6.1 The information below outlines issues identified during the Internal Audit programme of work for the previous year, 2021/22. An update providing details of the actions taken to address each issue has also been included.
1. Stakeholder monitoring
Annual Governance Statement 2022/23
Contents
6. Previous year issues - 2021/22
| Issue raised |
|---|
| Programme of Work reports to committee are considered not to always easily allow elected members to monitor and/or assess progress against plans (timescales and budgets). Similarly, there is currently no mechanism to easily allow senior management to review progress across the range of Programme of Work activities. Management has previously committed to improving the ability of key stakeholders to monitor the progress of major projects / programme of work activities. |
| Action taken |
|---|
| As reported to the Audit and Scrutiny Panel in May 2023 - through the Internal Audit report which follows up on actions previously agreed by management in response to audit recommendations - the recent changes in the council’s governance arrangements will impact on the oversight and reporting of key corporate projects. The Programme of Work to 2028 (approved at the Policy and Strategy Committee in March 2023) now comprises seven overarching themes which require to be integrated and aligned with the existing programmes and projects and the existing investment from the Strategic Capital Programme in order to prioritise activities and develop supporting delivery plans. The tasks in this process have been clearly defined and were approved by the Corporate Management Team in April 2023. Work to progress this will take place over the next 12 months with interim updates on progress scheduled to be presented to the Corporate Management Team in August 2023 and February 2024 for submission thereafter to the Policy and Strategy Committee. The Strategic Capital Delivery Group has recently agreed a new approach to the reporting of capital projects, which would include senior management team oversight and is currently under development. The Internal Audit comment in respect of this response states “We acknowledge the change in direction of travel with the recently refreshed programme of work and the planned development of governance arrangements associated with this. We have assessed the residual risk as ‘Medium’ as the recommendation has not yet been fully addressed. It is Internal Audit’s view that the original audit recommendation can be addressed as part of actions scheduled during the next 12 months. This will include ensuring that the refreshed governance arrangements incorporate reporting on progress of all key corporate projects (both capital and non-capital) and the consideration of timely remedial action to ensure that projects are delivered successfully and on time.” |
2. Performance reporting
| Issue raised |
|---|
| Implementation of effective, timely, and regular performance reporting on key strategic and operational performance measures to the Corporate Management Team and Service Committees has been significantly impacted over the last two years due to the need to respond to, and prioritise resources as a result of, the pandemic. |
| Action taken |
|---|
| As reported to the Audit and Scrutiny Panel in May 2023 - through the Internal Audit report which follows up on actions previously agreed by management in response to audit recommendations - a report submitted to the Corporate Management Team in December 2022 outlined the Performance Reporting Schedule for 2023 to 2024, which will facilitate scrutiny and challenge by the senior management team and Elected Members. This was also reported to the Audit and Scrutiny Panel in February 2023. Indicators within the Strategic Performance Framework are being reviewed and updated in line with the development of Chief Officers’ reporting to committee as per the Performance Reporting Schedule. The review and update of indicators and targets within the Strategic Performance Framework is nearing completion and the updated suite of measures and targets are scheduled to be made available for oversight and challenge by the Business Management Team in 2023 in line with their new governance and assurance role. Final developments to the Strategic Performance Framework will be considered in line with the requirements of the new Programme of Work and its associated delivery plans. The list of Calculating Officers and Verification Officers clearly show the corresponding service for each indicator in the Framework. The Internal Audit comment in respect of this response states “We acknowledge that there has been significant action taken to address the recommendation made and that the requirements of the new Programme of Work and its associated delivery plans will be taken into consideration when finalising the review of performance measures and targets. We consider the revised timescale to be reasonable and have assessed the residual risk for this recommendation as ‘Low’.” |
3. Council operating model
| Issue raised |
|---|
| A range of significant actions in relation the council’s current and future operating model have been set out and linked to a range of planned developments impacting upon workforce, digital transformation, service re-design, assets, and governance. The issue raised relates to how these actions are managed and progressed and the extent to which these contribute towards the achievement of the council’s ambitions. |
| Action taken |
|---|
| A report submitted to the Policy and Strategy Committee in March 2023 provided an update on the council’s Leadership and Operating Model, for which a three phased approach to the model over a 10 year period was initially approved in December 2021. The report in March 2023 outlined what had been delivered in phase one and set out a 2-year plan for phase two as an integrated provision that depends on strategic alignment between projects and programmes delivering against The Plan for North Lanarkshire. The report stressed the importance of an iterative phased and structured approach to engaging and involving partners, stakeholders, the community, and the voluntary sector with the new ways of working together that are required. At this time approval was granted on the 2-year plan in order to grasp the challenges and opportunities ahead and move towards the longer term operating model. As reported to the Audit and Scrutiny Panel in May 2023 through the quarterly risk management update, the risk on the Corporate Risk Register for the Target Operating Model - ensuring resources (workforce, digital and assets) and service delivery are fully aligned to support the successful implementation of the council’s future operating model - is currently under development. |