Agenda and minutes
Venue: Remote - Digital. View directions
Contact: Clerk: Kathryn Hughes Deputy Clerk: Buddug Saer
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Introductions, apologies and declaration of interests Minutes: 1.1 The Chair welcomed everyone to the meeting and formally
welcomed Ed Williams to his first meeting. The Chair noted one apology from
Ann-Marie Harkin, Audit Wales. 1.2 No interests were declared. |
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Minutes of 22 November, actions and matters arising Minutes: ARAC (22-01) Paper 1 – Draft Minutes of 22 November 2021 ARAC (22-01) Paper 2 – Summary of actions 2.1 The minutes of the 22 November meeting were formally
agreed with one amendment to paragraph 18.1 to note. 2.2 The Committee requested an update on the digital archive
project. Manon Antoniazzi had met with
an archivist at the National Library of Wales and plans were underway to
re-locate the tapes to archive conditions with the intention of future
digitalisation. This only applied to broadcast tapes as paper records were
already routinely archived. 2.3 The Committee thanked officials for the papers that had been circulated since the November meeting and had particularly welcomed sight of the draft new cyber-security assurance report and details of the proposed Estates Strategy. Members welcomed the offer of a briefing session on the Estates Strategy and asked for regular updates when appropriate. Action ·
Ed
Williams to provide briefing to ARAC members on progress with the Estates
Strategy. |
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COVID-19 - Corporate update - oral item Minutes: Oral update 3.1 Ed confirmed that the Covid Resilience and Monitoring
Group (CRAM) continued to meet weekly to monitor the latest Welsh Government
guidance. Following the recent
announcement of moving to alert level 0, all risk assessments and the corporate
risk had been updated. In light of
anticipated further lifting of restrictions, as outlined in the Welsh Government’s
road map, the updated plenary risk assessment allowed for up to 60 Members of
the Senedd in the Siambr after the February half-term recess. All Members would be advised to use face
coverings and undertake an LFT before attending. Commission staff would also continue to be
strongly advised to do both. 3.2 Capacity levels of both plenary and Senedd committee
meetings would be monitored, and the corporate risk assessment would be
revisited in line with further relaxation of Covid rules. 3.3 Lowri Williams provided the Committee with additional information
on how HR were planning to support staff returning to the estate and help
facilitate a more agile working environment.
The latest Wellbeing Pulse staff survey was due to be issued to all
staff later that week which would provide a useful source of information on
which to base plans. 3.4 In response to questions from Committee members, Lowri
advised that staff were still required to use a booking system before attending
the estate and this showed the current attendance at 10-15% capacity. The first floor of Ty Hywel remained a pilot
floor with a mixture of work space and break out areas, but with so many people
working from home, testing had been minimal.
The booking system had worked well, and, as well as facilitating the
cleaning of spaces occupied, it was also helping to develop the culture of more
agile working. 3.5 Ed mentioned that further considerations around
occupancy would also feed into the estates strategy and confirmed this would
include use of the Colwyn Bay office, which was a smaller office with fewer
options for the use of space. Lowri
added that all staff had undertaken personal risk assessments and had been
asked to advise Heads of Service of their preferred working patterns to inform
plans for return to the estate. 3.6 The Chair noted that the Commission had responded exceptionally well to the challenges and acknowledged ongoing uncertainties. When questioned about the future of CRAM, Ed envisaged the structure remaining on an operational level with the Executive Board continuing to be responsible for taking the necessary strategic decisions. |
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G&A update report (inc. progress on Internal Audit activity) Minutes: ARAC (22-01) Paper 3 – G&A update report 4.1 Gareth Watts provided an update on overall governance
and assurance activity. Service level assurance statements had been finalised
and the Directors had submitted their statements to the Chief Executive and
Clerk for review. The usual challenge
session, to be attended by the Chair and one other Committee member to provide
independent scrutiny of the process and Director statements, was scheduled for
10 March. 4.2 Gareth had recently shared details of the Commission’s
approach to Assurance Mapping and gathering service level assurances with his
counterparts in both the Scottish Parliament and House of Lords. He had been
invited to present to their audit committees in the future. 4.3 The team was also leading on a review of the
Commission’s approach to business continuity, with Business Impact Assessments
completed for services across the Commission.
Gareth was also undertaking a review of the Commission’s approach to
Service Planning and presented his findings, proposals and next steps later in
the meeting. 4.4 Gareth updated the Committee on scoping and progress
with current audits, including cyber-security and library services. He had also held an initial scoping meeting
with colleagues responsible for the Official Languages Scheme and, as
previously agreed, would share the scope of this audit with the Committee. 4.5 The Committee questioned if any data was collected on the use of the Welsh language by Members of the Senedd in plenary and Senedd committee meetings. Gareth confirmed that the Translation and Reporting Service logged this data, and that this, along with the impact of the pandemic on delivery of Welsh learning packages, would be captured in the review. |
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Internal Audit Plan 2022-23 Minutes: ARAC (22-01) Paper 4 – IA plan 2022-23 5.1 Gareth presented his draft audit plan for 2022-23 and
highlighted key items to the Committee.
The Chair welcomed the audit plan and reminded the Committee that he had
regular meetings with Gareth to discuss progress. He also accepted Gareth’s assurances on the
resources in place to deliver the plan, including use of the co-sourced
partner. He also welcomed a return to a
more regular programme of audit work, following a turbulent couple of
years. 5.2 In response to questions from the Committee, Gareth explained how the Commission used TIAA, as the co-sourced internal audit partners, to carry out some of the more generic audits, and also some of a more technical nature where they had specific expertise, for example ICT. He also described the value TIAA added in terms of their wider public sector work. He offered to provide further details to Committee members on the audits to be carried out by TIAA. He also advised that the contract with TIAA was due end on 31 July 2022 and the tendering process would commence in late spring to early summer. Action ·
Gareth
Watts to share details of internal audits to be carried out by TIAA. |
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Internal Audit Report Minutes: ARAC (22-01) Paper 5 - Members' Expenses 2021 6.1 Gareth introduced the Members’ Expenses audit
report. The report outlined the work
undertaken on Members’ expenses for the financial year 2020-21 and the
additional work undertaken on the payments related to the Senedd Election of
May 2021. No recommendations were raised
and an overall assurance rating of substantial was given. 6.2 Gareth confirmed that the Members’ Business Support
(MBS) team had a good level of knowledge and understanding of the processes and
systems in place, and the rules relating to the Independent Remuneration
Board’s Determination. The audit
demonstrated a robust control framework and found that there was effective
segregation of duties across the team to ensure all claims were checked by a
separate processor and authoriser. 6.3 Prior to the audit process, MBS had discovered an issue
relating to HMRC rules around
qualification for tax free amounts for Resettlement Grant payments. In two cases, the calculation of the payment
had been completed correctly, but the appropriate tax elements had not gone
through the system. MBS were aware of
how this issue had arisen and were taking corrective action and putting
safeguards in place to avert a repeat occurrence at future elections. 6.4 Gareth also commented on his involvement with the
project to replace the payroll system and the intention of incorporating an
expenses module to the system requirements. 6.5 In response to a question from Aled around the
relationship with the Independent Remuneration Board, Gareth advised of his
regular meetings with the Board’s clerking team to discuss communication and
engagement. 6.6 The Committee also noted that Gareth was finalising the
Asset Management report and had engaged with outgoing Members as well as
internal services areas such as ICT, MBS and Estates and Facilities. 6.7 The Chair thanked Gareth for the report and was encouraged by the findings in what was an important part of the assurance process. He also gave credit to all involved in the audit, and for the discretion shown, particularly given some of the sensitivities. |
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External Audit - update from Audit Wales including the audit of the Commission's 2021-22 financial statements Minutes: ARAC (22-01) Paper 6 - Audit Wales Update 7.1 Gareth Lucey presented details of the Audit Wales plan
for the 2021-22 audit process. Due to
some outstanding legacy work from 2020-21 audits and various staff changes at
Audit Wales, they were unable to confirm the team for the Commission’s audit
but hoped to do so the following week.
The aim was to hold two separate week-long interim ‘visits’ in February
and March to conduct the planning and early testing work. The final audit would then take place as it
had in prior years, beginning at, or around 9 May, with the aim of presenting
their closing ISA 260 report in June. 7.2 One focus of their planning for this year’s audit would
be around the Commission’s application of IAS 16 to ensure capital expenditure
was accurately reflected in the 2021-22 accounts. He thanked the Commission’s Finance team for
their extensive work in this area and for providing information early in the
process. 7.3 Gareth added that Audit Wales were unable to confirm the
audit fee until their Fee Scheme was approved by the Auditor General. However, he agreed to notify the Commission
and ARAC members of the fee as soon as it was confirmed. For information at
this stage, the consultation on fees had proposed an average fee scale increase
of 3.7% across all audited bodies for the coming year. 7.4 The Chair welcomed the update on the audit process and thanked Gareth for sight of the other reports they had produced across the wider public sector. He asked him and his audit team to be mindful that the 2021-22 data would be held on the old Finance system, to avoid any delays in the process. |
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Corporate Planning - presentation at meeting Minutes: 8.1 The Chair had previously agreed to replace the regular
critical examination of one of the Commission’s corporate risks with a
presentation from Gareth Watts on the development of a corporate planning
approach for the Commission. 8.2 Gareth outlined the objectives of his proposals which
had been endorsed by the Commission’s Leadership Team and Executive Board some
weeks previously. He shared the
importance of planning and prioritisation and the advantages of documenting
responsibilities. 8.3 He described the current service planning and reporting
outputs already in place in terms of the Commission’s strategy, goals and
priorities. The proposal was to develop
a Corporate Delivery Plan as a management tool to guide service level plans and
to provide clarity on how the Commission’s priorities would be delivered. 8.4 In pulling together the proposals, Gareth had taken
account of the approaches adopted by other parliaments and he described how the
plan would take into account any future changes, including external influences
such as reports by expert panels. 8.5 The next stage would be to revisit service plans in the
context of the Corporate Delivery Plan.
This would be done through discussion and engagement across services to
ensure interdependencies were taken into consideration and would include
regular reviews and reporting on progress.
Guidance on producing service plans was being drafted and would follow a
five step process. 8.6 Gareth concluded his presentation by confirming the
establishment of a sub-group of the Leadership Team to lead and steer this work
from 2022-23 onwards. A first draft
would be presented to Leadership Team before being presented to Executive Board
for sign off. Senior management had
agreed on the format, which was similar to that of the Scottish Parliament and
was described as a simple but effective approach. Gareth agreed to provide an update on
development of a Corporate Delivery Plan and the link to service planning, when
available. 8.7 The Committee thanked Gareth for his comprehensive presentation and recognised that it was not an easy task, especially in a politically challenging and dynamic environment. |
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Corporate Risk Minutes: ARAC (22-01) Paper 7 – Corporate Risk ARAC (22-01) Paper 7 – Annex A - Summary Corporate Risk
Register ARAC (22-01) Paper 7 – Annex B – Corporate Risks plotted 9.1 The Chair
referred the Committee to the diagram at Annex B of the paper which outlined
the Commission’s risk profile. It
demonstrated that all of the risks were moving in a downward direction due to
the controls in place. He acknowledged
that a number of new risks had been added to the register during 2021 to
reflect the changing risk profile and that there were no movements in the risk
ratings. He thanked officials for the
comprehensive updates provided and asked the Directors to summarise the latest
updates for each of the risks. 9.2 In relation
to the Dignity and Respect risk, Lowri Williams provided an update on the
consultation with Members which had been incorporated into the latest Member
and Support Staff survey. The survey,
which had already generated some good responses, was due to close at the end of
February and would be followed up with meetings to discuss the responses. Lowri added that, whilst the Remuneration,
Engagement and Workforce Advisory Committee (REWAC) had no meetings planned in
the near future, she was hopeful of its engagement in the review of dignity and
respect policies. 9.3 The
Coronavirus risk had been covered by the update under agenda item 3. 9.4 In
relation to the cyber-security risk, the Chair acknowledged receipt of a draft
new comprehensive assurance report which had been shared with Committee members
and would inform discussion on regular reporting going forward. Arwyn Jones added that the ICT team were
planning to share details of cyber-attacks with Members of the Senedd to raise
awareness of the risks. 9.5 Siwan summarised
the action being taken forward to address risks around data protection, which
included recruitment of additional resources.
In response to questions from Committee members, it was agreed that the
planned deep-dive into data protection risks at the April meeting would include
reference to training for Members, including the take-up of induction
sessions. 9.6 In
relation to the three strategic transformation risks, Siwan had no further
updates to add to those in the report at Annex A of the paper but acknowledged
that the risk ratings would be subject to change in response to specific
activity. The Chair acknowledged that
the Commission had become more adaptive to risks relating to constitutional
change. 9.7 Arwyn
reported some further progress to help mitigate the risk around compliance with
the Commission’s Official Languages Scheme whereby the Commission and the Welsh
Government would be trialling interpretation solutions on Teams with
Microsoft. Action ·
Include details of data protection training
for Members and recruitment to data protection posts in the next risk update to
ARAC. |
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Procurement - spend with Welsh suppliers Minutes: ARAC (22-01) Paper 8 - Welsh Spend 10.1 The Chair welcomed Jan Koziel and thanked him for his
paper which was an updated version of a paper he shared with the Committee in
July 2021. 10.2 Jan described how the majority of spend on contracts
remained with ICT and Estates and Facilities Management. He highlighted that the 38% of spend with
Welsh based suppliers reported in July 2021 had increased to 44% in the year to
date, with a target of 50% by the end of this Senedd term. 10.3 In order to achieve the proposed target, his team would
continue to undertake market analysis to source Welsh suppliers and embark on
targeted discussions with potential suppliers.
They would look at re-structuring contracts into smaller lots (where
feasible) and send contract notices to Chambers Wales to share with their
members. This activity could generate
more tender applications from potential Welsh suppliers but Jan reminded the
Committee that all suppliers would be treated fairly during the tendering
process and within the legal requirements.
10.4 Jan
referred to the Social Partnership and Public Procurement (Wales) Bill and
other UK legislation which promote an emphasis on local suppliers and social
value. He advised that the Commission’s
terms and conditions already included a fair terms of employment clause, which
made it a requirement for suppliers to ensure their employees are treated
fairly and paid above the living wage. 10.5 The
Committee welcomed this update and praised Jan and his team for their work in
this area. They noted that consideration
would be given to breaking up contracts but advised caution as this could limit
scale and value for money opportunities.
They also suggested measuring the numbers employed in Wales as a result
of awarding a contract rather than measuring the locality of suppliers’
offices. It was also suggested that Jan
considers working with the Federation of Small Businesses (FSB) and to seek
comparisons with local authorities and other public organisations. 10.6 Jan welcomed suggestions from the Committee relating to the broadcasting contract and there was a discussion on how holding an open day to demonstrate the facilities could benefit potential suppliers. He agreed to provide an update on progress with the broadcasting procurement exercise in due course, possibly out of committee depending on timing. Ann Beynon suggested that Business Wales could also be approached to help organise any open day events. |
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Departure Summary Minutes: ARAC
(22-01) Paper 9 – Departure Summary 11.1 The Committee noted five departures from normal procurement procedures. |
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Finance Update Minutes: ARAC
(22-01) Paper 10 – Finance Update
12.2 Nia highlighted that the 2022-23 budget did not reflect
the impact of IFRS 16 (Leases)
noting that, subject to no further delay on implementation from HM
Treasury, the impact would be reflected in the Commission’s first Supplementary
Budget for 2022-23. Preparatory work
would start in March/April 2022 on the 2023-24 budget strategy. 12.3 The Committee thanked Nia for the update and for the information she had shared out of committee. Information on losses and special payment were noted by the Committee. |
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Annual Review of accounting policies and systems Minutes: ARAC
(22-01) Paper 11 - Annual Review of Accounting Policies 13.1 Nia introduced the paper which outlined how the Finance
team had carried out its annual review of accounting policies. She referred the Committee to the Annex which
outlined the points to note. The review
had covered external changes such as accounting standards, as well as changes
to internal arrangements and the Audit Wales external audit report and
management letter. 13.2 Nia confirmed that there were only minor changes which had implications for disclosure in the Commission’s 2021-22 accounts. She noted that steps had already been taken to address the issue raised by Audit Wales during the 2020-21 audit, relating to items of capital expenditure. Changes to the accounts reflecting IFRS 16 – Leases would be implemented during 2022-23. |
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Update on Finance System Minutes: ARAC
(22-01) Paper 12 – upgrade to Finance System 14.1 Nia’s
final item was to update the Committee on the status of the project to upgrade
the finance system and, at the request of the Chair, to focus specifically on
mitigation of associated risks. 14.2 As Senior
Responsible Owner for the project, Nia confirmed she was comfortable with the
mitigations in place, including rigorous user testing and the contingency of
reverting back to the existing system should issues arise to prevent the
planned go live in April 2022. She
reminded the Committee that this was an upgrade as opposed to installing a
totally new system which minimised some of the implementation risks. Nia also advised that the software
support partners used by the Commission had managed the original installation
in 2017. Having won the re-tender for
the support contract in 2018, they would be managing the migration of data to
the live environment and provide additional support if necessary after the go
live date. 14.3 To deliver the system upgrade, the Commission is
reliant upon and will continue to work alongside its third-party developer
partner. Through collaboration, both parties would ensure that lessons were
learned from previous implementations.
To ensure that expectations on all sides were met there would be ongoing
dialogue with the developers and close co-operation with Procurement colleagues
to ensure there was strong contract management practices in place. 14.4 The Chair
was satisfied with progress and mitigation of risks, noting the implications if
implementation did not go to plan. He
also reiterated that Audit Wales would need access to the old system for the
interim audit before the new system went live.
Gareth Lucey would work closely with Nia on this. 14.5 Gareth
Watts highlighted that this system upgrade would be captured in his audit plan
post-implementation. This would focus on reviewing the integrity of the data
and migration as the coding structure would remain the same. 14.6 The
Committee then discussed the issue of bilingual functionality of IT systems
more generally. Arwyn Jones advised that
he was working with an organisation called the Centre for Digital Public
Services in Wales and agreed to share details of membership with Ann Beynon and
report back any necessary information to the Committee. Action · Provide further details to Ann Beynon on the Centre for Digital Public Services (in relation to bilingual provision within IT systems) |
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Forward work programme Minutes: ARAC
(05-21) Paper 12 – Forward Work Programme
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Any other business Minutes: Oral item 16.1 No other business was raised. 16.2 Gareth Lucey attended
a private session with members of the Committee once formal proceedings had
concluded. No minutes were taken. Next meeting is scheduled for 29 April 2022. |