27 May 2026: Audit Committee

A meeting of the Audit Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday, 27 May 2026 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/6/26 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 of the report, and the status of work in progress detailed at Appendix 1;
iii. agree to the removal of the planned audit of Asset Management for the reasons set out in section 6.1 of the report; and
iv. consider and note the Scottish Local Authorities Chief Internal Auditors Group Annual Report 2025 provided at Appendix 2.

4. Internal Audit Action Tracking
Tracadh Ghnìomhan In-sgrùdaidh

There is circulated Report No. AC/7/26 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. Salary Overpayments Update
Cunntas às Ùr mu Phàighidhean Anabarrach Rola-pàighidh

There is circulated Report No. AC/8/26 by the Assistant Chief Executive – Corporate.

The Committee is asked to:-

i. note the positive payment accuracy, which increased to 99.89% in 2025/26;
ii. note the reduction in overpayments across all three Clusters compared to 2024/25; and
iii. agree that performance information will continue to be shared with Cluster Management, and that appropriate action will be taken to support the Payroll Team being advised timeously of all changes. The sharing of performance information will be included in future Cluster performance reports presented to strategic committees.

6. Internal Audit Annual Report 2025/26
Aithisg Bhliadhnail In-Sgrùdaidh 2025/26

There is circulated Report No. AC/9/26 by the Strategic Lead (Audit and Risk).

The Committee is asked to consider and note the content of the report, the audit opinion provided and to raise any relevant points with the Strategic Lead (Audit & Risk).

7. Fraud and Whistleblowing Annual Report 2025/26
Cunntas Bliadhnail Foille agus Innsireachd 2025/26

There is circulated Report No. AC/10/26 by the Strategic Lead (Audit and Risk).

The Committee is asked to:-

i. scrutinise and note details of the fraud investigations and activities undertaken as detailed in section 5.1 of the report;
ii. scrutinise and note the information at section 5.2 including the low number of whistleblowing concerns requiring investigation;
iii. note that where a fraud or whistleblowing investigation identifies any control weakness, fraudulent activity or areas for improvement, this will be addressed through an Internal Audit report which will be provided to Committee for scrutiny purposes; and
iv. note the updated self-assessment against the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption set out at Appendix 1.

8. Audit Committee Annual Report 2025/26
Aithisg Bhliadhnail Comataidh an Sgrùdaidh 2025/26

There is circulated Report No. AC/11/26 by the Audit Committee Chair.

The Committee is asked to agree:-

i. the Audit Committee Chair’s annual report including the identified areas for improvement. The report is provided at Appendix 1; and
ii. that this report should be recommended to Council to acknowledge that the necessary assurances have been provided by the Audit Committee to demonstrate that it has fulfilled its purpose and can demonstrate its impact for 2025/26.

9. Internal Audit Annual Plan 2026/27
Plana Sgrùdaidh Bliadhnail In-sgrùdaidh 2026/27

There is circulated Report No. AC/12/26 by the Strategic Lead (Audit and Risk).

The Committee is asked to approve the 2026/27 Internal Audit Plan which is provided at Appendix 1.

10. Draft 2025/26 Annual Governance Statement
Dreachd Aithris Riaghlachais Bhliadhnail 2025/26

There is circulated Report No. AC/13/26 by the Chief Officer – Corporate Finance.

The Committee is asked to review and note the draft 2025/26 Annual Governance Statement provided at Appendix 1. In doing so, consideration should be given to the CIPFA requirements set out at section 5.2.

11. Review of Corporate Risks
Ath-Sgrùdadh air Cunnartan Corporra
 
There is circulated Report No. AC/14/26 by the Assistant Chief Executive – Corporate.

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.

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

Seven applications for authorisation in terms of the Regulation of Investigatory Powers (Scotland) Act 2000 were approved between 1 October 2025 and 30 April 2026. The seven applications were for directed surveillance. 

The Committee is invited to note the number of approvals and that the Council continues to be a modest user of the powers. A report will be forthcoming to the November meeting.

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

The Committee is asked to resolve 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 involves the likely disclosure of exempt information as defined in Paragraph 1 of Part 1 of Schedule 7A of the Act.

14. Internal Audit Reviews and Progress Report
Ath-sgrùdaidhean In-sgrùdaidh agus Aithisg Adhartais

There is circulated to Members only Report No. AC/15/26 by the Strategic Lead (Audit and Risk) the following final confidential audit report.

Place Cluster - Harbours.

The Committee is invited to note the report.