Agenda and minutes
Venue: Microsoft Teams
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 everyone to the meeting, including Steve Wyndham who was
attending for the first time since replacing Gareth Lucey as the Audit Manager
from Audit Wales. He noted an apology from Ann-Marie Harkin and advised that
the annual private session with Audit Wales which had been arranged for today
would be re-arranged. |
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Minutes of 20 November, actions and matters arising Minutes: 2.1
The minutes of the 20 November meeting were
agreed and updates to the actions summary noted. |
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COVID-19 - Corporate update Minutes: 3.1
Dave
Tosh provided the Committee with an update on the arrangements in place on the
estate. Due to the tier 4 restrictions, Senedd business was completely virtual and
would remain so until any restrictions were lifted. The restrictions had
significantly reduced the risk on the estate as attendance was below 15%, with
the threshold set at 30%. Those in attendance, including those supporting
Senedd business on Tuesdays and Wednesdays were bound by social distancing
rules which were working well. 3.2
The
Return to the Estate programme group were continuing to prepare for a number of
scenarios based on the easing of restrictions, especially given early success
of the vaccination programme. Their focus was on monitoring the regulations to
ensure that the organisation was as prepared as possible to reopen. This group
would provide weekly updates to the Leadership Team and would continue to
consult with other legislatures. 3.3
Committee
members questioned whether the success of the vaccination programme would
result in staff returning to the estate sooner. In response, Dave confirmed
that this was unlikely due to the age profile of building users, the majority
of which were unlikely to receive the vaccination until later in the year. He
also stressed that rules around social distancing and the wearing of face masks
were likely to remain for some time, as well as only needing to attend the
workplace if it was essential. 3.4
The
Estates and Facilities Team has identified pilot areas for specific alterations
to be made in order to test what a return to the estate could look like, with
both a physical and virtual presence, as well as meeting and break out spaces.
These pilots would be evaluated and adjusted before being rolled out to other
areas. 3.5
When
questioned on the importance of monitoring staff wellbeing, Dave assured the
Committee that the challenges around domestic responsibilities and home
schooling for a number of employees were being actively monitored by line
managers and that the welfare and wellbeing of staff was a priority for all.
The extended Christmas shutdown had provided an opportunity for the vast
majority of staff to take a break, as well as reducing the accumulated annual
leave figure. He believed that, whilst the sustained lockdown was putting
pressure on many, the Commission’s policies and the flexibility of teams to
work differently meant this was being well managed. He also advised that there
was mutual understanding of the pressures through regular discussions with the
Commission and the Chairs’ Forum. 3.6
Arwyn
Jones also informed the Committee that the planning for the start of the Sixth
Senedd was underway to allow for predominantly virtual delivery of proceedings.
This included the official opening ceremony which could be a mixture of onsite
and virtual activities depending on the restrictions in place at the time.
Commission staff were engaged in discussions with the various stakeholders. 3.7 The Committee welcomed this comprehensive update, the planning involved to ensure the safety and wellbeing of those who were working on ... view the full minutes text for item 3. |
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G&A update report (including forward look for 2021-22 audit plan) Minutes: 4.1
Gareth
presented his usual update on governance and assurance activity and audit work.
He outlined how he had continued to lead the Assurance Workstream of the Commission’s
Return to the Estate Programme and to participate in the intra parliamentary
forum on Business Continuity. He also provided an update on preparations for
production of the Commission’s 2020-21 Annual Report, and the production of
assurance statements by each Head of Service and Director, which his team were
leading on. 4.2
The
report on the risk and issue management review had been circulated out of
Committee and a review of the management of ICT assets for both Commission
staff and Members of the Senedd and their staff was awaiting clearance before
sharing with the Committee. 4.3
The
Committee questioned the criteria for the return of ICT assets and furniture by
departing Members and the allocation of kit to new and returning Members.
Gareth agreed that he would discuss recycling and re-use options with
colleagues in Members’ Business Support and Estates and Facilities
Management. 4.4
The
compliance culture audit had been rescheduled for the autumn term, the scope of
which was yet to be defined. Gareth described the meta compliance tool which
had been used to deploy certain policies, the effectiveness of which would be
evaluated. Committee members questioned its use to help ensure their level of
compliance with Commission policies beyond the ICT Security Rules. 4.5
In
terms of training needs in general for Committee members, the Chair suggested
discussions should be held with him and the clerking team. 4.6
In
forming his year-end Annual Report and Opinion, Gareth would review the Public
Sector Internal Audit Standards. His report would acknowledge how the reduction
in the number of traditional internal audit reports produced had been offset by
additional ways in which he had been able to offer assurance and review during
this period, including sitting on boards, providing real time assurance and
advice to senior management and others. 4.7
Gareth
concluded his item by presenting his forward look for 2021-22 which, as well as
delayed audit from the previous year and the regular reviews of areas such as
financial systems, Members expenses and cyber security would also include work
associated with a new Senedd. The Committee welcomed plans to carry out the
planned value for money review of the Research Service, specifically around the
Library as this would demonstrate effective use of resources. |
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Data Protection update Minutes: 5.1 Gareth presented this paper, which was
intended to provide assurance that the Commission were constantly reviewing
their ability to comply with GDPR. The focus of this paper was on how the gaps
which had been identified would be addressed going forward and plans for future
compliance audits. He also outlined the development of a data protection
compliance tool (based on an ICO self-assessment) which was being rolled out to
service areas. 5.2 Gareth added that with a Deputy Data
Protection Officer in place there would be increased focus on priority actions
including training and awareness, guidance and policy, including for retention
of information. Gareth agreed to provide regular reports on progress in respect
of the actions identified and would formally verify progress in a year’s time
through a formal audit. 5.3 The Committee welcomed this update and
the proposed approach. When questioned if advice and training would be provided
to Members and their staff, Gareth reminded the Committee that Members were
data controllers in their own right but his team would make Members aware of
guidance, including from the Information Commissioner’s Office (ICO). He also
made reference to training sessions which the
ICO Wales office had provided to Members in the past, and the option of
possible delivery of virtual sessions in the future. |
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Consider emerging findings from the current interim/in-year work and advise the Accounting Officer of any issues that need to be addressed during the remainder of the year |
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Consider any residual actions arising from the previous year's work of both internal and external audit and comment on any associated risks |
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Share wider public sector/national reports produced Minutes: 6.1
Steve
Wyndham thanked the Committee for their welcoming words and the Chair for
taking the time to introduce himself ahead of the meeting. He had taken on board
the Committee’s interest in Audit Wales (and National Audit Office) outputs and
updates and agreed to share these when available. 6.2
Steve
updated the Committee on the action regarding the outcome of any discussions
with the Equalities and Human Rights Commission (EHRC) in relation to the
Equalities Act. There was a commitment that Audit Wales would continue to
liaise with EHRC when there was a significant equality angle to their work. Ann
Beynon welcomed this commitment and encouraged the Senedd Commission to engage
with the EHRC in a similar way. It was agreed that Dave would discuss this
further with Ann outside of the meeting.
6.3
Steve
confirmed that there were no outstanding issues for last year’s ISA 260 or
Management Letter and the current interim audit was progressing well, with his
team and the Finance team working flexibly and pragmatically in these
challenging circumstances. 6.4
Audit
Wales was not in a position to share its audit fee as it was being reviewing by
their internal moderation process. As
soon as it was available, it would be shared with the Committee. Actions
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Consider the Commission's strategy for sixth Senedd Minutes: 7.1 The Chair invited Manon to provide an
update on development of the strategy for the Sixth Senedd. She explained that initial
discussions had been held with Commissioners around legacy reporting and its
recommendations for the new Commission, with further discussions to follow.
There were a number of areas of some certainty on which the current Commission
could base its recommendations, including that members of the next Commission
would be new and approval of the budget for 2021-22. Suzy pointed out that the
budget was already under pressure, particularly for future projects. 7.2 The new Commission would need to take account
of the budget constraints, the Welsh Government’s legislative programme and
learning from the Covid situation when prioritising its objectives around
delivering Senedd business, as well as developing workforce and accommodation
strategies. Manon also reminded the Committee of the expectation that a further
capacity review would be undertaken at the start of the Sixth Senedd. 7.3 The Committee noted that, whilst the
strategic goals were unlikely to change drastically, resetting these would
depend on the ambitions of the new Commission, for instance, around the next
stage of Senedd reform and levels and methods of engagement with the public. It
also noted that the setting of strategic goals and priorities would need to be
informed by the views of the current Commission. 7.4 The Committee then discussed specific
examples of priorities which would need to be considered, including the merits
versus the expense of taking forward citizen engagement activities and the
various ways this could be achieved. Aled suggested an evaluation of the
Assembly/Senedd experience with citizen assemblies and experiences elsewhere in
Ireland and Scotland. 7.5 The future of Tŷ Hywel was still a
live issue. Dave outlined plans in the short-term for necessary maintenance and
refurbishment of Members’ offices during the dissolution period, and in the
medium to long-term for return to the estate. He described the Commission’s
plans to pilot the approved proposals to support more hybrid working for staff
across the estate. These pilots would be evaluated and adjusted to suit service
areas. Rolling this out would involve exploring innovative solutions and the
re-direction of resources into providing the space and technology to facilitate
new workspace formats. 7.6 Aled asked for an update on the long-term
lease arrangements for the Tŷ Hywel building, and suggested the need for
an options paper when the lease was reviewed, Dave advised that exploratory
discussions would begin with the landlord in the coming months.
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Update on planning for the May 2021 Senedd elections Minutes: 8.1 The
Chair welcomed Siwan Davies and Sulafa Thomas to the meeting. Siwan referred
the Committee to the updates provided in the Commission’s Corporate Risk Register
and provided a further update on the legislative position, outlining the rapid
passage of the Government Emergency Bill through its various stages and the
implications of this for the Commission. The Bill, which was awaiting Royal
Assent for it to become enacted as the Elections Wales (Coronavirus) Act 2021
would provide powers for the Llywydd to move the date of the Senedd Elections
by up to six months should this be necessary to protect public health. It would
also shorten the formal dissolution period to one week. 8.2 Siwan
described the agreement that this formal one week dissolution period would be
preceded by a three week pre-dissolution period. During this four week period,
which would be known as the ‘election period’, the only Senedd business to be
conducted would be to debate and approve proposed changes to the date of the
election or for matters of public health relating to Coronavirus. She added
that normal dissolution rules, including those around use of Senedd resource,
would apply during this four week election period. Dissolution guidance for
Members of the Senedd and for Commission staff was being updated and would be
issued in the coming days. 8.3 Sulafa
described the practical steps being taken to update and issue election period guidance,
and the plans being finalised for the start of the Sixth Senedd. This included
plans for virtual or physical oath taking in line with public health
guidelines, providing access to IT equipment and other resources, and setting
up offices for new and returning Members. Sulafa explained that some IT
equipment for new Members was being purchased early to mitigate the potential
risks around procurement delays relating to the end of the EU Transition
period. 8.4 Sulafa
advised that plans were also being drawn up for the various forms in which the
official opening ceremony might be conducted depending on the lockdown
restrictions. A detailed programme of induction was also being finalised which,
in the early days, would focus on providing clarity on rules and Members’
statutory and most significant responsibilities. Discussions were also
underway, including with the Llywydd, the Commission and the (Committee)
Chair’s Forum, around the end of Fifth Senedd in terms of legacy reporting. 8.5 Sulafa
added that the process for changing the date of the election and the thresholds
for doing so were also being considered. Budget implications of any changes
were also being monitored. In response to questions from the Committee, Siwan
advised that it would be the First Minister proposing a change to the date of
the election based on advice from Public Health Wales and the Chief Medical
Officer. 8.6 The Chair thanked Siwan and Sulafa for their comprehensive updates and noted the rigorous and well-developed plans in place. He also noted that the focus for the Committee would be on regularity and propriety. Committee members also noted the ... view the full minutes text for item 10. |
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Corporate Risk Minutes: 9.1 Dave
presented this item noting that the Corporate Risk Register had been reviewed
by Executive Board on 28 January. He highlighted that, due to the on-going lockdown
restrictions the likelihood rating on the Coronavirus risk was increased from
medium to high. The Corporate Capacity risk had also been re-escalated to a
corporate level in recognition of the ongoing significant pressures on capacity
due to the pandemic and increased workloads, including around the Emergency
Bill and preparing for an Election. 9.2 The
Committee welcomed this comprehensive summary and with the pace of the
vaccination programme rollout, they hoped to see the Coronavirus risk moving in
a downward direction in the coming months.
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Critical examination of one identified or emerging risk - Cyber Security (combined with the twice yearly update) Minutes: 10.1 The
Chair welcomed Mark Nielson, Jamie Hancock and Tim Bernat to the meeting and
invited them to outline the details of their update on cyber-security. 10.2 Mark
shared a detailed description of the work his team had undertaken since the
last update and where they would concentrate their efforts in the future. He
reported that there had been a significant rise in phishing attacks during the
pandemic and the main source of the malicious intent remained with emails. His
team had been working closely with Microsoft to enhance the security
arrangements and parameters in place. A
system had been put in place to assist recovery from any cyber-attacks and a
new zero trust model was being implemented. 10.3 The
training of staff remained a priority for his team and an internal audit
scheduled for later in 2021 would test the core resilience of the backup
systems in place. He was confident that his team were sufficiently resourced to
perform the tasks required of them currently. 10.4 The
Committee then questioned the location of data storage of some
applications. Mark confirmed that not
all of the data was in the UK but it was all held within the EU. Discussions had commenced around ensuring
data remained in the UK. Previous concerns had been raised about the
organisation’s reliance on Cloud service. The Committee appreciated the level
of flexibility the Cloud offered but it remained an implicit point of failure. 10.5 Mark
and Dave noted the concerns raised regarding Cloud services, but noted that the
transition to remote working would have been extremely problematic had they not
moved to the Office365 environment some years ago. Mark was aware that some
organisations had experienced significant problems as a result of trying to
implement a Cloud service model during the pandemic. Single points of failure
were inevitable and, whilst the failure of third parties was out of the
Commission’s control, mitigation would remain their focus in the future. 10.6 The
Committee thanked and congratulated Mark and his team for their efforts during
these unprecedented times. The fact that there had been no major failings since
the whole organisation had been working remotely since March 2020 was a
tremendous achievement. |
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Finance Update Minutes: 11.1 Nia
Morgan outlined the 2020-21 corporate financial target was to deliver an
unqualified audit report and an end of year operational out-turn in the range of
0% to 1.5% of the approved operational budget. She confirmed that the forecast
out-turn position at the end of January was well within this target at 0.4% of
the approved operational budget. As the underspend remained tight, Executive
Board and Leadership team would continue to assess project resource requests
with a view to maintaining the low level of underspend until the end of the
year. The piloting of different work space had been an additional unforeseen
area of spend and it would be an item of expenditure budgeted for in future
years, if the pilot was successful. 11.2 The
Public Accounts Committee recommended that the Senedd Commission remove any
future KPIs that set to minimise under expenditure, and focus instead on using
financial resources as efficiently as possible. Work would be undertaken during
2021-22 to develop proposals to discuss with the Commission appropriate
corporate financial targets for the Sixth Senedd. 11.3 A
second Supplementary Budget was approved by the Commission in December. As
noted in the November meeting, part of this second Supplementary Budget was to
increase the Annually Managed Expenditure (AME) budget from £1.6 million to
£2.0 million to reflect the Actuary’s estimate of the increase in Members’
Pension finance costs. 11.4 Nia
then moved onto 2021-22 budget which related to the first year of the Sixth
Senedd that would be overseen by a new Commission elected in 2021. With the
delay to the implementation of International Financial Reporting Standard
(IFRS) 16 (Leases) due to the impact of Covid-19 the 2021-22 budget had been
presented without any IFRS 16 data. Further details on this can be found in
paragraph 12.2. 11.5 The
Committee thanked Nia for this update and noted the well-deserved praise and
recognition from the Public Accounts Committee. The work undertaken to present
the future budget was exemplary and Nia agreed to share information on any
savings or additional spend due to the pandemic, with the Committee in due
course. Actions ·
Nia
to share analysis of spend and savings in relation to Covid with ARAC at year
end. |
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Review of accounting policies Minutes: 12.1 Nia
presented this paper which outlined the annual review of accounting policies to
ensure their continued relevance in supporting Senedd business. The Finance team
used the latest information available from HM Treasury and worked with services
across the Commission, identifying any significant changes. Areas reviewed
included external changes such as accounting standard changes, internal
business changes and the Audit Wales external audit report and management
letter. 12.2 Although
the review was on-going, there were no expected changes to the accounting
standards that would need reflecting in the accounting policies applied by the
Commission for 2020-21, apart from the International Financial Reporting
Standard (IFRS) 16. Following a number of delays, HM Treasury confirmed in
November 2020 that the Financial Reporting Advisory Board had agreed that there
would be no mandatory implementation of IFRS 16 from 1 April 2021. Instead, the
effective date would now be 1 April 2022. This further delay to its
implementation will mean that IFRS 16 will not impact on the Commission’s
budget until 2022-23. The Commission decided not to adopt IFRS early (in
2021-22). Subject to further guidance from HM Treasury, the impact will be
reflected in the Commission’s Draft Budget for 2022-23 or its first
Supplementary Budget for 2022-23. 12.3 The
Committee thanked Nia and her team for their detailed review. He suggested that
discussions with Audit Wales might be useful to minimise duplication of effort
across Welsh public sector organisations for analysing changes to accounting
policies and the Financial Reporting Manual (FReM). |
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Feedback on discussions at the Commission's Remuneration, Engagement and Workforce Advisory Committee (REWAC) Minutes: 13.1 Ann
Beynon, as member of the Commission’s Remuneration, Engagement and Workforce
Advisory Committee (REWAC) welcomed this opportunity to feedback on the last
meeting held on 30 November 2020. She reported
that the response rate of the Pulse survey, held in October had increased, but
the uptake of the Dignity and Respect survey by Members of the Senedd was very
low. 13.2 REWAC
had discussed ways of improving daily communications and how the start of a new
Senedd term would be a great opportunity to promote policies, and refresh
training and guidance. Ann referred to a report into journalism in Wales and
discussions at REWAC focusing on how messages from and about the Senedd could
be disseminated wider, whilst upholding our separation from the Welsh
Government. 13.3 Arwyn
updated members on the paper being prepared for Commissioners on sustaining
journalism in Wales, building on the work of the Digital Taskforce whose
reported was published in 2017. 13.4 The
Chair thanked Ann for this feedback and would welcome feedback at future
meetings. |
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Feedback on ARAC Chairs' Forum Minutes: 14.1 Unfortunately,
due to the pandemic, the Chair confirmed that there had been no Chairs’ forum
events to report on. |
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Consider ways in which the Annual Report and Accounts can be used to promote the work of the Senedd throughout the year Minutes: 15.1 This
item would be discussed out of Committee. |
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Forward work programme Minutes: 16.1 The
Committee had no changes to make to the Committee’s work programme. |
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Departure Summary Minutes: 17.1 There
were no comments or questions on the departures. Next
meeting is scheduled for 23 April 2021. |