8 Audit Scotland - Best Value Report
North Ayrshire Council · 27 August 2026
Back to Audit and Scrutiny Committee — 27 August 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: Audit Scotland - Asset Management Best Value Report Purpose: To update committee on the findings from the recent Best Value Audit on Asset Management Recommendation: That committee notes the findings from the recent Best Value Audit report on Asset Management arrangements within North Ayrshire Council 1. Executive Summary 1.1 The focus of Best Value Audit work this year is on a thematic review of Asset management arrangements across Councils. Audit Scotland carried out the audit with support from officers in North Ayrshire Council. 1.2 The scope of the audit was to assess how well North Ayrshire Council is managing assets to achieve its corporate objectives and respond to challenges around financial sustainability and climate change. 1.3 The report on the audit findings is included within the appendix of the report for committee to consider. The findings are welcome and reflect robust asset management arrangements across the Council. It is also noted that the report does not include any improvement actions. Members of Audit Scotland will attend the meeting to present the findings. 2. Background 2.1 Full details of Audit Scotland’s Best Value thematic audit on asset management arrangements within North Ayrshire Council are included within the appendix of the report. 2.2 The details of the audit include an assessment of asset management planning arrangements, governance and performance, partnership working and community engagement 2.3 The key findings from the audit include:
Page 2
• North Ayrshire Council demonstrates an effective approach to its asset management. The strategic approach is outlined in its overarching Corporate Asset Strategy and Plans. This gives consideration to the changing needs of its population, new ways of working and also sets out how it will support the council to meet its net zero emission commitments. • There is clear strategic alignment between the Corporate Asset Strategy, service level asset management plans, the Capital Programme and the council’s priorities. • The council has sufficiently considered the affordability of its capital programme and asset management plans whilst navigating substantial financial pressures that are projected to widen budget gaps in the coming years. • The council’s reporting and monitoring arrangements enable good scrutiny and oversight of progress towards implementing its capital programme and asset management plans. • North Ayrshire Council is progressing well with the delivery of its capital programme and asset management plans. The council’s performance against the asset management Local Government Benchmarking Framework indicators has varied over time. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators • North Ayrshire Council works collaboratively with partners to optimise how assets are delivered. It has a clear approach to assessing Community Asset Transfer requests and can demonstrate how it has worked with communities to inform decision making in relation to specific assets. • No improvement actions have been identified or required by the council from the audit work. 3. Proposals 3.1 It is recommended that committee notes the findings from the recent Best Value Audit report on Asset Management arrangements within North Ayrshire Council. 4. Implications/Socio-economic Duty Financial 4.1 The asset management plans inform the annual budget programme and capital investment plans. Human Resources 4.2 None.
Page 3
Legal 4.3 None. Equality/Socio-economic 4.4 All required impact assessments are undertaken in the course of managing assets across the Council. Climate Change and Carbon 4.5 Asset management arrangements support the Council’s key priority in addressing climate change, demonstrated through investment in renewables, vehicles and energy efficiency improvements across the property estate. Key Priorities 4.6 The audit notes the linkages between the Council’s asset management planning arrangements and the Council’s key priorities. Community Wealth Building 4.7 A key focus of asset management arrangements including progress on community asset transfers, maintenance of community facilities etc. 5. Consultation 5.1 Audit Scotland have engaged with a number of Council officers throughout the course of the audit. Mark Boyd Head of Service (Finance) For further information please contact Mark Boyd, Head of Finance, on 01294 324560. Background Papers 0
Page 4
Best Value thematic work – Asset management North Ayrshire Council How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change Prepared by Audit Scotland June 2026
Page 5
Contents | 2 Contents Contents 2 Key messages 3 Introduction 4 1. Asset management planning 6 2. Governance and performance 17 3. Partnership working and community engagement 23 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility.
Page 6
Key messages | 3 Key messages 1 North Ayrshire Council demonstrates an effective approach to its asset management. The strategic approach is outlined in its overarching Corporate Asset Strategy and Plans (December 2025). This gives consideration to the changing needs of its population, new ways of working and also sets out how it will support the council to meet its net zero emission commitments. 2 There is clear strategic alignment between the Corporate Asset Strategy, service level asset management plans, the Capital Programme and the council’s priorities. 3 The council has sufficiently considered the affordability of its capital programme and asset management plans whilst navigating substantial financial pressures that are projected to widen budget gaps in the coming years. 4 The council’s reporting and monitoring arrangements enable good scrutiny and oversight of progress towards implementing its capital programme and asset management plans. 5 North Ayrshire Council is progressing well with the delivery of its capital programme and asset management plans. The council’s performance against the asset management Local Government Benchmarking Framework indicators has varied over time. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators 6 North Ayrshire Council works collaboratively with partners to optimise how assets are delivered. It has a clear approach to assessing Community Asset Transfer requests and can demonstrate how it has worked with communities to inform decision making in relation to specific assets. 7 We have not identified any improvement actions required by the council from our work.
Page 7
Introduction | 4 Introduction 1. Asset management directly impacts how councils provide services and achieve their own corporate priorities and longer-term financial sustainability. Limited capital budgets make it challenging for councils to maintain their existing assets and estates, invest in new assets and achieve net zero targets. Exhibit 1 sets out some principles for effective asset management, informed by CIPFA guidance and the Infrastructure Investment Plan for Scotland. Exhibit 1 Principles for effective asset management Principle What this looks like in practice Strategic alignment Councils’ asset management strategies align with their corporate objectives, financial plans, new ways of working, population needs and net zero commitments. Investment hierarchy To support sustainability and cost-effectiveness, asset management strategies prioritise: 1. maintaining and optimising existing assets 2. repurposing or upgrading existing assets to meet the needs of the community 3. new investment only when necessary Monitoring condition and performance Councils regularly assess the condition, suitability and performance of their assets, to help inform investment priorities and support continuous improvement. Governance and accountability Councils have clear roles and responsibilities for asset management, with regular, transparent reporting and senior oversight. Community asset transfers Councils have transparent and robust processes in place to assess and support requests for community asset transfers. Place-based approaches Councils collaborate across services and other public and third sector organisations to manage assets as a collective resource across their local area. This has the potential to achieve savings, better align service provision and create opportunities for joint working. Source: Audit Scotland
Page 8
Introduction | 5 2. The Code of Audit Practice sets out the requirements for Best Value audit work. This report covers the thematic aspect of the Best Value audit requirements. The Accounts Commission has directed auditors to report on how well councils are managing their assets. In carrying out the work, auditors have considered the following questions: • Part 1 – To what extent does the council have a clear asset management strategy and plans that are affordable, align with its corporate objectives, the changing needs of its population, and net zero commitments? • Part 2 –To what extent do the council’s governance and accountability arrangements support effective asset management? • Part 3 – To what extent does the council have a robust approach to working with partners and communities in managing its assets? 3. The coverage of the work is in line with the expectations for council’s arrangements for the seven Best Value themes in the Local Government in Scotland Act 2003, Best Value Statutory Guidance 2020.
Page 9
1. Asset management planning | 6 1. Asset management planning 4. Councils’ capital programmes are a necessary component of modernising services to improve outcomes for local communities. Doing this successfully requires good strategic medium- to long-term asset management and planning. The Accounts Commission’s Local government budgets 2025/26 briefing reported that capital funding for 2025/26 had increased but remained lower than in 2023/24 and that investing in new buildings and assets is increasingly expensive. Councils are relying on borrowing as the main source of funding for capital projects. In 2025/26, councils intend to borrow £3.13 billion, an increase from £2.67 billion in 2024/25. Findings and evidence relating to the council’s asset management strategic planning arrangements Judgements Evidence 1. The council has an up- to-date and well-informed asset management strategy that clearly sets out its approach and priorities for managing and developing its assets. It covers a sufficient period enabling strategic planning and is clear about how progress will be monitored and when priorities will be reviewed. 1. North Ayrshire Council’s overarching Corporate Asset Strategy (2025-2030) was updated and approved by Cabinet in December 2025. It provides a comprehensive overview of the Council’s key assets and includes individual asset management plans for six categories of asset including: property, housing, roads, fleet, open space and ICT to support the delivery of the Council’s priorities. It sets out clear aims and objectives including: • Aligning asset management with the council’s key strategic priorities • Making efficient and effective use of the council’s assets • Reviewing and rationalising the asset portfolio to ensure it is fit for purpose • Ensuring investment in assets is prioritised and managed through clear governance. 2. The Corporate Asset Strategy adequately considers how the organisation and the landscape in which council services are being delivered is changing. For example, it notes how the shift to more agile working patterns has changed how buildings are being used and the development of school campuses is cited as having created opportunities for some community services to be
Page 10
1. Asset management planning | 7 Judgements Evidence co-located. In addition, financial and climate pressures have placed a renewed focus on sustainability including asset decarbonisation, infrastructure requirements for active travel and opportunities for renewable energy generation. 3. The Corporate Asset Strategy is underpinned by six detailed asset management plans, each clearly linked to service delivery. For example, the Property Asset Management Plan explains how schools and education facilities are assessed for condition, suitability and utilisation and the Housing Asset Management Plan clearly links the housing stock and quality to tenant wellbeing, homelessness prevention, energy efficiency and climate targets. The Corporate Asset Strategy is aligned to financial planning through the 10-year Capital Programme which is updated annually. 4. The Corporate Asset Strategy sets out a clear approach to asset management, supported by defined governance arrangements and roles and responsibilities for key groups. The Capital Programme and Assets Group is chaired by the Head of Finance and has representation from senior officers across all services. It meets quarterly and its remit includes strategic asset management, investment prioritisation, business case assessment, capital programme delivery as well as developing and monitoring of performance across all assets. Each asset-specific plan includes its own governance arrangements. 2. The council’s Corporate Asset Strategy and Plans align with its corporate objectives, new ways of working, the changing needs of its population, and clearly sets out how net zero commitments will be met. 1. There is clear alignment between North Ayrshire Council’s key priorities and its Corporate Asset Strategy and Plans. The overarching Asset Management Strategy is reported to Cabinet annually to ensure alignment between high level council-wide priorities and individual asset management plans. This approach ensures priorities are interlinked and Chief Officers are allocated key responsibilities as part of this structure. 2. North Ayrshire’s Council Plan (2023-2028) sets out its four key priorities: wellbeing; communities and local democracy; climate change and sustainability. These priorities underpin the council’s strategic aim of a ‘North Ayrshire that is fair for all’. 3. North Ayrshire Council’s four priority themes are clearly reflected throughout its Corporate Asset Strategy and individual asset management plans. For example:
Page 11
1. Asset management planning | 8 Judgements Evidence • The theme of wellbeing is reflected under the council’s equality and socio-economic duties such as ensuring the availability of quality public open spaces for physical activity and health and wellbeing benefits. Wellbeing is also reflected within the vision for the Housing Asset Management Plan, whereby the council envisages that ‘everyone has a safe, affordable, and warm home that meets their needs and supports their wellbeing.’ Corresponding wellbeing aims within the Housing Asset Management Plan include using assets to support wellbeing in local communities, delivering homes that meet the needs of residents and ensuring spaces are well-maintained, inclusive and accessible for all. • Communities and local democracy is a defined priority within the Housing Asset Management Plan, whereby corresponding aims include developing strong relationships with communities and partners based on trust and shared aspirations using their experiences to inform service provision, actively supporting the aims of the Community Planning Partnership and the North Ayrshire Partnership Plan and strengthening collaboration with third sector and voluntary organisations. • Climate change is a priority within the Roads Asset Management Plan, with corresponding actions such as improvising resilience and reducing carbon by supporting supply chains where materials and goods are sources locally, developing and promoting active travel infrastructure, transitioning to low and zero carbon travel as well as costal adaptation work and flood risk management to address the most serious impacts of climate change. • Sustainability is reflected throughout the Property Asset Management Plan, for instance, there is a dedicated sustainability assets section detailing the council’s work to develop two solar farms, receiving an income for the renewable electricity generated (£0.5 million return on investment per year). 4. The Corporate Asset Management Strategy (2025-2030) is explicitly set over a five-year period from 2025 to 2030, providing a medium-term framework for asset planning and investment. Asset planning is also aligned to the 10- year Capital Programme which is updated annually and refreshed every three years, providing a basis for longer term planning and investment decisions.
Page 12
1. Asset management planning | 9 Judgements Evidence 5. The council has clearly considered how its assets can be optimised to reflect new ways of working, the changing needs of its population and demands for services. For example: • The ICT Asset Management Plan (2025-2028) discusses how agile working has become a permanent feature of the council’s work culture since the Covid-19 pandemic and that many staff now operate in a hybrid or fully remote capacity. This change has been supported by office rationalisation, the closing of underutilised buildings and the co-location of teams. In addition, it notes that IT services have also enhanced the council’s remote capabilities, including upgrading office Wi-Fi infrastructure to ensure fast and reliable connectivity for laptops and mobiles. • The Housing Asset Management Plan demonstrates strong consideration of demographic change addressing the needs of an ageing population through sheltered housing refurbishment and adaptations as well as planning for energy efficiency measures and net zero standards that affect future housing demands and requirements. For example, under Energy Efficiency Standard for Social Housing it states that the Council’s new build programme is a key area in delivering energy efficiency measures and that the new homes being constructed utilise the latest energy efficient technology including increased levels of thermal insulation, air tightness, air source heat pumps and solar panels. 6. There is evidence of demand forecasting across a range of individual asset management plans, including property, fleet, ICT and open space. Forecasting is influenced by a range of factors including climate change adaptation requirements, increased community use of buildings and financial pressures. In addition, the Housing Asset Management Plan includes a dedicated section on future demand which states that demand for council housing continues to be high, however it is recognised there are areas of ‘unpopular housing stock’ and ongoing work is focussed on understanding and addressing the factors that influence demand for specific housing types, ensuring that options available align with council priorities, including sustainability, accessibility and community regeneration. 7. The council clearly sets out how it intends to meet its net zero commitments. For example, the Corporate Asset Strategy states ‘The Council’s asset management plans
Page 13
1. Asset management planning | 10 Judgements Evidence recognise the opportunities to tackle climate change through efficient asset management, for example: investment in energy conservation measures in our houses and non-domestic buildings; using our assets to generate renewable energy; continued decarbonisation of our vehicle fleet; construction of new electric vehicle charging points; and journey reduction through the use of technology.’ 8. Detail about key programmes of work, actions to meet net zero commitments, as well as performance indicators detailing how progress will be monitored are set out within individual asset management plans. For example, the Fleet Asset Management Plan’s key programmes of work include fleet rationalisation, the use of telematics (described as an essential component of implementing zero emission vehicles), switching to low carbon alternatives, charging infrastructure in the workplace to support the expanding electric fleet, as well as plans for the procurement of zero emissions Heavy Duty Vehicles. The Plan incorporates two performance indicators to measure and monitor progress against its net zero commitments, including: • Fuel use (litres) 3-year trend data from 2022/23, 2023/24 and 2024/25 shows a steady decline each year, with a target of 1,400,000 litres for 2025/26 continuing this trend. • CO2 emissions (tonnes) 3-year trend data from 2202/23, 2023/24 and 2024/25 also shows a steady decline each year, however the 2025/26 target of 3,680 tonnes represents increasing emissions despite lower fuel use overall. 9. There is also a Fleet Asset Management action plan which incorporates actions and outcomes to support net zero commitments, including the reduction of fleet produced emissions and demand for vehicles and travel. 3. The council has clear asset management plans that align with the Corporate Asset Strategy and Capital Programme 1. The council has clear service-level asset management plans that include sufficient detail on actions, timescales and costs. We reviewed two asset management plans and found that these were well- aligned with the Corporate Asset Strategy and capital programme. Roads Asset Management Plan 2. The Roads Asset Management Plan includes an action plan that sets out specific actions, a dedicated staff member assigned to each action and high-level
Page 14
1. Asset management planning | 11 Judgements Evidence timescales. There are multiple examples of specific actions, including preparing a progress report on the Ayrshire local flood risk management plan. The dedicated staff member for this specific action is the Team Leader for flooding, and the timescale is noted as March 2026. The Roads Asset Management Plan also includes a dedicated section on finance, which sets out historical and planned investment, including predictions for future investment to 2030/31. For example, it notes £3.8 million of planned capital investment for carriageways annually until 2030/31. 3. Planned capital investment for Roads, structure and lighting is set out within the Council’s Capital Investment Strategy (2024-2034). It notes planned investment of £112.8 million until 2033/34. Key objectives for roads include improvements to roads and the street lighting network, flood prevention work and bridges infrastructure improvement. This demonstrates clear alignment in terms of key priorities within the Roads Asset Management Plan. There is also alignment with the broader ambitions in the overarching Corporate Asset Strategy. For example, the Corporate Asset Strategy aspires to reduce pressure on budgets and similarly one of the actions in the roads action plan commits to assessing the cost effectiveness of footway replacement options. Property Asset Management Plan 4. The Property Asset Management Plan includes an action plan with specific actions, desired outcomes, high- level timescales and a dedicated staff member assigned to each action. There are multiple examples of specific actions, including reviewing governance arrangements to ensure that strategic asset management reflects best practice. The desired outcome for this action is described as the council having a property estate which is being managed appropriately and in accordance with guidance. There is a dedicated member of staff for this specific action, and the timescale is marked as complete. The Property Asset Management Plan also includes a dedicated section on finance, setting out high level costs such as total revenue running costs for the Council’s operational estate, property running costs for 2024/25 and a summary of the current Capital Receipts Schedule. 5. Planned capital investment for property is set out within the Council’s Capital Investment Strategy (2024-2034). It notes planned investment of £18.6 million until 2033 to 2034. Key objectives for property include ensuring that
Page 15
1. Asset management planning | 12 Judgements Evidence council properties meet all legislative requirements and are sustainable, energy efficient and maintained to a high standard, as well as ensuring the physical environment can support both mobile and flexible work programmes. It also notes that further rationalisation and remodelling will progress through the Estates Strategy on a place-by- place basis. There is clear alignment in terms of high-level themes with the Property Action Plan, particularly in relation to efficiency, compliance and sustainability. This includes implementing new systems to improve workload efficiency, ensuring compliance with new legislative requirements, and improving energy efficiency in existing properties by replacing appliances with more environmentally friendly heating systems. The action plan also focuses on rationalisation with plans to undertake rationalisation reviews to consolidate buildings and create savings within council property. There is also clear alignment with the broader ambitions in the overarching Corporate Asset Strategy, which aims to create efficiencies, deliver sustainable change, reduce pressure on budgets and ensure clear governance and decision- making is in place for council assets. These themes are reflected throughout the Property Asset Management action plan. 4. North Ayrshire Council demonstrates a commitment to assessing affordability whilst navigating substantial financial pressures that are projected to widen budget gaps in the coming years 1. North Ayrshire Council, alongside other local authorities, is navigating substantial fiscal pressures that are projected to widen budget gaps in the coming years. The latest Medium Term Financial Outlook to 2027/28 has identified a structural funding gap of £46.7 million. Cost risks have been identified across a number of capital projects and long-term borrowing has increased in support of the council’s capital programme. As a result, the council updated their Strategic Risk Register in March 2024 to include a new strategic risk associated with the Council's property estate against a backdrop of financial challenges. The capital programme is expected to deliver a total programme of £406.459 million to 2033/34. Total available funding has been projected at £189.987 million. The balance of funding required to deliver the capital programme will be met through prudential borrowing and is anticipated at £216.472 million. A greater reliance on borrowing to fund capital programmes increases the pressures on revenue budgets over the longer term. The council understands the future revenue implications of servicing this debt.
Page 16
1. Asset management planning | 13 Judgements Evidence 2. The council has sufficiently considered the affordability of its capital programme and asset management plans. Maintaining capital plans that are ‘affordable, prudent and sustainable’ is a key consideration of North Ayrshire Council’s Capital Investment Programme (2026/27 to 2033/34), and the Treasury Management and Investment Strategy shows that the council is using formal prudential indicators to monitor affordability over time. 3. There is also evidence that the council is prioritising the investment hierarchy in its decision-making approach. For example: • The Capital Investment Programme sets out details on the long-term maintenance investments of assets, including £79.5 million on roads, structures and lighting until 2033/34 including roads resurfacing, upgrading bridges, street lighting and flood protection, as well as £21.6 million until 2033/34 on fleet procurement and maintenance to ensure sustainability and decarbonisation of the vehicle fleet. • All new projects undergo an options appraisal whereby any new investment is considered within the wider context of outcomes, affordability and balancing the need to invest to maintain current assets against the ambitions of acquiring new ones. • The Capital Investment Programme also notes that governance frameworks ensure all capital investment must demonstrate that it is aligned to the Council’s strategic priorities, with particular focus and priority given to capital investment opportunities that meet multiple strategic priorities. • In the 2024/25 Annual Audit Report, we reported that North Ayrshire Council had reviewed the phasing of expenditure within the approved Capital Investment Programme (2024/25 - 2033/34) to reflect historic expenditure patterns and organisational capacity. This resulted in the rephasing of approximately 19 per cent of the planned expenditure in both 2024/2025 and 2025/26 for delivery in later years, without impacting on the overall value of investment within the programme. 4. The council assesses a range of different funding sources to support its capital programme. For example, the Capital Investment Programme (2026/27 - 2033/34) includes a detailed breakdown of all funding sources. Key funding sources to support the delivery of £323.9 million capital investment to 2033/34 include: prudential
Page 17
1. Asset management planning | 14 Judgements Evidence borrowing, specific capital grants, general capital grant, reserve funds, capital receipts and other grants and contributions. 5. The council’s consideration of whole life costs of its assets is evident. There are a range of examples showing planned lifecycle investment, such as £9.1 million of planned investment for property lifecycle to ensure legislative compliance, sustainability and that council buildings are fit for purpose. 6. The Capital Investment Programme (2026/27 - 2033/34) analyses risks related to inflation, cost volatility and interest rates. For example, it states that the programme refresh takes account of the ongoing impact of construction industry inflation, cost volatility and supply chain issues across the overall capital investment programme. In addition, it notes that the council has created a £15 million flexibility budget (over a three-year period) to manage cost risks associated with inflation and supply chain issues. 7. Business case criteria include affordability tests to assess whether capital and borrowing plans are affordable. Key indicators include capital expenditure and financing; the capital financing requirement and total borrowing needed over time; borrowing limits (operational boundary and authorised limit) to ensure borrowing stays within safe and affordable limits, as well as the ratio of financing costs to net revenue stream. In addition, the Loans Fund Policy ensures that borrowing is repaid in a way which is affordable. According to the Capital Investment Strategy (2024-2034) this involves ensuring that unfinanced capital expenditure is financed over the expected life of the asset and that each year's repayment amount is in proportion to the period and pattern of benefits. There is an emphasis on ‘prudential borrowing’ to ensure that investment in assets to deliver on the council’s strategic priorities is sustainable in the long-term. 8. The Capital Investment Strategy (2024-2034) and Treasury Management and Investment Strategy (2026/27) show that the council considers its debt to expenditure ratio and is keeping borrowing within prudent and sustainable levels. For example, the council uses formal prudential indicators – in particular the ratio of financing costs to net revenue stream - as a key measure of affordability. The Council’s Capital Financing Requirement is monitored
Page 18
1. Asset management planning | 15 Judgements Evidence through the treasury management strategy and is projected to: • Increase to £821.544 million by 2030/31 • Reduce annually thereafter to 2033/34. 9. There is clear monitoring of debt in relation to financial capacity. For example, the council consider if debt is affordable relative to the revenue budget. The average ratio of debt servicing costs to net revenue for general services (over a three-year period) is 4.3 per cent for General Services (below the Scottish average of 5.4 per cent). For Housing Revenue Account this is 27.7 per cent, higher than the Scottish average of 21.4 per cent but the council explains this is linked to the scale of planned investment in the Capital Investment Programme. 5. The council has clear plans in place to mitigate significant building safety risks it has identified 1. There is clear evidence that surveys and assessments are being undertaken in relation to building safety risks, as well as remedial actions being taken to mitigate identified risks. For example: • An update taken to the Executive Leadership Team and Cabinet in November 2023 explains that surveys carried out by Structural Engineers have identified the presence of RAAC in two Council properties. As a precaution both properties have since been closed and contingency arrangements put in place to manage the impact of the closures. • Evidence from the Council’s response to the Grenfell tower fire in 2017 shows that the Council carried out an assessment to identify affected buildings and assess their construction and cladding systems. The review confirmed that that none of the North Ayrshire Council’s properties use the aluminium composite cladding associated with the Grenfell Tower fire. However, the assessment did identify a risk in relation to high rise residential buildings, where sprinkler systems were not installed because there was no statutory requirement at the time the buildings were constructed. The Council has since taken action to address this by progressing the installation of sprinkler systems, which was identified as the main mitigation measure. • North Ayrshire Council’s formal return to the Scottish Government for the High-Pressure Laminate (HPL) cladding data collection exercise in January 2020 (introduced following the Grenfell Tower fire) shows that 12 schools in the local area are recorded as having HPL cladding present. Fire Risk Assessments have
Page 19
1. Asset management planning | 16 Judgements Evidence been carried out at all 12 of these locations since the HPL cladding return. The Council are currently preparing to commence a programme of new FRAs across the estate. 2. Risk prioritisation, monitoring and reporting arrangements are clear at a strategic level. The council operates a three- tier risk management structure to ensure risks have appropriate oversight. Operational risks are identified and monitored at individual service level and corporate risks are considered through the Risk Management Group as well as being reported to the Executive Leadership Team. The process also considers risk escalation or deescalation to or from the Strategic Risk Register which is reported to the Cabinet and Audit and Scrutiny Committee. 3. The council has provided an example of its risk management approach in relation to the presence of RAAC at Mid-Dykes depot. Risks are assessed through a risk-based review of affected properties, supported by structural engineer inspections. Reporting arrangements are clear and involve notifying the Head of Sustainability, Transport and Corporate Property, regular updates through Place and Corporate Health and Safety Meetings, as well as external updates to the Scottish Government and Audit Scotland. Monitoring arrangements are clearly defined and require formal annual inspections, with responsibility assigned to a Team Manager within Assets and Property Rationalisation.
Page 20
2. Governance and performance | 17 2. Governance and performance 5. It is essential that the council has effective governance arrangements in place to enable transparency, oversight and scrutiny of progress with implementing its capital programme and asset management strategy. This enables better-informed decision making and corrective action where needed. Findings and evidence relating to the council’s governance arrangements and performance Judgements Evidence 6. North Ayrshire Council has established appropriate leadership arrangements, and reporting and monitoring arrangements enable good scrutiny and oversight of progress towards implementing the capital programme and asset management plans 1. North Ayrshire Council has established appropriate leadership arrangements for its capital programme and asset management plans. The governance framework is delivered through a range of officer and member represented groups and committees, each with clearly defined roles and responsibilities. For example, Cabinet approves the corporate framework and the council approves the medium and longer-term investment programme. The Executive Leadership Team, the Capital Programme and Assets Group (CPAG) and Directorate & Service Project Boards ensure officer co- ordination of corporate asset management and support the Council and Cabinet at chief officer and senior management levels. 2. CPAG is chaired by the Head of Finance and includes representation from senior officers across all Services. It meets on a quarterly basis with the remit of: • ensuring a strategic and corporate approach overview of asset management to ensure the Council’s resources are deployed effectively • developing and delivering the corporate asset management plans • developing and delivering the Council’s capital investment programme, minimising slippage on the delivery of the programme • developing clear criteria for investment of Council resources on asset matters and assessing all investment business cases
Page 21
2. Governance and performance | 18 Judgements Evidence • developing and monitoring performance across all asset classes • developing a capital receipts strategy • developing and implementing best practice in all asset matters. 3. Chief Officers and Senior Managers are responsible for: • working together to ensure a corporate approach to asset management is in place and delivering the Council’s asset management plans and associated investment programme • contributing to the development and delivery of asset strategies and plans; and • ensuring consultation on asset management is undertaken with all relevant stakeholders. 4. Directorate and Service Project Boards are responsible for: • Ensuring capital and asset plans are being implemented efficiently and effectively • Taking corrective action to ensure delivery plans remain with agreed parameters of time and budget • Escalating relevant issues to the Executive Leadership Team and and/or CPAG. 5. Reporting and monitoring arrangements are sufficiently regular and provide senior leadership with clear information about progress towards implementing the capital programme and asset management plans. For example, our review of CPAG meeting papers shows that the group meets on a quarterly basis and meetings following a standard structure, with papers including capital financial reports, business cases and draft minutes and action logs from service project boards. 6. During fieldwork, officers also highlighted that action plans for individual service level asset management plans are being monitored regularly through updates to Heads of Service and Senior Managers, as well as Council Plan quarterly assessments of performance which are reported through the Executive Leadership Team and fed into Cabinet and Audit and Scrutiny Committee. 7. Cabinet considers regular capital programme performance reports. These cover performance relating
Page 22
2. Governance and performance | 19 Judgements Evidence to the General Services capital programme and Housing Revenue Account. Reports capture: • Movement in the General Services capital budget in- year • In-year changes to funding and alterations to the phasing of projects • Projected capital expenditure to 31 March 2026. 8. Reports also include an appendix covering project expenditure by service area, broken down by the type of project. This outlines total project budget, total expenditure to date, total project forecast expenditure and projected over/underspend. It also covers budget and expenditure for the current year. Detailed updates are also given for each project in the General Services capital programme and HRA. This covers budget and expenditure along with completion dates and current project status. A RAG rating is also given for both financial and ‘physical’ delivery status. Of the three reports reviewed, two of these also included an assessment of estimated performance against the Prudential Indicators set out in the Treasury Management and Investment Strategy. 7. North Ayrshire Council is progressing well with the delivery of its capital programme and asset management plans North Ayrshire Council’s performance against the relevant LGBF asset management indicators has varied over time. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators 1. The latest capital programme performance report shows that the council is progressing well with the delivery of its General Services capital programme. For example, in November 2025, of 164 projects, 59 were complete, 100 were on target (green), 1 was amber and 4 were classified as ‘holding code’ or ‘on hold’. These classifications relate to both financial and physical delivery status of the projects. For Housing Revenue Account (HRA) delivery, status is not recorded for some projects, but where delivery status is recorded the majority of projects were on track. For example, 33 were on target (green) for financial delivery and 30 were on target (green) for physical delivery. 1 project was classified as being slightly off target (Amber) for financial delivery and 1 amber for physical delivery, with 2 categorised as significantly off target (Red) for financial delivery and 3 significantly off target (Red) for physical delivery. 11 were complete for financial delivery and 13 complete for physical delivery. 2. Internal performance indicators for asset management referenced in the Best Value Thematic Audit 2025/26 and the Council Plan Year End Progress Reporting (September 2025) show that the council reports
Page 23
2. Governance and performance | 20 Judgements Evidence performance against 31 internal asset management indicators. Not all indicators have data or RAG statuses reported, but of the 21 where RAG statuses are assigned: • 13 indicators were reported as green • 5 indicators were reported as amber • 3 indicators were reported as red. 3. Examples of indicators with a green status include: the proportion of operational buildings that are suitable for their current use; percentage of council dwellings that are energy efficient (LGBF) and the number of trees planted under the North Ayrshire 2030 Tree Planting Strategy. Examples of amber indicators include the percentage of council dwellings that meet the Scottish Housing Quality Standard (LGBF); overall carbon emissions (tonnes) (non-domestic council estate) and the number of council assets under community management (cumulative). Examples of red indicators include: the total installed capacity of low-carbon heat and electricity generation across the council estate; percentage of total household waste recycled and the number of new build housing units reaching completion (non-cumulative). 4. Specific asset management actions are reported regularly within the Council’s corporate performance management system. Screenshots provided by the council show examples of actions and performance indicators for the Fleet, Roads and Open Space Asset Management Plans. Details such as start date, status, progress and next update date are being logged and monitored for actions within the performance management system. We can also see that targets, expected outcomes, results and trend of performance indicators are also reported within the Performance Management System. 5. North Ayrshire Council has demonstrated mixed trend performance over time against the relevant Local Government Benchmarking Framework (LGBF) asset management indicators. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators. For example: • In 2024/25, 95.2 per cent of the council’s operational buildings were deemed suitable for their current use. Performance against this indicator has shown a 6.6 percentage point improvement since 2013/14 - which
Page 24
2. Governance and performance | 21 Judgements Evidence is above the Family Group average of 90.5 per cent and the national average of 85.74 per cent. Performance has been consistently high with the council ranked in the top quartile for the last three years. • The council’s performance in relation to the percentage of the internal floor area of operational buildings in a satisfactory condition has shown a decline of 4 percentage points however it has consistently been above the Family Group (88.4 per cent) and national (90.3 per cent) averages since 2013/14. The Council ranked seventh in 2024/25 - an improvement from the previous year. • In 2024/25, 94 per cent of council dwellings met the Scottish Quality Housing Standards. This represents a small decline of 2.3 percentage points since 2013/14. It followed the national trend but experienced a steeper decline with the onset of the Covid-19 pandemic than other councils and is yet to fully recover to pre-covid performance levels. The council has displayed sharp improvement in the previous three years and is above the Family Group average of 85.9 per cent and the National average of 82.9 per cent. Performance improvement in the most recent year was 17.1 per cent, above the national average of 5.1 per cent. The council is currently ranked third nationally against this indicator. • Data for the proportion of council dwellings that are energy efficient has not been collected since 2021/22. Energy efficiency targets for social housing are temporarily on hold pending the development of a new standard that aligns with Scotland's net zero target. Reported performance for North Ayrshire Council in 2021/22 was 97.67 per cent, following the national improvement trend. The Council remains consistently above the Family Group average of 91.8 per cent and the national average of 87.6 per cent. It ranked fourth nationally against this indicator.
Page 25
2. Governance and performance | 22 Exhibit 2 Trend in performance against Local Government Benchmarking Framework indicators North Ayrshire Council has demonstrated mixed trend performance over time against the relevant Local Government Benchmarking Framework (LGBF) asset management indicators. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators. Source: Audit Scotland using Local Government Benchmarking Framework
Page 26
3. Partnership working and community engagement | 23 3. Partnership working and community engagement 6. It is essential that councils consider how they can collaborate across services and with other public and third sector organisations to manage assets. This has the potential to achieve savings, better align service provision and create opportunities for joint working. Councils should also have transparent and robust processes in place for supporting and assessing community asset transfer requests and engaging with their communities on asset management plans and priorities. Findings and evidence relating to the council’s partnership working and community engagement arrangements Judgements Evidence 8. North Ayrshire Council works collaboratively with a range of partners to optimise how assets are used to provide services 1. Partnership working is a key theme throughout North Ayrshire Council’s Corporate Asset Strategy and Plans (December 2025). The council has demonstrated that it works collaboratively with a range of partners to optimise how assets are used to provide services, as well as considering new and collaborative ways of using its assets through place-based approaches. For example: • North Ayrshire Council is working in partnership with the Scottish and UK Governments, and neighbouring councils to coordinate over £250 million of investment through the Ayrshire Growth Deal. The deal aims to strengthen local and national economies creating around 7,000 new jobs and positioning Ayrshire as a world class business region for space, energy, marine, manufacturing and tourism industries. Confirmed funding includes £103 million from each government, as well as £45.5 million from the three Ayrshire Councils, with delivery over a 10-year period and the potential to attract around £300 million of private investment. • As part of the Ayrshire Growth Deal, there are a range of assets being developed including the i3 Digital Process Manufacturing Centre and Flexible Business Space. This investment aims to deliver a Digital Process Manufacturing Centre alongside approximately 8,830 square meters of flexible, energy efficient
Page 27
3. Partnership working and community engagement | 24 Judgements Evidence manufacturing space, building on existing life sciences activity. The development is intended to support research and development, start-up activity, the growth of life sciences businesses and other advanced manufacturing opportunities. Delivery of the Digital Process Manufacturing Centre is being taken forward in partnership with the University of Strathclyde and the Centre for Process Innovation. The Centre will provide manufacturing businesses with access to digital and data driven manufacturing expertise for developing new technology. It will also act as a pilot for larger, permanent facilities within the region. • Early projects at the Digital Process Manufacturing Centre have demonstrated benefits such as improvements in productivity, broad industry participation, outreach and education for young people and an anticipated £2 million boost to the local economy. 9. North Ayrshire Council has a clear and transparent approach to supporting and assessing Community Asset Transfer requests and can demonstrate how it has worked with communities to inform decision making in relation to specific assets. 1. North Ayrshire Council supports communities to take ownership of assets through the Community Asset Transfer (CAT) process. For example, there is a clear and transparent process in place to engaging with communities in asset management planning through its Community Asset Transfer policy. The CAT policy is publicly available on the council’s website and was recently updated in June 2024. The policy also sets out clear aims of CAT requests including benefits to the local community, voluntary organisations and community groups, as well as leverage to attract new funding and opportunities for partnerships with access to resources out with the council. There is a clear assessment process in place whereby applicants must provide a sustainable business proposal, demonstrate clear demand for proposed activity, demonstrate capacity to manage the asset, as well as showing they have good governance and robust financial systems in place. The proposal must also contribute to the achievement of the Council’s outcomes and not duplicate activities already provided within the local community. The process of making a formal application for transfer is set out in a clear two stage decision making process, stage one being the formal application for transfer, followed by stage two the Cabinet decision. The council will then support successful applicants to develop viable proposals during the implementation and handover stage, whereby a contract will be drawn up between the council and applicant setting
Page 28
3. Partnership working and community engagement | 25 Judgements Evidence out support provided by the council (eg, economic development, finance etc) to enable the group to meet its responsibilities. 2. The council has also provided recent examples of Community Asset Transfer requests to show how the policy is being applied in practice. These requests demonstrate transparency against the CAT policy criteria including community benefit, sustainability and the impact on council services. The examples also provide clear evidence that community engagement has influenced decision making regarding the transfer of specific assets. For example: Community Asset Transfer: Brisbine Centre in Largs • In February 2025, Cabinet approved plans for a Community Asset Transfer of the Brisbine Centre in Largs, responding to a community-led initiative and application from Clyde Coast and Cumbraes Men’s Shed to acquire the building from the council. The rationale for the asset transfer is clear, with ownership enabling the Men’s Shed to enhance the facility, support the expansion of its membership and increase opportunities for community engagement, as well as generating wider local benefits such as maintenance undertaken by local businesses, contributing to the local economy and supporting the principles of Community Wealth Building. • Community outcomes such as reduced isolation, improved wellbeing, increased volunteering and local economic benefits are explicitly cited as reasons for approving the transfer and applying a 95 per cent discount to the property valuation under powers to dispose of assets below market value where community benefit is demonstrated. The report states that this reflects the condition of the facility, the organisation’s investment to date, savings made against future upkeep and the potential social return on investment, noting that the group are in a position to fund the requested amount of £3,700. These factors are translated into formal Cabinet recommendations, with the report clearly setting out how the Men’s Shed proposal supports the council’s key priorities with alignment to wellbeing, communities and local democracy, climate change and Community Wealth Building priorities. Community Asset Transfer: Toilet block and land at Ardrossan South Beach
Page 29
3. Partnership working and community engagement | 26 Judgements Evidence • A January 2023 Cabinet report seeks approval for a 25- year lease of the toilet block and adjacent land at Ardrossan South Beach to Ardrossan Community Development Trust (ACDT). There is a clear rationale for the Community Asset Transfer which is to enable community led regeneration of Ardrossan South Beach, maximise social value, and support delivery of accessible facilities, economic activity and community wellbeing. In particular, the report states that the CAT will enable ACDT to deliver an agreed programme of regeneration work, supported by secured funding from the National Lottery Communities Fund, Scottish Government Regeneration Capital Grant Fund and North Ayrshire Council. The Community Asset Transfer will also provide a sustainable base for local community activity, including modern beach visitor facilities, an accessible play area, cafe space, beach huts for community and social enterprise use as well as improved public amenities. • The report shows that community engagement has directly influenced decision making, informing the proposed use of the asset and shaping the design and delivery choices. Extensive community consultation was carried out, including a two-day community workshop in February 2020, community engagement days in August and September 2021 attended by almost 200 people, and a community survey of 438 local people in September 2021. The survey results show strong public support for the project, anticipated improvements in wellbeing and accessibility as well as expected economic and social benefits. A social return on investment forecast, informed by stakeholder consultation, concludes that every £1 invested would create £5.68 of social value. These factors are translated into Cabinet recommendations to inform their decision about the transfer. The report also clearly sets out how the proposals within the CAT support North Ayrshire Council Plan priorities as well as the key pillars of Community Wealth Building.
Page 30
Best Value thematic work – Asset management North Ayrshire Council How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit.scot www.audit.scot AS.5.0