Minutes of Proceedings

VIA MICROSOFT TEAMS

Present:

Jim Brooks (Chairperson)
Derek Martin

In Attendance:

Lesley Hogg, NIA
Rodney Allen, NIAO
Kathy Doey - NIAO
Tara Caul, NIA
Gareth McGrath, NIA
Richard Stewart, NIA
Paula McClintock, NIA
Eddie Kelly, NIA
Julie Devlin, NIA

Opening/Review

The meeting commenced at 10.00 am.

Jim Brooks advised that Kathy Doey, NIAO Audit Manager, had taken over responsibility from Christine Burns for the Northern Ireland Assembly Commission ("Assembly Commission") audits. Jim recorded SARC's thanks to Christine for her professionalism and helpfulness over the past few years and welcomed Kathy to her new role.

1. Apologies

Apologies were received from Keith Buchanan MLA.

Lesley Hogg advised that the Assembly Commission representative was appointed to SARC for one year, that Keith had come to the end of his term and that John O'Dowd MLA had been appointed as his replacement.

Jim recorded SARC's thanks to Keith and welcomed the appointment of John O'Dowd.

2. Declaration of Interests

No interests were declared.

3. Minutes of Previous Meeting

Minutes of the previous meeting, held on 14 October 2020, were approved without amendment.

4. Matters Arising

There were no matters arising.

5. Internal Audit Activity Update

Eddie Kelly advised SARC that since 1 April 2020, Internal Audit had issued twelve final reports and five follow-up reports, with eight reports being issued since SARC last met in October 2020. He thanked the Chairperson for providing feedback in respect of some of the individual reports.

Eddie gave a summary overview of the reports that had issued since the October meeting of SARC and the recommendations made:

• The Report on the Review of Equality and Good Relations Unit concluded that robust arrangements were in place and a substantial level of assurance was provided. One recommendation was made which had been implemented;
• The Report on the Review of Corporate Procurement Cards made three recommendations and a satisfactory level of assurance was awarded;
• The Review of Infrastructure (Cyber Security) Report recorded substantial assurance and two recommendations were made;
• The Report on the Review of the Office of the Speaker recorded substantial assurance and did not include any recommendations;
• The Report on the Office of the Official Report provided substantial assurance and contained two recommendations;
• The Report on the Review of the Administration of Mobile Phones contained three recommendations and the overall level of assurance was satisfactory;
• The Report on the Review of the Administration of Secretariat Pensions included five recommendations and the overall level of assurance was satisfactory; and
• The Follow-up Report on the Review of the Committee for the Communities noted that two of the three recommendations contained in the original report, had been implemented and one was in progress and that the level of assurance remained substantial.

Eddie provided an overview of the Internal Audit reviews in progress and the plan for 2020-21. Eddie advised that, with senior management's approval, the audits of Business Continuity, Performance Management and the Examiner of Statutory Rules would be carried forward to 2021/22 and that some work would be brought forward to March 2021.

Eddie further advised that it was anticipated that the External Quality Assessment Review draft report would be with the Clerk/Chief Executive by the end of February 2021.

Eddie asked SARC to note that no cases of whistleblowing or fraud had been reported to Internal Audit since the last meeting.

Jim said that on receiving the reports he had raised queries with Eddie in relation to the audits of Mobile Phones and Secretariat Pensions and that these had been comprehensively answered.

SARC noted the Internal Audit Activity Report.

6. Audit Recommendations Schedule

Julie Devlin summarised the status of the outstanding audit recommendations.

Jim commented that there were a large number of new recommendations due to the number of new Audit Reports but he was content that management had already started to progress these.

Derek Martin asked if management was content that there were enough resources to action the audit recommendations, given the increased volume.

Lesley advised that although there were a high number of recommendations, the majority of these arose from recently issued reports and that she was content.

Jim asked Eddie if the working from home arrangements had affected the audit process.

Eddie stated that although remote working, on the part of both auditors and auditees, had meant that procedures had to be adapted, the required changes had been relatively straightforward. He said that the overall impact had been negligible and the implementation of recommendations had, on the whole, not been adversely affected.

Jim commented that the recommendations schedule continued to provide SARC with assurance that recommendations were taken seriously and implemented promptly.

SARC noted the update on the audit recommendations schedule.

7. SARC Objectives 2020

Julie presented a draft of the proposed SARC Objectives for 2021-22 for consideration.
Jim commented that he had considered issues such as EU Exit, the hiatus in Assembly activity and the effects of the COVID-19 restrictions and asked for comment on whether the SARC Objectives should include these matters.

Lesley replied that her view was that these challenges had been met and continued to be met. She said that the Corporate Risk Register which would be presented to SARC later in the meeting, would show that the risk associated with the COVID-19 pandemic had been reduced due to the mitigation measures put in place, and that the risk associated with the UK leaving the EU had also been reduced. She said therefore that these matters were being sufficiently managed.

Jim said he was therefore content not to include these in the SARC Objectives 2021-22.

Jim commented that he and Derek were coming to the end of their term and asked for thoughts in relation to including an objective regarding a smooth handover to the new Committee. Jim asked if there would be merit in having a staggered recruitment process.

Lesley said that this could be included, but felt that the induction process was effective, as it had been with the current Committee.

Derek agreed that the process had been very good.

Jim and Derek agreed that it would not be necessary to include the induction process in the SARC Objectives 2021-22.

SARC agreed the SARC Objectives 2021-22.

8. Final Report to Those Charged with Governance 2019-20

Rodney Allen presented the Final Report to Those Charged With Governance 2019-20. He stated that there had been no changes made to the report since it was presented in draft to SARC in October 2021 and that a lot of work had been completed during a difficult time.

Jim thanked Rodney and his team and the Assembly Commission team for the way in which the audit had been carried out during a difficult period.

SARC noted the final Report to Those Charge With Governance 2019-20.

9. NIAO Audit Strategy for the year 2020-21

Rodney presented the NIAO Audit Strategy for 2020-21 and advised that the Strategy was intended to fulfil two functions, namely to inform the Accounting Officer and SARC of the NIAO's audit approach and to provide a timetable for the production of the financial statements and the conduct of the audit.

Rodney advised that the NIAO had not identified any significant risks that might impact the audit and advised of the other risk factors included in the Audit Strategy.

Rodney also advised of the timetable for the Audit, the audit team conducting the audit and the notional audit fee. He asked SARC to comment on the Strategy and asked if it wished to make the NIAO aware of any issues.

Derek asked if the timetable had been discussed with the Assembly Commission team and if it had been agreed.

Rodney advised that timetable had been discussed and agreed with the Assembly Commission team.

Jim commented that the materiality threshold was high but that he recognised that the nature of expenditure was also considered as part of the audit process, reflecting the unique risks of the legislature. He acknowledged the presumed risk in relation to Members Expenses, but commented that SARCs' concerns on this matter had reduced due to the audits carried out each year. He added that through internal and external audits, the Assembly Commission had strong control and that he had no knowledge of any fraud or compliance issues.

Rodney agreed that the Assembly Commission audit had always been reasonably straight forward and a very high bar had been set.

SARC noted the NIAO Audit Strategy for the year 2020-21.

10. Fraud Prevention and Anti-Bribery Policy and Response Plan

Paula McClintock presented the Fraud Prevention and Anti-Bribery Policy and Response Plan to SARC. She said that a review of the policy had been conducted and no changes were considered necessary. She also advised that the policy had been issued to Partner Bodies.

SARC noted the Fraud Prevention and Anti-Bribery Policy and Response Plan.

11. Corporate Governance Framework (CGF)

Julie presented the CGF to SARC and advised that it has been significantly revised to more closely align it with the Governance Statement included in the Assembly Commission Annual Report and Accounts. She advised that SMG had held a workshop to discuss and provide comments on how the CGF should be revised and that SMG had subsequently approved the revised CGF.

Tara Caul advised SARC that the revised CGF made it clear that Corporate Governance was the responsibility of all staff in the organisation.

Jim commented that it was an outstanding piece of work which was very contextual. Derek concurred.

SARC noted the Corporate Governance Framework.

12. Corporate Risk Register (CRR)

Julie presented the CRR for December 2020 and advised SARC that a quarterly review of the CRR had been carried out by SMG. Julie then outlined the main changes to the CRR.

Jim queried whether the risk associated with CR1 "Insufficient budget to enable delivery of the Assembly Commission's Corporate Strategy - 2018-23" should be reduced or removed as the budget process was well managed.

Lesley advised that while historically the Assembly Commission had received adequate funding to carry out its strategic aims, it was unclear what pressures the COVID-19 pandemic would place on the block grant and that it was prudent to retain the risk until the budget for 2021-22 had been approved by the Assembly. Jim was content.

In relation to CR2 "Major Incident / Breakdown (including security incident)", Jim asked whether alternative accommodation had been identified should Parliament Buildings have to be vacated and if it was ready for the Assembly.

Lesley advised that it would not be economical to retain a dedicated building, but that if one was required, the Department of Finance would seek to provide one. Lesley also added that the majority of staff now had the ability to work remotely.

Jim asked about the risk associated with staff vacancies highlighted under CR4 "Shortage of staff, skills and knowledge and/or staff engagement".

Lesley advised that vacancy numbers had been reducing steadily and that the Assembly was working through an intensive recruitment programme.

Jim thanked Lesley and said that the Corporate Risk Register was a very good example of how risks should be managed.

SARC noted the Corporate Risk Register.

13. Risk Management Self-Assessment Checklist Action Plan

Julie provided a status update regarding the actions in the Risk Management Self-Assessment Checklist Action Plan.

SARC noted the contents of the Risk Management Self-Assessment Checklist Action plan.

14. Fraud and Bribery Self-Assessment Checklists, Bribery Risk Assessment Action Plan

Julie presented the Fraud and Bribery Self-Assessment Checklist Action Plan and asked SARC to note that all actions included in the action plan had now been completed.

SARC noted the Fraud and Bribery Self-Assessment Checklist Action Plan.

15. NAO Cyber Security and Information Risk Checklist Action Plan

Julie provided a status update regarding the actions in the NAO Cyber Security and Information Risk Checklist Action Plan.

SARC noted the NAO Cyber Security and Information Risk Checklist Action Plan.

16. Key Guidance from Department of Finance

Julie advised SARC that since the last meeting two Dear Accounting Officer letters had been received, neither of which were applicable to the Assembly Commission.

SARC noted the key guidance that had been issued by the Department of Finance since the October 2020 SARC meeting.

17. AOB

Derek asked if issues stemming from the Roof Project were being managed appropriately.

Lesley assured him that appropriate measures were being taken to resolve the matter and that progress was being carefully monitored.

18. Date of Next Meetings

It was agreed that the next meeting would be held in May 2021, date to be confirmed.

The meeting ended at 11.20am