Item 06 - Internal Audit Plan 2026-27 – Progress to 30 June 2026
West Dunbartonshire Council · 2 September 2026
Back to Audit Committee — 2 September 2026 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Resources Audit Committee: 2 September 2026 Subject: Internal Audit Plan 2026/27 – Progress to 30 June 2026 1. Purpose 1.1 The purpose of this report is to advise Members of progress to 30 June 2026 against the Internal Audit Plan for 2026/27. 1.2 The report also advises Members of: • further detail on the Internal Audit Plan for 2026/27 • progress towards completion of the Internal Audit Plan for 2026/27 • 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 Internal Audit Planning document for 2026/27, setting out the approach to planning and the allocation of resources was approved by the Audit Committee on 10 June 2026. This report provides further detail on the plan at Appendix 1 and on progress towards the plan at Appendix 2. 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 Chief Internal Auditor to provide the annual internal audit opinion regarding the adequacy and effectiveness of internal control within West Dunbartonshire Council (the Council). 4.2 In the period to 30 June 2026 the focus has been on: year-end deliverables, recruitment into the vacant Auditor post, completion of ongoing audit work and implementation of the new shared Chief Auditor arrangements. As previously advised, previously there has been a Shared Service Manager covering West Dunbartonshire and Inverclyde Councils. This arrangement has been extended to include East Dunbartonshire Council from 1 April 2026, with a Chief Internal Auditor covering the three Councils. ITEM 6
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4.3 There have been no audit reviews finalised since the June 2026 Audit Committee. This has been primarily due to vacancies within the team, the other competing priorities referred to at 4.2 above and due to timing issues around completion of the work that is in progress. 4.4 Two rounds of recruitment for the Auditor post have, to date, been unsuccessful. A third round has commenced and interviews are scheduled for August. A verbal update will be provided to Members on progress. 4.5 Notwithstanding the above resource challenges, work has continued on Budgetary Control and on Investigatory work. In addition, work on Waste Stock Controls is underway. Integration Joint Board 4.6 A draft plan for audit work for the Integration Joint Board 2026-27 has been prepared which will be presented to and regularly reported on to the Integration Joint Board Audit & Performance Committee. Internal Audit Action Plans 4.7 Internal audit action plans are monitored by Internal Audit on a monthly basis. The status report at 30 June 2026 is provided at Appendix 3. Ongoing Corporate Fraud Team Work 4.8 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. 4.9 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 4.10 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. 4.11 In relation to the 2024 exercise, a significant number of matches were received in relation to a range of datasets including Housing Benefit, Council Tax Reduction, Payroll, Business Rates, Creditors and Blue Badges. This work is substantially complete and planning has commenced in preparation for the next round of National Fraud Initiative matches. Benchmarking 4.12 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.
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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 2025 to 31 March 2026 was £416,424, a significant increase on 2024/25 which was £123,651. Results can materially vary from year to year due to the timing of National Fraud Initiative data matches being made available, new data sets being available for the first time and other factors such as fraud referrals. The results in 2025-26 were significantly positively impacted by the release of HMRC datasets for the first time which led to the team establishing material fraud or error. 6.2 There are no procurement implications arising from this report. 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: 2 September 2026 Person to Contact: Gillian McConnachie, Chief Internal Auditor E-mail: gillian.mcconnachie@eastdunbarton.gov.uk Appendices: Internal Audit Plan Summary (Appendix 1)
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2026/27 Annual Audit Plan – Progress to 30 June 2026 (Appendix 2) Status of Internal Audit Action Plans at 30 June 2026 (Appendix 3) Wards Affected: All wards