Business Operations and Partnerships Department
Director of Business Operations & Partnerships: Louise Pringle
Council Headquarters, Eastwood Park, Giffnock, East Renfrewshire, G46 6UG
Phone: 0141 577 3000
website: www.eastrenfrewshire.gov.uk
Date: 21 September 2023
When calling please ask for: Linda Hutchison (Tel. No 0141 577 8388)
e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

TO: Councillor Andrew Morrison (Chair), Tony Buchanan (Vice-Chair), Provost Mary
Montague and Councillors Paul Edlin, Annette Ireland, David Macdonald and Gordon
Wallace.

AUDIT AND SCRUTINY COMMITTEE
A meeting of the Audit and Scrutiny Committee will be held in the Council Chamber, Council Headquarters, Eastwood Park, Giffnock, on

Tuesday, 26 September 2023 at 2.00pm.

The agenda of business is as listed below.

Yours faithfully
Louise Pringle
L PRINGLE
DIRECTOR OF BUSINESS OPERATIONS & PARTNERSHIPS

AGENDA
1. Report apologies for absence.
2. Declarations of interest.
3. Chair’s Report.

4. Clarification Received on Queries Raised at Previous Meetings – Report by Clerk
(copy attached, pages 3 - 10).

5. 2022/23 Annual Accounts for the Council’s Charitable Trusts and External Audit
(International Standard on Auditing 260) Report – Report by Head of
Accountancy (Chief Financial Officer)(copy attached, pages 11 - 28).

6. 2022/23 Annual Accounts and Draft Annual Audit Report for East Renfrewshire
Council – Report by Head of Accountancy (Chief Financial Officer)(copy
attached, pages 29 - 238).

7. Interim Treasury Management Report 2023/24 – Quarter 1 – Report by Head of
Accountancy (Chief Financial Officer)(copy attached, pages 239 - 254).

8. National Fraud Initiative – Update – Report by Director of Business Operations
and Partnerships (copy attached, pages 255 - 258).

9. Managing the Risk of Fraud and Corruption – Fraud Response Statement 2022/23
(Including Audit Scotland Fraud and Irregularity Report 2022/23) – Report by
Chief Executive (copy attached, pages 259 - 266).

10. Strategic Risk Register and Risk Management Progress – Biannual Report –
Report by Chief Executive (copy attached, pages 267 - 290).

11. Review of Council’s Risk Appetite in Relation to Reputational Risk - Report by
Chief Executive (copy attached, pages 291 - 296).

12. Local External Audit Report – Best Value Thematic Report – Year Ended 31
March 2023 - Leadership of the Development of New Local Strategic Priorities –
Report by External Auditor (copy attached, pages 297 - 324).

13. Internal Audit Annual Report 2022/23 – Report by Chief Auditor (copy attached,
pages 325 - 344).

For information on how to access the virtual meeting please email:-
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

A recording of the meeting will also be available following the meeting on the Council’s YouTube Channel

www.youtube.com/user/eastrenfrewshire/videos

This document can be explained to you in other languages and can be provided in
alternative formats such as large print and Braille. For further information, please contact Customer First on 0141 577 3001 or email

This e-mail address is being protected from spambots. You need JavaScript enabled to view it

You can read Reports/Papers on Council webpage here -

www.eastrenfrewshire.gov.uk/audit-and-scrutiny-committee-260923

Meeting would appear to be 26 September 2023 not 28 September 2023

------ Original Message ------
To: "Blair, Michelle" < This e-mail address is being protected from spambots. You need JavaScript enabled to view it >
Sent: Tuesday, 12 Sep, 2023 At 10:14
Subject: RE: ERC issues with use of 900 ClassVR headsets designed by Avantis that cost £250,000 and appear to have never been used

Dear Chief Auditor Michelle Blair


It is disappointing you chose to ignore my email request below sent Monday, 21 Aug, 2023.

A response to this email giving the requested information will be appreciated.

I have provided you with information to indicate that there is now mounting evidence of problems with this project, the lack of use of these VR Headsets and that the £250,000 spend was not value for money.

There have been no updates and/or reports on this matter since being raised in March 2023 (7 months ago).

Would appreciate confirmation that you will be presenting update on this matter to the upcoming Audit & Scrutiny Meeting to be held 28 September 2023.

If not, would appreciate if you give reasons why not.

This update should include update on current progress, date when audit will be completed and answers to questions raised below.

I do not think this an unreasonable request.

Before this meeting on 28 September 2023, I would ask for your help in giving me details of where I can find information regarding the progress of your Audit and where I can get answers to the following -

The Chief Auditor committed to providing this information -

1. ' Some testing will be incorporated into future cyclical school audit...'

What does this 'Testing' involve?

What will it test for?

What has this 'testing' to do with £250,000 cost and use of 900 ClassVR headsets designed by Avantis being considered Value for Money?

Where can details of these 'cyclical school cluster audits' be found?

2. As an initial general exercise, I have asked Neil within my team to obtain a sample of school inventories to see if the headsets are recorded and if the numbers agree to the initial purchase for each school.

Did Neil obtain a sample?

Did Neil establish if the headsets are recorded?

What did Neil establish regarding the numbers?

3. Regarding usage, this might be more difficult to check as I don’t think it is recorded by the schools and might just be anecdotal by asking parents of pupils that I know and school employees when school visits take place.

What has been established regarding usage?

Were parents of pupils/school employees asked about usage?

4. I will try and obtain further information from IT about obsolescence.

What information was obtained regarding obsolescence?


As, there has been no mention and/or information given at any Audit & Scrutiny Meeting or via Agenda/Papers or Chair's report, I don't think it unreasonable to seek an update on current progress.


Your help in giving the above requested information is appreciated.


Thanks

Meeting would appear to be 26 September 2023 not 28 September 2023

------ Original Message ------
To: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Sent: Tuesday, 19 Sep, 2023 At 14:34
Subject: Re: ERC issues with use of 900 ClassVR headsets designed by Avantis that cost £250,000 and appear to have never been used

Dear Chair Audit & Scrutiny Committee Andrew Morrison

There is now mounting evidence of problems with this project, the lack of use of these VR Headsets and that the £250,000 spend was not value for money.

Again, would appreciate courtesy of acknowledgement that you were able to open and read the 5 attached files in my email of 11 August 2023.

Again, would appreciate update on current progress and answers to questions raised below.

Would appreciate that an update be given at the upcoming Audit & Scrutiny Meeting to be held 28 September 2023.

This update should include update on current progress, date when audit will be completed and answers to questions raised below.

Your help is appreciated.

Thanks


------ Original Message ------
To: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Sent: Tuesday, 12 Sep, 2023 At 09:40
Subject: Re: ERC issues with use of 900 ClassVR headsets designed by Avantis that cost £250,000 and appear to have never been used

Dear Chair Audit & Scrutiny Committee Andrew Morrison

There is now mounting evidence of problems with this project, the lack of use of these VR Headsets and that the £250,000 spend was not value for money.

Again, would appreciate courtesy of acknowledgement that you were able to open and read the 5 attached files in my email of 11 August 2023.

Again, would appreciate update on current progress and answers to questions raised below.

Would appreciate that an update be given at the upcoming Audit & Scrutiny Meeting to be held 28 September 2023.

This update should include update on current progress, date when audit will be completed and answers to questions raised below.

Your help is appreciated.

Thanks

------ Original Message ------
To: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Sent: Monday, 28 Aug, 2023 At 11:33
Subject: Re: ERC issues with use of 900 ClassVR headsets designed by Avantis that cost £250,000 and appear to have never been used

Dear Chair Audit & Scrutiny Committee Andrew Morrison

Again, would appreciate courtesy of acknowledgement that you were able to open and read the 5 attached files in my email of 11 August 2023.

Again, would appreciate update on current progress and answers to questions raised below.

Your help is appreciated.

Thanks

------ Original Message ------
To: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Sent: Monday, 21 Aug, 2023 At 10:48
Subject: Re: ERC issues with use of 900 ClassVR headsets designed by Avantis that cost £250,000 and appear to have never been used

Dear Chair Audit & Scrutiny Committee Andrew Morrison

Would appreciate courtesy of acknowledgement that you were able to open and read the 5 attached files in my email of 11 August 2023.

Again, would appreciate update on current progress and answers to questions raised below.

Your help is appreciated.

Thanks

------ Original Message ------
To: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Sent: Tuesday, 15 Aug, 2023 At 14:41
Subject: Re: ERC issues with use of 900 ClassVR headsets designed by Avantis that cost £250,000 and appear to have never been used

Dear Chair Audit & Scrutiny Committee Andrew Morrison

Would appreciate acknowledgement that you were able to open and read these 5 attached files.

It is disappointing as Chair you could not give an update to Audit & Scrutiny Committee Meeting Thursday 10 August 2023 at 2.00pm in your report(Agenda item 3) or under Agenda Item 7

7. Internal Audit Plan 2023/24 – Implementation Progress – April to June 2023 – Report by Chief Auditor (copy attached, pages 37 - 52).

When will an update/report be made available?

There is now mounting evidence of problems with this project, the lack of use of these VR Headsets and that the £250,000 spend was not value for money.

After watching and listening to the previous Agenda Item 6 I am seriously concerned over the lack of accountability over the this £250,000 spend and value for money for Council Tax Payers.

I would ask for your help in giving me details of where I can find information regarding the progress of this Audit where I can get answers to the following -

The Chief Auditor committed to providing this information -

1. ' Some testing will be incorporated into future cyclical school audit...'this

What does this 'Testing' involve?

What will it test for?

What has this 'testing' to do with £250,000 cost and use of 900 ClassVR headsets designed by Avantis being considered Value for Money?

Where can details of these 'cyclical school cluster audits' be found?


2. As an initial general exercise, I have asked Neil within my team to obtain a sample of school inventories to see if the headsets are recorded and if the numbers agree to the initial purchase for each school.

Did Neil obtain a sample?

Did Neil establish if the headsets are recorded?

What did Neil establish regarding the numbers?


3. Regarding usage, this might be more difficult to check as I don’t think it is recorded by the schools and might just be anecdotal by asking parents of pupils that I know and school employees when school visits take place.

What has been established regarding usage?

Were parents of pupils/school employees asked about usage?


4. I will try and obtain further information from IT about obsolescence.

What information was obtained regarding obsolescence?

As, there has been no mention and/or information given at any Audit & Scrutiny Meeting or via Agenda/Papers or Chair's report, I don't think it unreasonable to seek an update on current progress.

Your help in giving the above requested information is appreciated.

Thanks