Document Pack - Audit Committee - 24 September 2025
West Dunbartonshire Council · 24 September 2025
Back to Audit Committee — 24 September 2025 and its agenda
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Agenda Audit Committee Date: Wednesday, 24 September 2025 Time: 10:00 Venue: Council Chambers, Clydebank Town Hall, Clydebank G81 2NT Contact: Lynn Straker, Committee Officer lynn.straker@west-dunbarton.gov.uk committee.admin@west-dunbarton.gov.uk Dear Member Please attend a meeting of the Audit Committee as detailed above. The business is shown on the attached agenda. Yours faithfully PETER HESSETT Chief Executive Page 1
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Distribution: Councillor Gordon Scanlan (Chair) Councillor Sophie Traynor (Vice Chair) Councillor Ian Dickson Councillor Michelle McGinty Councillor John Millar Councillor Lauren Oxley Councillor Martin Rooney Councillor Clare Steel All other Councillors for information Chief Executive Chief Officers Date of Issue: 10 September 2025 Page 2
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AUDIT COMMITTEE WEDNESDAY, 24 SEPTEMBER 2025 AGENDA 1 APOLOGIES 2 DECLARATIONS OF INTEREST Members are invited to declare if they have an interest in any of the items of business on this agenda and the reasons for such declarations. 3 MINUTES OF PREVIOUS MEETING 5 - 8 Submit for approval, as a correct record, the Minutes of Meeting of the Audit Committee held on 11 June 2025. 4 OPEN FORUM The Committee is asked to note that no open forum questions have been submitted by members of the public. 5 STRATEGIC RISKS 2022-2027 9 - 31 Submit report by Chief Officer – People and Technology providing an update on the strategic risks for 2022-2027. 6 INTERNAL AUDIT PLAN 2024/25 33 - 54 PROGRESS TO 31 JULY 2025 Submit report by Chief Officer – Resources advising of progress to 31 July 2025 against the Internal Audit Plan for 2024/25. 7 EXTERNAL AUDIT PROGRESS REPORT 55 - 63 Submit report by Chief Officer – Resources advising Members of the outcome of investigations into allegations and disclosures in line with public interest disclosure and business irregularities policies received by Internal Audit between 1 November 2024 and 31 March 2025. 8 2024/2025 TREASURY MANAGEMENT ANNUAL REPORT 65 - 80 Submit report by Chief Officer – Resources advising Members of the treasury function and its activities in 2024/25 and requesting that the Committee remits the report to the full Council for its approval. Page 3
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___________________________________________________________________ Page 4
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AUDIT COMMITTEE At a Meeting of the Audit Committee held in Civic Space, 16 Church Street, Dumbarton on Wednesday, 11 June 2025 at 2.00 p.m. Present: Provost Karen Murray Conaghan and Councillors Ian Dickson, Fiona Hennebry, John Miller, Martin Rooney, Gordon Scanlan, and Sophie Traynor. Attending: Peter Hessett, Chief Executive; Laurence Slavin, Chief Officer – Resources; Andi Priestman, Shared Service Manager – Audit and Fraud; Julie Slavin, Chief Financial Officer – HSCP; Carol Alderson, Finance Manager; Craig Wilson, Maintenance Manager; Andrew Brown, Senior Education Officer; Tom Reid, External Auditor – Forvis Mazars and Lynn Straker, Committee Officer. Apologies: Apologies for absence were intimated on behalf of Councillor Clare Steel. Councillor Gordon Scanlan in the Chair DECLARATIONS OF INTEREST It was noted that there were no declarations of interest in any of the items of business on the agenda. MINUTES OF PREVIOUS MEETING The Minutes of Meeting of the Audit Committee held on 19 February 2025 were submitted and approved as a correct record. OPEN FORUM The Committee noted that no open forum questions had been submitted by members of the public. INTERNAL AUDIT PLAN 2024/25 – PROGRESS TO 30 APRIL 2025 A report was submitted by Chief Officer – Resources advising Members of progress to 30 April 2025 against the Internal Audit Plan for 2024/25. Item 3 Page 5
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After discussion and having heard the Shared Service Manager – Audit and Fraud and the Maintenance Manager in further explanation of the report and in answer to Members’ questions, the Committee agreed to note the content of this report. PUBLIC INTEREST DISCLOSURES AND OTHER INTERNAL AUDIT INVESTIGATIONS 1 NOVEMBER 2024 TO 31 MARCH 2025 A report was submitted by Chief Officer – Resources advising Members of the outcome of investigations into allegations and disclosures in line with public interest disclosure and business irregularities policies received by Internal Audit between 1 November 2024 and 31 March 2025. After discussion and having heard the Shared Service Manager – Audit and Fraud and the Maintenance Manager in further explanation of the report and in answer to Members’ questions, the Committee agreed to note the content of this report. EXTERNAL AUDIT PROGRESS REPORT A report was submitted by Director of External Auditor – Forvis Mazars, providing an update on the External Audit Progress report. After discussion and having heard the External Auditor and Chief Officer - Resources in further explanation of the report and in answer to Members’ questions, the Committee agreed to note the External Audit Progress Report and note the update to the External Audit Strategy and Plan. EXTERNAL AUDIT ENQUIRIES – 2023/24 ACCOUNTS A report was submitted by Chief Officer – Resources informing Members of External Audit’s requirement for the provision of information regarding the Council’s approach to dealing with fraud, litigation, laws and regulations as part of their audit of the Council’s 2023/24 Statement of Accounts and 2023/24 Trust Accounts. After discussion and having heard the Chief Officer - Resources in further explanation of the report and in answer to Members’ questions, the Committee agreed:- (1) to consider the enquiries for those charged with governance for the 2023/24 Council Accounts and 2023/24 Trust Accounts; and (2) to approve the submission of the draft responses set out in Appendix 1 for the Council and appendix 2 for the Trust Funds to the Council’s external auditors. INTERNAL AUDIT ANNUAL REPORT TO 31 MARCH 2025 A report was submitted by Chief Officer – Resources advising Members of the work undertaken by Internal Audit in respect of the 2024/25 Annual Audit Plan and Page 6
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advising Members of the contents of the Assurance Statement given to Members of West Dunbartonshire Council, the Chief Executive and the Section 95 Officer (Chief Officer - Resources) in support of the Annual Governance Statement. This report outlines how audit assurances are obtained. After discussion and having heard the Chief Executive and the Shared Service Manager – Audit and Fraud in further explanation of the report and in answer to Members’ questions, the Committee agreed to note the contents of this report. ANNUAL REPORT ON THE AUDIT COMMITTEE A report was submitted by Chief Officer – Resources providing Members with the Audit Committee Chair’s 2024/25 Annual Report on the Audit Committee. After discussion and having heard the Shared Service Manager – Audit and Fraud and the Chief Officer - Resources in further explanation of the report and in answer to Members’ questions, the Committee agreed:- (1) to review and endorse the Chair’s Annual Report on the Audit Committee for 2024/25; and (2) that the report should be presented to a future meeting of the Council in line with best practice guidance. REVIEW OF INTERNAL AUDIT CHARTER A report was submitted by Chief Officer – Resources providing Members with the updated Internal Audit Charter (the Charter) for approval. It was noted the Charter defines the terms of reference for the Council’s Internal Audit function to carry out its role to enable the Chief Audit Executive to prepare the annual Internal Audit opinion on the adequacy of the Council’s overall control environment. After discussion and having heard the Shared Service Manager – Audit and Fraud in further explanation of the report, the Committee agreed to approve the revised Internal Audit Charter. CODE OF GOOD GOVERNANCE AND ANNUAL GOVERNANCE STATEMENT 2024/25 A report was submitted by Chief Officer – Resources advising Members of the outcome of the annual self-evaluation undertaken of the Council’s compliance with its Code of Good Governance and inviting Members to consider the Annual Governance Statement that will be published in the Council’s Abstract of Accounts. After discussion and having heard the Shared Service Manager – Audit and Fraud in further explanation of the report, the Committee agreed:- Page 7
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(1) to note the outcome of the recent self-evaluation process in considering how the Council currently meets the agreed Code of Good Governance, together with the issues identified and improvement actions; and (2) to consider the detail of the Annual Governance Statement and approve the actions identified by management to improve the internal control environment. TREASURY MANAGEMENT STRATEGY AND ANNUAL INVESTMENT STRATEGY A report was submitted by Chief Officer – Resources providing Members with the opportunity to further scrutinise the Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within. After discussion and having heard the Finance Manager in further explanation of the report and in answer to Members’ questions, the Committee agreed:- (1) to approve the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within; (2) to approve the continued use of the Asset Life Method (using either annuity or equal instalment) for the repayment of loan fund advances with the exception of spend to save schemes where the funding/income profile method could be used; (3) to approve the ability to continue to use countries with a sovereign rating of AA and above; (4) to note the removal of Lender Option Borrowing Option as an approved source of borrowing; and (5) to note the report will be referred to Audit Committee for further scrutiny. GLOBAL INTERNAL AUDIT STANDARDS A report was submitted by Chief Officer – Resources informing Members of the new Global Internal Audit Standards (UK public sector) that came into effect from 1 April 2025 and internal audit teams in the public sector will be working to implement these new internal audit standards by 31 March 2026. After discussion and having heard the Chief Officer – Resources and the Shared Service Manager – Audit and Fraud in further explanation of the report and in answer to Members’ questions, the Committee agreed to note the contents of this report and note that further update reports will be provided during 2025/26 in relation to the new Global Internal Audit Standards (UK public sector). The meeting closed at 2.58 p.m. Page 8
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – People & Technology Audit Committee - 24 September 2025 ___________________________________________________________________ Subject: Strategic Risks 2022-2027 1. Purpose 1.1 To provide an update on the strategic risks for 2022-27. 2. Recommendations 2.1 It is recommended that the Committee note: The strategic risks as detailed at Appendix 1. 3. Background 3.1 The Council’s 2022 – 2027 strategic risks were agreed by the Corporate Services and Audit Committees in November 2022. The appended risks have been reviewed with re-assessment undertaken before being reported to this committee. This report is submitted as agreed to Audit Committee on a bi- annual basis. 4. Main Issues Strategic Risk 4.1 In line with the Council’s Risk Management Framework, a re-assessment of the Strategic Risks has taken place as detailed within Appendix 1. Each risk is managed through internal controls, linked actions and associated milestones with the objective being to reduce or stabilise the level of risk through completion of linked actions over a period and/or ensure mitigation factors are adequate should the risks actually materialise. 4.2 Table 1 represents a risk dashboard that includes information on the original, current and target rating for each strategic risk, as well as an assessment of the current risk status. Each strategic risk is identified and supported by more detailed information available on a “drill-down” basis in Appendix 1. Six strategic risks, associated actions and milestones are met and are progressing as expected whilst getting closer to reaching their assigned targets. SR001, SR005, SR007, SR008, and SR011 are currently off target, which is explained in further detail below. Item 5 Page 9
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Table 1 Key Strategic Risk Information Strategic Risk Original Risk October 2022 Current Risk August 2025 Target Risk March 2027 Risk Status Rationale SR 001 Significant financial funding reductions/limitations from Scottish Government SR 002 Challenges in implementing broad- ranging school improvement to raise attainment and achievement SR 003 Maintaining Council Assets that are fit for purpose SR 004 Keeping abreast of developments in the innovative use of Information Technologies SR 005 Engaging positively with Residents, Communities & Partnerships SR 006 Challenges in protecting the Health and Safety of Employees and Others SR 007 Complexities in ensuring an appropriately resourced and resilient workforce Page 10
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Risk Methodology and Reporting 4.3 Each strategic risk is populated in Pentana in terms of the following template: Risk title and code; Description; Ownership; Potential effect; Measures of impact; Risk factors; Internal controls; Risk opportunity; and Linked actions. 4.4 Each risk has been scored using a “4 x 4” matrix for likelihood and impact in relation to: Current risk (with review dates set at pre-determined intervals); and Target risk (i.e. 31 March 2027 - the duration of the Strategic Plan). The risk descriptors used in the “4 x 4” matrix are as follows: SR 008 Threat of Cyber Attack SR 009 Challenges in delivering effective services in relation to Roads & Neighbourhoods SR 010 Failure to maintain Housing Stock SR 011 Inability to reduce carbon footprint in line with targets Page 11
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Likelihood Score Descriptor 1 Unlikely 2 Likely 3 Very likely 4 Certain Impact Score Descriptor 1 Minor 2 Moderate 3 Significant 4 Critical 4.5 For ownership, each strategic risk is “Managed By” a Chief Officer and “Assigned To” a Senior Officer. Strategic risks are also reported on a bi- annual basis to the Performance & Monitoring Review Group. Service Risk 4.6 Following the methodology in 4.3 to 4.4 above, each service has owned operational risk registers in Pentana (the Council’s performance system) which were reviewed as part of the 2025/26 service planning process. 4.7 Significant financial funding reductions/limitations from Scottish Government While there has been a cash increase in funding in 2025/26 this was fundamentally due to sizable increases in revenue being raised through taxation as part of the Autum 2024 UK Budget statement. This is not expected to be a recurring situation and therefore the Council will continue to be faced with significant real term funding reductions from the Scottish Government settlement. This coincides with a period where costs are continuing to rise in relation to social care, significant inflationary increases and continuing pay award pressures. Whilst there are ongoing discussions between the Scottish Government and Local Government aiming to reduce the ring fencing of funding, the reality is that material elements of funding remain ring fenced which significantly restricts how the Council can most effectively use the funds made available to it. 4.8 Engaging positively with Residents, Communities & Partnerships This risk remains unchanged despite the positive work being under-taken across the community planning partnership. There continues to be resourcing and financial constraints that limit the number of communities that the Communities Team can engage with. Page 12
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4.9 Threat of Cyber Attack This risk will always be high as the threat and likelihood of a Cyber Attack remains. The UK public sector is still experiencing elevated levels of targeted Cyber- attacks including recent attacks on Scottish councils and high-profile attacks on UK retail organisations. As this risk continues to be high the emphasis remains on proactive measures to protect the confidentiality, integrity and availability of our data, critical infrastructure, and overall business operations. Key risks and continual threats include: Demand for emerging technologies such as Artificial Intelligence solutions present new challenges for the council to implement and secure. Risk to Backup technology and corruption of council data. Ransomware attacks – surged in recent years, potential for significant financial loss and operational disruption. Advanced Persistent Threats (APT’s) – sophisticated stealthy attacks conducted by well-resourced groups, targets include critical infrastructure, government bodies and large corporations. User awareness – Phishing attempts on the rise with more sophisticated techniques being deployed including voice and text phishing. Targeted threats tailored to specific areas of the Council are being observed. Social Engineering attacks now present a higher risk. Third Party Risks – The Council often relies on third party vendors and suppliers, increasing the risk of cyber-attacks through the supply chain. Mitigations: Continual improvement of our vulnerability/patch management systems and processes. Continual promotion of Cyber awareness through simulated phishing campaigns supported by our online security training and awareness platform. Social Engineering guidance issued to all employees. Engagement with ICT Security Partners to highlight and advise on specific areas of risk. Continual assessment and improvement of our Cyber Security posture. Robust Business Continuity and Disaster Recovery plans with a new backup policy in development. Progress continues to take place to improve our security posture in line with the national Public Sector Action plan (PSAP) and Public Sector Network (PSN) compliance. Vigilance of the National Cyber Security Centre (NCSC) Cyber Security guidance continues to remain in place. Page 13
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4.10 Complexities in ensuring an appropriately resourced and resilient workforce The risk rating remains scored at a 6. The difficult funding position means an impact on an appropriately resourced and resilient workforce is expected however the severity of this remains unclear. Services are reviewing structures and service delivery models in light of the council's financial challenges. The Workforce Planning Strategy is in place for 2022-2027. Additionally, the People First Strategy covers the same period and consolidates several areas: well-being, employee engagement, workforce planning, learning and development and digital. A robust package of wellbeing resources continues to be available, the council is recognised as a leading employer in terms of adapting flexible working practices, attendance levels are closely monitored, with personal stress and minor ailment absences currently prevalent. M 365 Share point rollout continues with a second pilot about to commence. SMN in June focused around digital capabilities and transformation opportunities. Meetings with SMTs are planned to commence in September where discussions on how best to utilise digital leads and champions will be taken. To further support this the digital team continue to add digital tools to the intranet page the most recent being digital duel and a digital dilemma. Services are currently working on structures and service delivery whilst considering the difficult financial funding position and the impact of this will be closely supported and monitored. There have been reductions across the people support functions and this has increased the challenges in supporting services. It has been agreed to invest an additional resource into the digital team to support fit for future. Fit for Future will be used to review processes, maximise digital opportunities, remove waste and keep costs low 4.11 Inability to reduce carbon footprint in line with targets The risk of non-delivery of carbon emissions targets remains significant to reflect the increasing gap between actual and target Co2 emissions. There has been a long-term vacancy within the Climate Change and Energy Team that continues to impact progress of the Climate Change Action Plan. The Climate Change and Energy Team continue to work across the Council to promote active participation from all service areas and to support a reduction of emissions Page 14
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5. People Implications 5.1 There are no people implications associated with this report, other than in relation to the mitigation of risk. 6. Financial and Procurement Implications 6.1 There are no financial and/or procurement implications directly associated with this report however there are in relation to any expenditure linked to mitigation. 7. Risk Analysis 7.1 Failure to ensure robust risk management is likely to result in the Council being criticised by External Auditors for not having an integrated approach to embedding risk management within the authority with the result that a “no scrutiny required” status would not be achieved. 7.2 Progressing with a robust risk management approach will demonstrate that the Council is taking ownership of risk management and ensuring effective measures are in place. The ability to demonstrate risk ownership should benefit the Council in terms of: Understanding risk and its potential impact on the Council’s priorities and objectives; Reducing insurance premiums going forward by recognising that a mature approach to risk management will contribute to a reduction in the number and value of claims across a range of insurance classifications; Contributing towards incident prevention based upon post-incident investigation; Meeting statutory/regulatory requirements; and Ensuring better partnership working with external and internal partners. 8. Equalities Impact Assessment (EIA) 8.1 EIA 548 notes the positive impacts of an approach to risk that integrates considerations on equalities, human rights health and social and economic impacts that is aligned with the content of the new Strategic Plan. 9. Consultation 9.1 The strategic risks have been discussed with the Chief Officers and senior management. The reports to committee are available to the Trades Union and consultation undertaken as required. 9.2 The strategic risks have been cross checked with WD HSCP. This ensures that issues affecting HSCP are reflected within the wider council strategic risk report. Page 15
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10. Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that its four main strategic priorities for 2022 - 2027 are as follows: Our Communities - Resilient and Thriving Our Environment - A Greener Future Our Economy - Strong and Flourishing Our Council - Inclusive & Adaptable 10.2 The strategic risks have been identified to complement and underpin all strategic priorities. Name: Victoria Rogers Designation: Chief Officer People & Technology Date: 21st August 2025 Person to Contact: Harry McGhie, Risk & Health and Safety Officer Harry.McGhie@west-dunbarton.gov.uk Appendices: Appendix 1: Detailed Strategic Risk List Background Papers: West Dunbartonshire Council Strategic Plan 2022-2027 Risk Management Framework EIA screening Page 16
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Strategic Risk Report Generated on: 21 August 2025 SR 01 Significant financial funding reductions / limitations from Scottish Government It is expected the Council will continue to be faced with significant real term funding reductions from the national settlement. This is based on local government settlements in recent years (with the exception of 2025/2026). This coincides with a period where costs and demographic pressures are continuing to rise in relation to social care, significant inflationary increases, the impact of previous years increases in the bank interest rate and pay award pressures linked to inflation. Whilst there are ongoing discussions between the Scottish Government and Local Government on reducing the ring fencing of funding the reality is that material elements of funding remains ring fenced which significantly restricts how the Council can most effectively use the funds made available to it. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 11-Aug- 2025 16 31-Mar-2027 4 Laurence Slavin Potential Effect Shortfall in finances resulting in the Council being unable to provide all services as intended and needing to identify further cuts to services to deliver a balanced budget. This extends to those services delegated by the Council to the Health and Social Care (HSCP) Board. Measures of Impact - Real terms reduction in Scottish Government settlement - Demographic change (population decline/growth, aging population) - Cost reduction required including reducing level and/or quality of service provision - Increased Debt (collection of Council Tax, HRA rents, etc) -Depletion of reserves Risk Factors - Insufficient funding to retain essential services and fully fund policy commitments. - Lack of time to plan for changes in the level of grant funding due to single year settlements - General inflationary factors - Instability of Bank of England Base Rate - Significant additional cost pressures, driven by demographic profile. - Insufficient capital receipts to cover loan repayments (creating a revenue pressure) Internal Controls - Long Term Financial Strategy - Regular Financial Updates to Council - Monitor and maintain General Services and Housing Revenue Account prudential targets - Reporting and monitoring of Treasury Management Strategy - Budgetary control process - Regular budgetary control and savings monitoring reports provided to CMT and Council / committees - Active engagement with HSCP Chief Officer on financial performance and budget planning - Rigorous debt collection processes - Annual Internal Audit Plan - Work of External Auditors (external control) - Annual Governance Statement Latest Note Assumptions on future funding levels and other material budget assumptions are updated regularly and reported to Council periodically throughout the year. It is expected that future settlement funding will be insufficient to pay for current levels of service delivery. Furthermore, it is expected future local government settlements will be a real terms reduction in local government funding, including those services delegated to the HSCP Board. Risk Opportunity -Significant council projects focusing on long term economic development in the West Dunbartonshire area to grow the local economy and generate revenue - Annual exercise to identify efficiencies - Projects to implement new ways of working (e.g. digitisation, automation, asset management) Linked Actions Code & Title Progress Status Assigned To RES/25-26/005 Review ways to improve rent collection rates in conjunction with Housing and W4U Ryan Chalmers Item 5 Appendix 1 Page 17
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RES/25-26/004 Review ways of decreasing corporate debt through continued improvements to debt collection processes in relation to sundry, NDR, Council Tax and rent Ryan Chalmers SR 02 Challenges in implementing broad-ranging school improvement to raise attainment and achievement This risk concerns delivering excellence and equity for children and young people. National and local indicators have been set to monitor progress with outcomes relating to attainment and achievement with a key focus on making progress to narrow the poverty related attainment gap. Scottish Equity funding devolved to local authorities aims to deliver on priorities between 2023-26. This funding will end in 2026. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 12-Aug- 2025 4 31-Mar-2027 2 Julie McGrogan Potential Effect Improved outcomes for young people would not be attained and achieved. The Council would fail to meet the needs of individual learners particularly those children and young people most disadvantaged by poverty. Risk of reputational damage to the service and the wider Council if outcomes and targets not as education as a statutory service is subject to close scrutiny of local authority performance with outcomes for children and young people by the local community and by the national agencies. Measures of Impact Stretch Aims and Targets for attainment and achievement 3-18 et to be achieved by 2026. The Stretch Aims are scrutinised annually by Scottish Government and Education Scotland. West Dunbartonshire Performance Targets for attainment and narrowing the poverty related attainment gap in Early Years, Broad General Education and Senior Phase West Dunbartonshire Improvement Board Quality Indicator Evaluations National Qualifications Attainment and Achievement Results Broad General Education Achievement of Level Results West Dunbartonshire Scottish National Standardised Assessment Data Positive Destination Data West Partnership Attainment , Equity and Destination Performance Measures Her Majesty’s Inspectors of Education inspection reports Stakeholder Feedback Risk Factors Reduced funding 2022 -2026; no confirmation of future funding from 2026: This Strategic Priority has been supported by Scottish Government Attainment Challenge Funding since 2015 and since 2022 Strategic Equity Funding. Also, schools in West Dunbartonshire have received Pupil Equity Funding since 2016. The national funding streams are committed to until 2026 – there is uncertainty as to future funding provision. From 2022 – 2026 the Strategic Equity Fund is being tapered with annual reductions in the funding the local authority receives. This will reduce resources available to deliver work streams related to SEF. Internal Controls -Strategy for Excellence and Equity 2023 – 2026 ( developed to embed improvements achieved and support an exit strategy from Strategic Equity Funding by 2026). -Project management by Senior Education Officer -Education Improvement Board chaired by Chief Education Officer -Scrutiny by Scottish Government and Education Scotland (progress reports produced and submitted) -WDC Improvement Framework -Termly progress reports submitted as part of Educational Service committee reports -Relevant Continuous Professional Development programme to support education staff -Meetings between WDC and Education Scotland/Her Majesty's Inspectors of Education -BGE Attainment and Performance Data -Literacy, Numeracy and HWB Steering Group -National Improvement Framework (NIF) -Education Recovery Plan Latest Note Action plan implemented academic session 2024/25 resulting in continued strong performance; with some evidence of attainment levels plateauing. Action plan for academic session 2025/26 produced and included in National Improvement Framework report submitted to Education Committee and Scottish Government in September. Risk Opportunity Improved attainment - improved attendance - reduced exclusions - reduced violent incidents - reduction requirement for targeted support over time - reduction requirement for specialist placements over time - improved learning & community engagement - children/pupils at risk identified earlier and more effectively - more empowered community providing self-sustaining peer support - increase in the percentage and range of positive destinations over time - increased access to digital learning resources Page 18
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Linked Actions Code & Title Progress Status Assigned To ED/25-26/003 Close the attainment gap between the most and least disadvantaged children and young people Julie McGrogan ED/25-26/004 Improve attainment, particularly in literacy and numeracy Julie McGrogan ED/25-26/005 Improve skills and sustained, positive school leaver destinations for all young people Andrew Brown SR 03 Maintaining Council Assets that are fit for purpose The risk that the Council's assets and facilities are not fully fit for purpose with consequent adverse impact on our ability to deliver efficient and effective services. Assets included in this assessment are; the Council’s property portfolio. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 07-Aug- 2025 2 31-Mar-2027 2 Michelle Lynn Potential Effect - Assets are not utilised in the most effective and efficient manner - Service cannot be properly delivered to the satisfaction of service users - Service users require to seek alternative service provision -Increase in reactive maintenance costs/ demand/ volume -Council assets in poor conditions -Council assets fail to meet relevant standards which are reported to either Scottish Government and/or Care Inspectorate. Measures of Impact - Condition surveys - Suitability surveys - Customer perceptions of service delivery - Investment levels in upkeep and improvement of asset base and facilities -Asset user satisfaction - Operating costs and savings Risk Factors - Adequacy of funding available to improve asset base - Adequacy of staff resources allocated to the area of asset management - Council buildings/assets deemed to be unfit for existing purpose - Economic conditions may reduce level of potential capital receipts from surplus property sales - Increase public liability claims Internal Controls - Corporate Asset Framework - Learning Estate Strategy 2020-2030 - Property Asset Plan 2023-2028 - Property and Land Disposal Strategy - Capital project meetings are carried out regularly in addition to project specific meetings and Building Services/Asset Management monthly meetings - Capital Programme - Strategic Asset Management Group - Learning Estate Project Board - Detailed asset database that shows relevant information on a property by property basis in relation to operational, non-operational - Sustainability Policy Latest Note The risk score remains low due to the ongoing programme of capital works. The Property Action Plan 2023-28 approved at Infrastructure, Regeneration and Economic Development Committee February 2023 will monitor all requirements to maintain risk score. Risk Opportunity -Enhance reputation of Council by being able to improve Council assets. -Estate, assets and service delivery (e.g. new school buildings, operational building upgrades, office and depot rationalisation projects) - Enhance employee "feel good" factor by providing modern office accommodation equipped with up to date IT facilities -Improved satisfaction from public building users - Secure external funding for development of assets (e.g. EC, lottery, Historic and Environment Scotland) - Prioritised Building Upgrade Plan Linked Actions Code & Title Progress Status Assigned To RES/25-26/007 Progress the disposal of key strategic sites Michelle Lynn Page 19
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RES/25-26/012 Develop and implement plans and support services to achieve the asset related savings agreed by Council Michelle Lynn SR 004 Keeping abreast of developments in the innovative use of Information Technologies Failure to keep pace with changing technology environment Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 31-Jul- 2025 2 31-Mar-2027 2 James Gallacher; Patricia Kerr; Dorothy Nicolson Potential Effect A lack of consistent, sufficiently robust service planning in respect of ICT arrangements is likely to result in the Council being ill prepared to meet future demands in key service areas and lacking the capacity to respond effectively to changing need such as increased requirement for remote working as identified during covid pandemic. Measures of Impact • Close relationship and working practices with council Asset Management Service regarding property rationalisation. • Implementation of mobile and flexible working, enabling a downsizing of required office accommodation as people to work more efficiently and to adopt a more flexible policy towards office accommodation and desk provision. • Number of systems that have supplier maintenance contracts. – annual process. • Invocation of Service Business Continuity Plans and ICT Disaster Recovery plan • Degree of compliance with security controls to prevent data loss through poor o/s patching, cyber-attack, firewall configurations, switch replacements/upgrades etc • Fit for purpose primary and secondary data centres • Modern Wi-Fi technology in all council locations. • Broadband speed in the Council area - WDC has 2nd highest broadband speeds in Scotland. Investigating funding options for fibre network. • Number of ICT Service Desk incidents resolved within half day - exceeded the target and higher target set. • Extent of functionality development in key Council systems (i.e., lack of development beyond base system leading to ineffective management information) – several channel shift projects delivered, and more are in progress. PSN/Risk/challenging. Support service areas. • Fit for purpose Council website, delivering information and services to a significant percentage of the Council's customers. • Provide efficient desktop services supporting laptops, Chromebooks, PCs, Thin client terminals to meet changing workforce flexibility and property rationalisation requirements. 5-year Device replacement programme in place. Risk Factors • Insufficient resourcing of ICT developments so that benefits and opportunities identified are not realised • Lack of network security controls implemented. I. e Lack of intrusion detections alerts • failure to respond to audit / PSN test findings and recommendations, • insufficient resources allocated to security tasks. However, Service redesign and ICT resources aligned to security tasks and improved monitoring processes and tools as well as additional tools purchased to help support remote working environment all help to mitigate this risk. • Insufficient Service Business Continuity Plans and/or Disaster Recovery Capability. • Lack of project and programme change management arrangements. • Poor quality of mobile communication provision. • Lack of uptake on channel shift. Internal Controls - Ongoing Capital programme established for technology refresh projects - Information & Communication Technology (ICT) Policies such as ICT Security Framework - Governance structures such as ICT Steering Board, Education ICT Steering Board, Digital Transformation Board in place to support governance, integrated planning and decision making in relation to ICT -Use of both internal IT resources from across the Council and skilled specialist consultants in key areas - Fit for purpose primary and secondary data centres Latest Note August 2025 The Council continues to invest in technology and embrace innovation with the implementation of several improvement projects. This investment is focused on delivering fit for future infrastructure, enabling a secure, consistent and robust hybrid working experience, reducing the threat of Cyber-attack and exploring exciting opportunities with modern technology such as Artificial Intelligence and Automation. Page 20
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There continues to be investment in cloud services with MS SharePoint and One Drive with the pilot phase now complete and additional corporate service areas migrating to the solution from July 25. Remaining services areas and partners will be migrated throughout 25/26. ICT have also completed the deployment of an Azure cloud environment to allow the Council to begin testing data and hardware resources in the cloud and this solution also provide added resilience for system access. The Council has procured additional 365 licences to allow the latest version of Office 365 to be deployed to all Council devices. The ICT team are also researching latest Artificial Intelligence solution MS Co-Pilot with the aim to trial licences across pilot groups and the solution was recently demos to employees in June. ICT are also supporting service areas with new technology pilots i.e. AI note taking in HSCP and the ICT service is also exploring opportunities to use Automation technology across the ICT service. Installation of new Firewall technology took place early Jan 25 and this project not only improved internal and external security but has also increase data capacity throughput at our data centre to allow improved data performance across the Council network. The SWAN (Scottish Wide Area) project to improve bandwidth capacity at all Council sites has progressed well with 60 sites now migrated to the new network, the remaining sites including the Aurora Data Centre will be completed by August 25. In addition, we are also upgrading the Council internet line and all of these changes will ensure our Infrastructure is digital ready and to allow the Council to invest further in cloud and data services. The Councils legacy telephony system will be replaced during 25/26 with a new cloud platform solution that will also deliver a new Council Contact Centre solution for Customer Services to enhance Citizen communication. ICT are also currently testing a new chat facility that will allow employees to raise ICT incidents & requests via live chat to service desk analysts. Risk Opportunity -365. Provide Council employees with secure access to email and supporting systems from anywhere. -Opportunity to redesign infrastructure and introduce new tools and security measures to support hybrid working environments. – - Annual network penetration tests and for PSN compliance audit - Annual External Audit on ICT Controls - Continued investment in ICT infrastructure and its focus on network security and resilience. - Provide appropriate technology for employees, pupils, and service users as well as for ICT support teams - Rationalise IT systems - Increased use of mobile devices e.g., laptop/tablet devices and Chromebooks - Review of device strategy and efficient/effective approach. - Provide self-service style systems to employees and citizens Linked Actions Code & Title Progress Status Assigned To P&T/25-26/ICT/03 Develop and Implement next stage of Microsoft 365 roadmap James Gallacher; Patricia Kerr P&T/25-26/ICT/04 Complete review of ICT devices due to be replaced James Gallacher; Patricia Kerr; Dorothy Nicolson P&T/25-26/ICT/05 Review and explore next generation technologies Andrew Cameron; James Gallacher; Patricia Kerr; Dorothy Nicolson SR 05 Engaging positively with Residents, Communities & Partnerships The risk that the Council fails to adequately engage, establish and maintain positive relationships with local residents and communities in addition to partnership bodies. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 24-Jul- 2025 6 31-Mar-2027 2 Colin Smith; Elaine Troup Potential Effect Potential for tensions to develop with residents and local community groups Reputational damage to council services Degradation of trust in service provision A failure of strong partnerships could impact on the Councils Page 21
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obligations under Community Empowerment Act Measures of Impact Successful delivery of Local Outcome Improvement Plan (LOIP) and supporting plans positive partnership inspections Informed and engaged residents participating in consultation activity Telephone survey monthly, quarterly and annual measures Increased social media engagement and reach Risk Factors Inability to deliver improved outcomes which require strong partnership activity Council's reputation is adversely affected through a failed partnership arrangement Lack of appropriate staff development / skills may be lacking to support new model of service delivery Team restructure, post reductions and team overall budget savings challenges the viability of the team to deliver against strategic plan and community needs. Inequity of engagement across the partnership on key local issues Council seen as unresponsive to community if feedback from engagement not acted upon Apathy within communities leads to little or no engagement Some community groups feel their voices are not being heard Internal Controls Robust partnership arrangements through community planning partnership Align the Council's strategic plan with the Local Outcome Improvement Plan (LOIP) Ensure that partners have signed up to deliver on the outcomes and targets set in the LOIP Develop data sharing protocols with partner agencies Participate in reform agenda as it impacts on Council area Ensure robust mechanisms for public feedback (Embedding the Strategic Engagement Framework) Annual budget consultation events Citizens Panel Open Forum questions at Council meetings Latest Note This risk remains unchanged despite the positive work being under-taken across the community planning partnership. There continues to be resourcing and financial constraints that limit the number of communities that the Communities Team can engage with. Risk Opportunity Position West Dunbartonshire as a modernising Council Residents are more comfortable with the digital platform as a result of the enforced cessation of face to face services - this presents an opportunity to modernise communication Community Empowerment Act Participation requests Asset transfer Linked Actions Code & Title Progress Status Assigned To CCF/25-26/C&D/03 Review website accessibility to ensure it complies with regulations Jonathan Muir CCF/25-26/C&D/05 Support upgrade to Contact Centre Telephony Platform Lorraine Phimister CCF/25-26/COM/01 Develop a communication plan to support budget savings initiatives for 25/26 Lauren Crooks CCF/25-26/LIB/03 Create a strategy document for West Dunbartonshire Libraries Emma Eremin CCF/25-26/LIB/04 Develop and deliver the Libraries Empower Connections Digital Offering Emma Eremin CCF/25-26/P&S/03 Carry out strategic engagement to support budget consultation 2026/27 Nicola Docherty SR 06 Challenges in protecting the Health and Safety of Employees and Others Failure to meet the Council’s duty to protect the health, safety and welfare of its employees and other people who might be affected by its business Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 12-Aug- 2025 4 31-Mar-2027 4 Alison McBride Potential Effect Poor health and safety culture within the organisation leading to; Risk of an employee, service user, pupil (young person) or member of the public being seriously / fatally injured by fault of the Council; reputational risk regarding negative publicity; financial risk in terms of claims management compensation to the injured party; increase in insurance premiums; risk of prosecution by the HSE resulting in a fine and/or a Council Employee being subject to criminal charges, Page 22
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poor employee morale, high staff turnover leading to diminished service delivery. Measures of Impact Resources associated with in-house/HSE investigation. Incident statistics. Service delivery impact in terms of injury-related absence and potentially enforced cessation of work activities. Impact of injury on employees/members of the public, legal proceedings, financial penalties, potential reputational damage and risk of criminal charges. Hazard reporting. Actions at health and safety committees. Implementation of Corporate health and safety plan. Risk Factors Lack of resources, inadequate Safety Management Standards and H&S strategy. Poor health and safety culture. Under reporting of incidents. Blame culture. Poor communication between management and employees. Competent advice. Internal Controls •Competent health and safety advice readily available from the Corporate H&S team. •Corporate health and safety plan developed and monitored via Pentana. •Robust health and safety management system, FIGTREE. • Council has in place a robust H&S policy, Safety Management Standards and Fire Risk Management Strategy that includes service specific health and safety plans, duties and responsibilities for Chief Officers, managers and employees. • Adequate H&S resources in place to that will allow statutory obligations in terms of the Health and Safety at Work etc. Act and supporting legislation. • Embedded H&S culture that discusses H&S issues at senior level and cascades throughout the organisation through the health and safety committee system. • Monthly reports to PMRG on organisational safety performance and issues. •Chief Officers attend service H&S committees on a quarterly basis. • Workplace inspection and audit programme. • Service risk profiling. • H&S training needs analysis for every employee group. • The Council has in place a Trade Union Health and Safety Partnership Agreement. • Council promotes health and safety training for TUs to diploma level. • Hazard reporting module via FIGTREE. • Health & safety e-learning package. • Risk assessment working groups for service areas and review process. Latest Note Corporate H&S are actively reviewing and optimising key service areas, including Safety Management Standards and training. Work is also being carried out to refine and simplify the health surveillance process in collaboration with OH and line managers. The ongoing management of H & S within the Council includes facilitating management workplace inspections as well as conducting noise monitoring, auditing, scaffold inspections and presenting training. Fire safety management remains a priority for the Corporate H&S team. The team are conducting fire risk assessments in line with the teams annual H&S plan. The team are also providing fire safety training to staff within HSCP and on an ad-hoc basis to other services across the council. The Corporate H&S team also regularly provide updates to PMRG on the status of overdue actions. In doing this there has been a marked reduction in the overall number of overdue actions. This forum allows Corporate H&S to have closer ties with management across the council which in turn facilitates a more proactive approach for the management of H&S. No change to risk matrix. Risk Opportunity Demonstrate to committees, elected members, Trade Unions, employees, the community and other external partner’s evidence of robust H&S culture. Good knowledge and awareness of health and safety throughout all services. Positive relationship with Corporate health & safety team and all services. Reduced incidents, costs and absence rates. Linked Actions Code & Title Progress Status Assigned To P&T/25-26/P&C/03 Continue to embed key Health and Safety practices. Alison McBride; Harry McGhie SR 07 Complexities in ensuring an appropriately resourced and resilient workforce Failure to ensure that there is an appropriately resourced and resilient workforce in place to meet future organisational needs, in effectively executing the Council’s 2022-27 Strategic Plan. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To Page 23
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29-Jul- 2025 6 31-Mar-2027 2 Alison McBride Potential Effect Inability to deliver services effectively Reduced level of service HSCP - workforce capacity, recruitment and retention challenges; appropriate training for roles Lack of improvement or increase in staff absences Council underachieves as an organisation Low staff morale Employee conflict Increased turnover Inability to attract/recruit Measures of Impact - Access to and participation of employees in learning and development activities - Absence rate and trends - Employee turnover - Grievance, discipline and other monitoring information - Employee voice and associated actions - Reports from external scrutiny bodies and award bodies - Benchmarking with appropriate comparators Risk Factors - Inability to attract/recruit - Lack of appropriate development - inadequate skills -risk to new models of service delivery - Lack of resource/capability to deliver - Workforce unable to adapt to change Internal Controls - HR processes designed to meet service delivery needs - Develop new structures to reflect strategic priorities and aligned to Standard Operation Model (SOM) - Align workforce plan to the Council's strategic planning processes (i.e. have the right people available at the right time with the right skills to fulfil properly all of the Council's strategic priorities) - Periodic review of pay arrangements in accordance with EHRC guidance (currently every 3 years) - Incorporation of succession planning into workforce planning framework - Identify training programmes to upskill staff - Effective use of SWITCH to support alternative careers - Flexible HR policies, in particular People First covering workforce planning, learning & development (including elearning), digital/continuous improvement, employee wellbeing & engagement. - Effective use of Occupational Health Service - Robust Be the Best Conversations process - Effective leadership and management behaviours, practice and programmes Latest Note Workforce Planning Strategy in place for 2022-2027. People First Strategy is in place covering 2022-2027 and this is a consolidation of a number of areas: well- being, employee engagement, workforce planning, learning and development and digital. WDC are recognised as leading in terms of adapting flexible working practices. A robust package of wellbeing resources continue to be available, absence levels are closely monitored, with personal stress and minor, ailments absences prevalent. Trickle user numbers continue to rise and the tool is used as an additional route to ensure wider spread of workforce communications alongside an opportunity for employees to share thoughts and ideas. In addition, the tool is used regularly to gauge employee engagement levels. M 365 Share point rollout continues with a second pilot about to commence. SMN in June focused around digital capabilities and transformation opportunities. Meetings with SMTs are planned to commence in September where discussions on how best to utilise digital leads and champions will be taken. To further support this the digital team continue to add digital tools to the intranet page the most recent being digital duel and a digital dilemma. Services are currently working on structures and service delivery whilst considering the difficult financial funding position and the impact of this will be closely supported and monitored. There have been reductions across the people support functions and this has increased the challenges in supporting services. It has been agreed to invest an additional resource into the digital team to support fit for future. Fit for Future will be used to review processes, maximise digital opportunities, remove waste and keep costs low. Risk Opportunity - Identify previously unknown skills and talents in the workforce - Realise the potential of staff Page 24
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Linked Actions Code & Title Progress Status Assigned To P&T/25-26/P&C/04 Improve employee life cycle and optimise employee development opportunities Louise Hastings; Lisa MacGregor; Alison McBride P&T/25-26/P&C/06 Undertake a strategic review of job profiles across the Council Lisa MacGregor; Alison McBride SR 08 Threat of Cyber-attack Data, systems and/or infrastructure are impacted as result of security attacks which are increasing in number at a time when this threat is already placing demands on resources to deliver increased levels of security controls. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 31-Jul- 2025 9 31-Mar-2027 4 Andrew Cameron; James Gallacher; Patricia Kerr Potential Effect • Remote working could be impacted for Council employees and partners HSCP, VJB and WDL by loss of internet services. • Disruption to services impacting service delivery to citizens • Employee and Citizen data loss with the potential for misuse such as identity fraud • Misinformation being delivered to the public via WDC communication channels • Potential for significant fines currently under the Data Protection Act and from May 2018 under the provisions of the General Data Protection Regulations • Reputational damage • Redirection of resources to deal with the impact of an attack and away from BAU work • Potential for significant fines currently under the Data Protection Act and from May 2018 under the provisions of the General Data Protection Regulations • Reputational damage • Inability to provide a secure information management network for Council and partners including HSCP, VJB and WDL. Measures of Impact • Obligation to secure Cabinet Office PSN compliance certification. • Obligation to comply with DWP MOU • Monitor remote access usage to capacity plan • Recorded attempts from unauthorised sources to breach council cyber defences • Recorded cyber related incidents in the Cyber incident log • Quantity of breaches/incidents reported to the Information Commissioners Office • Fines levied for breaches Risk Factors • Potential for attacks out of normal working hours /days • Inappropriate Cyber defences at the perimeter of the council network and NHS interconnect network • Inappropriate delivery of security patches to desktop, network switches and server estates • Compliance with security standards such as PSN, PCI, Public Sector Action Plan on Cyber resilience for Scotland • Continually changing threat landscape • Maintaining relevant skill sets among employee group / cost of securing expert resources • Increased targeted attacks and risks due to Remote working. •Remote access technology may not remain fit for purpose in a Smart working environment Internal Controls Robust backup strategy in place on premise and cloud backup for 365 with immutable capability. • Service Continuity Plans • ICT Disaster Recovery Plan • Continually review and update internal policies on patching and system hardening to ensure we keep abreast of emerging threats and trends • Annual PSN compliance audit including a comprehensive IT Health Check • Governance structure in place, ICT Steering Board consisting of senior management and relevant stakeholders meeting bi-monthly or as required in response to incidents/events • Programme of Internal and External ICT audits • Information Security/Data Protection forum. Project specific forums • Multiple layers of Cyber defences • Network Segregation • Rolling programme of security awareness sessions • Interagency and cross Council working groups and sharing. • National Digital Office / Scottish Government Public Sector Security programme and guidance • Continually review technologies in line with new working practices to ensure security and assurance is integral. • Monthly device and server patching regime. Page 25
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Latest Note August 25 This risk will always be high as the threat and likelihood of a Cyber Attack remains. The UK public sector is still experiencing elevated levels of targeted Cyber-attacks including recent attacks on Scottish councils and high-profile attacks on UK retail organisations. As this risk continues to be high the emphasis remains on proactive measures to protect the confidentiality, integrity and availability of our data, critical infrastructure, and overall business operations. Key risks and continual threats include: • Demand for emerging technologies such as Artificial Intelligence solutions present new challenges for the council to implement and secure. • Risk to Backup technology and corruption of council data. • Ransomware attacks – surged in recent years, potential for significant financial loss and operational disruption. • Advanced Persistent Threats (APT’s) – sophisticated stealthy attacks conducted by well-resourced groups, targets include critical infrastructure, government bodies and large corporations. • User awareness – Phishing attempts on the rise with more sophisticated techniques being deployed including voice and text phishing. Targeted threats tailored to specific areas of the Council are being observed. Social Engineering attacks now present a higher risk. • Third Party Risks – The Council often relies on third party vendors and suppliers, increasing the risk of cyber-attacks through the supply chain. Mitigations: • Continual improvement of our vulnerability/patch management systems and processes. • Continual promotion of Cyber awareness through simulated phishing campaigns supported by our online security training and awareness platform. • Social Engineering guidance issued to all employees. • Engagement with ICT Security Partners to highlight and advise on specific areas of risk. • Continual assessment and improvement of our Cyber Security posture. • Robust Business Continuity and Disaster Recovery plans with a new backup policy in development. • Progress continues to take place to improve our security posture in line with the national Public Sector Action plan (PSAP) and Public Sector Network (PSN) compliance. Vigilance of the National Cyber Security Centre (NCSC) Cyber Security guidance continues to remain in place. Risk Opportunity • Increase Cyber resilience and awareness for employees, members and citizens, this can be done through existing training and awareness platform • Contribute to Scottish Government Public Sector Action Plan on Cyber resilience for Scotland and potential to become involved in a national/shared security operations centre • Upskill employees to address current and emerging threats • Increased employee awareness across Council and partners HSCP, VJB and WDL. Linked Actions Code & Title Progress Status Assigned To P&T/25-26/ICT/01 Further secure the next phase of the Council’s technology infrastructure Andrew Cameron; James Gallacher; Patricia Kerr SR 09 Challenges in delivering effective services in relation to Roads & Neighbourhoods The risk that the Council’s fails to deliver on the three service areas within Roads & Neighbourhood: Roads & Transportation, Waste & Greenspace and Fleet. These areas provide services across a range of areas including managing and maintaining roads, footpaths and associated infrastructure, managing flood risk, winter gritting, grounds maintenance, street cleaning, burial and cremation, outdoor facilities, waste and recycling, vehicle fleet management and management. Failing to ensure these services are not fully fit for purpose could result in adverse consequences in relation to delivering efficient and effective services. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 07-Aug- 2025 4 31-Mar-2027 2 Gail Macfarlane Potential Effect - Assets are not utilised in the most effective and efficient manner Page 26
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- Service cannot be properly delivered to the satisfaction of service users - Service users seek alternative service provision -Increase in reactive maintenance costs/ demand/ volume -Council assets in poor conditions -Council assets fail to meet relevant standards - Council projects are not delivered on time or on budget -Failure to comply with Transport (Scotland) Act 2019 -Failure to comply with Waste (Scotland) Regulations 2012 - Assets not fit for future and investment not sufficient to fulfil capital investment needs. Failure to comply with Good Operator License requirements. Increased reliance on hire vehicles should fleet investment not be adequate. Measures of Impact - Condition surveys - Defect inspection and management - Suitability surveys - Road Condition SPI -Customer perceptions of service delivery -Legionella and asbestos inspections, - Investment levels in upkeep and improvement of asset base and facilities -Asset user satisfaction -Operating costs and savings -Housing adaptations not undertaken timeously -Local Government Benchmarking Framework (LGBF) -Association for Public Service Excellence (APSE) -Waste Managers Network Group Risk Factors -Adequacy of funding available to improve asset base - Adequacy of funding to maintain asset base ie roads at a steady state - Adequacy of staff resources allocated to the area - Council assets deemed to be unfit for existing purpose - Economic conditions may reduce level of potential capital receipts -Over one third of the road network is in need of repair and the current long term capital funding only sustains a steady state condition of the road network - Increased public liability claims due to poor condition of roads network - Increase public liability claims due to poor condition of footpaths and roads which are not part of our adopted network. -buildings such as schools closed for safety if legionella etc present -Poor customer engagement for recycling, deposit return scheme, refuse transfer station -Financial challenges - Budget Sensitivity Analysis (fuel costs, waste refuse disposal tonnage costs, bitumen availability and costs) Internal Controls -Strategic Asset Management Group - Corporate Asset Management Strategy (scheduled refresh in 2nd half of 2021/22 year) - Learning Estate Strategy - Capital Investment Team - Capital project meetings are carried out monthly in addition to project specific meetings. - Capital plan - Roads and Lighting Asset Implementation Plan - Fleet Asset Implementation - Open Space Asset Implementation Plan - Sustainability Policy -User feedback – complaints data, Citizens’ Panel and monthly telephone survey -Fit for future service reviews -Deposit Return Scheme -Climate Change Strategy -Community Empowerment Strategy -Food Growing Strategy and Allotments -Equality Outcomes Latest Note No change to current scoring. Monitoring and action plans in place to manage risk. Risk Opportunity -Enhance reputation of Council -Ensure services are fit for the future and are compliant with legislation changes -Estate, assets and service delivery (e.g. office and depot rationalisation projects, roads upgrade programme, vehicle replacement programme, greenspace upgrade projects) - Secure external funding for development of assets (e.g. EC, lottery, Historic and Environment Scotland) - The continued implementation of the energy efficient street lighting project will both improve the asset and reduce costs significantly through reduced maintenance, energy consumption and carbon output. - The effect of these energy efficiencies has demonstrated that significant savings and environmental benefit can be achieved through the utilisation of developing technology. Linked Actions Code & Title Progress Status Assigned To Page 27
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R&N/25-26/GS/04 Develop a new local biodiversity action plan Ian Bain R&N/25-26/GS/05 Develop ash die back action plan – next phase Ian Bain R&N/25-26/R&T/06 Progress phased delivery of public and fleet electric charging points – next phase Liam Greene R&N/25-26/R&T/10 Develop new Roads and Transport Winter Plan for consideration at May Committee Liam Greene SR 10 Failure to maintain Housing Stock The risk that Council’s Housing Stock are not fully fit for purpose with consequent adverse impact on our ability to deliver efficient and effective housing for Council tenants. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 13-Aug- 2025 4 31-Mar-2027 4 Alan Young Potential Effect - Housing stock is not utilised in the most effective and efficient manner - Service cannot be properly delivered to the satisfaction of service users -Increase in reactive maintenance costs/ demand/ volume -Housing stock in poor condition -Housing stock fail to meet relevant standards - Non-compliance with Scottish Housing Quality Standard Measures of Impact - Condition surveys - Suitability surveys - Customer perceptions of service delivery - Investment levels in upkeep and improvement of housing stock -User satisfaction -Operating costs and savings - Local Government Benchmarking Framework (LGBF) Risk Factors - Adequacy of funding available to improve housing stock - Adequacy of staff resources allocated to the management of housing stock - Housing stock deemed to be unfit for existing purpose -Increasing issues relating to supply of labour and materials, due to increased energy, transport and raw material costs, impacted on supply chains, and third parties and our ability to carry out works within budget and on time. Internal Controls - Housing Capital Investment Programme (refreshed and delivered annually) - Housing Capital Improvements - WDC Local Housing Strategy 2021-25 - The Housing Capital Investment Team - The Planned Maintenance Section - Housing Asset Management Strategy - Detailed asset database that shows relevant information on a property by property basis in relation to HRA properties. - More Homes Better Home Project Board. - Telephone Survey feedback - Fit for future reviews -Other benchmarking/ feedback - Climate Change Strategy Latest Note No change to risk score, programme for investment and upgrades to council housing continues into 25-26 and a further five year programme to 29-30. Risk Opportunity -Enhance reputation of Council by being able to improve Council housing stock -Estate, assets and service delivery (housing investment programme ) -Improved satisfaction from tenants - The effect of these energy efficiencies has demonstrated that significant savings and environmental benefit can be achieved through the utilisation of developing technology. -Improvement of SHQS & EESSH compliance performance and points, and reduced SHQS abeyance numbers through the strategic planning and management of housing assets. - Increase in environmental improvements including bin stores - Increase in internal (e.g kitchens, bathrooms, showers, special needs adaptations, central heating, smoke detectors, windows and doors) and external updates (e.g new roof coverings, external insulated render and Page 28
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tenement structural refurbishments) - Increase in number of New Build Homes as part of the Strategic Housing Investment Programme (SHIP) -Achieve energy efficiency standard for social housing Linked Actions Code & Title Progress Status Assigned To HS/25-26/HAI/01 Ensure the Council’s Housing stock maintains compliance with the Scottish Housing Quality Standard and reduce the number of properties held in abeyance. Alan Young HS/25-26/HAI/02 Ensure the Council’s Housing stock progresses towards the achievement of the energy efficiency standard for social housing. Alan Young SR 11 Inability to reduce carbon footprint in line with targets The risk that the Council will be unable to achieve net zero emissions by 2045, both in relation to mitigating carbon emissions and adapting to the impacts of climate change. Net zero refers to achieving an overall balance between emissions produced and emissions taken out of the atmosphere. This target has been developed in a way that mirrors the emission reduction trajectory set by the Scottish Government in light of the Climate Emergency. Current Risk Matrix Last Review Date Current Rating Target Risk Matrix Target Date Target Rating Assigned To 24-Jul- 2025 9 31-Mar-2027 2 Elaine Troup Potential Effect Failure to meet mandatory national and international policy drivers Failure to meet duties placed on Council by The Climate Change (Scotland) Act 2009Failure to meet duties placed on Council by The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019 Failure to meet duties placed on the Council by The Heat Networks (Scotland) Act 2021 and Local Heat and Energy Efficiency Strategies (Scotland) Order 2022. Failure to meet the provisions set out in Waste (Scotland) Regulations 2012 which help Scotland move toward the objectives and targets set out in the Scotland’s Zero Waste Plan to help transition toward a circular economy. Reputational damage. Financial burden of responding to adverse events such as extreme weather (including, but not limited to, flooding, heat waves, wind driven storm events, etc.) resulting in action. Impacts to Council operations and supply chains as a result of adverse climate/extreme weather events. This also impacts residents, local businesses and wider infrastructure across West Dunbartonshire. Financial burden on WDC from increasing energy prices in light of current energy and economic crises’. Energy Efficiency works on our own estate must increase to counteract these impacts. Measures of Impact Improving organisational resilience against the impacts of climate change. Improving local biodiversity through planting of native trees and bulbs in WDC WDC Waste Services Citizens Panel Survey regarding attitudes towards recycling improving The extension of the Queens Quay District Heating Network to NHS Golden Jubilee Hospital, Social Housing, NHS Health Centre, Council buildings and further connections as per scope. Inspiring change through including climate change learning in staff induction, training, team meetings, etc. Uptake in e-learning modules on climate change. Uptake in staff carrying out Sustainable Procurement assessments for tenders. Ensuring climate change and sustainability metrics are included in tenders for suppliers/contractors/etc. (such as carbon reduction measures) so they are being measured for accountability for the impacts they have on the environment Management of service areas setting climate change targets for their operations and staff. The uptake of Green Champion roles, which help normalise Climate Change and Sustainability, practices across the Council. Uptake in sustainable travel such as walking cycling and public transport Risk Factors Funding availability – delivery of actions to mitigate will require resources, capital works and investment by the Council- e.g enhanced energy measures, and heating and renewables projects in both domestic and non-domestic building assets Budget stress – notably due to energy and economic crisis, meaning it’s more difficult for Council to set aside budget to deliver on Climate Change and Net Zero projects and actions. Funding approach – a combination of internal and external funding sources will be need to delivery climate action at scale. Short term funding mechanisms such as annual payback of Council expenditure presents difficulties for delivering long-term projects. Climate Change investments also need to take account of whole-life costs including reduced maintenance costs and avoided Adaptation costs. Internal capacity – limited staff time and availability, largely due to reduced Council budgets, further impacted by Covid19. Page 29
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Communication – both internally (to avoid ‘silo’ working) and externally (engaging with the public and keeping abreast of local/national/international changes to policy). Economics – some technologies, materials and skills are still very expensive so innovation must progress to enhance the viability of climate actions within the context of the Council’s budget constraints. Strategy and planning – all existing and future Council plans should place responding to the climate emergency at their core and ensure integration with other Council services. Legislation & Regulatory – the ability to implement some climate actions is constrained at the local level by minimum standards and other restrictions set through legislation and national policy, for example in relation to building regulations, planning and procurement. Public attitudes and behaviours - Changing behaviour of residents, businesses and stakeholders positively and proactively, especially where there are cost implications to the delivery of climate actions. Internal Controls Climate Change Strategy 2021-2026 Action Plan 2021-2026 Climate Change Action Group (CCAG) Pentana Risk Management System – devolved responsibilities of climate change actions/milestones/KPI’s to service areas. Scottish Government – Mandatory annual Climate Change Duties Reporting Queens Quay District Heating Network Strategic Environment Assessment (SEA) Air quality monitoring Converting some Council pool fleet to Electric Vehicles (EVs). Climate Ready Clyde (CRC) – a cross-sector initiative funded by fifteen member organisations and supported by the SG. Delivery of a Locale Heat & Energy Efficiency Strategy (LHEES) and delivery plan by December 2023 – which sets out the Council’s area-based approach to reducing emissions of heating and energy efficiency improvements to ALL assets across WD. This includes private housing, businesses, etc. which are not owned/operated by WDC. Waste infrastructure and greatly improving approach to how Council and residents reduce, reuse and recycle waste. Notably, taking a Circular Economy approach to waste services and implementing appropriate infrastructure and contracts to do so. Latest Note The risk of non-delivery of carbon emissions targets remains significant to reflect the increasing gap between actual and target Co2 emissions. There has been a long-term vacancy within the Climate Change and Energy Team that continues to impact progress of the Climate Change Action Plan. The Climate Change and Energy Team continue to work across the Council to promote active participation from all service areas and to support a reduction of emissions. Risk Opportunity Our local environment is protected, enhanced and valued resulting in: Our public spaces are attractive and welcoming Our residents feels pride in their local neighbourhood The percentage of household waste sent for reuse, recycling and composting has increased resulting in reduction in the percentage that was being landfilled. The percentage of council land which promotes diversity of habitat and species has increased Our resources are used in an environmentally sustainable way Increase in the percentage of businesses taking action to reduce their carbon impact Reduction in CO2 emissions under the Council’s influence Reduction in West Dunbartonshire Area-Wide emissions as per requirements of the climate change (Scotland) act Residents actively involved in tackling climate change and protecting the environment The economy and infrastructure become more low carbon and environmentally-friendly Our neighbourhoods are sustainable and attractive Increased investment in our housing stock including improving energy efficiency Housing developments are meeting the needs of our changing population The quality of neighbourhoods has improved Our roads and transport network are maintained and they promote safe travel routes Linked Actions Code & Title Progress Status Assigned To R&R/25-26/024 Co-ordinate, monitor and report the progress of the Council’s Climate Change Action Plan for 2025/26 Elaine Troup R&R/25-26/025 Develop the Local Heat and Energy Efficiency Strategy Delivery Plan Elaine Troup Risk Status Alert High Risk Page 30
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Warning OK Unknown Page 31
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Resources Audit Committee - 24 September 2025 Subject: Internal Audit Plan 2024/25 – Progress to 31 July 2025 1. Purpose 1.1 The purpose of this report is to advise Members of progress to 31 July 2025 against the Internal Audit Plan for 2024/25. 1.2 The report also advises Members of: recently issued Internal Audit reports and action plans the status of implementation progress relating to action plans from previously issued Internal Audit reports. 2. Recommendations 2.1 It is recommended that Members note the contents of this report. 3. Background 3.1 The annual audit plan for 2024/25 was approved by the Audit Committee on 4 December 2024. This report provides information on the progress in implementing the plan. 3.2 When audit reports are issued by Internal Audit, an action plan is agreed with management in relation to issues highlighted by the audit report. Progress on implementing the actions is monitored by Internal Audit on a monthly basis and reported to the Audit Committee. 4. Main Issues 4.1. The annual audit plan sets out the audit coverage for the year utilising available staff resources to enable the Shared Service Manager – Audit & Fraud to provide the annual internal audit opinion regarding the adequacy and effectiveness of internal control within the Council. 4.2 In accordance with the risk-based audit methodology, for each audit, one of four audit opinions is expressed: Strong In our opinion there is a sound system of internal controls designed to ensure that the organisation is able to achieve its objectives. Satisfactory In our opinion isolated areas of control weakness were identified which, whilst not systemic, put some organisation objectives at risk. Item 6 Page 33
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Requires Improvement In our opinion systemic and/or material control weaknesses were identified such that some organisation objectives are put at significant risk. Unsatisfactory In our opinion the control environment was considered inadequate to ensure that the organisation is able to achieve its objectives. 4.3 Detailed findings and recommendations reported to management are graded using the following criteria: Red In our opinion the control environment is insufficient to address the risk and this could impact the Council as a whole. Corrective action must be taken and should start immediately. Overseen to completion by Corporate Management Team. Amber In our opinion there are areas of control weakness which we consider to be individually significant but which are unlikely to affect the Council as a whole. Corrective action must be taken (some exceptions may be agreed with Internal Audit) within reasonable timeframe. Overseen to completion by Chief Officer/Head of Service. Green In our opinion the risk area is well controlled or our audit highlighted areas for minor control improvement and/or areas of minor control weakness. Process improvements/efficiencies may be actioned at management discretion in consultation with Internal Audit. Managed by service owner. Not reported in Audit Committee papers. 4.4 There were no audit reviews finalised since the June 2025 Audit Committee. This is due to an unanticipated vacancy arising in the team which has resulted in a delay to the completion of some audits. These audits have been reallocated to other members of the team to finalise and updates will be provided to the December Audit Committee. 4.5 In relation to audit work for the Integration Joint Board, work is now complete for the 2024/25 audit plan with regular reporting to the Integration Joint Board Audit & Performance Committee. 4.6 In relation to the Valuation Joint Board, the audit for 2024-25 is now complete. 4.7 In relation to the Leisure Trust, the audit for 2024-25 is now complete. 4.8 Internal Audit Action Plans In relation to audit action plans, these are monitored by Internal Audit on a monthly basis. The status report at 30 June 2025 is provided at Appendix 2. Ongoing Corporate Fraud Team Work 4.9 The Corporate Fraud team’s day to day work continues to focus on referrals relating to council tax reduction/single person discounts, joint working with DWP in relation to housing benefit and council tax reduction, referrals relating to housing tenancies and investigating relevant national fraud initiative matches. Page 34
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4.10 The Internal Audit Team and the Corporate Fraud Team continue to work together as appropriate in order to ensure a joined-up approach to fraud investigation and detection for example in relation to whistleblowing enquiries. National Fraud Initiative 4.11 The National Fraud Initiative is a series of biennial exercises run by the Cabinet Office and Audit Scotland to identify or prevent fraud and error by matching electronic data held by public bodies. Participating bodies are required to investigate data discrepancies within a set timescale and report back on any savings. 4.12 In relation to the 2024 exercise, a significant number of matches have now been received at 31 July 2025 in relation to a range of datasets including Housing Benefit, Council Tax Reduction, Payroll, Business Rates, Creditors and Blue Badges. Progress is as follows: Matches Received Number Investigated No Issue Fraud (1) Error (2) Value of Fraud/Error 9712 741 524 44 80 £79,576.25 (1) Fraud relates to CTR cases where income was not declared. Recovery is in progress. (2) Errors relate to blue badges which had not been cancelled on the system and one case where CTR was not updated in relation to a deceased case. Benchmarking 4.13 In accordance with the Council’s Strategic Improvement Framework, the Council’s Internal Audit service continues to be part of a benchmarking group which involves seven other Councils. 4.14 Meetings will continue to take place during 2025 to review performance and identify other areas for sharing of best practice. 5. People Implications 5.1 There are no people implications. 6. Financial and Procurement Implications 6.1 The Corporate Fraud Team activity can result in actual recoveries, charges and re-billings. The total amount of actual recoveries, charges and re-billings identified from 1 April 2024 to 31 March 2025 was £123,651. 6.2 There are no procurement implications arising from this report. Page 35
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7. Risk Analysis 7.1 There is a risk that failure to deliver the Internal Audit Plan would result in an inability to provide a reasonable level of assurance over the Council’s system of internal financial control to those charged with governance. The main basis for providing assurance is coverage of the planned risk-based audits. Every endeavour is made to ensure that no material slippage occurs in risk-based audits by concentrating resources on these audits. 8. Equalities Impact Assessment (EIA) 8.1 There are no direct equalities impacts arising from the report however where an agreed action results in a change in process this will be considered for equalities impact by the relevant service. 9. Consultation 9.1 This report has been subject to consultation with appropriate Chief Officers. 10. Strategic Assessment 10.1 This report helps ensure strong governance and will help support delivery of the Council Plan, and in particular priority 4: Inclusive and Adaptable, with the Council seeking to provide high quality and adaptable services that deliver value for money. .................................... Laurence Slavin Chief Officer - Resources Date: 25 August 2025 Person to Contact: Andi Priestman, Shared Service Manager – Audit & Fraud E-mail: andi.priestman@west-dunbarton.gov.uk Appendices: 2024/25 Annual Audit Plan – Progress to 31 July 2025 (Appendix 1) Status of Internal Audit Action Plans at 30 June 2025 (Appendix 2) Internal Audit Reports - Copies available on request Wards Affected: All wards Page 36
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2024-2025 Internal Audit Annual Audit Plan – Progress to 31 July 2025 Item 6 Appendix 1 Audit/Status Not Started Planning Fieldwork Fieldwork Complete Draft Report Final Report Date Reported to Audit Committee Risk-Based Reviews Void Management June 2025 Housing Repairs and Maintenance June 2025 Budgetary Control Participatory Budgeting Deferred to future audit plan. Corporate Procurement Regularity Audits Payroll High Earners – Quarterly Review Quarterly exercise is underway. Residential Care Homes – Overtime Not started. Other Work Integration Joint Board – Internal Audit Service The 2024/25 audit plan is complete. Valuation Joint Board – Internal Audit Service The 2024/25 audit plan is complete. Leisure Trust – Internal Audit Service The 2024/25 audit plan is complete. National Fraud Initiative Matches for the 2024 Exercise have now been received and investigations are underway. Completion of 23/24 Audit Plan Audits Completed: Debt Recovery; UK Shared Prosperity Fund; Commercial Waste Income Billing and Collection. Page 37
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLANS AT 30 JUNE 2025 Summary: Section 1 Summary of Management Actions due for completion by 30/6/2025 There were 32 actions due for completion by 30 June 2025, 20 actions have been reported as completed and for 12 actions, a revised completion date has been agreed. Section 2 Summary of Current Management Actions Plans at 30/6/2025 At 30 June 2025 there were no audit reports delayed due to management not finalising the action plan within agreed timescales. Section 3 Current Management Actions at 30/6/2025 At 30 June 2025 there were 38 current audit action points. Section 4 Analysis of Missed Deadlines At 30 June 2025 there were 13 audit action points where the original agreed deadline has been missed. Section 5 Summary of Action Plan Points by Audit Year Item 6 Appendix 2 Page 39
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS SUMMARY OF ACTION PLANS DUE FOR COMPLETION BY 30.06.2025 SECTION 1 Strategic Area No. of Actions Due No. of Actions Completed Deadline missed Revised Date set* Response outstanding* Roads and Neighbourhood 1 1 HSCP 1 1 Education 1 1 Regulatory and Regeneration 1 1 Housing and Employability 28 17 11 Total 32 20 12 * These actions are included in the Analysis of Missed Deadlines – Section 4 Page 40
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS SUMMARY OF CURRENT ACTION PLANS AT 30.06.2025 SECTION 2 CURRENT ACTIONS BY STRATEGIC AREA Roads and Neighbourhood Due for completion December 2025 1 Total Actions 1 Education Due for completion September 2025 1 Total Actions 1 Housing & Employability Due for completion July 2025 5 Due for completion August 2025 5 Due for completion September 2025 5 Due for completion November 2025 1 Due for completion December 2025 7 Due for completion January 2026 1 Due for completion March 2026 10 Due for completion June 2026 1 Due for completion July 2026 1 Total Actions 36 Total current actions: 38 Page 41
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date Current Internal Audit Action Plans Supplier Management (Report Issued March 2023) Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/158 HSCP Formal Contract and Supplier Management (Amber) Development of a Contracts Register to be stored centrally and controlled by the CCQ Team. By the due date it will have been developed to include a risk register in RAG format to cover contract start date, end date, extension date, CI scores, spend status, Quality monitoring information. Risk register will also be used to programme in more to review services well ahead of contract end date. 31-Dec-2023 30-Jun-2025 HSCP Head of Strategy and Transformation Chief Officer HSCP Board Fleet Management (Report Issued May 2023) Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/176 Lack of measuring of individual vehicle efficiency/Co2 emissions (Amber) Management will further consider reporting of Co2 emissions as part of the net zero strategy and transition to electric vehicles. In relation to vehicle efficiency, as fuel efficiency is affected by individual driver style, management will consider whether driver information scores could be collated and provided to management to prioritise or target individual training. 31-Oct-2024 30-Jun-2025 Chief Officer Roads and Neighbourhood Chief Officer Roads and Neighbourhood Page 42
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date CSA Education Procedures (Report Issued May 2024) Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/231 Adequacy of School Fund Procedures A review of the procedures will be undertaken and updated to reflect up to date practice and provide sufficient guidance to staff involved in maintaining and managing school funds. A copy of the updated school fund procedures will be disseminated to Heads of establishments. 31-Mar-2025 30-Sep-2025 Senior Education Officer Chief Officer – Education, Learning and Attainment Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/235 Procurement Awareness Training Chief Officer, Regulatory & Regeneration is hoping to recruit to the vacant Procurement Manager post by early June 2024. The incoming Procurement Manager will be provided with the opportunity to agree the revised training and guidance. 31-Aug-2024 30-Jun-2025 Chief Officer, Regulatory & Regeneration Chief Officer, Regulatory & Regeneration Corporate Procurement below £10k (Report Issued June 2024) Page 43
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date UK Shared Prosperity Fund Assurance Review (Report Issued June 2024) Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/237 Inadequate policies and procedures to support closure of the fund (Amber) Management are in regular discussions with Government officials about continuity of UKSP Funds. Should these discussions prove to be unsuccessful and there is no further funding from this source, WDC has a full set of HR policies relating to staff terms and conditions and processes for dealing with the loss of funding. We will begin to implement the appropriate course of action three months in advance of the fund closing. As an update, the funding has been extended into Year 4 (25/26) and a report will be presented to IRED Committee in February 2025 on further year funding. 31-Dec-2024 31-Dec-2025 Chief Officer Housing & Employability/ Chief Officer, Resources Chief Executive Void Management (Report Issued May 2025) Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/255 /1 Adequacy of Tenant Rechargable Repairs Process (Amber) As part of Void working group remit conduct annual review of pre-termination process and paperwork, unless required to be reviewed sooner. 31-Aug-2025 31-Aug-2025 Housing Operations Manager Chief Officer Housing and Employability IAAP/255 /2 Adequacy of Tenant Rechargable Repairs Process (Amber) Introduced new work code to identify clear out recharges, to allow CAS to include description when issuing re-charge letter. 30-Jun-2025 30-Jun-2025 IHMS Change Officer Chief Officer Housing and Employability IAAP/255 /3 Adequacy of Tenant Rechargable Repairs Process (Amber) Review recharge process to include guidance for staff to follow should previous tenant query/ dispute recharge amount invoiced for and be incorporated into Void Procedure and Recharge processes. 30-Jun-2025 31-Aug-2025 Maintenance Manager/ Housing Operations Manager Chief Officer Housing and Employability Page 44
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/255 /4 Adequacy of Tenant Rechargable Repairs Process (Amber) Design and implement new PowerBi clear out report. 31-Aug-2025 31-Aug-2025 Housing Operations Manager Chief Officer Housing and Employability IAAP/256 /1 Adequacy of Job Costing Process (Amber) Review how SORs labour times and QL system data is being used by supervisors to ensure effective resource planning and implement any necessary changes to ensure and improve efficiency. 30-Jun-2025 30-Jun-2025 Maintenance Manager Chief Officer Housing and Employability IAAP/256 /2 Adequacy of Job Costing Process (Amber) Review the existing reporting cycle for void property estimated costs against recharge costs to ensure these are effective and informative. 30-Jun-2025 30-Jun-2025 Building Services Manager Chief Officer Housing and Employability IAAP/256 /3 Adequacy of Job Costing Process (Amber) Continue to report void management data at appropriate forums including Building Services Board. 31-Mar-2026 31-Mar-2026 Housing Operations Manager Chief Officer Housing and Employability IAAP/257 /1 Lack of monitoring and authorisation of repairs costs to void properties (Amber) Review void authorisation processes with Housing Operations and agree if further checks and balances within empty homes management are necessary. 30-Jun-2025 30-Jun-2025 Building Services Manager Chief Officer Housing and Employability IAAP/257 /2 Lack of monitoring and authorisation of repairs costs to void properties (Amber) Review in-service variation processes and identify necessary improvement actions. 30-Jun-2025 30-Jun-2025 Maintenance Manager/IHMS Change Officer/ Support Services Coordinator Chief Officer Housing and Employability IAAP/257 /3 Lack of monitoring and authorisation of repairs costs to void properties (Amber) Implement any necessary changes to the variation process and agreed authorisation processes. 31-Jul-2025 31-Jul-2025 Housing Operations Manager Chief Officer Housing and Employability IAAP/258 /1 Ensuring Value for Money when using external contractors (Amber) Carry out a review of non-specialist void contractor rates and compare against the National Schedule of Housing Rates to establish if these are comparable and provide Value for Money. 30-Jun-2025 30-Jun-2025 Contracts Co- ordinator Chief Officer Housing and Employability IAAP/258 /2 Ensuring Value for Money when using external contractors (Amber) Carry out analysis of the anticipated demand for non-specialist contractors for void properties repairs in 2025/2026 and 2026/2027. 30-Jun-2025 30-Jun-2025 Maintenance Coordinators/ Contract Coordinator Chief Officer Housing and Employability Page 45
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/258 /3 Ensuring Value for Money when using external contractors (Amber) If appropriate arrange and carryout a full tender exercise to engage a void property contractor from an existing framework or arrange an open tender exercise. 30-Nov-2025 30-Nov-2025 Contracts Manager Chief Officer Housing and Employability Housing Repairs and Maintenance (Report Issued May 2025) Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/263 /1 Adequacy of Housing Client Function (Red) Carry out a review of the Client Function to identify any areas that require improvement to ensure quality, value for money repair and maintenance services are provided. 31-Jul-2025 31-Mar-2026 Building Services Manager Chief Officer Housing and Employability IAAP/263 /2 Adequacy of Housing Client Function (Red) Implement any necessary Client Function changes identified. 31-Mar-2026 31-Mar-2026 Building Services Manager Chief Officer Housing and Employability IAAP/263 /3 Adequacy of Housing Client Function (Red) Develop Building Services 2025/2026 improvement action plan to include appropriate financial management, service costs recovery and budget management actions. 30-Jun-2025 31-Dec-2025 Building Services Manager Chief Officer Housing and Employability IAAP/263 /4 Adequacy of Housing Client Function (Red) Present Building Services 2025/2026 improvement action plan to the Building Service Board for approval. 30-Jun-2025 31-Dec-2025 Building Services Manager Chief Officer Housing and Employability IAAP/263 /5 Adequacy of Housing Client Function (Red) Complete actions within Building Services 2025/2026 action plan. 31-Mar-2026 31-Mar-2026 Building Services Manager Chief Officer Housing and Employability IAAP/263 /6 Adequacy of Housing Client Function (Red) Carry out a review of variation procedure and authorisation limits and implement any necessary changes ensuring robust procedures are in place and provide value for money services. 30-Jun-2025 31-Dec-2025 Contracts Co- ordinator/ Support Services Co-ordinator Chief Officer Housing and Employability Page 46
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/264 /5 Lack of Checking of Overtime Claims (Red) Monitor and review revised processes to ensure effectiveness. 31-Jul-2025 31-Jul-2025 Building Services Manager Chief Officer Housing and Employability IAAP/265 /1 Adequacy of Stock Control Procedures (Amber) Complete the procurement of an appropriate barcoding hardware and software solution. 30-Jun-2025 30-Jun-2026 Contracts Manager Chief Officer Housing and Employability IAAP/265 /2 Adequacy of Stock Control Procedures (Amber) Implement the procurement of an appropriate barcoding hardware and software solution. 31-Jul-2025 31-Jul-2026 Contracts Co- ordinator Chief Officer Housing and Employability IAAP/265 /3 Adequacy of Stock Control Procedures (Amber) Present a decision paper to the IHMS Project Board to approve development of the automatic reordering module. 30-Jun-2025 31-Dec-2025 IHMS Change Officer Chief Officer Housing and Employability IAAP/265 /4 Adequacy of Stock Control Procedures (Amber) Following approval, complete necessary work implement, test and go live on QL system. 31-Aug-2025 31-Aug-2025 IHMS Change Officer Chief Officer Housing and Employability IAAP/265 /5 Adequacy of Stock Control Procedures (Amber) Fully implement phase 2 of the review of Building Services structure in warehouse services. 31-May-2025 01-Aug-2025 Contracts Co- ordinator Chief Officer Housing and Employability IAAP/265 /6 Adequacy of Stock Control Procedures (Amber) Complete regular stock takes ensuring every commodity has been counted and anomalies identified are investigated and rectified. Provide stock valuation reports for 2024/2025. 31-May-2025 31-May-2025 Contracts Co- ordinator Chief Officer Housing and Employability IAAP/265 /7 Adequacy of Stock Control Procedures (Amber) Review warehouse facilities security arrangements and implement necessary changes ensuring stock is appropriately managed and secured. 31-May-2025 31-May-2025 Contracts Co- ordinator Chief Officer Housing and Employability IAAP/265 /8 Adequacy of Stock Control Procedures (Amber) Develop written procedures for stores and stock control to include version control and will be approved by the Chief Officer. 31-May-2025 31-May-2025 Contracts Co- ordinator Chief Officer Housing and Employability Page 47
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/265 /9 Adequacy of Stock Control Procedures (Amber) Training will be provided and distribution of the new procedures to all stores staff will be recorded in a register. Staff will sign the register to confirm receipt of the procedures. 31-May-2025 30-Sep-2025 Contracts Co- ordinator Chief Officer Housing and Employability IAAP/266 /1 Lack of Recovery Plan to reduce overspend (Amber) Develop a cost recovery plan for 2025/2026 and gain approval of the plan from the Building Services Board. 30-Jun-2025 31-Dec-2025 Building Services Manager Chief Officer Housing and Employability IAAP/266 /2 Lack of Recovery Plan to reduce overspend (Amber) Complete actions in the cost recovery plan for 2025/2026 reporting progress at the Building Services Board and other appropriate forums. 31-Mar-2026 31-Mar-2026 Building Services Manager Chief Officer Housing and Employability IAAP/266 /3 Lack of Recovery Plan to reduce overspend (Amber) Drive down tenant and resident reactive repair demand in line with the criteria within the new repairs policy. 31-Mar-2026 31-Mar-2026 Building Services Manager Chief Officer Housing and Employability IAAP/267 /3 Adequacy of monitoring of Schedule of Rates for Specifying and Controlling Repairs & Maintenance Work (Amber) Implement any necessary changes identified in the variation processes. 31-Jul-2025 31-Jul-2025 Maintenance Manager Chief Officer Housing and Employability IAAP/267 /4 Adequacy of monitoring of Schedule of Rates for Specifying and Controlling Repairs & Maintenance Work (Amber) Reduce the average percentage of variation on non emergency reactive repairs by 5% in 2025/2026 compared the level in 2024/2025. 31-Mar-2026 31-Mar-2026 Maintenance Manager Chief Officer Housing and Employability IAAP/268 /2 Lack of Post Inspections (Amber) Complete fix in QL post inspection module. 30-Jun-2025 30-Jun-2025 Support Services Co-ordinator Chief Officer Housing and Employability IAAP/268 /3 Lack of Post Inspections (Amber) Monitor the post inspection process to ensure adherence identifying failures and review data at full management team weekly catch up meetings. 30-Jun-2025 30-Jun-2025 Maintenance Manager Chief Officer Housing and Employability IAAP/268 /4 Lack of Post Inspections (Amber) Report post inspection performance to Building Services Board and other appropriate forums. 30-Jun-2025 30-Jun-2025 Building Services Manager Chief Officer Housing and Employability Page 48
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/268 /5 Lack of Post Inspections (Amber) Review post inspection targets to ensure these are effective and repair standards are being met / improved. 30-Sep-2025 30-Sep-2025 Maintenance Manager Chief Officer Housing and Employability IAAP/269 /1 Inefficient Allocation of Resources (Amber) Include an action in the Building Services 2025/2026 improvement action plan to have an effective imprest stock provision in place. 30-Jun-2025 31-Dec-2025 Building Services Manager Chief Officer Housing and Employability IAAP/269 /2 Inefficient Allocation of Resources (Amber) Develop alternative scheduling and appointment system to replace DRS. 31-Jul-2025 31-Jul-2025 IHMS Change Officer Chief Officer Housing and Employability IAAP/269 /3 Inefficient Allocation of Resources (Amber) Seek approval from Building Services Board to implement new system. 31-Aug-2025 31-Aug-2025 Building Services Manager Chief Officer Housing and Employability IAAP/269 /4 Inefficient Allocation of Resources (Amber) Implement new scheduling and appointment system. 30-Sep-2025 30-Sep-2025 Building Services Manager/IHMS Change Officer Chief Officer Housing and Employability IAAP/270 /1 Lack of Risk Assessments for Staff with Secondary Employment (Amber) Include a reminder in scheduled toolbox talks and team briefs team members require to inform management of any secondary paid work/employment as detailed within terms and conditions of employment. 30-Jun-2025 30-Jun-2025 Building Services Co-ordinators Chief Officer Housing and Employability IAAP/270 /2 Lack of Risk Assessments for Staff with Secondary Employment (Amber) Review and if necessary complete risk assessments for employees that have informed management of secondary paid work. 31-Aug-2025 31-Aug-2025 Building Services Co-ordinators Chief Officer Housing and Employability IAAP/271 /1 Adequacy of Monitoring of Vehicle Usage (Amber) Develop a formal fuel emission and tracking guidance procedure and rollout for use within service. 30-Sep-2025 30-Sep-2025 Contracts Manager Chief Officer Housing and Employability IAAP/271 /2 Adequacy of Monitoring of Vehicle Usage (Amber) Continue to monitor automated reports from webfleet system and take appropriate action in line with Fuel Emission and Tracking Protocol and appropriate Council policies. 31-Mar-2026 31-Mar-2026 Maintenance Manager/ Contracts Manager Chief Officer Housing and Employability Page 49
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 30.06.2025 SECTION 3 Status Key On track Complete Overdue – update required Missed original due date Code Agreed Action Status Original Due Date Due Date Assigned To Managed By IAAP/272 /1 Completeness and Accuracy of Right First Time Performance Indicator (Amber) Reconcile Right First Time data for year 2024/2025 and present performance information for review. 30-Jun-2025 30-Jun-2025 Building Services Support Oficer Chief Officer Housing and Employability IAAP/272 /2 Completeness and Accuracy of Right First Time Performance Indicator (Amber) Review performance data for accuracy. 30-Jun-2025 30-Jun-2025 IHMS Change Officer Chief Officer Housing and Employability IAAP/273 /1 Lack of Standard Operating Procedure Manual (Amber) Review procedure file within x-drive to identify if there are gaps in available procedures that are not available within QL to ensure team members have appropriate guidance to effectively complete tasks. 30-Jun-2025 30-Sep-2025 Maintenance Co- ordinators Chief Officer Housing and Employability IAAP/273 /2 Lack of Standard Operating Procedure Manual (Amber) Develop and add any necessary procedures and processes to procedures file within the x-drive. 31-Dec-2025 31-Dec-2025 Maintenance Co- ordinators Chief Officer Housing and Employability IAAP/274 /2 Compliance with HMRC Benefit in Kind Guidelines (Amber) Review process for homestart personal use disclaimer protocol to ensure this is fit for purpose and exercise is carried out annually. 31-Jul-2025 31-Jul-2025 Projects Manager Chief Officer Housing and Employability IAAP/274 /3 Compliance with HMRC Benefit in Kind Guidelines (Amber) Carry out a review of the homestart protocol with workforce, TUs and transport service ensuring this remains fit for purpose. 31-Jan-2026 31-Jan-2026 Maintenance Manager/Project s Manager Chief Officer Housing and Employability IAAP/275 /2 Adequacy of Contract Monitoring (Amber) Review the Councils’ current term contracts and identify a suitable contract/contractor that is equipped to carry out the type of work required. Instruct team on revised process and details of the contractor to be engaged. 30-Jun-2025 30-Jun-2025 Contracts Manager/ Maintenance Manager Chief Officer Housing and Employability Page 50
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS ANALYSIS OF MISSED DEADLINES AT 30.06.2025 SECTION 4 Status Key On track Complete Overdue – update required Missed original due date –new date set Report Agreed Action Original Due Date Revised Date Management Comments CSA Education Procedures (May 2024) Adequacy of School Fund Procedures A review of the procedures will be undertaken and updated to reflect up to date practice and provide sufficient guidance to staff involved in maintaining and managing school funds. A copy of the updated school fund procedures will be disseminated to Heads of establishments. 31-Mar-2025 31-May-2025 30-Jun-2025 The policy has now been drafted and will be discussed with Heads of Establishment at the June Business Meeting. Housing Repairs and Maintenance (May 2025) Adequacy of Stock Control Procedures (Amber) Fully implement phase 2 of the review of Building Services structure in warehouse services. 31-May-2025 01-Aug-2025 It has been necessary to extend completion date due to delays within Job Evaluation in terms of reviewing the role profile of warehouse assistant. Void Management (May 2025) Adequacy of Tenant Rechargable Repairs Process (Amber) Review recharge process to include guidance for staff to follow should previous tenant query/dispute recharge amount invoiced for and be incorporated into Void Procedure and Recharge processes. 30-Jun-2025 31-Aug-2025 Review is underway but deadline required to be extended. Housing Repairs and Maintenance (May 2025) Adequacy of Housing Client Function (Red) Carry out a review of the Client Function to identify any areas that require improvement to ensure quality, value for money repair and maintenance services are provided. 31-Jul-2025 31-Dec-2025 Client function within building services discussed at BS Board but realistically will take another 3-6 months to embed. Housing Repairs and Maintenance (May 2025) Adequacy of Housing Client Function (Red) Develop Building Services 2025/2026 improvement action plan to include appropriate financial management, service costs recovery and budget management actions. 30-Jun-2025 31-Dec-2025 Client function within building services discussed at BS Board but realistically will take another 3-6 months to embed. Page 51
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 31.05.2025 SECTION 4 Status Key On track Complete Overdue – update required Missed original due date Report Agreed Action Original Due Date Revised Date Management Comments Housing Repairs and Maintenance (May 2025) Adequacy of Housing Client Function (Red) Present Building Services 2025/2026 improvement action plan to the Building Service Board for approval. 30-Jun-2025 31-Dec-2025 Client function within building services discussed at BS Board but realistically will take another 3-6 months to embed. Housing Repairs and Maintenance (May 2025) Adequacy of Housing Client Function (Red) Carry out a review of variation procedure and authorisation limits and implement any necessary changes ensuring robust procedures are in place and provide value for money services. 30-Jun-2025 31-Dec-2025 Client function within building services discussed at BS Board but realistically will take another 3-6 months to embed. Housing Repairs and Maintenance (May 2025) Inefficient Allocation of Resources (Amber) Include an action in the Building Services 2025/2026 improvement action plan to have an effective imprest stock provision in place. 30-Jun-2025 31-Dec-2025 Work is ongoing but should be in place within 3-6 months. Housing Repairs and Maintenance (May 2025) Adequacy of Stock Control Procedures (Amber) Complete the procurement of an appropriate barcoding hardware and software solution. 30-Jun-2025 30-Jun-2026 In-house option being taken forward and target set for June 2026. Housing Repairs and Maintenance (May 2025) Adequacy of Stock Control Procedures (Amber) Present a decision paper to the IHMS Project Board to approve development of the automatic reordering module. 30-Jun-2025 31-Dec-2025 The process is currently being reviewed and decision paper will be presented to Project Board by end of December 2025. Housing Repairs and Maintenance (May 2025) Adequacy of Stock Control Procedures (Amber) Training will be provided and distribution of the new procedures to all stores staff will be recorded in a register. Staff will sign the register to confirm receipt of the procedures. 31-May-2025 31-Dec-2025 Procedures have been developed and training/sign off will be completed by end of September 2025. Housing Repairs and Maintenance (May 2025) Lack of Recovery Plan to reduce overspend (Amber) Develop a cost recovery plan for 2025/2026 and gain approval of the plan from the Building Services Board. 30-06-2025 31-Dec-2025 Further work is required to undertake relevant analysis and prepare recovery plan for approval which is now anticipated to be by 31 December 2025. Page 52
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLAN POINTS CURRENT ACTION PLANS AT 31.05.2025 SECTION 4 Status Key On track Complete Overdue – update required Missed original due date Report Agreed Action Original Due Date Revised Date Management Comments Housing Repairs and Maintenance (May 2025) Lack of Standard Operating Procedure Manual (Amber) Review procedure file within x-drive to identify if there are gaps in available procedures that are not available within QL to ensure team members have appropriate guidance to effectively complete tasks. 30-06-2025 30-Sep-2025 A review of procedures in the x drive has started and will be completed by end of September 2025. Page 53
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REPORT TO AUDIT COMMITTEE ON STATUS OF INTERNAL AUDIT ACTION PLANS SUMMARY OF ACTIONS BY AUDIT YEAR SECTION 5 Status at 30 June 2025 Current actions by GradeAudit Year No of Agreed Actions No of actions complete Red Amber Green* 2020/2021 25 25 0 0 0 2021/2022 51 50 0 0 1 2022/2023 51 48 0 0 3 2023/2024 62 48 0 2 12 2024/2025 80 31 7 29 13 Total 269 202 7 31 29 * Green actions are within the Council’s risk appetite and are therefore not included in Audit Committee reports. Page 54
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Audit Progress Report West Dunbartonshire Council August 2025 Item 7 Page 55
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Contents 1. Audit progress 2. National publications 3. FRC’s Audit Quality Inspection and Supervision Report 2025 Page 56
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01Audit progress Page 57
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4 Audit progress Status High - Likely to result in a material adjustment or a significant change to disclosures in the financial statements. Medium - Potential to result in a material adjustment or a significant change to disclosures in the financial statements. Low - Not considered likely to result in a material adjustment or a change to disclosures in the financial statements. Property, plant and equipment We require confirmation of the floor area measurement for a sample of revalued buildings. Medium Other outstanding information Officers are working to resolve our outstanding queries in the following areas: • Cashflow statement • Leases • Reserves • Short term debtors. Medium Other outstanding audit work We are completing our audit procedures in the following areas: • Financial instruments disclosures • Group accounts consolidation. Medium Audit quality control and completion procedures Our audit work is undergoing review by the Engagement Lead, Engagement Manager and Engagement Quality Reviewer, and further quality and compliance checks. In addition, there are residual procedures to complete, including updating post balance sheet event considerations to the point of issuing the opinion, obtaining final management representations and agreeing adjustments to the final set of accounts. Medium Annual Report and Accounts and letter of representation We will complete our final review of the annual report and accounts upon receipt of the signed version of the accounts and letter of representation. Low Purpose of this report This report provides the Audit Committee with information about progress in delivering our responsibilities as external auditors for West Dunbartonshire Council. 2023/24 audit status We are finalising our audit of the Council’s annual accounts for the year ended 31 March 2024. See the outstanding matters, at the time of reporting, set out below. We continue to meet regularly with officers to discuss audit progress. We will present our Annual Audit Report to the Council meeting on 29 October 2025. Page 58
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02National publications Page 59
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National publications 1. Audit Scotland – Accounts Commission annual review 2024/25 The report provides a review of the work of the Accounts Commission and the auditors it appoints to work on its behalf. Link: Our work and impact: Annual review 2024/25 2. Audit Scotland – Delivering for the future: Responding to the workforce challenge The report highlights some of the common points identified by auditors in their Best Value thematic reports, including those councils where auditors highlighted specific examples of good practice. The report also sets out a summary of the Accounts Commission’s overall expectations for Best Value in this area. Link: Delivering for the future: Responding to the workforce challenge Page 60
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03FRC’s Audit Quality Inspection and Supervision Report 2025 Page 61
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FRC’s Audit Quality Inspection and Supervision Report 2025 Audit quality The Financial Reporting Council’s (FRC) Audit Quality Inspection and Supervision Report 2025 on Forvis Mazars LLP was published on 15 July 2025, based on work undertaken during the 2024/25 inspection cycle, through review of a sample of our PIE and other AQR scope audits and other wider measures of audit quality such as the firm’s systems of quality management (SoQM). Audit quality inspections We are pleased that this year’s AQR results reflect our significant progress in delivering audit quality, showing a 90% profile of audits inspected as good or limited improvements required. Moreover, the combined results of AQR inspections together with the firm’s internal file inspections of AQR-scope audits this cycle show 86% as either good or limited improvements required. This is a testament to our team’s commitment to audit quality and their hard work, and the effectiveness of our long-term investment in audit quality through training, technology, leadership and a culture of continuous improvement. We are encouraged that the FRC recognises that the firm has continued to invest in audit quality and made good progress through our Audit Quality Transformation Plan (AQTP). The FRC also noted that the firm’s communications remain clear and consistent around the importance of audit quality, and the firm’s new four-year strategy and the firm’s new senior management continue to reinforce this message. System of quality management (SoQM) This is the first inspection cycle when ISQM (UK) has been applicable for the whole period, as 2023/24 was a transitional cycle from the ISQC (UK) 1. We have invested considerable time and resources in developing our SoQM and in monitoring responses, and we are pleased to see the FRC recognise this commitment. We recognise that whilst significant improvements have been made in the last year, we continue to enhance and develop our approach and documentation. We are in the process of addressing the findings raised this cycle – strengthening our responses to quality risks, design assessment and monitoring activities. Key actions To sustain and build on our progress, we will keep working hard and putting quality first, every time. We have strengthened our team, bringing in experienced individuals and top talent to support our success. We have taken robust actions to address the findings and root causes and apply the positive learnings. These include strengthening the firm’s policy on file archiving, reinforcing the guidance on group audits, and further improving our portfolio reviews and project management. We will sustain our efforts in ensuring that our quality plan and actions are fully embedded in our firm’s SoQM as part of ‘business as usual’ (BAU) and within the firm’s culture. Good practice on individual file inspections The FRC has identified examples of good practice, including on revenue, group audits and technical insurance provisions (including the involvement of actuarial specialists). These are positive indications of the effectiveness of our actions to enhance quality which are now better embedded into our firm’s SoQM. We are sharing these good practice examples with our teams to encourage similar practices to drive consistency and enhance audit quality. 4 4 5 4 9 2 1 4 4 0 1 3 0 1 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2020/21 2021/22 2022/23 2023/24 2024/25 Results of inspection of individual audits at Forvis Mazars over last five years 90%of audits inspected by the FRC in 2024/25 were assessed as requiring no more than limited improvements Good or limited improvements required Improvements required Significant improvements required Commitment to audit quality Audit quality remains a strategic priority for our firm and our people. Our commitment and key strategic priority is to ensure the delivery of high-quality audits and to play our part in safeguarding the public interest, restoring trust in audit and corporate governance. Whilst we are encouraged by the improvements, we know that audit quality is not a fixed point: sustaining the delivery of quality requires consistent focus on people, processes and technology. We remain focused on continuous improvement and on delivering audits that serve the public interest in the long term. Page 62
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Contact Forvis Mazars Tom Reid Director Tom.Reid@mazars.co.uk Forvis Mazars LLP is the UK firm of Forvis Mazars Global, a leading global professional services network. Forvis Mazars LLP is a limited liability partnership registered in England and Wales with registered number OC308299 and with its registered office at 30 Old Bailey, London, EC4M 7AU. Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001139861. VAT number: GB 839 8356 73 © Forvis Mazars 2025. All rights reserved. Page 63
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West Dunbartonshire Council Report by the Chief Officer - Resources Audit Committee - 24 September 2025 Subject: 2024/25 Treasury Management Annual Report 1. Purpose 1.1 The purpose of this report is to advise the Committee of the operation of the treasury function and its activities in 2024/25 and request that the Committee remits the report to the full Council for their approval. 2. Recommendations 2.1 Committee to note the contents of the 2024/25 Annual Treasury Management Report. 2.2 Committee to remit the 2024/25 Annual Treasury Management Report. to full Council for approval. 3. Background 3.1 In accordance with the Treasury Policy governing the Council’s treasury management activities the Chief Officer - Resources is required to provide an Annual Report to Members regarding the Treasury function. 3.2 One of the key clauses is that a responsible body is required to ensure effective scrutiny of the treasury management strategy and polices. Within West Dunbartonshire Council the body identified to fulfil this role is the Audit Committee. 4. Main Issues 2024/25 Treasury Management Annual Report 4.1 A copy of the 2024/25 Treasury Management Annual Report is attached (Appendix 1) with it based upon the Council’s unaudited 2024/25 Financial Statements. 4.2 The report details the loans borrowed and repaid during the course of the year, associated interest rates and debt rescheduling undertaken. 4.3 External borrowing (excluding Public Private Partnership (PPP) borrowing and leases) has increased during the year from £718.597m at the beginning of the year to £789.860m at the end of the year. This was mainly due to capital expenditure and the repayment of temporary loans. Over the year as new debt has been borrowed and maturing debt replaced, the average interest Item 8 Page 65
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rate on loans held has decreased from 4.48% at 31 March 2024 to 4.35% at 31 March 2025. 4.4 Consideration was given to available interest rates, and mainly short-term borrowing has been utilised to finance the current capital programme to take advantage of slightly lower interest rates. 4.5 Investments have decreased as at the 31 March 2025 from £28.997m at the beginning of the year to £13.820m at the year-end. The average interest rate on these investments held as at 31 March 2025 decreased from 4.62% to 4.51%. 4.6 As at 31 March 2025 fixed rate borrowing under 12 months was 39.29%. This is below the maximum allowable limit for short term debt and is as a result of action taken to reprofile the debt from short term to long loans. We will continue to take action with a longer term target to bring short term borrowing toward a figure less than 30% of the overall debt portfolio however this needs to be done prudently whilst monitoring projected future interest rates. All other year end indicators advised within Appendix 1 of this report are within the limits previously agreed by Council. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no personnel issues. 7. Financial and Procurement Implications 7.1 There are no financial or procurement implications. 8. Risk Analysis 8.1 There are three main risks associated with the formulation of prudential indicators. These are noted below. However the Council has robust monitoring processes in place and provides regular reports to Council and ensures further scrutiny by elected Members at the Audit Committee: (a) The risk of Counterparties default (i.e. loss of principal sum invested) however, the Council has robust controls included within its treasury management and investment strategies that will assist in mitigating this risk. (b) Capital inflation may increase capital expenditure levels, which in turn may affect the capital financing and borrowing requirement leading to an increase in borrowing, assuming no additional capital receipts or other funding are available. Page 66
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(c) Capital receipts which affect the capital financing and borrowing requirement may not materialise which would require additional borrowing to fund the financing requirement. 9. Equalities Impact Assessment 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report 11. Consultation 11.1 The views of Legal Services have been requested on this report and have advised there are neither any issues nor concerns. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the 5 strategic priorities of the Council’s Strategic Plan. 12.2 Treasury management contributes to the Financial Strategy via the interdependency that exists between pro-active treasury management and the formulation of long term financial plans. Laurence Slavin Chief Officer - Resources Date: 27 August 2025 Person to Contact: Lynsey Dickson, Finance Business Partner Council Offices, Church Street Email: Lynsey.Dickson@west-dunbarton.gov.uk Appendix: Appendix 1 - Annual Report 2024/25 -Treasury Management and Actual Prudential Indicators Background Papers: Loans register and portfolio; Debt rescheduling schedules; Prudential Indicators 2024/25 to 2033/34 and Treasury Management Strategy 2024/25 to 2033/34 (Council 26 March 2025); Page 67
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Mid-Year Monitoring Report 2024/25 - Treasury Management and Prudential Indicators (Council 18 December 2024); and Treasury Management Annual Report 2023/24 (Council 18 December 2024) Local Government Finance Circular 5/2022 - statutory repayment of debt – short term financial flexibility: guidance Wards Affected: No wards directly affected. Page 68
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Annual Report 2024/25 Treasury Management and Actual Prudential Indicators 1. Introduction 1.1 The Council’s treasury management activities are regulated by a variety of professional codes and statutes and guidance: • The Local Government in Scotland Act 2003 (the Act), provides the powers to borrow and invest as well as providing controls and limits on this activity. The Act permits Scottish Ministers to set limits either on the Council or nationally on all local authorities restricting the amount of borrowing which may be undertaken (although no restrictions were made in 2024/25). • Statutory Instrument (SSI) 29 of 2004, requires the Council to undertake any borrowing activity with regard to the CIPFA Prudential Code for Capital Finance in Local Authorities, and therefore operate the overall treasury function with regard to the CIPFA Code of Practice for Treasury Management in the Public Services; and the treasury activity with regard to the CIPFA Code of Practice for Treasury Management in Local Authorities. • Statutory Instrument (SI) 2016 No 123 requires the Council to document its policy on the prudent repayment of loans fund advances. 1.2 The Council has adopted the CIPFA Code of Practice for Treasury Management in the Public Sector and the Prudential Code and operates its treasury management service and capital programme in compliance with these Codes and the above requirements. These require that the prime objective of the treasury management activity is the effective management of risk, and that its borrowing activities are undertaken in a prudent, affordable and sustainable basis. 1.3 During 2024/25 the minimum reporting requirements were that the Council should receive the following reports: • an annual treasury strategy in advance of the new financial year (Council 27 March 2024) • a mid-year treasury update report (Council 18 December 2024) • an annual report following the financial year-end describing the activity compared to the strategy (this report). 1.4 This report sets out: • A summary of the 2024/25 strategy. • The Council’s treasury position at 31 March 2025. • The main Prudential Indicators and compliance with limits. • A summary of the economic factors affecting the strategy over 2024/25. • The 2024/25 Treasury activity. • Performance indicators set for 2024/25. Item 8 Appendix 1 Page 69
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• Disclosure regarding the repayment of loan fund advances for 2024/25. • Risk and Performance. 2. A Summary of the 2024/25 Strategy 2.1 Borrowing – it is forecast that the capital borrowing need (the Capital Financing Requirement) will be almost fully funded by external borrowing which is a mixture of short term and long term debt. Against this background and the risk within the economic forecast, caution will be adopted with the 2025/26 treasury operations. The Section 95 Officer will monitor interest rates in financial markets and adopt a pragmatic approach to changing circumstances. 2.2 Investments - with the economic background at the time, the investment climate had one over-riding risk consideration - counterparty security risk. As a result of the underlying concerns, officers maintained an operational investment strategy which tightened the controls already in place in the approved investment strategy. The Council’s investment strategy primary objectives are safeguarding the re- payment of the principal and interest of its investments on time first and ensuring adequate liquidity second – the investment return being a third objective. 2.3 Based on the above, the treasury strategy was to postpone borrowing (by not borrowing in advance of need) and in particular minimise longer term borrowing to avoid the cost of holding higher levels of investments at higher interest rates and to reduce counterparty risk. 3. The Council’s Treasury Position at 31 March 2025 3.1 During 2024/25, the Chief Officer – Resources, in line with the Treasury Strategy, managed the debt position with the use of internal funds as well as a mix of short-term and long-term external borrowing, and the treasury position at 31 March 2025 compared with the previous year was: Table 1 Treasury position – excluding PPP 31 March 2024 31 March 2025 Principal Average Rate Principal Average Rate Fixed Interest Rate Debt £718.597m 4.48% £789.860m 4.35% Variable Interest Rate Debt £0.000m 0.00% £0.000m 0.00% Total Debt £718.597m 4.48% £789.860m 4.35% Total Investments £28.997m 4.62% £13.820m 4.51% Net borrowing position £689.600m £776.040m 3.2 From the above table, it can be seen that the average interest rate on the debt held as at 31 March has decreased from 4.48% in 2024 to 4.35% as at 31 March 2025. At the same time the average rate has decreased on the investments held as at 31 March from 4.62% in 2024 to 4.51% as at 31 March 2025. 3.3 The external debt figure included within Table 1 includes both short term and long term debt. Page 70
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3.4 There are four treasury prudential indicators which cover the activity of the treasury function. Complying with these indicators reduces the risk of an adverse movement in interest rates impacting negatively on the Council’s overall position: • Upper limits on variable rate exposure. • Upper limits on fixed rate exposure. • Maturity structures of borrowing. • Total principal funds invested for greater than 365 days. 3.5 Table 2 shows the actual upper limits set per debt type and maturity as at 31 March 2025. Table 2 2024/25 Actual 2024/25 Revised Indicator Upper Limits on Fixed Interest Rates 100.00% 100.00% (Against maximum position) Upper Limits on Variable Interest Rates 0.00% 50.00% (Against maximum position) Maturity Structure Fixed Rate Year End Max Min Borrowing (%) Under 12 months 39.29% 50.00% 0% 12 months to 2 years 0.64% 50.00% 0% 2 years to 5 years 27.65% 50.00% 0% 5 years to 10 years 2.12% 50.00% 0% 10 years to 20 years 2.10% 50.00% 0% 20 years to 30 years 4.29% 50.00% 0% 30 years to 40 years 4.26% 50.00% 0% 40 years to 50 years 15.69% 100.00% 0% 50 years to 60 years 3.97% 100.00% 0% 60 years to 70 years 0.00% 100.00% 0% Maximum Principal Funds Invested £0.470m £1m Nil > 364 Days 4. The Main Prudential Indicators and Compliance with Limits 4.1 The Council is required by the Prudential Code to report the actual prudential indicators after the year end. 4.1.1 Capital Expenditure and its Financing This indicator shows total capital expenditure for the year and how this was financed. The decrease in capital expenditure between revised estimate and Page 71
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actual as noted below in Table 3 is due to expenditure which has been reprofiled from 2024/25 into the 2025/26 capital programme, together with resources. The indicators for 2024/25 will be revised in line with this. Table 3 2024/25 2024/25 Revised Actual Estimate* Capital expenditure: £122.234m £124.471m Resourced by: Capital receipts and grants £22.955m £26.549m Revenue £0.051m £0.250m Capital expenditure - additional need to borrow for in-year capital spend £99.228m £97.672m * From the Treasury Strategy Report 4.1.2 IFRS 16 Leases A new accounting standard, IFRS 16 Leases has been adopted within the Local Authority Accounting Code of Practice and is applicable to accounts for the year ending 31 March 2025. This generally requires all leases to be recognised on the balance sheet, which impacts both assets and other long term liabilities. The capital element of the lease is included as obligations under finance leases/creditors. The lease rentals comprise capital and interest elements. The capital element is applied to reduce the outstanding obligation and the interest element is charged to revenue on a straight-line basis over the terms of the lease. It is important to note that although these technical accounting changes will impact the CFR, they do not impact the borrowing required to finance capital plans. 4.1.3 Gross Borrowing and the Capital Financing Requirement (CFR) In order to ensure that borrowing levels are prudent, over the medium term the Council’s gross borrowing must only be used for capital purposes. Gross borrowing should not therefore, except in the short term, exceed the total of the capital financing requirement in the preceding year (2024/25) plus the estimates of any additional capital financing requirement for the current (2025/26) and next two financial years. This essentially means that the Council is not borrowing to support revenue expenditure. This indicator allows the Council some flexibility to borrow in advance of its immediate capital needs in 2024/25. Table 4 shows that in 2024/25 the council was in a temporary overborrowed position at year end due to timing differences of repayments of borrowings taking advantage of available funds. Any overborrowed funds were invested in line with the Treasury Strategy until required for repayment of borrowings in early 2025/26. Page 72
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4.1.4 The Chief Officer Resources can confirm the Council has complied with this indicator over the medium term (as can be seen by comparing the gross debt figure at 31 March 2025 with the anticipated CFR at 31 March 2028 as detailed in Table 4 below), and in the short term, the adjusted gross borrowing position also under the CFR as at 31 March 2024. Table 4 2024/25 Actual 2024/25 Revised Indicator* Gross borrowing position per Table1 £789.860m £823.000m PPP Liability £82.853m £84.560m IFRS 16 Liability £1.926m £2.462m Adjusted gross borrowing position £874.639m £910.022m Capital Financing Requirement £871.164m £873.844m 2024/25 Actual CFR at 31 March 2025 2024/25 Actual £871.377m Estimated Movement in CFR* 2025/26 £73.524m 2026/27 £76.158m 2027/28 £48.094m Anticipated CFR at 31 March 2028 £1,084.398m Gross Debt at 31 March 2025 £874.639m * Estimated movements from treasury Management Strategy 2025/26 – March 2025 4.1.5 The Authorised Limit The Authorised Limit is the “Affordable Borrowing Limit” required by Section 35 of the Local Government in Scotland Act 2003. The Council does not have the power to borrow above this level. The information in Table 5 demonstrates that during 2024/25 the Council has maintained gross borrowing within its Authorised Limit. 4.1.6 The Operational Boundary The operational boundary is an indicator against which the Council monitors its external debt position. It is based on the Council’s estimate of the most likely (i.e. prudent but not worst case) scenario for external debt. Periods where the actual position is either below or over the Operational Boundary are acceptable subject to the Authorised Limit not being breached. The information in Table 5 demonstrates that during 2024/25 the Council has maintained gross borrowing within its Operational Boundary. Page 73
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4.1.7 Actual financing costs as a proportion of net revenue stream This indicator shows the actual impact of capital expenditure in 2024/25 compared to the projected impact of the General Services Capital Plan Refresh and the HRA Capital Plan Update as approved by Members on 5 March 2025. The cost of capital is described as loan charges within the revenue budgets. Table 5 * 2024/25 Revised Indicator - Authorised Limit £982.239m Revised Indicator - Operational Boundary £900.386m Maximum gross borrowing position during 2024/25 £801.256m Minimum gross borrowing position during 2024/25 £696.659m Estimated Actual Financing Costs as a proportion of net revenue stream General Fund 12.21% 7.25% Housing (HRA) 42.68% 50.37% * From Mid Year Report 18 December 2024 5. Summary of the Economic Factors affecting the Strategy during 2024/25 5.1 The Economy and Interest Rates 2024/25 – to March 2025 (Source: Link Treasury Management Annual Report Template 2024/25 Scotland April 2025) UK Economy UK inflation has proved somewhat stubborn throughout 2024/25. Having started the financial year at 2.3% y/y (April), the CPI measure of inflation briefly dipped to 1.7% y/y in September before picking up pace again in the latter months. The latest data shows CPI rising by 2.8% y/y (February), but there is a strong likelihood that figure will increase to at least 3.5% by the Autumn of 2025. Against that backdrop, and the continued lack of progress in ending the Russian invasion of Ukraine, as well as the potentially negative implications for global growth as a consequence of the implementation of US tariff policies by US President Trump in April 2025, Bank Rate reductions have been limited. Bank Rate currently stands at 4.5%, despite the Office for Budget Responsibility reducing its 2025 GDP forecast for the UK economy to only 1% (previously 2% in October). Moreover, borrowing has becoming increasingly expensive in 2024/25. Gilt yields rose significantly in the wake of the Chancellor’s Autumn Statement, and the loosening of fiscal policy, and have remained elevated ever since, as dampened growth expectations and the minimal budget contingency (<£10bn) have stoked market fears that increased levels of borrowing will need to be funded during 2025. Page 74
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The table below provides a snapshot of the conundrum facing central banks: inflation pressures remain, labour markets are still relatively tight by historical comparisons, and central banks are also having to react to a fundamental re-ordering of economic and defence policies by the US administration. UK Eurozone US Bank Rate 4.50% 2.5% 4.25%-4.5% GDP 0.1%q/q Q4 (1.1%y/y) +0.1%q/q Q4 (0.7%y/y) 2.4% Q4 Annualised Inflation 2.8%y/y (Feb) 2.3%y/y (Feb) 2.8%y/y (Feb) Unemployment Rate 4.4% (Jan) 6.2% (Jan) 4.1% (Feb) The Bank of England sprung no surprises in their March meeting, leaving Bank Rate unchanged at 4.5% by a vote of 8-1, but suggesting further reductions would be gradual. The Bank of England was always going to continue its cut-hold-cut-hold pattern by leaving interest rates at 4.50% but, in the opposite of what happened at the February meeting, the vote was more hawkish than expected. This suggested that as inflation rises later in the year, the Bank cuts rates even slower, but the initial impact of President Trump’s tariff policies in April 2025 on the financial markets underpin our view that the Bank will eventually reduce rates to 3.50%. Having said that, the Bank still thinks inflation will rise from 2.8% in February to 3¾% in Q3. And while in February it said “inflation is expected to fall back thereafter to around the 2% target”, this time it just said it would “fall back thereafter”. That may be a sign that the Bank is getting a bit more worried about the “persistence in domestic wages and prices, including from second-round effects”. Accordingly, although we expect a series of rate cuts over the next year or so, that does not contradict the Bank taking “a gradual and careful” approach to cutting rates, but a tepid economy will probably reduce inflation further ahead and prompt the Bank to cut at regular intervals. From a fiscal perspective, the increase in businesses’ national insurance and national minimum wage costs from April 2025 is likely to prove a headwind, although in the near-term the Government’s efforts to provide 300,000 new homes in each year of the current Parliament is likely to ensure building industry employees are well remunerated, as will the clamp-down on immigration and the generally high levels of sickness amongst the British workforce. Currently wages continue to increase at a rate close to 6% y/y. The MPC would prefer a more sustainable level of c3.5%. As for equity markets, the FTSE 100 has recently fallen back to 7,700 having hit an all-time intra-day high 8,908 as recently as 3rd March. The £ has also endured a topsy-turvy time, hitting a peak of $1.34 before dropping to $1.22 in January and then reaching $1.27 in early April 2025. USA Economy Page 75
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Despite the markets willing the FOMC to repeat the rate cut medicine of 2024 (100 basis points in total), the Fed Chair, Jay Powell, has suggested that the Fed. Funds Rate will remain anchored at 4.25%-4.5% until inflation is under control, and/or the economy looks like it may head into recession as a consequence of President Trump’s tariff policies. Inflation is close to 3% and annualised growth for Q4 2024 was 2.4%. With unemployment just above 4%, and tax cuts in the pipeline, the FOMC is unlikely to be in a hurry to cut rates, at least for now. EZ Economy The Eurozone economy has struggled throughout 2024 and is flat lining at present, although there is the promise of substantial expenditure on German defence/infrastructure over the coming years, which would see a fiscal loosening. France has struggled against a difficult political backdrop, but with a large budget deficit it is difficult to see any turn-around in economic hopes in the near-term. With GDP currently below 1% in the Euro-zone, the ECB is likely to continue to cut rates, although the headline inflation rate is still above 2% (2.3% February 2025). Currently at 2.5%, a further reduction in the Deposit Rate to at least 2% is highly likely. 5.2 Borrowing Rates in 2024/25 The graph for Public Works Loan Board (PWLB) interest rates below shows that interest rates have continued to increase and most PWLB rates have been on a general upward trend since May 2024. Source: Link Treasury Management Annual Report Template 2024/25 (Scotland) Page 76
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6. 2024/25 Treasury Activity 6.1 Borrowing – The Council raised new short term loans of £259.300m during 2024/25 for the replacement of naturally maturing debt and to finance the Council’s capital programme. 6.2 Rescheduling – No debt rescheduling has taken place in 2024/25. 6.3 Repayment – The Council repaid naturally maturing debt of £243.000m. 6.4 Summary of Debt Transactions – The overall position of the debt activity resulted in the average annual interest rate paid throughout the year, year on year decreasing from 4.48% (2023/24) to 4.35% (2024/25) 6.5 Investment Policy – The Scottish Government issued The Local Government Investments (Scotland) Regulations 2010 on 1 April 2010. 6.6 The investment activity during the year conformed to the approved strategy, and the Council had no liquidity difficulties. 6.7 The Council’s short term cash investments decreased from £29.087m at the beginning of the year to £13.881m at the end of the year with an average balance of £10.693m and received an average return of 4.77% over the year. In addition to the short term cash investments the Council also had 2 long term investments in Clydebank Property Company and Hub West Scotland with a total value of £0.470m as at 31 March 2025 as identified in table 2 above (investments over 364 days). 7. Performance Indicators set for 2024/25 7.1 The treasury strategy defined a set of performance indicators covering the following areas: 7.1.1 Security - In the context of benchmarking, assessing security is a very subjective area. Security is currently evidenced by the application of minimum quality criteria to financial institutions that the Council may choose to invest in, primarily through the use of credit ratings supplied by the three main credit rating agencies (Fitch, Moody’s and Standard & Poors). The Council has benchmarked security risk by assessing the historical likelihood of default for investments placed with any institution with a long term credit rating of A- (this is the minimum long term credit rating used in the Council’s investment strategy). The Council’s maximum security risk is that 0.05% of investments placed with financial institutions could theoretically default based on global historical data. During the year all investments within the Council’s portfolio were repaid on their due dates with no defaults of the principal sums recorded. 7.1.2 Liquidity – As required by the CIPFA Treasury Management Code of Practice the Council has stated that it will “ensure that it has adequate, though not excessive, cash resources, borrowing arrangements, overdrafts or standby facilities to enable it at all times to have the level of funds available to it which Page 77
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are necessary for the achievement of its business/service objectives”. In respect to liquidity as defined above the liquidity arrangements during the year were maintained in line with the facilities and benchmarks previously set by the Council as follows: o Bank overdraft - £1.000m o Liquid short term deposits of at least £5.000m available overnight. 7.1.3 Return – For the financial year the investment return averaged 4.770% which is an increase of 0.201% from the previous year. Table 6 illustrates that the Council’s average return identified of 4.77% was less than the average return from the Council’s bankers investment account (4.85%) and less than the Money Market Funds rate (noted in table 6) which are the local measures of return investment benchmarks approved in March 2012. The Council’s bankers (and therefore the bank with which the investment account is held) are currently Virgin money (formerly Clydesdale Bank plc) which falls within the Category 3 Investment Category approved in the investment strategy approved in February 2017. Due to the credit rating of this bank this category specified a maximum limit £5.000m which may be held on an overnight basis only thus limiting the ability to attract interest on this account. Table 6 Benchmark Benchmar k Return Average Return Compound 12 month SONIA* 5.09% 4.77% * SONIA is Sterling Overnight Index Average and has replaced LIBOR & LIBID 8. Disclosure regarding the repayment of loans fund advances for 2024/25 8.1 The policy on the prudent repayment of loans fund advances was detailed in the Mid-Year Monitoring Report 2024/25 - Treasury Management and Prudential Indicators reported to Council on 18 December 2024. 8.2 Table 7 shows the movement in the level of loan fund advances between 1 April 2024 and 31 March 2025 (excluding PPP and other leases). Table 7 General Fund Housing Opening Balance at 1 April 2024 £395.220m £348.200 m New Advances in 2024/25 £8.897m £56.492m Repayments in 2024/25 (£4.551m) (£9.502m) Closing Balance at 31 March 2025 £399.566m £395.190 m Page 78
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8.3 Table 8 details the anticipated repayment profile of the balance on the loans fund advances (excluding debt interest and expenses) for both General Services and Housing held at 31 March 2025 (note, this is not external debt). Table 8 Future Repayment Profile at 31 March 2025 General Fund Housing Total £m £m £m Under 12 months 5.375 11.187 16.562 2 years to 5 years 17.054 35.208 52.262 6 years to 10 years 30.198 57.559 87.757 11 years to 15 years 32.857 55.042 87.898 16 years to 20 years 26.440 58.385 84.825 21 years to 25 years 19.157 50.459 69.616 26 years to 30 years 14.241 27.448 41.689 31 years to 35 years 12.875 8.284 21.159 36 years to 40 years 14.391 7.387 21.778 41 years to 45 years 15.330 6.777 22.107 46 years to 50 years 18.045 8.518 26.563 51 years to 55 years 23.970 11.274 35.244 56 years to 60 years 28.382 7.843 36.225 61 year + 141.252 49.819 191.071 Total 399.566 395.190 794.756 9. Risk and Performance 9.1 The Council has complied with all relevant statutory and regulatory requirements which require the Council to identify and, where possible, quantify the levels of risk associated with its treasury management activities. In particular its adoption and implementation of both the Prudential Code and the Code of Practice for Treasury Management means both that its capital expenditure is prudent, affordable and sustainable, and its treasury practices demonstrate a low risk approach. Ongoing consideration of future affordability and sustainability are reported and considered by Members each year when setting the Council’s General Fund and HRA capital and revenue budgets. 9.2 The Council is aware of the risks of passive management of the treasury portfolio and, with the support of the Council’s treasury advisers, has proactively managed its treasury position within the current economic climate taking advantage of lower interest rates where it is deemed appropriate. The Council has complied with its internal and external procedural requirements. There is little risk of volatility of costs in the current debt portfolio as the interest rates are predominantly fixed, with the majority of debt comprised of long-term loans. 9.3 Shorter-term rates and likely future movements in these rates predominantly determine the Council’s investment return. These returns can therefore be volatile and, whilst the risk of loss of principal is minimised through the annual investment strategy, accurately forecasting future returns can be difficult. Page 79
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