Agenda Document Pack - Risk and Audit Scrutiny Committee - 22/08/2023
South Lanarkshire Council · 22 August 2023
Back to Risk and Audit Scrutiny Committee — 22 August 2023 and its agenda
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Council Offices, Almada Street Hamilton, ML3 0AA Monday, 14 August 2023 Dear Councillor Risk and Audit Scrutiny Committee The Members listed below are requested to attend a meeting of the above Committee to be held as follows:- Date: Tuesday, 22 August 2023 Time: 10:00 Venue: Hybrid - Committee Room 1, Council Offices, Almada Street, Hamilton, ML3 0AA The business to be considered at the meeting is listed overleaf. Yours sincerely Cleland Sneddon Chief Executive Members Elaine McDougall (Chair), Mary Donnelly (Depute Chair), Mathew Buchanan, Alistair Fulton, Ross Gowland, Celine Handibode, Cal Johnston-Dempsey, Susan Kerr, Richard Lockhart Substitutes Colin Dewar, Gavin Keatt, Monique McAdams, Helen Toner 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of the meeting of the Risk and Audit Scrutiny Committee held on 27 June 2023 submitted for approval as a correct record. (Copy attached) 3 - 8 Item(s) for Noting 3 Internal Audit Activity as at 4 August 2023 Report dated 4 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 9 - 14 4 Fraud Statistics Annual Report 2022/2023 Report dated 1 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 15 - 20 5 Year End Insured Risks Report – 2022/2023 Report dated 4 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 21 - 32 6 Forward Programme for Future Meetings Report dated 1 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 33 - 36 Urgent Business 7 Urgent Business Any other items of business which the Chair decides are urgent. For further information, please contact:- Clerk Name: Elizabeth-Anne McGonigle Clerk Telephone: 07385403101 Clerk Email: elizabeth-anne.mcgonigle@southlanarkshire.gov.uk 2
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RISK AND AUDIT SCRUTINY COMMITTEE Minutes of meeting held via Confero and in Committee Room 1, Council Offices, Almada Street, Hamilton on 27 June 2023 Chair: Councillor Elaine McDougall Councillors Present: Councillor Mary Donnelly (Depute), Councillor Alistair Fulton, Councillor Ross Gowland, Councillor Cal Johnston-Dempsey, Councillor Susan Kerr, Councillor Richard Lockhart Councillors' Apologies: Councillor Mathew Buchanan, Councillor Celine Handibode Councillor Also Present: Councillor Gerry Convery (for items 3 and 4) Attending: Chief Executive’s Service C Sneddon, Chief Executive (for items 3 and 4) Finance and Corporate Resources P Manning, Executive Director; Y Douglas, Audit and Compliance Manager; G McCann, Head of Administration and Legal Services; E-A McGonigle, Administration Officer; F Morrison, Revenues and Benefits Manager; J Taylor, Head of Finance (Strategy); L Wyllie, Administration Assistant 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Risk and Audit Scrutiny Committee held on 23 May 2023 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. Councillor Gowland entered the meeting after consideration of the above item of business 3 Internal Audit Annual Assurance Report 2022/2023 A report dated 12 June 2023 by the Audit and Compliance Manager (Finance and Corporate Resources) was submitted providing:- a summary of progress and performance of Internal Audit for the financial year 2022/2023 an opinion on the adequacy and effectiveness of the Council’s framework of governance, risk management and control systems based on audit work undertaken in 2022/2023 Details were given on:- Internal Audit performance Council-wide performance in relation to the delivery of audit actions 2 3
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workload analysis links to the Council’s objectives and top risks management of fraud risks areas of assurance areas of external reliance The UK Public Sector Internal Audit Standards Advisory Board had issued guidance around conformance with the Public Sector Standards which had shaped the Council’s internal audit approach in 2022/2023 which aimed to:- provide real-time advice and insight in the development of new systems and controls ensure that core internal audit work remained risk-based and relevant and continued to inform longer term planning around risks allow the regular reporting of activity to this Committee The overall opinion expressed on the Council’s control environment was that a reasonable level of assurance could be placed on the adequacy and effectiveness of the Council’s framework of governance, risk management and control arrangements for the year ended 31 March 2023. The Internal Audit findings would inform the Council’s 2022/2023 Annual Governance Statement. The Audit and Compliance Manager responded to members’ questions on various aspects of the report. The Committee decided: (1) that the performance of Internal Audit during 2022/2023 be noted; (2) that the overall findings from internal audit work be noted, and that it be approved that those would inform the Council’s 2022/2023 Annual Governance Statement; and (3) that the level of assurance on the Council’s control environment be noted. [Reference: Minutes of 22 June 2022 (Paragraph 2)] 4 Annual Governance Statement for 2022/2023 and Significant Governance Areas Quarter 4 Progress Report A report dated 9 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted on the Annual Governance Statement for 2022/2023 and progress against significant governance areas identified within the 2021/2022 Annual Governance Statement at Quarter 4. Each year, the Council undertook a review of the governance arrangements required to support its financial and operational controls. This review provided the basis for the Annual Governance Statement which was included in the Council’s Annual Report and Statement of Accounts. The Council’s governance assurance framework was detailed in Appendix 1 to the report. The resulting Annual Governance Statement for 2022/2023, attached as Appendix 2 to the report, provided information on the Council’s compliance during 2022/2023. The annual review of governance arrangements across the Council demonstrated sufficient evidence that the principles of delivering good governance in local government, contained in the Local Code of Corporate Governance, operated effectively and that the Council complied with its Code. Progress on the significant governance areas highlighted within the Annual Governance Statement 2021/2022 was attached as Appendix 3 to the report. 4
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The Head of Administration and Legal Services responded to a member’s question in relation to the significant governance area of recruitment and retention, particularly for staff working in Social Care. The Committee decided: (1) that the Annual Governance Statement, attached as Appendix 2 to the report, which would be included in the 2022/2023 Annual Report and Statement of Accounts, be approved; and (2) that the progress against the significant governance areas identified within the Annual Governance Statement 2021/2022, attached as Appendix 3 to the report, be noted. [Reference: Minutes of 22 June 2022 (Paragraph 3)] 5 Unaudited Annual Accounts 2022/2023 A report dated 19 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted on the requirement for members to consider the Unaudited Annual Accounts of the Council and related Charitable Trusts, attached as appendices 1 and 3 to the report, by 30 June 2023. The Council’s Unaudited Annual Accounts detailed key information on the Council’s expenditure and income for the financial year ended 31 March 2023. The accounts also covered 3 Charitable Trusts managed by the Council, namely South Lanarkshire Council Educational Trust, South Lanarkshire Council Charitable Trust and the East Kilbride Information Technology Trust. The Group Accounts 2023, which were being finalised and, therefore, not included in the report were issued to members of the Committee prior to the meeting. The full Unaudited Annual Accounts would be circulated to all elected members following their submission to the auditor on 30 June 2022 and would be advertised as being available for public inspection on the Council’s website from that date. The information contained in the Unaudited Accounts took into account the final outturn position, as detailed in Appendix 2 to the report, which was approved at the Executive Committee meeting on 21 June 2023. Appendix 2 also provided an Expenditure and Funding Analysis, as required by the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Accounting Practice. Following the audit of the Accounts over the summer months, the Audited Annual Accounts would be brought back to the Committee at its meeting on 26 September 2023 for approval. The Head of Finance (Strategy) responded to a member’s question in relation to the Contingent Liability which had been included in the Unaudited Accounts for the Home Carers’ Job Evaluation. The Chair, on behalf of the Committee members, expressed appreciation of the work undertaken to prepare the Unaudited Accounts. The Committee decided: that the Unaudited Annual Accounts of the Council and related Charitable Trusts, to be submitted to Audit Scotland by the deadline of 30 June 2023, be noted. [Reference: Minutes of 22 June 2022 (Paragraph 4)] 5
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6 Internal Audit Activity as at 9 June 2023 A report dated 9 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted on work completed by Internal Audit during the period 6 May to 9 June 2023. Findings from internal audit assignments were reported to this Committee throughout the year and the last progress report was considered by this Committee on 23 May 2023. Key performance indicators, which reflected quality, on time and within budget for the period to 31 March 2023, were summarised in Appendix 1 to the report. A list of all assignments completed in the period 6 May to 9 June 2023 was provided in Appendix 2 to the report. A position statement for one of those assignments was provided in Appendix 3 to the report. As at 9 June 2023, 94% of the 2022/2023 Audit Plan was complete and 3 assignments were in progress at that date. Updates were also provided on:- the self-assessment for the Public Sector Internal Audit Standards (PSIAS) external review which had been passed to East Lothian Council. The review was in progress and the exercise should be concluded before the end of June 2023. The formal output would be reported to the next meeting of the Committee progress against the Audit Strategy which was a requirement of the PSIAS. Delivery of the 2022/2023 Strategy had been evidenced by the completion of the Internal Audit Plan in year, and monitored during the year by performance indicators which were regularly reported to the Committee The Committee decided: that the report be noted. [Reference: Minutes of 23 May 2023 (Paragraph 4)] 7 2022 National Fraud Initiative Exercise A report dated 12 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted on:- the matches that had resulted from the 2022 National Fraud Initiative (NFI) exercise the proposed target number of investigations to be undertaken in 2023/2024 The NFI matched similar data across public sector systems and identified possible inconsistencies. Those inconsistencies, known as matches, required to be investigated by participating public bodies with a view to detecting fraud. Until 2014, the focus of the initiative had alternated annually between a limited and a full exercise. The full exercise continued to be undertaken every 2 years, however, the limited Single Person Discount (SPD) exercise, where the electoral register and council tax data were compared to detect cases where Single Person Discount was being claimed and there was more than one person over 18 in the household, could now be carried out annually. The 2022 NFI had been a full exercise and involved Council wide comparisons including:- housing benefits blue badge holders Council Tax Reduction Scheme payroll housing tenants waiting lists procurement creditors Council tax SPD 6
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Records had also been matched to the Department for Work and Pensions’ deceased persons’ record. Details were given on the results of the 2022 exercise which, for the Council, highlighted that:- at 22 May 2023, a total of 26,036 matches had been identified and, of those, it was intended to investigate an interim target of 3,065 matches for the 9 matched areas, 5 categories had a decrease and 4 an increase in matches:- the greatest number of matches related to Council Tax Reduction (CTR), namely to pensions the greatest increase was the number of matches of SPD to the Electoral Register (which indicated multiple residents) the number of blue badges to deceased persons had also increased but could be reflective of a timing issue work to investigate the matches identified within the NFI exercise would reflect the review work already ongoing to avoid duplication and ensure investigation resources were used effectively the deadline for investigation was 31 December 2023 and update on progress would be reported to the Committee during 2023/2024 The following information was provided in appendices 1 to 3 to the report respectively:- details of the matched areas in the 2022 exercise a comparison of 2020 and 2022 matches a detailed breakdown of the target investigations for 2023/2024 The Audit and Compliance Manager responded to a member’s question in relation to the Body that conducted the initial matching exercise and whether there were feedback mechanisms which could potentially allow the extremely high initial numbers of matches to be improved. The Committee decided: that the results of the 2022 NFI exercise be noted. [Reference: Minutes of 27 September 2022 (Paragraph 7)] 8 Audit Scotland Report: ‘Resourcing the benefit service – A Thematic Study’ A report dated 1 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted providing a summary of the Audit Scotland Report ‘Resourcing the benefit service – A Thematic Study’ released in February 2023. The Housing Benefit scheme helped customers pay their rent if they were unemployed, on a low income or claimed benefits. It was administered by councils on behalf of the Department for Work and Pensions (DWP). Since the DWP introduced Universal Credit in 2013, there had been many changes to councils’ Benefit Services. As more claims for housing costs were processed by the DWP, to protect jobs and retain knowledge and expertise, most councils had expanded the remit of the benefit service to carry out other financial assessments, such as free school meals, school clothing grants, education maintenance awards and applications to the Scottish Welfare Fund. 7
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The thematic study had focused on resourcing, the work of the Benefit Service and the processing of Housing Benefit claims. The study aimed to provide wider context on the impact on service delivery and performance levels. Audit Scotland had invited all 32 Scottish councils to participate in the study by completing an online questionnaire and South Lanarkshire Council was one of 28 councils that participated. The data and analysis in the Audit Scotland report was based on the questionnaire responses and had not been independently validated, with the exception of claims processing performance, which was validated against DWP published data. Since 2011, the performance of a council’s Housing Benefit Service had primarily been assessed by Audit Scotland using the DWP’s Speed of Processing performance indicator, which was the average number of days that councils took to process new claims and change events. The resourcing of council benefit services was analysed in the report under the following headings:- Workloads Resources Caseloads Call handling and personal callers Speed of processing Information was provided on Audit Scotland’s recommendations, together with an assessment of the position in South Lanarkshire Council. The Depute Chair, on behalf of the Committee, expressed gratitude at the robust and timely manner in which the Council’s Benefit Service carried out their duties. The Committee decided: that the key messages and recommendations in the Audit Scotland report ‘Resourcing the benefit service – A Thematic Study’ be noted. 9 Forward Programme for Future Meetings A report dated 2 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted on the outline forward programme for the meetings of the Risk and Audit Scrutiny Committee to 11 June 2024. As part of future arrangements, members were invited to suggest topics for inclusion in the Committee’s forward programme. The Committee decided: that the outline forward programme for the meetings of the Risk and Audit Scrutiny Committee to 11 June 2024 be noted. [Reference: Minutes of 23 May 2023 (Paragraph 8)] 10 Urgent Business There were no items of urgent business. 8
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Report Agenda Item Report to: Risk and Audit Scrutiny Committee Date of Meeting: 22 August 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Internal Audit Activity as at 4 August 2023 1. Purpose of Report 1.1. The purpose of the report is to:- update the Committee on progress of the Internal Audit service in the period 10 June to 4 August 2023 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that progress be noted. 3. Background 3.1. Findings from internal audit assignments are reported to the Committee throughout the year. The last progress report to the Committee was 27 June 2023 and reported on work completed in the period 6 May to 9 June 2023. This report covers all work completed in the period 10 June to 4 August 2023. Performance information is also included. 4. Delivery of the Internal Audit Plan: Progress 4.1. As at 30 June 2023, 6% of the 2023/2024 Audit Plan was complete to draft report stage with a further eighteen assignments in progress. 4.2. Key performance indicators reflecting quality, on time and within budget for the 2023/2024 Internal Audit Plan (at 30 June 2023) are summarised in Appendix 1 together with explanations. Performance across all indicators is satisfactory. 4.3. Appendix 2 lists all assignments completed in the period 10 June to 4 August 2023 together with a summary of overall assurances from each area of work. 4.4. Members are asked to note progress. 5. Glasgow City Region City Deal – Internal Audit Plan 2022/2023 and 2023/2024 5.1. At the August 2023 Cabinet meeting of the Glasgow City Region City Deal, audit reports were presented on Programme, Skills, Knowledge and Experience Arrangements along with the Internal Audit Annual Report and Annual Governance Statement 2022/2023. A link to these reports can be found here. 5.2. The report on Programme, Skills, Knowledge and Experience Arrangements sought to obtain assurance that adequate arrangements were in place for the training and handover of skills and experience when key officers leave or move post. Additionally, 3 9
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governance arrangements were examined such as ensuring schemes of delegation are updated to reflect changes and effective document retention and management is in place to maintain audit trails and support officers in discharging their duties in relation to the Programme. 5.3. The audit concluded that key controls were in place and generally operating effectively with the roles and responsibilities of officers established, documented, and communicated to relevant officers. It was found that key procedures and guidance were kept up to date to ensure they accurately reflect current working practices. Business case documentation was confirmed to be in place which will identify skills or experience gaps within City Deal projects and processes have been established to address gaps should they develop over the course of a project. Each of the Member Authorities examined had their own succession planning arrangements and the Project Management Office offers appropriate training to Member Authority staff. An approved scheme of delegation is in place and subject to an annual review by the Glasgow City Region Cabinet. The expected record keeping arrangements are clearly set out within the Programme Management Toolkit. 5.4. The second report presented to the Cabinet in August 2023 was the Internal Audit Annual Report and Annual Governance Statement 2022/2023. This report provided a positive audit opinion for the year ended 31 March 2023 based on the audit work undertaken and the assurances provided by member authorities. 6. Public Sector Internal Audit Standards (PSIAS) – External Review 6.1. The external review has concluded and a final report will be issued within the next month. As previously reported, there have been no significant findings to date and the function is anticipated to be assessed as continuing to generally conform with the requirements of the PSIAS. 7. Progress Against Strategy 7.1. The PSIAS require progress against the audit strategy to be monitored and reported to the Committee as part of regular monitoring reports that are presented at each meeting. 7.2. Delivery of the strategy in 2023/2024 will be evidenced by the completion of the Internal Audit Plan in-year and will be monitored through the performance indicators regularly reported to the Committee. 8. Employee Implications 8.1. There are no employee issues. 9. Financial Implications 9.1. A breakeven position for 2023/2024 is forecast at the end of the financial year for the Internal Audit section. 10. Climate Change, Sustainability and Environmental Implications 10.1 There are no Climate Change, Sustainability and Environmental implications relating to this report. 11. Other Implications 11.1. The main risks to the delivery of the Audit Plan are, generally, vacancies and team up-skilling requirements, unforeseen service demands and delays with client sign-off. These are mitigated by coaching and training, regular meetings and escalation processes as well as inclusion of contingency time within the annual plan. The risk of significant, subsequent amendments to the Plan, arising from a change in the 10
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Council’s priorities or risks, are mitigated by regular re-assessment of capacity and Audit Plan content to allow incremental adjustments to be made as the year progresses. 11.2. There are no implications for sustainability in terms of the information contained in this report. 12. Equality Impact Assessment and Consultation Arrangements 12.1 There is no requirement to equality assess the contents of this report. 12.2. Heads of Service are consulted on each and every audit assignment. Paul Manning Executive Director (Finance and Corporate Resources) 4 August 2023 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Risk and Audit Scrutiny Committee - 2023/2024 Internal Audit Plan, 7 March 2023 Risk and Audit Scrutiny Committee - Internal Audit Activity as at 9 June 2023, 27 June 2023 List of Background Papers Figtree extracts of Action Plans Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Yvonne Douglas, Audit and Compliance Manager Tel:- 01698 452618 E-mail:- yvonne.douglas@southlanarkshire.gov.uk 11
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Key audit performance indicators as at 30 June 2023 Appendix 1 Indicator Numbers Percentage Target Comment Assignments delivered within budget 4/4 100% 80% Draft reports delivered within 6 weeks of file review 6/6 100% 80% 2023/2024 Audit Plan completed to draft by 30 April 2024 2/31 6% 100% 20/31 (65%) of 2023/2024 Audit Plan to draft stage or in progress at 30 June 2023. Internal Audit recommendations delivered on time n/a n/a 90% No audit actions have fallen due in the period to 30 June 2023. Client to agree findings and actions within 4 weeks of draft issue 3/3 100% 80% 12
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Assignments completed 10 June to 4 August 2023 Appendix 2 Job Number Assignment name Draft Issue Final Issue Assurance Info Current Year I821041 2022/2023 Annual Report 08/06/2023 27/06/2023 Provision of annual statement of assurance. I350108 Governance Statement 22/06/2023 27/06/2023 Review of 2022/2023 Resource Directors’ Statements of Assurance. I350109 Governance Statement City Deal 2022/2023 27/07/2023 27/07/2023 Provision of Statement of Assurance for City Deal 2022/2023. External Clients I921209 Lanarkshire Valuation Joint Board (LVJB) 2023/2024 Audit Plan 10/06/2023 10/06/2023 Reported to LVJB I944212 Integration Joint Board (IJB) Follow-Up 10/06/2023 10/06/2023 Reported to IJB I928219 LVJB 2022/2023 Annual Report 10/06/2023 10/06/2023 Reported to LVJB I931177 SEEMIS Audit Plan 05/06/2023 22/06/2023 Reported to SEEMIS I912222 South Lanarkshire Leisure and Culture (SLLC) Continuous Controls Monitoring (CCM) 2022/2023 26/07/2023 26/07/2023 Reported to SLLC 13
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Report Agenda Item Report to: Risk and Audit Scrutiny Committee Date of Meeting: 22 August 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Fraud Statistics Annual Report 2022/2023 1. Purpose of Report 1.1. The purpose of the report is to:- provide a summary of the fraud statistics for the year to 31 March 2023 and a comparison to the same period in 2022 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the contents of the report be noted. 3. Background 3.1. Collating and reporting fraud statistics and setting targets for improvement are considered best practice by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Association of Local Authority Risk Managers (ALARM). 3.2. This report provides information on the number, types and outcomes of fraud investigations within South Lanarkshire Council for the year to 31 March 2023 together with a comparison to the statistics for the same period in 2022. It includes all frauds reported to Internal Audit, benefit frauds during this period passed to the Department for Work and Pensions (DWP) for investigation and insurance losses resulting from a failure in internal controls or which have been investigated by Internal Audit. 3.3. Although the responsibility for housing benefit fraud investigations has transferred to the DWP Fraud and Error Service (FES), South Lanarkshire Council retains responsibility for the recovery of fraud overpayments from their own Housing Benefit claimants. Housing Benefit fraud data will, therefore, continue to be included within the fraud statistics reported as information is provided by FES. 3.4. Revenues and Benefits continue to deliver an annual programme of rolling reviews on Housing Benefit claimants based on risk-profiling to establish the most likely areas of benefit fraud or overpayment. Information is also obtained from Hi Majesty’s Revenue and Customs (HMRC) through Real Time Information (RTI) and DWP through the Housing Benefit Matching Service (HBMS). Where fraud is suspected, the case will be passed to FES for investigation and, if proven, returned to South Lanarkshire Council to pursue recovery. Irrespective of whether a fraud is proven or not, the Council takes steps immediately to recover any overpayment. 4 15
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3.5. The level of progress with all types of fraud investigations, which was impacted by the pandemic, has started to improve albeit re-establishing consistent timescales continues to be challenging. 4. Results 4.1. All concerns reported to Internal Audit are risk assessed with high risk areas investigated by Internal Audit, medium risks investigated by Resources and low risks registered for monitoring of trends. Internal Audit may also undertake joint investigations with Resources and the Fact-Finding team within Personnel Services depending on the nature of the fraud and the operational knowledge required. 4.2. Areas within the Council that have an inherently higher risk of fraud are considered for inclusion in the Annual Audit Plan. There have been no specific patterns or trends identified in 2022/2023 in addition to those already known. 4.3. An analysis of the fraud caseload for the year to 31 March 2023 and the comparative period in 2022 is detailed in Table 1. Table 1 - Fraud Caseload Status Year to 31/03/23 Year to 31/03/22 Nos. £000 Nos. £000 Cases open as of 1 April 148 120 133 150 Concerns reported during financial year 36 11 48 12 Department of Work and Pension referrals (32) (45) - - Caseload for the year 152 86 181 162 Cases closed in period (see Table 2) (16) (16) (33) (42) Work in progress at 31 March 136 70 148 120 4.4. Although cases reported in the year remain relatively low, a pattern of these coming primarily from suspected benefit fraud and theft has started to emerge again. Department of Work and Pension referrals have been removed from the above table to ensure the caseload reflects only those cases where a potential fraud has been identified by South Lanarkshire Council. 4.5. An analysis of closed cases in the year is detailed in Table 2:- Table 2 - Analysis of Closed Cases Source of fraud Year to 31/03/23 Year to 31/03/22 Nos. £000 Nos. £000 Founded allegation (see Table 3) 9 12 15 30 Insufficient information 1 0 3 0 Unfounded allegations 6 4 11 2 Time Delay - - 4 10 Total 16 16 33 42 4.6. The majority of the cases closed in the period were founded and related to thefts. 4.7. An analysis of founded allegations is detailed in Table 3:- 16
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Table 3 – Analysis of Founded Allegations Source of fraud Year to 31/03/23 Year to 31/03/22 Nos. £000 Nos. £000 External 7 7 14 11 Internal 1 0 0 0 Benefits 1 5 1 19 Total 9 12 15 30 4.8. One case related to a theft by a South Lanarkshire Council employee which was investigated and passed to Personnel Services for appropriate action to be taken under the Council’s disciplinary procedures. 4.9. Minimal costs have been incurred by Internal Audit in the year to 31 March 2023 with progress in concluding assignments being impacted by a re-direction of resources to assist with the implementation of Oracle Fusion, a major system upgrade of the Council’s human resources and financial management systems. 4.10. Time budgets and target completion timescales for investigations are set at the start of each audit and will vary depending on the nature of the investigation. These timescales have continued to be extended to reflect other Service priorities. 5. Improvements 5.1. On the conclusion of all internal investigations, an assessment is made on whether any improvement actions are necessary. If required, an improvement plan will be issued containing recommended actions. These improvement plans are agreed with the relevant Heads of Service and the actions followed up by Internal Audit to ensure implementation and that gaps in controls have been addressed. Outcomes for concluded investigations are reported to the Risk and Audit Scrutiny Committee (RASC) as part of Internal Audit’s Annual Assurance Report. 6. Employee Implications 6.1. South Lanarkshire Council has a zero tolerance approach to fraud. All employees have a role to play in reducing fraud within the Council and should understand the risk of fraud faced by the Council, that fraud is serious and that it diverts resources from the delivery of the Council’s primary objectives. 7. Financial Implications 7.1. The investigation of fraud, participation in the National Fraud Initiative (NFI) exercise, and the collection and reporting of fraud statistics is carried out within existing resources. 7.2. One Audit Assistant (with overview and management from an Audit Adviser) is responsible for co-ordinating the NFI exercise. A total of 30 days was allocated in the 2022/2023 Internal Audit Plan to facilitate the upload of datasets and undertake an analysis of matches that were returned early 2023. 7.3 In addition, 123 audit days were allocated in 2022/2023 to anti-fraud activities. This time resourced a rolling programme of anti-fraud checks, reviewed the Council’s Conflict of Interest and fraud policies and developed an annual process for briefing within Resources. Progress has been made in all of these areas and the output was captured within the 2022/2023 Internal Audit annual assurance report. 17
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8. Climate Change, Sustainability and Environmental Implications 8.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 9. Other Implications 9.1. Fraud risk is recognised as one of the top risks facing South Lanarkshire Council. This risk is significant as it can adversely affect the delivery of Council objectives and erode valuable resources. It is, therefore, important that the risk of fraud is soundly managed. Fraud Risk Registers are in place within all Resources and are reviewed and updated in line with standard Risk Management procedures. 9.2. To ensure the Council is fully aware of, and prepared for emerging fraud risks, Internal Audit periodically carry out self-assessment exercises against good practice guidance in fraud management. This exercise in 2022/2023 has contributed to the review of fraud policies. 9.3. The Council’s Serious and Organised Crime (SOC) working group has developed an action plan to address the impact of COVID-19 on SOC and the challenges that this has brought to the Council in the short, medium and long term. The Group progress delivery of the various actions, revising if any new or emerging threats are identified through the pan Lanarkshire Multi Agency SOC Group. Updates on progress are presented to the Corporate Management Team (CMT) on a periodic basis. 9.4. The collection and reporting of fraud statistics assists in the management of fraud by identifying patterns and trends of fraud and areas of high risk where preventative controls should be concentrated. However, in order to do this effectively, fraud statistics must be complete. Internal Audit will continue to highlight areas where practice could be improved to ensure that all instances of potential and actual fraud are reported to Internal Audit. 9.5. There are no sustainability issues in terms of the information contained in this report. 10. Equality Impact Assessment and Consultation Arrangements 10.1. There is no requirement to undertake an equality impact assessment. 10.2. Consultation was not necessary for this report. Paul Manning Executive Director (Finance and Corporate Resources) 1 August 2023 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Risk and Audit Scrutiny Committee - Fraud Statistics 2021/2022 Annual Report, 27 September 2022 Risk and Audit Scrutiny Committee - Fraud Statistics Six Monthly Update, 7 March 2023 18
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List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Yvonne Douglas, Audit and Compliance Manager Ext:- 2618 (Tel: 01698 452618) E-mail:- yvonne.douglas@southlanarkshire.gov.uk 19
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Report Agenda Item Report to: Risk and Audit Scrutiny Committee Date of Meeting: 22 August 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Year End Insured Risks Report – 2022/2023 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose} highlight trends on an annual basis, for insurance claims against the Council [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the Insured Risks Report for year ended 31 March 2023 be noted; and (2) that proposed work to mitigate insurance hotspots, as detailed in section 9 of the report, be noted. [1recs] 3. Background 3.1. The Council has in place insurance policies for combined liability, motor, property and other miscellaneous risks. 3.2. The combined liability policy covers both public liability (PL) and employer’s liability (EL) claims. The PL section of the policy provides indemnity for the council’s legal liability to pay claims for death, injury and disease to third parties, as well as third party property damage, where the Council is found to be responsible for such losses. The EL section of the policy covers employee injury, disease, and death, where the council is deemed to be negligent. The self-insured excess for this policy was increased at renewal on 1 April 2022 from £0.250 million to £0.500 million to achieve a premium saving. 3.3. Motor insurance provides comprehensive cover for all Council vehicles and injuries resulting from motor incidents. The current self-insured excess for this policy is £0.150 million. 3.4. The property insurance policy covers damage/loss to Council buildings and assets. The current self-insured excess for this policy is £0.100 million for all claims, other than storm, flood and escape of water, where a £0.500 million excess applies. 4. Overview and analysis of data 4.1. Claims which fall under the main policies are handled by the Council’s Risk Management section and external claims handlers, Gallagher Bassett for combined liability claims, and TopMark for motor claims. The number and cost of these claims form the basis of this report and includes comparisons with previous years. 5 21
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4.2. Claims will continue to be intimated beyond the financial year end, with numbers increasing by approximately ten per cent due to those incidents that have taken place, but claims have not yet been reported to the Council. Up to date annual comparisons for the last 5 years are included at Appendix 1. The comparison shows an improving trend in claims numbers over the last 5 year period. Claims costs have fluctuated over the last 5 years. On average, over that period, the self-insured cost of claims per annum is £2.157 million, with 2022/2023 costs above average at £2.475 million. It should be noted, however, that last year’s figures are impacted by a single event property claim loss for escape of water/burst pipes. The self- insured cost of this loss is £0.500 million 4.3. In addition, to allow comparison of the position as at the year-end for the last 2 years, Appendix 2 compares the claim numbers and costs for incidents reported in 2021/2022 as at 31 March 2022 against incidents reported in 2022/2023, as at 31 March 2023. In effect, this compares the equivalent position and removes the impact of late claims notification for both years. 5. Insurance – total losses reported as at 31 March each year 5.1. Based on the comparisons in Appendix 2, the overall number of claims for all classes received to date for incidents occurring during 2022/2023 is 879. This is an increase of 57 claims (seven per cent) on the numbers reported last year for 2021/2022. 5.2. The total self-insured estimated cost of claims for 2022/2023 is £2.475 million. At the same time last year estimated claims costs for 2022/2022 was £2.242 million. This is an increase of £0.233 million (10 per cent), which is a result of the estimated cost of property, motor and employer’s liability claims increasing, with the position being offset by reduced estimated costs for public liability claims. Aside from the fluctuations across the different classes of cover, the main reason for the increase in costs last year is due to the escape of water/burst pipes claim, stemming from the severe cold weather in December 2022. Further details on this claim are included in section 8. 5.3. Based upon Appendix 2, sections 6 to 8 detail some of the key findings from the analysis of 2022/2023 claims. 6. Combined liability claims 6.1. The combined liability policy covers for both public liability (PL) and employer’s liability (EL) claims. The PL section of the policy provides indemnity for the Council’s legal liability to pay claims for death, injury and disease to third parties, as well as third party property damage, where the Council is found to be responsible for such losses. The EL section of the policy covers employee injury, disease, and death, where the Council is deemed to be negligent. The following sections detail the current position for 2022/2023 and makes comparisons against the position reported for 2021/2022 as at 31 March 2022. 6.2. 440 claims have been received for 2022/2023, with an estimated value of £0.948 million. 6.3. The number of claims received for 2021/2022 was 362, and the estimated settlement value of these claims was £0.821 million. The 2022/2023 figures represent a 22 per cent increase in claims numbers and a 15 per cent increase in claims costs. 6.4. There has been an increase of 46 claims for Community and Enterprise Resources and 33 for Housing and Technical Resources. These increases are as a result of more 22
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winter related property damage claims and water damage claims being received from members of the public. 6.5. The most significant reduction in estimated claims costs is in Community and Enterprise Resources, with a fall of £0.115 million. Social Work Resources has seen an increase of £0.093 million in estimated claim costs, Housing and Technical Resources an increase of £0.081 million, and Education Resources an increase of £0.054 million. 6.6. It is anticipated that overall value of outstanding claims will reduce as further claims are repudiated and closed off. 6.7. A further breakdown of public liability claims numbers and costs specifically for Roads and for other services within Community and Enterprise Resources is contained within Appendix 3. 7. Motor claims 7.1. The Council’s motor insurance policy provides comprehensive cover for all Council vehicles and injuries resulting from motor incidents. The following sections detail the current position for 2022/2023 and makes comparisons against the position reported for 2021/2022 as at 31 March 2022. 7.2. 395 claims have been received for 2022/2023, with an estimated value of £0.629 million. 7.3. At the same time last year, 391 motor claims had been received for incidents during 2021/2022, with an estimated settlement value of £0.591 million. This equates to a one per cent increase in numbers and a seven per cent increase in costs. The cost increase is at least in part, due to the rising costs of vehicle parts and repairs. 7.4. “At fault” incidents continue to be monitored. Table 1 compares the number and cost of “at fault” incidents for the last 5 years. Table 1 – Comparison of “at fault” incidents Number of vehicles on fleet Number of incidents Cost of incidents Number of Accidents per vehicle Average cost per incident 2018/2019 1,556 180 £347,275 0.12 £1,929 2019/2020 1,588 145 £367,909 0.09 £2,537 2020/2021 1,808 127 £328,250 0.07 £2,585 2021/2022 1,834 189 £432,672 0.10 £2,289 2022/2023 1,863 200 £471,263 0.11 £2,356 7.5. The number of “at fault” incidents has worsened, with 11 more incidents during 2022/2023, when compared to the previous year. At the same time, however, vehicle numbers on the Council’s fleet have increased by 29. 7.6. With 0.11 “at fault” incidents per vehicle for 2022/2023, this is above the average for the 4 previous years (0.10). 7.7. Following the roll out of a Challenging Driver Behaviour training programme for managers last year, it is hoped that the same course will be available for drivers later this year. 23
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8. Property claims 8.1. The property insurance policy covers damage/loss to council buildings and assets. This section of the report details the current claim position for 2022/2023 and makes comparisons against the status reported for 2021/2022 as at 31 March 2022. 8.2. 44 claims have been received for 2022/2023, with an estimated self insured value of £0.879 million. 8.3. The overall number of claims intimated for 2022/2023 has reduced by 25 from the previous year. This equates to a 36 per cent reduction and 44 is the lowest number of claims received in the last 5 years. The value of estimated claims intimated during 2022/2023 at £0.897 million is an increase of £0.068 million for 2021/2022. 8.4. The reason for the increase is due to the escape of water/burst pipes claim. Prior to Christmas last year, after a period of very cold weather followed by a sudden thaw, an exceptional number of burst pipes occurred in council properties. A large number of council houses suffered damage from the escape of water, with much lower numbers of education and general services properties affected. 8.5. The overall value of the escape of water/burst pipes claim for all affected properties is £2.500 million. In line with the current unsured excess for escape of water on the council’s property insurance policy, the first £0.500 million will require to paid from the Self Insurance Fund, with the property Insurers picking up costs above that level. 8.6. The number of house fires resulting in insurance claims has reduced by 15, from 28 incidents in 2021/2022 to 13 in 2022/2023. Costs over this period have reduced by £0.212 million, from £0.542 million in 2021/2022 to £0.330 million in 2022/2023. 8.7. With exception to the escape of water/burst pipes claim, the property claims position for last year is a positive one. 9. Insurance hotspots 9.1. The following areas of work have been progressed over the last year to mitigate insurance hotspots. Property A property insurer survey programme has been undertaken the Council’s insurers. A report was subsequently prepared detailing a number of actions to address fire and security risks. Continued awareness raising and advice for tenants in respect of council house fires, via the Housing News and social media. Awareness raising for tenants on how to avoid burst pipes and the importance of tenants contents insurance. Ongoing work of Security Co-Ordinator, undertaking surveys and identification of measures to improve security of Council properties, vehicles and assets. Motor Ongoing development ‘Challenging Driver Behaviour’ learn on line course for drivers. Continued fact-finding investigations into accidents. Combined Liability Health and safety/training review has been undertaken by the council’s claims handlers, Gallagher Bassett. 24
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Roads and Transportation Services have an ongoing trial of AI technology associated with managing the roads network. 9.2. Progress with implementation and effectiveness of actions will be reported back to the Committee, via future insured risks reports. 10. Employee Implications 10.1. Time and effort will continue to be required by Resource personnel to implement initiatives to mitigate insurance hotspots. 11. Financial Implications 11.1. Claims received to date, for incidents which occurred during 2022/2023 have an estimated self-insured cost of £2.475 million. It is reasonable to expect this value to increase due to incidents that have taken place but claims have not yet been received. 11.2. There is currently only one claim that occurred during 2022/2023 with an estimated above the Council’s uninsured excess limits. That is the escape of water/burst pipes claim. Therefore, based on claims intimated to date for incidents which occurred during 2022/2023, it is forecast that insurers will pay out an estimated £2 million for the escape of water/burst pipes claim. This is over and above the self-insured costs of £2.475 million. 11.3. During 2022/2023, a total of £1.857 million was paid out by the Council on all claims, irrespective of their incident date. For claims which occurred between 1 April 2022 and 31 March 2023, £0.179 million was paid out by the council. These costs include claims payments and other associated costs. 11.4. The total cost of loss for 2022/2023 was £4.546 million. This covers self insured claims costs, insurance premiums, and other costs for contracted insurance services. For 2021/2022 the total cost of loss was £4.396 million. 11.5. The balance in the insurance fund will require to be closely monitored to ensure adequate funds are available to meet known liabilities. This will be particularly important, given the increased level of self-insured risk taken for liability claims from 1 April 2022, with policy now carrying a £0.500 million uninsured excess. 12. Climate Change, Sustainability and Environmental Implications 12.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 13. Other Implications 13.1. The cost of insurance claims and premiums is linked to the council top risk ‘Reduction in external funding and fees/income received by the council, as well as increased financial pressures/demand for services; results in savings difficulties’. 13.2. Failure to adequately manage insurance hotspots is likely to lead to increased claims numbers, self-insurance costs and insurance premiums. This risk is mitigated through the insurance hotspots review and associated action plans and other risk management initiatives implemented by Resources. 14. Equality Impact Assessment and Consultation Arrangements 14.1. There is no requirement to carry out an impact assessment in terms of the proposals contained within this report. 25
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14.2. Consultation has taken place with Resource risk representatives. Paul Manning Executive Director (Finance and Corporate Resources) 4 August 2023 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Risk and Audit Scrutiny Committee – 2021/2022 Year End Insured Risks – 27 September 2022 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Craig Fergusson, Head of Finance (Transactions) Ext:- 4951 (Tel: 01698 454951) E-mail:- craig.fergusson@southlanarkshire.gov.uk 26
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Appendix 1 Full year claims numbers and values by Resource as at 31 March 2023. All claim types Number of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Community and Enterprise 585 634 518 512 478 Education 41 32 22 37 18 Finance and Corporate 0 2 2 1 1 Housing and Technical 406 393 260 292 276 Social Work 81 67 85 100 106 Total 1,113 1,128 887 942 879 Reported at individual year end 1,031 996 768 822 Cost of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Community and Enterprise £816,023 £1,227,903 £731,855 £1,067,519 £785,418 Education £129,148 £70,674 £184,137 £149,416 £128,098 Finance and Corporate £0 £50 £0 £8,000 £13,050 Housing and Technical £644,645 £1,355,073 £725,745 £1,282,907 £1,335,302 Social Work £318,808 £172,404 £354,470 £197,388 £213,121 Total £1,908,625 £2,826,104 £1,996,206 £2,705,229 £2,474,988 Reported at individual year end £2,113,302 £1,946,633 £2,009,739 £2,241,620 Combined Liability Number of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Community and Enterprise 323 400 306 276 278 Education 24 17 11 23 9 Finance and Corporate 0 1 2 1 1 Housing and Technical 227 227 165 163 143 Social Work 15 11 12 7 9 Total 589 656 496 470 440 Cost of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Community and Enterprise £480,504 £898,664 £359,075 £349,002 £413,682 Education £109,406 £66,966 £146,239 £144,114 £109,178 Finance and Corporate £0 £50 £0 £8,000 £13,050 Housing and Technical £138,385 £605,375 £370,930 £488,827 £318,637 Social Work £99,268 £139,225 £295,258 £124,045 £93,652 Total £827,563 £1,710,280 £1,171,502 £1,113,988 £948,199 Motor Number of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Community and Enterprise 225 202 189 213 186 Education 6 6 1 2 6 Finance and Corporate 0 1 0 0 0 Housing and Technical 138 121 56 94 112 Social Work 65 54 63 84 91 Total 434 384 309 393 395 27
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Cost of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Community and Enterprise £311,081 £294,299 £310,231 £502,413 £340,086 Education £7,364 £365 £1,163 £1,297 £3,237 Finance and Corporate £0 £0 £0 £0 £0 Housing and Technical £95,496 £188,106 £87,594 £135,689 £168,507 Social Work £216,480 £33,179 £58,152 £65,965 £117,668 Total £630,421 £515,948 £457,140 £705,363 £629,497 Property Number of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Community and Enterprise 37 32 23 23 14 Education 11 9 10 2 3 Finance and Corporate 0 0 0 0 0 Housing and Technical 41 45 39 35 21 Social Work 1 2 10 9 6 Total 90 88 82 69 44 Cost of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Community and Enterprise £24,438 £34,941 £62,548 £216,104 £31,650 Education £12,379 £3,343 £36,734 £4,005 £15,683 Finance and Corporate £0 £0 £0 £0 £0 Housing and Technical £410,764 £561,592 £267,221 £658,391 £848,158 Social Work £3,061 £0 £1,060 £7,378 £1,802 Total £450,642 £599,876 £367,563 £885,878 £897,293 28
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Appendix 2 Comparison of claims costs and numbers for claims occurring during the last 2 years as at their respective year ends All claim types Number of claims 2021/2022 as at 31 March 2022 2022/2023 as at 31 March 2023 Difference Difference Percentage Community and Enterprise 466 478 12 3% Education 22 18 -4 -18% Finance and Corporate 0 1 1 100% Housing and Technical 239 276 37 15% Social Work 95 106 11 12% Total 822 879 57 7% Cost of claims 2021/2022 as at 31 March 2022 2022/2023 as at 31 March 2023 Difference Difference Percentage Community and Enterprise £1,153,874 £785,418 -£368,456 -32% Education £60,329 £128,098 £67,769 112% Finance and Corporate £0 £13,050 £13,050 100% Housing and Technical £944,938 £1,335,302 £390,364 41% Social Work £82,480 £213,121 £130,641 158% Total £2,241,620 £2,474,988 £233,368 10% Combined liability Number of claims 2021/2022 as at 31 March 2022 2022/2023 as at 31 March 2023 Difference Difference Percentage Community and Enterprise 232 278 46 20% Education 18 9 -9 -50% Finance and Corporate 0 1 1 100% Housing and Technical 110 143 33 30% Social Work 2 9 7 350% Total 362 440 78 22% Cost of claims 2021/2022 as at 31 March 2022 2022/2023 as at 31 March 2023 Difference Difference Percentage Community and Enterprise £528,971 £413,682 -£115,289 -22% Education £55,027 £109,178 £54,151 98% Finance and Corporate £0 £13,050 £13,050 - Housing and Technical £236,695 £318,637 £81,942 35% Social Work £545 £93,652 £93,107 - Total £821,238 £948,199 £126,961 15% Motor Number of claims 2021/2022 as at 31 March 2022 2022/2023 as at 31 March 2023 Difference Difference Percentage Community and Enterprise 211 186 -25 -12% Education 2 6 4 200% Finance and Corporate 0 0 0 0% Housing and Technical 94 112 18 19% Social Work 84 91 7 8% Total 391 395 4 1% 29
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Cost of claims 2021/2022 as at 31 March 2022 2022/2023 as at 31 March 2023 Difference Difference Percentage Community and Enterprise £413,196 £340,086 -£73,110 -18% Education £1,297 £3,237 £1,940 150% Finance and Corporate £0 £0 £0 0% Housing and Technical £101,838 £168,507 £66,669 65% Social Work £74,557 £117,668 £43,111 58% Total £590,888 £629,497 £38,609 7% Property Number of claims 2021/2022 as at 31 March 2022 2022/2023 as at 31 March 2023 Difference Difference Percentage Community and Enterprise 23 14 -9 -39% Education 2 3 1 50% Finance and Corporate 0 0 0 0% Housing and Technical 35 21 -14 -40% Social Work 9 6 -3 -33% Total 69 44 -25 -36% Cost of claims 2021/2022 as at 31 March 2022 2022/2023 as at 31 March 2023 Difference Difference Percentage Community and Enterprise £211,707 £31,650 -£180,057 -85% Education £4,005 £15,683 £11,678 74% Finance and Corporate £0 £0 £0 0% Housing and Technical £606,405 £848,158 £241,753 40% Social Work £7,378 £1,802 -£5,576 -76% Total £829,495 £897,293 £67,798 8% 30
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Appendix 3 Public Liability – Community and Enterprise Resources Roads and other claims Number of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Total Roads claims - injury 74 79 70 57 32 312 Community and Enterprise Resources other - injury 13 10 8 9 7 47 Roads claims – property damage 181 252 179 160 197 969 Community and Enterprise Resources other – property damage 47 49 38 45 36 215 Total 315 390 295 271 272 1,543 Cost of claims 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Total Roads claims - injury £106,411 £610,346 £236,999 £228,534 £209,733 £1,392,023 Community and Enterprise Resources other - injury £39,275 £32,658 £15,759 £28,875 £41,117 £157,683 Roads claims – property damage £19,835 £28,265 £55,553 £29,247 £74,454 £207,353 Community and Enterprise Resources other – property damage £9,070 £11,827 £7,167 £4,277 £21,232 £53,573 Total £174,590 £683,096 £315,478 £290,933 £346,536 £1,810,633 *note number and cost of these public liability claims are also contained in appendix One. 31
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Report Agenda Item Report to: Risk and Audit Scrutiny Committee Date of Meeting: 22 August 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Forward Programme for Future Meetings 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise members of the forward programme for the meetings of the Risk and Audit Scrutiny Committee to 24 September 2024 invite members to suggest topics for inclusion in the Committee’s forward programme [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the report and the outline forward programme for the meetings of the Risk and Audit Scrutiny Committee to 24 September 2024, attached as an Appendix to the report, be noted. [1recs] 3. Background 3.1. As part of a range of improvement measures introduced as a result of Audit Scotland’s report on the Audit of Best Value and Community Planning (2009), an Action Plan was prepared. One of the actions was to include, as a standard agenda item, a list of items proposed for consideration at subsequent meetings of this Committee to provide an opportunity for members to inform future agendas. The outline forward programme to 24 September 2024 is attached, for members’ information, as an Appendix to the report. 4. Employee Implications 4.1. There are no employee implications. 5. Financial Implications 5.1. There are no financial implications. 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no Climate Change, Sustainability or Environmental implications in terms of the information contained within this report. 7. Other Implications 7.1. There are no risk implications in terms of the information contained within this report. 6 33
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8. Equality Impact Assessment and Consultation Arrangements 8.1. The report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 8.2. There was no requirement to undertake any consultation in terms of the information contained in this report. Paul Manning Executive Director (Finance and Corporate Resources) 1 August 2023 Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References Executive Committee 8 July 2009 List of Background Papers Audit Scotland Audit of Best Value and Community Planning Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Elizabeth-Anne McGonigle, Administration Officer Tel: 0738 5403101 E-mail:- elizabeth-anne.mcgonigle@southlanarkshire.gov.uk 34
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APPENDIX – RASC OUTLINE FORWARD PROGRAMME Meeting Date Item Responsibility 26 September 2023 (special) External Auditor’s Annual Report to South Lanarkshire Council 2022/ 2023 External Audit Audited Annual Accounts 2022/2023 Head of Finance (Strategy) 31 October 2023 Internal Audit Activity Report Audit and Compliance Manager Public Sector Internal Audit Standards (PSIAS) – External Assessment Audit and Compliance Manager Year End Risk Management Report 2022/2023 and Review of Council’s Top Risks 2023/2024 Head of Finance (Transactions) Audit Scotland Report – Local Government in Scotland 2022 Head of Communications and Strategy 30 January 2024 Internal Audit Activity Report Audit and Compliance Manager Performance and Review Scrutiny Forum Annual Update Head of Communications and Strategy Fraud Statistics Six Monthly Update 2023/2024 Audit and Compliance Manager 26 March 2024 Good Governance Update Internal Audit Activity Report 2022 NFI Exercise 2024/2025 Internal Audit Plan Head of Administration and Legal Services Audit and Compliance Manager Audit and Compliance Manager Audit and Compliance Manager 25 June 2024 Internal Audit Assurance Report 2023/2024 Audit and Compliance Manager Annual Governance Statement for 2023/2024 and Significant Governance Areas Quarter 4 Progress Report Head of Administration and Legal Services 35
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Unaudited Annual Accounts 2023/2024 Head of Finance (Strategy) Interim Management Report External Audit Internal Audit Activity Report Audit and Compliance Manager Audit Scotland – Financial Bulletin 2022/2023 Head of Finance (Strategy) Financial Resources Scrutiny Forum Activity Head of Finance (Strategy) 24 September 2024 External Auditor’s Annual Report to South Lanarkshire Council 2023/ 2024 External Audit Audited Annual Accounts 2023/2024 Head of Finance (Strategy) Internal Audit Activity Report Audit and Compliance Manager Year End Insured Risks Report 2023/2024 Head of Finance (Transactions) Fraud Statistics Annual Report 2023/2024 Audit and Compliance Manager N.B:-. Audit Scotland national studies and reviews will appear as a recurring item but the frequency and subject matter will vary according to their programme. 36