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Annual Governance Statement 2025/26

1. Executive summary

1.1     Overview against the principles of good governance

This executive summary provides an overview of the council’s governance arrangements across the seven principles of good governance set out in the Delivering Good Governance in Local Government: Framework (2016).  It draws on the evidence from the Annual Governance Statement and the 11 sources of assurance, including the Strategic Governance Framework (the council’s Local Code of Governance) and the associated annual review process. It reflects the extent to which governance arrangements are embedded, effective in practice, and subject to ongoing monitoring, evaluation, and continuous improvement.

Principle A: Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law.
The council operates within a comprehensive and well‑established governance framework that promotes high standards of integrity and ethical behaviour. This is underpinned by statutory officer roles, Codes of Conduct for Elected Members, Chief Officers, and employees, and supporting mechanisms such as registers of interests, declarations of interest, and gifts and hospitality arrangements. These are complemented by corporate policies, including whistleblowing and fraud, alongside regularly reviewed financial regulations, ensuring lawful decision making, transparency, and accountability across all activities. 

Principle B: Ensuring openness and comprehensive stakeholder engagement.
Transparent decision making is supported through clearly defined governance structures, including Standing Orders, the Scheme of Administration, and the Scheme of Delegation to Officers, all of which are subject to regular review and continuous improvement. Committee processes, public access to reports, agendas and webcasts, and statutory processes such as complaints handling and Freedom of Information requests ensure openness. Engagement is further strengthened through the Strategic Policy Framework review programme updates and public performance reporting arrangements, enhancing communication and involvement with stakeholders.

Principle C: Defining outcomes in terms of sustainable economic, social, and environmental benefits.
The Plan for North Lanarkshire provides a clear, long‑term strategic vision centred on inclusive growth and prosperity for all. This is supported by a strong evidence base, including health check indicators, and is embedded across the organisation, informing decision making, policy development, service delivery, corporate governance, and service redesign. This ensures that decision‑making and service delivery remain consistently aligned to achieving sustainable economic, social, and environmental benefits for local people and communities.

Principle D: Determining the interventions necessary to optimise the achievement of intended outcomes.
Delivery of strategic priorities is enabled through the Programme of Work, which provides a co-ordinated, council‑wide approach to planning and implementation. This is supported by robust governance arrangements, including programme oversight, project management and quality assurance arrangements, and regular review processes that ensure priorities remain current and responsive to changing demands. Recent programme reviews have strengthened the focus on transformation, service redesign, and cross‑cutting delivery to maximise impact and accelerate progress. 

Principle E: Developing the entity’s capacity, including the capability of its leadership and individuals.
The council has established strong leadership structures, with clearly defined roles and responsibilities supported by statutory posts and governance arrangements. Workforce capacity is maintained through structured workforce planning, training, and development frameworks, including corporate learning and development programmes and mandatory training linked to key policies such as the Employee Code of Conduct, and the council’s data protection and information governance duties. Ongoing investment in leadership, organisational development, and operating models supports the council’s ability to deliver its priorities effectively. 

Principle F: Managing risks and performance through robust internal control and strong public financial management.
A comprehensive system of internal control is in place, incorporating risk management strategies, corporate, service, programme, and project risk registers, and strong financial governance arrangements. These are underpinned by regular review processes (including self-evaluation), internal audit activity, and compliance with national standards such as the CIPFA Financial Management Code. The Strategic Performance Framework ensures systematic monitoring and reporting of performance, supported by data, self‑evaluation, and continuous improvement processes, enabling effective scrutiny and management of risks. 

Principle G: Implementing good practices in transparency, reporting, and audit to deliver effective accountability.
The council benefits from robust assurance arrangements, including independent internal and external audit, and structured scrutiny through the Audit and Scrutiny Panel and service committees. A wide range of assurance sources, including annual governance reviews, self‑evaluation processes, and external audit reporting, provide a strong evidence base on effectiveness and continuous improvement. Enhanced public performance reporting, including improved accessibility of data through digital platforms, supports transparency, accountability, and continuous improvement. 

1.2     Governance outlook

The council is satisfied that its governance arrangements are fit for purpose and provide reasonable assurance regarding the effectiveness of governance, risk management, and internal control. Recognising the increasingly complex operating environment, the council remains committed to maintaining and strengthening its governance framework through continuous improvement, regular review, implementation of identified enhancement actions, and ongoing monitoring of emerging legislation, national policy developments, regulatory requirements, and wider economic, social, environmental, and technological changes. This will ensure governance arrangements remain effective, resilient, and responsive to both local and national priorities, while continuing to support strategic objectives, service transformation, and the delivery of high-quality, sustainable supports and services for the people and communities of North Lanarkshire. 

1.3     Continuous improvement

In accordance with the requirements of the CIPFA Addendum (2025), the improvement actions identified throughout this Annual Governance Statement have been consolidated into the following improvement plan to provide a clear overview of the key governance enhancements to be progressed during the forthcoming year. 

The plan focuses on strengthening governance arrangements, supporting transformation and service redesign, enhancing transparency, accountability, and performance reporting, embedding recognised best practice, and ensuring that the council’s governance framework remains effective, resilient, and fit for purpose in an increasingly challenging financial, operational, and legislative environment. Progress against these actions will be monitored throughout the year to support continuous improvement and the delivery of good governance outcomes.

AreaImprovement actionTarget completion dateOutcome reported to
Governance, assurance, and decision-makingComplete the review of democratic, committee and decision-making governance procedures. December 2026

Policy and Strategy Committee.

Update on the review scheduled to be reported in cycle 1 of 2027.

Update the Strategic Policy Framework guidance, together with the associated roles, responsibilities, and approval arrangements for the development, review, and approval of strategies, policies, and plans, to reflect the outcomes of the democratic governance review and ensure a clear and consistent decision-making framework across the council.January 2027

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

Audit and Scrutiny Panel through the Strategic Frameworks annual position statement scheduled to be in reported in cycle 4 of 2027.

Strengthen the year-end governance review process by introducing a formal Monitoring Officer assurance assessment to consider compliance with statutory enactments and the rule of law, and to identify any incidents of maladministration or injustice relevant to Part II of the Local Government (Scotland) Act 1975, with the outcomes of the assessment informing and being reported through the Annual Governance Statement.March 2027

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

Best ValueUpdate the council’s Strategic Self-Evaluation Framework to align with the requirements and principles of the National Self-Evaluation Framework, strengthening the council’s approach to organisational learning, continuous improvement, performance assessment, and evidence-based self-evaluation.June 2027

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

Audit and Scrutiny Panel through the Strategic Frameworks annual position statement scheduled to be in reported in cycle 4 of 2027.

Implement the improvement actions arising from the Asset Management self-evaluation by: (i) strengthening strategic alignment between asset planning, service priorities, and financial affordability, (ii) enhancing corporate oversight, governance, and consistency of asset management reporting, and (iii) strengthening collaborative working to support effective, co-ordinated, and sustainable management and use of community assets as a collective resource.March 2027*

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

Implement the remaining improvement action arising from the self-evaluation of the council’s compliance with the CIPFA Financial Management Code to review and update the finance e-learning training module.June 2027

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

Complete the implementation of the refreshed staff engagement approach to strengthen employee involvement in decision-making and demonstrate how feedback informs organisational improvement and service delivery.

December 2026

 

 

Policy and Strategy Committee.

through the annual One Workforce report scheduled to be reported in cycle 4 of 2026.

Service redesign and continuous improvementRefresh the Programme of Work Delivery Plan and formalise the supporting governance, reporting, assurance arrangements to ensure effective oversight, accountability, and delivery of council priorities.  This includes completing the implementation of the already agreed corporate arrangements for Benefits Realisation to ensure a single, coherent approach to defining, capturing, and reporting benefits and improved outcomes across the Programme of Work. December 2026

Policy and Strategy Committee.

Through the six monthly Programme of Work monitoring report.

Progress the phased implementation of the council-wide service redesign programme, in line with the approach approved in June 2026, to support transformation, efficiency, effectiveness, and improved service outcomes.Phased approach between June 2026 and June 2028

Policy and Strategy Committee.

Annual service redesign programme progress update in June 2027.

Complete enhancements to public performance reporting arrangements by improving the accessibility, presentation, and transparency of performance information, including the 28 Health Check Indicators, to support public understanding and accountability.June 2026

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

Information GovernanceImplement the improvement actions arising from the Internal Audit of Information Governance by completing outstanding policy reviews and updates, clarifying and strengthening key information governance roles and responsibilities, refreshing training and guidance materials, progressing data sharing agreements and records retention arrangements, and further developing the Information Asset Register to support effective governance, compliance, and accountability.June 2026*

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

Fraud, Ethics, and ComplianceComplete the annual review and update of the Whistleblowing Procedure to ensure it remains aligned with current legislation, best practice and corporate governance requirements, and continues to provide a clear, accessible, and effective framework for raising and addressing concerns.October 2026

Policy and Strategy Committee.

Scheduled to be reported to committee in cycle 4 of 2026.

Deliver awareness and training on gifts and hospitality and conflicts of interest requirements, reinforcing the roles and responsibilities of employees, managers, and Chief Officers in making, reviewing, and approving declarations, and in ensuring the appropriate use, maintenance, monitoring, sign-off, and storage of service registers.March 2027

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

External Auditors annual accounts and wider scope auditsImplement the improvement actions arising from the External Auditors annual accounts and wider scope audit by (i) supporting the development of a sustainable solution for the accounting treatment of infrastructure assets, (ii) strengthening oversight and assurance arrangements for IT security, disaster recovery, and externally hosted systems, (iii) completing the review of Common Good asset disclosure requirements, (iv) reviewing reserves arrangements to strengthen strategic financial planning and clarify the intended use of earmarked reserves, and (v) enhancing governance, scrutiny and decision-making arrangements in relation to exit packages and senior officer severance decisions.March 2027*

Audit and Scrutiny Panel.

Through the 2026/27 Annual Governance Statement in June 2027.

1.4     Overall opinion

The Certification of Assurance, set out in Section 5 of this document, confirms the level of assurance provided by the council’s governance arrangements. Based on the Chief Officer (Audit and Risk)'s annual Internal Audit opinion, reasonable assurance can be placed on the adequacy and effectiveness of North Lanarkshire Council’s governance, risk management, and internal control arrangements, including those of its Group.

Furthermore, the council has established systems to review and continuously improve its governance and internal control environment throughout the year and, as such, the annual review process has provided sufficient evidence that the council’s corporate governance arrangements have operated effectively, and that the council and its group entities have complied with the relevant corporate governance principles in all significant respects. These arrangements are supported by an organisational response that is appropriate to the council’s fraud and corruption risks, with a continued commitment to maintaining vigilance in tackling fraud.

Page last updated:
25 Sep 2026

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