Agenda reports pack
Argyll and Bute Council · 5 September 2024
Back to Audit and Scrutiny Committee — 5 September 2024 and its agenda
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Argyll and Bute Council Comhairle Earra-Ghàidheal Agus Bhòid Executive Director: Douglas Hendry Kilmory, Lochgilphead, PA31 8RT Tel: 01546 602127 Fax: 01546 604435 DX 599700 LOCHGILPHEAD 29 August 2024 NOTICE OF MEETING A meeting of the AUDIT AND SCRUTINY COMMITTEE will be held BY MICROSOFT TEAMS on THURSDAY, 5 SEPTEMBER 2024 at 10:30 AM, which you are requested to attend. Douglas Hendry Executive Director BUSINESS 1. APOLOGIES 2. DECLARATIONS OF INTEREST 3. MINUTE OF PREVIOUS MEETING OF THE AUDIT AND SCRUTINY COMMITTEE, HELD ON 13 JUNE 2024 (Pages 3 - 8) AUDIT ITEMS 4. INTERNAL AUDIT AND COUNTER FRAUD SUMMARY OF ACTIVITIES (Pages 9 - 18) Report by Chief Internal Auditor 5. INTERNAL AND EXTERNAL AUDIT REPORT FOLLOW UP 2024-25 (Pages 19 - 32) Report by Chief Internal Auditor 6. INTERNAL AUDIT REPORTS TO AUDIT AND SCRUTINY COMMITTEE 2024/2025 (Pages 33 - 76) Report by Chief Internal Auditor • School Funds and Management of School Funds • Education Maintenance Allowance • Adult Support and Protection (HSCP) SCRUTINY ITEMS 7. INTERNAL AUDIT - ANNUAL SELF-ASSESSMENT (Pages 77 - 80) Report by Chief Internal Auditor Public Document Pack
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8. CORPORATE COMPLAINTS - ANNUAL REPORT 2023-24 (Pages 81 - 120) Report by Executive Director with responsibility for Legal and Regulatory Support 9. INFORMATION REQUESTS - ANNUAL REPORT 2023-24 (Pages 121 - 130) Report by Executive Director with responsibility for Legal and Regulatory Support 10. AUDIT AND SCRUTINY COMMITTEE ANNUAL REPORT 2023/24 (Pages 131 - 140) Report by Chair 11. STRATEGIC RISK ASSURANCE MAPPING (Pages 141 - 158) Report by Chief Internal Auditor 12. STRATEGIC RISK REGISTER (Pages 159 - 162) Report by Chief Executive 13. EXTERNAL AUDIT PROGRESS REPORT (Pages 163 - 172) Report by Forvis Mazars 14. SCRUTINY - ESTABLISHMENT OF A PANEL FOR THE REVIEW 2024-25 (Pages 173 - 176) Report by Chief Internal Auditor 15. WORKPLAN (Pages 177 - 180) For noting and updating Audit and Scrutiny Committee Janice Wason Hall (Chair) Councillor Daniel Hampsey Councillor Graham Hardie Councillor Fiona Howard Councillor Reeni Kennedy-Boyle Councillor Gary Mulvaney (Vice-Chair) Councillor Andrew Vennard Shona Barton, Governance Manager Contact: Lynsey Innis, Senior Committee Assistant Tel: 01546 604338
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MINUTES of MEETING of AUDIT AND SCRUTINY COMMITTEE held BY MICROSOFT TEAMS on THURSDAY, 13 JUNE 2024 Present: Janice Wason Hall (Chair) Councillor Daniel Hampsey Councillor Graham Hardie Councillor Fiona Howard Councillor Reeni Kennedy-Boyle Councillor Gary Mulvaney Councillor Andrew Vennard Attending: Anne Blue, Head of Financial Services Jane Fowler, Head of Customer Support Services Paul MacAskill, Chief Internal Auditor Shona Barton, Governance Manager Morag Cupples, Finance Manager Jennifer Coyle, Senior HR Business Partner Mhairi Weldon, Senior Audit Assistant Mark Outterside, Director, Mazars LLP Gregory Odour, Engagement Manager, Mazars LLP 1. APOLOGIES The Chair welcomed everyone to the meeting. There were no apologies for absence intimated. 2. DECLARATIONS OF INTEREST There were no declarations of interest intimated. 3. MINUTE OF PREVIOUS MEETING OF THE AUDIT AND SCRUTINY COMMITTEE, HELD ON 14 MARCH 2024 The Minute of the previous meeting of the Audit and Scrutiny Committee, held on 14 March 2024 was approved as a correct record. 4. INTERNAL AUDIT AND COUNTER FRAUD SUMMARY OF ACTIVITIES The Committee gave consideration to a report providing a summary of Internal Audit activity and progress during quarter one of 2024/25 against the following areas: Audits Completed • Freedom of Information (FOI) • Client Funds Progress Review • Financial Ledger • Scottish Social Services Council (SSSC) Registration • Learning and Disability Care Packages • Cloud Based Computer Services Audits in Planning/in progress • Education Maintenance Allowance Page 3 Agenda Item 3
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• SPT Annual Claim The report also provided information on the work carried out by the Counter Fraud Team (CFT); the continuous monitoring programme and the progress of work carried out as a result of information received from the National Fraud Initiative (NFI). Decision The Audit and Scrutiny Committee reviewed and endorsed the Summary of Activities report. (Reference: Report by Chief Internal Auditor, dated 13 June 2024, submitted) 5. INTERNAL AND EXTERNAL AUDIT REPORT FOLLOW UP 2023-24 Consideration was given to a report which provided an update on all open actions as at 31 March 2024 including information on actions where the agreed implementation date had been rescheduled. Decision The Audit and Scrutiny Committee endorsed the contents of the report. (Reference: Report by Chief Internal Auditor, dated 13 June 2024, submitted) 6. INTERNAL AUDIT - ANNUAL REPORT 2023/24 The Committee gave consideration to a report which outlined the work undertaken by Internal Audit in respect of the Annual Audit Plan 2023/24 and advised of the contents of the Chief Internal Auditor’s (CIA) independent annual opinion on the effectiveness of the Council’s risk management, internal control and governance processes. The Chair, on behalf of the Committee, took the opportunity to recognise the volume of work undertaken by the Internal Audit team and thanked them for their continued hard work and support. Decision The Audit and Scrutiny Committee endorsed the content of the report and the associated annual opinion of the Chief Internal Auditor. (Reference: Report by Chief Internal Auditor, dated 13 June 2024, submitted) Councillor Hampsey joined the meeting during discussions of agenda item 6 (Internal Audit – Annual Report 2023/24) . 7. STATEMENT OF GOVERNANCE AND INTERNAL CONTROL Consideration was given to a report which advised that the statement of governance and internal control for 2022/23 had been reviewed and updated which allowed the Council to include a statement of governance and internal control in the Annual Accounts for 2023/24. The draft Statement of Governance and Internal Control 2023/24 was presented as Appendix 1 to the report. Page 4
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Decision The Audit and Scrutiny Committee considered and approved the draft Statement of Governance and Internal Control for 2023/24. (Reference: Report by Executive Director with responsibility for Legal and Regulatory Support, dated 13 June 2024, submitted) 8. EXTERNAL AUDIT - ANNUAL AUDIT PLAN, YEAR ENDING 31 MARCH 2024 The Committee gave consideration to a report which presented the Audit Strategy Memorandum for Argyll and Bute Council for the year ending 31 March 2024. The report provided a summary of the audit approach taken by external auditors, Mazars LLP and highlighted significant audit risks and areas of key judgements. Discussion was had in relation to the delays experienced in the last year, particularly in relation to meeting statutory deadlines. The concerns of Members were noted with Mr Outterside and Mr Odour confirming arrangements are in place to ensure that timescales are more aligned to the statutory deadlines going forward. Decision The Audit and Scrutiny Committee considered and noted the contents of the report. (Reference: Report by Mazars LLP, submitted) 9. LOCAL GOVERNMENT BENCHMARKING FRAMEWORK (LGBF): 2022/23 Consideration was given to a report which provided a high level summary of Argyll and Bute Council’s performance as reported in the Local Government Benchmarking Framework (LGBF) data. Information on the work being carried out as part of the wider Performance Excellence Project was also provided. Decision The Audit and Scrutiny Committee:- 1. considered the contents of the report and noted the trend of net improvement across the Council; and 2. noted the ongoing work being carried out as part of the wider Performance Excellence Project. (Reference: Report by Executive Director with responsibility for Customer Support Services, dated 17 May 2024, submitted) 10. UNAUDITED FINANCIAL ACCOUNTS The Committee gave consideration to a report which provided an overview of the unaudited annual accounts for 2023-24. The report also provided a summary of the significant movements from 2022-23 and the revenue outturn for 2023-24. It was noted Page 5
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that the Council would be asked to approve the Unaudited Annual Accounts for 2023-24 for issue. Decision The Audit and Scrutiny Committee considered the Unaudited Annual Accounts for the year ended 31 March 2024. (Reference: Report by Section 95 Officer, dated 13 June 2024, submitted) 11. WORKPLAN In order to facilitate forward planning of reports to the Audit and Scrutiny Committee, Members considered the outline Audit and Scrutiny workplan. Decision The Audit and Scrutiny Committee agreed to note the outline workplan. (Reference: Audit and Scrutiny Workplan, dated 13 June 2024, submitted) 12. INTERNAL AUDIT REPORTS TO AUDIT AND SCRUTINY COMMITTEE 2023/2024 (a) Covering Report and Internal Audit Reports Consideration was given to a report containing the action plans in relation to the following 5 audits:- • Financial Ledger • Learning and Physical Disability Care Packages • Scottish Social Services Council (SSSC) Registration • Freedom of Information Requests • Cloud Based Computer Systems Decision The Audit and Scrutiny Committee reviewed and endorsed the summary report and detail within each individual report. (Reference: Report by Chief Internal Auditor, dated 13 June 2024, submitted) The Committee resolved in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973, to exclude the press and public for the following item of business on the grounds that it was likely to involve the disclosure of exempt information as defined in Paragraph 6 of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973. (b) Internal Audit Report The Committee gave consideration to an internal audit report on the Client Funds Progress review. Decision Page 6
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The Audit and Scrutiny Committee reviewed and endorsed the report. (Reference: Report by Chief Internal Auditor, submitted) Page 7
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ARGYLL AND BUTE COUNCIL AUDIT & SCRUTINY COMMITTEE FINANCIAL SERVICES 5 SEPTEMBER 2024 INTERNAL AUDIT AND COUNTER FRAUD SUMMARY OF ACTIVITIES 1. SUMMARY 1.1 The objective of the report is to provide the Audit and Scrutiny Committee (the Committee) with a summary of Internal Audit activity and progress during quarter four of 2024/25. 1.2 Core activities together with a progress update statement are shown below: • 2024/25 Audit Plan progress: The plan is progressing as normal and subject to any unplanned absences or changes to resources the plan currently on track. • 2024/25 Individual Audits undertaken: Three audits have been completed during the period, 1 has been assessed as providing high assurance, 1 substantial assurance and 1 reasonable assurance. (Where HSCP and LiveArgyll Audits are included, these are provided for information only). • Scrutiny: Planned work for 2024/25 has been agreed in relation to the Council’s Complaints processes. A report outlining the approach proposed will be presented to the Committee for its consideration. It is anticipated that work in this area will commence in October 2024. • Counter Fraud: The Counter Fraud Team (CFT) is continuing to rebill council tax accounts and recovery of funds is underway. All other aspects and referrals are being considered, investigated and evaluated and the Counter Fraud Team remain vigilant to protect our public purse. The established CFT team member is on secondment to Housing for career and personal development for a two year period. The CFT have obtained a member of staff, again on secondment for the same time period. The team lead is currently progressing through year 2 of a Master in Accountancy course. • Continuous Monitoring Programme Testing: A number of auditable units are subject to continuous testing. There have been no new issues which we have identified this quarter. • Performance indicators: Current status is green / on track. 2. RECOMMENDATIONS 2.1 To review and endorse the Summary of Activities report. Page 9 Agenda Item 4
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3. DETAIL 3.1 Three audits have been completed since the previous Committee in June 2024. In addition, a further two verification audits were undertaken which are detailed in section 5 of the report Audits Completed • SPT Annual Claim – See section 3.8 for further details • Education Maintenance Allowance (EMA) • School Funds and Management of School Funds • Adult Support and Protection (HSCP) • Local Government Benchmarking Framework – See section 3.7 for further details Audits in Planning / in Progress reported to a future meeting of the Committee. • Community Education • Oban Airport • Bridges Asset Management Plan and Inspection Regime • IR 35 Compliance – Off Payroll work • NDR 3.2 In addition to those already in progress, indicative audits planned for Q2 2024/25 are: • Data Security & Information Security • IT Risk Register and Mitigation Processes 2024/25 Audit Plan 3.3 • Work is ongoing and is currently on track at this point in time. • A request has been made by senior management to cancel the planned review of ‘New Roads and Street Works Coordination’ as a recent exercise, as we understand, has been undertaken in this area. This will be noted as an amendment to the approved plan for 2024/25. Scrutiny 3.4 It was agreed by the Committee that the chosen subject area for the 2024/25 scrutiny review would be on the Council’s complaints process. A report will be prepared for September 2024 outlining the suggested approach and appointment of the Panel to undertake this work. In terms of developing the skills required within the wider Committee membership, the former Chairperson, Martin Caldwell has offered to assist in this process. This will be particularly useful for those new to the Committee but also increasing the resilience of the Committee to have suitably experienced Panel members. Officer input will be provided as required and consistent with previous scrutiny reviews undertaken. Page 10
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Counter Fraud 3.5 The CFT is progressing well with both team members fully CIPFA accredited fraud investigators. The current investigator has taken on a 2 year secondment to empty homes for further skills development. The investigators post was filled again on a secondment basis. The new member of staff will undertake the above CIPFA accreditation and is booked onto this course commencing in the latter half of 2024. Both team members will revert to substantive post circa sept 2025. Continued routine work is still progressing to track the full income recovered from the team’s work, however, based on the amount of additional billing, even accounting for a degree of non-recovery, the indications are that the team are still exceeding their target. In addition, the team are raising awareness of the Council’s zero tolerance to fraud and this will help act as a deterrent to fraud being perpetrated in the first place. Visits are planned for the local areas including Helensburgh, Rhu, Garelochead and Tarbert in line with referrals and proactive work. Both officers continue to be proactive and make visits when necessary. The team also aim to visit some of the more rural islands and areas to follow up on leads and are working closely with other council departments to assist in fraud awareness. The CFT continue to link in with Debt Recovery and assist where necessary to trace persons and open communication to long term debts for recovery. Several cases have resulted in rebilling. Second homes review is playing a larger role in the CFT team’s investigations with several claims already adjusted. This will remain a proactive area. The team now have an established referral system in place from council tax teams and the CFT have already liaised with this team going forward into 2024 for the review of the second and holiday home tax changes. The information already shared in the short space of time has resulted in rebilling and adjustments of accounts. Together we aim to keep accurate records and update accounts where error or missing information is held. This approach will continue as the method of collaborative and interdepartmental working has been helpful. The CFT continue to work closely with the empty homes team to support each other in our remits. Work and communication between each department is key in identifying and finding appropriate solutions to enable empty homes to return to residency or open market. The NFI exercise continues to be a routine work area for the CFT. The 2022/23 exercise is now closed and the results are located within this report. The next exercise will likely commence soon with data uploads likely to be submitted by the end of 2024. Since the inception of the CFT a total of £1,152,747 has been rebilled and £850,000 has been recovered. A recovery percentage of 74% has been achieved at the last review of the figures. Page 11
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Additional Updates from Quarter One 3.6 Staff continue to work from home or on a hybrid approach and this has proved to be successful, where on-site visits have been required due to the specific nature of the audit work, these have been undertaken. 3.7 A sample of data in respect of the Statutory Performance Indicators (SPI’s) that are required to be returned by councils as part of the Local Government Benchmarking Framework (LGBF) must be reviewed by Internal Audit for submission to the Improvement Service by 31 August each year. Internal audit carry out this work in collaboration with colleagues in performance management. Internal Audit was provided with the full set of data from which to select indicators for review on 21 June and as large variances were reported in ‘Teachers – Sickness Absence – including Covid’, ‘Sport and Leisure Management’, ‘Use of Libraries’ and ‘Museum Services’ these indicators were selected for review. ‘Other Local Government Employees – Sickness Absence – including Covid’ was also reviewed alongside Teachers data due to large numbers involved. Errors were identified during the course of the review and amended by the relevant officers. The pro-forma has been updated to reflect the correct figures for submission to the Improvement Service. The Improvement Service has now published its National Benchmarking Overview Report 2022-23 providing a high-level analysis of the performance of councils both during 2022-23 and over the longer-term. It recognises the efforts and achievements delivered across local government and sets out the challenges facing councils in the context of current funding and workforce pressures, growing demand and ongoing impacts from the Covid pandemic and cost-of-living crisis. The Accounts Commission reinforce the importance of the LGBF in delivering best value and effective and transparent reporting of performance. In a recent blog entitled “Benchmarking and good public performance reporting matter”, they state that the report indicates that “the pace of improvement in councils is slowing, with 2022-23 the first year that the rate of decline in indicators has overtaken the rate of improvement. This is against a backdrop of growing financial, demand and workforce pressures”. It is expected that councils continue to use the LGBF as part of their approach to self-evaluation and performance reporting using the underlying principles of transparency, comparison, trends, driving decision-making and effective scrutiny. 3.8 The Strathclyde Concessionary Travel Scheme (SCTS) is founded on the provision of the Transport Act 1985, which allows authorities to make concessionary travel schemes in certain circumstances. The SCTS is administered by Strathclyde Partnership for Transport (SPT) on behalf of the SCTS Joint Committee consisting of 12 local authorities to issue travel cards which entitles the holder to discounted travel by reason of age or disability, and provide reimbursement of fare reductions on rail, subway and ferry services. Argyll and Bute Council operates two ferry routes that qualify for concessionary fares within the SCTS. Internal Audit are required to provide a certificate of accuracy on an annual basis to confirm that the details pertaining to the number of concessionary passengers carried and the equivalent standard fares are consistent with the quarterly claims for reimbursement of the difference between the concessionary fare charged and the standard fare. The data and supporting information for quarter 4 2023/24 claim was provided to Internal Audit for review and found to provide an accurate representation of the number of passengers and value of fares charged, and the reimbursement value was found to have been calculated in Page 12
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accordance with the SCTS requirements. The certificate of accuracy was therefore issued on 27 May 2024. 3.9 The Council has entered a ten-year programme to deliver the Rural Growth Deal (RGD) for Argyll and Bute. The Council, as the accountable body for this programme is required to allocate and account for distribution of the funding to partners, third parties and other bodies in accordance with the approved governance arrangements. The Council’s Chief Internal Auditor has been appointed to coordinate audit activity throughout the programme, this will include liaison with partner auditors to obtain annual confirmation of regular and planned reviews of grant funded activities and a specific review of RGD within the Council’s Annual Audit Plan at least every two years. Discussions regarding the audit input required have taken place and the first review will be included within the 2025/26 Internal Audit Plan. We will closely monitor the additional work associated with this appointment going forward and determine whether additional resources may be required. 3.10 Our work as the contracted Internal Auditors for the HSCP has been progressing well and priority has been given in this area given the availability of staff and we hope to complete this work shortly. We will continue to monitor progress to the HSCP’s Audit and Risk Committee in relation to the implementation of recommendations made in previous reports. 3.11 Internal Audit staff continue to increase their skills and ultimately aim to complete appropriate professional qualifications at the end of their training programmes. Internal Audit have two staff members who are undertaking formal professional training; training is at differing stages but is progressing as expected at this time. The aim is to develop and retain professional staff on the completion of the qualifications and increase resilience within the service. Continuous Monitoring 3.12 Our continuous monitoring programme is generally focused on transactional type activity. Standard audit tests are applied which are relevant to each auditable unit. Control design tests look at whether the controls in place adequately address the potential risk event. There have been no new findings within the quarter that require to be reported. Table 2: Continuous Monitoring Findings Auditable Area Areas Tested Issues Identified Management comment / action No issues identified. 3.13 A follow up process is in place whereby management are advised of continuous monitoring findings and, where appropriate, requested to take remedial action. There are currently no outstanding follow-up points arising from previous testing. Due to the volume of continuous monitoring tests carried out the decision was made to report by exception only. Page 13
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National Reports 3.14 A follow up process for national reports is in place whereby management are advised of national reports published and asked to confirm what, if any, action is planned as a result of the report. Table 2 details the national reports issued during quarter four of 2023/24 and quarter one of 2024/25 due to be reported in quarter one 2024/25. Table 3: National Reports National Report Issued To Detail Management response/ Action taken Integration Joint Boards’ Finance and Performance 2024 Chief Officer/Chief Finance Officer Community health and social care faces unprecedented pressures and financial uncertainty. This report makes several recommendations that will be reviewed in detail to consider actions to be taken to address them. A summary paper will be prepared and considered by the IJB’s Senior Leadership Team, Audit and Risk Committee and Finance and policy Committee. National Fraud Initiative (NFI) 3.15 NFI data matching involves comparing computer records held by one body against other computer records held by the same or another body to identify potentially fraudulent claims and payments to be identified. Note though that the inclusion of personal data within a data matching exercise does not mean that any specific individual is under suspicion. Where a match is found it indicates that there may be an inconsistency which requires further investigation. No assumption can be made as to whether there is fraud, error or other explanation until an investigation is carried out. A reminder process is in place to ensure that matches are reviewed on a timely basis. 3.16 The current NFI exercise has been completed and results are being compiled by Audit Scotland. Any follow up matches will be addressed if necessary. This exercise was conducted throughout the year by officers and matches checked and closed accordingly. NFI provided additional data releases over the course of the exercise and matches are addressed when these become available. The NFI matches are detailed below. The CFT are reviewing the information received from the NFI matching service, work has commenced to follow these up locally. Existing users have been reviewed and new users added where requested, all users have been informed that matches are available for review and progress will be monitored monthly by the Counter Fraud team and reported quarterly to the Audit and Scrutiny Committee. New HMRC data has been uploaded and released back to us, and teams have been contacted to start matching this data. Table 4: National Fraud Initiative Progress at 29/07/2024 Page 14
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Operational Area Total Matches Recommended/Very High / High/Medium Risk Matches Matches Complete * WIP Match Description CT to Elect Register 2155 0 2155 0 CT records to Electoral Register/ other data sets to ensure discount awarded to only those living alone aged over 18, taking into account disregarded occupants. (CT to other Datasets will not be progressed further due to poor quality data) CT rising 18s 402 0 402 0 CT to HMRC Household Composition 935 0 38 0 Housing Benefits 21 11 20 0 HB records to records in other authorities / other datasets including student loans, payroll and pensions to identify undeclared income and capital. Payroll 143 2 140 0 Payroll records to other datasets including other payrolls and pensions to ensure employee is not receiving additional income. Blue Badges 238 204 238 0 Blue badge records to DWP data to identify deceased claimant with valid badge. Housing Waiting list 233 214 233 0 Housing waiting list records to other organisations HBCTR and tenant data to identify undisclosed changes in circs or false info. Council Tax Reduction 307 157 278 0 CTR records with records in other authorities / other datasets including; student loans, payroll and pensions to identify undeclared income and capital Creditors 589 0 33 0 Analyses Creditors data to identify possible duplicate vendors and payments, VAT errors or fraud and multiple vendors sharing a bank account. Procurement 38 0 38 0 Payroll records to Companies House and creditors’ data to identify employees who appear to have a personal interest in a company that the authority has traded with. Business Rates 214 0 187 0 Business rates records within and between authorities to identify those fraudulently claiming small business bonus scheme and grants * Work in Progress Page 15
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Overall Summary of Matches Matches Complete Work In Progress Cleared Frauds Errors Total Value £ Recovering Recovering Value £ 3876 0 3783 0 93 60,450 0 0 Internal Audit Development 3.17 The table below details progress against the action points in our Internal Audit development plan. Table 5: Internal Audit Development Key Actions: updated 31/03/24. Area For Improvement Agreed Action Progress Update Timescale Review Continuous Monitoring Programme Continuous monitoring tests will be reviewed following audit of Debt recovery to assess value of existing tests carried out. Consider adding test to review date taken to process invoices from date of receipt within the Council (not at Creditors) In progress October 2024 Update internal audit report template to include key audit milestones. A table will be added to the internal audit report template to provide readers with the planned and actual reporting dates, this will allow better monitoring of any delays in responses which has been requested by DMT. Completed and will be used for internal audit reports issued 2024-25 onwards Completed 3.18 Internal Audit scorecard data provided below are aligned to those for internal audit in the Financial Services service plan. All indicators are shown as currently being on track. Page 16
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Table 6: Internal Audit Team Scorecard Internal Audit Team Scorecard 2024– 25 – FQ1 24/25 (as at June 2024) BO115 We Are Efficient and Cost Effective Internal Audit Level of Satisfaction Actual 100% G Target 80% Review of Strategic Risk register Status On Track G Target On Track Percentage of audit plan completed Status 100% G Target 80% Percentage of audit recommendations accepted by management Actual 100% G Target 100% 4 CONCLUSION 4.1 The 2024/25 audit plan is progressing as anticipated at this stage in the year, together with the Counter Fraud Team continuing with visits and pro-active work throughout Argyll and Bute. Resource has been focused on the HSCP contract in this last quarter. 5 IMPLICATIONS 5.1 Policy – Internal Audit continues to adopt a risk based approach to activity 5.2 Financial –None 5.3 Legal –None 5.4 HR – None 5.5 Fairer Scotland Duty – None 5.5.1 Equalities – protected characteristics – None 5.5.2 Socio-Economic Duty – None 5.5.3 Islands – None 5.6 Climate Change – None 5.7 Risk – None 5.8 Customer Service – None 5.9 The Rights of the Child (UNCRC) – None For further information please contact Internal Audit (01546 604108) Paul Macaskill Chief Internal Auditor 5 September 2024 Page 17
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ARGYLL AND BUTE COUNCIL AUDIT AND SCRUTINY COMMITTEE FINANCIAL SERVICES 5 September 2024 INTERNAL AND EXTERNAL AUDIT REPORT FOLLOW UP 2024-25 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 monthly 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 2024 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 2024. 3.2 Appendix 1 provides further detail on actions that have been delayed and rescheduled, no response or evidence required. Page 19 Agenda Item 5
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Table 1 - Actions Due by 30 June 2024 SMT/Service Complete Delayed/ Reschedule d No Response Evidence Required Total Internal Audit DH – Commercial Services 1 1 0 0 2 DH – Legal & Regulatory Support 1 0 0 0 1 KF – Customer Support Services 2 2 0 0 4 KF – Development & Economic Growth 0 2 0 0 2 KF – Roads & Infrastructure Services 0 4 0 0 4 H&SCP (IJB) – Strategic Planning & Performance 0 1 0 0 1 H&SCP (SW) – Adult Services (Mental Health Learning Disability, Addictions & Lifelong Conditions) 1 2 0 0 3 H&SCP (SW) – Adult Services (Older Adults & Community Hospitals 0 1 0 0 1 H&SCP (SW) – Strategic Planning & Performance 0 4 0 0 4 H&SCP (SW) – Finance & Transformation 1 1 0 0 2 External Audit Nil TOTAL 6 18 0 0 24 Table 2 – Actions due after 30 June 2024 SMT/Service Complete Delayed/ Rescheduled No Response On Course Evidence Required Total Internal Audit DH – Commercial Services 5 0 0 1 0 6 DH – Legal & Regulatory Support 0 0 0 3 0 3 DH – Education Performance & Improvement 0 0 0 1 0 1 DH – Education Wellbeing, Inclusion and Achievement 0 0 0 1 0 1 KF – Customer Support Services 0 0 0 5 0 5 KF – Development & Economic Growth 0 2 0 3 0 5 KF – Roads & Infrastructure Services 1 0 0 14 0 15 KF – Financial Services 1 0 0 11 0 12 H&SCP (IJB) – Strategic Planning & Performance 1 0 0 3 0 4 H&SCP (IJB) – Finance & Transformation 0 0 0 2 0 2 H&SCP (IJB) – Adult Services (Older Adults & Community Hospitals 0 0 0 1 0 1 H&SCP (SW) – Adult Services (Older Adults & Community Hospitals 0 0 0 2 0 2 H&SCP (SW) – Adult Services (Mental Health Learning Disability, Addictions & Lifelong Conditions) 0 0 0 4 0 4 H&SCP (SW) – Children and Families and Criminal Justice 0 2 0 0 0 2 External Audit Nil TOTAL 8 4 0 51 0 63 Page 20
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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 Fairer Scotland Duty – None 5.5.1 Equalities – protected characteristics – None 5.5.2 Socio-economic Duty – None 5.5.3 Islands – None 5.6 Climate Change – None 5.7 Risk – None 5.8 Customer Service – None 5.9 The Rights of the Child (UNCRC) – None Paul MacAskill Chief Internal Auditor 5 September 2024 For further information contact: Paul MacAskill, 01546 604108 Paul.macaskill@argyll-bute.gov.uk APPENDICES Appendix 1 – Action Plan Points - Delayed & Rescheduled/No Response Page 21
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Appendix 1 - Action Plan Points Delayed & Rescheduled, No Response or Evidence Required Action Plan Points Due by 30 June 2024 Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer LOW COMMERCIAL SERVICES Externally Funded Projects - Rothesay Pavilion 3. Resources Consideration should be given to reviewing the extensive use of outside contractors and consultants as opposed to investing in in-house resources in regard to major capital projects especially in light of the projected overspend on the project. As part of the End Project Report, Lessons Learned, a review of the decision pertaining to project resourcing will be undertaken, and recommendations made to Head of Service with respect to the on- going efficient resourcing of projects. In developing future projects the Council will continue to give consideration to the most efficient resourcing model. 30/06/2023 30/06/2024 31 Dec 2024 The completion of Rothesay Pavilion is well documented through Council and Policy and Resources Committee - there is not yet an End Project Report because the project has not reached that stage and will continue to be unclear until clarity on partner funding arrangements are known (notably Rural Growth Deal Funding). This audit action will be addressed upon completion of project. Notwithstanding this, the wider intention of reviewing project resourcing and investing in in-house resources for major projects will be a consideration in future restructuring of Property Services Team. Revised date has been added if project does not proceed beyond Stage 2A. Delayed and Rescheduled Project Manager Medium CUSTOMER SUPPORT SERVICES Cloud Computing Services 4. User Revocation Finding: for one system reviewed, we found that systems administrators are not always promptly informed when users leave or no longer require The System B Team will promptly implement a monthly procedure to identify and deactivate accounts that have not been used within the month. 31/06/2024 30 Sep 2024 A report has been set up that lists all system users and the date they last logged in. The team are required to check this on a monthly basis and disable anyone who hasn’t logged in within the last month. The team are currently dealing with the Systems Support Officer Page 22
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Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer access. Termination of network access provides some comfort where leavers are concerned, however, this does not prevent users gaining continued access when transferring to another service area. Recommendation: periodic review of user status takes place by service systems administration to ensure access to sensitive data is restricted to those with current and legitimate service needs. backlog of accounts and staff shortage will delay this action. Delayed and Rescheduled Low CUSTOMER SUPPORT SERVICES Equality and Socio-Economic Impact Assessment 4. Training EqSEIA guidance was issued to employees via a newsflash and presentations were made to managers, including a presentation on EqSEIA and for budget setting savings. Webinars and presentations on EqSEIAs will be run at key times in the year. 30/06/2023 31/12/2023 31/03/2024 30/06/2024 30 Nov 2024 Toolkit development and training/ guidance materials on track for a revised date of November 2024. Delayed and Rescheduled Head of Customer Support Services Low DEVELOPMENT & ECONOMIC GROWTH Planning 3. Customer Charter Planning have in place a customer charter, however it was last reviewed in 2012 and requires to be updated as it does not reflect current practice. The framework document for 2022/23 stated “A review and update of the Development Management Customer Service Charter will also be undertaken during 2023/24.” 31/12/2023 31/03/2024 30/06/2024 30 Aug 2024 Impacted by operational commitments on staff time. Draft Charter has now been produced and subject to internal discussion with DM staff. It is still expected to progress this to completion during Summer 2024. Delayed and Rescheduled Development Manager Low DEVELOPMENT & ECONOMIC GROWTH Planning The Planning Performance Framework for 2022/23 states that “it is intended to reinitiate Service 31/12/2023 31/03/2024 30/06/2024 31 Oct 2024 Operational commitments on staff time have prevented this item being taken forward; the requirement for customer Development Manager Page 23
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Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer 4. Service level Customer User Forums Customer User Forums have previously been held regularly however currently customer forums are not being undertaken. level Customer User Forums during 2023/24”. engagement is also being influenced by the emerging National Planning Improvement Framework. It is now intended to hold a User Forum in late Summer/Autumn 2025 that meets NPIF requirements. Delayed and Rescheduled High ROADS & INFRASTRUCTURE SERVICES Burial Records 1. No Procedure for Records Management Finding: There is no consistent approach to updating and managing burial records across the Service. Finding: Private burials on home ground do not appear to be authorised or registered. Finding: Officers are printing documentation provided by funeral directors and applicants via email unnecessarily. Finding: Documentation was missing or could not be located at the time of the audit visit. Recommendation: A unified approach to records management should be adopted to establish consistency and provide resilience across the service. Additionally, a sample of burial records should be periodically checked for accuracy. This should be documented in a procedure note and issued to the relevant members of staff. A unified approach to records management will be implemented and documented in a procedure note. This will include a requirement for periodic sample checking to take place. 30/06/2023 31/12/2023 31/03/2024 30/06/2024 30 Sep 2024 Delay due to staff sickness, works with area offices are ongoing. Delayed and Rescheduled Operations Manager, Roads and Infrastructure Services Medium ROADS & INFRASTRUCTURE SERVICES Burial Records Policies and procedures will be reviewed and updated if required. 30/06/2023 31/12/2023 31/03/2024 Policies and procedures are being finalised at present and will be reviewed and re-issued Operations Manager, Roads and Infrastructure Services Page 24
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Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer 2. Review of Policies and Procedures Finding: Policies and procedures provided to the auditor contained no evidence of recent review or were not dated. Recommendation: Policies and procedures should be subject to periodic review and updated as required. Updated documents should be promptly circulated to staff and published on the Council’s website where appropriate. These will be re-issued to staff and published where appropriate. 30/06/2024 30 Sep 2024 to staff and published where appropriate. Procedures will be reviewed on an annual basis. Delayed due to officer off ill. Delayed and Rescheduled Low ROADS & INFRASTRUCTURE SERVICES Burial Records 5. Additional Functions within BACAS Finding: BACAS system has additional functionality that is not currently utilised to provide efficiencies. Recommendation: Liaise with system provider and other Local Authorities to establish which additional features would provide benefits to the service. The service will liaise with the system provider and other local authorities to identify useful additional system functionality and arrange training for implementation. 30/06/2023 31/12/2023 31/03/2024 30/06/2024 30 Sep 2024 A number of additional functions are now being captured in the BACAS, particularly within the crematorium operations. Delayed and Rescheduled Operations Manager, Roads and Infrastructure Services 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 registers, it has not been possible to update The service will source temporary assistance to update records during Summer 2024. 30/06/2023 31/12/2023 31/03/2024 30/06/2024 31 Dec 2024 The service will now look to recruit the temporary assistance to achieve this audit action. Delayed and Rescheduled Business Improvement Manager Page 25
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Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer with all information due to the volume of work involved. Recommendation: Source temporary additional resource to update historical burial records on BACAS. Low STRATEGIC PLANNING AND PERFORMANCE Risk Management 3. Training It is noted that there is an outstanding audit action since June 2021 covering: · Training for new members of IJB and Audit Committee · training for Risk leads · maintenance of training records Recommendation accepted. A training programme based upon the use of the Smartsheet system is being developed. 31/12/2023 30/06/2024 31 Dec 2024 Delayed pending review of wider partner approach to ensure consistent messaging and approach. Delayed until December 2024 for consistency. Delayed and Rescheduled Business Improvement Manager VFM FINANCE/TRANSFORMATION Customer Service Centre - H&SCP 6. Routing of calls to the appropriate channels Calls for HSPC represent the highest volume of both calls handled by CSC and transferred to the Service. The data provided detailing the teams the calls are transferred to indicates that it may be more appropriate for properly trained staff to handle and manage these calls. Contact Centre and HSCP should analyse whether it is more efficient to route certain call types on the HSCP Golden Number directly to HSCP for them to manage or that specific issues which require more specialist or detailed knowledge are dealt directly by HSCP. Provided by key officer The service will engage in discussions with CET’s Customer Engagement Manager to ensure that suitable arrangements are in place which maximises efficiency and effectiveness of the handling of customer contacts and enquiries via the HSCP Golden Number. 30/06/2023 30/09/2023 31/03/2024 30/06/2024 31 Dec 2024 All social care product reviews should be completed and ensure the single point of contact relationship with the CSC is operational and working well before completion. Progress is being made and monthly meetings will be held. Delayed and Rescheduled Business Improvement Manager Page 26
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Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer Medium STRATEGIC PLANNING AND PERFORMANCE Learning & Physical Disability Care Packages 1. Policies and Procedures Care Assessment policies and procedures are in place with a number of key documents provided for review. The documents provided refer Carefirst. With the implementation of the new client database recording system – Eclipse these require to reviewed and updated. Policies and procedures to be updated as part of the Eclipse Implementation Program. 30/06/2024 30/09/2024 Initial Response received, however, further discussion requires to be taken between IA and relevant officer prior to sign off. Delayed and Rescheduled Head of Strategic Planning, Performance and Technology Medium STRATEGIC PLANNING AND PERFORMANCE Learning & Physical Disability Care Packages 2. Induction Pack Staff have access to relevant policies and procedures, including access to relevant training. All staff should have a session with the Carefirst/eclipse support team to learn to navigate their way through the systems. An induction pack is in the process of being developed and this will include an introduction to policies and procedures. Incorporate Eclipse Training into the HSCPs induction program · Facilitate training sessions as part of the Eclipse Implementation Program 30/06/2024 30/09/2024 Initial Response received, however, further discussion requires to be taken between IA and relevant officer prior to sign off. Delayed and Rescheduled Head of Strategic Planning, Performance and Technology Medium ADULT SERVICES (MENTAL HEALTH LEARNING DISABILITY, ADDICTIONS & LIFELONG CONDITIONS/CSWO) Learning & Physical Disability Care Packages 3. Case Notes Case notes are maintained on Eclipse, the replacement client database for Carefirst. It was noted that case notes were not always maintained and up to date. Record keeping session (s) to be delivered by professional lead · Senior Managers to implement case note audit within their respective services – this should be linked to individual practitioner supervision 30/06/2024 Extension required to support manager with progress. Delayed and Rescheduled Senior Managers (Adult Services) Page 27
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Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer Medium STRATEGIC PLANNING AND PERFORMANCE Learning & Physical Disability Care Packages 4. Client Records A previous audit report highlighted the fact that client records were stored in multiple locations, including on the Council’s network drive. Evidence obtained during the audit suggests that client records are still being maintained in several locations. A successful pilot project was run in Mid Argyll transferring all records onto CIVICA. A proposal has been submitted to roll this out across all other areas in Argyll. Ensure that a standardised and compliant electronic recording system is implemented across HSCP services – this should be achieved via the Eclipse Implementation Program. 30/06/2024 The Scotland wide Social Work Model Office forms the base platform for the new Eclipse Social work interface. Replacing the need for separate care assessment policies. The client record is currently recorded and stored within the Eclipse Case Management System. A business case is being developed to look at the use of CIVICA to work in conjunction with Eclipse providing a single electronic document management system for both health & social care ECM users. Delayed & Rescheduled Head of Strategic Planning, Performance and Technology Medium ADULT SERVICES (MENTAL HEALTH LEARNING DISABILITY, ADDICTIONS & LIFELONG CONDITIONS/CSWO) Learning & Physical Disability Care Packages 5. Resource Allocation Group We were provided with a Terms of Reference for the “Adult Care Allocation Group (ACAG)”. We were advised that this group has been suspended as it was felt there was no added value to having a single ACAG as the majority of Learning Disability care packages were already over the threshold, and the wider ACAG members had no expertise or input in Learning Disability. In addition, how and where the decisions on resource allocations are taken and recorded has not yet been confirmed. Develop a Terms of Reference for the Acute and Complex Care directorate’s Care Allocation Group that meets fortnightly and is chaired by the Head of Service. 30/06/2024 Extension required to support manager with progress. Delayed and Rescheduled Head of Adult Services (Complex & Critical Care) Page 28
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Medium STRATEGIC PLANNING AND PERFORMANCE Learning & Physical Disability Care Packages 7. Unmet Need Unmet need for Older People Care at Home is collated by the resources team on a weekly basis, this is then submitted to Performance and Improvement Team, and is reported to Scottish Government. The data for Learning Disability is not currently recorded formally and not included in the above. Include the data re unmet need for those under 65 in the weekly reporting format already in place for Older People. 30/06/2024 30/09/2024 Initial Response received, however, further discussion requires to be taken between IA and relevant officer prior to sign off. Delayed and Rescheduled Head of Strategic Planning, Performance and Technology & Head of Adult Services (Health & Community Care) Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer Medium ADULT SERVICES (OLDER ADULTS & COMMUNITY HOSPITALS) Learning & Physical Disability Care Packages 6. Allocation of Resources The large majority of Learning Disability services are commissioned under the Supported Living contract and Older People services are commissioned under Care at Home contract. There are a few anomalies where some providers of Care at Home services are commissioned to provide support outside of their normal client group, however it was found that priority was given to older peoples services with Learning Disability clients remaining on a waiting list for personal care services. Review the Care at Home contract as a matter of priority to ensure that there is personal care provision across the authority for those under the age of 65 with complex needs, who do not require more intensive care such as that provided via Supported Living. 30/06/2024 31 Aug 2024 The contract was unable to be amended. There is a pilot to manage unmet personal care need for those under 65, pilot in Cowal and take key learning. Delayed and Rescheduled Head of Adult Services (Health & Community Care) & Chief Finance Officer Page 29
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Action Plan Points due after 30th June 2024 Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer Low DEVELOPMENT & ECONOMIC GROWTH Private Sector Housing Grants & Adaptions 2. The Scheme of Assistance The Councils Scheme of Assistance (SoA) which was introduced under the duties and powers set out in the Housing (Scotland) Act 2006, and sets out the strategy of support for owners to address properties which are Below Tolerable Standard (BTS) and in disrepair does not contain up to date information and should be updated after the outcome of the national policy review. As per Local Housing Strategy 2022-2027 Action Plan; The Scheme of Assistance, will be revised in 2023, after the outcome of national policy review on adaptions. 31/12/2022 30/06/2023 31/03/2024 30/09/2024 30 Dec 2024 Scheme of Assistance draft document out for comment to Housing staff. Target is to put the new Scheme of Assistance to the Council for approval by the end of 2024. Delayed and Rescheduled Team Lead - Housing Operations 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 Dec 2024 Meeting has been held with HSCP Care and Repair and Housing Officers (30th May 2024). Final updating of procedures and documents will be completed once new Scheme of Assistance has been approved by the Council. Delayed and Rescheduled Team Lead - Housing Operations Medium CHILDREN AND FAMILIES AND CRIMINAL JUSTICE Scottish Social Services Council (SSSC) Registration 4. Supervision Policy Develop a social work and social care supervision policy. 31/08/2024 30 Sep 2024 Review of supervision policy scheduled to take place from the beginning of August. Unable to identify time prior to this due to other competing priorities with other deadlines such as complaints, HR disciplinary, grievance investigation and Professional Lead - Social Work Page 30
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Service, Report, Plan no. & Finding Agreed Action Dates Comment Responsible Officer Finding: The Supervision Policy is dated November 2011 with no evidence of review or update, additionally, the requirements in terms of frequency and duration of supervision meetings are considered by mangers to be unrealistic in terms of current available resources. Recommendation: The Supervision Policy be reviewed and updated to ensure it incorporates up-to-date needs and requirements of service delivery. annual leave. Delayed and Rescheduled High CHILDREN AND FAMILIES AND CRIMINAL JUSTICE Scottish Social Services Council (SSSC) Registration 5. Compliance with Supervision Policy Finding: evidence of compliance with the supervision policy was limited and embedded templates were not being consistently used. Recommendation: Following review of the Supervision Policy, Managers should be reminded of the need to schedule supervision meetings with employees in advance and retain records in an appropriate and consistent format. Appropriate documentation will be provided following development of social work and social care supervision policy. 31/08/2024 31 Oct 2024 Review of supervision policy rescheduled for completion by the end of September. This action is delayed until October to allow a period of roll out and awareness raising for supervisors of the new policy and associated documentation. Delayed and Rescheduled Professional Lead - Social Work Page 31
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ARGYLL AND BUTE COUNCIL AUDIT AND SCRUTINY COMMITTEE FINANCIAL SERVICES 05 SEPTEMBER 2024 INTERNAL AUDIT REPORTS TO AUDIT AND SCRUTINY COMMITTEE 2024/2025 1. EXECUTIVE SUMMARY 1.1 There are three 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 Schools Funds and Management of School Funds Reasonable 2 5 0 0 Education Maintenance Allowance High 0 0 0 0 Adult Support and Protection (HSCP) Substantial 0 0 1 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 Funds and Management of School Funds: this audit provided a reasonable level of assurance. This means that internal control, governance and the management of risk 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. Eleven schools were visited in undertaking this review, we found that school fund management committees were not always in place, constitutions that were in place were not always up to date, committee members were not formally appointed, minutes of meetings were not recorded and evidence of decision-making was limited. The School Fund Management Circular 1.10 does not reflect digital working practices nor does it clarify roles and responsibilities sufficiently to support schools subject to interim management and staffing arrangements. The Circular is available to all staff, however it is not formally Page 33 Agenda Item 6
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communicated, resulting in a lack of awareness of its content, including instructions and templates to facilitate a consistent approach across all schools. Practical training is not currently provided to those involved in the management of school funds, and whilst a LEON module has been made available, there is limited knowledge of its existence. Robust processes are in place to manage funds and maintain income and expenditure records, however, these were not always followed and do not fully follow the instructions laid out in the Circular. Expenditure was authorised in all instances, however some expenditure was not authorised in compliance with set expenditure limits and documentary evidence was not always available. Appropriate arrangements were found to be in place for securing cash and cheques within each school. An annual independent audit of school fund accounts had not been arranged in the majority of schools visited. There is no process for advising when schools apply for grants and no corresponding register is maintained. Of all Argyll and Bute schools, 26 (32.5%) did not submit an annual Income and Expenditure Statement for 2022-23, limited checks are carried out to ensure these are received and there are no spot checks/reviews of individual schools’ processes. Education Maintenance Allowance (EMA): 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. Appropriate arrangements are in place to process applications, payments and submit accurate monthly claims and year-end schedules. Awards of EMA payments were made appropriately following submission of the required documentation in support of their formal application. All payments and costs incurred were aligned with details held on the Council’s general ledger and correctly reflected in the total value requested for reimbursement from Scottish Government in accordance with the terms and conditions of the offer of grant. Adult Support and Protection (HSCP) (For Noting): this audit provided a substantial level of assurance. This means that internal control, governance and the management of risk is sound. However, there are minor areas of weakness which put some system objectives at risk and specific elements of residual risk that are slightly above an acceptable level and need to be addressed within a reasonable timescale. Argyll and Bute Adult Support and Protection Partnership (the Partnership) were required to submit the Improvement Plan by November 2021, to the Link Inspector, demonstrating that it addresses the priority areas for improvement identified within the report. A comprehensive improvement plan was developed in 2021 with the aim of improving activity in health and social care to make services better for the people who use them. In addition, the Partnership were required to respond to a post inspection questionnaire which was also required to be submitted in November 2021. Both were submitted within the deadline. Recording and monitoring processes have been put in place to track progress against the Improvement Plan. Progress against the Improvement Plan is published and reported. 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 Page 34
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5.2 Financial – None 5.3 Legal – None 5.4 HR – None 5.5 Fairer Scotland Duty – None 5.5.1 Equalities – protected characteristics – None 5.5.2 Socio-economic Duty – None 5.5.3 Islands – None 5.6 Climate Change – None 5.7 Risk – The implementation of recommendations contained in audit reports may help mitigate the risk to the Council. 5.8 Customer Service – None 5.9 The Rights of the Child (UNCRC) – None Paul Macaskill Chief Internal Auditor 5 September 2024 For further information contact: Paul Macaskill, Chief Internal Auditor Tel: 01546 604108 Email: paul.macaskill@argyll-bute.gov.uk APPENDICES 1. School Funds and Management of School Funds – To follow 2. Education Maintenance Allowance 3. Adult Support and Protection - HSCP Page 35
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Argyll and Bute Council Internal Audit Report August 2024 FINAL High Medium Low VFM Number of Findings 2 5 0 0 School Funds and Management of Funds Audit Opinion: Reasonable Page 37
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2 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 Contents 1. Executive Summary ........................................................................................................................ 3 Introduction ............................................................................................................................................ 3 Background ............................................................................................................................................. 3 Scope ....................................................................................................................................................... 3 Key Dates ................................................................................................................................................ 4 Risks ........................................................................................................................................................ 4 Audit Opinion ......................................................................................................................................... 5 Recommendations ................................................................................................................................. 5 2. Objectives and Summary Assessment ........................................................................................... 5 3. Detailed Findings ............................................................................................................................ 8 Appendix 1 – Action Plan ..................................................................................................................... 15 Appendix 2 – Audit Opinion ................................................................................................................. 19 Contact Details Internal Auditors: Annemarie McLean & Leanne Rennie Telephone: 01700 501354 e-mail: annemarie.mclean@argyll-bute.go.uk www.argyll-bute.gov.uk Page 38
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3 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 1. Executive Summary Introduction 1. As part of the 2024/25 internal audit plan, approved by the Audit & Scrutiny Committee in March 2024, we have undertaken an audit of Argyll and Bute Council’s (the Council) system of internal control and governance in relation to School Funds and Management of Funds. 2. The audit was conducted in accordance with the Public Sector Internal Audit Standards (PSIAS) with our conclusions based on discussions with council officers and the information available at the time the fieldwork was performed. The findings outlined in this report are only those which have come to our attention during the course of our normal audit work and are not necessarily all the issues which may exist. Appendix 1 to this report includes agreed actions to strengthen internal control however it is the responsibility of management to determine the extent of the internal control system appropriate to the Council. 3. The contents of this report have been agreed with the appropriate council officers to confirm factual accuracy and appreciation is due for the cooperation and assistance received from all officers over the course of the audit. Background 4. All Argyll & Bute Schools operate individual school funds for the purpose of controlling monies raised in relation to local school activities. The normal sources of income are donations, fund raising activities, contributions from pupils towards school trips, voluntary activities etc. These funds are administered and spent for the benefit of the school and do not come within the budget of, or under the direct administration of the Council. 5. Section 79 of the Education (Scotland) Act 1980 imposes a duty on the education authority to administer gifts of property or funds for behalf of any school or other educational establishment taking into account the wishes or intentions of the donor. Since the education authority is responsible for managing funds donated, whether or not they are earmarked for the benefit of a particular group, it is entitled to instruct that a uniform accounting system or guidelines for such a system be introduced. As such, the Council have issued the ‘Education Management Circular 1.10’ which sets out instructions to schools in relation to how school funds will be managed. 6. Within Argyll and Bute there are: 65 Primary Schools, 7 of which have a Gaelic unit 4 2-18 schools 1 Joint Campus 1 Special School Scope 7. The scope of the audit was to review the process of compliance and conformance to School Circular 1.10 in relation to the management and control of School Funds. In addition, identification of any training gaps that may require to be addressed as outlined in the Terms of Reference agreed with the Head of Education: Performance and Improvement on 31 May 2024. Page 39
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4 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 8. It was further agreed with Head of Education: Lifelong Learning and Support that the audit would visit eleven schools, including a balance of primary and secondary schools, ensuring the sample provided coverage across the Council’s four administrative areas. 9. It was agreed that the purpose of the audit was to identify areas for process improvement to be applied consistently across the Council’s school estate rather than it highlighting specific issues at an individual school level. The drafting of this report, and the recommendations for improvement contained within it, reflects this agreed focus on the process improvement. The schools visited during our review are set out in exhibit 1. Due to unforeseen issues we were unable to visit Arrochar Primary before schools closed for the summer holidays so have carried out limited testing of their processes. Exhibit 1 – Schools Visited Administrative Area Secondary School Roll Primary School Roll Bute & Cowal Dunoon Grammar 745 Kirn Primary 298 Rothesay Academy 277 North Bute Primary 27 Helensburgh & Lomond Arrochar Primary 39 Colgrain Primary 256 Mid Argyll, Kintyre & Islay Campbeltown Grammar 381 Clachan Primary 11 Ardrishaig Primary 90 Oban, Lorn & The Isles Tobermory High 151 Park Primary 216 Key Dates 10. The Terms of Reference provided provisional timescales for the review to take place, the actual dates are noted below. Exhibit 2 – Key Dates Stage Actual Date Terms of Reference agreed 31 May 2024 Fieldwork Commencement 03 June 2024 Draft Report issued 08 August 2024 Management Comments received 09 August 2024 Final Report issued 19 August 2024 Audit and Scrutiny Committee 05 September 2024 Risks 11. The risks considered throughout the audit were: Audit Risk 1: School Funds are not managed in accordance with Education Management Circular 1.10 Audit Risk 2: Reporting and monitoring of individual schools’ funds is not carried out in accordance with Education Management Circular 1.10 Audit Risk 3: Staff, and Committee members, involved in the management of school funds have not received sufficient training. Page 40
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5 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 Audit Opinion 12. We provide an overall audit opinion for all the audits we conduct. This is based on our judgement on the level of assurance which we can take over the established internal controls, governance and management of risk as evidenced by our audit work. Full details of the five possible categories of audit opinion is provided in Appendix 2 to this report. 13. Our overall audit opinion for this audit is that we can take a reasonable level of assurance. This means that internal control, governance and the management of risk 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. Recommendations 14. We have highlighted two high priority and five medium priority recommendations where we believe there is scope to strengthen the control and governance environment. These are summarised below: Education Management Circular 1.10, (the Circular), and its appendices, should be reviewed, clarified and updated to contain a checklist section on key tasks which can be used to document and confirm compliance; Future updates and amendments to the Circular should be communicated to all relevant staff in schools; The LEON module – School funds administration, should be updated to reflect any changes to the Circular and should be considered as mandatory for new committee members, new head teachers and new clerical staff in order to promote consistency and compliance; Practical training should be provided for head teachers, committee members and clerical staff involved in the management and administration of school funds; The Circular should be updated to state that Admin and Finance Assistants (AFAs) must be consulted prior to grant applications being submitted; A central school funds grant register should be created and maintained for grants over £1,500; and A standard procedure note for the annual income and expenditure statement returns should be created, this should include details of the checks/reviews and follow ups that will be carried out. 15. Full details of the audit findings, recommendations and management responses can be found in Section 3 of this report and in the action plan at Appendix 1. 2. Objectives and Summary Assessment 16. Exhibit 3 sets out the control objectives identified during the planning phase of the audit and our assessment against each objective. Exhibit 3 – Summary Assessment of Control Objectives Page 41
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6 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 Control Objective Link to Risk Assessmen t Summary Conclusion 1 There is a general fund committee to provide governance of the school fund Audit Risk 1 Reasonable Seven of eleven schools visited had a committee and a constitution which complied with the requirements of the Circular but only two were up to date. Four schools had no committee. Only two of seven constitutions detail the names and roles of the committee members. No schools are holding elections to appoint committee members. Only one school could provide a minute of meetings, most meetings are not formal or recorded. The Circular should be reviewed and updated to reflect digital working practices and to clarify roles and responsibilities. There are a significant number of staff changes within schools, the requirements within the Circular should be reviewed to ensure that they are flexible enough to be practically deliverable, these should include instructions for interim Head Teacher posts and cover for clerical posts. 2 Training on Education Circular 1.10 has been provided to all relevant staff and Committee members Audit Risk 3 Limited Feedback from schools found that some clerical staff and committee members are unaware of the Circular and therefore are unaware of the standard processes and templates to be applied and used. Future updates and amendments should be communicated to all staff in schools. There is a general lack of awareness of the LEON module – School funds administration - this should be considered as mandatory for new committee members, new head teachers and new clerical staff. Feedback from school is that practical training should be provided for head teachers, committee members and clerical staff involved in the management and administration of school funds. An Admin and Finance Assistant created a practical “How to guide” and a streamlined spreadsheet to support a member of clerical staff new to the process. These should be reviewed to see if they could be used to form training materials. 3 Appropriate record keeping and banking Audit Risk 1 Substantial All eleven schools have appropriate banking arrangements in place and maintain cashbook spreadsheets although two primary schools have paper versions. Page 42
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7 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 arrangements are established Ten schools are performing monthly reconciliations between the cashbook and bank statements but seven are not subjecting their reconciliations to independent checking. All schools have robust processes, however, these do not fully follow the standard record keeping and cashbook arrangements laid out in the Circular. Most of the schools now operate online banking, the Circular and appendices should be updated to reflect and record these arrangements. 4 There are appropriate measures in place to manage ‘School Trip’ accounts. Audit Risk 1 Reasonable Two schools maintain separate trip accounts, seven use the general purpose bank account and in two small primary schools the parent council manage school trips fund. While schools have clear and robust records for trip accounts, it is not as per the instructions in the Circular. The Circular and templates should be updated to provide clarity on roles and responsibilities and to reflect current working practices. 5 All income and expenditure is adequately recorded and authorised and cash handling arrangements are appropriate Audit Risk 1 Audit Risk 2 Reasonable Only four schools have expenditure limits stated in their constitution Schools have robust records and could provide supporting documentation to evidence expenditure and income but this was not in the format detailed in the Circular. Meetings are not recorded, meaning there are instances where decisions to buy/purchase have been verbal, however payment is always authorised. Some expenditure has not been authorised in compliance with expenditure limits. Supporting documentation for income was not always retained in the school fund folder In two schools, although the Head Teacher was aware of the expenditure, they did not physically sign any paperwork. The Circular provides no instructions or processes where there is an interim appointment for the Head Teacher post. There is no process for advising when schools apply for grants and no school funds grants register is maintained. Schools have appropriate arrangements in place for securing cash and cheques. 6 School fund accounts are subject to appropriate Audit Risk 2 Limited Only five schools had made arrangements for school fund accounts to be independently audited. Page 43
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8 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 audit and record retention In two schools the Parent Council Treasurer independently audits the school fund accounts. Twenty six of the eighty schools asked, did not submit an annual Income and Expenditure Statement for 2022-23. Limited checks are carried out on annual returns received and there are no spot checks/reviews of individual schools’ processes. There is scope to set up a standard procedure which should include details of the checks or reviews and follow ups that will be carried out. 17. Further details of our conclusions against each control objective can be found in Section 3 of this report. 3. Detailed Findings There is a general fund committee to provide governance of the school fund 18. The Circular requires that each school has a general fund committee which includes the Head Teacher, depute plus elected representatives of the teaching staff and parents. It also requires the committees to have, as a minimum, a chairperson, secretary and administrator. Of the eleven schools visited and tested: seven have a committee with membership complying with the Circular; none have parent representation; four are not aware of the Circular and have no committee at all. Action Plan 1 19. The Circular requires schools to hold elections every two years to appoint committee members however none of the schools have held elections in the past two years. Committee members tend to have either volunteered or been asked to be involved. Membership of committees only tends to change if a member leaves with a replacement sought by asking for a volunteer at a staff meeting. Action Plan 1 20. The Circular requires each school fund committee to have a written constitution which defines the committee’s role, membership and powers of co-option, and provides a template constitution, in appendix 1, which schools can use but stresses that the template should be regarded as illustrative and that a school may choose to add other details to their particular constitution. Only two of the constitutions detailed the names or signatures of committee members, both these schools also detail the authorised bank signatories. This is good practice and the template constitution in appendix one should be updated to require the names and role of committee members, their signatures and authorised bank account signatories. Action Plan 1 21. Seven of the eleven schools visited and tested had a written constitution with these predominantly mirroring the template provided in the Circular, of these one detailed the same expenditure limits suggested in the template and six had their own limits. A review of the Page 44
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9 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 Circular found that this contains different information regarding the authorisation of expenditure than Appendix 1 constitution template. This should be reviewed and updated. Action Plan 1 22. Secondary schools are required to have a payments sub-committee. Two of the secondary schools constitutions state they have a sub-committee, in one it is the same members as the actual committee and the other in practice doesn’t have one. When asked, schools questioned the value of having a separate committee. During the review of the Circular, consideration should be given to whether having a payments sub-committee is practical and still required for secondary schools. Action Plan 1 23. The Circular requires schools to hold fund committee meetings ‘as often as necessary’, but at least one per term for secondary schools and once a year for primary schools. These meetings are supposed to be minuted. Only two of the schools visited holds fund meetings and one schools minute them. The Circular should be update to clarify whether meetings are required to support decisions to buy. Action Plan 1 24. There are a significant number of staff changes within schools, the requirements within the Circular should be reviewed to ensure that they are flexible enough to be practically deliverable, in particular these should include instructions for interim Head Teacher posts and cover for clerical posts. Discussions with staff and testing shows that often there is a reliance on one member of clerical staff. This been highlighted in some schools where issues have arisen where staff are either absent for a period of time or because the time taken to recruit for leavers has resulted in a lack of handover. Action Plan 1 and 4 Training on Education Circular 1.10 has been provided to all relevant staff and Committee members 25. As a result of an Internal Audit of School Funds in 2018-19, significant work was undertaken to review and have approved, Education Management Circular 1.10 (the Circular) and a supporting School Funds LEON training module. The impact of lockdown and the subsequent remote working arrangements caused a delay in the roll out of the updated Circular, until 2021-22. The revised Circular was uploaded onto the Council’s internal website and circulated to Head Teachers along with an announcement that the LEON training module was available and should be completed. 26. Feedback from schools found that some clerical staff and some committee members are unaware of the Circular and therefore are unaware of the standard processes and templates. Future updates and amendments should be communicated to all relevant staff in schools. Action Plan 2 27. There is a general lack of awareness of the LEON module – School funds administration; this should be mandatory for new committee members, new head teachers and new clerical staff. The LEON module will require to be updated to reflect amendments to the Circular. Action Plan 3 Page 45
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10 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 28. Discussions with school staff and AFAs, highlighted that the impact of lockdown and subsequent restrictions led to schools having less expenditure via school funds as trips and events etc. were cancelled/postponed and the focus was on implementing new ways of working. This is likely a contributing factor to lack of impact of the roll out of the updated Circular and the launch of the LEON module. 29. The AFAs have no involvement in the school fund processes but do provide practical advice when asked by clerical staff or Head Teachers, this tends to be in secondary schools where the AFAs are the Line Managers of the office clerical staff. Some have provided training and others point clericals towards the Circular and LEON module. 30. 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. The majority of staff responsible for the administration of the school fund are clerical staff who have been trained by previous staff members (handover training) or developed knowledge over time. This is in part reflected in the inconsistent practices across schools visited. 31. Feedback from school is that practical training should be provided for head teachers, committee members and clerical staff involved in the management and administration of school funds. Staff said that finding time for training has proved difficult while still completing their normal work/tasks. 32. An Admin and Finance Assistant created a practical “How to guide” and a streamlined spreadsheet to support a member of the clerical staff new to the administration of the school funds processes. These should be reviewed to see if they could be used to form part of new training materials. Action Plan 4 Appropriate record keeping and banking arrangements are established 33. The Circular sets out a series of requirements in relation to how schools should maintain financial records and manage bank accounts. Exhibit 4 sets out a summarised position of compliance with these requirements for the twelve schools visited. Exhibit 4 – Compliance with required Record Keeping and Banking Arrangements Requirement Compliant Schools School fund bank account in school name with no reference to the Council 11 Head teachers maintain list of school bank accounts detailing account name, number, branch and account signatories 4 Three, or more, signatories for bank accounts with two required to operate 11 Cashbooks maintained within which all income and expenditure is recorded 10 Monthly reconciliations between cashbook and bank statements 10 Monthly reconciliations checked by second person 3 Income lodged intact (expenditure not taken out of income prior to banking) 11 Frequency of banking determined by head teacher (no less than weekly) 11 34. Local banking arrangements and a move away from cash have contributed to the use of online banking. Six schools currently have online banking arrangements in place with another one in the process of setting this up. Some banks only require one person to make online payments, Page 46
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11 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 this contradicts the two signatures required for a withdrawal. The process of making payments is different from authorising expenditure and schools could provide evidence that expenditure was authorised prior to the payment being made. The Circular and appendix 1 template constitution should be updated to include instructions/ guidance for the use and recording of on line banking authorisations. Action Plan 1 35. All schools visited have mainly robust processes, however, these do not fully follow the standard record keeping and cashbook arrangements laid out in the Circular. Eight were maintained in Microsoft Excel, two were hand written in books and we were unable to test one. Although the information contained in the cashbooks bore similarities to the standard template provided in Appendix 5 of the Circular, none were the same. Action Plan 1 & 3 36. Although all ten schools do perform monthly reconciliations between their cashbook and the bank statement, only three have the reconciliation checked by a second person. Some of the reconciliations were carried out on sticky notes on the bank statement, this is not sufficient in terms of compliance. The Circular should contain a checklist section on key tasks which must be adhered to. Consideration should be given to whether this checklist should be submitted as part of the annual returns process in order to evidence compliance, these could then be subject to spot checks. Action Plan 1 and 5 There are appropriate measures in place to manage ‘School Trip’ accounts. 37. The Circular acknowledges that schools may not have a separate ‘School Trip’ bank account but rather will only operate one school funds bank account. Three schools maintain separate trip accounts, six use the general purpose bank account and in two small primary schools the parent council fund and manage school trips. 38. The Circular provides instructions for school trips, requiring that a note of the amount held in relation to each trip be maintained and that at the conclusion of each trip an income and expenditure statement should be prepared and the balance, if not zero, should be transferred to the main school fund account/balance. There is no description of roles and responsibilities, in particular there is no mention that class teachers as trip leaders are usually responsible for taking payments for these trips. Offering parents and carers the option to either make an online payment to the school fund and the trial of the iPay system, has reduced the amount of cash handled by teachers and clerical staff. 39. Six schools maintain a separate cashbook for trips, two have separate lines on the general purpose cashbook and two have no records as this is handled by the parent council. While schools have clear and robust records for income and expenditure for individual trips, it is not as per the instructions in the Circular. Only one school had balanced some trips back to zero, but this was done just prior to our visit and although some trips are balanced out, no schools prepare income and expenditure statements. Some trips are re-occurring and schools have ongoing fund raising for these. The Circular and templates should be updated to provide clarity on roles and responsibilities and to provide guidance on standard working practices going forward. Action Plan 1 Page 47
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12 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 All income and expenditure is adequately recorded and authorised and cash handling arrangements are appropriate 40. The Circular requires all income and expenditure to be recorded in a cashbook and be supported by appropriate documentation which should be recorded as per instructions set out in appendix 5. As stated in para 37 above, cashbooks bore similarities to the standard template but none were the same. In addition, expenditure should be authorised in compliance with expenditure limits established by the schools constitution. One school couldn’t be tested fully, but for the ten schools visited: seven had constitutions, four of these had established limits but only two could evidence that all expenditure had been authorised in compliance with these limits; all ten recorded expenditure in the cashbook which was supported by appropriate documentation, although not always in the standard format detailed in the Circular; some expenditure has not been authorised in compliance with stated expenditure limits. there was no unauthorised expenditure; all provide receipts for income, but four don’t record these in the cashbook all income is lodged intact; supporting documentation for income was not always retained in the school fund folder; all ten schools have appropriate arrangements in place for securing cash and cheques and the frequency of banking; we were provided assurances by all schools that cheques, where used, are fully completed before they are signed meetings are not recorded, meaning there are instances where decisions to buy/purchase have been verbal, however payment is always authorised; in two schools, although the Head Teacher was aware of the expenditure, they did not physically sign any paperwork; as noted previously, there are no instructions for interim head teacher posts, with head teachers not being added as a bank account signatory until they are permanent. 41. Where schools use Council approved suppliers to purchase items, usually via PECOS and pay for items through the Council purchase cards, the process followed by clerical staff to record this via a google spreadsheet and arrange a payment to reimburse the Council. AFAs monitor and reconcile these transactions as part of the budget monitoring process. 42. 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, schools do not maintain a grants register and discussions with AFAs found that they will only be advised in some cases and usually only after the application has been submitted. 43. Our review of income to school funds found that one school had a large donation for a specific purpose but the email correspondence for this has not been saved in the shared school fund folder on the server. Another schools’ cashbook showed a large donation but we were unable to test this before the school holidays. The concern is that some of these funds may be grants or have been donated for a specific purpose, both are likely to have conditions attached and we could not establish if these have been accurately recorded or whether there was appropriate supporting evidence available. The Circular should be updated to state that AFAs must be Page 48
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13 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 consulted prior to grant applications being submitted to ensure that the applicant is the correct beneficiary and that income and expenditure is accurately recorded. Additionally, a central grant register, covering all schools, should be created and maintained. Action Plan 1 and 5 School fund accounts are subject to appropriate audit and record retention 44. The Circular requires schools to submit an annual income and expenditure statement be prepared by the administrator and signed by all the bank account signatories. Testing of the year ended 2022-23 established that: there is no actual procedure note for the central education teams task, the standard template, appendix 7, doesn’t state that all bank signatories should sign this and it is not included with the email issued by the central education team; only limited information is recorded when returns are received; there is only one follow up email issued when returns are not received, usually December; twenty six of the eighty schools, (32.5%), failed to submit an annual Income and Expenditure Statement; the format, style and quality of the annual statement varied considerably across the schools visited, with only two schools statements signed by all bank signatories; no sample checks/reviews or audits are carried out; one of the schools tested, has not submitted a return since year ending 2018/19 and there is no comment or explanation on the returns spreadsheet; the cumulative balance for the fifty four schools who submitted a return was £0.94m; two of the larger secondary and one of the larger primary schools had significant balances and there is no comment or explanation on the returns spreadsheet to say if these have been queried. There is scope to set up a standard procedure which should include details of the checks/reviews and follow ups that will be carried out. Action Plan 6 45. The cumulative school fund balances noted above are circa £1m, this is mainly administered by clerical staff with minimal financial training. AFAs should have sufficient oversight of all secondary schools and primary schools with larger pupil role counts. Risks to the Council from non-compliance or inaccurate recording of grants and donations would be mitigated by the financially trained AFAs having an overview to ensure income, beneficiaries and expenditure is recorded accurately and through the appropriate channel. This would also provide financial support and reassurance to head teachers. Action Plan 7 46. Schools are required to have their school fund audited on an annual basis by a person unconnected to the administration of the fund. The auditor is required to sign the cashbook and annual income and expenditure statement to evidence the performance of the audit. Our review highlighted that: only five schools had made arrangements for their statements to be audited; no school gets the auditor to sign the cashbook; Page 49
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14 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 good practice was identified where two school fund accounts had been reviewed by the Parent Council Treasurer. This is good as Parent Councils have knowledge of the school and its activities which provides good scrutiny of the school fund. Schools should be reminded of their responsibility to have the school fund accounts independently audited. Consideration should be given to a task or calendar reminder for this and other key tasks or events be set up, either as part of the Circular or the annual statement of income and expenditure process. Action Plan 1 and 5 47. Discussions with staff confirm all schools retain records in accordance with the requirements. Page 50
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Appendix 1 – Action Plan No Finding Risk Agreed Action Responsibility / Due Date High 1 Education Management Circular 1.10 and appendices As detailed in the report, there is a lack of adherence to the standard practices contained in Education Management Circular 1.10 and since the last update in 2020 there have been changes to working practices. A summary of the points in the report will be provided in a list for ease of reference. The Circular and its appendices needs reviewed, clarified and updated and should contain a checklist section on key tasks which can be used to document and confirm compliance. School Funds are not managed in accordance with Education Management Circular 1.10 Working Group to be established including HT, AFA, Clerical, Finance Rep to review and update circular School Services Support Manager 28 February 2025 Medium 2 Communicating amendments and updates Feedback from schools found that some clerical staff and some committee members are unaware of EMC 1.10 and therefore are unaware of the standard processes and templates. Future updates and amendments to EMC 1.10 should be communicated to all staff in schools. Staff involved in the management of school funds are unaware of the requirements within EMC 1.10 and standard procedures are not followed. Following update of Management Circular information will be cascaded to HTs and clericals. Will be put on HT agenda for discussion School Services Support Manager 31 March 2025 Medium 3 LEON School Funds Training Module The LEON module should be updated to reflect the amendments to EMC 1.10 and its appendices. Additionally this module should be considered as mandatory training for staff involved in the administration and management of school funds including: all new committee members, new/interim head teachers and new clerical staff. Staff, and Committee members, involved in the management of school funds have not received sufficient training and standard procedures are not followed. LEON will be updated in line with updated to circular and will be made a mandatory training for staff involved in the administration and management of school fund. School Services Support Manager 30 April 2025 Page 51
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16 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 No Finding Risk Agreed Action Responsibility / Due Date Medium 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. Staff, and Committee members, involved in the management of school funds are unaware of the requirements within EMC 1.10 and standard procedures are not followed. 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 School Services Support Manager 30 June 2025 HIGH 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. A central grant register for grants over £1,500, covering all schools, should be created and maintained. Grant income may not be accurately accounted for and evidence of compliance with conditions may be readily available. 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. School Services Support Manager 30 April 2025 Medium 6 Annual income and expenditure statement returns There is no procedure note for this central education teams task; no template is issued; only one follow up is issued; only limited information is recorded when returns are received; no sample checks/reviews or audits are carried out. For the year ended 2022-23, twenty six out of eighty schools (32.5%) failed to submit a return. A standard procedure note for the annual income and expenditure statement returns should be created, this Reporting and monitoring of individual schools’ funds is not carried out in accordance with Education Management Circular 1.10. Returns will be submitted in line with the timescale for CARP documents. There will be a procedure note established for this. There will be 2 general reminders issued and non- returners will be referred to the School Services Support Manager for follow up School Services Support Manager 31 October 2024 Page 52
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17 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 No Finding Risk Agreed Action Responsibility / Due Date should include details of the checks/reviews and follow ups that will be carried out. Consideration should be given to whether the checklist for key tasks which must be adhered to, should be submitted as part of the annual returns process to evidence compliance, these could then be subject to spot checks. Medium 7 Financial oversight of school funds in secondary and larger primary schools The cumulative school fund balances are circa £1m, this is mainly administered by clerical staff with minimal financial training. To ensure income and expenditure is accurately recorded through the appropriate channels, Admin and Finance Assistants, should have oversight of all secondary schools and primary schools with larger pupil role counts. School funds may not be getting managed appropriately AFAs will be instructed to have oversight of the school fund in all secondary schools and primary schools with rolls over 80 School Services Support Manager 30 April 2025 Page 53
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18 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 In order to assist management in using our reports a system of grading audit findings has been adopted to allow the significance of findings to be ascertained. The definitions of each classification are as follows: Grading Definition High A major observation on high level controls and other important internal controls or a significant matter relating to the critical success of the objectives of the system. The weakness may therefore give rise to loss or error. Medium Observations on less significant internal controls and/or improvements to the efficiency and effectiveness of controls which will assist in meeting the objectives of the system. The weakness is not necessarily substantial however the risk of error would be significantly reduced if corrective action was taken. Low Minor recommendations to improve the efficiency and effectiveness of controls or an isolated issue subsequently corrected. The weakness does not appear to significantly affect the ability of the system to meet its objectives. VFM An observation which does not highlight an issue relating to internal controls but represents a possible opportunity for the council to achieve better value for money (VFM). Page 54
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19 Argyll and Bute Council – Internal Audit Report– School Funds & Management of Funds August 2024 Appendix 2 – Audit Opinion Level of Assurance Definition High 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. Substantial Internal control, governance and the management of risk is sound. However, there are minor areas of weakness which put some system objectives at risk and specific elements of residual risk that are slightly above an acceptable level and need to be addressed within a reasonable timescale. Reasonable Internal control, governance and the management of risk 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. Limited Internal control, governance and the management of risk are displaying a general trend of unacceptable residual risk above an acceptable level and placing system objectives are at risk. Weakness must be addressed with a reasonable timescale with management allocating appropriate resources to the issues raised. No Assurance Internal control, governance and the management of risk is poor. Significant residual risk and/or significant non-compliance with basic controls exists leaving the system open to error, loss or abuse. Residual risk must be addressed immediately with management allocating appropriate resources to the issues. Page 55
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Argyll and Bute Council Internal Audit Report June 2024 FINAL High Medium Low VFM Number of Findings 0 0 0 0 Education Maintenance Allowance-Verification Audit Audit Opinion: High Page 57
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2 Argyll and Bute Council – Internal Audit Report – EMA Verification audit, June 2024 Contents 1. Executive Summary ........................................................................................................................ 3 Introduction ............................................................................................................................................ 3 Background ............................................................................................................................................. 3 Scope ....................................................................................................................................................... 4 Risks ........................................................................................................................................................ 4 Audit Opinion ......................................................................................................................................... 4 2. Objectives and Summary Assessment ........................................................................................... 4 3. Detailed Findings ............................................................................................................................ 5 Appendix 1 – Audit Opinion ................................................................................................................... 7 Contact Details Internal Auditor: Mhairi Weldon Telephone: 01546 604294 e-mail: Mhairi.weldon@argyll-bute.gov.uk www.argyll-bute.gov.uk Page 58
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3 Argyll and Bute Council – Internal Audit Report – EMA Verification audit, June 2024 1. Executive Summary Introduction 1. As part of the 2024/25 internal audit plan, approved by the Audit & Scrutiny Committee in March 2024, we have undertaken an audit of Argyll and Bute Council’s (the Council) system of internal control and governance in relation to Education maintenance Allowance (EMA) Verification. 2. The audit was conducted in accordance with the Public Sector Internal Audit Standards (PSIAS) with our conclusions based on discussions with council officers and the information available at the time the fieldwork was performed. The findings outlined in this report are only those which have come to our attention during the course of our normal audit work and are not necessarily all the issues which may exist. It is the responsibility of management to determine the extent of the internal control system appropriate to the Council. 3. The contents of this report have been agreed with the appropriate council officers to confirm factual accuracy and appreciation is due for the cooperation and assistance received from all officers over the course of the audit. Background 4. Regulation 3 of the Education Maintenance Allowances (Scotland) Regulations 2007 (“the 2007 Regulations”) allows the Scottish Ministers to pay an education maintenance allowance (EMA) to provide support for eligible 16 to 19 year olds who are engaged in full-time education in school; undertaking a course of non-advanced education at home which has been approved by the education authority; or undertaking a course of non-advanced education elsewhere under the supervision of the education authority (including Learning Agreements/Action Plans). The 2007 Regulations form the basis of the EMA programme which aims to increase participation and retention in post-compulsory education, thus increasing skills and life chances for this group. EMA payments are made by the Council to eligible young people in school and other types of learning within the local authority area in accordance with the 2007 Regulations, and the EMA (Scotland) Guidance and Processes, provided that a young person is eligible for EMA, that a young person qualifies based on the EMA eligibility criteria and a signed learning agreement is in place. 5. The EMA programme offers means-tested financial support of £30 per week in arrears during term-time to eligible young people from low income households who are planning to continue in post-compulsory education. Eligibility for EMA payments depends on the young person's age, household income, residency, course validity and completion of a learning agreement detailing targets and attendance requirements. 6. The Scottish Government (SG) reimburses the Council for payments made to young people following submission of monthly grant claims and a year-end statement confirming the total of the monthly claims. A standard allowance for the costs of administering the programme as well as an additional £15 for each new application processed is also paid by the SG. 7. Audit Scotland published technical guidelines, TGN/EMA/21 in March 2021 and this was used to support auditors in the verification of EMA claims. Page 59
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4 Argyll and Bute Council – Internal Audit Report – EMA Verification audit, June 2024 Scope 8. The scope of the audit was to assess that the Council is fully compliant with requirements as set out in the Offer of Grant for EMA 2023/24. Risks 9. The risks considered throughout the audit were: • Audit Risk 1 – The Council fails to comply with the provisions set out in the Offer of grant for EMA 2023-24 Audit Opinion 10. We provide an overall audit opinion for all the audits we conduct. This is based on our judgement on the level of assurance which we can take over the established internal controls, governance and management of risk as evidenced by our audit work. Full details of the five possible categories of audit opinion is provided in Appendix 1 to this report. 11. 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. 2. Objectives and Summary Assessment 12. Exhibit 1 sets out the control objectives identified during the planning phase of the audit and our assessment against each objective. Control Objective Link to Risk Assessment Summary Conclusion 1 The year-end statement has been completed in accordance with guidance. Audit Risk 1 High Appropriate arrangements are in place to process applications and payments and prepare and submit accurate monthly claims and year-end schedules. All payments and costs were confirmed on the Council’s general ledger and verified on the claims submitted. 2 Young people have been correctly assessed for eligibility. Audit Risk 1 High A detailed review of a sample of 10 young people confirmed that EMA was appropriately awarded following submission of the required evidence in support of their applications. 3 Administration costs have been appropriately applied. Audit Risk 1 High The additional top-up administration cost has been applied to the monthly claims and correctly reflected in the year-end claim. 4 Completion procedures have been appropriately followed. Audit Risk 1 High The claim forms submitted accurately reflected payments made and costs incurred in accordance with the terms and conditions of the Offer of Grant. Page 60
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5 Argyll and Bute Council – Internal Audit Report – EMA Verification audit, June 2024 Claims and supporting evidence were reviewed, certified and confirmed to Scottish Government. 13. Further details of our conclusions against each control objective can be found in Section 3 of this report. 3. Detailed Findings The year-end statement has been completed in accordance with guidance. 14. The Councils arrangements for the completion of the year end statement are adequate. All relevant parts of the year end statement have been completed and signed by the Council’s Executive Director/Section 95 Officer including schedules 4 to 6 as required in the Offer of Grant for EMA 2023-24 letter. 15. The entries on the year-end statement were reviewed and found to be consistent with the total of the monthly claims submitted and also with entries lodged on the Council’s general ledger. Young people have been correctly assessed for eligibility 16. A total of 189 young people were awarded EMA payments in 2023-24, from these, a random sample of 10 was chosen for detailed review of supporting documentation to confirm they met the eligibility criteria as set out below: • Proof of age to confirm young person is between 16 and 19 years of age • Household income below £24,421 (one child) or £26,884 (more than one child) • UK citizen or qualifying non-national who are resident in Argyll and Bute area • Course(s) being undertaken is/are valid and require attendance of at least 21 hours per week • An agreement has been completed detailing learning goals and level of attendance required • Attendance records confirming eligibility for each weekly payment made • Back-payments were made in accordance with grant requirements 17. Documentation provided confirmed that all young people within the sample selected for review were appropriately awarded EMA following submission of the required evidence. Administration costs have been appropriately applied 18. The Council is in receipt of a flat rate of £25k for administering the EMA programme, in addition to this, an administration cost of £15 per new applicant in receipt of at least one payment of EMA is available to claim. The administration cost was correctly applied to monthly claims, a total of £3,045 was recovered from the SG in respect of this element and was found to be consistent with the documented requirements. Completion procedures have been appropriately followed 19. Testing carried out confirmed that payments were made in accordance with the grant terms and conditions and no adjustments required to be made. Page 61
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In order to assist management in using our reports a system of grading audit findings has been adopted to allow the significance of findings to be ascertained. The definitions of each classification are as follows: Grading Definition High A major observation on high level controls and other important internal controls or a significant matter relating to the critical success of the objectives of the system. The weakness may therefore give rise to loss or error. Medium Observations on less significant internal controls and/or improvements to the efficiency and effectiveness of controls which will assist in meeting the objectives of the system. The weakness is not necessarily substantial however the risk of error would be significantly reduced if corrective action was taken. Low Minor recommendations to improve the efficiency and effectiveness of controls or an isolated issue subsequently corrected. The weakness does not appear to significantly affect the ability of the system to meet its objectives. VFM An observation which does not highlight an issue relating to internal controls but represents a possible opportunity for the council to achieve better value for money (VFM). Page 62
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7 Argyll and Bute Council – Internal Audit Report – EMA Verification audit, June 2024 Appendix 1 – Audit Opinion Level of Assurance Definition High 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. Substantial Internal control, governance and the management of risk is sound. However, there are minor areas of weakness which put some system objectives at risk and specific elements of residual risk that are slightly above an acceptable level and need to be addressed within a reasonable timescale. Reasonable Internal control, governance and the management of risk 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. Limited Internal control, governance and the management of risk are displaying a general trend of unacceptable residual risk above an acceptable level and placing system objectives are at risk. Weakness must be addressed with a reasonable timescale with management allocating appropriate resources to the issues raised. No Assurance Internal control, governance and the management of risk is poor. Significant residual risk and/or significant non-compliance with basic controls exists leaving the system open to error, loss or abuse. Residual risk must be addressed immediately with management allocating appropriate resources to the issues. Page 63
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Argyll & Bute Health & Social Care Partnership Internal Audit Report March 2024 FINAL High Medium Low VFM Number of Findings 0 0 1 0 Adult Services-Adult Support and Protection Audit Opinion: Substantial Page 65
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2 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 Contents 1. Executive Summary ........................................................................................................................ 3 Introduction ............................................................................................................................................ 3 Background ............................................................................................................................................. 3 Scope ....................................................................................................................................................... 5 Risks ........................................................................................................................................................ 5 Audit Opinion ......................................................................................................................................... 5 Recommendations ................................................................................................................................. 5 2. Objectives and Summary Assessment ........................................................................................... 6 3. Detailed Findings ............................................................................................................................ 7 Appendix 1 – Action Plan ..................................................................................................................... 10 Appendix 2 – Audit Opinion ................................................................................................................. 12 Contact Details Internal Auditor: Moira Weatherstone Telephone: 01546 604146 e-mail: moira.weatherstone@argyll-bute.gov.uk www.argyll-bute.gov.uk Page 66
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3 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 1. Executive Summary Introduction 1. As part of the 2023/24 internal audit plan, approved by the Audit & Risk Committee in February 2023, we have undertaken an audit of Argyll & Bute Health & Social Care Partnership (HSCP) system of internal control and governance in relation to Adult Services-Adult Support and Protection. 2. The audit was conducted in accordance with the Public Sector Internal Audit Standards (PSIAS) with our conclusions based on discussions with Health & Social Care Partnership officers and the information available at the time the fieldwork was performed. The findings outlined in this report are only those which have come to our attention during the course of our normal audit work and are not necessarily all the issues which may exist. Appendix 1 to this report includes agreed actions to strengthen internal control however it is the responsibility of management to determine the extent of the internal control system appropriate to the HSCP. 3. The contents of this report have been agreed with the appropriate Health & Social Care Partnership officers to confirm factual accuracy and appreciation is due for the cooperation and assistance received from all officers over the course of the audit. Background 4. Scottish Ministers requested that the Care Inspectorate lead joint inspections of adult support and protection in collaboration with Healthcare Improvement Scotland and Her Majesty’s Inspectorate of Constabulary in Scotland. The joint inspection of the Argyll and Bute partnership took place between June 2021 and September 2021, with the report being issued in September 2021. 5. To provide Scottish Ministers with timely high-level information, the joint inspection report included a statement about the Council’s progress in relation to our two key questions: • How good were the partnership’s key processes for adult support and protection? • How good was the partnership’s strategic leadership for adult support and protection? 6. The report concluded that the partnership’s key processes for adult support and protection were effective with areas for improvement. There were clear strengths supporting positive experiences and outcomes for adults at risk of harm, which collectively outweighed the areas for improvement. 7. The summary concluded: • “The Argyll and Bute partnership had an established and clear vision, supported by an effective multi-agency adult protection committee. The strategic response to the Covid- 19 pandemic was effective with strong community engagement. The partnership was particularly proactive in raising awareness of adult support and protection within the community and with the people responsible for planning, delivering and evaluating care and support; Page 67
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4 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 • Partner agencies worked collaboratively to improve outcomes for adults at risk of harm. The partnership should involve health and police staff more in key stages of the adult support and protection process. Senior leaders effectively managed significant challenges in maintaining adequate staffing levels during the Covid-19 pandemic. A combined approach from partner agencies and volunteers helped to keep people safe and protected; • The systems and processes for carrying out initial inquiries into adult support and protection concerns were effective which helped to ensure concerns raised by people were progressed timeously by appropriate staff. Investigations were carried out by the partnership effectively, which helped to keep adults at risk of harm safe and protected. However, the governance of risk assessments and chronologies needed to be significantly improved to minimise risks for adults at risk of harm. This had been identified by previous audits carried out by the partnership; however, the lack of improvement suggests leadership’s ability to affect change has been limited”. 8. The key strengths highlighted in the report were: • “Adults at risk of harm were safer due to effective multi-agency working; • The partnership conducted a comprehensive audit of adult support and protection practice to determine how effective systems were at protecting adults at risk of harm; • A range of adult support and protection learning and development sessions and online training were made available to all staff. Staff knew where to get advice if they had concerns about an adult at risk of harm. Staff raised concerns regarding adult support and protection timeously and most staff said referral processes were clear and well understood; • Adults at risk of harm benefitted from social contact, support and advice from staff and volunteers. This was particularly helpful during the periods of restriction due to Covid-19 when risks associated with isolation increased; • Investigations were collaborative, well documented and effective; • Strategic leadership recognised the impact of financial harm and implemented effective governance to minimise risks”. 9. There were 4 priority areas identified for improvement: • “All relevant partners should be invited to participate in case conferences and review case conferences; • The ‘three-point test’ is an essential factor in determining if the adult is at risk of harm. The application of the test should be clearly documented during initial inquiry to show decision making rationale; • All adults at risk of harm should have a risk assessment, which is comprehensive; • There should be a consistent approach to preparing and recording chronologies for all adults at risk of harm who require one”. 10. The report required that the Argyll and Bute partnership prepare an improvement plan to address the priority areas for improvement with the Care Inspectorate, through its link Page 68
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5 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 inspector, Healthcare Improvement Scotland and Her Majesty’s Inspectorate of Constabulary in Scotland will monitor progress implementing this plan. Scope 11. The scope of the audit was to assess response to 2021 Review of Adult Services to provide assurance that strategic decisions have been taken to deliver on outcomes as outlined in the Terms of Reference agreed with the Head of Adult Services (Mental Health, Acute and Complex Care) on 23 February 2024. Risks 12. The risks considered throughout the audit were: • SRR13 – Service Delivery • Audit Risk 1: Failure to prepare an improvement plan • Audit Risk 2: Failure to implement improvement plan • Audit Risk 3: Failure to monitor progress of plan Audit Opinion 13. We provide an overall audit opinion for all the audits we conduct. This is based on our judgement on the level of assurance which we can take over the established internal controls, governance and management of risk as evidenced by our audit work. Full details of the five possible categories of audit opinion is provided in Appendix 2 to this report. 14. Our overall audit opinion for this audit is that we can take a substantial level of assurance. This means that internal control, governance and the management of risk is sound. However, there are minor areas of weakness which put some system objectives at risk and specific elements of residual risk that are slightly above an acceptable level and need to be addressed within a reasonable timescale. Recommendations 15. We have highlighted one low priority recommendations where we believe there is scope to strengthen the control and governance environment. These are summarised below: • Work should continue to ensure that all the improvement plan action points are completed ahead of any follow up audit by the Care Inspectorate and that all partners engage with the processes and procedures put in place 16. Full details of the audit findings, recommendations and management responses can be found in Section 3 of this report and in the action plan at Appendix 1. Page 69
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6 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 2. Objectives and Summary Assessment 17. Exhibit 1 sets out the control objectives identified during the planning phase of the audit and our assessment against each objective. Exhibit 1 – Summary Assessment of Control Objectives Control Objective Link to Risk Assessment Summary Conclusion 1 An improvement plan has been put in place SRR13 Audit Risk 1 High A comprehensive improvement plan was developed in 2021 with the aim of improving activity in health and social care to make services better for the people who use them. Argyll and Bute Adult Support and Protection Partnership (the Partnership) were required to submit the Improvement Plan by November 2021, to the Link Inspector, demonstrating that it addresses the priority areas for improvement identified within the report. In addition, the Partnership were required to respond to a post inspection questionnaire which was also required to be submitted in November 2021. Both were submitted within the deadline. 2 Recording and monitoring processes have been put in place to monitor progress against plan SRR13 Audit Risk 3 Substantial Recording and monitoring processes have been put in place to track progress against the Improvement Plan. The ASP Improvement Plan – Action Plan is populated to identify the action required, the Current Position/Update, the identified responsible officer, the timescales identifying when the action was last revised and the current status. A reflective retrospective Adult Support and Protection (ASP) audit was completed across the four Localities of Argyll. The purpose of the audit was to identify the quality of practice and recording in Adult Support and Protection cases after the Joint Inspection of Adult Support and Protection. The audit highlighted that there was room for improvement in a number of key areas, including greater participation of key partners in case conferences. In addition, chronologies, risk assessments and the ‘three point test’ must be completed. Page 70
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7 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 3 Progress against improvement plan has been reported to relevant officer and/or Committees Audit Risk 2 Substantial Progress against the Improvement Plan is published and reported. The Improvement Plan is a standing agenda item at the Argyll and Bute Adult Protection Committee (APC) where progress and updates are provided. The APC is a multi-agency committee. In addition, the Council Officer Forum discuss the improvement areas outlined in the report. This forum is attended by various Council Officers. 18. Further details of our conclusions against each control objective can be found in Section 3 of this report. 3. Detailed Findings An improvement plan has been put in place 19. A joint inspection of the Argyll and Bute partnership took place between June 2021 and September 2021, with a report being issued in September 2021. The report required that the Argyll and Bute Partnership prepare an improvement plan to address the priority areas for improvement. A comprehensive improvement plan was developed in 2021 with the aim of improving activity in health and social care to make services better for the people who use them, including considering making services safer, more effective, more person-centred, more equitable and timelier. 20. The improvement plan identifies the key areas for improvement within the report, identifies barriers to improvement, outlines an action plan for improvement and details the monitoring process including how success will be measured. In addition, it identifies target dates for completion. 21. Argyll and Bute Adult Support and Protection Partnership (the Partnership) were required to submit to the Link Inspector, the Improvement Plan by November 2021 demonstrating that it addresses the priority areas for improvement identified within the report. In addition the Partnership were required to respond to a post inspection questionnaire which was also required to be submitted in November 2021. Both were submitted within the deadline. Recording and monitoring processes have been put in place to monitor progress against plan 22. Recording and monitoring processes have been put in place to track progress against the Improvement Plan. The Adult Support and Protection (ASP) Improvement Plan – Action Plan is populated to identify the action required, the Current Position/Update, the identified responsible officer, the timescales identifying when the action was last revised and the current status. The current status is recorded as a traffic light system - red, amber and green. Page 71
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8 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 23. A reflective retrospective ASP audit was completed across the four Localities of Argyll and Bute. The purpose of the audit was to identify the quality of practice and recording in ASP cases after the Joint Inspection of Adult Support and Protection. A sample of 40 case files which had ASP activity between March 2022 and April 2023 were randomly selected for audit review. 24. Significant progress has been made to address the key areas of improvement highlighted within the report specifically: • In terms of improvement, as per the requirements of the report, all relevant partners were invited to participate in case conferences and review case conferences. However, the final ASP Case File Audit 2023/24, dated 4 March 2023, noted that 100% of relevant parties were invited to attend the case conference, however, only 11% of files read considered that all relevant parties attended the case conference. The relevant parties invited but who did not attend include GP; Parkinson’s Nurse; Advocacy; Consultant Psychiatrist; Police; and Scottish Fire and Rescue. With more case conferences taking place online, this is considered to be the preferred option. It is now considered that increased ability for professionals to attend an online meeting might improve overall multi-agency attendance. • The report highlighted that the application of the ‘three-point test’ should be clearly documented during initial inquiry to show decision making rationale. Training courses, training materials and updated procedures which include information on the three point test have been made available. In addition, on Eclipse (the client record management database) there are three questions about each of the points of the three point test, these are all mandatory fields. There is also a supplementary text box for each to give details of the rationale for the answer to each of the three questions, these too are mandatory. Mandatory questions, if not answered, allow the user to fill in the form, however, the form cannot be submitted until all mandatory questions have been answered. From the 1st of April as a result of work currently being undertaken to update the forms and worklists on Eclipse, there will be a further mandatory question introduced “Does the person meet the criteria of the three point test”. The final ASP Case File Audit 2023/24, highlighted of 40 client records tested, the three-point test had been applied correctly in 87% cases. • In order to address the requirement that all adults at risk of harm should have a risk assessment, a newly devised comprehensive Risk Assessment (RA) document has been developed with the expectation that it is completed alongside the Eclipse IT documentation for all cases investigated. There is a requirement that the risk assessments must be completed for all ASP cases and submitted to a case conference 24 hours in advance. The final ASP Case File Audit 2023/24, noted that of the 40 client records tested, 57% of files had a risk assessment and of those, 96% of files were noted as having multi-agency involvement in the risk assessment, 9% of risk assessments were deemed to be weak, 31% were rated good and 30% very good. • Significant progress has been made to adopt a consistent approach to preparing and recording chronologies for all adults at risk of harm who require one, however it is noted that the implementation of a schedule of monthly peer review/ case file audit has been delayed due to workforce challenges. Quarterly scrutiny of inquiry and investigation Page 72
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9 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 documentation demonstrates that some workers continue to overlook this. The final ASP Case File Audit 2023/24 identified that of the 40 client records tested, there has been little improvement in chronologies within ASP recording with 53% of the audited cases not having a chronology when it was considered that there should have been one and of those with a chronology, 74% were to an acceptable standard. Training and guidance is in place and in addition all staff undertaking adult support and protection activity are aware that they are required to complete the Eclipse Chronology. ASP training has been further developed to ensure understanding and analysis of the 3 point test. A new second worker course aimed at Health workers as second workers has been created and trialled. The completion of useful Chronologies is a national issue, hence the creation of the National Implementation Group Chronologies of which the Lead Officer is a member. New learning and development materials are currently being identified nationally and training for all Argyll and Bute staff, involved in ASP recording, is currently being developed for use in 2024. • Scottish Fire and Rescue service and all other partners with a duty to cooperate are included in key stages of the adult protection processes when this is appropriate. The Multi-Agency Forum/Discussion (MAF/D) was established as part of Argyll and Bute Health and Social Care Partnership’s Adult Support and Protection Strategy. The overall aim of this group meeting is to have first line sight of individuals who come to the attention of services, including the police, ambulance, fire services, health or social care and housing and to provide a platform for multi-agency discussion to decide on the most appropriate response. Action Plan 1 Progress against improvement plan has been reported to relevant officer and/or Committees 25. Progress against the Improvement Plan is published and reported. The Improvement Plan is a standing agenda item at the Argyll and Bute Adult Protection Committee (APC) where progress and updates are provided. The APC is a multi-agency committee. We are advised that this is augmented by regular meetings with the link Inspector. 26. The Council Officer Forum discuss the improvement areas outlined in the report. This forum is attended by various Council Officers. Page 73
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Appendix 1 – Action Plan No Finding Risk Agreed Action Responsibility / Due Date Low 4 Progress Whilst significant progress has been made to address the key areas identified within the report there remains challenges in terms of ensuring attendance by all relevant partners at case conferences, ensuring that chronologies and risk assessments are completed and ensuring that the ‘three point test’ is undertaken. Adverse feedback from the follow up audit undertaken by the Care Inspectorate Adult services will facilitate an ASP audit on a six monthly basis to determine practice and compliance with ASP legislation and KPIs Head of Adult Services (Mental Health, Acute and Complex Care) 30 September 2024 Page 74
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11 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 In order to assist management in using our reports a system of grading audit findings has been adopted to allow the significance of findings to be ascertained. The definitions of each classification are as follows: Grading Definition High A major observation on high level controls and other important internal controls or a significant matter relating to the critical success of the objectives of the system. The weakness may therefore give rise to loss or error. Medium Observations on less significant internal controls and/or improvements to the efficiency and effectiveness of controls which will assist in meeting the objectives of the system. The weakness is not necessarily substantial however the risk of error would be significantly reduced if corrective action was taken. Low Minor recommendations to improve the efficiency and effectiveness of controls or an isolated issue subsequently corrected. The weakness does not appear to significantly affect the ability of the system to meet its objectives. VFM An observation which does not highlight an issue relating to internal controls but represents a possible opportunity for the HSCP to achieve better value for money (VFM). Page 75
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12 Argyll & Bute Health & Social Care Partnership – Internal Audit Report – Adult Services-Adult Support and Protection, March 2024 Appendix 2 – Audit Opinion Level of Assurance Definition High 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. Substantial Internal control, governance and the management of risk is sound. However, there are minor areas of weakness which put some system objectives at risk and specific elements of residual risk that are slightly above an acceptable level and need to be addressed within a reasonable timescale. Reasonable Internal control, governance and the management of risk 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. Limited Internal control, governance and the management of risk are displaying a general trend of unacceptable residual risk above an acceptable level and placing system objectives are at risk. Weakness must be addressed with a reasonable timescale with management allocating appropriate resources to the issues raised. No Assurance Internal control, governance and the management of risk is poor. Significant residual risk and/or significant non-compliance with basic controls exists leaving the system open to error, loss or abuse. Residual risk must be addressed immediately with management allocating appropriate resources to the issues. Page 76
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ARGYLL AND BUTE COUNCIL AUDIT AND SCRUTINY COMMITTEE FINANCIAL SERVICES 5 SEPTEMBER 2024 INTERNAL AUDIT - ANNUAL SELF-ASSESSMENT 1. EXECUTIVE SUMMARY 1.1 This paper informs the Audit and Scrutiny Committee (the Committee) of the findings from the recent internal self-assessment of the Council’s Internal Audit service performed by a member of the Internal Audit team. 2. RECOMMENDATIONS 2.1 Members are requested to review and endorse the findings of the assessment including the identified areas for improvement, where applicable. 3. DETAIL 3.1 The Public Sector Internal Audit Standards (PSIAS) require the Council’s Chief Internal Auditor (CIA) to develop a Quality Assurance and Improvement Programme (QAIP). The purpose of the QAIP is to enable the evaluation of internal audit’s conformance to the PSIAS. The QAIP must include annual internal self-assessments with a five yearly external assessment, carried out by an independent assessor. 3.2 The Council’s last external independent assessment was reported to the Committee in March 2023 and concluded that internal audit demonstrated full compliance with PSIAS in all 14 areas of criteria, along with identified good practice. It also highlighted two minor areas for potential improvement which now have been fully implemented. A further internal self-assessment has been undertaken and again confirms compliance with all criteria. 3.3 The 2024 self-assessment exercise has been completed and the table below summarises the assessment of the service against each of the fourteen PSIAS assessment areas. PSIAS Assessment Area Assessment 1 Mission of internal audit Fully Conforms 2 Definition of internal auditing Fully Conforms 3 Code of ethics Fully Conforms 4 Purpose, authority and responsibility Fully Conforms 5 Independence and objectivity Fully Conforms 6 Proficiency and due professional care Fully Conforms 7 Quality assurance and improvement programme Fully Conforms 8 Managing the internal audit activity Fully Conforms 9 Nature of work Fully Conforms 10 Engagement planning Fully Conforms 11 Performing the engagement Fully Conforms 12 Communicating results Fully Conforms 13 Monitoring progress Fully Conforms 14 Communicating the acceptance of risks Fully Conforms Page 77 Agenda Item 7
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3.4 The self-assessment identified a number of areas of good practice and no further areas for improvement – these are summarised in the table below. Good Practice Comprehensive Internal Audit Charter which is subject to annual review and approval Robust procedures for ensuring independence and objectivity CIA has regular engagement with senior management Experienced and qualified team focused on continuous improvement Robust and structured audit planning Clear link between identified risks and audit work Strong audit engagement review and supervision Full and transparent audit reporting to Senior Management and Committee Comprehensive follow up process Regular progress reporting to Committee Annual assurance mapping Very positive feedback from services on audit approach and outputs Area for Improvement No actions outstanding. 4. CONCLUSION 4.1 The Internal Audit service has been self-assessed as fully conforming with PSIAS in all of the 14 assessment areas. This assessment is consistent with the opinions raised in the independent External Quality Assurance Assessment (EQA) reported to the Audit and Scrutiny committee in March 2023. 4.2 Overall, the CIA is of the view that this is a positive self-assessment which reflects well on the team and their ongoing commitment to improvement. This process is one element of assessing and determining compliance with best practice and mandatory requirements outlined by the relevant regulatory bodies. There will always be opportunity for improvement and development within the service and this will be reflected upon on a regular basis to improve the service we provide to the Council. 4.3 The Internal Audit service will continue to monitor compliance on an annual basis and also as part of the five yearly external quality assessment programme and will be subject to a comprehensive review undertaken by another local authority Chief Internal Auditor which is next scheduled for 2027/28. 5. IMPLICATIONS 5.1 Policy – Internal Audit continues to adopt a risk-based approach to activity 5.2 Financial –None 5.3 Legal –None 5.4 HR – None 5.5 Fairer Scotland Duty – None 5.5.1 Equalities – protected characteristics – None 5.5.2 Socio-Economic Duty – None 5.5.3 Islands – None Page 78
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5.6 Climate Change – None 5.7 Risk – None 5.8 Customer Service – None 5.9 The Rights of the Child (UNCRC) – None Paul Macaskill, Chief Internal Auditor 5 September 2024 For further information contact: Paul Macaskill, Chief Internal Auditor (01546 604108) Page 79
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ARGYLL AND BUTE COUNCIL Audit and Scrutiny Committee Legal and Regulatory Support 5 September 2024 Corporate Complaints – Annual Report 2023-24 1.0 INTRODUCTION 1.1 The report provides information on how the Council has dealt with complaints during the period between 1 April 2023 and 31 March 2024, and performed against the statutory indicators which have been agreed between the Scottish Public Services Ombudsman (SPSO) and the Local Authorities Complaint Handlers Network. 2.0 RECOMMENDATIONS 2.1 It is recommended that the Committee consider and note the content of this report. 3.0 DETAIL 3.1 All Council services follow the SPSO’s model complaint handling procedure (CHP). A requirement of this model procedure is that the Council report to the SPSO on a standard set of statutory performance indicators, and prepare an annual report for consideration by Members. The report attached at appendix 1 has been prepared in order to satisfy this requirement. 3.2 The scope of this report includes complaints received in relation to Live Argyll, and also includes complaints which relate to the Social Work service within Argyll and Bute HSCP. 3.3 The SPSO introduced a new model complaints handling procedure from 01 April 2021, which all local authorities were required to adopt. This updated procedure incorporates complaints in relation to the Social Work service, which were previously reported separately, and also introduced a new complaint outcome where officers can conclude a complaint as “resolved”. 3.4 A more detailed breakdown of performance by Service is attached at Appendix 2. Details around the common themes of complaints, service areas and further analysis of the root causes of complaints are provided within Appendix 3 to this report. This additional information is provided following a previous request from the Audit and Scrutiny committee. 3.5 The corporate complaints procedure is administered centrally by the Compliance and Regulatory team within Legal and Regulatory Support, Page 81 Agenda Item 8
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and quarterly performance reports are provided to departmental management. Performance reports are published on the Council’s website: Complaints | Argyll and Bute Council (argyll-bute.gov.uk) although some reports have not been uploaded this year due to the website upgrade. 3.6 The Compliance and Regulatory team produce monthly performance update reports, which are circulated to all Heads of Service and Directors, to draw attention to any areas where complaints performance may be falling. This includes detailed information, including the ward area and reasons for late response. 4.0 CONCLUSION 4.1 The Council has dealt with complaints it has received in accordance with the requirements of the complaints handling procedure and has complied with the obligation to prepare an annual report. Once it has been presented to the Audit and Scrutiny Committee, the annual report will be published on the Council’s website. 5.0 IMPLICATIONS 5.1 Policy None 5.2 Financial None 5.3 Legal Statutory requirement to prepare report 5.4 HR None 5.5 Fairer Scotland Duty: 5.5.1 Equalities 5.5.2 Socio-Economic Duty 5.5.3 Islands None None None 5.6 Climate Change None 5.7 Risk None 5.8 Customer Service None 5.9 The Rights of the Child (UNCRC) None Douglas Hendry Executive Director with responsibility for Legal and Regulatory Support 18 August 2024 Policy Lead – Councillor Mark Irvine. For further information contact: Iain Jackson, Governance, Risk and Safety Manager 01546 604188 APPENDICES Appendix 1 – Annual Complaints Report 2023-24 Appendix 2 – Service Breakdown Appendix 3 – Themes of Complaints Page 82
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Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … . ANNUAL COMPLAINTS ANNUAL COMPLAINTS PERFORMANCE REPORT 2023/24 Page 83
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Page 2 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … Contents Chief Executive’s Foreword ...................................................................................... 3 Introduction ............................................................................................................... 4 Complaints Process .................................................................................................. 5 Indicator 1 – Complaints Received per 1,000 of Population ...................................... 6 Indicator 2 – Number of Complaints .......................................................................... 7 Indicator 3 – Complaint Outcomes Stage 1 ............................................................... 8 Indicator 3 – Complaint Outcomes Stage 2 ............................................................... 9 Indicator 3 – Complaint Outcomes Escalated Complaints ....................................... 10 Indicator 4 – Average Times ................................................................................... 11 Indicator 5 – Performance Against Timescales ....................................................... 13 Indicator 6 – Extensions to Timescales ................................................................... 15 Indicator 7 – Customer Satisfaction ........................................................................ 16 Indicator 8 – Learning from Complaints – Reporting ............................................... 17 Indicator 8 – Learning from Complaints – Improvements ........................................ 18 Complaints Investigated by the SPSO .................................................................... 19 Complaint Themes .................................................................................................. 20 Positive Feedback ................................................................................................... 22 Contact Us .............................................................................................................. 24 Page 84
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Page 3 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … Chief Executive’s Foreword I am pleased to present Argyll and Bute Council’s Annual Complaints Report, which provides information about our performance in handling complaints from our customers between 1 April 2023 and 31 March 2024. Argyll and Bute Council is committed to providing high quality services for residents, businesses and visitors in our area and an important part of this commitment is to ensure we have effective processes in place to resolve matters when things go wrong. We strive to be thorough, transparent, objective and fair in our approach to complaints, and to make it as easy as possible for customers to access our complaints procedure through our website, by email, over the telephone or in person. I understand it can be disappointing and frustrating when your expectations’ are not met but we welcome and value complaints and feedback from our customers as it allows us to learn from the issues reported to us to improve the quality of the services we provide. Some examples of those improvements made are included within this report. It has been a challenging year and I thank all the staff in my organisation for doing what they do best and going the extra distance to provide the best possible services and support to the people of Argyll and Bute. Pippa Milne Chief Executive – Argyll and Bute Council Page 85
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Page 4 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … Introduction Argyll and Bute Council, along with all other Scottish Local Authorities, follow a model complaints handling procedure which is determined by the Scottish Public Sector Ombudsman (SPSO). This report presents how Argyll and Bute Council has performed against eight key performance indicators set by the SPSO that are used by all 32 local authorities, and provides some details about improvements to our services, along with some positive feedback from our customers. Complaints process Complaints can be either Stage 1, which are usually straightforward issues and must be dealt within 5 days or less, or Stage 2, which are usually about more complex or serious issues and can take up to 20 days for a response to be provided. If a customer is not happy with a Stage 2 response, they can refer their complaint on to the SPSO, who will look at the issues raised and can investigate the matter. Stage 1 Stage 2 SPSO In most cases, a complaint will be made because the customer considers that the Council has: • Done something wrong • Failed to live up to expectations • Treated someone badly or unfairly The process map on the following page outlines our process. What is a complaint? A complaint is ‘an expression of dissatisfaction about the Council’s action or lack of action, or about the standard of service provided by or on behalf of the Council’. Page 86
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Page 5 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … Complaints Process Page 87
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Page 6 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 1 – COMPLAINTS RECEIVED PER 1,000 OF POPULATION This section details the total number of complaints handled by Argyll and Bute Council between 1 April 2023 and 31 March 2024. To allow a fair comparison to be made across all 32 Scottish councils, this indicator looks at the figure of “complaints per 1,000 of population”. This means there were 9.1 complaints per 1,000 population, or roughly 1 resident in 110 made a complaint about our services. A comparison of this indicator over the past 3 years is shown in the table below. Year No. of Complaints Complaints Per 1,000 Population 2023/24 781 9.1 2022/23 686 8.0 2021/22 700 8.2 In 2023/2024 Argyll and Bute received, processed and closed 781 complaints. The population of Argyll and Bute is estimated at around 86,220 Page 88
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Page 7 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 2 – NUMBER OF COMPLAINTS This indicator provides information about the number of complaints closed at Stages 1 and 2, and the escalated complaints (when a customer is not satisfied with a stage 1 response, and it goes on to be dealt with as stage 2). 544 complaints were closed at Stage 1 – 70% 163 complaints were closed at Stage 2 – 21% 74 complaints were closed after escalation – 9% 12 complaints were not closed at Stage 1 within 10 days and were escalated to Stage 2 The graph below shows a comparison between the number of complaints received at each stage over the past 3 years. 544 163 74 467 138 81 499 141 60 0 100 200 300 400 500 600 Stage 1 Stage 2 Escalated No. of Complaints 2021/22 2022/23 2023/24 Page 89
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Page 8 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 3 – COMPLAINT OUTCOMES STAGE 1 With every complaint, we contact the customer and explain what the outcome of their complaint was — Upheld, Not Upheld or Partially Upheld — and provide details about how this decision was made. The charts below provide a comparison of the outcomes for this year, and over the past 3 years. The “resolved” outcome was introduced with the new complaints handling procedure in April 2021, and is used when positive action can be taken to resolve the issue for the customer. Upheld 28% Partially Upheld 24% Not Upheld 37% Resolved 11% 2023/2024 Outcomes 148 131 157 130 101 107 197 172 159 57 49 66 2023/24 2022/23 2021/22 Stage 1 Outcomes - 3 Year Comparison Upheld Partially Upheld Not Upheld Resolved 148 complaints were Upheld at Stage 1 – 33% 130 complaints were Partially Upheld at Stage 1 – 29% 197 complaints were Not Upheld at Stage 1 – 43% 57 complaints were Resolved at Stage 1 – 13% Page 90
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Page 9 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 3 – COMPLAINT OUTCOMES STAGE 2 Upheld 14% Partially Upheld 40% Not Upheld 45% Resolved 1% 2023/2024 Outcomes 23 22 24 63 55 65 72 55 49 1 5 3 2023/24 2022/23 2021/22 Stage 2 Outcomes - 3 Year Comparison Upheld Partially Upheld Not Upheld Resolved 23 Complaints were Upheld at Stage 2 – 17% 63 Complaints were Partially Upheld at Stage 2 – 46% 72 Complaints were Not Upheld at Stage 2 – 53% 1 Complaints were Resolved at Stage 2 – 1% Page 91
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Page 10 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 3 – COMPLAINT OUTCOMES ESCALATED COMPLAINTS When a customer is not happy with a Stage 1 response, it is dealt with as a Stage 2 complaint — these are known as “Escalated Complaints”. Upheld 30% Partially Upheld 24% Not Upheld 45% Resolved 1% 2023/24 - Outcomes 22 25 16 18 17 16 33 37 27 1 2 1 2023/24 2022/23 2021/22 Escalated Outcomes - 3 Year Comparison Upheld Partially Upheld Not Upheld Resolved 22 complaints were Upheld after escalation - 27% 18 complaints were Partially Upheld after escalation – 22% 33 complaints were Not Upheld after escalation – 41% 1 complaint was Resolved after escalation – 1% Page 92
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Page 11 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 4 – AVERAGE TIMES Stage 1 – We aim to respond to and close all Stage 1 complaints within 5 working days. In 2023/2024, we closed 532 complaints at Stage 1, with a total sum of 2,337 working days used to close them. Our average time to close a Stage 1 complaint was 4.4 working days. The figures for the last 3 years can be seen in the table below. Year No. of Complaints Closed Total Days Average Time (days) 2023/24 532 2337 4.4 2022/23 453 1,995 4.4 2021/22 489 1,999 4.1 Stage 2 – We aim to respond to and close all Stage 2 complaints within 20 working days. In 2023/2024, we closed 159 complaints at Stage 2, with a total sum of 3,587 working days used to close them. Our average time to close a Stage 2 complaint was 22.6 working days. The figures for the last 3 years can be seen in the table below. Year No. of Complaints Closed Total Days Average Time (days) 2023/24 159 3,587 22.6 2022/23 137 2367 17.3 2021/22 141 3,107 22 Monthly performance reporting is provided to all Heads of Service, Directors and Complaints Officers to allow them to take action with their Services if required. Page 93
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Page 12 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … Indicator 4 – Average Times After Escalation – in 2023/2024, we closed 74 escalated complaints after Escalation, with a total sum of 1,643 working days. Our average time to close a complaint after Escalation was 22.2 working days. The last three year’s results can be seen below. Year No. of Complaints Closed Total Days Average Time (days) 2023/24 74 1,643 22.2 2022/23 81 1671 20.6 2021/22 60 954 15.9 Page 94
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Page 13 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 5 – PERFORMANCE AGAINST TIMESCALES Stage 1 – We aim to respond to and close all Stage 1 complaints within 5 working days. In 2023/2024, we closed 532 complaints at Stage 1 with 442 of these within timescale, or 83%. 37 (7%) were closed after an extension was agreed with the customer. No. of Complaints Closed Within Timescale % No. with Extension % 2023/24 532 442 83% 37 7% 2022/23 453 370 82% 23 5% 2021/22 489 411 84% 11 2% Stage 2 – we aim to respond to and close all Stage 2 complaints within 20 working days. In 2023/2024, we closed 159 complaints at Stage 2, with 100 of these within timescale, or 63%. 38 (24%) were closed after an extension was agreed with the customer. No. of Complaints Closed Within Timescale % No. with Extension % 2023/24 159 100 63% 38 24% 2022/23 137 65 47% 33 24% 2021/22 141 93 66% 35 25% Complaints with extensions agreed do not count as within timescale, these are reported as late responses. Page 95
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Page 14 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … Indicator 5 – Performance Against Timescales After Escalation – in 2023/2024, we closed 74 complaints after Escalation, with 44 of these within timescale, or 59%. 12 (16%) were closed after an extension was agree with the customer. No. of Complaints Closed Within Timescale % No. with Extension % 2023/24 74 44 59% 12 16% 2022/23 81 46 57% 23 28% 2021/22 60 48 80% 8 13% Page 96
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Page 15 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 6 – EXTENSIONS TO TIMESCALES Part of the complaints handling procedure includes the option to seek an extension to the usual 5 or 20 day timescale, which should be agreed with the customer. This indicator reports the number and percentage of complaints at each stage which were closed after an extension to the 5 or 20 day timeline was authorised. Stage 1 37 Extensions agreed 7% of total complaints Escalated complaints 12 extensions agreed 16% of total complaints Stage 2 38 extensions agreed 24% of total complaints Page 97
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Page 16 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 7 – CUSTOMER SATISFACTION Our customers are automatically issued with a short complaints process satisfaction survey once their complaint has been closed. The survey asks for feedback about the complaints process, and gives an opportunity to send us suggestions for improvements. The survey results are reviewed by the Complaints Co-ordinators quarterly, and the feedback can be used to improve how we handle complaints. We received 86 responses to our survey during the year, which is just over 15% of all complaints received. A low response rate makes it difficult to get an accurate picture of how all of our customers feel about the complaints process. 68% of customers indicated that they found it easy to make a complaint 58% of customers indicated they were told if the response was going to take longer than the set timescales 64% of customers indicated that information about the complaints procedure was easily accessible. 58% of customers indicated that they were given the opportunity to fully explain their complaint. From our review of the feedback provided through the surveys, we recognise that customers are often frustrated when an ongoing issue is not resolved through the complaints process. Page 98
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Page 17 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 8 – LEARNING FROM COMPLAINTS – REPORTING Who looks at our complaints figures and trends? Information about complaints figures and corrective action taken is reported regularly to senior managers and a quarterly report is submitted to the Strategic Management Team. This process ensures the appropriate level of scrutiny takes place. Quarterly performance against the performance indicators is reported to the Local Authority Complaints Handlers Network (LACHN). We are also required to report our complaints figures to the Scottish Public Service Ombudsman (SPSO) by publishing our annual report. How we report Complaints Performance and Trends to our Customers We publish the quarterly and annual reports on our website: Complaints | Argyll and Bute Council (argyll-bute.gov.uk) Page 99
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Page 18 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INDICATOR 8 – LEARNING FROM COMPLAINTS – IMPROVEMENTS By dealing with complaints on a day-to-day basis, our Officers are able to make adjustments to processes when issues are raised. In general, no major policy or procedural changes were required in response to complaints, however, a number of minor changes or actions were taken in order to improve our services. Whilst these improvements may have been minor in the overall scale of activities within the Council, it is our hope that they have made significant changes to the quality of service received by our customers. Examples of some of these changes are shown below: Departmental Complaints Co-ordinators attend regular meetings where learning points from the SPSO are shared and discussed. The feedback and suggestions from customer satisfaction surveys are also reviewed, and any potential improvement ideas are investigated and taken forward where appropriate. Customer wanted to make a complaint about the unfair and limited notice given in relation to double Council Tax liability for second homes. Complaint Fully Upheld – Customer advised that the decision to double the council tax charge is indeed part of our ongoing efforts to address the issue of affordable housing. A sizeable proportion of the revenue generated from this increase will be specifically allocated to funding affordable housing schemes in the local communities. These initiatives aim to provide opportunities for individuals and families in need of affordable accommodation, thereby contributing to a more inclusive and sustainable housing landscape. The Council could have given second homeowners increased notice of its intention to double the Council Tax on second homes if the powers to do so were to be given to the Council in law. In future, under similar circumstances the Council will write to those affected by such changes and give them increased notice of potential increasing in tax liabilities Customer complaint in relation to child with Additional Support Needs who was experiencing difficulties in school including with children in connection with a social media post that had been made about them. Partially Upheld – While the incident did not take place in school there were indications within the social media post that photos may have been taken of the child while in school grounds. The school advised all pupils that mobiles phones must not be used on site including before or after school. Letters were sent to all parents informing that mobile phones may not be used on school premise and also requested that they discuss data protection with their children. Police Scotland were also invited to the school to deliver a safety workshop on social media usage. Page 100
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Page 19 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … COMPLAINTS INVESTIGATED BY THE SPSO When a customer is not satisfied with our final response to a complaint, they can take it to the Scottish Public Service Ombudsman (SPSO) and ask for the complaint to be investigated. The SPSO is the final arbiter for complaints about public services. Cases passed to SPSO during 2023/2024 21 cases were received by the SPSO in relation to Argyll and Bute Council in 2023/2024. The SPSO publishes reports about all the organisations it has involvement with. More information is available from Statistics 2023-24 | SPSO 5 – Advice (not progressed) - 1 was mature (complaint was out with the time period for raising the complaint), 2 were premature (complainant contacted the SPSO before progressing through full complaints process) and 2 were enquiries. 15 - resolved early (not investigated) — the SPSO asks the Council to provide information in connection with the complaint, from that the investigating officer decides whether the complaint should be pursued further. The reasons provided for not proceeding to an investigation were “Good Complaint Handling” and “Insufficient benefit would be achieved”. 1 – Investigation - complaint currently being investigated by the SPSO in which we are still awaiting a decision. Page 101
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Page 20 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … COMPLAINT THEMES We record information about what type of complaints we receive, and have a standard set of categories that complaints generally fall into. The chart below shows how the complaints received have been classified during 2023-24. *Note – the total here does not directly correspond with the total number of complaints, due to how escalated complaint categories are recorded 20 44 18 155 42 296 138 0 50 100 150 200 250 300 350 Damage/Injury Inadequate Information Late Delivery Non Delivery Policy Restriction Substandard Delivery Unacceptable Behaviour Number of Complaints Page 102
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Page 21 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … We have also captured information about what we believe the main theme of each complaint to be. This information will be provided (along with other levels of analysis) to our Elected Members and Senior Management to allow them to take this into consideration when making policy and service decisions. The chart below shows the main issues we have received complaints about. It includes all complaints where we received 5 or more in connection with a particular issue. 64 57 46 44 38 32 31 29 29 26 25 23 22 20 17 14 11 10 9 9 9 8 8 8 7 7 6 6 6 5 5 5 5 5 0 10 20 30 40 50 60 70 Staff Issue - Conduct Council Decision Education - Treatment of Child Social Work Decisions Staff Issue - Communication Planning Applications Council Property/Buildings Education - Other Missed Bin Council Tax Other Council Service Error Domestic Refuse Collection Parking Services Traffic Management Street Lighting Staff Issue - Other Ground Maintenance Road Works Failure of Care Live Argyll - Other Pothole Recycling Quality of Care Social Work Reports Cemeteries Public Conveniences Surfacing Commercial Refuse Pavements/Footpaths Road Closure Winter Maintenance Road Signage Drainage Public Transport No. of Complaints Page 103
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Page 22 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … POSITIVE FEEDBACK Was a pleasure to deal with Argyll & Bute Council today, super professional, super-efficient got the job done. Brilliant, thank you very much My call was quickly answered and was dealt with very professionally and very competently. Greatly appreciated being able to talk to someone to deal with this. Thank you very much We have worked only once with Argyll & Bute Council but found the process easy, communication and feedback was great. The girl that answered was very, very, good, she was very good at what she did, she was very cheerful you could even tell she was smiling in her voice. She was professional, she was brilliant, she needs a pay rise - give her one. Thank you very much Here is just a small extract of the positive feedback that we have received this year. It is important to recognise that excellent services are being delivered, often in very challenging circumstances. I dealt with her throughout the process from booking dates to the collection of our marriage certificate. I really cannot say enough about how friendly, professional and kind she was in all my dealings with her and she made our ceremony special and personal. I always thought that a civil ceremony might not be as special as a church service but the registrar proved me completely wrong and she will always have a special place in our hearts. Page 104
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Page 23 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … I was really happy because I was trying to find this information on your website and it's not your fault as my internet is painfully slow at the moment. The lady I spoke to was not only extremely helpful she offered to email it over to me so she's going to send me the information which is a great help. Thank you very much. Your operator was very, very nice, very polite and resolved my query very quickly and no problem whatsoever. It was a very easy and short call and I was pleased with the outcome. Thank you very much indeed. I would just like to say that any time I have phoned this number the staff have been excellent. That's all I wanted to say. Thank you. I have a reading and writing disability, the person who answered my call was more than helpful with my enquiry and was also willing to help with other questions that I had. More than helpful, it was a pleasant experience. Thank you. It was delightful to speak to a human being and the enquiry was sorted out within seconds or minutes. It was a delight to deal with the Argyll & Bute office I was very emotional and upset when I phoned and found a very helpful young lady on the other end of the phone who calmed me down and could find ways of moving my problem forward and that someone will phone me back and I'll be able to discuss it. I found that very helpful. Thank you. Page 105
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Page 24 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … CONTACT US Thank you for looking at our annual complaints report for 2023-24. If you would like to know more about our complaints procedure, details can be found on our website: https://www.argyll-bute.gov.uk/my-council/complaints Or you can contact us using any of the methods below. Phone – 01546 605522 Text – 07860023933 Post – Argyll and Bute Council, Kilmory, Lochgilphead, Argyll, PA31 8RT Email - enquiries@argyll-bute.gov.uk Online - https://www.argyll-bute.gov.uk/my-council/how-contact-us Page 106
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Department Stage 1 complaints Responded to within timescale Upheld Partially upheld Not upheld Resolved Stage 2 complaints Responded to within timescale Upheld Partially upheld Not upheld Resolved Chief Executives Directorate 0 0 0 0 0 0 1 1 0 1 0 0 Community Development & Planning 0 0 0 0 0 0 0 0 0 0 0 0 Total 0 0 0 0 0 0 1 1 0 1 0 0 % within timescale ‐ 100% Development & Infrastructure Directorate 0 0 0 0 0 0 0 0 0 0 0 0 Financial Services 38 37 16 3 15 4 9 9 1 2 6 0 Development & Economic Growth 63 38 14 12 19 15 19 8 1 5 13 0 Roads and Infrastructure 235 190 85 56 80 8 87 71 26 16 44 1 Customer Support 12 11 1 3 4 4 1 1 0 1 0 0 Total 348 276 116 74 118 31 116 89 28 24 63 1 % within timescale 79% 77% Customer Services Directorate 1 1 0 0 0 1 1 1 0 0 1 0 Legal & Regulatory 8 7 1 1 5 1 7 7 1 1 5 0 Commercial Services 73 71 5 30 38 0 1 1 0 0 1 0 Education 38 31 7 16 14 1 54 45 10 26 18 0 Total 120 110 13 47 57 3 63 54 11 27 25 0 % within timescale 92% 86% Health & Social Care Partnership Adult Care ‐ Older Adults/Community Hospitals 19 15 2 0 5 11 17 5 1 8 4 0 Adult Care ‐ MH, LD, Addictions & Lifelong Conditions 15 12 3 1 5 5 16 2 4 5 6 1 Children and Families & Criminal Justice 29 21 1 8 12 7 24 9 1 16 7 0 Total 63 48 6 9 22 23 57 16 6 29 17 1 % within timescale 76% 28% Live Argyll Live Argyll 13 8 13 0 0 0 0 0 0 0 0 0 Total 13 8 13 0 0 0 0 0 0 0 0 0 % within timescale 62% ‐ Overall totals 544 442 148 130 197 57 237 160 45 81 105 2 % within timescale 81% 68% Annual complaints figures 2023/24 Page 107
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Page 1 Annual Complaints Report 2023-24 Appendix 3 Annual Complaints Performance 2023-24 This report provides additional details to accompany the full annual complaints report for 2023-24, which is based on the 8 indicators set by the Scottish Public Service Ombudsman (SPSO). 1. All Complaints listed by theme Complaint theme Number Council Payments 3 Piers & Harbours 3 Non Domestic Rates 3 Civic Amenity 3 Litter 3 Committee/Governance 2 Core Paths 2 Projects, Renewables & Regeneration 2 Data Protection 2 Public Health 2 Payroll 2 Leisure Services 2 Building Warrants 2 Dangerous Buildings 2 Benefit Payments 1 Private Water Supplies 1 Local Development Plan 1 School Crossings 1 Animal Health 1 Council Tax Portal 1 School Catering 1 Scottish Welfare Fund 1 HR Policy/Process 1 Care Funding 1 Respite 1 Licensing 1 Education - Attendance Panel 1 Table 1 provides a full breakdown of complaints into relevant themes. From the data in the complaints system, we have assigned each case a theme, based on our understanding of the main issue raised in the complaint. Where complaints have been in connection with a number of issues, or could fall into various themes, we have assigned it the theme we believe to be the main issue. The larger themes are explored further within this report. Complaint theme Number Staff Issue - Conduct 64 Council Decision 57 Education - Treatment of Child 46 Social Work Decisions 44 Staff Issue - Communication 38 Planning Applications 32 Council Property/Buildings 31 Education - Other 29 Missed Bin 29 Council Tax Other 26 Council Service Error 25 Domestic Refuse Collection 23 Parking Services 22 Traffic Management 20 Street Lighting 17 Staff Issue - Other 14 Ground Maintenance 11 Road Works 10 Failure of Care 9 Live Argyll - Other 9 Pothole 9 Recycling 8 Quality of Care 8 Social Work Reports 8 Cemeteries 7 Public Conveniences 7 Surfacing 6 Commercial Refuse 6 Pavements/Footpaths 6 Road Closure 5 Winter Maintenance 5 Road Signage 5 Drainage 5 Public Transport 5 Homelessness Service 4 School Transport 4 Flooding 4 Noise Control 3 Cost of Council Service 3 Road Markings 3 Page 109
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Page 2 Annual Complaints Report 2023-24 Appendix 3 2. General breakdown by complaint category and department Details about some of the larger themes / areas of complaints are provided in this section. A more in depth breakdown within the main service areas is provided at section 4 below Table 1 – Categories of complaints by department Chief Executive’s Unit & Community Planning Education, Legal & Regulatory & Commercial Customer Support, Financial Services, Road & Infrastructure and Development & Economic Growth Health and Social Care Partnership Live Argyll Damage/Injury 1 17 1 1 Inadequate Information 6 4 26 7 1 Late Delivery 2 1 14 1 Non Delivery 27 119 8 1 Policy Restriction 2 8 28 3 1 Substandard Delivery 9 93 140 48 6 Unacceptable Behaviour 1 44 52 39 2 Grand Total 20 178 396 106 13 Table 2 – Number of complaints by area Details of complaint themes within ward areas are provided below. Area Count of Ward Area Bute and Cowal 152 Helensburgh and Lomond 234 Mid Argyll Kintyre and the Islands 157 Oban Lorn and the Isles 166 Area Not Identified 4 Grand Total 713 Page 110
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Page 3 Annual Complaints Report 2023-24 Appendix 3 Section 3 – Complaints themes by Area Table 3a Mid Argyll, Kintyre and Islands Theme Count of Ward Area Education - Treatment of Child 24 Staff Issue - Conduct 22 Social Work Decisions 16 Council Tax Other 9 Staff Issue - Communication 8 Education - Other 7 Missed Bin 7 Council Service Error 6 Planning Applications 6 Council Decision 5 Social Work Reports 4 Domestic Refuse Collection 4 Failure of Care 4 Quality of Care 4 Street Lighting 3 Recycling 3 Staff Issue - Other 2 Core Paths 2 Public Transport 2 Pothole 2 Parking Services 2 Public Health 1 Cemeteries 1 Drainage 1 Commercial Refuse 1 Committee/Governance 1 Flooding 1 Scottish Welfare Fund 1 Ground Maintenance 1 Non Domestic Rates 1 Road Closure 1 Payroll 1 Road Signage 1 Data Protection 1 Road Works 1 School Transport 1 Grand Total 157 Page 111
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Page 4 Annual Complaints Report 2023-24 Appendix 3 3b Oban, Lorn and the Isles Theme Count of Ward Area Council Property/Buildings 29 Staff Issue - Conduct 13 Social Work Decisions 10 Parking Services 9 Missed Bin 8 Staff Issue - Communication 8 Council Service Error 7 Education - Other 6 Education - Treatment of Child 6 Public Conveniences 5 Planning Applications 5 Winter Maintenance 5 Cemeteries 4 Staff Issue - Other 4 Commercial Refuse 3 Domestic Refuse Collection 3 Street Lighting 3 Ground Maintenance 3 Council Decision 3 Dangerous Buildings 2 Surfacing 2 Pothole 2 Cost of Council Service 2 Road Works 2 Council Tax Other 2 Non Domestic Rates 2 Piers & Harbours 2 Projects, Renewables & Regeneration 1 Failure of Care 1 Animal Health 1 Public Transport 1 Local Development Plan 1 Quality of Care 1 Data Protection 1 Recycling 1 Pavements/Footpaths 1 Road Signage 1 Council Tax Portal 1 Noise Control 1 Traffic Management 1 School Catering 1 Benefit Payments 1 School Transport 1 Grand Total 166 Page 112
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Page 5 Annual Complaints Report 2023-24 Appendix 3 3c Bute and Cowal Theme Count of Ward Area Theme Count of Ward Area Staff Issue - Conduct 16 Building Warrants 1 Traffic Management 15 Piers & Harbours 1 Education - Treatment of Child 9 Grand Total 152 Social Work Decisions 8 Education - Other 7 Planning Applications 7 Staff Issue - Communication 6 Street Lighting 6 Council Tax Other 5 Council Decision 4 Council Service Error 4 Pothole 4 Failure of Care 3 Staff Issue - Other 3 Recycling 3 Live Argyll - Other 3 Domestic Refuse Collection 3 Quality of Care 3 Social Work Reports 2 Public Transport 2 Council Payments 2 Civic Amenity 2 Homelessness Service 2 Road Closure 2 Parking Services 2 Road Signage 2 Ground Maintenance 2 Road Works 2 Surfacing 2 School Transport 2 Missed Bin 2 Pavements/Footpaths 2 Drainage 1 Projects, Renewables & Regeneration 1 Cost of Council Service 1 Respite 1 Care Funding 1 Commercial Refuse 1 Committee/Governance 1 Road Markings 1 Private Water Supplies 1 Noise Control 1 Public Health 1 Council Property/Buildings 1 Licensing 1 Page 113
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Page 6 Annual Complaints Report 2023-24 Appendix 3 3d Helensburgh and Lomond Theme Count of Ward Area Failure of Care 1 Council Decision 45 Recycling 1 Staff Issue - Communication 16 School Crossings 1 Planning Applications 14 HR Policy/Process 1 Domestic Refuse Collection 13 Council Property/Buildings 1 Staff Issue - Conduct 12 Pothole 1 Missed Bin 12 Grand Total 234 Social Work Decisions 10 Council Tax Other 10 Education - Other 9 Council Service Error 8 Parking Services 7 Education - Treatment of Child 7 Live Argyll - Other 6 Road Works 5 Staff Issue - Other 5 Ground Maintenance 5 Street Lighting 5 Traffic Management 4 Litter 3 Flooding 3 Pavements/Footpaths 3 Drainage 3 Homelessness Service 2 Road Markings 2 Road Closure 2 Social Work Reports 2 Leisure Services 2 Public Conveniences 2 Surfacing 2 Cemeteries 2 Education - Attendance Panel 1 Noise Control 1 Civic Amenity 1 Commercial Refuse 1 Building Warrants 1 Road Signage 1 Council Payments 1 Page 114
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Page 7 Annual Complaints Report 2023-24 Appendix 3 3e Top 10 complaint themes, broken down by ward area Theme Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Grand Total Staff Issue - Conduct 16 12 22 13 63 Council Decision 4 45 5 3 57 Education - Treatment of Child 9 7 24 6 46 Social Work Decisions 8 10 16 10 44 Staff Issue - Communication 6 16 8 8 38 Planning Applications 7 14 6 5 32 Council Property/Buildings 1 1 29 31 Education - Other 7 9 7 6 29 Missed Bin 2 12 7 8 29 Council Tax Other 5 10 9 2 26 Grand Total 65 136 104 90 395 *1 entry for unidentified area removed Section 4 – Service breakdown by area and theme Table 4a – Chief Executives Unit, Community Planning and Development Theme Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Grand Total Council Decision 2 2 4 Council Service Error 1 1 Council Tax Other 2 4 2 2 10 Council Tax Portal 1 1 Non Domestic Rates 1 2 3 Staff Issue - Other 1 1 Grand Total 3 4 5 8 20 Page 115
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Page 8 Annual Complaints Report 2023-24 Appendix 3 Table 4b – Education, Legal and Regulatory Support, Commercial Services Theme Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Grand Total Committee/Governance 1 1 2 Council Decision 2 41 1 1 45 Council Property/Buildings 1 1 29 31 Data Protection 1 1 2 Education - Attendance Panel 1 1 Education - Other 7 9 7 6 29 Education - Treatment of Child 9 7 24 6 46 Flooding 1 1 Licensing 1 1 Litter 1 1 Noise Control 1 1 Parking Services 1 1 School Catering 1 1 Scottish Welfare Fund 1 1 Staff Issue - Communication 1 1 Staff Issue - Conduct 1 8 2 11 Staff Issue - Other 2 1 3 Grand Total 22 65 45 46 178 Table 4c – Customer & Support Services Theme Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Grand Total Council Decision 1 1 Council Service Error 1 1 1 2 5 HR Policy/Process 1 1 Parking Services 1 1 Staff Issue - Communication 1 1 2 4 Staff Issue - Conduct 1 1 Grand Total 2 3 4 4 13 Table 4d – Financial Services Theme Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Area Not Identified Grand Total Benefit Payments 1 1 Council Payments 1 1 Council Tax Other 3 6 7 16 Payroll 1 1 2 Staff Issue - Conduct 1 1 Grand Total 5 6 8 1 1 21 Page 116
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Page 9 Annual Complaints Report 2023-24 Appendix 3 Table 4e – Roads & Infrastructure Services Theme Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Area Not Identified Grand Total Cemeteries 2 1 4 7 Civic Amenity 2 1 3 Commercial Refuse 1 1 1 3 6 Council Decision 2 2 1 5 Council Payments 1 1 Council Service Error 2 7 4 5 18 Domestic Refuse Collection 3 13 4 3 23 Drainage 1 3 1 5 Flooding 2 1 3 Ground Maintenance 2 5 1 3 11 Litter 2 2 Missed Bin 2 12 7 8 29 Parking Services 2 6 1 9 2 20 Pavements/Footpaths 2 3 1 6 Piers & Harbours 1 2 3 Pothole 4 1 2 2 9 Public Conveniences 2 4 6 Public Transport 2 2 1 5 Recycling 3 1 3 1 8 Road Closure 2 2 1 5 Road Markings 1 2 3 Road Signage 2 1 1 1 5 Road Works 2 5 1 2 10 School Crossings 1 1 School Transport 2 1 1 4 Staff Issue - Communication 3 2 1 6 Staff Issue - Conduct 9 8 4 8 29 Staff Issue - Other 2 1 3 Street Lighting 6 5 3 3 17 Surfacing 2 2 2 6 Traffic Management 15 4 1 20 Winter Maintenance 5 5 Grand Total 70 99 42 71 2 284 Page 117
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Page 10 Annual Complaints Report 2023-24 Appendix 3 Table 4f – Development and Economic Growth Row Labels Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Grand Total Animal Health 1 1 Building Warrants 1 1 2 Core Paths 2 2 Cost of Council Service 2 2 Council Decision 1 1 Council Service Error 1 1 Dangerous Buildings 2 2 Homelessness Service 2 2 4 Local Development Plan 1 1 Noise Control 1 1 2 Planning Applications 7 14 6 5 32 Private Water Supplies 1 1 Projects, Renewables & Regeneration 1 1 2 Public Conveniences 1 1 Public Health 1 1 2 Staff Issue - Communication 3 9 3 2 17 Staff Issue - Conduct 1 1 Staff Issue - Other 1 1 1 1 4 Grand Total 18 27 15 18 78 Health and Social Care Partnership Table 5a – Area breakdown Service Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Area Not Identified Grand Total Acute and Complex Care 8 3 12 4 27 Children and Families 8 13 16 6 43 Criminal Justice 1 1 1 3 Health and Community Care 11 5 9 7 1 33 Grand Total 28 21 38 18 1 106 Page 118
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Page 11 Annual Complaints Report 2023-24 Appendix 3 Table 5b – Area & Theme breakdown Bute and Cowal Helensburgh and Lomond Mid Argyll Kintyre and the Islands Oban Lorn and the Isles Area Not Identified Grand Total Acute and Complex Care 8 3 12 4 27 Council Payments 1 1 Failure of Care 1 1 1 3 Quality of Care 2 2 Respite 1 1 Social Work Decisions 1 3 1 5 Social Work Reports 1 1 2 Staff Issue - Communication 2 2 1 1 6 Staff Issue - Conduct 1 4 1 6 Staff Issue - Other 1 1 Children and Families 8 13 16 6 43 Council Decision 1 1 Failure of Care 1 1 Quality of Care 1 1 Social Work Decisions 3 7 8 3 21 Social Work Reports 1 1 2 4 Staff Issue - Communication 2 2 4 Staff Issue - Conduct 3 2 5 1 11 Criminal Justice 1 1 1 3 Social Work Decisions 1 1 Social Work Reports 1 1 2 Health and Community Care 11 5 9 7 1 33 Care Funding 1 1 Failure of Care 2 1 2 5 Quality of Care 2 2 1 5 Social Work Decisions 4 3 5 5 17 Staff Issue - Conduct 1 1 1 3 Staff Issue - Other 1 1 2 Grand Total 21 15 12 19 67 Notes 1. The total number of complaints does not exactly relate to the total number of themes reported, as many of the complaints escalated from stage 1 to stage 2 represent 1 theme. Page 119
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ARGYLL AND BUTE COUNCIL Audit and Scrutiny Committee Legal and Regulatory Support 5 September 2024 Information Requests – Annual Report 2023-24 1.0 INTRODUCTION 1.1 This report is to update the Committee on the position regarding the recording, responding to, monitoring and reporting of requests for information under the Freedom of Information (Scotland) Act 2002 (FOISA) and the Environmental Information (Scotland) Regulations 2004 (EIR’s) for the period between 01 April 2023 and 31 March 2024. 2.0 RECOMMENDATIONS 2.1 The Committee consider and note the terms of this report. 3.0 DETAIL 3.1 A total of 1,488 requests for information were received during the period - 1 April 2023 to 31 March 2024 which is a decrease of 7 on the number received in 2022-23. Overall, 92% of requests received this year (1,372) were responded to within the statutory timescale of 20 working days and 116 requests were responded to after 20 working days. These totals include requests for information from the Health and Social Care Partnership (Social Work) and Live Argyll. 3.2 A breakdown by Department and detail around late responses is provided in Appendix 1. 3.3 There were 33 requests for review made during this period, which equates to less than 2% of the total number of requests. 25 were responded to within the 20 working day statutory timescale (76%), and the 8 issued late required more time to gather information and investigate complex issues. 3.4 The overall response rate within timescale has decreased slightly from 94% in 2022/23 to 92% in 2023/24. As the details provided in appendix 1 show, many service areas achieved a high level of performance, between 95-100%. It is helpful to note that 35 responses were sent out on day 21 and 14 sent out on day 22, which if they had been issued on time would have brought the response rate up to 95.5%. The team will have an ongoing focus to try and assist services to avoid responses issued late by only a day or so. In addition, while L&RS are showing as Page 121 Agenda Item 9
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92%, the bulk of those late responses relate to requests that were handled by L&RS but where the information requested related to other services and sometimes multiple services where there has been a delay in the provision of the information. 3.5 Two cases were investigated by OSIC in 2023/24, these are currently ongoing and are awaiting a decision from the Information Commissioner. 3.6 The Compliance and Regulatory team continues to work with Departments to seek to improve response rates where required, and deliver training and provide guidance to allow officers to appropriately respond to information requests. 3.7 The Compliance and Regulatory team provide monthly updates to the Chief Executive, the Chief Officer, Directors, Heads of Service and the departmental FOI reps. Quarterly reports are provided to all DMTs. 4.0 CONCLUSION 4.1 Many Services maintained an excellent performance level throughout 2023/24, and the overall result of 92% of responses issued within timescale is very positive, given the pressures on some service areas where high numbers of information requests were received. 4.2 The Compliance and Regulatory team continues to work with Departments to seek to improve response rates where required, and deliver training and provide guidance to allow officers to appropriately respond to information requests. 5.0 IMPLICATIONS 5.1 Policy None 5.2 Financial None 5.3 Legal Possible breach of statutory requirement to respond to requests 5.4 HR None 5.5 Fairer Scotland Duty: None 5.5.1 Equalities None 5.5.2 Socio Economic Duty None 5.5.3 Islands None 5.6 Climate Change None 5.7 Risk None 5.8 Customer Service The relatively low number of requests for review is indicative that we are responding appropriately to requests and customers are receiving the information they are looking for. 5.9 The Rights of the Child (UNCRC) None Page 122
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Douglas Hendry Executive Director with responsibility for Legal and Regulatory Support 13 August 2024 Policy Lead – Councillor Mark Irvine For further information contact: Iain Jackson, Governance, Risk and Safety Manager 01546 604188 APPENDICES Appendix 1 – Departmental/Service stats & Late Response Details Page 123
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Department / Service Total requests received Responded to in time Responded to late Running in time Running late Overall % 2022/23 2021/22 2020/21 Chief Executives CP&D 1 0 1 0 0 0% 0% 100% - Customer Services Education 175 156 19 0 0 89% 99% 93% 98% L&RS 439 404 35 0 0 92% 97% 98% 97% Commercial 59 59 0 0 0 100% 100% 100% 94% Development and Infrastructure Financial 103 103 0 0 0 100% 99% 97% 95% D&EG 252 228 24 0 0 90% 83% 85% 86% R&IS 248 220 28 0 0 89% 89% 86% 92% Customer 103 98 5 0 0 95% 98% 97% 98% Health and Social Care Partnership IJB 0 0 0 0 0 - - - 100% Adult Care 50 49 1 0 0 98% 97% 99% 100% C&F / CJ 45 43 2 0 0 96% 95% 98% 97% Live Argyll Live Argyll 13 12 1 0 0 92% 80% 100% 80% Totals 1488 1372 116 0 0 92% 94% 93% 94% FOISA and EIR Requests Information Requests - Annual Figures - 1st April 2023 - 31st March 2024 Page 125
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Request No Date Received Date Due Date Closed Duration Subject Late Closure Details 15875 30/05/2023 27/06/2023 03/08/2023 47 Community buyout Late response due to staff absence 16025 29/06/2023 27/07/2023 28/07/2023 21 Gender Identity Emails 16241 21/08/2023 18/09/2023 19/09/2023 21 Daily Mile in primary and secondary schools Response sent 1 day late (19.09.23 / 11:06) 16296 31/08/2023 29/09/2023 02/10/2023 21 Seeking Historical School Closure Data Late response from information provider Response sent in full , 1 day late. 16310 04/09/2023 03/10/2023 04/10/2023 21 Pupil attendance figures Staff Resources Partial response sent 1 day late due to admin time constraints 16458 03/10/2023 31/10/2023 01/11/2023 21 Use of restraint on pupils and exclusion of pupils from class Response sent to Governance Unit within 3 days of due date Draft media response sent to FOI team late afternoon on due date. FOI team received at 3.45pm on due date. Consideration of exemption to be applied had to be considered due to refusal to release some information. Response sent 1 day late. 16412 27/09/2023 01/11/2023 02/11/2023 21 Pupil Equity Funding Staff Resources Clarification requested 03.10.23. Full response (nil) sent 1 day late on 02.11.23 16356 15/09/2023 02/11/2023 03/11/2023 21 Children with ASN who are currently out of formal education Response sent to Governance Unit within 3 days of due date Clarification requested and received 04.10.23 Full media response sent to FOI team 01.11.23 Request queried 01.11.23 and revised response provided to FOI team 03.11.23 16999 24/01/2024 21/02/2024 22/02/2024 21 LGBT Charter Award from LGBT Youth Scotland - Oban High School Late response from information provider Partial response sent 21.02.24 over 6 emails (43 attachments). Final response (copy of 8 emails) on 22.02.24 after office hours. 17043 02/02/2024 01/03/2024 04/03/2024 21 Wait times for school counselling Staff Resources Response sent in full one day late. 16148 26/07/2023 23/08/2023 25/08/2023 22 Special Educational Needs Schools Late response from information provider Response sent two days' late on 25.08.23 16813 15/12/2023 18/01/2024 22/01/2024 22 Schools closed/mothballed in Argyll and Bute Staff Resources Partial response sent two days late on 22.01.24 (after office hours) 17160 26/02/2024 25/03/2024 28/03/2024 23 Incidents of violence, aggression and/or abuse by pupils Late response from information provider Contacted requestor on due date to double- check what data is required for Q3. 16416 28/09/2023 27/10/2023 02/11/2023 24 Exam pass rates by school Staff Resources Clarification requested on timeframe 28/09. Received same day. Partial response sent late on 02.11.23 due to workload. 16931 16/01/2024 13/02/2024 19/02/2024 24 Social media footage Late response from information provider Draft media response sent to FOI team 12.02.24 15876 30/05/2023 27/06/2023 04/07/2023 25 Violence and Aggression Reports Service sign-off delay Will be late due to workload within Data Team. Requestor advised 27.06.23 that response will be sent in July. Draft response sent to FOI team after office hours on 03.07.23 16435 28/09/2023 26/10/2023 02/11/2023 25 Racial Incidents in school Partial response sent 5 days late due to workload. 17161 26/02/2024 25/03/2024 03/04/2024 25 Incidents of school violence were recorded in the school year to date (2023/24). Late response from information provider 16348 13/09/2023 12/10/2023 24/10/2023 28 Minutes from Easdale and Luing PCF/PTA meetings from the last 5 years Service sign-off delay (FOI team will redact docs) Partial response sent 12/10/2023 15649 03/04/2023 04/05/2023 23/05/2023 33 LA Education Budgets Response sent in full 13 days later than AXLR8 date (2 days later than requestor's preferred date). 15669 11/04/2023 10/05/2023 11/05/2023 21 RIDDOR Reports Received by LA Late response from information provider Late response due to Officer workload/competing demands of service. 15975 15/06/2023 13/07/2023 14/07/2023 21 LGBT policies Late response from information provider Information not received until due date, info then had to be clarified and run past press team. 15992 21/06/2023 19/07/2023 20/07/2023 21 Events / meetings that Councilor/ Leader Currie attended and for duration of meetings / events and the costs involved in such meetings Admin Error Late response due to admin error within FOI team, original response from creditors was not passed to Members services to review and complete response. 16138 24/07/2023 21/08/2023 22/08/2023 21 Alcohol Consumption By-Laws Late response from information provider Information not supplied to us by legal until after due date. 16485 09/10/2023 06/11/2023 07/11/2023 21 Details of all council-owned items or possessions that have been stolen in the last two financial years Late response due to staff absence 16826 20/12/2023 23/01/2024 24/01/2024 21 Free school meals expansion Late response from information provider 16835 22/12/2023 25/01/2024 26/01/2024 21 Information regarding operational decisions, violence in the classroom and Freedom of Information requests Service sign-off delay Sent partial response 25/01/2024 awaiting clarification on Q8 16865 05/01/2024 02/02/2024 05/02/2024 21 Social media advertising spending Service sign-off delay 17027 29/01/2024 26/02/2024 27/02/2024 21 Phase 1 Environmental Site Assessment desk study Late response from information provider Partial response, 4 applications of 10(4) (a). Late response from Environmental Health, response received 27.02.24 17319 28/03/2024 01/05/2024 02/05/2024 21 Cloud computing and Sustainability Late response from information provider 10 day reminders sent 23.04. 5 day reminders sent 26.04. Response had to be compiled by Governance, Risk and Safety Manager due to the difficulty in receiving responses from services. 15828 19/05/2023 16/06/2023 21/06/2023 23 Dunivard Road Service sign-off delay 16509 11/10/2023 08/11/2023 13/11/2023 23 Licensing scheme operated by the Local Authority within the terms of the 1982 Act or the 2006 Act. Late response from information provider Partial response sent 08/11/2023. No response from EH 16742 04/12/2023 05/01/2024 10/01/2024 23 School minibuses/ access to school buildings Service sign-off delay 16305 01/08/2023 29/08/2023 04/09/2023 24 Deceased Person's Care records Community Planning & Development Education Legal and Regulatory Support Page 126
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17207 06/03/2024 05/04/2024 11/04/2024 24 Communications & Public Relations Spend Late response from information provider This was a complex request that was delayed initially due to responses coming back from services and then further delayed as Press team were consulting with their Head of Service on response. 17232 11/03/2024 10/04/2024 17/04/2024 25 Property assets 5 reminders sent to legal services for clarification. 1 reminder sent to finance. Clarification sought from Commercial Services received on 10.04.24 16081 10/07/2023 07/08/2023 15/08/2023 26 Acquisition of Land Act 1947 Staff Resources Late response due to staff absences 16593 31/10/2023 28/11/2023 01/12/2023 26 Council's alcohol spend Late response from information provider Confusion and when response was sent to central team - spend for external functions was not supplied. This then had to be collated on due date resulting in late response 15934 06/06/2023 04/07/2023 13/07/2023 27 A list of all the different complaints the council has received over the past 12 months Staff Resources Late due to staff resources within Compliance & Regulatory Support team and the requirement for a report to be built to pull the information from the Complaints system. 15961 13/06/2023 11/07/2023 20/07/2023 27 Total spend on staffing Late response from information provider Late response from HR due to staff resources 16836 22/12/2023 25/01/2024 05/02/2024 27 Translation, Interpretation and language services costs Late response from information provider 17269 15/03/2024 16/04/2024 26/04/2024 28 Community venues 2 reminders and clarification sought from Live Argyll. Information received 15.04.24 2 reminders sent to DIS. Information received 16.04.24 and further information required. 2 reminders sent. Information received from DIS 26.04.24 16042 03/07/2023 31/07/2023 11/08/2023 29 Street Traders- Luss Service sign-off delay Delay in response due to seeking clarity from Legal Services 16523 16/10/2023 13/11/2023 24/11/2023 29 Care experience for children/young persons being looked after by ABC Late response due to staff absence Partial response sent 15/11/23 17199 04/03/2024 03/04/2024 19/04/2024 32 Births, Deaths and Marriages Late response from information provider Partial response sent 02/04/2024. DIS need to do a manual search of the records for the information and this is taking time due to staff resources. 4 reminders sent to DIS performance. Information provided by service on 19.04.24. 16965 17/01/2024 14/02/2024 04/03/2024 33 Education Service sign-off delay Partial response (Section 17 applied) sent to FOI team 04.03.24. Delay due to late responses from schools and information requiring to be double-checked by EMT. 16860 03/01/2024 31/01/2024 23/02/2024 37 Short-Term Let Licensing and Planning Late response from information provider 16618 03/11/2023 05/01/2024 24/01/2024 42 Documents and Communications in relation to Fiona Woodhouse and Lochandhu Kennels Service sign-off delay Sent partial response 04/12/2023 16701 21/09/2023 20/10/2023 22/11/2023 43 Staff responsible for publishing Planning Information Original request not logged as FOI until due date Request originally logged as SAR, however this part should have been logged as FOI and was not picked up until SAR response had been provided 17318 28/03/2024 28/05/2024 07/06/2024 48 Request to do with housing issues Late response from information provider Late response due to receiving the information late form the Services and competing work demands within the services. 16552 18/08/2023 15/09/2023 02/11/2023 53 The boundary of Springbank to the legal boundary of Lochview Original request not logged as FOI 17299 09/02/2024 08/03/2024 21/06/2024 92 Information relating to the upkeep of the lane between Nelson Road and Soroba Road, Oban Service sign-off delay Service sign off delay due to issues trying to identify who owned the land and who maintains it. 15692 06/04/2023 09/05/2023 10/05/2023 21 Independent Advocacy Late response due to staff absence 16058 05/07/2023 02/08/2023 03/08/2023 21 FOI Request - Procurement times Staff Resources 16142 24/07/2023 21/08/2023 24/08/2023 23 Homecare Contracts Late response from information provider 16550 24/10/2023 21/11/2023 22/11/2023 21 Private water supply data Late response from information provider Late response due to competing demands, work priorities. 16930 16/01/2024 13/02/2024 14/02/2024 21 Veterans and homelessness 17037 30/01/2024 27/02/2024 28/02/2024 21 Ardenslate Road 3' LP - land contamination Late response from information provider Re. late response from info provider - it is to be noted that Admin did not send the request to the info provider timeously. 17077 07/02/2024 06/03/2024 07/03/2024 21 People registered as homeless or in temporary accommodation Staff Resources Late due to Team Lead absence, response could not be approved. 16128 20/07/2023 17/08/2023 21/08/2023 22 EH Visits to Asylum Seekers Accomodation Late response from information provider Late response from information provider. 16887 09/01/2024 06/02/2024 08/02/2024 22 The total amount spent by the local authority to house people in temporary accommodation 16984 19/01/2024 16/02/2024 20/02/2024 22 Private Water Supplies Service sign-off delay 16455 03/10/2023 31/10/2023 06/11/2023 24 Cost of processing STL applications Staff Resources Late response due to key staff being on leave and workload pressures. 17083 17/01/2024 14/02/2024 20/02/2024 24 2312-04 - Blairvadach, Argyll & Bute Service sign-off delay 17090 12/02/2024 11/03/2024 15/03/2024 24 Length of time households in temporary accommodation Admin Error 17301 26/03/2024 25/04/2024 01/05/2024 24 Homelessness applications made by people with refugee status or humanitarian protection Staff Resources Procurement Development and Economic Growth Page 127
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15903 31/05/2023 28/06/2023 05/07/2023 25 How much money has your local authority collected in fees from issuing short-term let licenses since October 2022 to May 2023 Service sign-off delay It was not made known until 27th June that the request was not being processed, whereupon it was passed to another information provider for processing 16180 01/08/2023 29/08/2023 05/09/2023 25 The number of licenced dog breeders Admin Error Request not forwarded to Information Provider timeously 16770 06/12/2023 09/01/2024 16/01/2024 25 Disabled Facilities Grants Late response due to staff absence 17093 13/02/2024 12/03/2024 19/03/2024 25 2108-05 - Auch Lodge, bridge of Orchy Late response from information provider 16157 26/07/2023 23/08/2023 31/08/2023 26 Scottish Companion Animal Welfare Group (SCAWG) Admin Error Not processed promptly by Admin 16557 25/10/2023 22/11/2023 04/12/2023 28 Local Access Officers and Rangers Late response from information provider 16183 31/07/2023 28/08/2023 11/09/2023 30 KA SNOW3007/00001 Form 2508 Admin Error Request not circulated timeously by Admin 17215 07/03/2024 09/04/2024 22/04/2024 38 Access to Port Mhor, Colonsay 16782 08/12/2023 08/02/2024 09/02/2024 41 Request under the Environmental Information (Scotland) Regulations 2004 [BURNESSPAULL-ACTIVE.FID48220587] Late response due to staff absence 16190 07/08/2023 04/09/2023 09/10/2023 44 Student Accommodation/Social Housing Service sign-off delay No one took ownership of the cross Service Request 15717 24/04/2023 23/05/2023 30/06/2023 48 Licensing of Lochandubh kennels from 2018 - present 16181 01/08/2023 29/08/2023 10/10/2023 49 Zoo Licensing Act Late signing off by key Admin 17231 11/03/2024 09/05/2024 03/07/2024 79 Largiemore Holiday Estate Otter Ferry, Tighnabruaich PA21 2DH. 10 day reminder sent to planning 29.04.24 Some information received 03.05. Partial response sent 10.05 Update reminder sent 24.05 to Planning 16089 11/07/2023 08/08/2023 09/08/2023 21 Pedestrian Crossing Faults 16258 23/08/2023 20/09/2023 21/09/2023 21 Utilities Work Schedule -Grass Cutting Rhu Late response from information provider Late response due to absence within Amenity Services team. 16590 26/10/2023 23/11/2023 24/11/2023 21 Oban Flood Protection 16560 27/10/2023 24/11/2023 27/11/2023 21 Water Damage Late response due to annual leave. 16810 15/12/2023 18/01/2024 19/01/2024 21 SEND home to school transport Late response from information provider The draft response for review by the communications team was received from the service on the due date. Further clarification was required before review, therefore the response was was delayed. 16838 22/12/2023 25/01/2024 26/01/2024 21 Parking charges Service sign-off delay Delay in sign off from the press team 17277 19/03/2024 18/04/2024 19/04/2024 21 Potholes 17292 22/03/2024 23/04/2024 24/04/2024 21 Waste Management and Recycling Spending Staff Resources Late response due to staffing issues within DIS Performance HQ team. 16200 31/07/2023 28/08/2023 30/08/2023 22 Oil spill of 19th (may not be exact day) May 2022, on A846 Road heading North to Bowmore 300m south of Balliemartin Turn Off Late response from information provider Late response due to resource issues within Roads Ops team. 16286 28/08/2023 26/09/2023 28/09/2023 22 List of Public Bus routes closed within the past 10 years Late response due to staff absence holding e-mail sent 26/09/23 16319 05/09/2023 04/10/2023 06/10/2023 22 Cleaning intervals of drains at the ends of my street namely West Douglas Drive Helensburgh 16364 18/09/2023 17/10/2023 19/10/2023 22 Play parks Late response from information provider 16798 13/12/2023 16/01/2024 18/01/2024 22 Bin collection complaints Late response from information provider Original response was queried by FOI team, therefore the response was delayed by further response from the service. 16863 05/01/2024 02/02/2024 06/02/2024 22 Flood Risk History Request Late response from information provider Late response due to confusion over co- ordinates provided by requester. 17178 29/02/2024 28/03/2024 03/04/2024 22 Tarmac Late response from information provider Late response as we attempted several approaches to try and gather the information. Ultimately this was unsuccessful. 17288 21/03/2024 22/04/2024 24/04/2024 22 Littering Staff Resources Late response due to staffing issues within DIS Performance HQ team. 16912 11/01/2024 08/02/2024 13/02/2024 23 Flood funding over the last decade Late response from information provider 17306 28/03/2024 29/04/2024 02/05/2024 23 Waste sent for incineration Staff Resources Late response due to staffing issues within DIS performance HQ team 16839 22/12/2023 25/01/2024 31/01/2024 24 Ref: Street Light Fault outside 23 Queen Street, Helensburgh: 231007-000044 ( First reported around 7th October 2023 ) Late response from information provider Late response due to absence within streetlighting team. 17249 13/03/2024 12/04/2024 18/04/2024 24 Illegal dumping of rubbish Late response from information provider Late response due to absence of key staff member 16357 15/09/2023 16/10/2023 24/10/2023 26 Parking Infrastructure Late response due to resource issues within Parking Services team 17226 08/03/2024 09/04/2024 17/04/2024 26 Crematoria Late response from information provider late response due to resource issues within Amenity Services team. 17267 15/03/2024 16/04/2024 24/04/2024 26 Drains Staff Resources Late response due to staffing issues within DIS Performance HQ team. 17295 22/03/2024 23/04/2024 02/05/2024 27 Electric vehicle chargers Staff Resources Late response due to staffing issues within DIS performance HQ team 17010 25/01/2024 22/02/2024 05/03/2024 28 Pingo DRT service Late response from information provider Late response due to resource issues within the Public Transport team. 16781 08/12/2023 11/01/2024 24/01/2024 29 Consultation into the preferred option for 'Kilcreggan harbour' Late response from information provider 17214 07/03/2024 08/04/2024 22/04/2024 30 Reference 10656370, regarding the culvert and burn within close proximity of Cardross Road in Helensburgh Late response from information provider Reason for late response - technical difficulties in finding a way to send 252mb of data to requester. 16003 28/06/2023 26/07/2023 21/09/2023 61 Fixed penalty notices Late response from information provider Software issues prevented us from running the reports needed to respond to this FOI. The requester was kept informed. Roads & Infrastructure ICT Page 128
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16243 21/08/2023 18/09/2023 19/09/2023 21 Finance, HR and Payroll Systems Late response from information provider 16167 28/07/2023 25/08/2023 31/08/2023 24 Hosting Contract Late response due to staff absence 16449 02/10/2023 30/10/2023 03/11/2023 24 Alcatel-Lucent Enterprise Late response due to staff absence 15670 11/04/2023 10/05/2023 18/05/2023 26 Hosting Contract Late response due to staff absence 15794 11/05/2023 08/06/2023 16/06/2023 26 ICT Information Late response due to staff absence 16842 27/12/2023 26/01/2024 07/02/2024 28 Care home mortality data Late response from information provider Late response from information provider 16484 09/10/2023 06/11/2023 07/11/2023 21 Foster care retention statistics Service sign-off delay 16777 06/12/2023 09/01/2024 11/01/2024 22 Joint Statement from Cornerstone and A&B HSCP Late response due to staff absence Partial response sent to requestor 8/1/24 for meeting. Final response issued 11/1/24 after staff with the information returned from leave. Some questions refused under section 17. 17117 19/02/2024 18/03/2024 09/04/2024 51 Libraries Children, Families & Justice Live Argyll Adult Care Page 129
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ARGYLL AND BUTE COUNCIL AUDIT & SCRUTINY COMMITTEE FINANCIAL SERVICES 5 SEPTEMBER 2024 AUDIT AND SCRUTINY COMMITTEE ANNUAL REPORT 2023/24 1. SUMMARY 1.1 The purpose of this report is to provide the Chair of the Audit and Scrutiny Committee’s (the Committee) annual overview of the Committee’s activity during the financial year 2023/24 and a summary of key developments since the commencement of 2024/25. It sets out how the Committee has fulfilled its remit and provides assurances to the Council. 2. RECOMMENDATIONS 2.1 Review and endorse the Chair’s Annual Report. 2.2 Agree that the Chair presents the report to a future meeting of the Council at a date to be confirmed. 3. DETAILS 3.1 It is important that the Committee fully complies with best practice guidance on Audit Committees to ensure it can demonstrate its effectiveness as a scrutiny body as a foundation for sound corporate governance for the Council. The Chartered Institute of Public Finance and Accountancy (CIPFA) issued an updated guidance note Audit Committees Practical Guidance for Local Authorities and Police 2022 Edition which incorporates CIPFA’s Position Statement: Audit Committees in Local Authorities and Police. This sets out CIPFA’s view of the role and functions of an Audit Committee. The CIPFA Audit Committees Guidance includes the production of an annual report on the performance of the Audit Committee against its remit for submission to the Council. 4. CONCLUSION 4.1 The Audit and Scrutiny Committee Annual Report 2023/24, which is appended to this report as Appendix 1, provides assurance to full Council over the activity of the Committee. 5. IMPLICATIONS 5.1 Policy: None 5.2 Financial: None 5.3 Legal: None 5.4 HR: None 5.5 Fairer Scotland Duty: None 5.5.1 Equalities: protected characteristics: None 5.5.2 Socio-Economic Duty: None Page 131 Agenda Item 10
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5.5.3 Islands Duty: None 5.6 5.7 Climate Change: Risk: None None 5.8 5.9 Customer Service: The Rights of the Child (NCRC) None None For further information please contact Internal Audit (01546 604108) Paul Macaskill Chief Internal Auditor 5 September 2024 Appendices: 1. Audit and Scrutiny Committee Chair Annual Report 2023/24 Page 132
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1 Appendix 1 - Audit and Scrutiny Committee Chair Annual Report 2023/24 Introduction by the Chair of Audit and Scrutiny Committee This report provides an overview of the Audit and Scrutiny Committee’s (the Committee) activity during the financial year 2023/24 and a summary of key developments since the commencement of 2024/25. In 2023/24 the Committee met quarterly on a hybrid approach with the following as appointed members: Martin Caldwell (Chair) Daniel Hampsey Reeni Kennedy-Boyle Graham Hardie Andrew Vennard Jim Lynch (Vice Chair) Dougie McFadzean Committee meetings were also attended by appropriate representatives of the Council including the Chief Internal Auditor (CIA) and our appointed External Auditors, Mazars. Other Council Officers attend as and when appropriate including the Chief Executive and the Head of Customer Support Services who attends regularly to advise the Committee on issues relating to performance management. Concerns have been expressed about the service experienced by the Council from Mazars, as part of their External Audit appointment, and these have been escalated in order that lessons can be learned for future audit years. It is understood that some of the reasons associated with the service provided to the Council included difficulties in recruiting professional audit staff due to sector shortages, and delays in new staff starting when appointed. Whilst these issues have caused significant inconvenience to officers, particularly within Finance, it is important that appropriate service standards are achieved going forward in order to prevent a repeat of such experiences in 2024/25. In early April of 2024, the Council voted for a change of leadership and subsequently appointed a new Leader and Provost. This also has resulted in previous Committee membership established by the Council to be reset and new appointments to Committees of the Council, including that to the Audit and Scrutiny Committee. This has resulted in only two changes in membership and both individuals received formal training in their respective roles on the Committee. The Council’s Internal Audit section is subject to an independent External Quality Assurance Assessment which is mandatory under the Public Sector Internal Audit standards (PSIAS) every five years. I was pleased to note that the service was deemed compliant in all 14 areas of assessment. This assessment is augmented with annual reviews which are reported to the Committee, and I am again reassured that full compliance has been maintained in 2023/24. It is important that the service provided by Internal Audit maintains the highest standards which helps the Committee in receiving high quality reports for its assurance purposes. Furthermore, this supports the wider governance operating within the Council. I continued to work closely with the CIA and have built up a good and productive relationship which I have no doubt will continue under the Committee’s new Chair. In looking forward to 2024/25 and beyond, significant pressures continue as a result of financial settlements and this has been particularly compounded as a result of Page 133
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2 inflationary pressures, together with the risk of unfunded or partly funded pay settlements and the lack of opportunities to focus funding received to areas where resources may be best used due to ring fencing of specific allocated resources which continues to present a complex backdrop within local government. These pressures are likely to remain and will continue to add an element of uncertainty in relation to the overall financial picture affecting the Council. The Council continues to undertake appropriate medium to long term financial planning using a scenario modelling approach which helps to provide Members with a thorough overview of the implications of funding and cost pressures. I am however satisfied that the Council continues to embrace these challenges in a strategic, capable, and productive manner. Janice Wason Hall – Chairperson Martin Caldwell – Former Chairperson Page 134
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3 1. Audit and Scrutiny Committee’s Effectiveness and Impact 1.1 The Committee’s role is to ensure that the Council’s internal control framework and governance arrangements are operating effectively. In order to fulfil this role a range of reports are provided to the Committee during the year. I am satisfied that the frequency, content and detail of reports provided to the Committee, allow myself and fellow members to adequately fulfil this role. 1.2 In March 2023 Internal Audit presented their annual audit plan, setting out their approach to the 2023/24 audit of the Council and in June 2023 Mazars outlined their planned approach to their work reflecting their statutory duties and risk-based approach. The respective audit plan and approach were considered by the Committee and accepted. 1.3 During 2023/24 the CIA has continued to develop our approach to audit and scrutiny. Particular developments which have furthered the effectiveness of both Internal Audit and the Committee are: • The continued and successful work of the Counter Fraud Team. • The approach to Scrutiny continues to develop and work to complete the ‘Fly Tipping’ review in 2023/24 was concluded. • The CIA engaged with Members of the Committee as part of the planning process for the 2023/24 audit plan. • An external assessment has been undertaken during 2022/23 in terms of compliance with the Public Sector Internal Audit Standards (PSIAS) after a portfolio of evidence has been prepared and submitted. This independent assessment identified that the Internal Audit service was in full compliance with all 14 areas of criteria. This was supplemented by the annual self- review in 2023/24 which confirmed that standards have been maintained to these levels. 2. Assurances Internal Audit Assurance 2.1 Internal Audit is a key source of assurance for both Members and management on the effectiveness of the control environment. The Committee has a responsibility for ensuring that Internal Audit is effective in the provision of this assurance. I am content that the minor amendments made to the 2023/24 audit plan as a result of unavailability of staff and unscheduled work within the Council will be further risk assessed and considered as part of the future audit planning process. I am content with the assurance provided by the CIA that sufficient work has been undertaken to allow him to provide an opinion on the Council’s systems of governance and internal control. Throughout the year, in my opinion, clear assurance judgements are provided, underpinned by an appropriate evidence base and, where appropriate, include sound management advice and guidance. 2.2 The Committee has received regular reports and information from the CIA including: • risk based internal audit annual plan • regular progress reports • annual report, in line with PSIAS, which provided the CIA’s independent annual opinion on the effectiveness of the Council’s risk management, Page 135
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4 internal control and governance processes. 2.3 Exhibit 1 shows an analysis of assurance opinions provided by internal audit in the three-year period 2020/21 – 2023/24. Whilst there have been minor fluctuations year to year, the important trend identified is a fall in audits issued that have been providing limited assurance. In addition, there has been an increase in the number of audits classified as providing a substantial level of assurance in 2023/24, there were none classified as being limited. For these, and all other audit reports, management have accepted 100% of audit recommendations and action plans have been agreed with a robust follow-up system in place with progress presented to the SMT on a quarterly basis and to the Committee as a standard agenda item. Exhibit 1 – Audit Assurances (2021/22-2023/24) 2.4 The Committee has a clear role in relation to oversight of the internal audit function; specifically in relation to overseeing its independence, objectivity, performance and professionalism. I am pleased to advise, as Chair of the Committee, that I am satisfied that Internal Audit is effective and activity is undertaken in accordance with relevant standards. External Audit Assurance 2.5 External Audit is an essential part of the process of accountability and assurance for public funds, providing an independent opinion on the financial statements, and reviewing aspects of governance and financial management. Working closely with Internal Audit, the external audit programme ensures that statutory responsibilities are delivered, without the duplication of audit work. The Council’s appointed external auditors are Mazars. 2.6 The audit of the Council’s financial statements has been substantially concluded and an ‘unqualified’ opinion has been provided. Consequently, this should be a basis of assurance which the Committee can take as part of its duty as those charged with governance. Whilst at the time of writing this report the 2022/23 Trust Funds were still not signed off which is disappointing, we expect these to be presented by Mazars to the Committee in due course. 7 6 3 2 0 8 7 4 1 0 5 8 4 0 0 0 1 2 3 4 5 6 7 8 9 High Substantial Reasonable Limited No Assurance 2021/22 2022/23 2023/24 Page 136
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5 2.7 The Council was subject to a Best Value review in 2019/20 which highlighted that good progress was made by the Council since the last inspection in 2015, specifically the significantly improved relationships amongst elected members and between members and officers and the Council’s sound approach to financial planning. All of these points and actions have now been addressed and a final report was prepared and presented to the Audit and Scrutiny Committee in March 2023. This should provide further assurance that these key issues have been addressed by the Council. Further development in performance and reporting has been introduced and a seminar for the Committee has been arranged in order that the latest position has been conveyed to the Committee which has oversight. 3. Risk Management 3.1 The CIA performs an annual strategic risk register assurance mapping exercise which enables the Committee to assess the levels of assurance it can take over the activity undertaken by the Council to manage its strategic risks. This is complemented by the Chief Executive presenting the Strategic Risk Register to the Committee on an annual basis, to allow the Committee to further scrutinise the approaches being taken to manage risk. 3.2 In 2023/24 a review of Risk Management was undertaken and this provided an audit opinion that a high level of assurance can be taken. This is the highest level of audit opinion and should further provide additional assurance on the Risk Management arrangements within the Council. 4. Independence 4.1 To assist in preserving the Committee’s independence, measures are in place including: • the appointment of an independent chair • observation of the Internal Audit Charter which specifies the independence of the CIA and the wider audit team • the non-political approach of the committee • the active involvement of the external auditors • clear terms of reference aligned to CIPFA’s Role of the Audit Committee Guidance 5. Scrutiny 5.1 During 2023/24 the Committee undertook work on completing the Fly-Tipping scrutiny review as part of our scrutiny plan. This report was presented to the Audit and Scrutiny Committee in March 2024. These and previous reports were well received by the Committee and widened the understanding of the complexities and challenges faced by both staff and the community in specific areas and where these reports will help allow continuous improvement as a Council. 5.2 The benefits of scrutiny are twofold; helping to understand, what can often be multifaceted and procedurally complex issues due to legislation but also to help consider ways to improve and develop to make any processes more understandable and/or streamlined where that is at all possible. 5.3 Scrutiny work will continue in 2024/25, it is anticipated that work will focus on the Councils Complaints processes. This review will commence in late Page 137
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6 autumn of 2024, allowing the new Committee to settle into its role and build up experience in this area of undertaking scrutiny reviews. Going forward Members may wish to start considering potential areas for scrutiny for 2025/26, it is anticipated that potential areas will be collated towards the end of autumn as part of this process. 6. Counter Fraud Team (CFT) 6.1 The Council has an effective CFT having been made permanent after a trial period with both officers having completed the CIPFA (Chartered Institute of Public Finance and Accountancy) Accredited Counter Fraud Specialist Course meaning they are fully accredited counter fraud investigators. This further strengthens the Council’s commitment to protecting the public purse. 6.2 Since the inception of the CFT, regular reporting to the Audit and Scrutiny Committee takes place, and latterly in June 2024, the CFT reported that proactive and targeted work in this area has resulted in a cumulated £1.12M (ending April 2024) being rebilled and that to date £797K (ending April 2024) has been recovered. The ongoing work of the CFT in both recovery and also in its deterrent effect, sends a strong message that the Council will take all reasonable steps it can to identify error and fraud and also take appropriate action to recover monies that are due. Regular reports are presented to the Committee each quarter in relation to the work of both Internal Audit and the Counter Fraud function. 6.3 Local visits throughout Argyll and Bute were undertaken in the year and this will form part of a rolling programme of visits going forward, focusing on maximising the income due to the Council. In addition, the CFT are raising awareness of the Council’s zero tolerance to fraud and this will help act as a deterrent to fraud being perpetrated in the first place. I expect further visits to be equally successful and so far in 2024/25 this has proved to be the case. It is pleasing to note that the ongoing work in relation to counter fraud clearly demonstrates the Council both in its commitment to recovering sums of revenue due through error or fraud but also in the wider context of good governance. 7. External Quality Assurance Assessment – Internal Audit 7.1 The mandatory Public Sector Internal Audit Standards (PSIAS), published in April 2013 and updated in March 2017, apply to all internal audit service providers in the UK public sector. To supplement the PSIAS, and provide specific guidance surrounding its application within a local government setting, the Chartered Institute of Public Finance and Accountancy (CIPFA) compiled a Local Government Application Note, (LGAN) which was updated in 2019. This requires all internal audit providers to have an independent external assessment of these standards in application within their service provision. New Global Standards have been developed which come into effect in 2025 and on the publication of the updated PSIAS, a gap analysis will be undertaken to identify any necessary changes that may be required to be implemented. 7.2 An independent report on the Council’s Internal Audit Service was prepared and presented to the Audit and Scrutiny Committee in March 2023. It is pleasing and reassuring to note that the assessor found that in all 14 areas of Page 138
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7 assessment the Council’s Internal Audit Service fully conforms to the standards. The assessor also identified that the team are highly qualified with a training plan in place to address any skills gaps and that they deliver a high- quality service for the Council which is evident by the questionnaires returned after the completion of each review. 7.3 This was the first time the Council’s Internal Audit Service obtained a fully conforms opinion in all 14 areas of assessment. The independent report demonstrates the importance of having a fully resourced and functioning service which provides assurance to senior management and to those charged with governance responsibilities, specifically, the Audit and Scrutiny Committee. This position should provide substantial assurance to the Council and Members of the Audit and Scrutiny Committee. Annual internal assessments will continue until the next scheduled external assessment in 2028. 8. Looking Forward 8.1 I intimated my intention to stand down as Chair after having held this independent position for over a decade and continued to provide cover until a suitable replacement was found. I was pleased to note that the Council has subsequently identified a new independent Chair to lead the Committee, Janice Wason-Hall, who will take over the role commencing financial year 2024/25 and I wish her every success and enjoyment as I have had in the role. I will be pleased to support that transition and assist the new Chair to settle into her new role. It has also been a pleasure to have worked with our Vice Chair, Councillor Jim Lynch and acknowledge the support he has provided to me in this role. I now wish Jim Lynch every success as he leaves the Committee and takes up the role of Leader of the Council. 8.2 In 2024/25 and onwards the Committee will consider potential options/topics for scrutiny reviews and as a Committee we will continue to implement and further develop our scrutiny approach. 8.3 This focus on continuous improvement is equally applicable to the audit element of the Committee and we will continue to work with the CIA and, where appropriate, our newly appointed External Auditors Mazars, to identify opportunities to further develop the skillset and expertise of both the Committee and the internal audit department to facilitate effective challenge and scrutiny. 8.4 The Counter Fraud Team will continue to focus their resources on specific concerns across the local authority area seeking to recover monies owed and due to the Council in accordance with its policies. 8.5 The Council continue to provide the audit services to the HSCP and were awarded the contract for a period of three years commencing 1 April 2024. A formal service level agreement is in place to reflect the new contract. In 2023/24, a plan of audit coverage was agreed and presented to their Audit and Risk Committee. 8.6 The Internal Audit team are focused, professional and work continues to promote better resilience within the team through the opportunities of professional training schemes and other forms of staff development. This approach fits in well with the Council’s programme of ‘Growing our Own’ in Page 139
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8 order that the Council has skilled workforce for the future and these are retained locally where possible. 8.7 We will continue to provide updates on progress of the CFT and reports will be presented to the Committee as part of the quarterly and annual reporting of the Internal Audit service. 9. Conclusion 9.1 Based on the reports received and reviewed by the Committee, I am in agreement with the CIA’s annual audit report which confirms that reasonable assurance can be placed upon the adequacy and effectiveness of the Council’s internal control system in 2023/24. I am satisfied that active monitoring and follow up of recommendations are in place in respect of agreed management actions. This follow up process is further enhanced by the continuous monitoring programme carried out by internal audit which provides ongoing assurance over the Council’s core transactional based systems. 9.2 The pressures on the Council continue both in the need to balance delivering the services required by our communities but also in the backdrop of challenging financial settlements, economic and socio-demographic changes which are likely to remain for the foreseeable future. The need for a continued strong, independent, resourced and resilient Internal Audit team has never been so important and will be critical going forward in helping the Council to meet these challenges and provide the assurances that are required by the Audit and Scrutiny Committee, senior management and the Council. Page 140
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ARGYLL AND BUTE COUNCIL AUDIT AND SCRUTINY COMMITTEE FINANCIAL SERVICES 5 SEPTEMBER 2024 STRATEGIC RISK ASSURANCE MAPPING 1. EXECUTIVE SUMMARY 1.1 The purpose of this report is to set out Internal Audit's assessment of the sources of assurance for the Audit and Scrutiny Committee (the Committee) on the management of the Council's strategic risks. 1.2 Appendix 1 highlights the overall assessment against each of the strategic risks. It should be noted that the assessment is based on the level of assurance that the Committee can rely on. A 'red' assessment therefore highlights where there are gaps in evidence of active/targeted actions/activity rather than an assessment on the management of that risk. 2. RECOMMENDATIONS 2.1 To note the risk assurance map at appendix 1. 3. DETAIL 3.1 Internal audit has a key role in relation to the Council’s governance to provide assurance over the effective management of risk. 3.2 The Chief Executive presents the Strategic Risk Register to the Committee on an annual basis which provides the Committee the opportunity to scrutinise the register and seek assurance from the Chief Executive that risks are being managed appropriately. 3.3 The CIA is of the view that the cumulative effect of these management arrangements both contribute to positive risk management reporting within Argyll and Bute Council while also maintaining an annual review to provide appropriate overview and update of key emerging issues, which will be reported to the Committee. 3.4 The Public Sector Internal Audit Standards (PSIAS) require that Internal Audit evaluate the effectiveness of the Council’s risk management process. However, it does not state this needs to be an annual exercise. Furthermore it states that Internal Audit may gather the information to support an assessment of the effectiveness of risk management processes ‘during multiple engagements ‘and further states that ‘The results of these engagements, when viewed together, provide an understanding of the organisation’s risk management processes and their effectiveness‘. As such PSIAS does not require a full risk management audit on an annual basis. Additionally, The CIPFA publication “Audit Committees: Practical Guidance for Local Authorities and Police” (2022 Edition) requires the Audit Committee to have the option to consider risk management on a regular basis, regardless of who has operational responsibility for it. That option is always available. Page 141 Agenda Item 11
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3.5 Appendix 1 provides a summary of the Council’s strategic risk assurance map which is based on the ‘three lines model’ (formerly known as the Three Lines of Defence). 1. The first line is the ‘functions that own and manage risks’. It is the control environment established by day to day business operations and risk management processes. It is formed by managers and staff who are responsible for identifying and managing risk as part of their accountability for achieving objectives. This requires an understanding of the Council, its objectives, the environment in which it operates, and the risks it faces. It includes things such as: • identifying risks and improvement actions • implementing controls • reporting on progress 2. The second line is the ‘functions that oversee or who specialise in compliance or the management of risk’. This provides the policies, frameworks, tools, techniques and support to enable risk and compliance to be managed in the first line, conducts monitoring to judge how effectively they are doing it, and helps ensure consistency of definitions and measurement of risk. The Council’s various committees and Strategic Management Team are key functions in delivering this element. 3. The third line of defence is the ‘functions that provide independent assurance’. This is provided by internal audit. 4. Other scrutiny is provided by external regulatory bodies which will include External audit who offer independent challenge and provide an evaluation, through a risk-based approach, on the effectiveness of the Council’s governance, risk management, and internal control. Page 142
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3.6 The table below summarises the assessment against each Strategic Risk. Strategic Risk Risk Score (August 2024) Assurance Assessment 1. Population, external infrastructure and economic decline Red 16 Green 2. Condition and suitability of infrastructure and asset base Amber 12 Green 3. Financial sustainability Amber 12 Green 4. Governance & leadership Amber 8 Green 5. Engagement and understanding the needs of the community Amber 9 Green 6. Service delivery Amber 12 Green 7. Health & Social Care Partnership Amber 12 Green 8. Civil contingency and business continuity arrangements are not effective Green 6 Amber 9. Waste management Red 16 Amber 10. Service delivery – Cyber Security Red 15 Amber 11. Cost of living crisis Amber 12 Amber 12. Impact of climate change Amber 12 Green 13. Lack of housing availability Red 20 Amber 3.7 The assurance map has not identified an area where there may be a concerning mismatch between the level of risk identified and the assurance provided to Committee. 3.8 3.9 3.10 Waste Management has been subject to regular monitoring and update from the service to the Council’s Audit and Scrutiny Committee, with the latest update in December 2023. Additional funding is to be provided from the Scottish Government of £1.5M to support the compliance with the BMW ban. In addition, regular reports are being submitted to and are being monitored by the relevant service Committee of the Council. In relation to ‘Service Delivery – Cyber Security’; work has been undertaken in this area as part of the 2022/23 plan which provided a substantial level of assurance. Going forward two planned reviews will be undertaken as part of the 2024/25 Internal audit plan putting additional audit resources into this area of risk, specifically, Data Security and Information Security as well as the IT Risk Register and Mitigation Processes. However, it is relevant to note that work undertaken in 2022/23 and 2023/24 identified no significant concerns in relation to Cyber Security or Cloud Computing. Whilst this is in part reassuring, there is always a heightened risk to public bodies in relation to this critical area of business activity. The Council declared a Housing Emergency due to the risks associated with the Council, partner agencies and communities being unable to attract and retain working age people due to lack of housing and pricing. A housing summit in collaboration with housing delivery partners was held in December 2023 in order to forge commitments aimed at tackling housing shortage which maximise resources, pursue innovation, coordinate planning and target delivery. Plans are underway to approach this complex and difficult issue at both a national and local level. Page 143
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3.11 The remaining areas, where assurance has been assessed as “amber”, either have audit reviews already undertaken, scheduled or included as part of the ongoing audit planning process. All changes to the Strategic Risk Register from September 2024 will be assessed in the 2025 Assurance Mapping Exercise. 4. CONCLUSION 4.1 This exercise has again confirmed that for the majority of risks in the Council’s strategic risk register there are either sufficient assurances in place or internal audit have scheduled work to fill identified gaps. Nevertheless, it is important to outline that such mitigations and assurances do not alone guarantee that an adverse event or risk will not present itself or materialise. 5. IMPLICATIONS 5.1 Policy – None 5.2 Financial – None 5.3 Legal – None 5.4 HR – None 5.5 Fairer Scotland Duty – None 5.5.1 Equalities – protected characteristics – None 5.5.2 Socio-economic Duty – None 5.5.3 Islands – None 5.6 Climate Change – None 5.7 Risk – The assurance mapping exercise has provided a satisfactory level of assurance that the Council is managing and monitoring its strategic risks effectively 5.8 Customer Service – None 5.9 The Rights of the Child (UNCRC) – None Paul Macaskill Chief Internal Auditor 5 September 2024 For further information contact: Paul Macaskill, Chief Internal Auditor, 01436 604108 APPENDICES Appendix 1 – Strategic Risk Assurance Map Page 144
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APPENDIX 1: Strategic Risk Assurance Map N o Risk Risk Score First Line of Defence Second Line of Defence Third Line of Defence Assessment 1 Population, External Infrastructure and Economic Decline Failure to identify relevant factors contributing to the decline and failure to develop strategies and actions targeting these factors. Red 16 • Service planning linked to Corporate Outcomes and the A&B Outcome Improvement Plan (ABOIP) • Community and multi- agency links through Community Planning Partnership • Parliamentary forum • Argyll, Lomond and Islands Rural Regeneration Initiative • Argyll and the Isles Strategic Tourism Partnership • Promotion and marketing of Argyll & Bute (ABplace2B campaign) • Business Gateway Service focused on helping local businesses grow • Council Leader engaging with leaders of other west coast councils suffering population decline • Economic Strategy and Action Plan monitored by ED&I Committee • CPP report on the progress being made against the outcomes and vision of the ABOIP and issue annual reports. • Monitoring of CPP plan and performance at CPP Management Committee. • Area Community Action Plans progress reported to Community Planning Groups • ABOIP targets population and economic recovery • Performance reports considered by A&SC, strategic committees and area committees External Audit • Best Value Assurance Report (May 2020) highlights Council’s and CPP partners commitment to a shared vision and that they recognise the challenges including the declining and aging population Internal Audit • Planning (2023/24 – (Substantial) Scrutiny • Economic Strategy (2019/20) Future • Rural Growth Deal Outline Business Cases and Final Business Cases being worked on and signing of Full Deal Agreement is expected in September 2024 • UK Shared Prosperity Funding Investment Plan is being actioned as per plan. • Multi-agency approach to refugee settlement underway linking with national processes and agendas.. • The council will continue as a partner of the There is a range of assurance sources across the three lines of defence. Page 145
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Highlands and Islands Regional Economic Partnership and lobby for Government investment to realise economic opportunity and address barriers to future sustainable growth. • Internal Audit Community Education (2024/25) • Short Term Lets (2024/25) 2 Condition and suitability of Infrastructure & Asset Base Infrastructure and asset base does not meet current and future requirements and is not being used or managed efficiently and effectively. Amber 12 • R&A Control Hub and Joint Operations Team • Operational risks monitored quarterly • Strategic Asset Mgt Board • Corporate Asset Management Strategy and Corporate Asset Management Plan • Service Asset Management Plans • Community Empowerment and Community Asset transfer arrangements in place • Roads Asset Management Plan • One Council Property Approach • Routine inspections of roads infrastructure to deal with potential weak areas • Revised capital management procedures Future • D&I performance reporting to ED&I Committee • Asset Mgt Plans reviewed annually by Council as part of the budget setting process • Status and Options reports to ED&I Committee Internal Audit • Community Empowerment Act (2018/19 - High) • Capital Monitoring (2020/21 - Substantial) • Management of Property Contracts (2020/21 - Reasonable) • Land & Asset Disposal (2021/22 - Substantial) • Internal Audit – Fixed Asset Register (2021/22) – Reasonable) • Piers and Harbours (2023/24 – Reasonable) Scrutiny • Roads Maintenance (2018/19) • Scrutiny – Community Asset Transfers (2021/22) Future • Leasing - Estates (2024/25) • Asbestos Management (2024/25 • Roads and Flood Prevention (2024/25) There is a range of assurance sources across the three lines of defence. Page 146
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• Modern Workspace Programme to review, and rationalise property portfolio for future needs of the Council. Changes on phased and town by town basis. Programme will be running for 3 years - April 2024 • Bridges Asset Management Plan and Inspection Regime (2024/25) 3 Financial Sustainability Insufficient resource to meet current and future service requirement. Budget not aligned / does not support business outcomes. Amber 12 • Budget preparation and monitoring • Medium term financial strategy with worst case, mid case and best case scenario planning • Treasury Mgt Policy • 5 year budget outlook updated quarterly • Financial Services Team aligned to service delivery • Regular engagement between budget holders and appointed finance contact • Reserve balances monitored throughout year • Financial monitoring and financial risk monitoring to P&R/BCC Committee • Budget and budget working papers considered by full Council • Financial Strategy reported to P&R Committee • 5 year budget outlook to P&R Committee • Treasury Mgt Annual Report to P&R Committee and A&SC • Joint SMT/Policy Leads meetings include discussions around financial issues Internal Audit • Continuous Monitoring • Financial Planning (2018/19 - Substantial) • Capital Monitoring (2020/21 - Substantial) • Internal Audit – Fixed Asset Register (2021/22) – Reasonable) • Internal Audit – Management of Debt and Recovery (2022/23) – Reasonable • Internal Audit – Financial Ledger (2023/24- Substantial) External Audit • Assessment of financial mgt via annual audit • Best Value Assurance Report (May 2020) highlights Council has good financial planning arrangements in place but could take steps to enhance its long-term strategy. (Strategy revise in 2021) • Assessment of budget There is a range of assurance sources across the three lines of defence. Page 147
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monitoring arrangements Future • Internal Audit – NDR (2024/25) • Rural Growth Deal Outline Business Cases and Final Business Cases being worked on and signing of Full Deal Agreement is expected September 2024. • Consider the implications and opportunities from the Visitor Levy (Scotland) Bill which could generate additional income from 2026/27. 4 Governance and Leadership Governance and leadership arrangements are not conducive to effective working and lead to a lack of strategic direction. Amber 8 • Corporate Governance Improvement Plan • Ongoing member development • Mentoring and coaching for SMT • Leadership development programme • Chief Exec Bilaterals • A&B Manager’s Course • Established partnership governance • Effective internal audit function • Scrutiny function • Performance Improvement framework • Council constitution • Oversight provided by Audit & Scrutiny Committee • Decision making committees open to public • Constitution updated and approved annually by Council • IA reports and follow up to DMT and SMT • Annual assurance statements • Fortnightly DMTs – weekly ELT and monthly SMTs Internal Audit • Continuous Monitoring • Organisational Culture (2018/19) • Performance Mgt (2018/19 - High) • Member Support (2018/19 - Substantial) • Risk Mgt 2018/19 – Substantial) • Following The Public Pound (2019/20 - Reasonable) • Annual self-assessment of PSIAS – external peer review every 5 years • Formal Induction of new Audit and Scrutiny Committee Members 2022 • Risk Management (2023/24 - Substantial) There is a range of assurance sources across the three lines of defence Page 148
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• Codes of conduct for staff and members • Code of Corporate Governance and Annual Action Plan • Scrutiny framework and scrutiny plan • Risk management embedded • Policy lead meetings • Area Committee Business Days External Audit • Ongoing independent assurance reported in AAR • Best Value Assurance Report (May 2020) recognises improvements in relationships between members and senior officers and more constructive and focused decision making Future • Scheduled reviews of Risk Management every two to three years. • Connect for Success priorities now form the basis of new corporate improvements and are being delivered. • Review of governance arrangements being undertaken with new administration to consider ongoing suitability of arrangements. 5 Engagement and Understanding the needs of the Community The Council fails to understand service user needs and emerging demographic trends and does not align service delivery to meet these. Amber 9 • Annual budget consultation • Complaints process • Community Engagement Strategy • Customer Service Board • Various user feedback (i.e. Refugee Resettlement, commissioned • Community Planning Partnership • Service Committees • Area Committees • DMT and SMT Internal Audit • Community Empowerment Act (2018/19 - High) • Complaints Handling (2021/22 – High) • Customer Service Centre (2022/23 – High) Other Agencies • Education Scotland and Care Inspectorate seek views of service users There is a range of assurance sources across the three lines of defence Page 149
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services, community council surveys) • Parental engagement strategy • Outreach service • Democracy matters consultation • Development Mgt user forums External Audit • Best Value Assurance Report (May 2020) highlights that Council has made good progress with the Community Empowerment Act, and regular monitoring in relation to all other outstanding issues have been closed after regular and detailed report to the Audit and Scrutiny Committee until June 2023. Scrutiny • Scrutiny – Community Asset Transfers (2021/22) • Scrutiny – Community Engagement (2022/23) Future • A cross service working group has been developing a community engagement framework, based on self-assessment, best practice, and employee consultation. The outcomes have been agreed by ELT and the framework is scheduled to be approved by P&R on 5 December 2024. (2024/25) Page 150
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6 Service Delivery Insufficient resources to ensure effective service delivery Amber 12 • Performance Improvement Framework • Rolling out programme of service self- assessment • Service improvement plans • Workforce planning • Complaints process • Use of LGBF • Strategic Plans with Success Measures aligned to Business Outcomes • Performance Improvement Officers • Performance reporting to A&SC, Service Committees and Area Committees • LGBF Review to A&SC, Service Committees and Area Committees • Self-Assessments reported to SMT and A&SC Internal Audit • Performance Mgt (2018/19 - High) • Complaints Handling (2021/22 – High) • IA annual plan is risk based but also designed to provide annual coverage of all Heads of Service • Internal Audit review of Human Resources (2023/24 – Substantial) External Audit • Best Value Assurance Report (May 2020) highlights that there is limited evidence of the Council using performance information to drive improvement and that Council’s performance reporting makes it difficult to conclude what progress has been made against its six corporate outcomes. This has now been fully addressed by the Council and a final report was presented to the Audit and Scrutiny Committee in March 2023 and all actions signed off as complete. Future • Review of Council’s Performance Mgt Framework being carried out by Customer Support Services and implementation of scheduled reviews. There is a range of assurance sources across the three lines of defence. Page 151
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7 Health and Social Care Partnership Failure of the HSCP to deliver on its Strategic Priorities results in deteriorating health and wellbeing outcomes for the population and / or reduced access to appropriate health and social care services. This could also result in financial and reputational risk to the Council. Amber 12 • Strategic Plan • Integration Scheme • IJB has elected member representation including Council Leader • Elected member representation on IJB Audit Committee (inc Vice Chair) • Council’s CIA regularly attends IJB Audit Committee • Regular engagement between Council CFO and HSCP CFO • Performance and financial monitoring and reporting in place and reported to IJB Board • HSCP Chief Officer sits on Council’s ELT Internal Audit • The IJB has their own IA function provided by the Council’s IA function (Contract started 1 April 2021) • Council’s IA function also provide assurance over social work services on an annual basis • Internal Audit - Charging for Non-Residential Services (2020/21 – Substantial) • Child Protective Services (2021/22) • Care Programme Approach (2021/22) • Complaints handling (2021/22 - Limited) • Workforce Planning (2021/22) • Client Funds (2022/23 – Limited) • Learning and physical Disabilities Care Packages (2023/24 - Substantial) • Client Funds (2023/24 - Reasonable) • SSSC Registration (2023/24 - Substantial) External Audit • IJB’s external auditors are Mazars. Future Internal Audits • External Placements (2024/25) • Eclipse System Post Implementation (2024/25) There is a range of assurance sources across the three lines of defence Page 152
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8 Civil Contingency & Business continuity arrangements are not effective. Green 6 • Critical activity recovery plans • Emergency planning test events • West of Scotland local resilience partnership • Community resilience plans • EU withdrawal tactical group • Emergency Mgt Support Team • EU tactical group progress reported to SMT Internal Audit • Business Continuity (2019/20 - Reasonable) • Internal Audit - Disaster Recovery Planning (2020/21 - Limited) • Internal Audit – Civil Contingencies (2021/22- Substantial) Future • The new BCM system has been procured and configured and a pilot project to test the system and the process is underway with 3 service areas, Procurement, Customer Engagement and Transformation Management and Residential (Care Home Services). Once the outputs form the pilot have been reviewed and the system goes live, all services will be required to complete a Business Impact Analysis, which will inform the basis for having a business continuity plan in place. This is expected to be completed by 31 March 2025. Moderate third level of defence assurance at current time. A project has commenced to review business continuity processes, covering critical activities and testing of CARPS. This is an area that will merit a follow up audit in the medium term future. However assurance can be taken from the Council’s response to COVID which was fast paced and has proven to be effective. 9 Waste Management Unable to dispose of waste in landfill sites due to the implications of the biodegradable municipal waste (BMW) landfill ban in 2021 Red 16 • Council rolling out new waste strategy • Using education and publicity to increase recycling • Performance reporting to EDI Committee • Progress monitoring by DMT and SMT Internal Audit • Waste Mgt (2018/19 - Limited) Scrutiny • Waste Mgt Strategy (2020/21) - On 27 April 2021 the Head of Roads and Infrastructure Services provided a presentation to Assurances over this risk are currently moderate due to the Council’s Waste Strategy being in its infancy and the full impact of the BMW ban still to Page 153
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the A&SC regarding the Council’s Waste Strategy followed by a question and answer session. Following the presentation the A&SC members agreed they were assured that appropriate progress was being made in relation to the Council’s waste strategy and that inclusion of a specific scrutiny topic focusing on the Strategy would not add value at this time. • A briefing note was requested by the A&SC in June 2022 relating to Waste Mgt and was presented by the HoS in September 2022. • A briefing and update report was presented to the A&SC in December 2023 by the HoS. Future • Confirmation received from the Scottish Government that £1.5m has been made available to support the compliance with the BMW Ban. • Ongoing workshop sessions to scope out and design future disposal models across all the council area. These models to be in place from 01/01/2026 in line with the BMW requirements. be realised, although now, in part mitigated by additional funding. However full implementation is not till 2026. The A&SC determined they are content that progress is reported to the EDI Committee and that the A&SC will maintain a watching brief. Page 154
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10 Service Delivery - Cyber Security Unable to deliver services to customers because of failure of ICT systems following major cyber security breach Red 15 • ICT Security & compliance officer in post, producing weekly threat analysis. • Regular patching regimes in place • ICT Disaster recovery plans tested regularly • Critical activities have recovery plans developed (CARP’s) • Progress monitoring by DMT and SMT Internal Audit • Business Continuity (2019/20 - Reasonable) • Disaster Recovery Planning (2020/21 - Limited) • Internal Audit – Cyber Security (2022/23 - Substantial) • Cloud Based Services (2023/24 - Substantial) Other Agencies • PSN and Cyber Essentials Plus accreditations for corporate network (doesn’t cover education network) Future • Internal Audit – Data Security and Information Security (2024/25) • IT Risk register and Mitigation Processes (2024/25) Moderate third level of defence assurance at current time. A project has commenced to review business continuity processes, covering critical activities and review/testing of CARPS. This is an area that will merit a follow up audit in the medium term future. 11 Cost of Living Crisis The Council are unable to respond to the implications arising from the 'Cost of Living' crisis Implementation of welfare reform is not managed well resulting in increased poverty and deprivation or short Amber 12 • Financial stability and support to HSCP. • Social Welfare and Poverty Funding assistance. • Focused support and multi-agency approach where risk is highlighted. • Monitoring of trends in service use to high light any significant change as a result of financial hardship • Targeted measures - for example to those • Progress monitoring by DMT and SMT • WRWG report to SMT • SMT monitor of risk and consider high and medium hardship cases • Anti-poverty strategy approved by Council • Child poverty action planning monitored by WRWG Internal Audit • HB & CTR (2018/109 – Substantial) • Internal Audit - Scottish Welfare Fund (2020/21 - Substantial) • Internal Audit - Welfare Rights (2020/21 - Substantial) Other Agencies • Focused support and multi-agency approach where risk is highlighted There is a range of assurance sources across the three lines of assurance in respect of welfare reform. However, Limited third tier assurance in respect of ‘Cost of Living Crisis but significant evidence of pro- active measures and support. Page 155
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term crisis. receiving Council Tax reductions - via Gift Cards and Flexible Food and Fuel Fund. • Financial Inclusion and Advice Group established. • Joint working with DWP, CPP and other agencies. • Flexible Food Fund created. Supporting householders in our area with funds and advice to address food and fuel insecurities. • Child Poverty Planning Group set up and active. Future Actions • Extend flexible food and fuel fund to March 2025. • Supporting the Poverty Alliance in their Tackling Rural Poverty project, observing its progress and considering outcomes as they emerge. • Preloved School Clothing Bank operating across Argyll and Bute. However assurance can be taken from the Council’s response to COVID which was fast paced and has proven to be effective. 12 Impact of Climate Change The Council or communities are overwhelmed by severe or more frequent flooding, landslides, rainfall, storms, sea level changes or hot weather events due to changes in global temperature caused by climate change. Amber 12 • Continued delivery of Council De- Carbonization Plan • Civil Contingencies Manager liaising/ collaborating with Regional Resilience Partnerships and other resilience partners in terms of storm event, hot weather events, cut off communities, landslides etc. • Development and delivery of an integrated approach to decarbonisation and adaptation of Argyll and Bute as a Region via Community Planning Partnership. • Roads & Amenity Services continue to develop asset management plan and • Progress monitoring by DMT and SMT Internal Audit • Climate Change Act (2021/22 - High) • Internal Audit – Civil Contingencies (2021/22- Substantial) Future Actions • Review of De-Carbonisation Plan December 2024. • Review scoring of business cases and pipeline of strategic projects with enhanced climate change considerations. There is a range of assurance sources across the three lines of defence Page 156
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address strategic risks in terms of rising sea levels, bridge repairs, and critical infrastructure vulnerability. 13 Lack of Housing Availability The Council, partner agencies and communities are unable to attract and retain working age people due to lack of housing and pricing Red 20 • Council has declared a Housing Emergency • Housing Strategy and Investment Plan funded and implemented/new housing delivery group established. • Islands Programme Award of Funding for infrastructure for worker accommodation on Mull - this is for phase 1 site infrastructure to enable delivery of accommodation for workers and will meet clearly evidenced community need. • Progress monitoring by DMT and SMT Future • Housing summit held in November and Action Plan being continually monitored/updated. • Updates to the Local Housing Strategy will reflect the Council's Housing Action Plan and will be reported to Council in November 2024. Limited third level of defence assurance at current time as it is a new item on the Strategic Risk Register. However, pro- active work is planned with partner agencies and review of the Housing Strategy. Page 157
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ARGYLL AND BUTE COUNCIL AUDIT AND SCRUTINY COMMITTEE CHIEF EXECUTIVE 5 SEPTEMBER 2024 STRATEGIC RISK REGISTER 1.0 INTRODUCTION 1.1 This report provides members with an update on the Council’s Strategic Risk Register (SRR). 2.0 RECOMMENDATIONS 2.1 It is recommended that the Audit and Scrutiny Committee endorse the updated SRR (Appendix 1). 3.0 DETAIL 3.1 The Council’s Constitution requires the Chief Executive to attend one meeting of the Audit and Scrutiny Committee per annum to report on how the Council is addressing its key strategic risks and other matters of interest. Paul Macaskill, Chief Internal Auditor (CIA) will present the update on behalf of the Chief Executive. 3.2 The new format of the SRR and the Operational Risks Registers (ORR) and the associated processes to monitor and update them were revised. These are subject to regular internal audit review which has confirmed compliance with these procedures. 3.3 The Council’s SRR continues to be updated by the SMT on a bi-annual basis on dates agreed with the CIA however it will also be updated if and when the Strategic Management Team (SMT) feel there is a specific requirement. 3.4 As required by the revised risk management manual, the SMT also review all risks in the ORRs which have been classified as ‘red’ by the Departmental Management Teams (DMT) to determine whether they should be escalated to the SRR. 3.5 The CIA performs an annual strategic risk register assurance mapping exercise which enables the Committee to assess the levels of assurance it can take over the activity undertaken by the Council to manage its strategic risks. This, alongside the annual Internal Audit plan including a three year cycle providing audit coverage across all the identified risks, provides assurance that the Council continues to proactively manage its risks. Page 159 Agenda Item 12
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3.6 Appendix 1 to this paper provides a copy of the current SRR and demonstrates how the Council are treating the identified risks in terms of the mitigations currently considered to be in place and the action being taken to further reduce the residual risk. 4.0 CONCLUSION 4.1 The SRR is subject to regular review by the SMT as are the red risks highlighted in ORRs by the DMTs. Risks are actively managed to reduce their impact upon the Council and the likelihood of them being realised. 5.0 IMPLICATIONS 5.1 Policy – Internal Audit continues to adopt a risk based approach to activity 5.2 Financial –None 5.3 Legal –None 5.4 HR – None 5.5 Fairer Scotland Duty – None 5.5.1 Equalities – protected characteristics – None 5.5.2 Socio-Economic Duty – None 5.5.3 Islands – None 5.6 Climate Change – None 5.7 Risk – None 5.8 Customer Service – None 5.9 The Rights of the Child (UNCRC) – None Pippa Milne Chief Executive 5 September 2024 For further information please contact: Paul Macaskill, Chief Internal Auditor (01546 604108) Appendices: 1. Strategic Risk Register Page 160
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NEXT REVIEW DATE January 2025 Imp Like Sc Imp Like Sc 1 Population, External Infrastructure and Economic Decline Failure to identify relevant factors contributing to the decline and failure to develop strategies and actions targeting these factors. Our Economy is diverse and thriving Population decline reduces available funding impacting on Councils capacity to deliver services. A circle of decline with reduced employment, lower earning and failing businesses and poor perception of the area. Combined population and economic decline may increase the need for and cost of services. Insufficient people of working age with appropriate skills and experience to fill vacancies across CPP. Residual impact of withdrawal from EU. A continued trend of underinvestment in critical economic infrastructure will make our area increasingly uncompetitive as a place to live, work and do business. This includes transport and infrastructure needs (physical and digital). Without tackling infrastructure (including roads, ports, ferries, grid, business space, utilities, housing etc.) investments across Argyll and Bute, there are significant barriers to growing the local economy, attracting people, external investment and individual entrepreneurship. 5 4 20 1. Local outcome improvement plan targets population, infrastructure and economic recovery. 2. Maximise external funding opportunities. 3. New Economic Strategy approved at the June EDI Committee. 4. Rural Growth Deal reaching full deal status in September 2024. 5. UK Shared Prosperity Funding Investment Plan agreed covering 2022/23 to 2024/25. 6. AB Place to B/Promote and Market Argyll and Bute. 7. Taking a place based approach to regeneration including maximising social-eco benefits/community wellbeing via effective procurement strategy, development of the circular economy and partnership working across sectors. 8. Invest in Argyll and Bute website established. 4 4 16 Treat 1. Lobbying activity in pursuit of regional immigration policies and related strategies. 2. Rural Growth Deal Outline Business Cases and Final Business Cases being worked on and signing of Full Deal Agreement is expected in September 2024. 3.Levelling Up Partnership status confirmed - projects up to the value of £20m to be developed for delivery in 2025. 4. UK Shared Prosperity Funding Investment Plan is being actioned as per plan. 5. Preparation of a pipeline of projects across Argyll and Bute in order to be able to react to any other bid funding as and when it is announced. 6. Multi-agency approach to refugee settlement underway linking with national processes and agendas. 7. The council will continue as a partner of the Highlands and Islands Regional Economic Partnership and lobby for Government investment to realise economic opportunity and address barriers to future sustainable growth. 8. The council working with HIE will deliver a smart action plan for the new Economic Strategy. Jun-24 Kirsty Flanagan 2 Condition and suitability of Infrastructure & Asset Base Infrastructure and asset base does not meet current and future requirements and is not being used or managed efficiently and effectively. Our Infrastructure supports sustainable growth Infrastructure and asset base does not support or is not aligned to business outcomes and does not aid effective service delivery. Infrastructure and asset base is allowed to deteriorate resulting in cost, lost opportunities and wasted resource. 5 5 25 1. Capital Investment Board oversight of implementation of Capital Investment Strategy. 2. Robust capital planning and monitoring. 3. Asset management work plan. 4. Business case modelling including sustainability, development and strategic change. 5. Intelligence and best practice sharing via Heads of Property Group. 6. Community Empowerment and Community Asset Transfer – Arrangements in place to evaluate and determine requests. 7. Roads Asset Management Plan and Status and Options Report. 8. RIS Review Project Board. 9. One Council Property Approach. 10. Continuing with successful bids for external funding. 4 3 12 Treat 1. Development of finalised capital strategy in 2023. 2. 'Modern Workspace Programme' will review, engage and rationalise property portfolio for future needs of the Council. Changes will take place on phased and town by town basis. Programme will be running for 3 years - April 2025 3. Project Manager from PPMS appointed to take forward development and implementation of programme. Lochgilphead, Islay and Dunoon identified as priorities. Interim solution for Lochgilphead will be in place in Q4 FY23/24 to provide maintenance facility for larger vehicles). Jun-24 Kirsty Flanagan and Douglas Hendry 3 Financial Sustainability Insufficient resource to meet current and future service requirement. Budget not aligned / does not support business outcomes. Enablers Unable to deliver Local outcome improvement plan. Reduction in performance. Reputational damage. 4 4 16 1. Longer term financial planning and financial strategy. 2. Income generation activity. 3. Robust budget preparation and budget monitoring protocols. 4. Maintaining adequate contingency with reserves. 5. Digital transformation. 6. Effective workforce planning model. 7. Business Outcomes. 8. Financial Services resilience building project including knowledge sharing and development of guidance notes. 4 3 12 Treat 1. Rural Growth Deal Outline Business Cases and Final Business Cases being worked on and signing of Full Deal Agreement is expected September 2024. 2. Investment in professional training through Grow Our Own Activity. 3. External reviews of major budget areas e.g. RIS, education. 4. Consider the implications and opportunities from the Visitor Levy (Scotland) Bill which could generate additional income from 2026/27. 5. Completion of external review of Roads and Infrastructure Services stages 2 - 4 should realise savings for future years. 6. A review of Education to commence on a similar basis as the RIS review. Jun-24 Kirsty Flanagan 4 Governance and Leadership Governance and leadership arrangements are not conducive to effective working and lead to a lack of strategic direction. All Corporate Outcomes Poor decision making, lack of strategic direction. Lack of operational direction. Confidence in, and reputation of, the Council harmed. Deterioration in performance. 4 4 16 1. New Council Administration in place with working majority. 2. Development sessions for new Administration to cover areas such as being effective leaders, strategic thinking and working with officers. 3. Working with Policy Leads to provide support and development opportunities. 4. Continued programme of Member Seminars. 5. Progressing with programme of Member Development including 1:1 conversations. 6. New Administration working on an updated set of priorities to be agreed by Council. 7. Corporate Plan sets out objectives. 8. Performance Improvement Framework and Service Planning. 9. Leadership development programme. 10. Council constitution regularly reviewed and updated. 11. Established partnership governance arrangements. 12. Scrutiny arrangements in respect of Police, Fire and Health. 13. Governance arrangements for scrutiny established. 4 2 8 Treat 1. BV Action plan complete and remaining actions mainstreamed. 2. Connect for Success priorities now form the basis of new corporate improvements and are being delivered. 3. Pilot self-assessments have been completed and guidance is being updated to reflect learning. 4. The Performance Excellence Project Phase 1 is complete and phase 2 is reviewing the Performance and Improvement Framework. 5. Leadership Development Programme Commenced in March 24 with 360 degree assessments and initial coaching sessions now underway. 6. Review of governance arrangements being undertaken with new administration to consider ongoing suitability of arrangements. Jun-24 Pippa Milne 5 Engagement and Understanding the needs of the Community The Council fails to understand service user needs and emerging demographic trends and does not align service delivery to meet these. People live active, healthier and independent lives Enablers Prioritisation of services may not be aligned to community needs. Gaps between community needs and Council services. Ineffective partnership working. Services not configured to meet user/citizen requirements. 3 4 12 1. Community Planning partnership has agreed new Argyll and Bute Outcome Improvement Plan based on demographically representative consultation exercise and governance arrangements are currently being refreshed to ensure a focus on action with suitable representation from partner organisations and Area Community Planning Groups. 2. Community Engagement Strategy to be supported by clear framework and guidance as developed by the Community Engagement Group. 3. Customer Service Board. 4. Operation and development of panels and forums. Young people’s plan, citizens panel. 5. Budget Consultation . 6. Comprehensive Complaints Protocols. 7. Demographic and end user analysis. 3 3 9 Treat 1. A working group has been established to review our approach to Community Engagement and to develop a Framework. The group has developed a terms of reference and is in the process of carrying out a self-assessment to identify strengths and areas for improvement. Early indications are that we have areas of excellent practice, but a lack of consistency across services. A series of draft outcomes have been identified and an action plan is under development. A collaborative space for sharing engagement activity is being developed. Updates will be reported via Highlight Reports to the Change Programme and to SMT. 2. Approach to area plans currently being reviewed to reflect the priorities of the new administration. 3. Analysis of latest census data being undertaken to inform future strategic activity. Report to Council anticipated in September. Jun-24 Pippa Milne 6 Service Delivery Insufficient resources to ensure effective service delivery. Enablers Services fail to achieve agreed performance levels and as a result are not contributing fully to Council objectives. Resources are poorly managed with result that agreed outcomes and objectives are not fully achieved. Unable to achieve continuous improvement and improve effectiveness and efficiency. 4 4 16 1. Performance Improvement Framework. 2. Service Improvement plans. 3. Argyll and Bute Manager programme. 4. Customer needs analysis Protocols. 5. Demographic and end user analysis. 6. Workforce Planning . 7. Internal and External Scrutiny Arrangements. 8. Complaints process. 4 3 12 Treat 1. Monitor progress of performance mgt project and implement recommendations - implementation in 2023/24. 2. Completion of external review of Roads and Infrastructure Services should generate opportunities and savings during 2024/25 with further savings realisable in future years. 3. A review of Education to commence on a similar basis as the RIS review. Jun-24 Kirsty Flanagan and Douglas Hendry 7 Health and Social Care Partnership Failure of the HSCP to deliver on its Strategic Priorities results in deteriorating health and wellbeing outcomes for the population and / or reduced access to appropriate health and social care services. This could also result in financial and reputational risk to the Council. People live active, healthier and independent lives Partnership viewed as having failed or not achieved strategic objectives. Partnership Failure or weakness exposes Council to significant Financial liability. Confidence in, and reputation of, the Council harmed. Unclear repercussions of financial and staffing effects of the implementation of the National Care Service on the Council and HSCP. Residual Covid-19 implications for ongoing health and social care services. 5 4 20 1. HSCP integration scheme approved by Scottish government. 2. Strategic Plan in place. 3. Performance and Financial reporting arrangements in place. 4. Independent audit arrangements in place. 5. Integrated Joint board with elected member representation including Council Leader. 6. Chief Officer member of ABC Senior Management Team with co-location of officers. 7. Tripartite leadership agreement. 8. Monitoring and improvement of HSCP financial position. 9. Medium term Financial Plan in place. 10. Establishment of Strategic and Tactical Groups with links to HSCP, NHS and national/regional resilience groups. 4 3 12 Treat 1. Develop options to deliver sustainability of future years budgets (ongoing). 2. Develop a longer term Financial plan and implement the value for money strategy. 3. Assessment of the financial implications on the Council of services transferring to the NCS when plans are sufficiently developed to enable this. 4. Progression of Service Transformation work, Estates Strategy and long term strategic service development with Hub North. 5. Implementation of the workforce strategy. 6. Remobilisation of services post Covid and improved performance management and reporting processes. Jun-24 Fiona Davies and Pippa Milne Residual Risk Approach Key Actions and Deadlines Last Reviewed Risk Owner STRATEGIC RISK REGISTER No Risk Corporate Outcome Consequences Gross Risk Current Mitigation Page 161
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8 Civil Contingency & Business continuity arrangements are not effective. People live in safer and stronger communities Ineffective management of major emergencies affecting Council services and communities in Argyll and Bute. Incident and recovery phase of an emergency lead to greater inconvenience and hardship and a longer timescale for return to normal. Council unable to effectively deliver its own services. 2 4 8 1. Emergency Planning Test events. 2. Critical Activity Recovery Plans. 3. Roll out of Community resilience partnership programme. 4. Peer review of major exercises undertaken to provide external validation of planning process. 5. West of Scotland local resilience partnership. 6. Cross sector expertise and partnership working. 7. Emergency Management Support Team (EMST) meetings. 8. Training. 9. EU Withdrawal Tactical Working Group with arrangements for reporting to the West of Scotland Resilience Partnership. 2 3 6 Treat 1. The Council’s critical activity recovery plans (Carps) are reviewed annually. The project for the review of Business Continuity processes within the Council is underway and will include a review of the Council’s critical activities and the potential for a software solution which would automate processes and provide a more efficient an effective service and ensure greater resilience for the Council. When the project is completed in 23/24 it will include a programme of testing of the updated Carps. Date 31 March 2024. 2. Review of BC processes has resulted in introduction of new BCM system which will allow more automation and oversight of plans and review of critical activities with an enhanced ability to test these. The new system is expected to be procured by 31 March 2024. The new BCM system has been procured and configured and a pilot project to test the system and the process is underway with 3 service areas, Procurement, Customer Engagement and Transformation Management and Residential (Care Home Services). Once the outputs form the pilot have been reviewed and the system goes live, all services will be required to complete a Business Impact Analysis, which will inform the basis for having a business continuity plan in place. This is expected to be completed by 31 March 2025. Jun-24 Douglas Hendry 9 Waste Management Unable to dispose of waste in landfill sites due to the implications of the biodegradable municipal waste (BMW) landfill ban in 2025. Our Infrastructure supports sustainable growth Alternative delivery models would be likely to be more expensive than the current one which would result in cost pressures having to be accommodated by other services and service provision reduced. 5 4 20 1. Helensburgh and Lomond waste solution available via third party off-takers, higher rates have been accepted by the council and the contract is in place until the end of 2023 with the opportunity to extend 1+1 years. It is likely over the course of 2023 an alternative procurement process will be explored with a view to putting in place a BMW compliant solution at the earliest opportunity. 2. At the EDI committee in December agreement was reached to seek a derogation to continue operating the PPP contract until September 2026. This will be alongside BMW compliant solutions for island settings and Helensburgh and Lomond (i.e all areas out with the PPP contract). Post Sept 2026 it is envisaged that BMW complaint solutions will be in place for all council areas. With there being uncertainty around the derogation request officers are also progressing in tandem a possible contract variation which would change the MBT plants within the PPP contract to become waste transfer stations to facilitate material to be shipped to a suitable off-taker. 3. SEPA have advised they are unable to provide reassurance on enforcement approach beyond their stated policy. Further approach now being made to FM to seek a solution or required funding. 4 4 16 Treat 1. Confirmation received from the Scottish Government that £1.5m has been made available to support the compliance with the BMW Ban. 2. Transition process underway with Renewi to facilitate the end of contract arrangements for Sept 2026. 3. Ongoing workshop sessions to scope out and design future disposal models across all the council area. These models to be in place from 01/01/2026 in line with the BMW requirements. Jun-24 Kirsty Flanagan 10 Service Delivery - Cyber Security Unable to deliver services to customers because of failure of ICT systems following major cyber security breach. Our Economy is diverse and thriving Threat of ransomware attacks. Data corruption of ICT system caused by malware and/or loss of confidential data. ICT Systems unavailable for considerable period whilst recovery from uncorrupted backups takes place. Meanwhile Services fail to achieve agreed performance levels and as a result are not contributing fully to Council objectives. Reputational damage to Council and potential financial losses (fines, loss of income). 5 4 20 1. ICT Security & compliance officer in post, producing weekly threat analyses, member of CiSP. 2. PSN and Cyber Essentials Plus accreditations for corporate network. 3. Regular patching regimes in place. 4. ICT Disaster recovery plans tested regularly. 5. All critical activities have recovery plans developed (CARP’s). 6. Mimecast monthly cyber security training videos for all staff. 7. Enforce password changes when found to be weak. 8. Technical cyber exercise completed and Business Continuity Planning exercise conducted with senior management and other staff. 9. Internal Audit on Cyber Security completed with the Audit Opinion as substantial. 5 3 15 Treat 1. Review will be ongoing on all contingency plans with updated knowledge from SEPA, Western Isles Council and UHI Cyber Attacks. 2. Work with Scottish Government Cyber Resilience Team to test ICT response. 3. Continued close review of disaster recovery plan and associated tests, finalise and test incident response procedure, and review of mirroring between the 2 data centres (monthly at ITMT) and backup. 4. Review and progress requirements for Education Network to achieve CE+ accreditation (going to P&R in August). 5. Procure a Security Operations Centre service to improve our 24x7 security posture. 6. Mimecast has now been made mandatory across the Council and ELT will be monitoring the uptake from staff Jun-24 Kirsty Flanagan 11 Cost of Living Crisis The Council are unable to respond to the implications arising from the 'Cost of Living' crisis. Implementation of welfare reform is not managed well resulting in increased poverty and deprivation or short term crisis. Our Economy is diverse and thriving People live active, healthier and independent lives 1. Unable to meet demands for assistance stemming from financial hardship. 2. Increases on the demand for Council services such as homelessness. 3. Financial implications for the Council as revenue income could fall correlating to financial hardship - Financial Sustainability. 4. Implications for staff, particularly those working from home. 5. Adverse impact on workforce, communities with regards to economy and demographic statistics. 6. Financial Inclusion and Advice Group established. 7. Joint working with DWP, CPP and other agencies. 8. Child Poverty Planning Group set up and active. 9. Flexible Food Fund created. Supporting householders in our area with funds and advice to address food and fuel insecurities. 4 4 16 1. Financial stability and support to HSCP. 2. Social Welfare and Poverty Funding assistance. 3. Focused support and multi-agency approach where risk is highlighted. 4. Monitoring of trends in service use to highlight any significant change as a result of financial hardship. 5. Targeted measures - for example to those receiving Council Tax reductions - via Gift Cards and Flexible Food and Fuel Fund. 6. Financial Inclusion and Advice Group established. 7. Joint working with DWP, CPP and other agencies. 8. Flexible Food Fund created. Supporting householders in our area with funds and advice to address food and fuel insecurities. 9. Child Poverty Planning Group set up and active. 4 3 12 Treat 1. Review and monitor changes in demand for key services which correlate to personal effects arising from financial distress. 2. Extend flexible food and fuel fund to March 2025. 3. Continue to support High and Medium priority spends in SWF which is continually monitored. 4. Deliver sustainable school clothing bank across the Argyll and Bute area by March 2025, with support from the UK Shared Prosperity Fund. 5. Provision of welfare rights advice services in GP Surgeries in MAKI area via funding from SG until March 2025. 6. Supporting the Poverty Alliance in their Tackling Rural Poverty project, observing its progress and considering outcomes as they emerge. Jun-24 Pippa Milne and all ELT 12 Impact of Climate Change The Council or communities are overwhelmed by severe or more frequent flooding, landslides, rainfall, storms, sea level changes or hot weather events due to changes in global temperature caused by climate change. Our Infrastructure supports sustainable growth 1. Unable to meet national and Scottish Government guidance in terms of meeting Climate Change Obligations - various milestones. 2. Inability to deliver core services due to failures in critical infrastructure - ferrys, roads, bridges, landslides, fallen trees etc. 3. Human casualty, death and community resilience if cut off or directly impacted by severe storms, landslides, flash foods or failed infrastructure. 4. Disruption of flow of goods, services and supply chains. 5. Adverse impact on workforce, communities with regards to economy and population. 5 4 20 1. Continued delivery of Council De-Carbonisation Plan. 2. Civil Contingencies Manager liaising/ collaborating with Regional Resilience Partnerships and other resilience partners in terms of storm event, hot weather events, cut off communities, landslides etc. 3. Development and delivery of an integrated approach to decarbonisation and adaptation of Argyll and Bute as a Region via Community Planning Partnership. 4. Roads & Amenity Services continue to develop asset management plan and address strategic risks in terms of rising sea levels, bridge repairs, critical infrastructure vulnerability. 5. A review of all critical transport routes in light of October 2023 severe weather event to identify any additional mitigations needed to maintain resilient routes. 4 3 12 Treat 1. Review of De-Carbonisation Plan December 2024. 2. Consideration of all Council Papers with climate change as consideration / implications - ongoing. 3. Review scoring of business cases and pipeline of strategic projects with enhanced climate change considerations. Jun-24 Pippa Milne / Kirsty Flanagan / Douglas Hendry 13 Lack of Housing availability The Council, partner agencies and communities are unable to attract and retain working age people due to lack of housing and pricing. All Corporate Outcomes Direct impact on property prices with substantial increases in our area. Lack of private rentals. Inability to attract working age people to live and work in the area which therefore affects the demographics of the area. 5 4 20 1. Council has declared a Housing Emergency. 2. Housing Strategy and Investment Plan funded and implemented/new housing delivery group established. 3. Islands Programme Award of Funding for infrastructure for worker accommodation on Mull - this is for phase 1 site infrastructure to enable delivery of accommodation for workers and will meet clearly evidenced community need. 5 4 20 Treat 1. Explore and develop a series of options in response to the housing emergency. 2. Address key barriers to housing. 3. Consider radical delivery models. 4. Updates to the Local Housing Strategy will reflect the Council's Housing Action Plan and will report reported to Council in November 2024. 5. Housing summit held in November and Action Plan being continually monitored/updated. Jun-24 Pippa Milne / Kirsty Flanagan / Douglas Hendry Page 162
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Audit Progress Report Argyll and Bute Council September 2024 Page 163 Agenda Item 13
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Contents Audit progress National publications 01 02 Page 164
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01Audit progress Page 165
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Audit progress Purpose of this report This report provides the Audit and Scrutiny Committee with information about progress in delivering our responsibilities as external auditors for the Council. We are committed to the delivery high quality audits. In this context, we have planned to complete the 2023/24 audit by December 2024 including presenting the annual audit report to the Committee, with the Best Value work planned to be completed in October 2024. We completed the planning/risk assessment and interim phases of the 2023/24 audit and are currently in the fieldwork phase of the audit, with no changes at present to our audit approach including our identified significant and enhanced risks which we presented to you in the Annual Audit Plan. There has however been an update in materiality level figures, as at planning stage our materiality was based on the Gross Revenue Expenditure in the signed financial statements for 2022/23, and this has now been updated for the same benchmark but in the unaudited financial statements for 2023/24. We have met regularly with the finance team as the audit progresses, and we will continue to do so. We will also provide a verbal update to the Committee on the latest position for the 2023/24 audit during the meeting of the Committee on 5 September 2024. The audit of the Charitable Trusts for 2022/23 is ongoing, and the audited accounts will be tabled for approval at the September 2024 Council meeting. Forvis Mazars We are delighted to introduce you to Forvis Mazars: a new global Top 10 network. Launching on 1 June 2024, Forvis Mazars has been designed for and around our clients. As a network of just two firms, and operating in over 100 countries, Forvis Mazars has been built with the scale, capacity, and expertise to support our clients’ needs worldwide. Your key contacts and our ways of working remain unchanged. For now, there will be no change to our contact email addresses. Further information on Forvis Mazars can be found here: Forvis Mazars Accountants - Audit, Tax and Advisory Services - United Kingdom Page 166
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02National publications Page 167
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Publication/update Key points Chartered Institute of Public Finance and Accountancy (‘CIPFA’) 1 CIPFA Bulletins CIPFA have issued two Bulletins to provide further guidance on the financial reporting requirements. Audit Scotland and the Accounts Commission 2 Accounts Commission Annual Report 2023/24 The Accounts Commission has published its 2023/24 Annual Report summarising the work performed during the year. 3 Accounts Commission – Benchmarking The Accounts Commission in this publication emphasises the importance of local government bodies using the Local Government Benchmarking Framework in its performance assessment. 4 Audit Scotland – Tough Decisions ahead on Climate Change The Auditor General here outlines that decarbonisation of heating in homes in Scotland is the subject of his next major climate change report Other 5 Forvis Mazars – Preparing for the Procurement Act 2023 The Procurement Act 2023 is set to transform the procurement procedures for public sector bodies. Our latest article provides an in- depth overview of the new Procurement Act. 6 Forvis Mazars – Understanding the new ‘Failure to Prevent Fraud’ Offence in a Public Sector context The UK Government has recently announced a new corporate criminal offence – the 'failure to prevent fraud' offence – within the Economic Crime and Corporate Transparency Act 2023. National publications Page 168
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National publications CIPFA 1. CIPFA Bulletins Bulletins issued by CIPFA, with the assistance of CIPFA panels, provide practitioners with topical guidance on specific issues and accounting and reporting developments. CIPFA has issued the following Bulletins in recent months: CIPFA Bulletin 17 Closure of the 2023/24 Financial Statements This bulletin covers the closure of accounts for the 2023/24 year and provides further guidance and clarification to complement the 2023/24 Code of Practice on Local Authority Accounting in the United Kingdom: Guidance Notes for Practitioners (Code Guidance Notes). It addresses, where relevant, frequently asked questions and other issues that have arisen since the publication of the 2023/24 Code Guidance Notes. Link: CIPFA Bulletin 17 Closure of the 2023/24 Financial Statements CIPFA Bulletin 16 Local audit delays and the publication of the annual governance statement CIPFA Bulletin 16 Local audit delays and the publication of the annual governance statement is intended to provided clarity to those authorities with at least one set of unaudited financial statements for prior years, and their external auditors, on the update of the annual governance statement (‘AGS’). Link: CIPFA Bulletin 16 Local audit delays and the publication of the annual governance statement Page 169
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National publications Audit Scotland 2. Accounts Commission Annual Report 2023/24 In this report, the first one under the current Chair of the Accounts commission, the summary results of the Accounts Commission Best Value reports are presented, covering the 5 councils subject to review between November 2023 and March 2024. Statutory reports’ Commission findings for two councils are also covered in this report. The report also recaps on the Commission’s new approach to overview reporting, highlighting that In October 2023 the Commission agreed a new approach to overview reporting, to move away from this single large annual overview report (plus a financial bulletin) to a broader suite of local government outputs that are shorter and are published throughout the year. Accounts Commission Annual Report 2023/24 (audit.scot) 3. Accounts Commission: Benchmarking and good public performance reporting matter The Accounts Commission in this publication emphasises the importance of local government bodies using the Local Government Benchmarking Framework (LGBF), highlighting that the pace of improvement in councils is slowing. The Accounts Commission also highlights that it expect councils to use the LGBF as part of their approach to self-evaluation and performance reporting using the underlying principles of: • Transparency and clarity in the public information that shows delivery of local priorities and the performance of services • Comparison and benchmarking with councils with similar populations and areas (family groups) to drive improvement • Trends in performance over time so the direction of travel is clear. • Driving decision-making through the use of performance data to identify improvement priorities The Accounts Commission further recaps that it directs councils to report on performance through its Statutory Performance Information Direction. https://audit.scot/publications/benchmarking-and-good-public-performance-reporting-matter 4. Audit Scotland: Tough Decisions ahead on Climate Change In this blog the Audit General highlights that climate change remains an audit priority for him. He explores the challenges, including financial, facing the public sector in reducing carbon emissions. He confirms that his next major climate change report will be on how Scotland is planning to decarbonise how we heat our homes. Tough decisions ahead on climate change | Audit Scotland Page 170
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National publications Other 5. Forvis Mazars – Preparing for the Procurement Act 2023 The Procurement Act 2023 is set to transform the procurement procedures for public sector bodies in the UK by: • Enhancing transparency in procurement processes, requiring greater disclosure of information about procurement opportunities; • Improving efficiency by introducing new measures such as electronic procurement platforms; and • Promoting fairness to ensure all suppliers have equal access to government contracts. Our latest article provides an in-depth overview of the new Procurement Act, including when it will be implemented, key provisions and how public sector organisations can prepare. Preparing for the Procurement Act 2023 6. Forvis Mazars – Understanding the new ‘Failure to Prevent Fraud’ Offence in a Public Sector context The UK Government has recently announced a new corporate criminal offence – the 'failure to prevent fraud' offence – within the Economic Crime and Corporate Transparency Act 2023. Fraud is currently the most common crime in the UK, and this new offence is designed to drive a cultural shift, encouraging organisations to improve their prevention procedures and reduce instances of fraud. It strengthens existing powers to fine and prosecute organisations for fraud committed by their employees and agents, closing loopholes that have allowed organisations to avoid prosecution in the past. This new offence holds large organisations, both in the public and private sectors, accountable for fraudulent activities committed by their employees or agents. 'Failure to Prevent Fraud' in the Public Sector Page 171
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Contact Forvis Mazars 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 2024. All rights reserved. Mark Outterside Director Mark.Outterside@mazars.co.uk Gregory Oduor Manager Gregory. Oduor@mazars.co.uk Page 172
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ARGYLL AND BUTE COUNCIL AUDIT AND SCRUTINY COMMITTEE FINANCIAL SERVICES 5 SEPTEMBER 2024 SCRUTINY – ESTABLISHMENT OF A PANEL FOR THE REVIEW 2024-25 1. INTRODUCTION 1.1 The objective of the report is to provide the Audit and Scrutiny Committee (the Committee) with an update arising from the recent change in administration, outline the potential options in order to increase resilience within the Committee for undertaking scrutiny reviews, and to ask the Committee to identify a Panel. In addition, to take forward the review of Complaints in the context of the Scrutiny Manual and Framework as part of the Committee’s scrutiny role for 2024-25. 2. RECOMMENDATIONS 2.1 The Audit and Scrutiny Committee is asked to: 2.1.2 Establish a Panel for the agreed scrutiny review relating to the Council’s complaints process. (The previous arrangements agreed by the Committee, in terms of identifying the Chair to lead the review, have been superseded by the change of Administration and composition of Members within the Audit and Scrutiny Committee). 2.1.3 2.1.4 In the event that the Committee are minded to proceed with this approach, appoint a Panel Chair and three further Members to form a Scrutiny Panel for the review, which will commence within financial year 2024-25. It is suggested that this would consist of the Chair and Vice-Chair of the Committee and a further two members to be identified. (This approach would allow a basis for the wider development of skills within the Committee to undertake and participate in future scrutiny reviews). In support to the Membership of the Panel, the former Chair of the Committee, Martin Caldwell, will provide mentoring support to the new Panel in order to build up experience and skills in undertaking scrutiny work. Officer support will be provided as required. 3 DETAIL 3.1 The development of the scrutiny function has progressed successfully, and in in the new format, a total of three reviews have been undertaken. The Committee have found such reviews helpful in discharging their role in relation to scrutiny and the Committee agreed in March 2024 that one review would be undertaken in 2024-25 and a review of Complaints would be taken forward as the preferred choice which would be of benefit to the Council. It is also important to balance the Committee’s work in relation to scrutiny with its primary duty, which is to seek the successful delivery of the agreed Internal Audit Plan. Page 173 Agenda Item 14
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3.2 The change of Administration within the Council, and the composition of the Council’s Committees has resulted in changes within the make up of the Audit and Scrutiny Committee, together with a new Chair and Vice-Chair. Experience within the Committee to undertake scrutiny review is now limited. In order to build experience and facilitate mentorship of the Chair and Vice- Chair, in respect of leading such scrutiny reviews, it is proposed that the former independent Chair, Martin Caldwell support the Panel Chair and Vice- Chair by facilitating this scrutiny review. This would provide members with the appropriate skills and experience to confidently undertake such reviews going forward. A significant amount of staff resource can be expended on scrutiny reviews. As a section we need to balance this work with available staff resources to keep within the allocated resource envelope to complete the scrutiny review without affecting the core primary function of undertaking the approved Internal Audit Plan for 2024-25. Approach to Scrutiny previously agreed by the Committee– Context and Background 3.3 In order to provide further context to the development of ‘scrutiny reviews’; a Development Session was held to establish the process to be adopted by the Committee to identify and prioritise potential scrutiny topics and of the overall approach adopted to scrutiny reviews which has been a combination of panel reviews and ‘scrutiny lite’ where relevant officers have been asked to present at Committee or at Development Sessions on topics of interest to the Committee. 3.4 In particular the Chief Internal Auditor (the CIA) asked the Committee to consider some key questions. These, and the Committee responses, are summarised in the table below. 3.5 Question Committee Response Should Scrutiny topics originate from all members and senior officers or from Committee members? There needs to be a degree of flexibility to change topics and to be able to react quickly to an ever changing environment. It is for the Committee to determine scrutiny topics. If topics originate from the committee should this be via discussions at Committee or development sessions? We may need to meet as a Committee more often however these could be less formal meetings and held virtually. Further thought can be given to this as to some extent it will depend on the number of emerging topics to be considered for scrutiny. Do we still need an annual scrutiny plan or should topics for scrutiny ‘emerge’ as the year goes by? We don’t need a plan we should allow items to emerge. Do we still need the detailed prioritisation process? The prioritisation process is there as a tool if we need it but we don’t need to use to assess every scrutiny topic. Page 174
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Do we have the right balance between ‘full blown’ panel approach vs Scrutiny Lite? There has been value in having the full panels but these are resource intensive and we should look to make use of a scrutiny lite approach where appropriate. Once a topic is decided then the Committee can decide what the best Scrutiny approach to adopt is. 3.6 The CIA has reviewed and updated, where identified, the Scrutiny Framework and Manual in 2023/24 and will do so on an annual basis in order that the approach to scrutiny work is both focused, appropriate and reflects the best approach taking cognisance of the Committee’s views. 4. CONCLUSION 4.1 The recent changes at Chair and Vice-Chair level have resulted in a gap in experience of leading and undertaking scrutiny reviews. To improve resilience, knowledge and experience within the Committee to undertake and lead scrutiny reviews, the Committee should accept the offer of mentoring and overview from an experienced person in order to facilitate the next review along with support from officers. 5 IMPLICATIONS 5.1 Policy – None 5.2 Financial – None 5.3 Legal – None 5.4 HR – None 5.5 Fairer Scotland Duty – None 5.5.1 Equalities – protected characteristics – None 5.5.2 Socio-economic Duty – None 5.5.3 Islands – None 5.6 Climate Change – None 5.7 Risk – None 5.8 Customer Service – None 5.9 The Rights of the Child (UNCRC) – None Paul Macaskill Chief Internal Auditor 5 September 2024 For further information contact: Paul Macaskill, Chief Internal Auditor (01546 604108) Page 175
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Audit & Scrutiny Committee Work Plan 2024 – 2025 This is an outline plan to facilitate forward planning of reports to the Audit & Scrutiny Committee Report Lead Service Regularity 5 September 2024 Reports to Committee Services by 12 August 2024 Internal Audit and Counter Fraud Summary of Activities Chief Internal Auditor Quarterly Internal Audit Report Follow Up Chief Internal Auditor Quarterly Internal Audit Reports to Audit and Scrutiny Committee Chief Internal Auditor Quarterly External Audit Progress Report Forvis Mazars Quarterly Verbal Update by Chair(s) of Scrutiny Panel Chair and Vice Chair of Audit & Scrutiny Committee Quarterly PSIAS Self-Assessment Chief Internal Auditor Annual Corporate Complaints Annual Report 2023-24 Governance, Risk and Safety Manager Annual Freedom of Information Annual Report 2023-24 Governance, Risk and Safety Manager Annual Audit & Scrutiny Committee 2023/24 Annual Report Audit & Scrutiny Committee Chair Annual Strategic Risk Register – Assurance Mapping Chief Internal Auditor Annual Strategic Risk Register Update Chief Executive Annual Proposed Approach to Consultations Scrutiny Review Chief Internal Auditor One-off 17 December 2024 Reports to Committee Services by 22 November 2024 Internal Audit and Counter Fraud Summary of Activities Chief Internal Auditor Quarterly Internal Audit Report Follow Up Chief Internal Auditor Quarterly Internal Audit Reports to Audit and Scrutiny Committee Chief Internal Auditor Quarterly Audit Progress Report Forvis Mazars Quarterly Verbal Update by Chair(s) of Scrutiny Panel Chair and Vice Chair of Audit & Scrutiny Committee Quarterly Page 177 Agenda Item 15
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Audit & Scrutiny Committee Work Plan 2024 – 2025 Performance Reporting Update (to include reference to LGBF) Chief Executive/Head of Customer Support Services/HR & OD Manager Quarterly Council Annual Report 2024/25 Head of Customer Support Services Annual Local Government in Scotland – Overview 2024 Audit Scotland (Lynsey to see if available and download for agenda pack – see agenda June 2023) Annual Audit Scotland Digital Exclusion National Performance Audit Head of Customer Support Services (Audit Scotland/Mazars) One-off 13 March 2025 Reports to Committee Services by 17 February 2025 Internal Audit and Counter Fraud Summary of Activities Chief Internal Auditor Quarterly Internal Audit Report Follow Up Chief Internal Auditor Quarterly Internal Audit Reports to Audit and Scrutiny Committee 2024/25 Chief Internal Auditor Quarterly Verbal Update by Chair(s) of Scrutiny Panel Chair and Vice Chair of Audit & Scrutiny Committee Quarterly RIPSA Annual Report Governance and Risk Manager Annual Internal Audit 2025/26 Plan Chief Internal Auditor Annual 2024/25 Unaudited Annual Accounts Preparation Plan and Timetable Head of Financial Services Annual Treasury Management Strategy and Annual Investment Strategy Head of Financial Services Annual Progress against Best Value Action Plan Update Chief Executive/Head of Customer Support Services/HR&OD Manager Annual Internal Audit Charter and Internal Audit Manual Chief Internal Auditor Annual Scrutiny Manual and Framework Update Chief Internal Auditor Annual Audit Scotland Report – Financial Overview 2024/25 Head of Financial Services Annual 12 June 2025 Reports to Committee Services by 19 May 2025 Internal Audit and Counter Fraud Summary of Activities Chief Internal Auditor Quarterly Internal Audit Report Follow Up Chief Internal Auditor Quarterly Internal Audit Reports to Audit and Scrutiny Committee Chief Internal Auditor Quarterly Verbal Update by Chair(s) of Scrutiny Panel Chair and Vice Chair of Audit & Scrutiny Committee Quarterly Page 178
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Audit & Scrutiny Committee Work Plan 2024 – 2025 Internal Audit 2024-25 Annual Report Chief Internal Auditor Annual External Audit – 2024/25 Annual Plan Forvis Mazars Annual Audit Strategy Memorandum Forvis Mazars Annual Local Government Benchmarking Framework Report Head of Customer Support Services/HR & OD Manager Annual Unaudited Financial Accounts Head of Financial Services Annual Statement of Governance and Internal Control Governance, Risk and Safety Manager Annual Page 179
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