Minutes of Proceedings
Session: Session currently unavailable
Date: 28 June 2024
Assembly Commission Audit and Risk Committee (ACARC)
Friday 28 June 2024 at 11.30am
Room 106
Present:
Dr Maurice Keady, Independent Member and Acting Chairperson
Robbie Butler, MLA
In Attendance:
Lesley Hogg, Clerk/Chief Executive
Gareth McGrath, Director of Parliamentary Services
Paula McClintock, Head of Finance
Donna-Marie Clark, Data Protection and Governance Officer
Suzanne Jones, Northern Ireland Audit Office (NIAO)
Laura Murphy, NIAO
Pauline Poots, EY
Maurice Keady commenced the meeting at 11.35am and formally welcomed all those in attendance.
1. Apologies
Apologies were received from Steven Baxter, Director of Corporate Services and Helen Smyth, EY.
2. Declaration of Interests
No interests were declared.
3. Minutes of Previous Meeting
The minutes of the previous meeting held on 16 May 2024, were agreed.
4. Matters Arising
No matters arose.
5. Internal Audit Annual Assurance
Pauline Poots advised that the Internal Audit Annual Assurance Report was in final draft and had been produced in accordance with the Public Sector Internal Audit Standards, to provide a formal annual opinion on the adequacy, reliability and effectiveness of the Assembly Commission’s system of risk management, control and governance for the year ended 31 March 2024.
Pauline noted that the Report summarised the audit areas reviewed during the year, along with the relevant audit opinions and number of recommendations made. She highlighted that while the Review of Corporate Governance Arrangements audit was in draft form, awaiting management comments, EY was able to provide its Annual Assurance opinion, as the final status of the Review would not impact the overall opinion for the year.
Pauline confirmed that the level of implementation of audit recommendations, as gauged by the follow up reports, was very positive, with five out of seven recommendations fully implemented and work ongoing to implement the remaining two recommendations.
Pauline confirmed that she was required to report any significant control issues, particularly where Priority 1 recommendations had been made.
Pauline stated that there had been a Priority 1 recommendation in the Review of Contract Management, in relation to the review and standardisation of guidance and the implementation of training. She acknowledged that management had raised concerns regarding the findings of the testing in this audit, but confirmed that the guidance had already been updated and would be reviewed by EY in the follow-up later in the year.
Pauline also outlined the need to secure a full complement of Non-Executive Directors on ACARC, noting that recruitment of a chairperson was expected to be undertaken shortly.
Pauline concluded that EY considered that the Assembly Commission has a framework of controls in place that provides Satisfactory Assurance over the effective and efficient achievement of the organisation’s objectives and the management of key risks.
ACARC considered and noted the final draft Internal Audit Annual Assurance Report.
6. Audit of the Assembly Commission Letter of Understanding
Lesley Hogg outlined that the Letter of Understanding between the Assembly Commission and the NIAO is a routine letter that sets out the basis on which the audit is conducted and the respective responsibilities of the Accounting Officer and the NIAO. She advised that it is updated on an ad-hoc basis and that it had been updated in May 2024.
Maurice confirmed that the letter sets out the respective responsibilities and the scope of the audit.
ACARC noted the updated Letter of Understanding.
7. Draft Annual Report and Accounts for the Year Ended 31 March 2024
Paula McClintock advised that the Assembly Commission’s Annual Report and Resource Accounts 2023-24 had been submitted to the NIAO on 23 May 2024 and that she had produced a memo summarising the most significant changes made to the Annual Report and Resource Accounts following the NIAO’s audit. She noted that there had also been a number of minor editorial changes, which were not specifically covered in the memo.
Paula informed ACARC that the NIAO had raised two further potential matters for disclosure that morning, which she outlined, and which she said would be considered. She advised that they did not affect the figures in the Accounts, but might result in additional disclosures being included prior to formal sign off.
Paula then outlined that the key changes in the Accounts since draft considered by ACARC at its meeting on 16 May 2024.
In particular, Paula advised that while the Comptroller and Auditor General (C&AG) intended to certify the Accounts with an unqualified ‘true and fair’ opinion, there would be a technical qualified ‘regularity’ opinion because of the updated estimate of the roof repair costs.
Paula explained that the draft Accounts had included a provision in relation to the estimated roof repair costs, which was based on the initial expert Quantum report that had been prepared for litigation purposes, but that the Assembly Commission had recently received an updated expert Quantum report which had increased the estimated roof repair costs and that it was NIAO’s view that the Accounts should be updated to reflect the updated Quantum report costs.
Paula stated that as the updated Quantum costs had been received after the end of the financial year and the Spring Supplementary Estimate (SSE) return, the Assembly Commission had no opportunity to adjust the SSE position and that the increase in the provision for the costs would therefore require an Excess Vote, even though the actual cost of the roof repairs was not yet known.
Paula added that an additional report had been provided by the C&AG, which had been included in the tabled pack and that it would be added to the final Accounts.
Maurice noted that a qualified opinion was a serious development and requested that the Assembly Commission be informed of the Excess Vote position.
Lesley confirmed that the Assembly Commission would receive a copy of the Annual Report and Accounts and that she would advise Assembly Commission Members of the need for an Excess Vote.
Suzanne Jones noted that the matter was further articulated in the Report by the C&AG, included in the tabled pack.
ACARC requested that the Assembly Commission be informed of the Excess Vote position.
ACARC noted the draft Annual Report and Accounts for the Year Ended 31 March 2024 and recommended that they be signed by the Accounting Officer.
8. NIAO Draft Report to Those Charged with Governance
Suzanne Jones presented the Draft Report to Those Charged with Governance (RTTCWG) and outlined each of the findings in detail. She thanked Assembly Commission staff for their assistance in conducting the audit.
Suzanne reiterated that the C&AG intended to certify the 2023-24 Accounts with an unqualified ‘true and fair’ opinion, but that there would be a qualified ‘regularity’ opinion because of the need for a technical Excess Vote and that the C&AG was content with that this was the appropriate accounting treatment.
Suzanne discussed the findings in the RTTCWG, and asked that the Accounting Officer sign the Accounts and Letter of Representation by 3 July 2024, to facilitate laying the Annual Report and Accounts for the Year Ended 31 March 2024 by 5 July 2024.
Lesley stated that management responses would be provided to the NIAO for incorporation in a final RTTCWG, for consideration at the October ACARC meeting.
Suzanne confirmed that the C&AG was pleased that seven reports from Internal Audit had now been completed and also that a formal process to communicate actual or suspected fraud cases to the C&AG had been implemented.
Suzanne noted that concerns had been raised with the previous ACARC Chairperson and that a confidential report on those matters had been considered by the Assembly Commission and asked ACARC Members to confirm that there were no matters in the report which would impact the C&AG’s opinion.
Lesley explained that the confidential report had not been shared with the ACARC Independent Member but that assurance had already been provided by the Speaker, on behalf of the Assembly Commission, to the NIAO in that regard.
Suzanne then referred to the draft Review of Corporate Governance Arrangements and asked that all recommendations be considered as a matter of urgency and a permanent chair appointed to ACARC.
Maurice noted that he was presiding over ACARC as provided for, and in accordance with, its Terms of Reference.
ACARC noted the Draft Report to Those Charged with Governance.
9. Corporate Risk Register (CRR)
ACARC considered and noted the CRR.
10. Fraud and Bribery Self-Assessment and Action Plan Monitoring
Maurice noted that the Biennial Review of Fraud and Bribery would be presented at the next meeting in October.
ACARC noted the updated position on the Fraud and Bribery Self-Assessment Action Plan Monitoring.
11. Cyber Security Action Plan Monitoring
Maurice noted that the Biennial Review of Cyber Security would be presented at the next meeting in October.
ACARC noted the updated position on Cyber Security.
12. Key Guidance from the Department of Finance
Maurice noted that since the last ACARC meeting there had been two Finance Director (FD) letters issued by DoF, the impact of which had been outlined in the covering memo.
ACARC noted the update provided.
13. Fraud and Bribery
Lesley noted that while instances of fraud and bribery and whistleblowing were extremely infrequent and had been notified to ACARC, standing agenda items had been added for clarification, in line with best practice recommendations for good governance.
Paula confirmed that there had been no reports of fraud or bribery.
ACARC noted the update provided.
13. Whistleblowing
In Steven’s absence, Lesley confirmed that there had been no reports of Whistleblowing.
ACARC noted the update provided.
14. Financial Assistance for Political Parties Scheme 2016 Audit Report 2023-24
Paula confirmed that the FAPP audit had been completed with no outstanding issues, and that all certificates had been received. She then outlined two recommendations that had been made.
ACARC noted the FAPP Scheme 2016 Audit Report 2023-24.
15. AOB
Maurice noted that it had been his intention to hold bilateral meetings with EY and the NIAO alongside the ACARC meeting, but that these could not be accommodated with the rescheduling of the meeting. It was therefore agreed that these would be scheduled in conjunction with the next ACARC meeting.
ACARC to schedule bilateral meetings with EY and the NIAO in conjunction with the October ACARC meeting.
16. Date of Next Meeting
Maurice asked that Donna-Marie Clark circulate and agree the date of the next meeting in October.
The meeting ended at 12.22 pm.