Agenda
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A meeting of the Audit Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday, 11 November 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.
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/19/26 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, and the status of work in progress detailed at Appendix 1; and
iii. note that an additional audit has been agreed and is in progress relating to Common Good Fund – Review of Events and Festivals.
4. Internal Audit Action Tracking
Tracadh Ghnìomhan In-sgrùdaidh
There is circulated Report No. AC/20/26 by the Strategic Lead (Audit and Risk).
The Committee is asked to scrutinise, comment and note the action tracking information provided including the revised target dates for the completion of outstanding actions.
5. Audit Scotland Report – BV4 Thematic: Asset Management
Aithisg Sgrùdadh Alba – BV4 Cuspaireil: Stiùireadh Ghoireasan agus Gnàth-shìde
There is circulated Report No. AC/21/26 by the Strategic Lead (Audit and Risk) and the Council’s External Auditors (Audit Scotland).
The Committee is asked to scrutinise, consider and note the report findings, in particular the key messages on pages 3 and 4, and the improvement action plan at Appendix 1 of the report.
6. Audit Scotland Reports - Highland Council: ISA 260 (report to those charged with governance) and the 25/26 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 25/26, agus Maoinean Urras Carthannach Chomhairle na Gàidhealtachd ISA 260 (aithisg dhaibhsan a tha an urra ri riaghlachas)
a) 25/26 Report to those charged with governance (Highland Council); and 25/26 Highland Council Annual Audit Report
There is circulated Report No. AC/22/26 by the Chief Officer – Corporate Finance and the Council’s External Auditors (Audit Scotland).
The Committee is asked to:-
i. approve the audited accounts for signature;
ii. consider and note the report to those charged with governance on the 2025/26 accounts;
iii. agree that the letter of representation be signed by the Chief Officer Corporate Finance (Section 95 Officer);
iv. scrutinise, consider and note the annual audit report findings, in particular any key audit matters and recommendations;
v. note that the Council has been advised that there are plans across Scotland, to extend current external audit appointments, which had been due to conclude 2026/27, to be extended through to the 2028/29 audit.
b) 25/26 Report to those charged with governance (Highland Council Charitable Trust Funds); and 25/26 Highland Council Charitable Trust Funds Annual Audit Report
There is circulated Report No. AC/23/26 by the Chief Officer – Corporate Finance and the Council’s External Auditors (Audit Scotland).
The Committee is 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 2025/26 accounts; and
iv. scrutinise, consider and note the 2025/26 annual audit report findings.
7. The National Fraud Initiative in Scotland 2026
Iomairt Nàiseanta na Foille ann an Alba 2026
There is circulated Report No. AC/24/26 by the Strategic Lead (Audit and Risk).
The Committee is asked to:-
i. consider and note the Audit Scotland NFI report at Appendix 1;
ii. note the key messages and the associated commentary set out in section 6 of this covering report; and
iii. consider and agree Part A, and note Part B of the checklist at Appendix 2.
8. Commissioner for Ethical Standards in Public Life / Standards Commission: Councillors' Code of Conduct - Investigation into Complaints 2025/26 Coimiseanair airson Inbhean Beusail sa Bheatha Phoblaich/Coimisean nan Inbhean: Còd Giùlain Chomhairlichean - Rannsachadh mu Ghearanan 2025/26
There is circulated Report No. AC/25/26 by the Chief Officer – Legal and Corporate Governance.
The Committee is asked to note:-
i. the ESC has investigated five complaints and, following investigation, the Standards Commission decided to take no further action;
ii. following investigation by the ESC the Standards Commission decided to hold a hearing in respect of:-
a) Councillor Michael Baird. On conclusion of the hearing the Commission found that Councillor Baird had breached the Code and imposed a sanction of suspension of Councillor Baird’s entitlement to attend full Council meetings of Highland Council, for a period of two months.
9. Code of Corporate Governance 2026/27
Còd Riaghlachais Chorporra 2026/27
There is circulated Report No. AC/26/26 by the Chief Officer – Legal and Corporate Governance.
The Committee is asked to:-
i. note the progress on delivering the 2025/26 Code of Corporate Governance; and
ii. approve the 2026/27 Code of Corporate Governance.
10. Regulation of Investigatory Powers (Scotland) Act
Achd Riaghladh Chumhachdan Sgrùdaidh (Alba)
There is circulated Report No. AC/27/26 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 further reports will be forthcoming to future meetings.