Agendas, reports and minutes

Minutes of Meeting of the Audit and Scrutiny Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday, 24 September 2020 at 10.30am.

Present:
Mr G Adam, Mr R Balfour, Mrs J Barclay (substitute), Mr B Boyd, Mr R Bremner, Mrs M Davidson, Mr D Louden, Mr G MacKenzie, Mr S Mackie, Mrs A MacLean, Mr D Macpherson, Mrs M Paterson, Mr P Saggers, and Mr B Thompson.   

Non-Members also present:
Mr A Baxter, Mr R Gale, Mr K Gowans, Mr A Henderson, Mr A Jarvie, Ms E Knox, Mr D MacPherson, and Mr R MacWilliam.                           

Officials in Attendance:
Ms D Manson, Chief Executive
Ms L Denovan, Executive Chief Officer - Resources & Finance
Ms K Lackie, Executive Chief Officer - Performance & Governance
Mr M MacLeod, Executive Chief Officer - Infrastructure & Environment
Mr S Fraser, Head of Corporate Governance 
Mr C Howell, Head of Infrastructure 
Mr F MacDonald, Head of Property & Facilities Management
Ms S McKandie, Head of Revenues and Customer Services 
Mr J Shepherd, Head of ICT & Digital Transformation 
Ms T Urry, Head of Roads & Transport 
Ms E Johnston, Corporate Audit & Performance Manager
Miss D Sutherland, Corporate Audit Manager
Mr S Carr, Corporate Performance Manager 
Ms R Cleland, Corporate Communications Manager
Mrs M Grigor, Finance Manager 
Mr D Mackenzie, Trading Standards Manager
Mr B Murison, Revenues Manager
Ms A MacNeill, Senior Public Relationship Officer
Mr R Bamborough, Senior Sustainability Officer 
Mr J Campbell, Senior Auditor
Mr P Hankinson, Senior Auditor 
Mr S Manning, Principal Traffic Officer 
Miss J Maclennan, Principal Administrator
Mrs L Dunn, Principal Administrator
Ms M Zavarella, Administrative Assistant 

Also in attendance:
Ms J Brown, Director, Public Sector Assurance, Grant Thornton

An asterisk in the margin denotes a recommendation to the Council.  
All decisions with no marking in the margin are delegated to Committee.

Mr G MacKenzie in the Chair

1. Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mrs J Barclay.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

The Committee NOTED the following declarations of interest:-

Item 6: Mr A Henderson (non-financial)
Item 7: Mrs M Davidson (non-financial)

3. External Audit Report
Aithisgean Sgrùdaidh bhon Taobh A-muigh

There had been circulated the following Annual Report prepared by the Council’s External Auditors (Grant Thornton) issued since the last Audit and Scrutiny Committee:-

Annual Report 2019/20 – progress update and timeline

The Committee NOTED the terms of the report as circulated.

4. Internal Audit Annual Report 2019/2020
Aithisg Bhliadhnail In-Sgrùdaidh 2019/2020

There had been circulated Report No. AS/1/20 dated 14 September 2020 by the Corporate Audit Manager.

During discussion, Members raised the following issues:-

• regarding the carbon reduction commitment, additional reassurance was sought around its recording and a suggestion was made that the Chair of the Climate Change Working Group discuss with Officers how to get a better system of control and assurance in place. In response, it was confirmed that the CRC scheme had been abolished due to the complexities involved and the new system would allow for more confidence moving forward; 
• as carbon reduction was important to constituents, Members needed to receive regular information and updates to be able to adequately answer questions and/or provide resources;
• it was crucial that staff had software that worked properly and was used for its intended purpose; 
• it was queried if the sole outstanding action with respect to fraud investigations would meet its target date of 30 September 2020.  In response, the Corporate Audit Manager indicated that she would investigate and confirm the position with Members;
• a refresher session on the Code of Conduct and other relevant policies should be provided to Members so that they could point staff in the right direction if they were approached; and
• information was sought on the impact that Covid-19 had had on the service and in ensuring controls remained in place without the team experiencing an increase in the number of audits that had limited or reasonable assurance. In response, it was pointed out that the internal audit report was for 2019/2020 and this did not cover the Covid-19 period. Generally, there was a risk to internal controls as a result of Covid-19 and this would be a focus of the current ear’s audit.  

Thereafter, the Committee:- 

i.     NOTED the content of the report and the audit opinion provided;
ii.    AGREED that Corporate Communications should complete a press release in relation to the carbon reduction efforts of the Council; and
iii.   AGREED that the Corporate Audit Manager would confirm if the sole outstanding action with respect to fraud investigations would meet its target date of 30 September.

5. Internal Audit Reviews and Progress Report
Ath-bhreithneachaidhean In-sgrùdaidh agus Aithisg Adhartais

There had been circulated Report No. AS/2/20 dated 14 September 2020 by the Corporate Audit Manager which summarised the final reports issued since the date of the last meeting, together with details of work in progress and other information relevant to the operation of the Internal Audit Section.

Resources & Finance – Income Systems (Substantial Assurance)

During discussion, information was sought and received by Members in relation to the following issues:-

• it was queried, and confirmed, that AXIS and Paye.net were two separate elements of the same system, Capita 360; 
• the percentage of draft reports responded to by the client within 20 days of receipt had a target of 85% but a response rate of only 20% and it needed to be made clearer that a prompt response was mandatory; 
• it was questioned if the queried work with sub-contractors was reflective of where the trades review was at and how it might be considered in the future, given its great interest to communities and Members; 
• with respect to procurement, and given the savings to be made through joint procurement initiatives, information was sought as to the extent of engagement with the Redesign Board. In response, it was confirmed that any issues and savings that had been identified by the Redesign Board would be considered;
• in response to concerns that audits were being delayed at the request of management, assurances were provided that this was not the case. For example, the ICT arrangement in school had been delayed due to a rollout of devices by Wipro; 
• a number of audits had been carried forward to 2021 and there was concern that this was due to a lack of resources. Assurance was sought, and received, that additional posts were being recruited for and the team would be up to full complement shortly; 
• with respect to funding to external and third sector organisations, it was queried whether high levels of engagement in communities due to Covid-19 had been a reason for this audit being carried forward. In response, it was confirmed that the audit had been put on hold due to policy staff being heavily involved in humanitarian efforts;  
• regarding the review of charging and monitoring of time to projects, it was confirmed that the evaluation mechanism would be through the Redesign Board; 
• staff were commended for finding a solution to reconcile with ledgers with bank statements; 
• concern was raised regarding suspense accounts but, in response, an assurance was provided that the new system would reduce the balances in such accounts. It was also highlighted that, despite the volume, most transactions were of low value; and
• the importance of transparency with respect to trades and the award of contracts in ensuring best value for the ‘public pound’ without sacrificing quality was emphasised. In response, it was confirmed that critical to any framework was monitoring the performance of sub-contractors to ensure they were performing as expected and, if no improvements were made, they should be removed from the framework.  

Infrastructure & Environment – Local Full Fibre Networks Project (Reasonable Assurance)

During discussion, information was sought and received by Members in relation to the following issues:-

• regarding payments made to the supplier, a payment of £965k was being withheld until specific milestones were achieved and an update was sought regarding progress and a deadline for DCMS. In response, it was confirmed that milestones had been met and there was a backstop date of 31 March 2021 for the delivery of the project.  There would however be an opportunity to discuss with DCSM if an extension would be allowed due to the impact of Covid-19. It was further confirmed that the Corporate Audit and Performance Manager was in the process of reviewing the Council’s financial regulations on best practice and it was hoped that this would be completed by end of the financial year; 
• there was no guidance within the Council’s financial regulations regarding the approval of capital expenditure for self-funding projects. In response, the Executive Chief Officer, Infrastructure and Environment, advised that, despite issues with lack of guidance, there was a review board with all key partners which had been a good project management model and there was confidence that this was meeting the requirements of the grant agreement; 
• regarding broadband, it was clarified that the broadband covered in the report was separate money than the scope of the City Region Deal money; and
• an update was sought on the City Region Deal Monitoring Group and it was suggested that it needed to meet more often. In response, the Leader agreed to convene a meeting as soon as possible. 

Infrastructure & Environment – Compliance with the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme 2018/19 (Reasonable Assurance)

During discussion, information was sought and received by Members in relation to the following issues:-

• it was questioned if the software had been an issue from the outset of the scheme 4 years prior and, if that was the case, it should have been addressed at a much earlier stage. In response, it was confirmed that the software had been problematic but this scheme had now been eliminated; 
• communication regarding carbon reduction was often lacking and was a common query of constituents. In response, it was pointed out that the Council had saved over 6000 tons of carbon in the current year, an increase of 15% over the previous year, and equated to £85k in savings for the Council. A suggestion was made that Corporate Communications should generate a press release in this respect; and
• it was challenging to collectively pull information together to highlight how the Council had been successful with respect to carbon reduction and the benefits involved and it was agreed that there was room for improvement in this area. 

Infrastructure & Environment – Flood Defence Capital Projects (Substantial Assurance)

During discussion, information was sought and received by Members in relation to the following issues:-

• the flood defence system in Smithton/Culloden was reaching completion but concern had been raised by local  people about flooding further upstream.  The Head of Infrastructure and Development undertook to respond to this out with the meeting; 
• the flood team was commended by Members for their excellent work and it was commented that they were held in high regard by communities; 
• it was emphasised that where there was slippage, communities should be informed; and 
• the challenges around community consultation were acknowledged. It was an important part of the process and the flood team continued to make efforts in this area. 

Infrastructure & Environment – Car Park Arrangements (Reasonable Assurance)

During discussion, information was sought and received by Members in relation to the following issues:-

• in regard to a long-term vacancy in the team, Members were assured that this was currently being addressed and would be resolved soon; 
• concern was raised about the level of unpaid parking fines and the lack of action taken. In response, the Head of Roads and Transport provided reassurance that there was a process in place to chase unpaid fines which ultimately ended up with the Sheriff Court.  It was, however, highlighted that there could be many reasons why fines were not paid promptly e.g. the financial circumstances of the individual; 
• concern was raised about the storage arrangements for abandoned vehicles, many of which were occupying parking spaces, and confusion expressed as to whose responsibility it was to manage this issue. In response, it was pointed out that there were many challenges involved with respect to abandoned vehicles but all of these requirements were being taken into consideration in the preparation of a business case;
• abandoned vehicles were an issue for every Local Authority and this had been raised at the Northern Joint Collaboration Board. It had been suggested that this should be looked at collectively and it would be appear on the agenda of a future Board meeting; 
• regarding concerns about the cash management process, it was confirmed that, following a lean review, a new procedure was in place whereby the cash was now collected, sealed, transported to a centralised location, counted and collated by a security company prior to being banked. Staff were no longer involved in collecting cash and the new process was highly robust and secure;
• it was suggested that a new system was required with respect to permits for caravans. In response, it was confirmed that there was a new permit system which had been put in place on 14 September 2020. This new system had flexibility and this would be looked at moving forward; 
• clarification was sought regarding CCTV cameras in the Rose Street Car Park.  In response, the Principal Traffic Officer advised that he would contact the Member who had raised this issue out with the meeting; and
• a Motion had been brought to the Council in 2018 regarding nuisance vehicles with a view to the matter being referred to the former Environment and Infrastructure Committee. However, this this had still not taken place and an update was requested. The Chair of the Communities and Place Committee agreed to circulate a position statement to Members out with the meeting. 

Thereafter, the Committee:-

i.     NOTED the current work of the Internal Audit Section as detailed in the report and details of progress at Appendix 1; 
ii.    AGREED that a meeting of the City Region Deal Monitoring Group should be convened as soon as possible and regularly thereafter; and
iii.   AGREED that procurement updates be reported to the Redesign Board.

6. Internal Audit Plan 2020/21
Aithisgean Sgrùdaidh bhon Taobh A-muigh

Mr A Henderson declared a non-financial interest in terms of being Chair of HiTrans but, having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude his involvement in the discussion.

There had been circulated Report No. AS/3/20 dated 28 August 2020 March 2020 by the Corporate Audit Manager.

During discussion, Members raised the following issues:-

• confirmation was sought, and provided, that all Executive Chief Officers’ budgets were now in place;
• regarding the audit surrounding the interim appointment of the Executive Chief Officer - Education, the Corporate Audit and Performance Manager provided reassurance that the process was under review and there would be a report provided thereafter. This had not been included in the 2020/21 audit plan and was therefore an unplanned piece of work. Regarding queries about the process involved, it was explained that all the relevant documentation would be examined and an interview list was being prepared. The process would be independent and comprehensive and a ‘lessons learned’ report would be provided at the November meeting; 
• there was concern that Covid-19 could inhibit the work of the audit team if they were unable to access the information required due to time constraints.  It was important that the team were supported so that audits could be completed as required;  
• with respect to the Corporate Fraud Team, assurance was sought that fraud in regard to Council tax and benefits would be followed up; and
• regarding the procurement review, there were potential savings of up to £900k and it was therefore surprising that this had not been given a higher priority in terms of the work plan. It was therefore queried as to whether additional resources could be allocated. 

Thereafter, the Committee APPROVED the Internal Audit Plan for 2020/21 as detailed.

7. Action Tracking
Leantainn Gnìomhachd

Mrs M Davidson declared a non-financial interest in terms of a family member being employed in Community Services but, having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that her interest did not preclude her involvement in the discussion.

There had been circulated Report No. AS/4/20 dated 14 September 2020 by the Corporate Audit Manager.

The Committee NOTED the action tracking information provided, including the revised target dates for the completion of outstanding actions.

8. National Fraud Initiative in Scotland 2018-19
Iomairt Foille Nàiseanta ann an Alba 2018–19 

There had been circulated Report No. AS/5/20 dated 31 August 2020 by the Corporate Audit Manager.

The Committee:-

i.     AGREED the Audit Scotland NFI report, the results for the Highland Council and the associated commentary;
ii.    AGREED the additional reports issued by Audit Scotland relating to fraud risks associated with Covid-19; and
iii.   NOTED that Audit Scotland would be issuing further guidance to public bodies as they moved from the response phase of the pandemic into recovery and renewal.

9. Six-Monthly Review of Corporate Risks
Ath-Sgrùdaidh air Cunnartan Corporra

There had been circulated Report No. AS/6/20 dated 4 September 2020 by the Corporate Audit and Performance Manager.

During discussion, Members raised the following issues:-

• in relation to Corporate Risk 4, Brexit, a number of issues had been raised including there being insufficient time to plan mitigation and the loss of European Union funding and there was concern that there was a lack of planning taking place.  As of yet, no Brexit Plan had been prepared and this was unlikely to be in place before the end of October, leaving little time before Brexit was to take place. It was also essential that the plan reflected the wider Highlands given the likely economic impact;
• a meeting with Ofgem had been requested previously to discuss a range of issues about climate change and it was suggested that this should be included in the Risk Register;
• the definition of the risk associated with the NHS Highland Partnership Agreement, which stated that the renewal had to be approved by June 2020 or there would be significant financial, legal and reputational risk implications, needed to be reviewed; 
• devolved budgets to Area Committees had been ranked as ‘green’ but were not in place and the reasons for this should be explored with the Head of Finance and Commercialism and shared with Committee Members; and
• clarification was sought that risk CR 5.4 was in relation to participatory budgeting and the 1% target.

Thereafter, the Committee:-

i.     AGREED the Corporate Risk Register provided at Appendix 1 and the risk profile at Appendix 2 of the report; 
ii.    NOTED that six monthly reviews of the Corporate Risk Register would continue to be reported each March and September to the Audit and Scrutiny Committee; and
iii.   AGREED that information as to why devolved budgets to Area Committees had been ranked as ‘green’ should be provided to all Committee Members.

10. Code of Corporate Governance
Còd Riaghladh Corporra

There has been circulated Report No. AS/7/20 dated 6 September 2020 by the Head of Corporate Governance.

During discussion, Members raised the following issues:-

• the Code made reference to support for Community Councils and this provided an opportunity to recognise how important they were, together with Community Development Companies and the Third Sector in general, in assisting the Council and communities, including during the Covid-19 crisis;   
• the Budget Leader had introduced a series of monthly budget briefing meetings for all Members and additional information was requested as to their scheduling to allow these to be entered into Members’ diaries in advance;
• all Elected Members had agreed to abide by the Councillors’ Code of Conduct but disappointment was expressed at the tone used in some debates and it was suggested that this merited a refresher course;
• it was important that Elected Members were suitably equipped to fulfil their role and it was important that there were adequate resources in place for them to do so, particularly to make all aware of the significant changes which had taken place to the Code of Conduct since the last Council elections and as a result of the application of Article 10 of the European Convention on Human Rights.  In response, the Leader agreed that Member training was important and undertook to discuss this matter with the ECO – Performance and Governance and the Head of Corporate Governance as a matter of urgency;
• there was always a need to respect the sensitive and confidential nature of the “pink” papers given their potential impact, including on staff and communities;
• clarification was sought as to the route for Members to report any breach of the Code of Conduct by a member of staff; and
• whenever possible the use of acronyms needed to be avoided.

Thereafter, the Committee:-

i.     NOTED the progress on delivering the 2019/20 Code of Corporate Governance;
ii.    APPROVED the 2020/21 Code of Corporate Governance; and
iii.   AGREED the possibility of further training to Elected Members, particularly in relation to the Code of Conduct, be explored by the Executive Chief Officer, Performance and Governance, and the Head of Corporate Governance.

11. Regulation of Investigatory Powers (Scotland) Act 2000 (RIPSA)
Achd Riaghladh Chumhachdan Sgrùdaidh (Alba) 2000 (RIPSA)

There had been circulated Report No. AS/8/20 dated 6 September 2020 by the Executive Chief Officer, Performance and Governance.

The Committee NOTED the terms of the report as circulated.

12. Commissioner for Ethical Standards in Public Life/Standards Commission: Councillors’ Code of Conduct – Investigation into Complaints

There had been circulated Report No. AS/9/20 dated 6 September 2020 by the Head of Corporate Governance.

The Committee NOTED the terms of the report as circulated and that, in respect of the complaints against Highland Council Members concluded during 2019/20, the Commissioner/Commission had found that there had been one breach of the Code of Conduct.

13. Corporate Complaints Process - Annual Report 2019/20
Aithisg Ghearanan Corporra - 2019/20

There had been circulated Report No. AS/10/20 dated 11 September 2020 by the Executive Chief Officer Resources and Finance.

During discussion, Members raised the following issues:-

• there had been a 21% increase in the number of complaints but it was felt that this was more likely to be due to an increased ability to complain as opposed to poorer quality of service;
• concern was expressed at the reduction in the number of citizens’ contacts and it was hoped that they still valued engagement with the Council;
• further information was sought, and provided, on how complaints were monitored and signed-off as having been resolved/concluded;
• a high level of data was being captured and it was suggested that there should be further review of the data analysis process to ensure that the best information was being extracted and all opportunities were being taken. It was also suggested that this report should be presented at an Area level and in doing so it could help identify areas of best practice which could be replicated across the whole of the Highlands;
• it was indicated that there was no consistency in terms of the number of complaints, with significant swings year on year, and further information was sought, and provided, on the reasons for this;
• although the rise in website enquires was encouraging, there was a need to ensure continuation of other accessible methods to make a complaint if necessary;
• there was no Action Plan with the key aim of improving and reducing the number for complaints. Also, it was suggested that there should be a dip-sampling of complaints to get a greater understanding of the nature of complaints with a view to improving overall standards of service; 
• it was highlighted that the Communities & Place Committee had responsibility for complaints and the Audit & Scrutiny Committee examined the results;
• a new system would soon be implemented which would be more effective and create efficiencies. It was also suggested that, prior to purchasing new software, a full specification of the Council’s requirements should be developed and any new system should be trialled via a practice user group to ensure that it fully met the Council’s needs; and
• it was confirmed that there would be Member engagement on the purchase of the new customer IT system.

Thereafter, the Committee:-

i.     NOTED the Council’s performance for Stage 1 (+4.1%) and Stage 2 (-10.15%) complaints; 
ii.    NOTED the volume of complaints received (1,726), which was a 21% increase when compared with the previous year;
iii.   NOTED that the number of complaints received was a low volume at 1% within the context of the scale of the Council’s citizen base and the scope of services provided;
iv.    AGREED to support Officers’ continued participation in the Local Authority Complaint Handlers Network; 
v.     NOTED the changes to the delivery model to bring together a corporate approach and drive performance improvement; and
vi.    AGREED that there be Area oversight of complaints.

14. Highland Council Emergency Plan
Plana Èiginn Chomhairle na Gàidhealtachd

There had been circulated Report No. AS/11/20 dated 8 September 2020 by the Chief Executive.

During discussion, Members raised the following issues:-

• the presentation of the Highland Council Emergency Plan was welcomed as it had been difficult to locate an up to date version of the Plan. It was suggested that it should be circulated to all Members, third sector partners and community groups for feedback;
• Members supported the weekly briefings from the Chief Executive in response to COVID-19 which had been most helpful when dealing with constituents.  In addition, Members also expressed appreciation and praised the work of staff and community groups for their diligent efforts in response to the COVID-19 pandemic. The collaborative working with community groups had been invaluable, particularly in regard to the dissemination of information, and this approach must be continued;
• concern was expressed that the report indicated that there were no financial implications, however, there was a cost to maintaining a continued state of readiness;
• confirmation was provided that each Service had a Business Continuity Plan which comprised succession planning measures for senior management and key service roles;
• information on the senior management structure should be updated and published on the Council’s website;
• the Chair reminded the Committee that the governance procedures utilised during COVID-19 were the subject of both an internal and external audit. In addition, and as agreed at the last meeting of the Council on 10 September 2020, a letter had been issued to the First Minister seeking an increase in information from the Scottish Government Resilience Rooms and a response on this was awaited;
• with regard to the other recent examples of serious incidents referenced in the report, further information was sought, and provided, on monitoring and ensuring completion of agreed actions within set timelines;
• contacting the Council during the pandemic had sometimes been difficult and it was suggested that a crisis communications centre should be established which could be activated during any type of emergency to ensure that contact could be maintained; and
• there was a need for the Plan to be reviewed, as agreed by the Council, to evaluate how successful it had been. The Plan stated that Members must be updated regularly on action taken on their behalf and it had been acknowledged that this should have been done sooner.  It was noted that the audit would investigate these governance aspects but further information was sought on the repercussions of non-compliance with elements of the Plan.     Responding to concerns raised, the Chair explained that the Plan had been updated but acknowledged that it had not been accessible and further advised that review (of the Plan) was an Officer function.

Thereafter, the Committee:-

i.     NOTED that the Council had in place a General Emergency Plan (GEP) which had been produced in compliance with the Civil Contingencies Act 2004 (CCA) and the Civil Contingencies Act 2004 (Contingency Planning) (Scotland) Regulations 2005;
ii.    NOTED that the General Emergency Plan (GEP) had been completely rewritten in 2019 and incorporated best practice, current guidance and learning from exercises and incidents;
iii.   NOTED that internal and multi-agency debriefs on the response to COVID-19, along with a tabletop exercise, had taken place and that the learning would be used to inform future response arrangements;
iv.    NOTED that the Council’s emergency plans would be subject to scrutiny by Internal Audit and the Council’s response to Covid-19 would be subject to scrutiny by external audit; 
v.     AGREED further Member training and awareness sessions/seminars should be provided on Emergency Planning and Resilience structures and processes; and
vi.    NOTED that the Emergency Plan would be circulated to all Members, third sector and community partners.

15. Highland Council Whistleblowing Policy
Poileasaidh Innsireachd Chomhairle na Gàidhealtachd

There had been circulated Report No. AS/12/20 dated 7 September 2020 by the Corporate Audit and Performance Manager.

In presenting the report, the Corporate Audit & Performance Manager advised that the words ‘cannot be guaranteed’ had been omitted from the end of Section 1.4 of the policy and this would be corrected. 

During discussion, Members raised the following issues:-

• the policy was welcomed and also that Trade Unions had been consulted. In this regard, it was vital that the policy was reviewed with Trade Unions to ensure that it was effective and it was noted that a planned review date of  April 2021 had been set;
• it was suggested that the word “employees” should be inserted in the final sentence of Paragraph 4.2 of the report to read “Workers are employees and those who work closely…” ;
• further information was sought, and provided, on who decided if claims were malicious or vexatious.  Confirmation was also provided that reporting to the press would be a breach of the policy (the purpose of which was to provide a safe route for whistleblowing) and could result in the employee being dismissed; 
• it was vital that employees had confidence to come forward to report any concerns and it was therefore felt that an external contractor should be appointed to provide this service, with reference made to the model which had been adopted by Edinburgh City Council. However, concern was expressed that it could be unsettling for employees to have to send information to an anonymous email address and that the responsibility of ensuring anonymity had been placed on the investigator. It was explained that an external provider provided confidence of confidentiality which would encourage employees to raise concerns and also had the added benefit of being able to provide free expert advice to employees and it was thought this impartiality would be welcomed by Trade Unions; 
• the need for this approach was more vital now as Protect, a whistleblowing charity, was reporting an increase in concerns being raised due to workplace Covid restrictions not being followed;
• the policy needed to be more explicit in terms of what it related to and to provide further signposting on where further information and support could be obtained on matters which were outwith the scope of whistleblowing.  In addition, it was felt that further information should be provided on employees’ rights and the various options available;
• although it was noted that the Council had dedicated policies in regard to bullying, a bullying culture within an organisation/department would come under the public interest as defined in the Public Interest Disclosure Act 1998 and therefore the whistleblowing policy would be relevant and this had not been reflected within Paragraph 5.3 of the report. As such, the information in regard to differentiating between bullying and a bullying culture should be strengthened to make this aspect easier to understand; 
• with regard to Paragraph 6.2 of the report, further information was sought on the engagement process which had been undertaken with Trade Unions and it was queried whether further evidence could be provided in support of the Trade Union agreement on maintaining an internal service;
• the Leader of the Council advised that the policy was the result of many months of collaborative working with Trade Unions and that she had a high level of respect for their involvement and opinion. As such, the policy reflected their position but nonetheless she would ask Trade Unions if they wanted to submit a statement for circulation along with the report to Council. Further information on which Unions represented and how many staff were currently Trade Union members would also be provided;
• assurance was sought, and provided, that the policy would be fully communicated to all employees and that the process of reporting would be accessible. It was also suggested that the Council’s Intranet should be updated to indicate senior officers’ responsibilities;
• assurance was also sought that employees would be given confidence to come forward and report any malpractice and that there would be adequate resource in place to enable complaints to be investigated effectively. In this regard, the Chair advised that Internal Audit and the Corporate Fraud Team were independent and any complaints would be fully investigated; and
• further information was sought and provided on the role of Elected Members in the event that they were approached by employees.

Thereafter, the Committee:-

i.     AGREED the revised Highland Council Whistleblowing Policy and to recommend its implementation to the next meeting of the Highland Council on 29 October 2020, subject to the following revisions:-
        a.      the words ‘cannot be guaranteed’ be added at the end of Section 1.4; and
        b.    further details to be provided on the Prescribed Person, Employee Rights and the Trade Unions which had been involved in the consultation process;
ii.    NOTED that the Leader of the Council would ask Trade Unions if they wanted to submit a statement on the policy for circulation along with the report to the full Council;
iii.   NOTED the intention to provide an annual monitoring report to the Audit & Scrutiny Committee beginning in June 2021; 
iv.   NOTED the plan to review the policy with Trade Unions and with Staff Forum input and to report this to the Audit & Scrutiny Committee in June 2021 along with any recommendations for change to be scrutinised and recommended to the full Council for approval; and
v.    AGREED that there should be communication with employees on the revised Whistleblowing Policy.

16. Exclusion of the Public
Às-dùnadh a’Phobaill

It was RESOLVED that, under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting for the following item on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 1, 8 & 9 of Part 1 of Schedule 7A of the Act.

17. Internal Audit Reviews
Ath-bhreithneachaidhean In-sgrùdaidh

There had been circulated to Members only Reports by the Corporate Audit Manager which summarised two final confidential reports issued since the date of the last meeting as follows:-

• Infrastructure & Environment (formerly Community Services): Establishments Investigation – Control Weaknesses 
• Resources & Finance – ICT Contract Management 

Following detailed discussion, the Committee NOTED the reports as presented.

The meeting ended at 5.05pm.