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 Nia Morgan to her
first meeting. He also noted the late
apology from Ann-Marie Harkin and urged attendees to prioritise the
long-standing commitment to meetings of this Committee. 1.2
The Chair declared that he was a
Non-Executive Director on the Cabinet Office Modern Electoral Registration
Programme. 1.3
No other interests were declared. |
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Minutes of 8 February, actions and matters arising Minutes: ACARAC
(32) Paper 1 - Minutes of 8 February 2016 ACARAC
(32) Paper 2 – Summary of actions 2.1
The minutes of the meeting on 8 February
2016 were agreed and officials provided the following updates on the
outstanding actions. 2.2
Dave Tosh confirmed that a paper presenting
the work around the Business Efficiency
Review was on the Committee’s forward work programme for the June
meeting. 2.3
In relation to the action for approaching the Wales Governance Centre
(2.4), Claire Clancy confirmed that the dates of future meetings had been
passed on and the item would be added to the forward work programme in due
course. 2.4
Kathryn Hughes would gather feedback
from the observer at the February meeting to be presented at a future
meeting. 2.5
All other actions would be covered as
agenda items at this, or future meetings.
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Internal Audit Activity Report Minutes: ACARAC
(32) Paper 3 - IA Update Report
2015-16 3.1
Gareth
Watts updated the Committee on recent audit work. In February, he had attended an
Inter-Parliamentary Internal Audit Forum where they had discussed approaches to
planning, cyber security and Members’ expenses. 3.2
Gareth
had provided details of the discussions around cyber security at the forum to
the Commission’s Head of ICT and Broadcasting who would consider how to take
this on board. 3.3
It
had also been agreed that Gareth would be taking over future audits of Members’
expenses from the WAO, as this was more cost-effective. 3.4
At
a recent Investment and Resourcing Board (IRB) meeting, the business case for
replacing the finance system was approved and Gareth confirmed that he would
attend meetings of the project board. 3.5
Gareth
advised that, as well as a planned effectiveness review of the IRB, he had been
considering options for the governance team to provide additional support for
programmes and projects. The Chair encouraged him to consider agile techniques
as part of this review. 3.6
As
a recently appointed member of the Coleg Gwent Audit Committee, Gareth
described the contributions he had made and the networking opportunities this
had brought. As Coleg Gwent had recently
implemented a new finance system he would share contact information with Nia
Morgan. |
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Latest Internal Audit Report & Previously circulated IA reports Minutes: ACARAC
(32) Paper 4 – Making the most of the Assembly Estate 4.1
Gareth
presented this review which detailed the progress made against one of the
Commission’s corporate priorities. He
informed the Committee that a new Visitor Experience and Venue Manager had
recently been appointed who would take the recommendations forward. 4.2
In
response to questions from Committee members on refurbishing Members’
accommodation, Gareth and Dave explained the work had been undertaken as part
of the planned maintenance programme.
4.3
A
further discussion centred on the long-term value for money on the use of the
Assembly estate, including the potential to purchase Tŷ Hywel. Dave agreed to revisit this. It was agreed that wider considerations about
accessibility to the Cardiff Bay area were important, but largely outside the
Commission’s control. 4.4
The
Committee welcomed this comprehensive report especially in addressing the
objectives set by the Commission, and encouraged the continued use of visitor
experience feedback. Action -
Dave to investigate
options for the purchase of Tŷ Hywel. Previously
Circulated IA reports ACARAC
(32) Paper 5 – Bilingual Services ACARAC
(32) Paper 6 – Data Analytics ACARAC (32)
Paper 7 – Budgetary Control 4.5
Three
internal audit reports were circulated out of committee on 30 March and Gareth
summarised the comments/queries he had received. One point highlighted was that the support to
individuals and the use of technology identified in the Enhanced Bilingual Services audit should be applauded. 4.6
The
Data Analytics audit, undertaken by
TIAA, confirmed that there was no indication of fraudulent behaviour during the
financial year in question. Committee members suggested that the objective of
future audits should explicitly state that its purpose is to identify any
evidence of fraudulent behaviour. 4.7
The
audit on Budgetary Control had
identified some areas that could be improved with a new finance system but Nia
confirmed that the manual workarounds, although resource intensive, were
effective. |
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Consider Internal Audit's outline audit plan for 2016-17 Minutes: ACARAC (31) Paper 8 – IA
outline plan 2016-17 5.1
The
Committee had approved Gareth’s strategy at the February meeting and welcomed
his outline plan for 2016-17. 5.2
When
questioned whether his plan should include the new finance system, Gareth
agreed to discuss this with Nia to determine the level of assurance required by
the project board. 5.3
Gareth
also provided the Committee with some further information on the planned
security review. Following a period of
restructuring within the team, Gareth wanted to ensure that the changes were
well embedded within the service area before carrying out his review. 5.4
A
wider discussion centred on security provided by South Wales Police. Claire assured the Committee that the
financial implications of increasing the police presence had been considered
carefully to ensure they were necessary and cost effective. 5.5
Dave
also provided an update on work to assess the Commission’s exposure to cyber
security risks, including the engagement of an inspector from North Wales to
help identify and manage risks of attacks to our Building Management System. |
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Update on full position of all outstanding issues identified in last years accounts and any other emerging issues Minutes: ACARAC (32)
Paper 9 – WAO update 6.1
Matthew
Coe introduced an update paper and highlighted some key items for the Committee
to consider. Issues raised during the
2015-16 audit were now all resolved. 6.2
He
confirmed that dates for the main audit of the accounts had been agreed with
Nia, although concerns were raised regarding the resource impact of carrying
out the pension audit in parallel and with the same audit lead. Nia and Matthew would discuss this further outside
of the meeting to ensure that the timetable is met. 6.3
Matthew
confirmed that papers, including the ISA260 would be submitted in time for the
meetings in June and July. 6.4
In
relation to the replacement finance system, Matthew suggested officials
consider whether input from the WAO, such as observing at project board
meetings would be useful to provide further assurance. Actions -
Nia Morgan to liaise with
WAO on resources for forthcoming audits of accounts and pensions. -
Nia Morgan to consider
input from WAO on the replacement finance system project. |
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Update Joint Working Protocol with Internal Audit Minutes: Oral item 7.1
Gareth
informed the Committee that an updated working protocol approved in April 2015
had been reviewed and remained valid. He
regularly meets with a Team Lead from the WAO to discuss the ongoing working
relationship. The Committee welcomed this
evidence of a continued strong working relationship with external audit. 7.2
The
Committee also noted that the WAO would be carrying out the external review on
compliance with the Public Sector Internal Audit Standards. |
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Review progress of action plan following ACARAC effectiveness survey Minutes: ACARAC (32)
Paper 10 – survey results 2016 action plan 8.1
The
Chair thanked the team for this update on progress against the action plan and
noted the on-going work to review the key performance indicators. |
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Draft Annual Report Minutes: ACARAC (32) Paper 11 – Draft
Annual Report 2016 9.1
The
Chair appreciated the comments he had received on the draft annual report. The Committee approved the document presented
and the clerking team agreed to arrange translation before formal submission to
the Assembly Commission secretariat. |
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Budget update Minutes: ACARAC (32)
Paper 12 – Budget Update 10.1 Nia presented a paper
setting out the latest financial position for 2015-16. The paper also included an update on the work
to deliver future budgets. 10.2 Some further detail was
provided by Claire on the implications of the voluntary exit scheme and the
wider plans to restructure some teams during the Fifth Assembly to ensure a
positive impact as a result of the scheme.
The Chair commented that the process followed appeared to have been
robust, with independent assurance built in. 10.3 Nia explained that a value
for money saving target was not specified for 2016-17 as no major contracts
were due for renewal but regular meetings with Estates and Facilities
Management and ICT were likely to draw out some discrete savings or
efficiencies. Claire explained the role
of Investment and Resourcing Board in making decisions about the best use of
savings generated. 10.4 Nia also informed the
Committee that a challenging few months lay ahead for her team with a new
budget strategy likely to be presented to a new Assembly Commission in
June. |
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Accounting Policies Minutes: ACARAC
(32) Paper 13 – Accounting Policies 11.1 The Committee noted this
paper for information and Nia outlined minor amendments she had made. 11.2 In relation to purchasing
IT equipment as and when required, Dave assured the Committee that checks were
made that prices were competitive. |
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Update on fraud and whistleblowing policies Minutes: ACARAC (32)
Paper 14 – Whistleblowing Policy and Fraud Policy Updates 12.1 Following a review of both
policies, Gareth informed the Committee that he would be working with the Head
of Human Resources to publicise the whistleblowing policy. 12.2 The Committee welcomed
this approach, especially as there were no cases of whistleblowing reported
which, whilst this could mean there was no cause for concern, could also
potentially indicate that employees were unaware of the policy. 12.3 The Annual Report on Fraud
would be presented to the Committee in June. |
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Update on Assurance Framework Minutes: ACARAC (32)
Paper 15 – cover paper ACARAC (32)
Paper 15 – Annex A ACARAC (32)
Paper 15 – Annex B 13.1 The Chair welcomed this
exemplar framework document and the discussion that proceeded on the benefits
of its use in the organisation. 13.2 Dave and Kathryn advised
that they would be taking on board feedback from Management Board members when
considering the most efficient and effective way to gather assurances going
forward. Action -
Gareth to update the
Committee on further use of the Assurance Framework. |
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Draft Governance Statement for 2015-16 Minutes: ACARAC
(32) Paper 16 – cover paper and Draft GS 2015-16 14.1 Claire presented the draft
Governance Statement to the Committee and thanked Keith Baldwin for his input
at the challenge session at Management Board in February. Keith added that the process had worked well,
particularly the focus on Director-level statements. 14.2 The drafting of the
Commission’s Annual Report and Accounts was well advanced and Claire was
confident it would be finalised according to the timetable. 14.3 The Committee made some
minor suggestions which would be taken on board for the next draft but welcomed
early sight of the statement and were encouraged by the progress of the Annual
Report and Accounts. Action -
Claire to consider
including an organisational structure chart under the appropriate heading in
the Governance Statement. |
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Update on Fifth Assembly Transition Minutes: Oral Item 15.1 Claire was pleased to
report that Fifth Assembly Transition plans were all on track and praised the
team for their hard work. 15.2 From an Assembly Members’
perspective, Angela Burns wanted to praise those involved as the arrangements
had been handled and explained extremely well. 15.3 The Chair congratulated
Claire and her team for their thorough preparatory work. |
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Corporate Risks Report Minutes: ACARAC (32)
Paper 17 - Corporate Risks ACARAC (32)
Paper 17 – Annex A - Corporate Risks Summary Report ACARAC (32)
Paper 17 – Annex B - Corporate Risks plotted 16.1 The Committee welcomed the
report and noted two new risks that had been added since the February
meeting. The Chair also commented on the
maturity of Corporate Risk Register review process, whereby risk severities are
regularly reviewed and risks added and removed as appropriate. 16.2 Officials agreed with the
Committee’s suggestion that the combined impact of imminent changes at a senior
level was potentially significant. The next year would see the departure of the
Commission’s Chief Executive and Clerk, the appointment of a new Permanent
Secretary, Presiding Officer and Commissioners, and the potential for other
senior level changes. It was agreed that
the Risk Manager would review whether an appropriate risk should be added to
the Commission’s Corporate Risk Register.
16.3 It was also agreed to
further assess the risk of implementing a replacement finance system whilst
recruiting a new Finance Director. 16.4 In response to comments
from Committee members that risk severities were largely unchanged, Kathryn
explained that the impact or likelihood of the risks might have changed but not
the overall risk severity rating. She
planned to add these to future reports. Action -
Kathryn Hughes to
facilitate consideration of whether a new corporate risk was needed to reflect
the potential impact of significant changes at a senior level. -
Kathryn Hughes and Nia
Morgan to revisit the combined risks of implementing a replacement finance
system whilst recruiting a new Finance Director. |
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Critical examination of one identified risk - financial management Minutes: ACARAC (32)
Paper 18 - Financial Management Risk ACARAC (32)
Paper 18 - Annex A - ROAP for Financial Management Risk 17.1 Dave introduced the
examination of the risk on Financial Management. This was a critical time for the organisation
with the finalisation of the annual accounts, presenting the budget strategy to
the new Commission, and the finance system replacement project, but he assured
the Committee that a skilled team and robust support were in place. |
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Papers to note and any other business Minutes: ACARAC (32)
Paper 19 – Terms of Reference ACARAC (32)
Paper 20 - Departures summary ACARAC
(32) Paper 21 - Forward Work Programme 18.1
The
revised Terms of Reference were agreed. 18.2
The Committee noted three departures from normal
procurement procedure. 18.3
The
Chair concluded the meeting by thanking everyone for their papers and
contributions. Private
session A
private session with Committee members was attended by the Commission’s
external audit representative Matthew Coe. No minutes were taken. Next meeting is scheduled
for 13 June 2016. |