Agenda item

1.     The report was presented by the Interim Head of Internal Audit, Russell Smith.  Mr Smith provided an update on progress against the audit plan.  It was noted that delivery had previously been behind schedule; however, momentum had improved and sufficient coverage was expected to enable the provision of an annual audit opinion.  The following key points were highlighted for Member attention:

        a)     Members were advised that, at the time of reporting, 73% of audit opinions were assessed as substantial or high assurance. It was noted that a number of audits remained in progress and that this position could change. The report highlighted several positive outcomes, including areas demonstrating improvement since previous reviews. In particular, a recent review of elective home education had achieved a high assurance rating, representing an improvement from an earlier adequate assurance opinion.

        b)     The Committee was informed of the use of advanced data analytics in the review of the Clarity system, marking a new approach for the service and providing ongoing data-driven insights to management.

        c)     It was further reported that one limited assurance opinion had been issued in relation to the Adult Social Care (Adult Social Care and Health Directorate) savings delivery plan governance. Members were advised that a number of improvements were already in progress, and relevant officers were in attendance to provide further detail. Work on the development of the Internal Audit Plan for the forthcoming year was also noted, with a report to be presented to a future meeting of the Committee.

2)     In answer to Member comments and questions, the following was said:

        a)     During discussion, the Committee examined the limited assurance finding in relation to Adult Social Care savings governance. Clarification was sought regarding the basis for the limited assurance opinion. It was explained that the audit had focused on governance arrangements, identifying both strengths and gaps, with the latter presenting potential risks. It was emphasised that the audit represented a snapshot in time and that improvements had already been observed.

        b)     Members also raised concerns regarding the deliverability of savings and the potential impact on the current financial year’s budget. Officers advised that, where savings had not been achieved in the previous year, these had been addressed through outturn arrangements and, where appropriate, carried forward. It was noted that this approach was consistent with sector practice. Officers further advised that there was increasing confidence in the delivery of savings for the current financial year, supported by revised approaches and strengthened oversight arrangements.

        c)     The Committee received a detailed update on actions taken within Adult Social Care to address identified weaknesses. This included a fundamental review of financial management practices, enhanced transparency, and a shift towards a system-wide approach to managing resources and demand. It was reported that strengthened governance and regular monitoring arrangements had been implemented, including frequent review of financial and performance data at senior leadership level. Officers acknowledged that this remained a work in progress but expressed confidence in the improvements being made.

        d)     Members discussed the potential impact of these changes on service delivery. Officers confirmed that the focus remained on providing appropriate care in line with statutory responsibilities, while addressing the cost of provision and improving value for money. It was acknowledged that some changes in approach, including earlier engagement with service users and clearer communication regarding entitlements, could present challenges but were considered necessary.

        e)     The Committee also raised issues relating to transparency and clarity of budget information and requested further detail to support effective scrutiny. Officers undertook to consider how additional information could be provided through existing governance processes.

        f)      In relation to environmental matters, a Member raised concerns regarding the Emissions Trading Scheme. Officers clarified that there had been an error in the report, with certain issues incorrectly attributed, and provided clarification regarding the audit findings. It was confirmed that initial work had validated key assumptions and identified opportunities to strengthen controls and transparency.

                The Committee noted the overall distribution of audit opinions, which was considered strong, with a majority of reviews receiving substantial or high assurance ratings, despite the specific concerns raised in relation to Adult Social Care.

3.     RESOLVED the Committee noted the Internal Audit Progress Report for the period of January to May 2026.