Covering Report and Internal Audit Reports
Argyll and Bute Council · 16 December 2025
Back to Audit and Scrutiny Committee — 16 December 2025 and its agenda
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ARGYLL AND BUTE COUNCIL AUDIT AND SCRUTINY COMMITTEE FINANCIAL SERVICES 16 DECEMBER 2025 INTERNAL AUDIT REPORTS TO AUDIT AND SCRUTINY COMMITTEE 2025/2026 1. EXECUTIVE SUMMARY 1.1 There are eight audits being reported to the Audit and Scrutiny Committee. 1.2 The table below provides a summary of the conclusions for the audits performed. The full reports are included as appendices to this report. Audit Name Level of Assurance High Actions Medium Actions Low Actions VFM Actions School Residential Trips Limited 4 2 0 0 Building Cleaning High 0 0 1 0 Directed Self Support (Direct Payments) Reasonable 0 6 0 0 ICT Disaster Recovery Substantial 1 3 2 0 Oban Airport High 0 0 0 0 HSCP – Governance Arrangements High 0 0 2 0 HSCP – Partnership Working High 0 0 3 0 HSCP – Workforce Planning Reasonable 0 7 0 0 1.3 Internal Audit provides a level of assurance upon completion of audit work. A definition for each assurance level is documented in each audit report. 2. RECOMMENDATIONS 2.1 Audit and Scrutiny Committee to review and endorse this summary report and the detail within each individual report. 3. DETAIL 3.1 A high level summary of each completed audit report is noted below: School Residential Trips: this audit provided a limited level of assurance. This means that internal control, governance and the management of risk are displaying a general trend of unacceptable residual risk and placing system objectives at risk. Weakness must be addressed within a reasonable timescale with management allocating appropriate resources to the issues raised. The Council has procedures in place supported by a suite of Education Management Circulars (EMCs) for school residential trips, however, these require to be updated to incorporate the Scottish Government’s best practice
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“Going Out There” framework and address some identified gaps. Head Teachers or nominated deputies check and approve arrangements for school residential trips and ensure staff are supported when organising, additionally, clerical staff maintain records of trips and carry out limited checks, it was noted that limited monitoring arrangements are in place. Some schools have used external companies to help with the provision and planning of school trips without consulting the Procurement, Commercial and Contract Management Team (PCCMT). A training needs analysis and suitable training are required to be provided when undertaking school trips, however, this has not been fully undertaken. All school staff receive the required child protection information and training and individuals in regulated roles hold the required level of Disclosure Checks, however, testing identified that during home stay trips, PVG checks of hosts were not undertaken in line with Council procedures. Building Cleaning: this report provided a high level of assurance. This means that Internal control, governance and the management of risk are at a high standard. Only marginal elements of residual risk have been identified with these either being accepted or dealt with. A sound system of control designed to achieve the system objectives is in place and being applied consistently. The Council’s Cleaning Service has arrangements in place to carry out regular cleaning of establishments where this has been requested. Each establishment has specific cleaning staff allocated to undertake a pre-planned schedule of cleaning at an agreed frequency. Casual staff are retained in locations to provide cover for staff annual leave and absence. Changes to the Disclosure Checks requirements affect some cleaning staff who work in what are deemed regulated roles e.g. schools and nurseries. The induction pack should be reviewed to ensure that it contains up to date links to key documents/ policies, reflects current working practices and if applicable, any changes to processes required as a result of the change to the PVG scheme. There are detailed cleaning schedules and standards to support the cleaning of council premises, these are based on industry standards. Monitoring of cleaning in premises is undertaken by the cleaning services manager who conducts regular reviews and audits of cleaning practices against established benchmarks such as the British Institute of Cleaning Science (BICS) cleaning standards. Reporting of performance and issues for the cleaning services are discussed at the Commercial Services Teams meetings. No reports are currently provided to Council Committees. Directed Self Support (Direct Payments): this report provided a reasonable level of assurance. This means that Internal control, governance and the management of risk are are broadly reliable. However, whilst not displaying a general trend, there are areas of concern which have been identified where elements of residual risk or weakness may put some of the system objectives at risk. Policies and procedures are in place and are up to date. A policy and procedural document – Self Directed Support, Direct Payments Option 1, Policy and Procedural Guidance for Staff and Managers is available, the most recent version, V2.5 and is dated May 2025. A leaflet – Option 2 Individual Service Funds (ISF) provides an outline guide to the four options available to clients, providing further details for Option 2 which allows the client to direct Argyll and Bute Council to commission services from a support provider on their behalf. Information is available on the Council website. Policies, procedures, guidance documents and other relevant information is available for staff on the HSCP SharePoint site. Training is provided by the Self- Directed Support Officer. Processes and procedures are in place for the checking of financial records which require to be maintained by those in
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receipt of Direct Payments. A review timetable has been established and the Finance Administration Officer (AWI) has responsibility for undertaking these reviews. We identified that there was a need to make clearer within the agreement that funds may be required to be returned in certain circumstances. The Guidance document does not provide clear guidance on the circumstances which would give rise to the requirement to ‘top up’ the Direct Payment bank account or circumstances whereby accumulated funds require to be returned. Supported Person’s financial records highlighted that financial reviews had not been undertaken in accordance with the agreed timetable and there remains a significant backlog of cases to review. Care plans require to be reviewed timeously and to make sure that the supported persons needs are being met. Oban Airport: Our overall audit opinion for this audit is that we can take a high level of assurance. This means that internal control, governance and the management of risk are at a high standard. Only marginal elements of residual risk have been identified with these either being accepted or dealt with. A sound system of control designed to achieve the system objectives is in place and being applied consistently. The audit covered 6 of the 25 airport operating instructions within the aerodrome operating manual (AOI 16-20 & 24) and all were found to be satisfactory. The Manual is updated on an annual basis, and no audit issues were raised. Information and Communication Technology (ICT) Disaster Recovery (Exempt): This report is exempt from publication under paragraph 14 of part 1 to schedule 7A of the Local Government (Scotland) Act 1973 – “Any action taken or to be taken in connection with the prevention, investigation or prosecution of crime”. Health and Social Care Partnership (HSCP) Governance Arrangements (For Noting Only): this audit provided a high level of assurance. This means that Internal control, governance and the management of risk are at a high standard. Only marginal elements of residual risk have been identified with these either being accepted or dealt with. A sound system of control designed to achieve the system objectives is in place and being applied consistently, in particular the report highlights the following strengths and areas for improvement. The HSCP governance framework is well-documented, formally approved, and reviewed in accordance with statutory and good practice standards, additionally, it promotes transparency, stakeholder accessibility, and clear documentation of decisions. The governance structure and responsibilities within the HSCP are clearly laid out in governance documents and reflect good practice. Strategic plan performance and audit recommendations are actively monitored. Governance interactions between the Integrated Joint Board (IJB), Council, and National Health Service (NHS) Highland are well-established. While role clarity is strong, additional improvements could be made by enhancing accessibility and communication of these responsibilities and training expectations. A governance roles guide and organisational chart should be developed to clarify officer responsibilities and committee reporting lines. Information on IJB member training and induction should be published to enhance transparency for stakeholders and potential board members. Health and Social Care Partnership (HSCP) Partnership Working (For Noting Only): this audit provided a high level of assurance. This means that
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Internal control, governance and the management of risk are at a high standard. Only marginal elements of residual risk have been identified with these either being accepted or dealt with. A sound system of control designed to achieve the system objectives is in place and being applied consistently, in particular the report highlights the following strengths and areas for improvement. Argyll and Bute HSCP operate within a clear and effective governance framework established by the Integration Scheme, which defines statutory responsibilities, decision-making structures, and operational processes between Argyll and Bute Council and NHS Highland. Evidence from recent Integrated Joint Board (IJB) minutes, Chief Officer reports, and the Direction Log confirms active participation, structured collaboration, and compliance with legislative expectations across both partners. IJB meeting records and the Direction Log demonstrate transparent, documented, and jointly actioned decision-making. The approval process for the Joint Strategic Plan further confirms collaborative planning and shared accountability. Argyll and Bute HSCP and Council demonstrate strong alignment through shared strategic goals embedded in key planning documents such as the Joint Strategic Plan, Commissioning Strategy, and Digital Modernisation Strategy. Joint planning is facilitated by statutory structures like the Strategic Planning Group and Locality Planning Groups, with clear partner and stakeholder involvement. Performance against shared objectives is actively monitored using structured reporting and risk management frameworks. Argyll and Bute HSCP have robust governance arrangements for dispute resolution, with clearly defined escalation procedures set out in the Integration Scheme and Standing Orders. HSCP should continue to develop existing workforce performance monitoring arrangements so that key performance indicators (KPIs) and red, amber and green (RAG) assessments remain clearly linked to strategic objectives and risks that IJB developed in partnership with both employing bodies. To strengthen assurance, the HSCP should consider embedding awareness of escalation and dispute resolution routes from the Integration Scheme into induction for senior managers and key officers to ensure consistent understanding across the partnership and with wider partners. HSCP should capture and review recurring themes or patterns from informal partnership challenges to support organisational learning and provide assurance to the IJB that risks are being managed proactively. HSCP Workforce Planning (For Noting Only): this report provided a reasonable level of assurance. This means that Internal control, governance and the management of risk are are broadly reliable. However, whilst not displaying a general trend, there are areas of concern which have been identified where elements of residual risk or weakness may put some of the system objectives at risk. Workforce Plan 2022–2025 aligns clearly with Scottish Government guidance DL (2022)09, the Joint Strategic Plan, Digital Modernisation Strategy, and National Workforce Strategy. Workforce planning responsibilities are well embedded within the Integration Scheme and committee Terms of Reference. Routine reporting of workforce matters occurs through quarterly workforce reports and IJB papers. Workforce risks such as recruitment/retention and remote/rural challenges are clearly reflected in the Strategic Risk Register, reviewed biannually by Audit and Risk Committee and Integrated Joint Board. Multi-agency involvement is strong (ABC, NHSH and third sector) in committees and planning groups. There is currently no standalone annual Workforce Plan progress/refresh report is produced, meaning the IJB lacks a clear annual overview aligned to SG guidance DL (2024)33. A concise “workforce at a glance” KPI summary is not currently provided, limiting quick visibility of key workforce indicators for decision-
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makers. There is no single consolidated Workforce Plan action tracker, resulting in inconsistent ownership, missing baselines/targets, and difficulty monitoring progress. The Scottish Government Appendix 1 ‘Indicative Content Checklist’ (DL 2022/09) is not currently completed or retained, and should be fully completed and documented as part of future Workforce Plan refreshes. There is currently no costed funding map jointly across NHS Highland and Argyll & Bute Council Finance/HR, setting out estimated costs, named funding sources/budget codes, phasing, and expected benefits/savings for each priority action. There is no consolidated agency and supplementary staffing dashboard integrating service-level spend, FTE, trends, key drivers and ownership, meaning workforce reporting does not provide the level of oversight required by the IJB. There is no consolidated Finance–HR dashboard bringing together agency and supplementary staffing data (service- level spend, FTE, trends, key drivers and named owners), limiting the clarity of reporting and oversight available to the IJB. 4. CONCLUSION 4.1 Management has accepted each of the reports submitted and have agreed responses and timescales in the respective action plans. 5. IMPLICATIONS 5.1 Policy – None 5.2 Financial – None 5.3 Legal – None 5.4 HR – None 5.5 Customer Service – None 5.6 Risk – The implementation of recommendations contained in audit reports may help mitigate the risk to the Council 5.7 Climate Change – None 5.8 Fairer Scotland Duty – None 5.9 Equalities - protected characteristics – None 5.10 Consumer Duty – None 5.11 Island Communities – None 5.12 Children’s Rights and Wellbeing – None Paul Macaskill Chief Internal Auditor 16 December 2025 For further information contact: Paul Macaskill, Chief Internal Auditor Tel: 01546 604108 Email: paul.macaskill@argyll-bute.gov.uk APPENDICES 1. School Residential Trips 2. Building Cleaning 3. Directed Self Support (Direct Payments) 4. Oban Airport
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5. HSCP – Governance Arrangements (For Noting Only) 6. HSCP – Partnership Working (For Noting Only) 7. HSCP – Workforce Planning (For Noting Only)