Agenda and minutes

The Chair welcomed everyone to the meeting.

Apologies for absence were intimated on behalf of Councillors Daniel Hampsey and Gary Mulvaney.

There were no declarations of interest intimated.

The Minute of the previous meeting of the Audit and Scrutiny Committee, held on 16 December 2025 was approved as a correct record.

The Minute of the Special Meeting of the Audit and Scrutiny Committee, held on 27 January 2026 was approved as a correct record.

Report by Chief Internal Auditor

The Committee gave consideration to a report providing a summary of Internal Audit activity and progress during quarter 4 of 2025/26 against the following areas:

Audits Completed

·       Oban Airport – Fuel

·       Street Lighting

·       Capital Programme – Management and Monitoring

Audits in Planning/in Progress

·       Payroll – iTrent

·       Performance Management Arrangements and Reporting

·       Whistleblowing

·       LiveArgyll Building/Property Maintenance

·       Rural Growth Deal

The report also provided information on the planned work for 2025/26 in relation to scrutiny; work carried out by the Counter Fraud Team; the continuous monitoring programme and the progress of work carried out as a result of information received by the National Fraud Initiative.

Decision

The Audit and Scrutiny Committee reviewed and endorsed the Summary of Activities report.

(Reference:  Report by Chief Internal Auditor, dated 12 March 2026, submitted)

Report by Chief Internal Auditor

Consideration was given to a report which provided an update on all open actions as at 31 December 2025 including information on actions where the agreed implementation date had been rescheduled. 

Decision

The Audit and Scrutiny Committee endorsed the contents of the report.

(Reference:  Report by Chief Internal Auditor, dated 12 March 2026, submitted)

Report by Chief Internal Auditor

·       Street Lighting – Unmetered Supply

·       Oban Airport – Fuel

·       Capital Governance Arrangements

Consideration was given to a report containing the action plans in relation to the following 3 audits:-

·       Street Lighting – Unmetered Supply

·       Oban Airport – Fuel

·       Capital Governance Arrangements

Decision

The Audit and Scrutiny Committee reviewed and endorsed the summary report and detail within each individual report.

(Reference:  Report by Chief Internal Auditor, dated 12 March 2026, submitted)

The Chair of the Biodegradable Municipal Waste Landfill Ban Scrutiny Panel, Janice Wason Hall advised that the Panel had met on 4 February 2026 along with relevant officers including the Head of Service, Andrew Summers.  The Panel subsequently agreed a formal scope of work covering the scrutiny review, together with the approach that would be required to collate all of the information necessary for the review.

Mrs Wason Hall advised that upon completion of the work, an initial report will be prepared and presented to the Panel for consideration and once agreed, a report will be prepared for the next meeting of the Audit and Scrutiny Committee in June 2026.

Report by Executive Director with responsibility for Legal and Regulatory Services

Having noted the legal requirements placed upon the Council in relation to covert surveillance, the Committee gave consideration to a report which advised that between 1 January and 31 December 2025, the Council undertook no covert surveillance operations.

Decision

The Audit and Scrutiny Committee considered and noted the terms of the report.

(Reference: Report by Executive Director with responsibility for Legal and Regulatory Support dated 19 January 2026, submitted)

Report by Chief Internal Auditor

Consideration was given to a report which presented the Internal Audit Plan for 2026-27, which formed part of the Council’s approved Internal Audit Strategy for 2025-28.  The report noted that the plan had been developed in line with the Global Internal Audit Standards (GIAS), ensuring a risk-based approach that supports the Chief Internal Auditor in providing an annual opinion on the Council’s internal control framework, which contributes directly to the Annual Governance Statement.

Decision

 The Audit and Scrutiny Committee agreed to endorse the Internal Audit Plan 2026-27 as attached at Appendix 1 to the report.

(Reference:  Report by Chief Internal Auditor, dated 12 March 2026, submitted)

Report by Section 95 officer

The Committee gave consideration to a report which set out the plans in place for the preparation of the Council’s Unaudited Annual Accounts for the year ending 31 March 2026. 

Decision

The Audit and Scrutiny Committee noted that plans are in place to prepare the Council’s Unaudited Annual Accounts for the year ending 31 March 2026, consistent with proper accounting practice and by the statutory deadline of 30 June 2026.

(Reference:  Report by Section 95 Officer, dated 12 March 2026, submitted)

Report by Section 95 Officer

Consideration was given to a report which provided an update on the Council’s treasury management activity during Quarter 3 2025-26, 1 October to 31 December 2025 and the overall position as at 31 December 2025.  The report covered information on the economic background; interest rate forecasts; borrowing; investments and compliance with Treasury and Prudential limits. 

Decision

The Audit and Scrutiny Committee considered and noted the contents of the report and the treasury activity during the quarter ended 31 December 2025. 

(Reference:  Report by Section 95 Officer, dated 9 February 2026, submitted)

Report by Section 95 Officer

Having noted that the Treasury Management Strategy, including prudential and treasury indicators, and the Annual Investment Strategy is a key reporting requirement of the CIPFA Code of Practice in Treasury Management (the Code), the Committee gave consideration to a report, prepared in compliance with the Code, covering Capital Expenditure and Financing; an economic and interest rate update; Borrowing Strategy; Investment Strategy and Prudential and Treasury Indicators 2026-29. 

Decision

The Audit and Scrutiny Committee:-

1.    noted that the report had been considered by the Policy and Resources Committee on 19 February 2026 and approved by full Council on 25 February 2026.  Any recommendations arising from further scrutiny by the Audit and Scrutiny Committee would require to be presented to full Council at the earliest opportunity; and

2.    considered and endorsed the Treasury Management Strategy and Annual Investment Strategy for 2026-27 and the Prudential and Treasury Indicators for 2026-27 to 2028-29, as outlined in Appendix 3 to the report.

(Reference:  Report by Section 95 Officer, dated 6 February 2026, submitted)

Report by Chief Executive

Consideration was given to a report that presented the proposed suite of Corporate Outcome Indicators which aligned to the seven priority areas set out in the Council’s Corporate Plan.

Decision

The Audit and Scrutiny Committee considered and noted the suite of Corporate Outcome Indicators, which were approved by the Policy and Resources Committee at its meeting held on 19 February 2026.

(Reference:  Report by Chief Executive, dated 12 March 2026, submitted)

Report by Chief Executive

The Committee gave consideration to a report which introduced the Annual Business Plan 2025/26, which set out the recommended Performance Measures to assess and monitor progress against the Priorities in the Council’s Corporate Plan 2025-27.

Decision

The Audit and Scrutiny Committee considered and noted the following which were approved by the Policy and Resources Committee on 19 February 2026:

1.    Annual Business Plan Measures as part of performance monitoring and progress towards the Council’s Corporate Plan and Priorities; and

2.    Annual Business Plan Measures.

(Reference:  Report by Chief Executive, dated 20 February 2026, submitted)

Report by Chief Internal Auditor

Consideration was given to a report which presented minor updates to the Internal Audit Charter and Internal Audit Manual, following a comprehensive revision in 2025 to align with the Global Internal Audit Standards (GIAS). 

Decision

The Audit and Scrutiny Committee:-

1.    agreed and approved the amended Internal Audit Charter (Appendix 1); and

2.    agreed and approved the amended Internal Audit Manual (Appendix 2).

(Reference:  Report by Chief Internal Auditor, dated 12 March 2026, submitted)

Report by Chief Internal Auditor

The Committee gave consideration to a report which presented the outcome of the annual review of the Council’s Scrutiny Framework and Scrutiny Manual. 

Decision

The Audit and Scrutiny Committee agreed to note the outcome of the annual review of the Scrutiny Framework and Manual, as outlined at Appendix 1 and Appendix 2 to the report.

(Reference:  Report by Chief Internal Auditor, dated 12 March 2026, submitted)

Report by Chief Internal Auditor

The Committee gave consideration to a report which provided an update on the recent engagement on potential scrutiny options in order to identify a topic to take forward in the context of the Scrutiny Manual and Framework as part of the Committee’s scrutiny role for 2026-27. 

Decision

The Audit and Scrutiny Committee:-

1.    agreed that the topic for 2026-27 would be a review of the Council’s declared Housing Emergency and its progress through a multi-agency approach, based on responses provided to the Chief Internal Auditor and its status as a key strategic risk, in line with the assessment process set out in the Scrutiny Framework and Manual;

2.    appointed Janice Wason Hall as the Panel Chair together with Councillors Fiona Howard and Reeni Kennedy-Boyle to form a Scrutiny Panel for the review which will commence within financial year 2026-27; and

3.    noted that it would be open to other Members of the Committee to join the Scrutiny Panel if they expressed an interest. 

(Reference:  Report by Chief Internal Auditor, dated 12 March 2026, submitted)

For noting and updating

In order to facilitate forward planning of reports to the Audit and Scrutiny Committee, Members considered the outline Audit and Scrutiny workplan.

Decision

The Audit and Scrutiny Committee agreed to note the outline workplan.

(Reference:  Workplan of the Audit and Scrutiny Committee, dated 12 March 2026, submitted)