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2021_22_Internal Audit_ELC Parental Satisfaction_ FinalReport

Argyll and Bute Council · 23 June 2022
Back to Audit and Scrutiny Committee — 23 June 2022 and its agenda

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Argyll and Bute Council
Internal Audit Report
May 2022
FINAL 
High Medium Low VFM
Number of
Findings
0 0 2 0
Early Learning and Childcare
Parental Satisfaction
Audit Opinion: Substantial

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Argyll and Bute Council – Internal Audit Report – ELC Parental Satisfaction, May 2022
Contents 
1. Executive Summary ........................................................................................................................ 3
Introduction ............................................................................................................................................ 3
Background ............................................................................................................................................. 3
Scope ....................................................................................................................................................... 4
Risks ........................................................................................................................................................ 4
Audit Opinion ......................................................................................................................................... 4
Recommendations ................................................................................................................................. 4
2. Objectives and Summary Assessment ........................................................................................... 5
3. Detailed Findings ............................................................................................................................ 5
Appendix 1 – Action Plan ....................................................................................................................... 9
Appendix 2 – Audit Opinion ................................................................................................................. 11 
Contact Details 
Internal Auditor: Annemarie Mclean 
Telephone:  01700 501354 
e-mail:   Annemarie.mclean@argyll-bute.gov.uk 
www.argyll-bute.gov.uk

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Argyll and Bute Council – Internal Audit Report – ELC Parental Satisfaction, May 2022
1. Executive Summary
Introduction
1. As part of the 2021/22 internal audit plan, approved by the Audit & Scrutiny Committee in
March 2021, we have undertaken an audit of Argyll and Bute Council’s (the Council) system of
internal control and governance in relation to Early Learning and Childcare Parental Satisfaction. 
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. Early Learning and Childcare (ELC) describes the care and learning services that children receive
before starting school. The Children and Young People’s (Scotland) Act 2014, and the
subsequent Modification Order in March 2021, created the statutory duty for the increase in
provision of free ELC from 600 to 1140 hours per year by August 2021, for children who are
three or four years old, as well as for two year olds whose parents/carers are on qualifying
benefits and are eligible through the Act. This is funded by the Scottish Government and Local
Authorities. 
5. The expansion in hours is intended to support child development, help close the attainment gap
through the provision of high quality services; and support parents and carers to return to work,
train or study.   
6. An important part of the increase in funded early learning and childcare hours is to ensure there
are a range of choices on offer. Parents and carers will have a variety of needs which will shape
their preferences for how the 1140 hours might be provided. Because of this, the Council is
working closely with partner provider nurseries and with local childminders to try to ensure
parents and carers can access funded hours in the way which best meets their family's needs. 
7. In June 2020, there were 1,530 children accessing 2,039 ELC spaces across a broad range of Early
Learning and Childcare establishments with approximately 160 children sharing their ELC hours
across more than one establishment. 
8. Early learning and childcare spaces are currently available in three Argyll & Bute Council (the
Council) nursery centres, fifty one early learning and childcare classes, four early learning and
childcare Gaelic classes, twenty three voluntary, privately and independently managed early
learning and childcare establishments, three outdoor nurseries (two voluntary and one local
authority) and twenty eight funded partner childminders.

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Argyll and Bute Council – Internal Audit Report – ELC Parental Satisfaction, May 2022 
9. The Council’s Early Years team carry out consultations with parents and carers to find out their
views on the existing ELC provision and what their aspirations are for the future of ELC provision
in Argyll and Bute.
Scope 
10. The scope of the audit was to review the parental engagement/ feedback process for provision
of 1140 hours expansion rolled out August 2020 as outlined in the Terms of Reference agreed
with the Head of Education-Lifelong Learning and Support on 17 February 2022.
Risks
11.  The risks considered throughout the audit were: 
 Audit Risk 1:  Failure to ensure that processes and procedures are in place to gather
feedback for the 1140 hours funded ELC
 Audit Risk 2:  Processes and procedures are not being followed
 Audit Risk 3:   Failure to ensure appropriate performance and reporting arrangements
are in place
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 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
14. We have highlighted two low priority recommendations where we believe there is scope to
strengthen the control and governance environment. These are summarised below: 
 A Parental Engagement and Home Family Learning Strategy should be prepared by each
early learning establishment and made available to view or the Council’s Parental
Engagement Strategy should be updated to reflect current practice. 
 The Education ELC team should update the Locality Overview Document and Learning
and development form. 
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.

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Argyll and Bute Council – Internal Audit Report – ELC Parental Satisfaction, May 2022
2. Objectives and Summary Assessment
16. 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 Processes are in
place for parental
engagement and
feedback
Audit Risk 1 Substantial  An overarching Parental Engagement
Strategy (PES) is in place in accordance
with the national action plan.  The PES
requires local strategies to be in place
in each establishment, however we
were unable to obtain sufficient
evidence that this is being complied
with.  The ELC team undertake
establishment visits, however visit
documentation makes no reference to
this requirement to have a local PES in
place.
Establishments are approved by the
Care Inspectorate and commissioning
contracts are in place with
independent providers.
2 Processes and
procedures to
ensure parental
engagement are
being followed
Audit Risk 2 Substantial Consultations take place following
guidelines in the corporate toolkit, five
have been completed and one is
currently in progress.
3 Appropriate
performance and
reporting
arrangements are in
place
Audit Risk 3 Substantial Appropriate performance and
reporting arrangements are in place.
Responses have been gathered from
completed consultations with results
documented in reports and made
available on the Council’s website.  The
vast majority of responses were
positive, however, some areas for
improvement were identified and
actions have been recorded to address
these. 
17. Further details of our conclusions against each control objective can be found in Section 3 of this
report.  
3. Detailed Findings
Processes are in place for parental engagement and feedback
18. The Council has a Parental Engagement Strategy (PES) which was created in consultation with a
wide group of stakeholders and reflects the Council’s commitment to empower parents to

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Argyll and Bute Council – Internal Audit Report – ELC Parental Satisfaction, May 2022
become better involved with our schools and early years’ establishments and better engaged
with children’s learning. 
19. The PES takes cognisance of the National Action Plan on Parental Involvement, Engagement,
Family Learning and Learning at Home 2018-2021 and recognises that most of a child’s
development takes place out with our schools and early years’ establishments.  The role of
families and carers is critical to ensuring our children and young people succeed and therefore
support is required for families to engage meaningfully in their child’s education. 
20. The PES is available to view on the Council’s website and covers the child’s whole journey
through education from early years through to senior years, it is currently under review and due
for completion in August 2022.   
21. The national standard requires a consultation to take place every two years with persons who
appear to be representative of parents of children under school age in their area about how they
should make early learning and childcare available.  Following this current consultation a plan
will be prepared and published setting out how it is intended to make early learning and
childcare available with regard to the views expressed.   
22. The Council has plans in place for Parental Engagement at ELC Centres.  The 1140 Hours Delivery
Plan was developed to provide the framework to implement the phased expansion of ELC
sustainably across Argyll and Bute.  The plan sets out: 
 ELC Provision – current supply and demand
 Consultation with stakeholders
 Future provision
 Phasing plan
 Quality action plan 
 Phasing action plan
 Workforce plan
 Infrastructure plan
 Community engagement plan 
23. The PES requires that all learning establishments develop and publish their own Parental
Engagement and Home Family Learning Strategy (the strategy).   
24. Establishments are required to submit a Setting Improvement Plan (SIP) each August and this
must include how they will deliver their Parental Engagement Strategy. Parental Engagement
was a priority across the service and setting plans in 2017/18, 2018/19 and 2019-21. 
25. It is considered that many establishments have a strategy in place, however, only one formal
written strategy could be evidenced within the sample selected for review.  A sample of one
establishment from each of the Council’s four administrative areas, comprising of one stand-
alone Council nursery and three Council run primary schools with ELC provision was selected and
asked to provide a copy of their strategy.   
 One provided a copy of their strategy and a link to the overarching PES was active on
their website;

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Argyll and Bute Council – Internal Audit Report – ELC Parental Satisfaction, May 2022
 One provided a link to the overarching PES;
 One provided copies of their SIPs which included Parental Engagement activities and
consultation plans;
 One did not respond to requests to provide their strategy documents.   
The websites of each establishment were reviewed and no establishment specific strategies
could be located.  
Action Plan 1 
26. The ELC team undertake establishment visits and prepare reports upon completion.  These visits
were temporarily suspended throughout the period when COVID-19 restrictions were in place
and subsequently reports were not completed, these visits have recently been reinstated.
27. Establishment visits are recorded on a Locality Overview Document with any findings recorded
on a Learning and development form, however these documents make no reference to the
requirement for an establishment specific parental engagement strategy to be in place and
available for review.
Action Plan 2 
28. All funded independent partner providers for delivery of 1140 hours are approved by the Care
Inspectorate and have commissioning contracts in place that outlines the policies and plans
required to be in place, however, the strategy is not included on this list.  This contract is a
template provided by Scotland Excel and is used across Scotland. 
29. The Council has an early years team in place with roles and responsibilities in respect of parental
engagement clearly defined in job tiles, job descriptions and within the 1140 Hours Delivery
Plan.
Processes and procedures to ensure parental engagement are being followed
30. The Post Phasing 1140 Parent Survey consultation has been completed in five areas of the
Council following phased delivery, the final consultation is currently in progress.  The
consultation has been conducted in compliance with the corporate consultation toolkit. 
31. In accordance with the corporate consultation toolkit, the Post Phasing 1140 Parent Surveys
were advertised on the Council website and social media channels facilitating a link to
participation through completion of an online form.  Parents and carers were also offered a one
to one session with the Early Years Development Officer to participate in the consultation.
Appropriate performance and reporting arrangements are in place
32. Consultation responses are collated and analysed with information passed to Education
management and appropriate officers through a formal report.  These results are then
announced on social media, at the relevant ELC establishments and published on the
consultation area of the Council’s website for public access. 
33. The results of the consultations that have taken place indicate that the vast majority of
parents/carers are satisfied with their choice of establishment and of the pattern of ELC delivery. 
Opportunity was available for participants to make comments and these were found to contain
positive remarks as well as help identify areas for improvement.  The report also sets out what

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the service will do to progress the areas for improvement such as transition arrangements for
entering ELC and for moving to primary school.

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Appendix 1 – Action Plan 
No Finding Risk Agreed Action Responsibility / Due Date
Low
1 Parental Engagement and Home Family Learning Strategy 
The overarching Parental Engagement Strategy requires
that all ELC establishments develop and publish their own
Parental Engagement and Home Family Learning Strategy.
Three of the four establishments reviewed were unable to
provide a copy of their Parental Engagement and Home
Family Learning Strategy.
Local needs and
requirements are not
identified and therefore
not catered for in the
establishment.
Education staff will
undertake a review of
establishments to
confirm which have a
formal written Parental
Engagement and Home
Family Learning
Strategy in place and
support development of
one if not in place. 
(Acting) Education
Manager 
30 September 2022 
Low
2 Establishment Visit Documentation 
Establishment visits are recorded on a Locality Overview
Document with any findings recorded on a Learning and
development form, however documentation makes no
reference to the requirement to have an establishment
Parental Engagement and Home Family Learning Strategy
in place.
Failure to ensure the
document reflects
current strategies and
working practice.
Locality Overview
Documents and
Learning and
Development forms will
be updated to reflect
requirement for each
establishments to have
a Parental Engagement
and Home Family
Learning Strategy in
place.
(Acting) Education
Manager 
30 September 2022 
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:

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Argyll and Bute Council – Internal Audit Report – ELC Parental Satisfaction, May 2022 
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).

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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.