Internal and External Audit Report Follow Up 2025-26
Argyll and Bute Council · 4 September 2025
Back to Audit and Scrutiny Committee — 4 September 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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ARGYLL AND BUTE COUNCIL AUDIT AND SCRUTINY COMMITTEE FINANCIAL SERVICES 4 September 2025 INTERNAL AND EXTERNAL AUDIT REPORT FOLLOW UP 2025-26 1.0 INTRODUCTION 1.1 Internal and external audit reports include an action plan with a management response establishing the agreed action, timescale and responsible officer. Internal Audit record these in a database and, on a quarterly basis, follow them up to ensure they are being progressed. 1.2 This report updates the committee on all open actions as at 30 June 2025 including information on actions where the agreed implementation date has been rescheduled. 2.0 RECOMMENDATIONS 2.1 To endorse the contents of the report. 3.0 DETAIL 3.1 The two tables below provide a numerical summary of open audit actions with a split between actions due by and due after 30 June 2025. 3.2 Appendix 1 provides further detail on actions that have been delayed and rescheduled or superseded.
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Table 1 – Actions due by 30 June 2025 SMT/Service Complete Delayed/ Rescheduled Total Internal Audit DH – Education Performance & Improvement 0 2 2 DH – Legal & Regulatory Support 0 1 1 KF – Development & Economic Growth 0 3 3 KF – Roads & Infrastructure Services 0 10 10 KF – Financial Services 2 0 2 H&SCP (SW) – Adult Services (Mental Health Learning Disability, Addictions & Lifelong Conditions) 3 1 4 H&SCP (SW) – Children and Families and Criminal Justice 2 0 2 LiveArgyll 1 0 1 External Audit Nil TOTAL 8 17 25 Table 2 – Actions due after 30 June 2025 SMT/Service Complete Superseded On Course Total Internal Audit DH – Commercial Services 0 0 2 2 DH – Education Performance & Improvement 0 0 5 5 DH – Legal & Regulatory Support 0 0 7 7 KF – Development & Economic Growth 0 0 1 1 KF – Roads & Infrastructure Services 1 0 3 4 KF – Financial Services 1 1 1 3 H&SCP (IJB) – Adult Services (Older Adults & Community Hospitals 0 0 1 1 H&SCP (IJB) – Strategic Planning & Performance 0 0 8 8 H&SCP (SW) – Adult Services (Mental Health Learning Disability, Addictions & Lifelong Conditions) 0 0 1 1 H&SCP (SW) – Adult Services (Older Adults & Community Hospitals 1 0 1 2 H&SCP (SW) – Children and Families and Criminal Justice 1 0 7 8 H&SCP (SW) – Finance/Transformation 0 0 3 3 H&SCP (SW) – Strategic Planning & Performance 0 0 2 2 LiveArgyll 0 0 1 1 External Audit Nil TOTAL 4 1 43 48
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4.0 CONCLUSION 4.1 Satisfactory progress continues to be made implementing audit actions. 5.0 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 – None 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 4 September 2025 For further information contact: Paul MacAskill, 01546 604108 Paul.macaskill@argyll-bute.gov.uk APPENDICES Appendix 1 – Action Plan Points Delayed & Rescheduled or superseded
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Appendix 1 - Action Plan Points - Delayed and Rescheduled or Superseded Action Plan Points due by 30th June 2025 Service, Report, Plan no. & Finding Agreed Action Dates Management Comment Responsible Officer Medium EDUCATION PERFORMANCE & IMPROVEMENT SCHOOL FUNDS & MANAGEMENT OF FUNDS 4. Practical Training With the exception of the LEON module, no formal training programme or support is in place for those involved in the management and administration of school funds. This is in part reflected in the inconsistent practices across schools visited. Practical training should be developed and provided for head teachers, committee members and clerical staff involved in the management and administration of school funds. Training on school fund procedures will be carried out. Who will carry out the training will be clarified as part of the management circular review. 30/06/2025 31 Dec 2025 The training will be developed over the summer for implementation with the new School Fund Committees from August. Delayed and Rescheduled School Services Support Manager High EDUCATION PERFORMANCE & IMPROVEMENT SCHOOL FUNDS & MANAGEMENT OF FUNDS 5. Grants The Circular states that schools must ensure that the Education Authority has knowledge of any grant application for monies made to third parties that involve the school fund. There is no established process for this. · The Circular should be updated to state that AFAs must be consulted prior to grant applications being submitted to ensure that the applicant is the correct beneficiary and that income and expenditure is accurately recorded. Circular will be updated to reflect an instruction that AFAs must be consulted prior to grant applications being submitted. A central grant register for grants over £1,500, covering all schools, will be created and maintained. Any grants over £1,500 will have to be reported to Finance and this will be reflected in the updated circular. 30/04/2025 31 Dec 2025 Whilst a template is in place for a grant register, not all grants are captured at this stage. Work is ongoing to ensure all grants are registered centrally. Delayed and Rescheduled School Services Support Manager
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Medium DEVELOPMENT & ECONOMIC GROWTH PLANNING 1. Staff Training Once the incorporation of the IDOX project is completed a training schedule will be introduced covering both the new system and other relevant areas such as the National planning for framework 4. 31/03/2024 31/12/2024 31/03/2025 30/06/2025 30 Sep 2025 Planning staff have access to a range of training opportunities throughout the year. We are operating a flexible and dynamic range of training options which can be accessed Process and Productivity Improvement Officer Service, Report, Plan no. & Finding Agreed Action Dates Management Comment Responsible Officer · A central grant register for grants over £1,500, covering all schools, should be created and maintained. Low LEGAL & REGULATORY SUPPORT Freedom of Information 3. Publication Scheme The Council’s Publication scheme not updated since May 2021, and the Council’s website was updated in 2023. A review of the Council’s Publication scheme should be undertaken, including checking that any links to information are still working. Review and Update Publication Scheme, publish on Website and provide link to Audit. 31/03/2025 30/06/2025 30 Sep 2025 Report still to be considered by ELT. Subject to approval, an anticipated report will be published by end of July. Delayed and Rescheduled Compliance & Regulatory Officer Low DEVELOPMENT & ECONOMIC GROWTH Private Sector Housing Grants & Adaptions 3. Procedure Notes and Shared Documents While the vast majority of requirements are included there would be benefit to updating these to reflect current working practices, which have evolved due to hybrid working arrangements and the digitalisation of records. Consideration should be given to creating a checklist to ensure consistent application of processes. Procedures and documents will be reviewed and updated. Checklists to be drawn up and introduced when updating the procedures. 31/12/2022 30/06/2023 31/03/2024 30/09/2024 30/12/2024 30/06/2025 31 Oct 2025 Following approval of the Revised Scheme of Assistance, the documents and procedures currently in the process of being updated. This is happening slowly due to staff sickness. Delayed and Rescheduled Team Lead - Housing Operations
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Planning do not currently have in place a training schedule for 2023/24 for planning officers. by staff, as and when is best suited to their individual learning needs, the needs of the department, and individual specific training needs that arise as a requirement of new work items. Annual training events are held that all planners are requested to attend. For example, an internal Planning conference was held focussing on a number of topics such as Biodiversity, the role of GIS in Planning, Strategic Development Frameworks, and investment in the national grid and its impacts on Argyll and Bute. Staff can attend external conferences if they wish to do so such as the HPs’ conference held in Kilmarnock this year. We are also working with several key stakeholders such as HES to develop training modules for Planning staff and we are looking at how we can work with the University of the West of Scotland to enable staff to access degree level Planning courses. In addition, staff can access a range of digital course specialising in Planning topics and there is also a range of internal courses available on back-office systems, corporate priorities, and other topics such as cyber security and the use of AI and digital tools such as
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copilot etc. Creating a training schedule is further complicated by a lack of available external courses however when staff do attend these they are also asked to cascade learning to other colleagues through notes taken. Lastly the council is also undertaking a transformational process and planners attend an increasing number of workshops and seminars that often involve a place-based approach working with other council services and external partners. This approach is likely to increase in the future. Delayed and Rescheduled Medium DEVELOPMENT & ECONOMIC GROWTH SHORT TERM LETS 2. Oracle – Compulsory Fields A number of documents of supporting evidence must be submitted with the licence application prior to the issuing of the licence. Oracle currently has a number of compulsory fields which require to be completed, this does not include the uploading of evidence. Applications can be submitted without all the supporting evidence attached resulting in time-consuming delays contacting the applicants. 1. Upgrade to be applied to Oracle system to ensure that applications made without all the necessary certification and documentation, cannot be submitted through the on-line system. 2. A similar approach will be applied to paper-based applications 01/05/2025 30 Aug 2025 1. IT system changes ongoing. Revised application forms/processes for both New Applications and Renewals is currently in the testing stage. 2. The paper form cannot be developed until the layout of the electronic one is finalised as they must be the same. Currently we have contacted all applicants who are due for renewal advising of the situation and further contact will be made once the forms are agreed. Delayed and Rescheduled Regulatory Services and Building Standards Manager
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High ROADS & INFRASTRUCTURE SERVICES BRIDGE ASSET MANAGEMENT PLAN 1. Performance Reporting There are no regular performance reporting on the following: · Structured reporting framework to distribute performance reports to key stakeholders on a regular basis. · Performance reporting into Departmental Management Team (DMT) meetings and other relevant forums to improve monitoring, accountability, and decision-making. · Specific regular performance reports for late bridge inspections, accompanied by formal action plans and follow-up measures to address delays and ensure compliance with inspection schedules. A report setting out key performance information in relation to the annual programme of bridge inspections will be produced for review by the RIS senior management team on a quarterly basis. The report will be received by the RIS senior management team by the end of the month following quarter end at the latest. The first of these reports will be produced for review during the month of April 2025 for Q4 of 2024. A Quarterly Report on appropriate KPIs will be generated by WDM and can be aligned around ABC Reporting timescales. Currently a QR is being implemented to report on every bridge’s most recent inspection. The Quarterly Report will be accompanied by the most recent Late Inspections report. The overall suite of performance measures used by RIS is currently under review. Until such time as this review work is completed and a refreshed approach to service performance reporting is implemented the Head of Service will provide a by exception report to the Departmental Management Team on a quarterly basis setting out key metrics and risks associated with the annual bridge inspection programme. This reporting will commence for the Q4 period of 2024 and will follow 30/06/2025 30 Sep 2025 Bridge Inspection status report defined, and report can be submitted in draft form for comments from Management / Executive. Final report to be put in place and reporting channel confirmed. Delayed and Rescheduled Infrastructure Design Manager
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reporting into the RIS senior management team and will therefore take place as early as possible in the month 2 months after quarter end i.e. commencing in June 2025. Low ROADS & INFRASTRUCTURE SERVICES BRIDGE ASSET MANAGEMENT PLAN 4. Audit Trail re Late Inspections The audit found that there is currently no audit trail within the WebSMS sysytem (WDM) to document late inspections, including reasons for delay, actions taken and stakeholder communication. Late Inspections are currently being recorded manually via a report infrastructure. Design can export on WDM as to which reasons are added by the Infrastructure Design team. An automatic report is currently being built within WDM that will send a late inspections report. Late inspections and actions needed to ensure they are undertaken will form part of the quarterly reporting to RIS senior management team. This will enable the Infrastructure Design Team to highlight risks, articulate mitigations and to seek support where required to implement these. 31/03/2025 30 Sep 2025 Previously identified errors have been rectified, and implementation of Late Inspections functionality has now been further developed. Backlog of information held externally from WDM system now able to be recorded. Currently underway. Actions requested from auditable to be fulfilled at this stage, despite ongoing refinement of WDM and data entry. Full implementation on track for September 2025. Delayed and Rescheduled Infrastructure Design Manager Low ROADS & INFRASTRUCTURE SERVICES Burial Records 6. Historical Register Information Finding; The Burial and Cremation (Scotland) Act 2016 (The Act) requires information to be retained electronically although this is not currently in force it will be at a future date. The BACAS system has been partially updated with historical information recorded in burial The service will source temporary assistance to update records during Summer 2024. 30/06/2024 31/12/2024 30/06/2025 30 Sep 2025 Still looking to recruit however resource has been identified within the teams to get this project underway with an attempt to recruit and backfill the administrative roles. Delayed and Rescheduled Operations Manager, Roads and Infrastructure Services
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registers, it has not been possible to update with all information due to the volume of work involved. Recommendation; Source temporary additional resource to update historical burial records on BACAS. Low ROADS & INFRASTRUCTURE SERVICES PIERS & HARBOURS 2. CalMac Charges Calmac, the main ferry operator uses the Council’s Piers and Harbours on a daily basis, with administratively intensive process in place for charging. Have an agreement (financial) in place by the end of the year. 31/12/2023 31/03/2024 30/06/2024 30/11/2024 30/06/2025 31 Dec 2025 Being progressed with senior management within CalMac. High level options appraisal to be carried out investigating payment mechanisms that can be incorporated into the new Harbour Access Agreement (HAA) The draft Harbour Access Agreement will be ready for review by legal representatives by December 2025 Delayed and Rescheduled Marine Operations Manager High ROADS & INFRASTRUCTURE SERVICES PIERS & HARBOURS 3. SLAs A number of companies, including large fish farming businesses, make use of our facilities on a regular basis, however, there are no SLAs in place. We were advised that work is currently being undertaken to put Harbour Access Agreements in place. Any agreement must be supported by both parties and Argyll & Bute Council legal department. May tie in with No 2 above. Provide a report to Head of Service and Director with options. 1. Identify potential partners 2. Negotiation period 3. Legal support in drafting agreement 31/12/2023 31/03/2024 30/06/2024 30/11/2024 30/06/2025 31 Dec 2025 Work is ongoing to identify bridging partners First batch of agreements is being developed on a priority basis in terms of value and risk, and will be ready by end of December 2025 Delayed and Rescheduled Marine Operations Manager Low ROADS & INFRASTRUCTURE SERVICES PIERS & HARBOURS Actionable evidence and enforcement will continue to be an issue where there are no Argyll & Bute Council personnel on site. 31/12/2023 31/03/2024 30/06/2024 App being developed by supplier to allow Harbour Masters to monitor and enforce at priority sites via CCTV. Report Marine Operations Manager
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4. Remote Piers and Harbours Harbourmasters based at the main piers and harbours are able to record the use of the facilities where they are predominantly based, however, a number of piers, slipways and harbours are in remote locations and are difficult to manage in terms of use. In addition, there are no robust procedures in place to identify commercial tour vessels using our facilities potentially resulting in a loss of income for the Council. Investigate issues and possible solutions with Harbour Masters and provide options for consideration in report to DMT. 30/09/2024 30/11/2024 30/06/2025 31 Dec 2025 will be ready for DMT in December Delayed and Rescheduled Low ROADS & INFRASTRUCTURE SERVICES PIERS & HARBOURS 5. Fishing Fleet Fees and charges for the fishing fleet within the Council area are managed by the fishing fleet whereby they advise us of the value of their landings once the catch has been sold. There is no back up information provided to substantiate the value, and it is generally paid through cash receipting or by cheque. Investigate issues and possible solutions with Harbour Masters and provide options for consideration in report to DMT. 31/12/2023 31/03/2024 30/06/2024 30/09/2024 30/11/2024 30/06/2025 31 Dec 2025 Work is ongoing to develop solution for verification of value of catches and electronic payment of fees. Report will be ready for DMT in December Delayed and Rescheduled Marine Operations Manager Low ROADS & INFRASTRUCTURE SERVICES PIERS & HARBOURS 6. Management of Debt The outstanding debt owed to the Council at the end of June in respect of Piers and Harbours amounted to £143k. There are a number of long-term outstanding debts, and it was noted that in some instances there is continued use of our facilities by vessels who have outstanding debts dating back to 2019. Investigate with legal department recovery or write-off options. Provide a report to Head of Service and Director with options. 31/12/2023 31/03/2024 30/06/2024 30/09/2024 30/11/2024 30/06/2025 31 Dec 2025 Debt reviewed by Marine Operations Management team and Finance on a regular basis and pursued where possible. Aged debt and ability to pursue has been identified. Where necessary, write off to be identified by Marine Operations Manager and processed in terms of the Corporate Debt Recovery Policy 2024 Marine Operations Manager
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Report will be ready for DMT in December Delayed and Rescheduled Low ROADS & INFRASTRUCTURE SERVICES PIERS & HARBOURS 8. Published Pier and Harbour Dues and Fees Harbour fees and dues are published on the Council website on an annual basis following being agreed and set at the Council’s budget setting meeting, however, these are not in a format that can be easily downloaded. Produce a ‘Schedule of Harbour Charges’ for Harbour Board approval. 30/11/2024 30/06/2025 31 Dec 2025 Work is ongoing to develop schedule that is clear and easily understood. Draft for approval will be complete by end of December 2025 and ready for approval for first Harbour Board of 2026 Delayed and Rescheduled Marine Operations Manager High ROADS & INFRASTRUCTURE SERVICES WARDEN SERVICES 3. Second Bin Service Verification Wardens are expected to verify the veracity of applications from customers for a second domestic bin service. This requires the warden to confirm that information provided by the customer is accurate and meets the defined criteria. The information provided to substantiate an application can be very personal and sometimes of a sensitive medical nature. Wardens have been asked to provide this service but have received no formal training in how to ensure a customer’s dignity is maintained or to ensure they are aware of the requirements of General Data Protection Regulation (GDPR) in relation to personal data Review the process for; Review the second bins that are in place and the process for rationalising. This review to also give consideration to composition and identify opportunity to increase recycling and reduce general waste. 31/03 2022 30/09 2022 31/12/2022 31/03/2023 30/09/2023 31/12/2023 31/03/2024 31/03/2025 30/09/2025 30/06/2025 31 Mar 2026 The second bin review will be part of an overall waste delivery project including wider aspects of the service such as assisted pullouts, service delivery on private roads and commercial refuse. Project plan currently being agreed and will be communicated to the RIS review board. Timescales for the project and implementation plan will require to be agreed. This is part of a bigger review on commercial waste contracts and self-catering establishments. Delayed and Rescheduled Operations Manager, Roads & Infrastructure Services
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for this specific process. Due to the sensitivity of this process, and the potential risks associated with data protection it is recommended that the current verification process is reconsidered to determine if it is appropriate to maintain it in its current form. If it is decided, it should be retained then there should be engagement with the Council’s Governance and Risk Manager to ensure it is being carried out in full compliance with GDPR. Medium ADULT SERVICES (MENTAL HEALTH LEARNING DISABILITY, ADDICTIONS & LIFELONG CONDITIONS/CSWO) CLIENT FUNDS PROGRESS REVIEW 2. Meeting service users financial needs Detail Restricted. Detail Restricted. 30/12/2024 31/03/2025 30/06/2025 30 Sep 2025 Detail restricted. Delayed and Rescheduled SW Admin Manager Action Plan Points due after 30th June 2025 Service, Report, Plan no. & Finding Agreed Action Dates Management Comment Responsible Officer Medium FINANCIAL SERVICES CAPITAL MONITORING 1. Capital Programme Planning & Management Guide The Council’s Capital Guide has not been revised since 2018 and requires a review to ensure it reflects current working practices and provides appropriate support to officers involved in the capital monitoring process. The Council is Capital Planning and Management Guide to be updated once the Capital Strategy has been approved to ensure the two are aligned and provide clarity. 31/03/2022 30/09/2022 31/12/2022 31/03/2023 30/09/2023 31/12/2023 31/03/2024 31/03/2025 30/09/2025 This action has been superseded by a wider ‘Review of Capital Arrangements’ approved by members, as part of the 2025/26 budget process. The review requires to be progressed by ELT during 2025/26. A discussion paper was considered by ELT in May, with next steps agreed and a further report to be brought back to ELT in September. Head of Commercial Services/Finance Manager
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Service, Report, Plan no. & Finding Agreed Action Dates Management Comment Responsible Officer currently developing a new Capital Strategy which is to be presented to the Policy and Resources Committee in August 2021 and we recognise that a review of the Guide should be conducted after the Strategy has been finalised to ensure the two documents complement each other and. The Guide could also benefit from being linked to, or referencing, other relevant Council processes, in particular the Project Management section on the Hub. Superseded