Agendas, reports and minutes

A meeting of the Audit Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday, 12 November 2025 at 2.00pm.

Webcast Notice: This meeting will be filmed and broadcast over the Internet on the Highland Council website and will be archived and available for viewing for 12 months thereafter.

You are invited to attend the meeting and a note of the business to be considered is attached.

Yours faithfully

Stewart Fraser 
Chief Officer – Legal and Corporate Governance

Business

1. Apologies for Absence
Leisgeulan

2. Declarations of Interest/Transparency Statement
Foillseachaidhean Com-pàirt/ Aithris Fhollaiseachd

Members are asked to consider whether they have an interest to declare in relation to any item on the agenda for this meeting. Any Member making a declaration of interest should provide some information on the nature of the interest and leave the meeting at the appropriate time. Advice may be sought from officers prior to the meeting taking place.

3. Internal Audit Reviews and Progress Report
Ath-sgrùdaidhean In-sgrùdaidh agus Aithisg Adhartais      
 
There is circulated Report No. AC/22/25 by the Strategic Lead (Audit and Risk). 

The Committee is asked to:-

i. consider and note the Final Reports referred to in section 5.1 of the report;
ii. scrutinise and note the current work of the Internal Audit Section outlined at sections 6 and 7, and the status of work in progress detailed at Appendix 1;
iii. agree the removal of the planned audit review of Fostering and Adoption (section 6.1 of the report); and
iv. note that a new audit, “Review of exit packages” has commenced which will enable the Council to address the expectations of the Accounts Commission.

4. Internal Audit Action Tracking
Tracadh Ghnìomhan In-sgrùdaidh

There is circulated Report No. AC/23/25 by the Strategic Lead (Audit and Risk).

The Committee is asked to scrutinise, comment upon and note the action tracking information provided, including the revised target dates for the completion of outstanding actions.

5. Failure to Prevent Fraud Offence
Coire Fàilligeadh Bacadh a Chur air Foill

There is circulated Report No. AC/24/25 by the Strategic Lead (Audit and Risk).

The Committee is asked to:-

i. consider and note that the Council does already have reasonable fraud prevention procedures in place.  However, as set out in sections 5.4 and 5.5 of the report, further work is being undertaken to enhance these; and
ii. approve the revised Counter Fraud Policy at Appendix 1 and Whistleblowing Policy at Appendix 2.

6. Salary Overpayments Update
Cunntas às Ùr mu Phàighidhean Anabarrach Rola-pàighidh

There is circulated Report No. AC/25/25 by the Assistant Chief Executive – Corporate.

The Committee is asked to:-

i. note the progress made including a payment accuracy rate of 99.91% for 2025/2026 for the period to September 2025; and
ii. agree that a report is taken to the Audit Committee on 27 May 2026 which will report on 2025/2026 performance.

7. Review of Corporate Risks
Ath-Sgrùdadh air Cunnartan Corporra 

There is circulated Report No. AC/26/25 by the Strategic Lead (Audit and Risk).

The Committee is asked to:-

i. scrutinise and note the Corporate Risk Register provided at Appendix 1; and 
ii. consider and note the risk profile at Appendix 2.

8. Audit Scotland Reports - Highland Council: ISA 260 (report to those charged with governance) and the 24/25 Annual Audit Report, and, Highland Council Charitable Trust Funds: ISA 260 (report to those charged with governance)
Aithisgean Buidheann-Sgrùdaidh na Alba - Comhairle na Gàidhealtachd ISA 260 (aithisg dhaibhsan a tha an urra ri riaghlachas) agus Aithisg Sgrùdaidh Bhliadhnail 24/25, agus Maoinean Urras Carthannach Chomhairle na Gàidhealtachd ISA 260 (aithisg dhaibhsan a tha an urra ri riaghlachas)

a) 24/25 Report to those charged with governance (Highland Council); and 24/25 Highland Council Annual Audit Report

There is circulated Report No. AC/27a/25 by the Chief Officer – Corporate Finance and the Council’s External Auditors (Audit Scotland).

Members are asked to:-

i. approve the audited accounts for signature;
ii. agree that the letter of representation be signed by the Chief Officer  Corporate Finance (Section 95 Officer);
iii. consider and note the report to those charged with governance on the 2024/25 accounts; and
iv. scrutinise, consider and note the annual audit report findings, in particular the significant finding and key audit matters on pages 9-10 and the follow up of prior year recommendations at Appendix 1 of the report.

b) 24/25 Report to those charged with governance (Highland Council Charitable Trust Funds); and 24/25 Highland Council Charitable Trust Funds Annual Audit Report  

There is circulated Report No. AC/27b/25 by the Chief Officer – Corporate Finance and the Council’s External Auditors (Audit Scotland).

Members are asked to:-

i. approve the audited accounts for signature;
ii. agree that the letter of representation be signed by the Treasurer on behalf of the Trustees;
iii. consider and note the report to those charged with governance on the 2024/25 accounts; and
iv. scrutinise, consider and note the annual audit report findings. 

9. Commissioner for Ethical Standards in Public Life / Standards Commission: Councillors' Code of Conduct - Investigation into Complaints 2024/25
Coimiseanair airson Inbhean Beusail sa Bheatha Phoblaich/Coimisean nan Inbhean: Còd Giùlain Chomhairlichean - Rannsachadh mu Ghearanan 2024/25

There is circulated Report No. AC/28/25 by the Chief Officer – Legal and Corporate Governance.

The Committee is asked to note:-

i. the Ethical Standards Commissioner has investigated five complaints and, following investigation, the Standards Commission decided to take no further action; and
ii. following investigation by the Ethical Standards Commissioner the Standards Commission decided to hold hearings in respect of :-

a) Councillor Kate Willis. On conclusion of the hearing the Commission found that Councillor Willis had breached the Code and imposed a sanction of censure. 

b) Councillor Michael Baird. On conclusion of the hearing the Commission found that Councillor Baird had breached the Code and imposed a sanction of suspension for two months. 

10. Regulation of Investigatory Powers (Scotland) Act
Achd Riaghladh Chumhachdan Sgrùdaidh (Alba)

There is circulated Report No. AC/29/25 by the Chief Officer – Legal and Corporate Governance. 

The Committee is asked to note the Council continues to make appropriate use of the powers and that a further report will be forthcoming to the May 2026 meeting.