Agenda and minutes
Venue: Conference Room 4B - Tŷ Hywel. View directions
Contact: Clerk: Kathryn Hughes Deputy Clerk: Buddug Saer
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Introductions, apologies and declaration of interests Minutes: 1.1 Apologies were received from Suzy Davies, AM
and Commissioner. It was agreed that the clerking team would capture any
comments on the papers from Suzy together with responses from officials. 1.2 The Chair welcomed Craig Stephenson
for two specific items - 7 and 12. 1.3 No
interests were declared. |
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Minutes of 23 April, actions and matters arising Minutes: ACARAC
(03-18) Paper 1 - Minutes of 23 April 2018 ACARAC
(03-18) Paper 2 – Summary of actions 2.1
The minutes of the meeting on 23 April were agreed subject to one
amendment which would be made before publication. 2.2
Gareth Watts confirmed that action 6.4 (consider referencing PAC and Finance Committee on the Commission’s
Assurance Map) was part of a wider review of assurances and an update would
be shared with the Committee in the autumn.
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WAO update report Minutes: ACARAC
(03-18) Paper 8 – WAO opinion for the FY 2017-18 3.1
This item was brought forward as Ann-Marie Harkin
had requested to leave the meeting early.
3.2
Ann-Marie and Gareth Lucey reported the Auditor General’s
intention to issue an unqualified audit report on the financial statements. One
minor recommendation was identified from the 2017-18 audit work, relating to
fully depreciated assets on the Commission’s fixed asset register. The
recommendation, to carry out a review of these assets, had been accepted and
was due to be implemented by September 2018. 3.3
The WAO confirmed that the audit had been very
efficient and effective and agreed to consider how efficiencies resulting from
the quality and immediacy of information produced by the new finance system
might be reflected in future audit fees.
3.4
The audit was nearly complete from the WAO’s
perspective apart from the final Assembly Members’ Pension Fund figures which
could result in minor changes. 3.5
The WAO thanked Nia Morgan and her team for the
professional and helpful way this audit had been managed, especially as they
had also been dealing with a new system and a HMRC audit during the same
period. They also referred to assurances they had been able to take from the
internal audit work. 3.6
Nia welcomed the comments from the WAO and
reiterated the importance of the strong working relationship that exists
between them and the Commission. She was disappointed to receive one
recommendation but assured the Committee that this would be implemented during
the summer recess. The Committee noted that the ambitious self-imposed target
of a 0.5% underspend had been narrowly missed by 0.1% due to an overestimation
of certain accruals. 3.7
The Finance team had experienced some teething
problems with the new system but Nia assured the Committee that these were
mainly around matching purchase orders rather than fundamental issues. Overall, the Committee were pleased with the smooth
production of the accounts and were satisfied with the explanation received on
the severance payments and the
additional information received relating to the direct charge payments of the
Auditor General Wales and the Public Service Ombudsman. The Committee
encouraged officials to ensure that communication between the Commission and
the Senior Salaries Review Body (SSRB) improved to avoid such discrepancies in
the future. |
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Annual Report and Statement of Accounts Minutes: ACARAC
(03-18) Paper 7 – Draft Annual Report and Statement of Accounts 2017-18 – cover
paper ACARAC
(03-18) Paper 7 – Annex A - Draft Annual Report 2017-18 ACARAC
(03-18) Paper 7 – Annex B - Statement of Accounts 2017-18 4.1
This item was also brought
forward to accommodate Ann-Marie’s and Craig Stephenson’s attendance. 4.2 The
Committee welcomed early circulation of both documents which had enabled
comments shared by email to be taken into account. 4.3 Manon
Antoniazzi and Craig Stephenson presented the annual report which they believed
was a transparent and open account of the key events and issues during the past
financial year. The Committee noted that cross-referencing separate reports,
such as those on Diversity and Inclusion and the Official Language Scheme had
avoided duplication and thereby reduced the size of the overall report. 4.4 The
Committee concluded that the Annual Report and Accounts was a thorough and
accurate account of the achievements and challenges faced by the Commission
over the year and congratulated the teams involved in its production. They also
welcomed inclusion of the revised governance structure in the Governance
Statement. 4.5 In
response to specific questions from the Committee, officials agreed to consider
setting tolerance levels for some of the KPI targets and to revise the
description of achieving emissions targets.
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Internal Audit Update Report Minutes: ACARAC
(03-18) Paper 3 – IA update report Item
4 - Internal Audit Annual Report 2017-18 ACARAC
(03-18) Paper 4 – Internal Audit Annual Report and Opinion 2017-18 Item
5 - Internal Audit Fraud Report ACARAC
(03-18) Paper 5 – Internal Audit Fraud Report Item
6 - Latest Internal Audit Report ACARAC
(03-18) Paper 6 – Assembly Members’ Allowances Audit Report 5.1
Gareth Watts presented these four
items to the Committee. His update report was noted and he outlined that his
Annual Report provided an overall opinion for 2017-18 that ‘…the framework of governance, risk
management and control is adequate and effective’ which was in line with
the Public Sector Internal Audit Standards (PSIAS) descriptions. 5.2 Gareth
highlighted areas where his work had added value to the organisation, for
example: establishing prioritisation criteria; review of the Investment and
Resourcing Board which had resulted in changes to the governance structure; and
the Capacity Review. He added that there was good general recognition of Internal
Audit’s advisory role. 5.3 Gareth
also informed the Committee of a trainee auditor within the Governance and
Assurance team who should be qualified by the end of the year. This was
welcomed by the Committee as necessary support for Gareth alongside the TIAA contract.
In response to questions about approval of the work produced by TIAA, Gareth
explained that, as the contract manager, he carried out quality assurance of
all reports produced by TIAA. He added that Dave would sign off audits of areas
within his remit, such as risk management and information governance. 5.4 The
Committee commended the completion of all the recommendations by management,
including the recommendations in relation to the audit on Key Financial
Controls, which had been implemented before the report was presented to the
Committee. 5.5 The
Committee encouraged Gareth to place additional focus on the Business
Directorate in future years and continue to ensure that his audit programme and
independence was not compromised. 5.6 Both
Gareth and Dave provided assurance to the Committee by describing how, as
outlined in the Internal Audit Charter update previously presented,
independence was safeguarded. Dave added that during their weekly catch-ups
Gareth’s work was discussed at length to ensure that there was no conflict of
interest and that his independence was protected. 5.7 Regarding
the Annual Report on Fraud, Gareth confirmed that the report covered third
party contractors and online card systems. During 2017-18 there were no
reported cases of fraudulent activity brought to Gareth’s attention. 5.8 Subsequent
to the implementation of the procurement card online system, and following the
Key Financial Controls audit, Nia continued to ensure that Heads of Service
approved purchases made using the cards to minimise any delays. 5.9 Gareth’s final item was the Assembly Members’ Allowances audit report. His assurance rating was moderate, with all four recommendations being agreed. He was assured that the Members’ Business Support (MBS) team were following the correct processes and procedures, and the identified duplicate payments (made by human error) were ... view the full minutes text for item 5. |
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Internal Audit Annual Report 2017-18 |
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Internal Audit Fraud Report |
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Latest Internal Audit Reports - Assembly Members' Allowances Audit Report |
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Prioritisation Criteria Minutes: Oral
update via presentation 6.1
This
item had been deferred from the April meeting. 6.2 Dave presented the Committee with
prioritisation criteria which was in part based on the MoSCoW (Must, Should, Could or Won't) model, together with more detailed criteria.
This had already been shared with the Assembly Commission, the Chair’s Forum
and the Business Committee and would be used to inform a refresh of strategic
priorities. It was being used by the Leadership Team to inform discussions
around prioritising resources for 2018-19 and the outcome of these discussions
and any business cases would be subject to challenge by the Executive Board.
Officials were in agreement that once this was embedded it would better enable
Manon and senior management to focus on and assess priorities, especially given
the limited resources and tighter financial situation. It would also provide
evidence for discussions with the Commission about priorities and the
implications of decisions. 6.3 Dave explained to the Committee that
the model had already been used by the Communications team to prioritise summer
events as part of the engagement strategy. The criteria would be developed
further as part of the Capacity Review to identify pinch-points and inform the
re-deployment of staff. 6.4 The Committee welcomed the approach
of using this as a tool to inform discussions, but stressed the need to have a
common understanding of the terms used and also to consider phased assessment
of projects as part of the agile methodology (e.g. candidate, discovery etc.).
They were encouraged by Gareth’s role as a ‘critical friend’ in developing this
criteria. |
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SIRO Annual Report 2017-18 Minutes: ACARAC
(03-18) Paper 9 – SIRO AR 2017-18 7.1
The Committee welcomed this report and Dave agreed
that its production could be brought forward in future years. He also agreed
that the report could be enhanced to make further reference to the preparations
for GDPR taking priority this year and to include statistics relating to
cyber-security. 7.2
Dave provided the Committee with a detailed
explanation of the data loss incident which had been reported to the
Information Commissioner’s Office. He
assured the Committee that additional checks had been put in place to minimise
the chance of human error in future. 7.3
The Information Governance Manager had been working
primarily on GDPR awareness and training and would continue to do so for the
coming months before concentrating on compliance activities. A review of the
classification system would also be carried out. 7.4
Dave accepted the action requested by the Committee
that future information breaches should be reported by the SIRO to ACARAC. Actions -
Dave
to revise the SIRO Annual Report to refer to GDPR preparations and
cyber-security statistics -
Dave to amend the SIRO Terms of Reference to
ensure that information breaches are reported to ACARAC at the earliest
opportunity. |
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Corporate Risks Report Minutes: ACARAC
(03-18) Paper 10 - Corporate Risks ACARAC (03-18) Paper 10 – Annex A - Corporate
Risks Summary Report ACARAC (03-18) Paper 10 – Annex B - Corporate
Risks plotted 8.1
Dave introduced this item as an interim update pending
a full review of corporate risks by the Executive Board in July. 8.2 Nia hoped
to remove FS3 (increased financial pressure due to uncertainty around
sufficient future resources) by July but discussions were ongoing with the
Finance Committee and the Commission about future funding due to changes in the
treatment of the Remuneration Board’s Determination underspend. |
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Critical examination of one identified or emerging risk - oral item Minutes: Oral update on CAMS32
(Dignity and Respect policies and procedures) 9.1
Craig updated the Committee on the management of
risks around the Commission’s and the Assembly’s Dignity and Respect policies and
procedures. A report based on an anonymised Dignity and Respect Survey was due
to be published on 19 June which was expected to attract some media
attention. 9.2
The Standards of Conduct Committee was yet to
provide its recommendations on an enquiry into political party policies and
procedures which would help inform future policy. The Secretariat would
continue to update the Committee when appropriate. 9.3
The Committee concluded that they believed the
Commission had responded honestly, positively and promptly to the issues that
had arisen, and recognised the importance of the work in train to evidence its
commitment to providing an open and inclusive culture that is free from
bullying, harassment and discrimination.
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ACARAC Annual Report 2017-18 Minutes: ACARAC
(03-18) Paper 11 –ACARAC Annual Report 10.1 The
ACARAC Annual Report was approved and a final version would be presented to the
Assembly Commission for consideration at its meeting on 9 July. |
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Departure Summary Minutes: ACARAC (03-18) Paper 12 –
Departure Summary 11.1 There
had been no departures from normal procurement procedure to report to the
Committee. |
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Forward Work Programme Minutes: ACARAC
(03-18) - Forward Work Programme 12.1 The
Committee discussed the items listed on the forward work programme for July. 12.2
The clerking team would share a
draft agenda with Committee members as soon as possible. 13.0 Private
session 13.1
Manon Antoniazzi attended a private
session with members of the Committee once formal proceedings concluded. No
minutes were taken. Next meeting is scheduled
for 9 July 2018. |