Agenda Document Pack - Audit and Scrutiny Committee - 28/08/2025
North Ayrshire Council · 28 August 2025
Back to Audit and Scrutiny Committee — 28 August 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Audit and Scrutiny Committee A Meeting of the Audit and Scrutiny Committee of North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Thursday, 28 August 2025 at 10:00 to consider the undernoted business. Meeting Arrangements - Hybrid Meetings This meeting will be held on a predominantly physical basis but with provision, by prior notification, for remote attendance by Elected Members in accordance with the provisions of the Local Government (Scotland) Act 2003. Where possible, the meeting will be live-streamed and available to view at https://north-ayrshire.public- i.tv/core/portal/home. 1 Declarations of Interest Members are requested to give notice of any declarations of interest in respect of items of business on the Agenda. 2 Minutes The accuracy of the Minutes of (a) the Meeting of the Audit and Scrutiny Committee held on 29 May 2025 and (b) the Special Meeting of the Audit and Scrutiny Committee held on 19 June 2025 will be confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973 3 2024/25 Elected Member Requests Report Submit report by the Head of Democratic Services informing of the Council's performance relating to Elected Member requests handled in Financial Year 2024/25 (copy enclosed). 4 2024/25 Complaint Report Submit report by the Head of Democratic Services informing of the Council's complaint performance and volumes and trends of complaints received in Financial Year 2024/25 (copy enclosed). 1
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 5 Elected Member Development Submit report by the Head of Democratic Services providing information and seeking views on the development sessions provided to Elected Members over the 12 months from September 2024 to August 2025, and on future planned development sessions (copy enclosed). 6 Accounts Commission’s Briefing: Local Government Budgets 2025/26 Submit report by the Head of Finance informing of the key messages identified within the recently published briefing (copy enclosed). 7 Internal Audit Reports Issued Submit report by the Head of Finance informing of the findings of Internal Audit work completed since May 2025 (copy enclosed). 8 Internal Audit and Corporate Fraud Action Plans: Quarter 1 Update Submit report by the Head of Finance advising on the progress made by Council Services in implementing the agreed actions from Internal Audit and Corporate Fraud reports as at 30 June 2025 (copy enclosed). 9 Standing Item of Business: Consideration of future business for scrutiny 10 Urgent Items Any other items which the Chair considers to be urgent. Exclusion of the Public - Para 1 Resolve in terms of Section 50(A)4 of the Local Government (Scotland) Act 1973, to exclude from the Meeting the press and the public for the following item of business on the grounds indicated in terms of Paragraph 1 of Part 1 of Schedule 7A of the Act. Non Disclosure of Information In terms of Standing Order 21 (Disclosure of Information), the information contained within the following report is confidential information within the meaning of Section 50A of the 1973 Act and shall not be disclosed to any person by any Member or Officer. 11 Investigation Reports Issued Submit report by the Head of Finance informing of investigation reports finalised since the last meeting (copy enclosed). 2
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Webcasting Please note: this meeting may be filmed/recorded/live-streamed to the Council's internet site and available to view at https://north-ayrshire.public- i.tv/core/portal/home, where it will be capable of repeated viewing. At the start of the meeting, the Provost/Chair will confirm if all or part of the meeting is being filmed/recorded/live-streamed. You should be aware that the Council is a Data Controller under the Data Protection Act 2018. Data collected during the webcast will be retained in accordance with the Council’s published policy, including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Generally, the press and public will not be filmed. However, by entering the Council Chambers and using the press or public seating area, you acknowledge that you may be filmed and that any information pertaining to you contained in the video and oral recording of the meeting will be used for webcasting or training purposes and for the purpose of keeping historical records and making those records available to the public. In making this use of your information the Council is processing data which is necessary for the performance of a task carried out in the public interest. If you have any queries regarding this and, in particular, if you believe that use and/or storage of any particular information would cause, or be likely to cause, substantial damage or distress to any individual, please contact dataprotectionofficer@north-ayrshire.gov.uk 3
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Audit and Scrutiny Committee Sederunt John Bell (Chair) Donald Reid (Vice Chair) Eleanor Collier Cameron Inglis Tom Marshall Matthew McLean Davina McTiernan Donald L. Reid John Sweeney Chair: Apologies: Attending: 4
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Audit and Scrutiny Committee 29 May 2025 At a Meeting of the Audit and Scrutiny Committee of North Ayrshire Council at 10.00 a.m. involving participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) John Bell, Donald Reid, Eleanor Collier, Cameron Inglis and Tom Marshall. Present (Remote Participation) Davina McTiernan and Donald L. Reid. In Attendance (Physical Participation) D. Hammond, Executive Director (Communities and Housing); E. Currie, Principal Manager (Finance) (Health and Social Care Partnership); T. Reaney, Head of Service (Neighbourhood Services) (Place); M. Boyd, Head of Service, D. Forbes, Senior Manager (Strategic Business Partner), J. McCallum, Senior Manager (Audit, Fraud, Safety and Risk) and S. Paisley, Senior Manager (Transformation) (Finance); F. Walker, Head of Service (People and ICT); A. Craig, Head of Service, M. Sugden, Communications Officer (Public Relations) and C. Stewart, Committee Services Officer (Democratic Services) (Corporate Services). In Attendance (Remote Participation) C. Hatton, Chief Executive. Also in Attendance (Physical Participation) D. Jamieson, Audit Scotland. Chair Councillor Bell in the Chair. Apologies John Sweeney. 1. Declarations of Interest There were no declarations of interest by Members in terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors. 2. Minutes The Minutes of the Meeting of the Audit and Scrutiny Committee held on 13 March 2025 were confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973. 3. Update on purple bin lids Submitted report by the Executive Director (Place) providing an update on the actions taken to resolve the issues experienced with purple bin lid defects. Agenda Item 2 5
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Officers were heard in response to Members’ questions. Noted. 4. Code of Corporate Governance Statement 2025/26 Submitted report by the Head of Service (Democratic) seeking approval of the Code of Governance Statement 2025/26. The Code of Corporate Governance Statement 2025/26 was attached at Appendix 1 to the report. Officers were heard in response to Members’ questions. The Committee agreed to (a) approve the Code of Corporate Governance Statement 2024/25, as detailed at Appendix 1 to the report; and (b) otherwise note the content of the report and associated Appendix. 5. Audit Scotland: North Ayrshire Council Best Value Thematic Management Report: Transformation Submitted report by the Head of Service (Finance) on the findings of the recent Audit Scotland report on how councils are redesigning and delivering more efficient services to achieve planned outcomes. D Jamieson, Audit Scotland addressed the committee in terms of the Audit Scotland report, its findings and recommendations. Officers and D. Jamieson were heard in response to Members’ questions. Noted. 6. 2023/24 External Audit Action Plan Update Submitted report by the Head of Service (Finance) on the updated actions identified in the 2023/24 External Audit Action Plan. Appendix 1 to the report provided an update on the management actions taken to date including updated target dates for any outstanding items. Officers were heard in response to Members’ questions. The Committee noted that a briefing note would be prepared by the Head of Service (People & ICT) and issued to Members on the trends of sickness and absence rates of the Council over the last 5 years (including the pre-pandemic year). 7. Annual Governance Statement 2024/25 Submitted report by the Head of Service (Finance) on the Council’s Annual Governance Statement for 2024/25 which will be included within the draft Annual Accounts. The draft Annual Governance Statement was attached at Appendix 1 to the report. Officers were heard in response to Members’ questions. 6
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The Committee agreed to approve the draft Annual Governance Statement as outlined in Appendix 1 to the report. 8. Accounting Policies 2024/25 Submitted report by the Head of Service (Finance) seeking approval of the accounting policies which will be adopted in the preparation of the Council’s Annual Accounts for the year to 31 March 2025. The accounting policies were attached at Appendix 1 to the report. The Committee agreed to approve the accounting policies as outlined in Appendix 1 to the report. 9. Strategic Risk Register 2025/26 Submitted report by the Head of Service (Finance) on the Council’s agreed Strategic Risk Register for 2025/26. The Strategic Risk Register Report 2025/26, with detailed actions, was provided at Appendix 1 to the report. Officers were heard in response to Members’ questions. Noted. 10. Internal Audit Annual Report 2024/25 Submitted report by the Head of Service (Finance) on the work of Internal Audit during 2024/25 and providing an opinion on the governance, risk management and internal control environment of the Council. The Annual Report 2024/25, together with a statement on internal controls, was detailed at Appendix 1 to the report. The Committee agreed to note (a) the content of the annual report detailed at Appendix 1 to the report; and (b) the opinion of the Senior Manager on the Council’s governance, risk management and internal control environment. 11. Corporate Fraud Team Annual Report 2024/25 Submitted report by the Head of Service (Finance) on the work of the Corporate Fraud Team during 2024/25, including the number of referrals for investigation and the outcomes of those investigations. Participation in International Fraud Awareness Week and the National Fraud Initiative was also highlighted. Noted. 12. Internal Audit and Corporate Fraud Action Plans: Quarter 4 Update Submitted report by the Head of Service (Finance) on the progress made by Council Services in implementing the agreed actions from Internal Audit and Corporate Fraud reports as at 31 March 2025. Noted. 7
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13. Internal Audit Reports Issued Submitted report by the Head of Service (Finance) on the findings of Internal Audit work completed since March 2025. The findings from four audit assignments were detailed at Appendix 1 to the report, together with the respective executive summaries and action plans. Noted. 14. Standing Item of Business: Consideration of future business for Scrutiny Members were invited to consider potential items of scrutiny business for future meetings. In relation to a request by Councillor Marshall and having heard the Head of Democratic Services, it was noted that a report on GLOW and clarification on the extent to which it was used in the schools community in North Ayrshire, including security aspects thereof, would be reported to a future meeting of the Committee, for Members’ information. It was noted that in relation to a request for information, at the previous meeting of the Committee, on the impact of sickness absence levels on the overtime budget of services and loss of service, this information had been provided by the Head of Service (Finance) in an email circulated to Members on 4 April 2025. 15. Urgent Items There were no urgent items. The meeting ended at 11.30 a.m. The full meeting proceedings can be viewed at https://north-ayrshire.public-i.tv/core/portal/home 8
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Audit and Scrutiny Committee 19 June 2025 At a Special Meeting of the Audit and Scrutiny Committee of North Ayrshire Council at 2.00 p.m. involving participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) John Bell, Donald Reid, Matthew McLean, Davina McTiernan and John Sweeney. Also Present Todd Ferguson and Tony Gurney. Present (Remote Participation) Eleanor Collier, Cameron Inglis, Tom Marshall and Donald L. Reid. In Attendance (Physical Participation) T. Reaney, Head of Service (Neighbourhood Services) (Place); A. Craig, Head of Service, J. Hutcheson, Senior Communications Officer (Media and Internal Communications), C. Stewart, Committee Services Officer and H. Young, Senior Committee Services Officer (Democratic Services) (Corporate Services). Chair Councillor Bell in the Chair. 1. Declarations of Interest There were no declarations of interest by Members in terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors. 2. Call-In: Implementation of the National 20mph Speed Limit Strategy Submitted report by the Head of Service (Democratic) on a call-in request received in respect of a decision taken by Cabinet on 3 June 2025 on the proposed implementation of the National 20mph Speed Limit Strategy within North Ayrshire (Implementation plans were attached at Appendix 1 to the report). The original Cabinet report was attached at Appendix 1 to the report. Appendix 2 to the report contained a briefing note provided by the Head of Service (Neighbourhood Services) in response to the matters raised in the call-in request form. The Cabinet on 3 June 2025 agreed to (a) note the Scottish Government’s National Strategy for 20mph in Urban areas; and (b) approve the implementation of 20mph speed limits on appropriate roads as detailed in the implementation plans attached at Appendix 1 to the report. Subsequently, a call-in request was received from Councillors Todd Ferguson, Gallacher and Stalker in the following terms:- Reason for Call-In 9
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“The Scottish Government’s National 20mph Strategy is aspirational in tone but experimental in scope. While well-intentioned, its widespread implementation lacks sufficient evidence of efficacy, especially on roads already exhibiting average speeds below 25mph. This policy, if adopted without amendment, risks diluting police and Council resources, adversely affecting public transport efficiency, and imposing unjustifiable burdens on the public purse—contrary to the financial prudence owed to North Ayrshire’s taxpayers. The Strategy also raises legitimate legal and democratic concerns regarding adequacy of consultation, particularly among working residents, rural communities, and small business owners who will bear the practical consequences of slower road speeds and delayed logistics. As a matter of public administration, the Council must guard against overreach in regulatory intervention without evidence-based justification and must uphold the principle of proportionality, particularly when imposing restrictions on public freedoms.” Desired Outcome “The Conservative Group respectfully calls upon Cabinet to: 1. Suspend the blanket implementation of the 20mph speed limit across all roads identified in Appendix 1, pending the outcome of a full review of cost- effectiveness, enforceability, and public consultation. 2. Commission an independent impact assessment, consistent with principles of Best Value as defined in the Local Government in Scotland Act 2003, before any further capital expenditure is incurred. 3. Adopt a targeted and proportionate approach, taking into account the feedback from the public consultation referenced above and elected members, with 20mph zones restricted to locations supported by empirical safety data—such as near schools, care facilities, or recorded accident blackspots.” The Head of Democratic Services summarised the procedure for considering the call-in request in terms of Standing Orders and referred to the Cabinet decision. Thereafter, the Members who had requested the call-in were invited to speak and Councillor Ferguson addressed the Committee in support of the call-in request. The Chair then invited Councillor Gurney, as the Cabinet Member for Green Environment and Economy, to address the meeting. Councillor Gurney explained the reasoning for the Cabinet decision and referred to a briefing note from the Head of Service (Neighbourhood Services) provided at Appendix 2 to the report. He was also heard in answer to Members’ questions. The Head of Service (Neighbourhood Services) was then heard in relation to the report presented to Cabinet and on issues raised by the call-in, reference being made to the briefing note at Appendix 2 to the report, as well as in answer to Members’ questions. 10
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Councillor Donald L. Reid, seconded by Councillor McTiernan, moved that the Committee agree not to support the call-in request and that the decision of Cabinet should stand. As an amendment Councillor Inglis, seconded by Councillor Marshall, moved that the Committee agree to accept the terms of the call-in request and refer the matter to the Cabinet for further consideration. Thereafter, on a division and a roll call vote, there voted for the amendment, Councillors Inglis, Marshall and McLean (3) and for the motion, Councillors Bell, Reid, Collier, McTiernan, Donald L. Reid and Sweeney (6). The motion was declared carried. Accordingly, the Committee agreed (a) not to support the call-in request; and (b) that the decision of Cabinet should stand. The meeting ended at 3.20 p.m. 11
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NORTH AYRSHIRE COUNCIL 28 August 2025 Audit and Scrutiny Committee Title: 2024/25 Elected Member Requests Report Purpose: To inform the Audit and Scrutiny Committee of the Council's performance relating to Elected Member requests handled in Financial Year 2024/25. Recommendation: That the Committee notes the report and the information provided. 1. Executive Summary 1.1 This report details Elected Member requests information covering the period 1 April 2024 to 31 March 2025 (referred to in the report as 2024/25). 2. Background 2.1 This section contains information and commentary on Elected Member requests handled by the Council during Financial Year 2024/25. 2.2 Volume of Elected Member requests actioned during the year (including MP/ MSP): Volume of requests actioned during year 2,998 2.2.1 Councillor requests can be handled by Services under two stages: Stage One – non-complex requests with a timescale to action of 5 working days Stage Two – complex requests with a timescale to action of 20 working days Agenda Item 3 13
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2.2.2 The table below details all Councillor requests actioned during the year: 2024/25 Total Actioned 2,287 Stage One requests actioned 2,284 Stage One requests actioned on time 2,010 % Stage One requests actioned on time 88% Stage Two requests actioned 3 Stage Two requests actioned on time 3 % Stage Two requests actioned on time 100% Total % of requests actioned on time 88% 2.2.3 Year on Year comparison 2.2.4 The table below shows a comparison of the volume of Councillor requests received and actioned over the last three years: Councillor Requests 2022/23 2023/24 2024/25 Total Actioned 2,905 2,307 2,287 Stage One requests actioned 2,903 2,305 2,284 Stage One requests actioned on time 2,588 2,003 2,010 % Stage One requests actioned on time 89% 87% 88% Stage Two requests actioned 2 2 3 Stage Two requests actioned on time 1 2 3 % Stage Two requests actioned on time 50% 100% 100% Total % of requests actioned on time 89% 87% 88% 14
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2.3 Volume of requests per Directorate 2.3.1 Councillor Stage One requests (5 working day timescale to action) Directorate Department No. of requests actioned No. actioned on time % actioned on time Average no. of days to resolve Stage Ones Target (days) Corporate Services Committee & Member Services 1 1 100% 10 5 Customer Services 21 16 76% 4.7 5 Financial Mgmt & Revenues 1 1 100% 1 5 Legal Services 17 14 82% 3 5 Communities & Housing Community Facilities 7 6 86% 3.4 5 Community Learning & Dev. 6 6 100% 2.3 5 Information & Culture 3 3 100% 1.6 5 Sports & Activity 3 3 100% 4.7 5 Building Services 95 83 86% 3.3 5 Housing 520 458 88% 3.5 5 Planning 34 33 97% 2.9 5 Protective Services 33 27 82% 3.6 5 Education Education 38 29 76% 3.9 5 Facilities Management 10 9 90% 3.2 5 Place Roads 551 519 94% 2.6 5 Streetscene 365 320 88% 3 5 Waste 296 256 86% 3.3 5 Business Development 4 4 100% 2 5 Regeneration 36 25 69% 4.6 5 Energy/Sustainability 15 14 93% 4.2 5 PMI 124 107 86% 3.9 5 Transport 3 3 100% 3 5 Health & Social Care Partnership Children, Families & Justice 18 15 83% 3.3 5 Finance & Transformation 3 3 100% 1.3 5 Health & Community Care 65 47 72% 4.8 5 Mental Health 11 5 100% 3.2 5 Other (Money Matters etc) 4 4 100% 2 5 2,284 2,010 88% 3.2 5 2.3.2 Councillor Stage Two requests (20 working day timescale to action) Directorate Department No. of requests actioned No. actioned on time % actioned on time Average no. of days to resolve Stage Ones Target (days) HSCP Health & Community Care 1 1 100% 3 20 Place Roads 2 2 100% 1.5 20 3 3 100% 2 20 15
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2.4 MP/MSP requests 2.4.1 MP and MSP requests have a set timescale of 10 working days to action and the table below details the requests actioned during the period: 2024/25 Requests actioned 711 Requests actioned on time 596 % of requests actioned on time 84% 2.4.2 Councillor and MP/MSP requests that did not meet timescale was due to multiple factors, including: • administrative errors • employee/officer availability for reviewing/approving responses prior to issue • reduced resources, causing delays investigating requests • further information required to respond to requests (including from third parties) • operational pressures. 2.4.3 A comparison table showing MP/MSP requests over the last 3 financial years showing volume received and performance: MP/MSP Requests 2022/23 2023/24 2024/25 Requests actioned 562 670 711 Requests actioned on time 495 496 596 % of requests actioned on time 88% 74% 84% 2.5 Recording Councillor requests 2.5.1 The table below shows how Councillor requests were logged throughout the year: Volume % Volume of Councillor requests recorded 2,292 Volume logged by Councillors 1,280 56% Volume logged by Member Services 493 21% Volume logged via other channels 519 23% 2.5.2 Of the 2,292 requests logged by Councillors during the period, 21 Councillors used their NAC online Member accounts to log requests themselves. 2.6 Issue identified regarding follow up actions for Councillor requests 2.6.1 At a previous Audit and Scrutiny Committee it was noted that that some Councillor requests that required follow up actions were being closed with no further updates being provided, causing difficulties for Councillors relaying closure information to constituents. 16
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2.6.2 To address this, additional questions were added to the Elected Member request form (from 1 October 2024) allowing services to record if a request had outstanding/follow up actions, what these were and when they would be completed by. 2.6.3 The number of Councillor requests that had follow up actions since the introduction of the new questions was 108, of which 88 had been marked as complete at the time of producing this report. 3. Proposals 3.1 It is proposed the Committee approves the report and recognises the Council’s performance in handling Elected Member requests in relation to Section 2 above. 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 None. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. 17
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Consumer Duty 4.10 None. 5. Consultation 5.1 None. Aileen Craig Head of Democratic Services For further information please contact Aileen Craig, Head of Democratic Services, on 01294 324 125. Background Papers None 18
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NORTH AYRSHIRE COUNCIL 28 August 2025 Audit and Scrutiny Committee Title: 2024/25 Complaint Report Purpose: To inform the Audit and Scrutiny Committee of the Council's complaint performance and volumes and trends of complaints received in Financial Year 2024/25. Recommendation: That the Committee notes the report and the information provided. 1. Executive Summary 1.1 This report details complaint information relating to North Ayrshire Council during Financial Year 2024/25, covering the period 1 April 2024 to 31 March 2025. 1.2 To allow comparisons to be made the report also includes some complaint data relating to 2022 and 2023. 1.3 Performance is measured through several Scottish Public Services Ombudsman (SPSO) performance indicators, some of which have national targets. 2. Background 2.1 This section contains statistical information and commentary on some of the key complaint performance indicators. More information relating to the indicators can be found in the attached report. 2.2 Volume of complaints received Year Volume of complaints 2022/23 2,576 2023/24 1,948 2024/25 2,039 2.2.1 A slight increase in complaints received when comparing 2024 with 2023 but still a 21% drop when compared with 2022. 2.3 Complaint outcomes for closed complaints in 2024/25 Agenda Item 4 19
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Stage One Outcome % closed as Resolved* 47% % closed as Upheld 21% % closed as Partially Upheld 11% % closed as Not Upheld 21% Stage Two Outcome % closed as Resolved* 10% % closed as Upheld 9% % closed as Partially Upheld 26% % closed as Not Upheld 53% 2.3.1 *Up to 31 March 2021, a complaint that meets our complaint criteria could be upheld, partially upheld or not upheld. From 1 April 2021 a fourth outcome became available to use called ‘Resolved’. Resolved complaints are where the Council has taken action to address a problem or issue without deciding on whether there were any failings (this would happen where we agree a solution with the complainant at the outset without needing to investigate the complaint). 2.3.2 Complaint outcome analysis can be found in the attached report. 2.4 Average time in working days for a full response at each Stage Stage One Average number of working days to close Target 2022/23 4.2 5 workings days or less 2023/24 3.8 5 workings days or less 2024/25 3.3 5 workings days or less Stage Two Average number of days to close Target 2022/23 14.9 20 working days or less 2023/24 16.8 20 working days or less 2024/25 15.5 20 working days or less 2.4.1 The average time in working days for a response under both Stages has exceeded the SPSO target response timescales for the last three years. 2.5 Complaints closed within timescale in 2024/25 Stage % closed on time Target Stage One 92% 80% and above Stage Two 93% 85% and above 2.5.1 The volume closed on time includes extended complaints that met their new due dates. 2.5.2 Further details of complaints not closed on time are contained in the attached report. 20
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2.6 Changes or Improvements made as a result of complaints 2.6.1 Services cannot always implement improvements because of complaints due to several factors, including the feasibility of making changes and resource/budget considerations. That said, improvements were made in some Services and a selection are noted in the attached report. 2.7 Compliments 2.7.1 The Council received and recorded many compliments during the year. Some praised specific individuals or teams, some related to more than one Service and some were raised by employees complimenting other employees. A selection can be found in the attached report. 3. Proposals 3.1 It is proposed the Committee approves the report and recognises the Council’s complaint handling performance in relation to Section 2 above. 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 Two Stage Complaint Handling Procedure supports the Council's key priority of delivering more effective and efficient service provision. It demonstrates commitment through focussing on, and determining, trends for service improvement and delivery for North Ayrshire residents, customers and visitors. Community Wealth Building 21
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4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 None. Aileen Craig Head of Service for Democratic Services For further information please contact Darren Miller, Complaint Manager, on 01294 322 988. Background Papers North Ayrshire Council Complaint Report 2024/25 22
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North Ayrshire Council Annual Complaint Report 2024 to 2025 23
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Introduction 3 1 Volume of complaints closed 4 2 Volume of complaints closed on time at both Stages 6 3 Volume of complaints not closed on time per Directorate 6 4 Key complaint topics 9 5 Average time in working days for a full response 10 6 Extended complaints 11 7 Complaint Outcomes 12 8 Improvements made as a result of complaints 14 9 Compliments 15 10 SPSO complaint referrals 16 11 Glossary 18 24
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Introduction North Ayrshire Council always seeks to deliver the best services possible to its tenants, residents and customers but it is recognised that dissatisfaction will sometimes occur. When it does, we want to know what went wrong, why it went wrong and what we can do to make things right. The Council recognises that valuable lessons can be learned from complaints which are defined as being expressions of dissatisfaction from members of the public about actions, or lack of actions, or about the standard of service provided by or on behalf of the Council. The Council’s complaint handling procedure (CHP) has two stages for handling complaints from the public. Stage One complaints (also known as Frontline Resolution) are straightforward, non-complex complaints the Council can resolve at the initial point of contact or as close to the point of service delivery as possible. The Council has up to 5 working days to resolve these. Stage Two complaints (also known as Investigations) are complaints the Council is typically unable to resolve at Stage One and needs more time to carry out further investigation. This may be because the nature of the complaint is complex, serious or high risk. The Council has up to 20 working days to resolve these. This report details the Council’s complaint handling performance covering financial year 2024 to 2025 (1 April 2024 to 31 March 2025). Performance is measured via several Scottish Public Services Ombudsman indicators (some of which have national targets) and complaint data relating to previous years has been included in certain sections to allow comparisons to be made. Reporting complaints is a statutory requirement and is monitored by Audit Scotland. This report has been reviewed for accessibility prior to publication. 25
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1 Volume of complaints closed The Council received 2,039 complaints during the year and closed 2,022. The table below provides a breakdown of the closed complaints per Directorate: Directorate Volume Communities & Housing 435 Corporate Services 131 Education 234 Health & Social Care 143 Place 1,076 Multi-Service 3 The following tables highlight complaint volumes per Directorate under each Stage: Corporate Services Team Stage One Stage Two Committee & Member Services 0 1 Communications 1 0 Customer Services 104 9 Finance 4 0 IT 3 0 Legal Services 6 2 Policy, Performance & Elections 1 0 Total 119 12 Communities & Housing Team Stage One Stage Two Building Services 237 10 Community Facilities 2 1 Housing 121 28 Information & Culture 5 0 Planning 8 4 Protective Services 15 4 Total 388 47 Education Team Stage One Stage Two Education (HQ) 23 22 Education (Schools) 132 38 Facilities Management 19 0 Total 174 60 Health & Social Care Team Stage One Stage Two Children, Families & Justice 24 12 26
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Team Stage One Stage Two Finance & Transformation 2 3 Health & Community Care 76 12 Mental Health 3 10 Support Services 1 0 Total 106 37 Place Team Stage One Stage Two Growth & Investment 1 0 Property Management & Investments 168 13 Regeneration 2 0 Roads 80 17 Streetscene 99 8 Sustainability 2 0 Transport 3 0 Waste Services 676 7 Total 1,031 45 Multi-Service Team Stage One Stage Two Complaints involving more than one Service 0 3 Total 0 3 Although there is no target for the volume of complaints handled under each Stage, the Council seeks to maximise closure at Stage One wherever possible and 90% were handled at this Stage during the period. Some Services handled all their complaints at Stage One. Some Services that received high complaint volumes handled few of them at Stage Two, notably Building Services, Property Management & Investments, Streetscene and Waste Services due to the straightforward nature of the complaints received. Whilst most of Waste Services complaints related to missed bin collections and assisted pullouts, the number of complaints received for the service in 2024/25 showed a reduction of 27% compared to 2023/24. Despite ongoing challenges regarding absence levels, the service remains focused on service delivery. 102,000 household waste bins are emptied each week, which equates to 5.3 million collections over the year. The number of complaints therefore received in 2024/25 is equivalent to 0.013% of all bins collected. Year on Year comparison The table below shows a comparison of the volume of complaints received over the last three years: Year Volume of complaints 2022/23 2,576 27
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Year Volume of complaints 2023/24 1,948 2024/25 2,039 Whilst there has been a slight increase in complaints received when comparing 2024 with 2023, it is still a 21% drop when comparing 2024 with 2022. The sustained lower volume could be partly attributable to the complaint page on the Council’s website being enhanced in 2023, which now includes more information on what the Council does not consider a complaint and offers appropriate routes to raise such matters. 2 Volume of complaints closed on time at both Stages Stage Percentage closed on time Target Stage One 92% 80% and above Stage Two 93% 85% and above The volume closed on time includes complaints that had their timescales extended and met the new due dates. 3 Volume of complaints not closed on time per Directorate This section provides details of complaints not closed on time under each Stage and includes extended complaints that did not meet their new timescales. Stage One 141 complaints did not meet timescale during the year and the volumes are noted below. Corporate Services Department Volume Customer Services 2 Communities & Housing Department Volume Building Services 18 Community Facilities 1 Housing 16 Planning 1 Protective Services 3 Education Department Volume Education (HQ) 7 Education (Schools) 11 28
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Health & Social Care Department Volume Children & Families 5 Health & Community Care 10 Mental Health 1 Place Department Volume Property Management 13 Roads 2 15Streetscene 15 Waste Services 36 Multiple reasons were noted as to why the above complaints did not meet timescale, including administrative errors, complaint handlers awaiting information to progress complaints, employee availability, resourcing issues and operational pressures. Of the 141 Stage One complaints that did not meet timescale, 38 had their timescales extended the additional 5 working days but none met their new due dates. In relation to the 103 complains that did not have their timescales extended, many could have been extended given 77% were closed within the additional 5 working day timescale allowance. Stage Two 14 complaints did not meet timescale during the year and the volumes are noted below. Corporate Services Department Volume Legal Services 2 Communities & Housing Department Volume Building Services 1 Housing 4 Education Department Volume Education (Schools) 4 Health & Social Care Department Volume Mental Health 1 Place Department Volume Waste Services 1 Multi-Service 29
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Department Volume Multi-Service 1 Reasons noted as to why the above complaints did not meet timescale are similar to those that did not meet timescale at Stage One. Of the 14 Stage Two complaints that did not meet timescale, 2 had their timescales extended but neither met their new due dates. 30
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4 Key complaint topics Key topics for upheld and partially upheld complaints for Services are listed below. Services will not be listed where there were low complaint volumes that did not allow meaningful analysis. Corporate Services Service Key complaint topic Customer Services Communication Customer Services Incorrect information provided Communities & Housing Service Key complaint topic Building Services Communication Building Services Follow up work not done Building Services Quality issues (work incomplete or poor workmanship) Education Service Key complaint topic Education (HQ & schools) Sensitive issues relating to teachers and/or pupils Education (HQ & schools) Service delivery/provision Education (HQ & schools) Employee Actions (alleged or perceived) Health & Social Care Service Key complaint topic All HSCP Services Service delivery/provision All HSCP Services Employee Actions (alleged or perceived) Place Service Key complaint topic Property Management & Investment Gas Central Heating (maintenance etc.) Property Management & Investment Planned Works Roads Parking or Parking Enforcement Team Streetscene Tree/grass/verge/hedge cutting issues Waste Services Delays with new waste bin deliveries Waste Services Failed bulky waste collections Waste Services Missed waste bin/assisted collections (all colours) ‘Employee Actions (alleged or perceived)’ appears as a key topic for some Services but the definition is broad and has been used where complainants alleged or perceived employee actions or behaviour to be unacceptable. Whilst investigations may determine this is not always the case, where unacceptable behaviour is identified Services will take the appropriate action to address. 31
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5 Average time in working days for a full response The average time in working days to close complaints under both Stages during the year is noted below. Values for previous years have been included to allow comparisons to be made. Any complaints that had their timescales extended have been excluded from the calculations. Stage One Average number of working days to close Target 2022 4.2 5 workings days or less 2023 3.8 5 workings days or less 2024 3.3 5 workings days or less Stage Two Average number of days to close Target 2022 14.9 20 working days or less 2023 16.8 20 working days or less 2024 15.5 20 working days or less The average time to close complaints under both Stages has consistently exceeded target. The tables below detail Services that did not meet the average time in working days for a response under either Stage. Services that met the target are not listed and any complaints that had their timescales extended have been excluded from the calculations. Corporate Services Stage Two Average number of working days to close Target Legal Services 42.5 20 workings days or less Two Legal Services complaints were closed on working days 24 and 61. Clarification was sought from one complainant which took a significant number of days for them to respond and a delay was encountered with the other due to several factors, including an oversight on the part of the complaint handler. Communities & Housing Stage One Average number of working days to close Target Community Facilities 9.5 5 workings days or less One Community Facilities complaint was closed on working day 15 and this resulted in the average days target being breached. No reason was given as to what caused the delay. 32
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Education Stage One Average number of working days to close Target Education (HQ) 5.4 5 workings days or less One HQ complaint was closed on working day 34 and this resulted in the average days target being breached. The delay was due to employee availability. Health & Social Care Stage One Average number of working days to close Target Mental Health 7.5 5 workings days or less One Mental Health complaint was closed on working day 11 and this resulted in the average days target being breached. No reason was given as to what caused the delay. 6 Extended complaints 202 complaints had their timescales extended during the year (167 at Stage One and 35 at Stage Two). The complaints related to various Services across all Directorates. There were various reasons for extending, including complainants, third parties and employees being unavailable to assist or support with investigations and/or letter approvals, obtaining additional information to support investigations and resourcing/operational issues. Of the 202 complaints that had their timescales extended, 80% were closed within their new target due dates. 33
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7 Complaint Outcomes The Council has four categories of complaint outcomes. • Resolved complaints are complaints where the Council has taken action to address a problem/issue without needing to decide if there were any failings. • Upheld complaints are complaints where something has gone wrong/not happened and the Council needs to take steps to address. • Partially Upheld complaints are complaints that have multiple complaint elements, some of which are upheld, the rest not. • Not Upheld complaints are complaints that have not been upheld for the following reasons: • they related to internal or external policies • they related to external regulations • upon investigation they were proven to be unfounded/unsubstantiated The tables below detail the number of complaints upheld, partially upheld, not upheld or resolved under both Stages. Stage One Outcome Percentage Closed as Resolved 47% Closed as Upheld 21% Closed as Partially Upheld 11% Closed as Not Upheld 21% Of the 591 complaints that were upheld and partially upheld at Stage One, three services had the highest volume, with Property Management & Investment at 15%, Building Services at 19% and Waste Services at 28%. 53% of all Resolved complaints related to Waste Services (mainly missed bin collections), indicating those complainants simply wanted their bins collected without any need for investigation. Complaints that were not upheld related to internal or external policies and regulations or were complaints that were found to be unsubstantiated. Stage Two Outcome Percentage Closed as Resolved 10% Closed as Upheld 9% Closed as Partially Upheld 26% Closed as Not Upheld 53% Stage Two complaints that were upheld or partially upheld were divided across multiple Services across all Directorates. The reasons for Stage Two complaints being closed as not upheld are the same as those for Stage One. 34
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The tables below detail the outcomes at each stage covering the last three years: Stage One complaints Year Resolved Upheld Partially Upheld Not Upheld 2022/23 47% 30% 9% 14% 2023/24 39% 32% 12% 17% 2024/25 47% 21% 11% 21% Stage Two complaints Year Resolved Upheld Partially Upheld Not Upheld 2022/23 3% 11% 40% 46% 2023/24 4% 13% 39% 44% 2024/25 10% 9% 26% 53% 35
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8 Improvements made as a result of complaints Council Services continually seek to identify improvements in service delivery and complaint information is analysed regularly to inform service improvements. Some improvements were implemented as a result of complaints received during the year and a selection is noted below. What happened? What we did A school organised a trip to an outdoor amenity centre and a complaint was raised after a child was accidentally left out of a visit to a nearby local attraction. The centre amended its risk assessment to include roll calls as well as clarify whose responsibility this is and in which situation i.e. onsite/offsite and how/when that is communicated by instructors to visiting group staff. The school also amended its offsite risk assessment regarding head count and staff have been briefed on this. An employee repeatedly parked a Council vehicle across the entrance to a set of garages, contrary to signage in the area not to block the entrance. An apology was offered and the employee in question reminded of their responsibilities when parking a Council vehicle and not to park anywhere where they would cause an inconvenience. A customer contacted the Council to request a refund of Council Tax given double payments had been made. The employee that spoke with the customer explained why the double payments had been made and advised when the refund would be complete. This timescale was not met as the full refund process was not explained. An apology was offered to the complainant and the refund subsequently received. A briefing was cascaded to all relevant employees reminding them of the full process for a refund being actioned and to ensure that process was fully explained to customers where refunds are being made. A communication error between internal departments resulted in the Residents Notifications of upcoming road works not being delivered within the timescale. A service has been appointed that will notify all appropriate residents prior to road works commencing. A complaint was received regarding a contractor undertaking work on a property where a series of quality issues affecting a neighbouring property were raised. Improvements made to communication during works on Council properties. The contractor was also instructed to utilise a liaison officer to assist with this improvement. 36
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9 Compliments Over 340 compliments were recorded cross-Council during the year, which is a 48% increase on the previous year. Whilst they cannot all be highlighted in this report, a selection is noted below. • “This is a compliment to thank the Roads Service on the quick response to a streetlight service request. The streetlight was out and the repair done within 2 days. Great work. My mum was well chuffed” • “Just returned from a 10-day holiday in Largs and wanted to compliment the Council on how beautifully clean and tidy the streets were. Did not notice any litter anywhere and all the public toilets were spotlessly clean. Hope you pass on well-deserved praise for all the hard work involved. Will definitely holiday here again. Thank you so much.” • Thank You card received from a service user’s daughter to allocated HSCP Social Worker: “When you became involved in this case, matters proceeded quickly and effectively. This is a short note to express our gratitude to you for the care, attention and consideration you gave to my mum's care, which was appreciated by all the family." • “To the Waste Services men who regularly empty my bins - no matter whether it’s rain, snow or sun, they always have time to wave and smile to my 3-year-old son. Makes my son’s morning every time. Driver is the same - when my son sees him always makes effort to give him a wave. Small thing maybe but a huge hit in our house. Much appreciated.” • A customer wanted to compliment a Customer Services Adviser for the outstanding service provided on a call. The issue was resolved and the caller was very happy with the service provided. • “Thanks so much to Community Facilities for helping book the astro for my son's birthday. They had a great time. We have had a lot going on this last year so to see him and friends just having fun running around together was so good” • “This is a compliment for Streetscene for cleaning the street in New Street, Stevenston. This was only reported today and the street has already been cleaned – the team also went into the garden and removed the litter as well - well done” • “I recently camped at Eglinton Park for a show. We were all made very welcome by everyone, the venue was beautiful, the toilets were always clean and well stocked and we were extremely well catered for throughout the show. Everyone camping or attending the show on a daily basis were full of praise and I therefore thought it was only right to thank you for all their hard work” 37
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10 SPSO complaint referrals The Scottish Public Services Ombudsman (SPSO) is the final stage for complaints about Local Authorities in Scotland. The SPSO has published its 2024/25 referral statistics and the table below details the volume of complaints (relating to North Ayrshire Council) that were referred to the SPSO during the year: Type of complaint Volume Building Control 0 Consumer Protection 0 Economic Development 0 Education 7 Environmental Health and Cleansing 2 Finance 6 Fire & Police Boards 0 Housing 14 Land and Property 0 Legal and Admin 0 National Park Authorities 0 Other 0 Personnel 0 Planning 3 Recreation and Leisure 0 Roads and Transport 1 Social Work 3 Subject unknown or Out of Jurisdiction 1 Valuation Joint Boards 0 Welfare Fund - Community Care Grants 0 Welfare Fund - Crisis Grants 0 Total 37 • The SPSO received 1,561 complaints about Scottish Local Authorities during 2024/25 and 2.4% related to North Ayrshire Council. This referral rate is consistent with previous years (typically between 2% to 3%). • The highest number of referrals made to the SPSO about the Council related to Housing but this was expected given many of the Local Authority referrals made to the SPSO during the year related to Housing or housing services. 38
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The outcomes of the North Ayrshire Council complaints referred to the SPSO are noted below. Stage Outcome Volume Advice Advice & Guidance - Complaint submissions - mature 5 Advice & Guidance - Complaint submissions - premature 2 Advice & Guidance - Enquiries 3 Early Resolution Discretion – Good complaint handling 14 Discretion – Insufficient benefit would be achieved by investigation 5 Discretion – Referred back 3 Time limit 1 Investigation Fully upheld 0 Not duly made or withdrawn 0 Not upheld 0 Partially upheld 0 • All referrals made by North Ayrshire complainants were resolved by the SPSO at the Advice or Early Resolution stages. No complaints were taken to investigation. • Most complaint referrals handled at Early Resolution were discretionary in nature, meaning the Council had discretion in terms of how to consider them. It is pleasing to note many were considered ‘good complaint handling’ complaints, meaning the SPSO was satisfied with the way the Council handled them. More details regarding complaint referrals for North Ayrshire Council can be found on the SPSO website at Our findings | SPSO. 39
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11 Glossary Terms & Explanations Stage One Stage One (also known as Frontline Resolution) aims to resolve straightforward customer complaints that require little or no investigation. Any employee may deal with complaints at this stage and they can be resolved via any channel. The main principle is to seek resolution at the earliest opportunity and as close to the point of service delivery as possible. Stage One complaints must be responded to within 5 working days unless an extension (a maximum of 5 additional working days) is requested and approved by a senior manager or above. The Council should, however, always aim to resolve these types of complaints within 5 working days. Stage Two Not all complaints are suitable for Stage One and not all complaints will be satisfactorily resolved at that stage. Complaints therefore handled at Stage Two (also known as Investigations) typically require a detailed examination before the Council can state its position. These complaints may already have been considered at Stage One, or they may have been identified from the outset as being complex, serious or high risk and needing immediate investigation. Stage Two complaints must be responded to within 20 working days unless an extension is approved by senior manager in conjunction with the customer. Stage Two complaints require a written response, signed by a senior manager. Complaint criteria When an expression of dissatisfaction is received the Council determines if the issue falls into one (or more) six complaint categories: • A service the Council should be providing is not being provided or is not available • A request for a service was provided but not to an appropriate standard • A request for service has not been answered or actioned within the agreed timescale • A Council employee was rude, unhelpful or unprofessional • A Council employee did not attend an appointment or call-out on a date/time agreed • The complaint relates to a policy (internal or external) If the issue being raised relates to one or more of the above, the matter is considered a complaint and will be recorded and handled as such. If not, the matter will be handled as a request for a service, observation or enquiry and actioned accordingly. 40
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NORTH AYRSHIRE COUNCIL 28 August 2025 Audit and Scrutiny Committee Title: Elected Member Development Purpose: To provide information and seek views on the development sessions provided to Elected Members over the 12 months from September 2024 to August 2025, and on future planned development sessions. Recommendation: That the Committee notes the report and provides feedback (a) on the Elected Member Development sessions held in the period September 2024 to August 2025 (b) on means to support Elected Member attendance (c) on how future programmes might be improved (d) the future development sessions scheduled to date and (e) to suggest additional topics for the next year. 1. Executive Summary 1.1 This report provides information on development support provided to Elected Members during the period September 2024 - August 2025, on attendance rates, feedback from current activities and on future planned development. 2. Background 2.1 An annual report is provided to Audit & Scrutiny which details the Council's learning events programme for Elected Members and individual Elected Member attendance figures. This report provides information for the period September 2024 until August 2025 inclusive. 2.2 The Audit Commission report on “Roles and Working Relationships - Are you still getting it right?” emphasised that Councillors need the skills and tools to carry out their role. This includes training in relation to both Council and ALEO responsibilities, as well as scrutiny, audit and financial decision making. Finally, it noted that training and development should be an ongoing process, not a one-off induction. 2.3 North Ayrshire Council has continued to offer a full training programme for Members in addition to e-learning and the opportunity to attend Improvement Service events and Agenda Item 5 41
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webinars. The number of internal development sessions from September 24 – August 25 was 18 sessions. 2.4 Appendix 1 contains details of the internal development that has taken place between Sep 24 and Aug 25. Individual Member attendance from Sep 2024 to Aug 2025 varied between attendance at 16 sessions to attendance at none. 2.5 Elected members also have access to e-learning modules on the iLearn system. Take up of this learning is low although one Councillor has completed eleven courses and another has completed one. 2.6 Overall there were 155 separate Member attendances at development sessions between Sep 24 and Aug 25. These figures include those aimed at specific committee members (i.e. Appeals and Planning Committees). 2.7 The Council offers Members an annual 1-2-1 Personal Development Plan (PDP) discussion to discuss their development needs. Whilst take up for this is historically low several Members have approached Learning & Organisational Development (L&OD) with specific requests and these have been actioned. 2.8 Council previously agreed that all Members who sit on the Appeals Committee should receive training before they sit on the Committee. An externally facilitated session was held in June 2025 for three new panel Members, but open to any of the existing panel. Four Members were in attendance; two of the new panel Members and two existing. 2.9 Members can provide feedback by electronic means on sessions attended. For the period Sep 24 – Aug 25 the feedback response rate was 25%. The sessions are rated 1-5 by respondents on content, presentation, friendliness of tutor, relevance and overall service provided. The feedback is primarily positive with only four ratings of 3 and everything else a 4 or 5. Generally training is well received with Members confirming that their skills/knowledge has increased by attending the training. A breakdown of the 39 evaluations received for all sessions for this 12 month period is included in Appendix 2. 2.10 In addition to provision offered by the Council, there is learning available from the Improvement Service (IS) in the form of Briefing notes, masterclasses, newsletters and more recently webinars. Our own intranet Connects site also hosts information, such as the slides from learning events. 2.11 Further to Audit and Scrutiny feedback in 2023 a short survey was issued to Elected Members. Five responses were received. Questions primarily related to the format of development events, timings, pace, etc. Based on the feedback received, Members considered that the ideal session would be face-to-face on a Monday or Wednesday morning lasting under 2 hours. Where possible over the year 24-25, we have tried to accommodate this. Sessions generally last an hour followed by some time for questions and answers. Slides of the presentations are uploaded to the intranet after each session. The breakdown of the 18 sessions by days is as follows: Monday – 9 Tuesday – 2 Wednesday – 5 Thursday - 2 42
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2.12 Members and Officers are consulted on future training topics and any views from the Committee are also welcome. The Elected Member Learning and Development Event Schedule for the latter half of 2025 is still in development and will be published in due course. A draft copy of the sessions already planned is included in Appendix 3. 2.13 In conclusion, the Council continues to offer an extensive development programme for Members. While attendance levels vary from one session to another and between individual councillors, on average Members attend a significant volume of development, particularly when on-line and external events are included. Nevertheless, it is important that the Committee has the opportunity to review the current development arrangements and suggest improvements. 3. Proposals 3.1 The Committee is recommended to note the report and to provide feedback a) on the Member Development sessions held in the period September 2024 to August 2025, b) on means to support Member attendance c) on how future programmes might be improved d) the future development sessions scheduled to date and e) to suggest additional topics for the next year. 4. Implications/Socio-economic Duty Financial 4.1 Investment in development produces more informed decisions and better outcomes. As this supports good governance and better decision making, Elected Member development continues to be an area of focus in terms of Best Value activity. Human Resources 4.2 Effective development is key to keeping North Ayrshire Council as a high performing Council. Legal 4.3 Effective development is a key component of good governance, leading to better decisions. Equality/Socio-economic 4.4 Effective equalities training is essential for Members. Training in equalities assists Members to develop policy and inform decision making processes whilst ensuring that appropriate equalities impacts are taken into account. Climate Change and Carbon 4.5 No Implications. A session on Environmental Sustainability and Climate Change is planned for next year. Key Priorities 43
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4.6 Sharing of information and knowledge through briefings and development sessions with Elected Members supports the delivery of all priorities outlined in the Council Plan. Community Wealth Building 4.7 There are no direct community wealth building impacts although trained and skilled Members will be better placed to support their communities. A session on the Community Wealth Building refresh is planned for next year. Islands Communities Impact Assessment (ICIA) 4.8 Not applicable United Nations Rights of the Child (UNCRC) 4.9 Not applicable Consumer Duty 4.10 Not applicable 5. Consultation 5.1 The Learning and Organisational development team have been involved in the preparation of this report. All sessions have been evaluated. Aileen Craig Head of Democratic Services For further information please contact Paul Houston, Learning and Organisational Development Adviser, on phouston@north-ayrshire.gov.uk. Background Papers None 44
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Appendix 1 - Learning & Development Attendance Sep 24 - Aug 25 Procurement My NAC Account Community Asset Transfer Cyber Security Update Code of Conduct Sustainable North Ayrshire Ayrshire Local Resilience Partnership Planning Committee Training Transformation Programme Ayrshire Growth Deal AED and CPR Training Multi Agency Response to Severe Weather Surveillance Camera Control Centre Cyber Security Update Business Recovery and Sustainability Implementing UNCRC Appeals Panel Training The Equal Programme Alan Hill Y Y Y Y 4 Amanda Kerr 0 Angela Stephen 0 Anthea Dickson Y Y Y Y Y Y Y Y Y Y Y Y Y Y 14 Anthony Gurney Y Y Y Y Y Y Y Y Y 9 Cameron Inglis Y Y Y Y Y Y Y Y Y Y Y Y Y Y 14 Charles Currie Y Y Y Y Y Y Y 7 Chloe Robertson 0 Christina Larsen Y Y Y Y Y Y Y 7 Davina McTiernan Y Y Y Y Y Y Y Y Y Y Y Y Y Y 14 Donald L Reid Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y 16 Donald Reid Y Y Y Y Y Y Y Y Y Y Y Y 12 Eleanor Collier Y Y Y Y Y Y Y Y Y Y Y 11 Ian Murdoch Y Y Y Y 4 Jean McClung Y 1 Jim Montgomerie 0 Joe Cullinane 0 John Bell Y Y Y Y Y Y Y Y Y Y Y 11 John Sweeney Y Y Y Y Y Y Y Y Y Y Y 11 Louise McLaughlan 0 Margaret Johnson Y Y Y Y Y Y 6 Marie Burns Y Y Y Y Y Y Y Y 8 Mary Hume Y Y Y Y 4 Matthew McLean 0 Nairn McDonald Y 1 Robert Foster 0 Ronnie Stalker Y Y 2 Scott Davidson Y Y 2 Scott Gallacher 0 Shaun Macaulay 0 Stewart Ferguson Y Y Y 3 Todd Ferguson Y Y 2 Tom Marshall Y 1 Totals 7 9 8 10 10 11 15 3 13 9 6 12 7 9 11 11 4 9 155 45
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Appendix 2 – Evaluation Feedback from Sep 2024 – Aug 2025 Note The scale runs from 1 (Dissatisfied) to 5 (Satisfied) on all of these ratings, with the exception being Overall which is presented as 1 (Dissatisfied) to 5 (Delighted). Development Session Content Presentation Tutor Relevance Overall Has the session increased your knowledge and/or skills? 2 Sept 2024 - Procurement Overview 5 5 5 5 5 Yes 2 Sept 2024 - Procurement Overview 5 5 5 5 5 Yes 2 Sept 2024 - Procurement Overview 5 5 5 5 5 Yes 30 Sep 2024 - Community Asset Transfer 5 5 5 5 5 Yes 30 Sep 2024 - Community Asset Transfer 5 5 5 5 5 Yes 30 Sep 2024 - Community Asset Transfer 5 5 5 5 5 Yes 25 Nov 2024 - Cyber Security Update 4 4 4 4 4 Yes 29 May 2024 - Cyber Update 5 5 5 5 5 Yes 25 Nov 2024 - Cyber Security Update 5 5 5 5 5 Yes 26 Nov 2024 - Code of Conduct 4 4 5 5 4 Yes 26 Nov 2024 - Code of Conduct 5 5 5 5 4 Yes 11 Dec 2024 - Sustainable North Ayrshire Strategy 5 5 5 5 5 Yes 16 Dec 2024 - Ayrshire Local Resilience Partnership Presentation on the Response to the Battery Recycling Centre fire in Kilwinning in April 20245 5 5 5 5 Yes 16 Dec 2024 - Ayrshire Local Resilience Partnership Presentation on the Response to the Battery Recycling Centre fire in Kilwinning in April 20245 5 5 5 5 Yes 16 Dec 2024 - Ayrshire Local Resilience Partnership Presentation on the Response to the Battery Recycling Centre fire in Kilwinning in April 20245 5 5 5 5 Yes 17 Feb 2025 - Council’s Transformation Programme 4 4 5 4 4 Yes 17 Feb 2025 - Council’s Transformation Programme 5 5 5 5 5 Yes 12 Mar 2025 - Ayrshire Growth Deal 5 5 5 5 5 Yes 17 Mar 2025 - AED and CPR Training 5 5 5 5 5 Yes 17 Mar 2025 - AED and CPR Training 5 5 5 5 5 Yes 17 Mar 2025 - AED and CPR Training 5 5 5 5 5 Yes 17 Mar 2025 - AED and CPR Training 5 5 5 5 5 Yes 30 Apr 2025 - Response to Severe Weather 3 3 5 3 3 Yes 31 Apr 2025 - Response to Severe Weather 5 5 5 5 5 Yes 32 Apr 2025 - Response to Severe Weather 4 4 5 3 4 Yes 12 May 2025 - Surveillance Camera Control Centre 5 5 5 5 Yes 15 May 2025 - Cyber Security Awareness 5 5 5 5 5 Yes 15 May 2025 - Cyber Security Awareness 4 4 5 4 4 Yes 15 May 2025 - Cyber Security Awareness 5 5 5 5 4 Yes 15 May 2025 - Cyber Security Awareness 5 5 5 5 5 Yes 28 May 2025 - Business Recovery and Sustainability 5 5 5 5 5 Yes 28 May 2025 - Business Recovery and Sustainability 5 5 5 5 5 Yes 9 Jun 2025 - Implementing UNCRC 5 5 5 5 5 Yes 9 Jun 2025 - Implementing UNCRC 3 4 4 3 3 No 11 Jun 2025 - Appeals Panel Training 4 4 5 4 5 Yes 26 Jun 2025 - Equal Programme: Closing the Disability Employment Gap5 5 5 5 5 Yes 26 Jun 2025 - Equal Programme: Closing the Disability Employment Gap5 5 5 5 5 Yes 26 Jun 2025 - Equal Programme: Closing the Disability Employment Gap5 5 5 5 5 Yes 26 Jun 2025 - Equal Programme: Closing the Disability Employment Gap5 5 5 5 5 Yes 5 5 Yes11 Dec 2024 - Sustainable North Ayrshire Strategy 4 5 5 46
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Appendix 3 – Elected Member Development Schedule Sep – Dec 2025 (DRAFT) Date Topic Delivered by Lead Comments 6 Oct 2025 (2pm – 3pm) Community Justice – Working together to break the cycle of offending Kirsty Baker (Partnership Manager) Stuart Singleton (Planning and Performance Officer) Elizabeth Stewart This session aims to raise awareness, understanding, and confidence in using community justice as an approach to reducing reoffending. Delivered by the Community Justice Ayrshire Partnership support team, the session will look at a range of work being carried out by community justice partners across Ayrshire, including: • Approaches to early intervention and support for when a person first comes into contact with the justice system • How partners work to address the needs of people involved in offending behaviour whilst in the community • Work taking place to support people returning to our communities after a prison sentence 22 Oct 2025 (10am – 11am) Parental Employment: Skills for Life Laura Neill (Senior Manager) Kelley Morgan (Programme Manager) Louise Kirk The Parental Employment Support Team helps parents across North Ayrshire develop the skills, experience, and confidence needed to secure and sustain employment. Through our Skills for Life programme, work placements, and the We Work for Families programme, we provide tailored support to overcome barriers, enhance employability, and create pathways to fulfilling careers. Our initiatives ensure parents can balance work and family life while accessing training, qualifications, and real-work experience. Join us to explore how we can work together to break down barriers, boost local employment, and build stronger families and communities. 17 Nov 2025 (2pm – 3pm) Planning Allan Finlayson (Senior Manager (Planning) / Raymond Lynch (Senior Manager (Legal) Aileen Craig Mandatory training for elected members was included in the Planning (Scotland) Act 2019 and North Ayrshire’s Planning and Legal service have provided this training to Planning Committee members. The latest opportunity to do so again has now arrived and the invitation to participate in training is being 47
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Date Topic Delivered by Lead Comments widened to all elected members. This is to raise awareness of the Council’s National Planning Improvement Framework which will be subject to consultation and engagement with all Community Councils . The training session will provide elected members with an overview of the following aspects of the Planning system in Scotland and how this affects communities. • An introduction to the Planning service • What is Planning? • Introduction to the Council’s Planning team • Development Planning – the Local Development Plan and National Planning Framework (NPF4) • Development Management – the assessment of planning applications by officers and the Planning Committee • Enforcement • Other Planning roles TBC Code of Conduct Update Aileen Craig (Head of Service (Democratic) Aileen Craig TBC TBC Inclusion Process Lindsay Morris (Executive Manager) Sam Anson TBC TBC Digital Renewal and Sustainability Julia McMurdie (Digital Renewal Manager) Jennifer Wraith (Senior Manager) Louise Kirk TBC TBC Ayrshire Regional Economic Strategy Emma McMullen (Senior Manager) Louise Kirk TBC TBC Cyber Security Gavin Alston (Team Manager) Fiona Walker TBC 48
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Date Topic Delivered by Lead Comments TBC Our Islands Sarah Baird (Senior Officer) Louise Kirk TBC TBC New National Islands Plan for Scotland Sarah Baird (Senior Officer) Louise Kirk TBC TBC Community Planning Jacqueline Greenlees (Senior Manager) David Hammond TBC TBC Community Wealth Building Mhairi Paterson (Economic Policy Manager) Louise Kirk TBC 49
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NORTH AYRSHIRE COUNCIL 28 August 2025 Audit and Scrutiny Committee Title: Accounts Commission’s Briefing: Local Government Budgets 2025/26 Purpose: To inform the Audit and Scrutiny Committee of the key messages identified within the recently published briefing. Recommendation: That the Committee i) notes the key messages within the recent Accounts Commission briefing, and (ii) notes the current position of North Ayrshire Council in relation to the key messages. 1. Executive Summary 1.1 In May 2025 the Accounts Commission published a briefing on Local Government Budgets 2025/26. This briefing provides a high-level analysis of the 2025/26 budgets agreed by all 32 Councils highlighting the challenges faced in achieving a balanced budget and long-term financial sustainability. A link to the report is attached below: Local government budgets 2025/26 1.2 The report provides an analysis of the level of Scottish Government funding provided to Councils, the remaining budget gaps, the steps taken by Councils to bridge these and the ways in which Councils consulted with their communities. 1.3 Appendix 1 provides relevant North Ayrshire Council feedback on each of the key messages identified. 2. Background 2.1 The briefing provides a high-level independent analysis of the budgets set by local authorities for 2025/26, including the Councils’ Revenue, Capital and HRA budgets. This analysis examines the sources of funding, budget gaps and identified savings required to deliver balanced budget for 2025/26 and the projected budget gaps for 2026/27 and 2027/28. 2.2 In addition to the financial aspects of the budgets, the briefing examines the approaches taken to involving communities in the decision making process. Agenda Item 6 51
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2.3 The key messages within the briefing are summarised below: • Scottish Government revenue funding to councils increased by 6% to £15.2 billion; • Local government is experiencing spending pressures in excess of the funding uplifts, including additional pressures from changes to employers’ National Insurance contributions; • Councils have identified budget gaps for 2025/26 of £647 million with required actions including increased Council Tax, identification of savings, use of reserves and additional charges for services; • Further budget gaps have been identified for future years and action will be required to achieve financial sustainability; • Councils must improve the accessibility and transparency of budget information and include local communities in the choices required to address financial challenges. 3. Proposals 3.1 It is proposed that the Committee i) notes the key messages within the recent Accounts Commission briefing, and (ii) notes the current position of North Ayrshire Council in relation to the key messages. 4. Implications/Socio-economic Duty Financial 4.1 The Accounts Commission briefing highlights the reliance of local government on Scottish Government grant funding and the need for further action to bridge anticipated future funding gaps and achieve financial sustainability. North Ayrshire Council develops medium term financial plans on a three year rolling basis and agrees annual Revenue, Capital and HRA budgets. The financial sustainability of the Council is monitored regularly and reported to Cabinet throughout the year. Human Resources 4.2 As part of a sustainable financial strategy the Council continues to actively manage the size of its workforce. Legal 4.3 None. Equality/Socio-economic 4.4 Equality impact assessments are carried out for all options identified as part of the annual budget proposals. 52
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Climate Change and Carbon 4.5 None. Key Priorities 4.6 In addressing the financial challenges which it faces, the Council seeks to minimise the impact on delivering its key priorities. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 Executive Directors are consulted in the development of the Medium and Long term Financial plans. Extensive community engagement was undertaken as part of the development of the 2025/26 budget proposals. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551 or DavidForbes@north-ayrshire.gov.uk. Background Papers None 53
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Appendix 1 Local Government Budgets 2025/26 Ref Key Message NAC Feedback K1 Scottish Government funding to local government in 2025/26 is increasing by 6% in real terms, to £15.2 billion. However, local government continues to face recurring pressures in excess of funding uplifts, such as inflation, annual pay deals and growing demand for services, and most of the increase will be used to deliver previously agreed national commitments. Alongside this, councils are facing additional costs related to the increase in employer’s National Insurance contribution rates, and investing in new buildings and assets is increasingly expensive. The 2025/26 local government finance settlement included additional Scottish government funding for north Ayrshire Council of £23.666m, 6.6%. However, this included increased funding to support a number of national pressures such as the 2024/25 council tax freeze, implementation of the Real Living Wage across Adult and Children’s social care, prior year pay deals for local government workers and teachers and a contribution towards the costs of the changes to employers’ NI contributions. The actual increase in core funding was £7.254m, an increase of 2.05%. Against this, North Ayrshire Council identified contractual and inflationary budget pressures of £14.930m. K2 At a time of constrained public finances and growing demand, not all cost increases can be met from central government funding and councils need to take local action to achieve budget balance over the short and medium term. At the time of setting their budgets, councils identified a difference of £647 million between anticipated expenditure and the funding and income they receive (the ‘budget gap’). Councils are required to set balanced budgets and have agreed a range of actions to achieve this and close this gap. This includes all councils raising council tax rates, by between six and 15.6 per cent, identifying savings, drawing on reserves and increasing or introducing charges for accessing some services. North Ayrshire Council identified a budget gap for 2025/26 of £14.930m. This was addressed through a range of measures including: 7% increase in Council Tax, £5.008m; Approved savings, £3.464m; Use of reserves, £4.000m; and Increased Fees & Charges, £2.276m. K3 Councils continue to make savings across a broad range of services to address financial challenges and have been successful in identifying recurring measures that will help to address underlying pressures. Despite this, councils are still forecasting that more will need to be done in future years to achieve financial sustainability given their projected increases in both costs and level of service demand. Based on current funding assumptions, including a flat cash settlement, 5% per annum increase in Council Tax and the programmed utilisation of reserves, the projected budget gap for 2026/27 and 2027/28 is £3.627m and £7.385m respectively, representing a cumulative budget gap to 2027/28 of £11.012m. Proposals to address these gaps will be developed as part of the 2026/27 and 2027/28 revenue budget estimates. 54
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Appendix 1 K4 Councils’ budget-setting processes vary, partly reflecting differences in organisational structures and local priorities, and this makes it difficult to compare information across Scotland. There remains an underlying issue with the transparency of how budget information is being presented. Within their report on the 2023/24 audit, audit Scotland reported that North Ayrshire Council demonstrated “openness and transparency within the council together with appropriate governance and decision-making arrangements”. It was further noted that the Council had implemented several measures to ensure that the decision-making processes are accessible to the public, including the live streaming of meetings and the publication of meeting agendas, papers, and video recordings on the council website. As part of the annual exercise to develop the Revenue Estimates, officers participate in regular engagement with elected members to provided them with information on the financial pressures and risks faced by the Council and the available options to reduce net expenditure within the context of the priorities set out in the Council Plan. K5 Most councils engaged communities in some way to make decisions on their budgets for 2025/26, but there were variations in the depth and level of this engagement. By improving the accessibility and transparency of how they are reporting budget information, councils can better inform and include their local communities in making the choices required to address ongoing financial challenges. An extensive programme of engagement took place between 10 October and 25 November 2024 including surveys across six main themes as well as in person and online focus groups. This approach was designed to support our residents to contribute their views, make the surveys more accessible and avoid digital exclusion. This resulted in 4,461 responses across six themes, more detailed feedback on proposals and considerable engagement with community groups across North Ayrshire. Full details of feedback across all areas were presented for elected member consideration in advance of setting the Council Budget. 55
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NORTH AYRSHIRE COUNCIL 28 August 2025 Audit and Scrutiny Committee Title: Internal Audit Reports Issued Purpose: To inform the Committee of the findings of Internal Audit work completed since May 2025. Recommendation: That the Committee considers the outcomes from the Internal Audit work completed. 1. Executive Summary 1.1 The Council's local Code of Corporate Governance requires effective arrangements to be put in place for the objective review of risk management and internal control. Internal Audit is an important element in this framework as it reviews internal controls and offers Elected Members and officers an objective and independent appraisal of how effectively resources are being managed. 1.2 The remit of the Audit and Scrutiny Committee includes the monitoring of Internal Audit activity. The submission of regular reports assists the Committee in fulfilling this remit. 2. Background 2.1 This report provides information on Internal Audit work completed since May 2025. Internal control reviews have been completed in respect of the areas detailed in Appendix A to this report. The aim of these reviews is to provide assurance that the internal control framework within the areas examined is appropriate and operating effectively. 2.2 The findings from each audit assignment have been notified in writing to the Chief Executive, the Section 95 Officer and the relevant Executive Director and Head of Service on the completion of each assignment. Where appropriate, this has included an action plan with recommendations for improving internal control. Appendix A includes the report and action plan from each audit. 2.3 The findings from two separate audit assignments are detailed at Appendix A to this report and the levels of assurance for each are noted in the table below: Audit Title Assurance Level Procurement Substantial Locality Planning – Community Investment Fund Reasonable Agenda Item 7 57
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3. Proposals 3.1 It is proposed that the Committee notes the outcomes from the Internal Audit work completed since May 2025. 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 work of Internal Audit helps to support the efficient delivery of the strategic priorities within Our 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. Consumer Duty 4.10 None. 5. Consultation 5.1 The relevant Services are consulted on Internal Audit findings during each audit assignment. 58
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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. 59
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PROCUREMENT 1 Background 1.1 The audit entailed an independent review of procurement activities in conjunction with the requirements of the PCIP (Procurement and Commercial Improvement Programme) external assessment to ensure good practice. 1.2 1.3 1.4 Consequently, the review focussed on the arrangements in place for ensuring that contract awards are compliant with internal governance and legislative requirements. CPU offers advice on procurement related matters such as contract terms, contract extensions, contract modifications and price increase requests. CPU also lead the management of modifications and extensions to the contract as required by the terms and conditions, and national procurement legislation. In-addition, CPU progress all procurements over £10k except for national framework direct awards up to £50k that the service teams can progress themselves. Internal service teams are responsible for the management and monitoring of contract and supplier performance against specification, terms and conditions and KPIs. Also, internal service teams will obtain updated documentation following expiry dates for insurances, accreditations and memberships. 2 Objectives and Scope 2.1 The main objective of this audit was to carry out an independent procurement review to: • Ensure standing orders are being applied to contracts procured across all Council services and followed for a competitive, fair, transparent process to optimise competition and value for money. • Obtain evidence that independent post project reviews are routinely carried out for high risk or high value procurements with lessons documented for future projects. 2.2 The period covered by the audit is 1st January 2024 to 31st March 2025 3 Findings Procurement application of Standing Orders 3.1 The Council’s Procurement manual and Standing Orders relating to Contracts set out the process for awarding a contract, depending on the different types of procurement procedure that must be followed, for the different thresholds of spend. These procedures are detailed in section 7 (Low Value Procurement) and section 8 (High Value Procurements). Contracts can be procured via framework call offs, tenders, quick quotes, and single tender actions. 3.2 A sample of 10 contracts consisting of supplies, services and works across different Council services with total spend greater than £50,000, all appointed within the last 12 months, including the 5 highest value, were reviewed to assess if the procurement procedures complied with the Procurement Manual and Standing Orders. 60
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3.3 The contracts reviewed generally complied with the Council’s Procurement manual and Standing Orders in the areas of Request for Procurement Action (RPA), contract strategies, evaluations, publication and award process such as tender outcome report, award and decline letters. 3.4 In one of the jobs examined, we observed that there was no evidence that the officers involved had completed the iLearn Module on Standing Ordering Relating to Contracts and Contract Procedure Rules, which is mandatory for all budget holders, and anyone involved in the procurement process. Budget holders are required to confirm, via a checkbox on the RPA, that the training has been completed however in this case, it had been left blank. This was not challenged by the CPU on receipt of the RPA. (action a). 3.5 We reviewed the most current procurement manual and observed that the procedures did not adequately incorporate all of the relevant activities relating to procurement as actual practices sightly differ from process in the following areas: • Procurement fraud impact assessment must be completed for all procurements over 10K (Supplies, Services and Works) as seen in the contract files reviewed, whereas this process is not incorporated in the procurement manual. • Information Sharing Protocol is part of the actual process as seen in the contract files reviewed whereas this process is not incorporated in the procurement manual. The current procurement manual has been updated at the suggestion of the auditor during the audit. Post Project Review 3.6 All of the sample contracts had completed and documented a post project review. Most of the reviews had identified learning points, either negative or positive, but in a couple of cases N/A had been recorded, indicating that no learning points had been identified. 4 Internal Audit Opinion 4.1 Overall, substantial assurance was obtained with regard to the procurement of major contracts. The contracts reviewed generally complied with the Council’s Procurement Manual and Standing Orders in the areas of Request for Procurement Action (RPA), contract strategies, evaluations, publication and award process such as tender outcome report, award and decline letters. One action to improve the quality of compliance with procedures has been recommended. 61
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Definitions of Assurance Levels: Substantial A sound system of governance, risk management and control exist, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited. Reasonable There is a generally sound system of governance, risk management and control in place. Some issues, non-compliance or scope for improvement were identified which may put at risk the achievement of objectives in the area audited. Limited Significant gaps, weaknesses or non-compliance were identified. Improvement is required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited. None Immediate action is required to address fundamental gaps, weaknesses or non-compliance identified. The system of governance, risk management and control is inadequate to effectively manage risks to the achievement of objectives in the area audited. NB The level of assurance given is at the discretion of Internal Audit. 62
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KEY FINDINGS AND ACTION PLAN PROCUREMENT Action a Finding In one of the jobs examined, we observed that there was no evidence that relevant officers had completed the iLearn Module on Standing Ordering Relating to Contracts and Contract Procedure Rules, which is mandatory for all budget holders, and anyone involved in the procurement process. The field within the RPA to confirm that training had been completed was left blank. Action Description CPU should always challenge service teams when instances of non-compliance are identified, such as failing to confirm that the iLearn Module had been completed. Risk Non-compliances with Standing Orders or procedures are not identified and corrected. Lack of adequate knowledge of procurement process will hamper effective contributions of participants. Priority (1, 2, 3) 2 Paragraph Reference 3.4 Managed by Mark Boyd, Head of Service (Finance) Assigned to Suzanne Bignell, Senior Manager (Corporate Procurement) Due Date Completed Management Comment CPU Managers have been instructed to challenge any service representative that has not stated if they have completed the CSO I-Learn training. Priority Key used in Action Plan 1 (High) Control weakness where there is a material impact on the achievement of the control objectives, generally requiring prompt attention. 2 (Medium) Control weakness which needs to be rectified, but where there is no material impact on the achievement of the control objectives. 3 (Low) Minor weakness or points for improvement. 63
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LOCALITY PLANNING – COMMUNITY INVESTMENT FUND 1 Background 1.1 The Community Investment Fund (CIF) was created to support projects that address local priorities. 1.2 Community organisations apply for CIF funding via their Locality Partnership. 1.3 Locality Partnerships are responsible for assessing proposals and making funding recommendations to Cabinet. 1.4 £1.85m of this Fund remains unallocated (as per the most recent Cabinet paper, dated 18th February 2025). 2 Objectives and Scope 2.1 The objective of this audit was to ensure:- • there is a robust process for assessing and awarding CIF • Documentation to evidence the assessment and award process is being retained • Monitoring of actual spend is being undertaken 3 Findings Assessment Process 3.1 The Council has a guidance note that sets out the CIF scheme criteria, grant eligibility and an outline of the process for developing and approving an award. 3.2 The current approach for assessing and documenting funding decisions is as follows:- 1. Expression Of Interest template – completed by applicants and gives a broad outline of the proposal 2. Expression Of Interest checklist – used by Locality Officers to ensure the proposal meets the CIF criteria 3. Partnership meeting – the proposal will be discussed and a decision will be made to either reject it, request amendments/additional information or request a full application be submitted. The decision is recorded in the Partnership Action Note. 4. Application template – completed by applicants. This is a much more detailed document and requires the applicant to answer a number of key questions, including:- a. Summary of proposal b. What difference will this project make within the locality and to local services and programmes? c. What engagement has taken place in relation to the project? d. How will the project be managed? e. Amount of funding being requested f. Monitoring and evaluation process 64
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5. Partnership meeting – to discuss the application form and either reject it, request amendments/ additional information or agree the application should be presented to Cabinet to request funding. The decision is recorded in the Partnership Action Note. 6. Cabinet meeting – to discuss the application form and either reject it, request amendments/additional information or approve CIF funding. 3.3 Audit reviewed the above process and documents in detail and has recommended the following improvements:- • Updating the guidance note to make the submission of supporting documentation a mandatory part of the application process. These documents evidence that the applicant meets the CIF criteria (action a) • Updating the Expression of Interest checklist to include confirming the applicant has sufficient public liability and employers’ liability insurance (action b) • the introduction of a funding agreement to be signed by applicants prior to the receipt of funds. (action c) Evidence of decision-making process 3.4 Audit selected 1 award made by each of the 6 Localities and requested evidence of stages 1-6 as documented in 3.2 above. 3.5 The Service was unable to locate:- • The Expression of Interest checklists and corresponding supporting documentation for 4 of the awards • An action note showing the recommendation to move from the Expression of Interest to full application stage for 1 award 3.6 The Service indicated that staffing changes have contributed to issues with locating some of the above documents. The Service and Audit agreed that a standardised filing system would make mitigate this issue. (action d) Monitoring of Spend 3.7 Locality Officers are in regular contact with award recipients and are therefore aware of the general progress of projects. 3.8 The Service also requires award recipients to complete a monitoring template every 12 months. The template requests:- • information on actual spend, including copies of invoices • an update on progress towards project outcomes 3.9 Audit requested copies of monitoring forms and evidence of spend for each of the 6 awards tested at 3.4 above. 3.10 1 award had been made less than 12 months ago, and therefore a monitoring form wasn’t yet due. All other 5 had been awarded more than 12 months ago, and so monitoring reports should have been submitted. 3.11 Audit found 3 forms had been submitted approximately 12 months after the payment date, 2 had been submitted approximately 2 years after the payment date. (action e) 3.12 Audit also reviewed the evidence of spend submitted alongside each monitoring report. 65
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3.13 Audit found:- • 2 awards where invoices to fully evidence the CIF spend had been submitted • 2 awards where documents had been submitted, but these were not invoices and therefore not sufficient evidence of spend • 1 award where no invoices had been submitted (action f) 3.14 In addition to the monitoring form, the Service indicated that over the last few years applicants have been invited to Partnership meetings to provide an update on their project. 4 Internal Audit Opinion 4.1 Overall, reasonable assurance was obtained with regard the award of CIF funding. 4.2 Standardising and centralising the filing of CIF related documents will ensure all evidence to support awards can be located. This will also help to identify any gaps in evidence more easily. 4.3 The Service is currently working on improving the award monitoring process, which should address the issues raised above. Definitions of Assurance Levels: Substantial A sound system of governance, risk management and control exist, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited. Reasonable There is a generally sound system of governance, risk management and control in place. Some issues, non-compliance or scope for improvement were identified which may put at risk the achievement of objectives in the area audited. Limited Significant gaps, weaknesses or non-compliance were identified. Improvement is required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited. None Immediate action is required to address fundamental gaps, weaknesses or non-compliance identified. The system of governance, risk management and control is inadequate to effectively manage risks to the achievement of objectives in the area audited. NB The level of assurance given is at the discretion of Internal Audit. 66
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KEY FINDINGS AND ACTION PLAN LOCALITY PLANNING – COMMUNITY INVESTMENT FUND Action a Finding The CIF Guidance Note currently states:- ‘Where appropriate, depending on the grant sum requested, the organisation will be expected to submit supporting documentation. All documentation will be used, alongside the application form, to assess against the grant criteria.’ Action Description Guidance should be updated to make the submission of documentation to prove eligibility for CIF funding mandatory. Officers should enforce this at the Expression of Interest stage (as per the Expression of Interest checklist), with funding requests not advancing to the application stage until all relevant documentation has been provided. Risk Insufficient information to confirm if the applicant meets the CIF scheme criteria; inappropriate awarding of CIF funds Priority (1, 2, 3) 2 Paragraph Reference 3.3 Managed by Rhonda Leith, Head of Service (Connected Communities) Assigned to Jacqueline Greenlees/Angela Morrell Due Date 31st August 2025 Management Comment Guidance updated; training for officers to take place August 2025 Action b Finding Expression Of Interest checklist does not cover all CIF scheme criteria. Action Description Checklist should be updated to ensure it references all criteria of the scheme. Risk Applicant that doesn’t meet the scheme criteria receives a CIF award Priority (1, 2, 3) 2 Paragraph Reference 3.3 Managed by Rhonda Leith, Head of Service (Connected Communities) Assigned to Jacqueline Greenlees Due Date 30th June 2025 Management Comment Guidance updated Action c Finding Successful applicants are not currently required to sign a funding agreement. Action Description With support from Legal, a funding agreement should be created for all CIF awards. This should include the need to comply with monitoring requirements and the requirement to be able to evidence ‘best value’. Risk No recourse if the award is not spent in line with approved application; no recourse if monitoring requirements are not adhered to; poor use of the public pound Priority (1, 2, 3) 1 Paragraph Reference 3.3 Managed by Rhonda Leith, Head of Service (Connected Communities) Assigned to Jacqueline Greenlees 67
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Due Date 30th September 2025 Management Comment Will be implemented by time next funding is agreed at Locality Partnerships. Action d Finding The Service was unable to locate CIF related documents. Action Description A standardised filing system should be introduced and used by all Officers. Risk Important documents can’t be located; unable to evidence decisions if challenged Priority (1, 2, 3) 2 Paragraph Reference 3.6 Managed by Rhonda Leith, Head of Service (Connected Communities) Assigned to Angela Morrell Due Date 30th September 2025 Management Comment A standardised filing system will be implemented. Action e Finding Monitoring templates are not always being submitted timeously. Action Description The timing of the issuing of the monitoring template should be changed. Providing the template when the award is paid gives the recipient plenty of time to review the form, raise any early queries and complete the form as they spend. Reminders could be sent to ensure recipients are aware that the return will be due at 12 months. Risk Service is unaware of the misuse of the CIF award Priority (1, 2, 3) 2 Paragraph Reference 3.11 Managed by Rhonda Leith, Head of Service (Connected Communities) Assigned to Jacqueline Greenlees/Angela Morrell Due Date 30th September 2025 Management Comment Template will be provided with award letter. Action f Finding Unsuitable documents are currently being accepted as ‘evidence’ of spend. Action Description The Service should remind Officers that only invoices can be accepted as evidence of spend. Officers should reconcile both the detail and total value of invoices submitted to the spend breakdown in the monitoring form. Risk Service is unaware of the misuse of the CIF award Priority (1, 2, 3) 2 Paragraph Reference 3.13 Managed by Rhonda Leith, Head of Service (Connected Communities) Assigned to Angela Morrell Due Date 30th September 2025 Management Comment Officer training to take place in August 2025. 68
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Priority Key used in Action Plan 1 (High) Control weakness where there is a material impact on the achievement of the control objectives, generally requiring prompt attention. 2 (Medium) Control weakness which needs to be rectified, but where there is no material impact on the achievement of the control objectives. 3 (Low) Minor weakness or points for improvement. 69
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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. Agenda Item 8 71
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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. 72
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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. 73
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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 74