Agenda and minutes
Venue: MS Teams
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 noted apologies had been received from Suzy Davies MS. 1.2 He also thanked and praised officials for
the extraordinary effort in producing the papers contained in the pack as well
as the papers circulated out of committee.
1.3 No interests were declared. |
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Minutes of 27 April, actions and matters arising Minutes: ARAC (03-20) Paper 1 - Minutes of 27 April 2020 ARAC (03-20) Paper 2 – Summary of actions 2.1 The minutes of the 27 April meeting were agreed. 2.2 The Chair provided an update on the action around the planning for an Executive Board meeting with Independent Advisers on the strategy for the sixth Senedd. Discussions had been held with Manon Antoniazzi, Dave Tosh and the Chair of the Commission’s Remuneration, Engagement and Workforce Advisory Committee (REWAC) and efforts were ongoing to find a suitable date for a meeting. Ann Beynon encouraged officials to consider external factors during that meeting and the Chair agreed that consideration should be given to engaging with relevant external people in due course. 2.3 The Chair recommended that action point 2.3 (review of cyber security) should be marked as complete as Gareth Watts had confirmed that ICT would soon refresh their cyber security strategy. 2.4 In relation to the action around the revised communication strategy for the name change project, and to supplement a paper circulated out of committee, Arwyn Jones provided an update to the Committee. Due to the ongoing Coronavirus pandemic, the next stage of the strategy was being planned for the autumn and would align with awareness-raising around votes at 16 and the 2021 Senedd elections. Results of polling with focus groups would be used to inform the strategy. Arwyn added that colleagues were liaising closely with the Welsh Government and the Electoral Commission to co-ordinate engagement activity. Committee members recommended that Commission officials continue to pursue formal meetings with both organisations as a matter of priority and the Chair asked for regular updates from officials. In the meantime, the restructuring of the communications team would go ahead and this would include the appointment of a social media communications lead and creation of a social media team from among the existing staff. 2.5 Ann Beynon provided feedback to the Committee on discussions at the recent meeting of the Commission’s Remuneration, Engagement and Workforce Advisory Committee (REWAC). The results of a recent PULSE survey, where staff were asked to comment on their physical and mental wellbeing during lockdown, were discussed and the Committee had noted the mitigation in place in terms of policies and that staff felt supported. The Diversity and Inclusion Annual Report was also considered, with detailed discussions around the Commission’s disability and BAME statistics. 2.6 Committee members congratulated the Senedd Commission on being awarded Platinum Investors in People (IIP) status. Action • (2.5) Regular item to be included under matters arising for Ann to provide feedback on discussions at REWAC |
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Governance and Assurance Update Report Minutes: ARAC (03-20) Paper 3 –
G&A update report ARAC (03-20) Paper 3
Annex A - IASAB 3.1 Gareth Watts introduced his report and
described his continued involvement in the Commission’s response to the
Covid-19 pandemic. He was now also the lead in the governance and assurance workstream of plans
to return to the estate. Despite the disruption to his original internal audit
plans caused by these commitments, Gareth provided assurance to the Committee
by outlining how his team had maintained a sharp focus on governance and
assurance. He described how, for example they had continued to ensure that: the
risk management processes remained robust; Freedom of Information requests were
replied to within deadlines; colleagues were supported on producing privacy
notices and data protection queries; and that the Annual Governance Statement
and Annual Report narrative sections had been completed to a very high standard
and to challenging deadlines. 3.2 Gareth added that he would be engaging with
TIAA (out-sourced internal audit partners) to identify areas that could be
audited ‘virtually’ and would update the Committee accordingly. 3.3 Gareth referred to the information paper on
‘Conformance with the PSIAS during the coronavirus pandemic’ which had been
recently produced by the Internal Audit Standards Advisory Board, and which was
tabled at Annex A to this paper, and advised that he would share with the
Committee a further information paper on ‘how internal auditors are doing
things differently during the pandemic’ which was due to be issued shortly. Action (3.3) Gareth Watts
to circulate additional IASAB/CIPFA information paper when issued. |
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External Audit opinion for the financial year 2019-20 Minutes: ARAC (03-20) Paper 4
ISA 260 Report 4.1 Gareth Lucey presented the ISA 260 report
to the Committee, confirming their intention to issue an unqualified audit
opinion on this year’s accounts. He added that this had been a very clean audit
with no misstatements identified or significant corrections to bring to the
attention of the Committee. They had only identified minor presentational
amendments to disclosures within the Annual Report and Accounts in relation to
the valuation of assets which had been taken on board. 4.2 Gareth explained that the table of Covid-19
impacts included in the Audit of Accounts (ISA 260) Report was a standard item
for all audits. There was no significant impact on the accounts, although the
report highlighted a comment by the property valuer indicating material
uncertainty around the asset values of the Senedd buildings. To ensure
transparency (and consistency with other public sector bodies facing similar
issues) the Commission has included the valuer’s comments below Note 4 of the
financial statements. Gareth explained that Audit Wales have also included an
emphasis of matter paragraph within the Assistant Auditor General’s audit
certificate to draw attention to this. However, the 2019-20 audit opinion is
unaffected by this matter. 4.3 The audit certificate for 2019-20 also
included a new disclaimer around assurance over ‘other information’ in the
Annual Report. Gareth clarified that other information comprises the
information included in the annual report other than the financial statements.
The disclaimer states that the audit opinion on the financial statements does
not cover the other information. However, Gareth did confirm that the Audit
Wales team had reviewed the Remuneration Report as part of its work and was
satisfied that the other information in the Annual Report was consistent with
the financial statements. 4.4 The Audit Wales team thanked the Senedd
Commission Finance team for their hard work in ensuring such a clean audit and
smooth and straightforward audit process. They also noted that, because they
were able to adapt some processes, there had been no significant negative
impact as a result of the Covid-19 pandemic. 4.5 Nia Morgan also wished to record her thanks
to her team for the incredible effort and additional hours they had worked to
ensure the audit work was completed to the original timescales. She also
thanked the Audit Wales team, acknowledging how hard both teams had worked to
carry out such a thorough audit. 4.6 Committee members were impressed by how
efficiently the audit work had been carried out, particularly given the
Covid-19 situation. They asked how lesson learned from this experience,
particularly in relation to the challenges and opportunities presented by
working remotely would be captured and built into the approach for future
audits. 4.7 Ann-Marie Harkin explained that Audit Wales would be liaising with other audit bodies as part of their internal learning mechanisms and this would include consideration of how best practice could be shared more widely across both public and private sector auditors. This would also include discussions with Nia and her ... view the full minutes text for item 4. |
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Commission's Annual Report and Statement of Accounts 2019-20 Minutes: ARAC (03-20) Paper 5 – Annual Report and Accounts 2019-20 ARAC (03-20) Paper 5 Annex A – Annual Report and Accounts
2019-20 5.1 The Committee noted how impressed they were
with the format, content and accuracy of the Annual Report and Accounts,
especially as the timescale for its production had been brought forward this
year, and given the disruption caused by the Covid-19 pandemic. They were also
impressed with the quality of its production, especially given the small team
involved. 5.2 The Committee recommended to the Accounting
Officer that the financial statements for 2019-20 should be signed. The
Assistant Auditor General would add his electronic signature and the report
would be laid and published. 5.3 Committee members asked about possible
media attention following publication of the report and how best to publicise
the work of the Senedd. In response, Arwyn advised that discussions were
already being held with the media to highlight positive stories, such as
significant reductions in our carbon footprint, but acknowledged the
difficulties in capturing the interest of the public with the focus still
primarily on Covid-19 related stories. 5.4 The Chair thanked everyone for their
contributions and encouraged officials consider how to use the report
throughout the year to promote and highlight the work of the Senedd. It was
agreed that the Committee would also return to this in the autumn. Action (5.4) ARAC to
review in the autumn, ways in which the Annual Report and Accounts can be used
to promote the work of the Senedd throughout the year. |
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Commission's Corporate Risk Report Minutes: ARAC (03-20) Paper 6 –
Corporate Risks ARAC (03-20) Paper 6
Annex A – Corporate Risk Summary Report ARAC (03-20) Paper 6
Annex B - Corporate Risks Plotted 6.1 Dave Tosh presented this item and described
the efforts that had gone into the ongoing mitigation of the Commission’s
corporate risks. Whilst this had not resulted in any movement in the risk
ratings, the Annex showing the risks plotted on a matrix demonstrated the
direction of travel based on the controls in place. The Committee welcomed the
detailed updates provided in the documentation and asked for further details on
some of the controls and further mitigating action. 6.2 In response to specific questions around
video conferencing, Manon and Dave described the pros and cons of using Zoom
and Microsoft Teams and outlined how assessments were made to balance security
and data protection considerations with requirements of official languages
legislation, which they did on a case by case basis. Based on a risk
assessment, the decision had been made to use Zoom, which facilitated
simultaneous translation, for public meetings where privacy and security were
less of an issue (as they were broadcast) and to use Microsoft Teams for
private and internal meetings as this was more secure. Unfortunately, Microsoft
were not able to offer a solution on the provision of simultaneous translation.
Manon advised that the Welsh Language Commissioner was supportive of the
Senedd’s use of Zoom and had cited the Senedd as adopting best practice. 6.3 The Commission assured the Committee that
they would be keeping abreast of developments in existing video conferencing
applications to accommodate simultaneous translation functionality and would
continue to explore alternatives. 6.4 In relation to risks around Senedd reform,
the Committee discussed issues around the timing of raising awareness of votes
at 16 in collaboration with the Welsh Government and the Electoral Commission. 6.5 Aled expressed concern that, as stated in
the report, groups consisting of officials from relevant organisations dealing
with electoral changes (including the Senedd Commission, Welsh Government and
the Electoral Commission) had not met since last year and asked how this was
being addressed. Arwyn confirmed that informal arrangements were in place to
take the work on electoral changes forward and these were working well in
practice. [A meeting of one of these group was expected later in the
summer]. 6.6 There was also a discussion around the
impact of any delays to the Electoral Commission Financing and Accountability
measures (around the Electoral Commission becoming accountable to the Senedd)
on preparations for, and promotion of the 2021 elections. Manon advised that a
resolution to this was imminent and interim arrangements were in place. The
Chair asked for an update on this at the next meeting. 6.7 In response to questions relating to risks
around Brexit and UK constitutional change, particularly if no deal had been
agreed, the Chair referred Committee members to the material produced by the
Commission’s Research Service which included regular blogs around Brexit and
the impact on the Senedd. 6.8 Committee ... view the full minutes text for item 6. |
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Critical examination of a risk of issue - the Commission's response to Coronavirus (Covid-19) Minutes: ARAC (03-20) Paper 7 – Emerging from Lockdown 7.1 Dave presented the paper, which provided an update on the Commission’s arrangements in response to the Covid-19 pandemic as well as setting out the aims, principles and working assumptions that would guide the preparations for a return to the estate (RTE). In addition, Dave outlined the streams of work being undertaking to ensure that when required to do so, RTE could happen effectively and safely and that learning and lessons for the future were captured. 7.2 The Committee heard that the Commission had shown great adaptability in providing virtual Plenary sessions over the lockdown period. As part of the RTE work, the prospect of hybrid Plenary sessions made up of a percentage of Members in physical attendance and others remotely participating was being considered. Alongside this, consideration was being given to implementing a bespoke voting application, which had been developed in-house and would enable Members of the Senedd to cast votes remotely. 7.3 Committee Chairs continued to provide positive feedback on the ability to conduct virtual meetings, with business scheduled until the end of term. Business Committee were due to consider options for conducting essential Senedd business during the summer recess. Alongside this, physical work to get the estate ready for occupancy had taken place, including the installation of clear signage for staff and increased numbers of sanitisation points throughout the estate. 7.4 Underpinning this work was ensuring that staff, Members of the Senedd and their staff remained regularly updated. Arwyn informed the Committee that an internal staff communications group, involving members of the Commission’s Leadership Team, had been created and which met on a daily basis to coordinate communications and messaging. A recent virtual all staff session hosted by Manon and the directors had received positive feedback, with a high staff attendance figure. With the RTE proposals taking shape, communications activity would increase to help ease any staff anxiety. 7.5 Gareth informed the Committee that, as Head of Governance, his role was to continue to ensure that governance principles were being adhered to throughout the decision making process. He added that he was also carrying out a piece of work to capture lessons learned across each of the other workstreams. 7.6 In response to questions from Ann around identifying those members of staff who might require additional support before returning to the estate, Dave assured the Committee that work had taken place on identifying those staff who may require additional support in the transition back to the workplace. 7.7 The Chair thanked Dave for the thorough paper and acknowledged the scale of the challenge ahead for the Commission’s Executive Board in ensuring that any potential return to the estate is managed effectively, but was reassured by the update provided. |
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Committee's Annual Report to the Commission and Accounting Officer Minutes: ARAC (03-20) Paper 8 –
Audit and Risk Assurance Committee Annual report 2019-20 8.1 The Chair provided an overview of the
Committee’s 2019-20 Annual Report, which outlined the Committee’s work in
relation to the Commission’s governance arrangements, risk management, internal
control and assurance framework. 8.2 In responding to invitations to comment,
Ann suggested that the report make further reference to certain external
factors such as climate change, the economic downturn and social mobility, with
links to the Commission’s diversity aspirations. 8.3 The Committee approved the report, subject
to suggested amendments. The Chair would consider areas to highlight when
presenting the report to the Commission at its July meeting. Action (8.2) Chair to
discuss additions to the Annual Report relating to external factors such as
climate change, economic downturn and social mobility (linking to BAME
aspirations) with the clerking team. |
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Results of the Committee's effectiveness survey Minutes: ARAC (03-20) Paper 9 – Summary of results from the 2020
effectiveness survey 9.1 The Chair introduced the paper, which provided a summary and analysis of the latest Audit and Risk Assurance Committee Effectiveness Survey. 9.2 The Committee heard that results were positive across each of the five areas measured, namely: Composition, Establishment and Duties; Administrative Arrangements; Internal Control and Risk Management; The Role of Audit; and Annual Accounts. 9.3 Following discussion, the following comments were raised for the Chair to address with the clerking team: • improving ARAC’s awareness of Commission work, including sharing the Commission’s work programme with ARAC; • incorporating flexible feedback into future effectiveness surveys; and • a review of work from the current Senedd term to inform the Committee’s work programme for the next Senedd. The Chair would arrange a separate meeting with members to review the work of the Committee before the Autumn meeting. 9.4 The Committee thanked the officials for the thorough analysis of the results. Action • (9.4) The Chair to discuss feedback from survey results with the clerking team. • (9.4) Share Commission’s work programme with ARAC members. |
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Commission's approach to election planning Minutes: ARAC
(03-20) Paper 10 – Planning for the 2021 Senedd Elections 10.1 Sulafa Thomas, Head of Commission and Member
Support, introduced the paper and provided the Committee with an outline of the
Commission’s approach to preparations for the next Senedd elections in May
2021. The paper included an overview of the risks to the Senedd’s reputation
involving dissolution of the Fifth Senedd and its transition to the Sixth
Senedd. 10.2 In responding to questions around the
potential turnover of Members, Sulafa explained that preparations would be
broad enough to cope with whatever happened, and explained that the turnover
levels had been quite high in previous elections. In relation to the recording
of the Commission’s physical assets during the transition period, Sulafa
informed the Committee that an asset register was kept by the Members Business
Support Team. Gareth also informed the Committee that an audit of fixed assets
had been scheduled in the 19-20 Audit Plan, however the timing of the audit
might change due to the Covid-19 pandemic. 10.3 In response to questions from Aled relating
to the budget details in the paper, Sulafa explained that staff costs relating
to the Royal Opening would be adjusted to reflect the different approach. Dave
Tosh explained that the costs associated with office reconfiguration related to
a need for more flexible and efficient use of office space to accommodate any
potential changes in political party configurations as a result of the
election. 10.4 The Committee discussed its role in the
election planning process and asked to be provided with updates as work
evolved, to provide assurance that risks relating to the election were being
suitably managed. 10.5 The Chair thanked Sulafa for the
comprehensive paper and thorough overview and indicated that further
discussions on the Commission’s approach to election planning work would take
place informally out of meeting, ahead of a formal discussion at the Autumn
meeting. Actions • (10.4) ARAC to receive regular updates
on Sixth Senedd election planning with a formal update at the autumn meeting. • (10.5) ARAC members to discuss election
planning informally and out of committee, to inform formal discussion at the
autumn meeting. |
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Any other business Minutes: 11.1 Ann asked
officials for an update on the proposals around attending a future Executive
Board meeting to discuss the strategy for the sixth Senedd. Officials indicated
a date was being arranged for the session to take place sometime in July. Next meeting is scheduled for 10 July 2020. |