Internal Audit and Corporate Fraud Action Plans Quarter 1 Update
North Ayrshire Council · 28 August 2025
Back to Audit and Scrutiny Committee — 28 August 2025 and its agenda
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NORTH AYRSHIRE COUNCIL 28 August 2025 Audit and Scrutiny Committee Title: Internal Audit and Corporate Fraud Action Plans: Quarter 1 Update Purpose: To advise the Audit and Scrutiny Committee on the progress made by Council Services in implementing the agreed actions from Internal Audit and Corporate Fraud reports as at 30 June 2025. Recommendation: That the Committee (a) notes the current position with the implementation of Internal Audit and Corporate Fraud actions; and (b) challenges those Services that have not implemented actions within the previously agreed timescales. 1. Executive Summary 1.1 The CIPFA document 'Audit Committee Principles in Local Authorities in Scotland' highlights that Audit Committees should monitor and review the progress made in implementing audit recommendations. 1.2 Service managers are responsible for ensuring that agreed actions arising from Internal Audit and Corporate Fraud reviews are implemented. This provides assurance that identified control weaknesses have been addressed and are being managed effectively. 1.3 All actions are monitored on the Pentana system and service managers are responsible for updating Pentana as they progress each action. This enables Internal Audit to monitor progress on a 'real-time' basis and address any delays in implementation. 1.4 This report details the position as at 30 June 2025. 2. Background 2.1 The last report to the Audit and Scrutiny Committee on 29 May 2025 highlighted that there were 4 actions outstanding at the end of March 2025 and all 4 actions had not yet passed their due date. 2.2 In addition to these 4 carried forward actions, there have been 26 new actions agreed, giving a total of 30 action points for review. 2.3 Services have completed 16 actions since the last report. All Council Services are required to retain evidence of work carried out in completing their actions and Internal Audit carries out 'spot-checks' on a sample of completed actions on an ongoing basis.
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2.4 Of the remaining 14 actions, one was only partially completed as at 30 June 2025 and the remaining 13 actions were not due for completion until after that date. 2.5 Appendix 1 to this report provides the Committee with full details of the one action that was not completed within the agreed timescales. 3. Proposals 3.1 It is proposed that the Committee (a) notes the current position with the implementation of Internal Audit and Corporate Fraud actions; and (b) challenges those Services that have not implemented actions within the previously agreed timescales. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 The effective implementation of agreed Internal Audit and Corporate Fraud actions helps to support the efficient delivery of the strategic priorities within the Council Plan 2023-2028. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None.
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Consumer Duty 4.10 None. 5. Consultation 5.1 Council Services are consulted during the completion of each Internal Audit and Corporate Fraud review and have also provided updates on progress made in implementing action points. Mark Boyd Head of Service (Finance) For further information please contact John McCallum, Senior Manager (Audit, Fraud, Safety, Risk & Insurance), on 01294 324607. Background Papers None.
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Appendix 1 - Actions due by 30 June 2025 but not started or partially completed Code IA2025PA005c Description Action Description: An SLA should be developed between Housing, HSCP, Building Services and PMI services which outline the agreed arrangements for managing additional charges. The reasons for additional charges should be recorded and subsequently approved by HSCP management. Finding: A review of jobs completed revealed instances where the final invoice amounts were higher than the agreed amount for the jobs as keyed into the Building Services URM system. On further examination of the cases identified, we found that no further approval had been obtained from a senior OT, or Service Level Agreement (SLA) put in place between HSCP and Building Services, to support the additional charges. Risk: Unauthorised financial expenditure or inability to properly monitor budget due to unplanned expenditure. Priority 2 Latest Note SLA awaiting final sign off by all partners. Circulation of SLA expected to take place imminently to allow for final agreement and sign off. Target completion date 30/9/25. Progress Bar Original Due Date 30-Apr-2025 Due Date 30-Apr-2025 Parent Code & Title IA2025PA005 Aids and Adaptations Managed By Yvonne Baulk; Sharon Hackney Assigned To Stephen Connor; Beth Griffin