit, Risk & Scrutiny Board is a key component of the Council’s governance framework. Its purpose is to provide an independent and high-level focus on the adequacy of governance, risk and control arrangements. The Board’s role in ensuring that there is sufficient assurance over governance risk and control gives greater confidence to all those charged with governance that those arrangements are effective. The Board has oversight of both internal and external audit together with financial and governance reports, helping to ensure that there are adequate arrangements in place for both internal challenge and public accountability. 3.2 Scrutiny enables Members to review decisions, policies and performance that affect the Council and helps to ensure that the services and policies meet the Council’s aims and standards. The scrutiny process not only provides a means of reviewing the Council’s own services but enables examination of services provided by other organisations on issues causing public concern. 3.3 In order to fulfil the remit, the Board sought assurance on the adequacy and effectiveness of the Council’s systems of governance, risk management and internal control to ensure efficient operations and the highest standards of probity and accountability. This was achieved through reports received from Internal Audit, other Council functions and External Audit with focus in particular on internal control and governance. 4 Core Functions of the Audit Committee 4.1 The core functions of the Audit, Risk & Scrutiny Board reflects both standard practice for audit committees across all sectors and the specific legislative and professional standards requirements for local authorities. The CIPFA Position Statement sets out the core functions of the audit committee as follows. Supporting the establishment and maintenance of good governance, risk management and control arrangements. Supporting accountability and public reporting, in particular the financial statements and the annual governance statement, and other statements that accompany the financial statements. Page 182 of 192
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Supporting the establishment and maintenance of good arrangements for internal audit and external audit. 4.2 The Audit, Risk & Scrutiny Board met seven times during 2024/25 comprising meetings on 20 May, 19 August, 23 September, 22 October, 4 November 2024, 20 January and 17 March 2025 respectively, to consider reports relevant to the Audit cycle and other matters as deemed appropriate. 4.3 Pre agenda meetings were also held ahead of the Board meeting involving the Convenor, Depute Convenor and appropriate officers to allow for informal discussion, briefing Members on key issues, and facilitating a more efficient and informed decision-making process. 4.4 All Pre-agenda meetings were held using the Microsoft Teams platform to allow remote participation. The Board meetings were held on a hybrid basis, with members and officers able to attend in-person or via Microsoft Teams, and were webcast for live and retrospective viewing by the public on the Council's live- streaming website. 5 Membership of the Board, Political Balance and Attendance 5.1 In accordance with Renfrewshire Council’s Procedural Standing Orders membership of the Audit Committee should comprises nine Elected Members drawn from all the political parties/independent Members represented on the Council, having regard to the party balance on the Council (three Administration/six opposition groups/parties/independent Members). The quorum of the Audit, Risk & Scrutiny Board is three Elected Members. 5.2 Councillor Gray resigned from the Conservative Group and left the Audit, Risk & Scrutiny Board on 5 March 2025. This created a vacancy on the Board on which he had been nominated by the Conservative Group as a member. At the Council meeting held on 1 May 2025 Councillor Mylet was appointed to the vacancy on the Board. 5.3 The membership and attendance of the Audit, Risk & Scrutiny Board are as follows:- ELECTED MEMBER PARTY POSITION APPOINTED TO BOARD MEETINGS ATTENDED POSSIBLE NO OF MEETING TO ATTEND Andy Doig IND Convener June 2022 6 7 J McDonald LAB Depute- Convener (appointed Feb 2024) June 2022 7 7 J Adam SNP Member June 2022 7 7 G Graham LAB Member December 2024 2 2 L Hughes SPN Member June 2022 7 7 R Innes SNP Member June 2022 7 7 J MacLaren CONS Member June 2022 7 7 B Smith LAB Member February 2024 7 7 Page 183 of 192
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W Mylet IND Member 1 May 2025 0 0 C Gilmour LAB Left Board 12 December 2024 June 2022 5 5 J Gray REFORM Left Board 5 March 2025 June 2022 6 6 5.4 The Convener is an independent Member, and the Depute Convener is from an opposition party. In terms of the Council’s Procedural Standing Orders, Members have been drawn from the political parties represented on the Council on a proportionate basis, having regard to party balance on the Council. It should be noted that members of the Leadership Board and members who are Conveners of another Board may not be Members of the Audit, Risk & Scrutiny Board. 5.5 CIPFA advises that “Elected Members of local authorities are part of the body charged with governance and bring knowledge of the organisation, its objectives and policies to the Audit committee”. Members with experience in scrutiny or standards offer additional knowledge of activity, risks and challenges affecting those areas. Ideally, the selection of Elected Members to the audit board will take account of aptitude and experience. 5.6 The Cross-Party Working Group report on governance submitted to Council on 29 February 2024, suggested that additional support to the Board, perhaps through external independent membership, particularly from a finance/accounts background, may be appropriate. Members of the Audit, Risk & Scrutiny Board considered this matter at a development session on 26 February 2024. They agreed it would be appropriate for there to be an option for the Board to appoint up to two individuals as non-voting lay members where they identified any need for specific assistance or any deficiencies in areas of experience of Board Members was identified by them . The Board’s request to change the Guidelines for Operation of the Audit, Risk & Scrutiny Board was agreed at the Council Meeting of 9 May 2024. The Board has not sought to recommend any specific appointment to Council since this change was agreed. 5.7 At a development session held on 26 February 2024, members considered whether it would be beneficial to recruit independent/lay members to supplement the Audit, Risk and Scrutiny Board in particular areas. 5.8 At the Audit, Risk & Scrutiny Board held on 18 March 2024, the members considered a report entitled CIPFA Audit Committee Guidance – Self Assessment and Action Plan. The report proposed that “the Board may appoint up to 2 individuals as non-voting lay members to bring access to external expertise, knowledge or experience, as necessary. Lay members should be appointed by the Council after a recommendation from an interview panel chaired by the Convenor of the Audit, Risk and Scrutiny Board. Lay members should not be a member of any political party. This was agreed and subsequently included in the “Guidelines for Operation of the Audit, Risk & Scrutiny Board”. Page 184 of 192
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5.7 Attendance by Officers at the Board Meetings The Audit, Risk & Scrutiny Board meetings were attended by the Chief Auditor, Head of Corporate Governance and the Director of Finance & Resources. Other senior officers also attended meetings as appropriate for items of business for which their presence was relevant. Representatives from the Council’s external auditors - Azets Scotland, the appointed external auditors, were also present at all of the meeting. 6 Governance Arrangements 6.1 Internal control, governance and risk management arrangements are in place to help ensure the Council makes appropriate use of its resources and powers. The Audit, Risk & Scrutiny Board is a key component of governance. Its purpose is to provide an independent and high-level focus on the adequacy of governance, risk and control arrangements and the Board plays an important role in supporting leadership teams and elected representatives and helps the Council to achieve its priorities. 6.2 The Audit, Risk & Scrutiny Board is different from the Council’s Policy Boards. It is politically neutral with the Convener and Depute Convener being selected from either different parties or being non-affiliated. The role of the Convener is undertaken from outwith the Administration and Party Whips do not apply. The Board reports to the full Council. 6.3 There is a wide-ranging set of arrangements to support the running of the Council in place and these are reassessed each year by Internal Audit and reported through the Board. It should be noted that the Council’s external audit arrangements have never flagged any material issues with governance arrangements in the Council, however, there are always opportunities to improve and strengthen governance arrangements. 6.4 The Terms of Reference for the Board differ from other Policy Board as there is no general delegation on specific service performance monitoring. The Board has specific delegations:- • Audit: Including acting as the Council’s Audit Committee • Corporate Governance: The Council’s code of corporate governance • Risk Management: Including approval of the risk management strategy • Monitoring and Reviewing Service Delivery Performance, Policies and Practices • Community Leadership through Monitoring of Other Public Bodies • Standards and Ethics: in relation to Elected Members • Written Intimations: Specific requests from Members of the Board Page 185 of 192
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7 Audit, Risk & Scrutiny Board Activity and Issues considered by the Board during 2024/25 7.1 Audit of Accounts - The Board at a special meeting held on 22 October 2024 considered a report relative to the audit of the Council’s 2023/24 accounts. The report intimated that the 2023/24 unaudited Annual Accounts were approved at the meeting of the Council held on 27 June 2024. Each year the Council's appointed external auditors carry out an audit of the Council’s financial statements and provide an opinion as to whether the statements provide a true and fair view of the financial position of the Council and its income and expenditure for the year; and whether they had been prepared in accordance with the relevant regulations. The report advised that there was one material adjustment made to the annual accounts over the course of the audit in relation to an amendment to the value of the Council’s pension asset disclosed in the 2022/23 Balance Sheet, owing to the exclusion of unfunded liabilities. Other minor and presentational changes were also agreed. 7.2 Annual Internal Audit Plan 2025/26 – The Board at the meeting held on 17 March 2025 agreed a risk-based internal audit plan for 2025/26. The plan considered the outcomes of the internal corporate and service risk identification and evaluation processes, and the current business environment. In addition to undertaking work which would provide assurance on the robustness of key internal controls, the plan sought to reflect the key priorities and challenges for the Council. The report set out the methods that had been employed to facilitate production of the Plan and the influencing factors that had been considered in the assessment of the current business environment and the priority areas of audit. Progress on the 2024/25 annual audit plan and summaries on the findings and conclusions of each audit assignment were reported to the Board on a quarterly basis. 7.3 External Audit and External Audit Plan 2023/24 – The Board at the meeting held on 17 March 2024 considered a report which outlined Azets’ approach to the audit of the 2024/25 annual accounts and the Coats Observatory to assess whether they provided a true and fair view of the financial position of the Council, and whether they had been prepared in accordance with proper accounting practice. The plan outlined the responsibilities of Azets and the Council, their assessment of key challenges and risks and the approach and timetable for completion of the 2024/25 audit. At the meeting of the Board on 23 September 2024, Azets, the External Auditor, submitted a Best Value Thematic report as part of the annual audit process. The report noted that the Accounts Commission had directed auditors to report on workforce innovation and how councils responded to workforce challenges. The report outlined the external auditors’ (Azets) findings in relation to questions posted by the Audit Commission. Key messages were highlighted and findings and suggested areas for improvement were detailed. The report also included an indication of planned management actions in response to the recommendations made by Azets. Page 186 of 192
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7.4 Summary of Internal Audit Activity in Partner Organisations - Members of the Audit, Risk & Scrutiny Committee expressed an interest in the outcomes of audits undertaken in partner organisations. A proposed revision to the Audit, Risk & Scrutiny Board’s Terms of Reference, to facilitate this, was agreed at a meeting of the Council on 4 May 2024. The Board considered quarterly reports which provided Members with a summary of the internal audit arrangements within each partner body. 7.5 Internal Audit Findings – The Board considered quarterly reports on the findings of internal audit in terms of national guidance produced by CIPFA on the implementation of audit committee principles in Scottish local authorities, in line with which internal audit submitted regular reports on the findings of audit work to the Board based on the work of internal audit and detailing the key issues arising. 7.6 Internal Audit and Counter Fraud Progress and Performance – The Board considered regular reports which detailed progress and performance in terms of delivery of the audit plans for the internal audit and counter fraud teams. The Director of Finance & Resources had set annual targets to demonstrate continuous improvement. In terms of counter fraud, due to the diverse nature of fraud referrals, no formal performance targets had been established and the outcomes from investigations were monitored and reported on a regular basis by the Council’s management. 7.7 Actions Monitoring Report - Dargavel Primary School – The Board, at meetings held on 20 May, 19 August, 23 September and 4 November 2024 considered action monitoring reports relating to Dargavel Primary School. Following the findings of an independent review into the circumstances of the errors in planning and delivery of primary school provision in the Dargavel area, a SMART action plan had been developed which detailed the Council’s response. Each report provided an update in relation to the Bowles independent review report, the Accounts Commission S.102 report, and the actions related to the report of the Cross-Party Working Group. At the Board meeting of 4 November 2024, the Board agreed to receive periodic reports concerning school roll projections and learning estate planning over the whole Council area and the associated financial impacts of those matters. 7.8 Strategic, Corporate and Service Risks – The Board, at meetings held on 20 May and 4 November 2024, considered the latest position in managing the Council’s risks entering the respective quarters of the financial year. 7.9 Annual Complaints Handling 2024/25 – The Board at the meeting held on 20 January 2025 considered a report which detailed complaints received by the Council from 1 April 2023 to 31 March 2024 and how this information had been used to ensure that the Council delivered high quality, efficient and responsive services. A summary was included of the numbers and types of complaints received; responded to within timescales; customer satisfaction monitoring; and key complaint areas including what was being done to address the issues raised. The report advised that 10,025 complaints had been received in 2023/24 compared with 9,155 in 2022/23. The report detailed the performance on key indicators, and highlighted improvements made to the complaints handling process over the past year to ensure that complaints were handled well. Page 187 of 192
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7.10 Corporate Governance – The Board, at its meeting held on 17 March 2025 considered a report by the Chief Auditor which reviewed the adequacy and effectiveness of the revised Local Code of Corporate Governance. Internal Audit carried out a sample check of the evidence used to demonstrate compliance and confirmed that the Council complied with the requirements of the Local Code of Corporate Governance. In addition, it was evident that the Local Code had been subject to review and updates in line with developments in best practice and any revised Council Policies. At the same meeting on 17 March 2025 the Audit, Risk & Scrutiny Board considered a report by the Chief Executive which reviewed the Council’s Local Code of Corporate Governance 2024 and provided evidence of how the Council complied with the Code. The evidence presented within the report demonstrated that strong governance arrangements had remained and were in place within the Council, and that Councillors and Officers were working together to lead and manage the Council in order to provide vital public services. Annual Reports by other Bodies 7.11 Audit Scotland Reports – during the period covered by this report, there were six reports submitted from Audit Scotland: Local Government in Scotland – The National Fraud Initiative in Scotland 2024; Tackling Digital Exclusion; A summary of a recent Audit Scotland Report on Transformation in Councils; Alcohol and Drugs Services; and Local Government Financial Bulletin 2023/24 Each report highlighted key points and the Council’s position where available. 7.12 Scottish Public Services Ombudsman (SPSO) – Annual Report 2023/24 – The Board at the meeting held on 20 January 2025 considered a report which highlighted that the health sector was the sector which the SPSO received most complaints, with local authority cases receiving the second highest number. The report advised that information received separately from the SPSO indicated that the number of complaints determined by the SPSO was 54, compared with 35 in 2022/23. The report noted that there were 58 cases received (these included cases carried forward from the previous year). Of the 54 complaints determined during the period, one went to investigation stage. 8 Annual Programme of Reviews 8.1 The guidelines suggest that in relation to (a) scrutiny of service delivery and performance and (b) monitoring and reviewing service delivery, performance, policies and practices, the Board may select particular areas for investigation as part of its annual programme, thereafter making recommendations to the Council. 8.2 In relation to the Council's role in community leadership, the guidelines recognise that this is not clear cut and requires to be considered carefully to ensure that the respective functions and responsibilities of other public bodies are not compromised but that the Board allows the Council to provide a forum for an informed public debate on these issues. Page 188 of 192
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Current Reviews 8.3 The 2024/25 Annual Programme was agreed at the Audit, Risk & Scrutiny Board on 20 May 2024. The following reviews went forward as part of the Annual Programme: • Neighbour Disputes; • Lack of house and garden maintenance by some tenants and residents; and • Lead Piping in Public and Private Housing in Renfrewshire. 8.4 The review on neighbour disputes was presented to the Board on 23 September 2024 and noted by Council on 12 December 2024. 8.5 The review of lack of house and garden maintenance by some tenants and residents is currently underway by Lead Officer Maurice Gilligan and Members will receive a briefing on his findings at the Audit, Risk & Scrutiny Board to be held on 18 August 2025. Future Programme of Reviews 8.6 The Lead Piping in Public and Private Housing in Renfrewshire review is still outstanding and should be added to the list of Reviews for 2025/26. 8.7 The External Auditors have suggested that in relation to the scrutiny of service delivery and performance, that the Audit, Risk & Scrutiny Board select particular areas for investigation as part of its annual programme. At the annual assessment/development session held in 2024 it was agreed that officers would assist Members to develop the Board’s annual programme of reviews to ensure that due consideration was given to the corporate risks and priorities. 8.8 At a development session held for Members of the Audit, Risk & Scrutiny Board on Friday 16 May 2025 consideration was given to strategic and corporate risks and Council priorities to inform the development of the annual programme of reviews. The outcome of this development session will be reported to the next Audit, Risk & Scrutiny Board to be held on 18 August 2025. 8.9 It should be noted that Members still have the ability to submit written intimations to the Board to consider matters they would like reviewed. 9 Delivering Effectiveness and Strengthening the Audit Board 9.1 A wide range of briefings and other training was offered to Elected Members during 2024/25. A training record is kept by Committee Services. Topics of particular relevance to the Scrutiny & Audit committee included: Page 189 of 192
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Audit, Risk & Scrutiny Committee briefings Date No. of Members attending Member’s Attendance Cyber Security 20 May 2024 9 Andy Doig, McDonald, Adam, Gilmour, Gray, Hughes, Innes, J MacLaren and Smith Governance Arrangements for City Regions 19 August 2024 9 Andy Doig, McDonald, Adam, Gilmour, Gray, Hughes, Innes, J MacLaren and Smith Development Session on Financial Management and an Overview of Financial Reporting 18 November 2024 9 Adam, Andy Doig, Gilmour, Gray, Hughes, Innes, J MacLaren, McDonald and Smith. Annual self-assessment of the operation of the Audit Board against the CIPFA Position Statement and Audit Committee Guidance. 16 May 2024 - - Governance arrangements and the value of good governance 19 May 2025 - - The role of External Audit 19 May 2024 - - 9.2 The Guidelines for Operation of the Audit, Risk & Scrutiny Board - Role of Members, was amended in 2024 to recommend that all Members of the Audit, Risk and Scrutiny Board undertake an annual assessment of knowledge and skills which would be used to develop an annual training and development programme, as recommended in the CIPFA guidance. The Terms of Reference and the Guidelines for the Operation of the Audit, Risk & Scrutiny Board were also updated to formalise this change. 9.3 As a consequence, the annual self-assessment of the operation of the Audit Board against the CIPFA Position Statement and Audit Committee Guidance was undertaken by officers on Friday 16 May 2025 and the outcome will be reported to a future meeting of this Board. 9.4 The development session on 16 May 2025 looked in depth at: • CIPFA Guidance on Audit Committees • 2024 Action Plan Update • 2025 Self Assessment • Members Development Programme 9.5 Where individual Members indicated specific development requirements, it has been agreed that the Chief Auditor will arrange for one-to-one meetings to determine how best to support each Members development. 9.6 During the week of 7 October 2024 Members undertook a briefings and skills workshops. The development programme included examining the latest guidance in the Local Code of Conduct for Councillors. Page 190 of 192
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9.7 It should be noted that the capabilities of new Members of the Board are developed through formal development, and focuses on providing new Members with the necessary knowledge and skills to effectively contribute to their roles. This programme aims to ensure Members understand their responsibilities, the council's structure, and the Audit, Risk & Scrutiny Board's specific functions. Key components of the induction programme include: • Understanding of the Board’s functions: • Review of relevant legislation and protocols: • Training on audit and risk management principles: • Understanding of scrutiny processes: • Briefings on key policies and procedures: Implications of the Report 1. Financial – none. 2. HR & Organisational Development – none. 3. Community/Council Planning – none. 4. Legal – as set out in the report 5. Property/Assets – none. 6. Information Technology – none. 7. Equality & Human Rights The Recommendations contained within this report have been- assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – none. 9. Procurement – none. 10. Risk – none. 11. Privacy Impact - none 12. Climate Risk - none 13. Cosla Policy Position – none. 14. Children’s Rights – none Page 191 of 192
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List Of Background Papers • Cross Party Working Group Review of Governance Arrangements – Council, 29 February 2024 • CIPFA Audit Committee Guidance – Self Assessment and Action Plan – Audit, Risk & Scrutiny Board, 24 March 2024. • Guidelines for Operation of the Audit, Risk & Scrutiny Board Author: Carol MacDonald, Senior Committee Services Officer, Finance & Resources. email: carol.macdonald@renfrewshire.gov.uk Page 192 of 192