Agenda and minutes
Venue: Conference Room 4B - Tŷ Hywel. View directions
Contact: Clerk: Kathryn Hughes Deputy Clerk: Buddug Saer
No. | Item |
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Introductions, apologies and declaration of interests Minutes: 1.1
The Chair welcomed Rheon Tomas as an
observer to the meeting. He is Chair of
the audit committee at Estyn - HM Inspectorate for Education and Training in
Wales, and a member of the audit committees at National Museum Wales, Welsh
Language Commissioner and Qualifications Wales. 1.2
Rheon declared that he was a trainer for
CIFPA’s Certificate in Corporate Governance and Effective Audit Committee
course which had been attended by few Assembly officials. 1.3
No other interests were declared. |
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Minutes, actions and matters arising Minutes: ACARAC
(31) Paper 1 - Minutes of 16 November 2015 ACARAC
(31) Paper 2 – Summary of actions 2.1
The minutes of the meeting on 11
November 2015 were agreed and officials provided the following updates on the
outstanding actions. 2.2
In relation to the action to Research CIPFA Finance Review (5.2),
Nicola Callow confirmed that this was being handled by the internal audit
contractor, TIAA. She had also been in
touch with a contact from the Ministry of Justice who had been provided by the
Chair, to discuss lessons learnt on the finance system replacement
project. 2.3
No suggestions had been received in
relation to the action for Committee and
officials to inform Chair of areas of significant interest where an external presenter
may provide some added value (10.1). This
action would remain open to accommodate any future ideas and, in the meantime,
the Chair would share a ‘lessons learned’ review of the Electoral Registration
Transformation Programme (ERTP) with the committee. 2.4
Hugh Widdis suggested arranging a
presentation to gain an external perspective around constitutional change. The Chair and Claire welcomed this and asked
the clerking team to make the necessary arrangements. 2.5
The Chair agreed to receive an update on
the Business Efficiency Review (11.3)
at the June meeting. 2.6
In relation to the action around progress of the CODA finance system
replacement (12.3), Nicola advised that a revised version of the business
case had been presented to the Investment and Resourcing Board and a revised
analysis of the costs would be submitted shortly. Keith Baldwin was providing independent
support. 2.7
Dave Tosh informed the board that a
final draft of the HR and Payroll project
closure report (13.1) was being
prepared and would be circulated in due course. 2.8
In relation to the action for Management Board to re-assess Cyber Security
risk (14.3), Dave advised that good progress had been made. An internal
review of ISO 27001 (Certification in Information Security Management) had
provided strong assurance from an infrastructure perspective but had
highlighted gaps in policy and the general need to raise awareness across the
organisation. Committee members welcomed
the proposed use of an expert from North Wales Police to assist with further
assessment of the risks faced by the Commission. 2.9
All other actions would be covered as
agenda items at this, or future meetings. Actions -
Chair to circulate an ERTP
‘lessons learned’ report. -
Liaise with Head of
Strategic Transformation to discuss approaching Wales Governance Centre in
relation to attending an ACARAC meeting in June or November to discuss
constitutional issues from an external, independent perspective. -
Dave to advise on progress
with the Business Efficiency Review at June ACARAC meeting. -
Dave to circulate
HR/Payroll closure report when available.
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Internal Audit update Minutes: ACARAC
(31) Paper 3 - IA Update Report
2015-16 ACARAC (31) Papers 4 & 5 – IA
Recommendations Monitoring 3.1
Gareth
Watts updated the committee on recent audit work undertaken. Audits on Enhanced Bilingual Services and
Financial Management and Budgetary Control were complete and would be
circulated outside of the meeting, once management responses had been
received. Work on Data Analytics was
scheduled for the end of February and again, Gareth planned to circulate this
report out of committee. 3.2 Claire Clancy and Dave Tosh had recently approved a paper
outlining a revised Governance and Audit team structure. Although not circulated to the committee,
Gareth would discuss his proposal during the private session between committee
members and the Head of Internal Audit.
3.3
Gareth
then updated the committee on work that he and Kathryn Hughes had undertaken on
the Governance and Assurance Frameworks.
They had met with Directors and Heads of Service and were in the process
of analysing the completed Assurance Mapping tables, progress on which would be
presented to the committee in April. 3.4
With
specific reference to the recent public engagement audit, the committee urged
officials to share good practice and lessons learnt with future Assembly
Committees and Commissioners. 3.5
When
questioned on the number of recommendations made during his time at the
Commission, Gareth believed that the variation on numbers year on year
reflected the different topics investigated and the amount of issues identified
with the different subject areas. For
example, the high number of recommendations in 2014-15 could largely be
attributed to the audits of Recruitment and Security. 2012-13, due to the changes in Internal Audit
arrangements, had been one of transition and there had been more focus on
follow up of prior years’ recommendations.
3.6
The
Chair noted that Internal Audit’s processes for monitoring and reporting
recommendations were now more streamlined and proactive, and Claire indicated
she was happy with the current approach to Internal Audit work focussing on
areas of highest risk and concern which would sometimes result in high numbers
of recommendations. 3.7
Committee
members were
very encouraged that there were no concerns about any of the management
responses to, and progress on, audit recommendations.
Action -
Gareth to circulate audit
reports on Bilingual Services, Financial Management and Budgetary Control and
Data Analytics out of committee. |
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Latest Internal Audit Report Minutes: ACARAC
(31) Paper 6 – Key Financial Controls 4.1
The
audit of the Key Financial Controls was carried out by TIAA and a strong rating
given. Gareth commented that a full
complement of staff in the Finance team had significantly increased the
robustness and strength of the controls in place. Committee members commended the Finance team
on the robustness of controls. 4.2
The
WAO were pleased with the assessment and would hopefully be able to place some
reliance on this during the audit of the accounts. 4.3
Committee
members were assured that despite the limitations already identified in the
current finance system, the necessary controls were in place. 4.4
Committee
members then questioned the dissemination of information to those outside of
the finance team. Officials informed the
committee that Finance Co-ordinators exists within each service area and
monthly meetings were used to share information, as well as regular meetings
with budget holders to discuss forecasting and staffing matters. 4.5
Finally,
the committee suggested that officials should check the process in place for
recovery of overpayments. |
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Internal Audit Strategy for 2016-17 Minutes: ACARAC (31) Paper 7 –
Internal Audit Strategy 2016-17 5.1
Gareth
presented his strategy document for 2016-17 which would be subject to change on
appointment of the new Assembly Commission.
As always, he would continue to share instances of good practice and
amend his way of working if he felt it would benefit internal audit. 5.2
Pending
a change to include a link to the working protocol between Internal Audit and
External Audit, the committee approved the strategy. Action -
Gareth to include
reference in the Internal Audit Charter section of the strategy to the working
protocol between Internal Audit and External Audit. |
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Accounts overview Minutes: ACARAC (31)
Paper 8 - Annual accounts 2015-16 6.1
Nicola
presented this paper and informed the committee that an interim set of accounts
had been submitted to the WAO. Following
a workshop held by the WAO for Heads of Resources, she would have sight of
interim accounts from other public sector bodies. 6.2
Committee
members questioned the treatment of AMSS holiday pay and Nicola confirmed she
would update the committee once further progress had been made with the WAO. 6.3
The
use of the Pierhead building was also discussed. The building was well used and the event
space fully booked until March 2018.
When questioned on the necessary work to maintain the building,
officials confirmed that the forward work plan of maintenance for the next 10
years had been based on expert advice. 6.4
Overall,
the committee were content with the update to the 2014-15 Management Letter and
the timetable outlined in the paper.
Action -
Nicola to update the
Committee on treatment of AMSS holiday pay in the accounts. |
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WAO Update Minutes: ACARAC (31)
Paper 9 - External audit update 7.1
Matthew
Coe presented a paper outlining current progress of the 2015-16 audit,
(including changes to the audit team and the proposed audit fee), follow up on
the 2014-15 Management Letter and use of the Fraud Compliance Checklist. 7.2
Last
year, the Fraud Compliance Checklist was completed by the Chief Executive and
Management. Following a review of
internal processes, the WAO confirmed that the checklist would be used as an
audit tool to support their work and would not therefore be circulated to
Management or the committee each year. 7.3
There
remained a number of unresolved issues concerning the 2014-15 Management Letter
and the WAO agreed to keep the committee informed on the progress of the
resolutions. Action -
WAO to ensure the
Committee are informed of the resolution of all outstanding issues identified
in the 2014-15 Management Letter by end of February so that a full position can
be presented in April. |
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Results of Effectiveness Survey and action plan Minutes: ACARAC (31)
Paper 10 - ACARAC Effectiveness Survey – cover paper ACARAC (31)
Paper 11 - Effectiveness Survey 2015 - Report 8.1
The
Chair congratulated the clerking team on administering and analysing the
effectiveness survey internally, resulting in a saving of approximately
£3,000. 8.2
The
discussion on the results concentrated on the following areas identified for
further strengthening: ·
the
Committee’s interaction with the Assembly Commission and Commissioners; ·
consideration
of how ACARAC work integrates with the Commission's wider performance
management; ·
monitoring
the risk profile and progress of change programmes and projects; and ·
clarity
on the role of ACARAC in relation to the approval of the accounts and learning
lessons from the 2014-15 audit. 8.3
It
was agreed that the regular updates on the work of the Commission would
continue to be circulated to committee members.
Depending on the make-up of the new Commission (post the election in
May) an introductory meeting could be arranged with the new committee
member. Members also suggested a
structured induction programme be established for the new member and for
reference to be made to the role of ACARAC in induction for all new Commissioners. The Clerking team would liaise with the Members' Professional
Development
team. 8.4
The
Committee also welcomed the suggestion that they should review the Key
Performance Indicators (KPI) report. The
refreshed KPI report would include a summary of the status of change programmes
and projects. 8.5
Overall,
the Chair was extremely pleased with the process and the very positive results,
and congratulated his fellow ACARAC members.
An action plan would be circulated shortly. Action -
Clerking team to draft and
circulate an action plan. |
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Preparation of the Committee's Annual Report Minutes: ACARAC
(31) Paper 12 – Annual Report 2014-15 9.1
This
report had been well received by the Commission in 2015. The Chair would prepare a draft, to include
the recent effectiveness survey results, and circulate it for contributions and
approval in advance of the April meeting.
Due to the change in Commission membership, Claire was unsure when it
would be appropriate for the Chair to present the annual report to the Assembly
Commission. Action -
Draft and circulate Annual
Report in time to present draft report at April ACARAC meeting. |
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Review Terms of Reference Minutes: ACARAC (31)
Paper 13 – Terms of Reference June 2015 10.1 Following a recent
training course, it was suggested that the format of the Terms of Reference
(ToR) be revised and circulated out of committee for approval. Action -
Refresh content and format
of TOR, circulate to Committee members and publish. |
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Update the committee on recent training events and co-operation between auditors and other review bodies Minutes: 11.1 The Chair had recently
attended a session organised by the WAO for Chairs of Audit Committees in
Wales. The session focused on assurance
mapping, fraud and annual reporting. He
would circulate an NAO report on best practice for annual accounts, and would
give an Effectiveness Review presentation at the next WAO Audit Committee
Chairs meeting. 11.2 Assembly officials had
attended a course run by CIFPA on Effective Audit Committees. The course, attended by a variety of people
from Chairs to non-executive members provided further reassurance of the good
practice already in place at the Assembly.
The following points were reported back from the course: ·
Revising/updating
the current terms of reference to be more user friendly and jargon free. ·
Keeping
Committee members informed by continuing to circulate any documents for
information, e.g. KPI Report, Chief Executive update etc. ·
Different
approaches to self-assessment e.g. a 5-point rating scale. ·
With
a focus on the Governance Statement, at each meeting, a check on each item on
the agenda to assess any impact on the Governance Statement. ·
At
end of each meeting, members to be given the opportunity to add anything in
relation to specific items discussed. 11.3 Gareth informed the
committee of a recent meeting with the Head of Audit at the Welsh Government
where he shared the Assembly’s Assurance Framework and our approach to the
Governance Statement. During 2016-17,
Gareth has to complete an External Quality Assurance Review. The Welsh
Government had recently concluded theirs so he was able to acquire a copy for
information. 11.4 Gareth would also be
attending an Intra Parliamentary Forum in Scotland in February to share
examples of best practice and approaches to audit planning. He planned on discussing approaches to cyber
security audit work with his counterpart from Northern Ireland and meeting with
his Scottish counterpart to understand the auditing of Members’ expenses. Action -
The Chair to circulate a
NAO report on best practice for annual accounts. |
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Finance update Minutes: ACARAC (31)
Paper 14 – Finance Update 12.1 Nicola presented this
paper which set out the financial position for 2015-16. 12.2 The Committee welcomed the
inclusion of a letter sent by the Deputy Presiding Officer to the Chair of the
Public Accounts Committee and praised the Assembly for its prompt payment
performance. |
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Corporate Risks Report Minutes: ACARAC (31)
Paper 15 - Corporate Risks Report ACARAC (30)
Paper 16 – Annex A - Corporate Risks Summary ACARAC (30)
Paper 17 – Annex B - Corporate Risks plotted 13.1 Dave presented the risk
paper with no major changes to report.
At a meeting on 25 January the Management Board were presented with the
arrangements for the Fifth Assembly transition, where risks and issues were
being managed through specific work-streams.
13.2 Dave agreed to revise the
wording contained in the risk around reputation in relation to perceptions of
Commission staff during transition to the Fifth Assembly (ref CAMS20). 13.3 The Committee welcomed the
Commission’s mature way of reviewing the risk register and the insertion of a
table showing the direction of travel but questioned the static profile of the
risks. 13.4 Claire appreciated the
comments regarding the maturity of the organisation in reviewing service and
corporate risks, and added that maintaining a static profile took a great deal
of effort from across the organisation to ensure the controls were as effective
as they could be. Mitigating actions and
controls were monitored regularly which provided Claire, management and ACARAC
with the necessary level of assurance. Action -
Consider wording of risks
around reputation in relation to perceptions of Commission staff during
transition to the Fifth Assembly (ref CAMS20). |
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Critical examination of one identified risk Minutes: ACARAC (31)
Paper 18 – Corporate Capacity 14.1 Dave introduced the
examination of the risk on corporate capacity.
Management Board review the corporate capacity planning process on a six
monthly basis and the Business Efficiency Review would feed into this work. 14.2 The Committee questioned
the objectives of the Voluntary Exit Scheme and the plans for the money that
could be saved. 14.3 Dave confirmed that the
Fifth Assembly would pose unknown challenges for the future. New powers and potential budget constraints could
also be demanding from a management perspective, which is why a review of
current skills, efficiency and effectiveness is so important. 14.4 Claire had recently
attended a meeting with the Independent Parliamentary Standards Authority
(IPSA) in Westminster. It was evident
from discussions that the Assembly Commission was fortunate to have a strong
and positive working relationship with the Remuneration Board. The world class committee work of the current
Assembly term would need to take account of the way Members of the Fifth
Assembly wished to work. |
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Papers to note and any other business Minutes: ACARAC (31)
Paper 19 - Departures summary ACARAC (31)
Paper 20 - Forward Work Programme 15.1
The
Committee noted the four departures from normal procurement procedure. 15.2 Further to points raised
in the effectiveness survey, all future meetings would be extended by 30
minutes and a date for the July meeting would be confirmed. 15.3 The Chair concluded the
meeting by thanking everyone for their papers and contributions. He gave special thanks to David Melding for
his commitment and input to the work of the Committee over the past year. 15.4 He also welcomed Rheon’s
observations and encouraged others to be observers at audit committees. Actions -
Clerking team to add KPI report
to the FWP – at the first meeting after the publication of the report. -
Extend all future meetings
by 30 minutes. -
Agree date of July meeting
and send meeting invite. -
Gather feedback from Rheon
Tomos on combined learning from attendance at Audit Committees in other
organisations. Private
session A
private session with Committee members was attended by Gareth Watts. No minutes
were taken. Next meeting is scheduled
for 25 April 2016. |