Minutes of Proceedings

Session: 2014/2015

Date: 05 December 2014

1. APOLOGIES

1.1 No apologies were received.

2. DECLARATION OF INTERESTS

2.1 In relation to any discussions relating to Members' Expenses, Peter Weir declared an interest as an MLA.

3. MINUTES OF THE PREVIOUS MEETING

3.1 The minutes of the SARC meeting held on 2 October 2014 were approved without amendment.

4. MATTERS ARISING

4.1 Paragraph 4.1

SARC members noted the revised policy on Business cases which had been issued to staff, and they discussed the terminology of "Business Justification" used; this was explained by officials. SARC members asked officials to consider whether any amendments were required in light of DAO (DFP) 06/14 on Infrastructure Action Plan Implementation, which had issued on 2 December 2014.
ACTION: RICHARD STEWART

4.2 Paragraph 14.2

SARC members noted that the Assembly Secretariat's Whistleblowing policy already makes provision for concerns raised by contractors. Members also noted the Secretariat's controls should the use of confidentiality clauses ever be contemplated. Louise Mason circulated "Whistleblowing in the Public Sector: A Good Practice Guide", which had been published on 25 November 2014.

5. INTERNAL AUDIT ACTIVITY / ASSURANCE

5.1 Brian Moreland advised that, since 1 April 2014, five Internal Audit reports have been issued in final form:

  • Review of Procurement – Satisfactory
  • Review of Usher Services – Satisfactory
  • Review of Members' Expenses – Substantial
    (Fieldwork included visits to the constituency offices of the 27 members in the sample. Internal Audit conducted these visits to verify that property rented and paid through OCE was being used for constituency office purposes and to verify the existence of any tangible items, capital and non-capital, purchased or rented by Members and paid through OCE. A review of the expenses information held on the website was also completed.)
  • Review of Financial Planning - Satisfactory
  • Review of the Justice Committee - Satisfactory

5.2 In addition, the draft report in respect of Information Assurance was issued on 22 September 2014, with a satisfactory level of assurance. The final report is due to be issued shortly.

5.3 Follow-up audits have been completed and reports issued in respect of the
Review of Risk Management (raised to substantial); the Review of the
Director General's Office (remains substantial); the Review of the Education Service (remains satisfactory); the Review of Administration of Secretariat Pensions (raised to substantial); and the Review of the Public Accounts Committee (remains substantial).

5.4 The final Justice Committee report issued on 25 November 2014, with a total of nine recommendations, all at risk rating 3. Recommendations were made in respect of departmental correspondence, deadlines for submissions and exception reporting for monthly expenditure. Internal Audit arrived at a satisfactory level of assurance.

5.5 Brian Moreland advised that, as discussed at the October SARC meeting, the Internal Audit programme had been interrupted in order to facilitate investigation work. As these exercises are largely complete it has been possible to make progress on the revised programme. Work is currently under way in the following assignments:
• Hansard;
• NI Assembly & Business Trust;
• Accounts Preparation;
• Accounts Payable;
• Ethics; and
• Post Contract Benefit Realisation.

5.6 A revised version of the audit plan showing original and amended start dates has been issued to SARC members, and progress is well under way in respect of the above assignments. Further changes may be necessary to the timings of individual assignments, but SARC will be informed as the remainder of the programmed work progresses.

5.7 SARC members noted that the NI Assembly Legislative Strengthening Trust had recently decided to use the services of an external auditor rather than the Secretariat's Internal Audit unit. A Memorandum of Understanding between the Trust and the Assembly Commission is in development and will be shared with SARC members once it is signed off.

ACTION: GARETH McGRATH / TREVOR REANEY

5.8 In relation to the NI Assembly and Business Trust, it was noted that, as a company limited by guarantee, the normal process was for the accounts to be audited, rather than undertaking an internal audit exercise. SARC members were assured that any audit findings of concern to the Trust would be raised with the Accounting Officer and SARC Chair, and that any findings in respect of the Assembly Commission's input would be raised with the Accounting Officer and Head of Internal Audit.

5.9 The overall level of assurance for the period 1 April 2014 to 30 November 2014 remains satisfactory. This assessment is based on the levels of assurance arising from the individual Internal Audit assignments, the action taken by management to implement recommendations and the results of follow-up audits.

5.10 SARC members were pleased to note that 100% of the audits completed to date for the 2014/15 year have resulted in either substantial or satisfactory assurance. In addition, 100% of the recommendations made at risk rating 1 and 3 were accepted, as were 80% of those at risk rating 2.

5.11 The Inter-Parliamentary Head of Internal Audit Group is due to meet in January 2015 and, as previously discussed, a Treasury official has been invited to attend. It is intended to obtain clarification on the future support that can be expected by those sitting outside the new agency arrangements that have been established for central government departments in GB.

5.12 Brian Moreland reported that, as SARC members are aware, Internal Audit has been involved in two investigations at the direction of the Accounting Officer. Work in respect of both is largely complete and reports have been issued for management consideration.

5.13 As a result of the work undertaken in both investigations there has been liaison with the PSNI. Advice was taken to ensure that Internal Audit activity did not impact adversely on any current or future police investigation into these matters. It is likely that further co-operation will be required with both PSNI teams as their investigations are ongoing and this will include the completion of statements by Secretariat staff primarily from Internal Audit and the Finance Office.

5.14 Brian Moreland informed SARC that no whistleblowing cases have been
reported to Internal Audit during the year.

5.15 As previously reported, Eddie Kelly had been involved in the External Quality Assurance review of the House of Lords Internal Audit unit. This exercise is now complete and a report containing recommendations for improvement issued. The Clerk of the Parliaments has written to express his thanks to Eddie for his participation in the review. SARC members congratulated Eddie on this.

5.16 All members of the Internal Audit unit have identified relevant generic and specialist training for the year ahead.

6. "IN PROGRESS" AUDIT RECOMMENDATIONS SCHEDULE

6.1 SARC members noted the continuing high level of implementation of accepted Internal Audit recommendations, with 12 recommendations currently "in progress".

6.2 It was noted that recommendations that all users of Parliament Buildings should be required to swipe in/out of the building using the new Visitor Management System, and that more effective physical/vehicular access controls to, and within, Parliament Buildings should be introduced, had been raised with the Assembly Commission but Commission members had decided not to take these recommendations forward at this time. However, further consideration would be given by the Commission should the PSNI's security threat assessment change. SARC members requested that the risk associated with not implementing the recommendations be listed as a root cause in the Facilities Directorate Risk Register.

ACTION: STEPHEN WELCH

7. RTTCWG 2013 AUDIT RECOMMENDATIONS SCHEDULE

7.1 SARC members noted that all but two of the 17 recommendations in the Report to those charged with Governance 2013 have been fully implemented.

8. RTTCWG 2014 AUDIT RECOMMENDATIONS SCHEDULE

8.1 SARC members noted that, of the seven recommendations in the Report to those charged with Governance 2014, four have already been fully implemented.

9. OUTSTANDING AUDIT RECOMMENDATIONS

9.1 SARC members noted the nil return.

10. BUSINESS IMPROVEMENT PLAN SCHEDULE

10.1 SARC members noted progress on the Business Improvement Plan implementation schedule.

11. SARC 2015/16 OBJECTIVES

11.1 SARC members agreed that no changes were necessary to the current SARC objectives.

12. CORPORATE RISK REGISTER

12.1 SARC members discussed the refreshed Corporate Risk Register agreed at SMG on 8 October 2014 and the subsequent tracked changes. It was noted that the Risk 4 risk assessment in relation to Budget allocations was expected to rise in the 2015-16 financial year. SARC members suggested that officials might consider, in the New Year, whether aspects relating to the Spotlight programmes on Members' expenses needed to be added to the Corporate Risk Register.

ACTION: TREVOR REANEY

13. STEWARDSHIP STATEMENTS (at 30 September 2014)

13.1 SARC members discussed and noted the contents of the Stewardship Statements as at 30 September 2014. It was noted that one Director had stated that controls were not appropriate but that he had acknowledged SMG actions to address his staffing concerns. It was also noted that a Business Case for a replacement franking machine has been approved.

14. MANAGEMENT ACCOUNTS

14.1 SARC members noted the levels of expenditure to end-October 2014 and that a slight underspend is anticipated at year end.

15. A.O.B.

15.1 Louise Mason apologised that the NI Audit Office's Audit Strategy was not available yet. It will be risk-based but generally less emphasis will be placed on Procurement. It was agreed that the strategy, once available, would be agreed by correspondence.

ACTION: LOUISE MASON

15.2 Trevor Reaney advised SARC that budget pressures in 2015-16 and beyond are likely to impact on the Secretariat's capacity for managing governance and risk. When the budget process outcome is known in the New Year, the impact on services will be assessed.

15.3 Trevor Reaney informed SARC that the sale of Ormiston House had been completed at the end of November, above market value. The sale would be reflected appropriately in the Annual Report and Accounts. SARC members noted the resultant savings in security and maintenance costs. Members were also assured that current governance processes, checks and balances are more robust than when the original purchase took place.

15.4 In relation to the recent Spotlight programmes on Members' expenses, Trevor Reaney outlined the nature of the two investigations. Recommendations and Management responses will be shared in the near future with SARC and Commission members. The Accounting Officer confirmed that the contents of both programmes are under consideration, with a view to formulating a comprehensive response. A full report will be available for the next SARC meeting.

ACTION: TREVOR REANEY

15.5 It was confirmed that any instances of fraud would continue to be reported to SARC members in the Head of Internal Audit's activity report.

15.6 Hugh Widdis offered to brief the Independent member in relation to the legal structures relating to the Independent Financial Review Panel at a convenient time.

ACTION: HUGH WIDDIS

16. DATE OF NEXT MEETING

16.1 It was agreed that the next meeting of SARC will be held on Friday 27 March 2015 at 3.30 pm.

Find MLAs

Find your MLAs

Locate MLAs

Search

News and Media Centre

Visit the News and Media Centre

Read press releases, watch live and archived video

Find out more

Follow the Assembly

Follow the Assembly on our social media channels

Keep up-to-date with the Assembly

Find out more

Useful Contacts

Contact us

Contacts for different parts of the Assembly

Contact Us