Agenda and minutes
Venue: Conference Room 4B - Tŷ Hywel. View directions
Contact: Clerk: Kathryn Hughes Deputy Clerk: Ryan Bishop
No. | Item |
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Introductions, apologies and declaration of interests Minutes: 1.1
The Chair welcomed everyone to the
meeting and noted apologies had been received from Suzy Davies AM, Assembly
Commissioner and Committee member. Julian Luke, Head of Policy and Legislation
Committee Service, was in attendance as an observer. 1.2 No interests were declared. |
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Minutes of 21 October, actions and matters arising Minutes: ACARAC (01-20) Paper 1 - Minutes of 21 October 2019 ACARAC (01-20) Paper 2 – Summary of actions 2.1 The minutes of the 21 October meeting were agreed. |
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Governance and Assurance Update Report Minutes: ·
ACARAC (01-20) Paper 3 – G&A update
report 3.1 Gareth Watts introduced the report which provided members with an update on recent Governance and Assurance work and highlighted the following: ·
Heads of Service had each completed an Assurance
Statement, which were being used to inform Directorate-level statements ahead
of a meeting to provide independent scrutiny and challenge of these in
February; ·
the results of an External Quality Assessment
(EQA) he was carrying out of the Northern Ireland Assembly Internal Audit
Service would be reported to their Audit and Risk Committee in the spring; ·
the findings of the review into effectiveness of
the systems in place for the Commission’s training budgets would be presented
to the Executive Board and shared with the ACARAC in due course; and ·
responsibility for production of the Annual
Report and Accounts remained with the Governance team and work was underway on
planning and commissioning pieces of work. 3.2
Gareth advised that the findings of the Managing
Absence audit report had been considered by the Commission’s Leadership Team.
The Committee noted that progress was being made with proposals for
implementing recommendations around training for line managers, improvements in
flexi-time monitoring and improved reporting from the HR/Payroll system. 3.3
In relation to the Internal Audit Plan 2019-20,
reports on recent reviews of fixed assets and procurement had been circulated
out of committee. 3.4
For the procurement review, which focussed on
the Commission’s strategy to engage with more Welsh suppliers, the report
acknowledged good progress to date, with some minor recommendations. 3.5
Responding to questions around what practical
work had been done to engage with Welsh suppliers, Dave explained that
engagement takes place during contract renewal stages and on a continual basis
with current contractors and sub-contractors, such as the catering and estates
services. Dave also cited an example of a recent well received supplier
engagement open day held by our major estates management contractors. 3.6
Ann re-iterated the importance of continuing to
pro-actively engage with Welsh suppliers, including through intermediaries such
as the Chamber of Commerce and the CBI so that opportunities are publicised in
a timely way. 3.7
In response to questions around the Official
Languages Scheme compliance audit, Gareth explained that this would include a
review of the tools used to measure compliance, aiming to provide further
assurance to the Chief Executive and the Commissioner with responsibility for
the official languages. 3.8
In response to questions around plans to review
of the Commission’s security arrangements, Dave explained that discussions were
ongoing with South Wales Police, given the ever changing nature of threats. Action: (3.7) Gareth Watts to share the scope for the audits on compliance with the Official Languages Scheme and project management changes. |
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Consider the proposed Internal Audit strategy Minutes: ACARAC (01-20)
Paper 4 - Internal Audit Plan 2020-21 4.1
Gareth outlined the Internal Audit Plan for 2020-21
noting that audits carried out during 2019-20 had assisted with the
identification of areas to cover. Gareth welcomed further suggestions from the
Committee. 4.2
Gareth outlined the upcoming review of the
arrangements in place for the recording, safeguarding and protection of the
Commission’s tangible assets. He also
outlined that the audit into risk management was a periodic review of the
effectiveness of risk management arrangements at a corporate, service and
project level. 4.3
The Committee were keen to hear further information
relating to the planned audit of compliance culture, due to take place in
November 2020. Gareth explained that this was a follow up to previous specific
audit work to provide wider assurance on compliance in general. It would
involve identifying key areas of statutory, policy and process requirements for
the audit to ascertain how compliance was measured and levels of confidence in
measures. 4.4
The Chair thanked Gareth for his work in producing
the Internal Audit Plan and providing Committee members with an update. Action: (4.3) Gareth Watts to share the scope for the compliance culture audit. |
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External Audit Update Minutes: ACARAC (01-20) Paper 5 - External Audit update 5.1
The Chair welcomed Gareth
Lucey and Ann-Marie Harkin to the meeting. Gareth explained that the External Audit
update had been circulated out of committee in December. This had included
details of calculation of the audit fee on which the Chair asked for further
clarification. Gareth agreed to provide further details out of committee. 5.2
Gareth drew the Committee’s
attention to a national study of counter-fraud arrangements across the Welsh
public sector. This was in response to a report presented to the Public
Accounts Committee (PAC) in June 2019 where proposals by the Auditor General to
carry out a more detailed review across 40 public sector bodies in Wales were
endorsed. This included the Assembly Commission. 5.3
In response to questions
around the confidentiality of any findings, Gareth assured Committee members
that, whilst the report would be published and therefore subject to public
scrutiny, it would not specifically highlight any issues with the Commission’s
arrangements. 5.4
The Chair noted the
planned work and that any learning from the study would be considered by the
Commission after the report was published. Action: (5.1) WAO to provide a note on the composition of daily rate costs in relation to audit fees, specifically a breakdown of overheads and costs directly funded. |
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Consider the proposed External Audit strategy Minutes: ACARAC (01-20) Paper 6 – External Audit strategy
2019-20 6.1
The Committee received an overview of the 2020
Audit Plan from Ann-Marie, noting an estimated cost at the same reduced rate as
last year. The audit would follow the usual risk-based approach and based on
the assumptions outlined in the plan. 6.2
Ann-Marie
also brought the Committee’s attention to personnel changes in the audit team
with a new Senior Auditor in place. She also explained that the Assistant
Auditor General for Wales would certify the accounts to maintain independence
and objectivity as the Auditor General had previously been employed by the
Commission. 6.3
It was anticipated that the bulk of the audit work
could be completed by the end of May and the findings brought before ACARAC at
its June meeting. 6.4
The Committee discussed the scope of the audit in
relation to Assembly Members’ offices. Ann-Marie informed the Committee that
the they were able to rely on information provided by internal audit and the
Members’ Business Support (MBS) team, who regularly conduct site visits to
offices. The Committee heard that added assurance would be provided from site
visits as part of the review into the Commission’s assets. 6.5
The Chair asked the secretariat to arrange a
briefing session for Committee members on the work of the Members’ Business
Support (MBS) team and the monitoring of Assembly Members’ expenses. Action: (6.5) Provide briefing to ACARAC members on the work of Members’ Business Support (MBS) and the monitoring of Assembly Members’ expenses. |
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Budget update Minutes: ACARAC (01-20) Paper 7 - Update on 2019-20 Financial Position and 2020-21
Budget 7.1
Nia introduced the item,
asking Committee members to note the current financial position for the 2019-20
financial year. 7.2
Nia highlighted the
change in presentation of the budget to reflect that the Commission would no
longer utilise any underspend arising from the Remuneration Board’s Determination
budget to fund project work. The Committee were reassured to hear that, as this
was the first year of presenting the budget in this way, it would be subject to
ongoing review. 7.3
In response to questions
on the increase in staff turnover percentages, Nia explained that this average
brought the Commission in line closer to the public sector average and did not
cause concern for senior management at this point. 7.4
The Committee questioned
officials on the expenditure on the estate and the future of Tŷ Hywel.
Dave informed the Committee that, under the current arrangements the level of
investment was necessary to maintain the building. 7.5 Responding to questions around the value for money savings target, Nia indicated that this information was now collated for internal monitoring purposes only. |
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Review of accounting policies Minutes: ACARAC (01-20) Paper 8 -
Review of accounting policies 8.1
Nia introduced the paper
which provided an update on work done to review the Commission’s accounting
policies. 8.2 Given the complexities involved, and significant changes to some accounting approaches for the public sector, the Chair thanked Nia and her team for the thorough work done on reviewing the Commission’s accounting policies. He also noted that the Commission appeared to be ahead of other public sector bodies in implementing the changes. |
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Review of accounting system Minutes: ACARAC (01-20) Paper 9 -
Review of accounting system 9.1
Nia introduced the paper
which outlined conclusions on a review of the Commission’s accounting system. 9.2
The Committee noted that the
current supplier of the accounting system, was under contract to provide
support for the system until 2022. 9.3 The Committee were reassured that the review had confirmed the expected benefits of the system, introduced almost three years ago had been realised, had improved the internal control environment and was fit for purpose. |
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Corporate Risks Report Minutes: ACARAC (01-20) Paper 10 – Corporate Risk ACARAC (01-20) Paper 10 – Annex A - Summary Corporate Risk Register ACARAC (01-20) Paper 10 – Annex B – Corporate Risks
plotted 10.1
The Committee received an
update from Dave on the status of the Commission’s Corporate Risks and were
invited to comment. 10.2
The Committee noted that,
despite lack of movement in the risk ratings, there was continued effort going
into managing the risks, some of which the Commission had little or no
influence over. Dave provided assurance that the risks were regularly monitored
at appropriate levels. 10.3
The Committee welcomed
progress on mitigation actions to strengthen controls where possible, including
the appointment of a Safeguarding Officer. 10.4
It was agreed that the
wording of the Brexit risk would be reviewed and that consideration would be
given to assessing the risks around the UK constitutional landscape post-EU
exit. 10.5
The Committee discussed
ways in which the Commission were planning to respond to the changing wider
constitutional landscape, particularly in terms of engagement work. Manon
indicated that Executive Board had held Sixth Assembly planning sessions that
looked at various potential scenarios and their ramifications. In addition,
Commission staff had been invited to take part in a number of staff sessions
looking at how the organisation might need to respond to those different
scenarios should they be realised. 10.6
The Chair suggested that
further discussions over the Committee’s role in the continued monitoring of
these constitutional risks be discussed at a future horizon scanning session. Action: (10.5) Share outcomes of discussions on the strategy for the Sixth Assembly. |
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Corporate Risk - Assembly Reform risks Oral item Minutes: 11.1
The Chair welcomed Siwan
Davies, Director of Assembly Business, Arwyn Jones, Director of Communications
and Engagement and Richard Thomas, Implementation Manager in the Constitutional
Team, to the meeting. 11.2
Siwan advised that the
Senedd and Elections (Wales) Act had received Royal Assent on 15 January 2020
and outlined how this had changed the risk profile. She also outlined the
governance that was in place to enable decision-making and management of risks
and the role of the Assembly Reform Project Board in overseeing implementation
of the aspects of the Act which were within the Commission’s responsibility. 11.3
In response to questions
from the Committee, Siwan described how the governance structure, including the
project board and the Name Change Integrated Team facilitated effective
dissemination of information internally to staff and to external stakeholders.
She added that detailed advice was also given to Assembly Members and their
staff when decisions were made. 11.4
Siwan noted that the
Committee on Assembly Electoral Reform (CAER) had sought funding from the
Commission to undertake a citizens assembly. Support for the Llywydd and
Commission in their engagement with CAER would continue to be provided by
Strategic Transformation Team. 11.5
Proposals on
implementation of the Senedd and Elections (Wales) Act in relation to the name
change would be presented to the Commission on 27 January where they would make
decisions based on majority views if necessary. 11.6
In relation to lowering
the voting age to 16, Richard Thomas explained how the Commission were working
closely with all stakeholders, including local authorities, the Welsh
Government and the Electoral Commission, who were leading on voting
registration, and other groups to ensure a comprehensive awareness-raising
campaign. He added that material for schools had already been prepared and
that, whilst this was primarily led by the Welsh Government, the Commission had
a key role to play in engagement with the young people. 11.7
The Chair thanked
officials for their attendance and for providing Committee members with such a
thorough update. Action: (11.3) Provide briefing on work to engage with external stakeholders in relation to name change aspects of the Senedd and Elections (Wales) Act. |
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Cyber-security Minutes: ACARAC (01-20) Paper 11 – Review of Microsoft
contract dependencies 12.1
The Chair welcomed Mark
Nielson, Head of ICT and Broadcasting and Jamie Hancock, Head of (ICT)
Infrastructure and Operations, to the meeting and thanked them for providing a
comprehensive paper in advance of the meeting. 12.2
In response to questions
from the Committee, Mark and Dave provided assurances that the Commission would
continue to ensure they were taking full advantage of the Microsoft services
available, whilst being mindful of what the broader industry had to offer and
keeping pace with the latest technology. Mark added that, now that the recently
created Security and Compliance Manager post had been filled, this would
facilitate the continued drive to ensure robust cyber-security measures were in
place and effective. 12.3
The Committee heard that,
following an assessment of the different options available to provide
geographic separation of backup and copy tapes, Azure Backup was judged to be
the best solution for the Commission. Amongst other benefits, the solution was
fully integrated with the Commission’s existing cloud services which removed
any reliance on tape, or local storage. 12.4
Jamie informed the
Committee that Microsoft were aiming to create a carbon neutral data centre
environment, which was in line with the Commission’s environmental targets and
commitments. 12.5
In response to questions
from the Chair on whether testing had taken place in relation to retrieving
data from a backup, Jamie informed the Committee that some testing had been
successfully carried out which had informed plans for fuller testing. 12.6 Mark re-iterated the invite for Committee members to attend the a local Microsoft Datacentre, combining this with a discussion with Microsoft and Azure officials. |
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Feedback on REWAC consideration of the Commission's Engagement Strategy Oral item Minutes: 13.1
Ann and Arwyn provided
the Committee with an update on areas covered at the Remuneration Engagement
and Workforce Advisory Committee (REWAC) meeting on 14 January, minutes of which
would be shared with ACARAC members. The areas covered are as outlined below:
13.2 The Chair thanked Ann and Arwyn for the update and looked forward to receiving a further update in due course. |
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Feedback on attendance at ARAC Chairs' Forum Oral item Minutes: 14.1 The Chair fed back to Committee members on attendance at the Audit and Risk Assurance Committee (ARAC) Chairs’ Forum. Topics had included the fast paced movement of technology in the auditing sector, particularly around data processing and data analytics. |
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Departure Summary Minutes: ACARAC (01-20) Paper 12 – Departure Summary 15.1 The Committee noted the departures from normal procurement procedures outlined in the paper. |
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Forward Work Programme Minutes: ACARAC (01-20) Paper 13 –
Forward Work Programme 16.1
As this item was not
discussed – Committee members would be invited to comment out of committee. Next meeting is scheduled for 27 April 2020. |