Minutes of the Audit and Risk Committee – February 2024

Present

• Vanessa Davies, Non-Executive Director (Chair)
• David Watt, Non-Executive Director

In attendance

• John Logue, COPFS Crown Agent
• Keith Dargie, COPFS Chief Digital Officer and Head of Business Services
• Marlene Anderson, COPFS Director of Finance and Procurement
• Jim Montgomery, Audit Manager SG Internal Audit Directorate
• Dougie Shepherd, Audit Manager SG Internal Audit Directorate
• William Wilkie, Senior Auditor, SG Internal Audit Directorate
• Rachel Browne, Audit Director, Audit Scotland
• Zahra Mahmood, Senior Audit Manager, Audit Scotland
• Ian Palmer, COPFS (Secretariat)

VD (Chair) welcomed everyone.

VD (Chair) on behalf of the Committee acknowledged that this will be the first meeting of ARC attended by JL since his appointment as Crown Agent.

Two new attendees were introduced:

Rachel Browne, who replaces Brian Howarth following his retirement as Audit Scotland Audit Director.

Dougie Shepherd will represent DIAA as Audit Manger when Jim Montgomery retires from that role. 

There were no declarations of interest expressed.

VD (Chair) KD and MA (with Secretariat present) had met earlier in the month to review the format and scope of the COPFS Internal Audit action tracker.

The minutes of the meeting held on 15 November 2023 were approved.

ARC Paper 3 (2024) was noted and the following agreed:

Action 22/23 (Assess RAG ratings of Mortuary Pathology Gateway Review) ARC Paper 3e (2024) was noted.

Decision

Gateway Review can be closed on ARC Meeting Tracker but will remain on the External Audit tracker for time being.

Further Action:

Further to discussion MA to recommend to the Post Mortems and Pathology Board further options for pathologist recruitment to include liaison with General Medical Council.

Action 23/23 (Hold meeting to review content and scope of Internal Audit Tracker).

Decision

After discussion, ARC approved the format, content, and methodology of the revised COPFS Internal Audit tracker template which is to be adopted for future reports to the Committee. Action completed and can be removed from tracker.

Action 24/23 (Discuss Cyber Resilience)

Decision

This topic is covered in ARC Paper 7(b) (Internal Audit Plan 2024-25)  so can be removed from the tracker and any subsequent related actions will be recorded separately.

Action 25/23 (To further discuss 2024-25 Internal Audit Plan).

Decision

Action completed and can be removed from tracker. Any subsequent actions in this regard will be recorded separately.

Action 26/23 (Discuss COPFS Estates Strategy).

Decision

Action completed and can be removed from tracker. Any subsequent actions in this regard will be recorded separately.

Action 27/23 (Assurance Mapping Framework Group 3.3 – Review update submitted re Information including Data Loss).

Decision

After considering ARC Paper 3b, the Committee recommended this action be further continued off table to enable a reassessment of the methodology regarding completion of section 3.3.

Further Action

VD (Chair) DW and KD to further discuss these issues offline.

Action 28/23 (Send Internal Audit a draft copy of revised Corporate Risk Register).

Decision

Action completed and can be removed from tracker.

ARC Paper 4a (2024) was agreed.

In response to a question from VD (Chair), WW confirmed it is intended that DIAA will conduct a follow up report in relation to audit actions assigned to the NUHU (National Ultimus Haeres Unit).

(b) External Audit Tracker

ARC Paper 4b (2024) was noted. General discussion followed.

Decision

After discussion, it was decided that the recommendation relating to Value for Money – Pathology, post-mortem and mortuary contracts, should remain on the tracker until the completion of the 2023-24 audit report.

• In relation to the 2023-24 budget, COPFS has succeeded in securing supplementary in year funding from Scottish Government to tackle inflationary pressures and the additional pay award.
• Scenario Planning, Workforce Planning analysis and trends, financial impacts and planning and trends continue to be utilised. Departmental budget holders attended a comprehensive  workshop on 10^th January 2024 to scrutinise forecasts to ensure accuracy and preparedness to meet any challenges.
• Additional capital investment has been secured to support the departments move to digital transformation programmes, including development of the next generation casework systems and processes. Planning for this vital piece of work will be completed over Q4 2023-24 to enable delivery phase to commence from Q1 2024-25 (delivery is multi-year in line with Scottish Government funding allocations). 
• The exercise to transfer some staff between Local Court and HC/SCG has almost concluded. A small number of transfers remain to be finalised for mostly logistical/geographic reasons. Liaison between the functions continues. A lessons learned paper from experiences gained during the exercise is being developed.
• General discussion in relation to staffing controls and levels. ARC expressed some concern at the significant number of posts/vacancies that will transfer over to FY 2024-25
• General update in relation to overtime working and associated costs, Public Sector Reform and Capital Spending Review.
• ARC looking for COPFS to conduct a further Deep Dive analysis in relation to Risk 1 the Corporate Risk Register - Insufficient resource to enable COPFS to meet its statutory and policy obligations and meet public expectations.
• Liaison work continues between Finance and Departmental budget holders to discuss non staffing requirements for FY 2024-25. Meetings are being held for this purpose. Budget allocations are scheduled to be discussed at the next Resources Committee and Executive Board meetings.

RB gave an overview of ARC Paper 6 (2024) COPFS Annual Audit Plan 2023-4.

The Committee noted the paper and agreed the audit plan timetable and audit fee for    2023-4.

The meeting confirmed that no instances of fraud, suspected fraud or any other financial irregularities had come to light.

During the general discussion that followed the following points arose:

• The scope of the audit approach other than journals/ledger information and interrogation tools used in determining audit samples.
• Audit of payroll assurance and the operation of related controls
• Audit Quality – Transparency report – can this be shared. AS under no obligation but will check if published report and send ARC a link. Update: Report link issued to meeting group.

WW gave an overview of ARC Paper 7 (2024) - (Internal Audit Progress update) 

The Committee noted the paper.

Highlights included:

• Internal Audit Plan for 2023-24 is on track to be completed by 31 March 2024.
• Fieldwork has commenced on the Business Planning review. Further updates will be provided at the next ARC meeting.
• A review of fees and charging is to take place during 2024-25 in consultation with all clients, with a view to implementing new arrangements from 2025-26.
• Portfolio, Programme & Project Assurance (PPPA) engagement update report is to be presented at a future ARC meeting.

ARC Paper 7A (2024) DIAA – COPFS Audit Plan 2024-25 was presented.

There was a lengthy discussion over the methodology and allocation of audit resource and timings. It was agreed that the plan required continuing scrutiny to ensure it remained fit for purpose.

ARC Paper 7B (2024) COPFS Estates Strategy and Agile Working Policy 2023-4 Paper

The Committee noted the paper.

General discussion focussed on the possible inclusion of Estates issues on the Corporate Risk Register, the proposed timing allocated to achieving recommendations and the detail of the management response. The Committee suggested that COPFS consider inviting function managers to attend ARC meetings to speak to specific actions taken to achieve recommendations.

JL gave a verbal update to the Committee. This included:

• The COPFS Review of Structure and Governance has concluded. A draft report was circulated to senior colleagues in December 2023, and it is intended that the latest version will be presented at the February Executive Board.
• Good progress is being made with the work of CDIT (Covid Death Investigation Team) and their continuing engagement with the families and representatives of the deceased.
• General update provided in relation to serious and high-profile investigations.

JL presented ARC Paper 8 (2024) and gave a general overview.

The Committee noted the paper.

DECISION

It was agreed that Item 4 on the tracker can be marked as completed and removed.

The Committee noted ARC Paper 9 (2024) with the following observations:

• Group 4.2 (Equality and Diversity) requires more details/evidence of achievements.
• Group 4.3 (Health and Safety) (Line 4) in future, needs to detail frequency of ad hoc H+S inspections.

DW gave an overview of

ARC Paper 10 (2024) (RMG chair update report)

Highlights included:

• There has been a good response in staff engagement with the “Let’s Talk about Risk” and associated materials  e- learning package. This has also been incorporated as part of induction training for new recruits to COPFS.
• Review of Corporate Risk Register ongoing.
• Update on review of Local Courts Risk Register and consideration being given to recording any impact of recent staff transfer exercise.

ARC Paper 10 A (2024) (RMG Meeting Minutes, January 2024)

The Committee noted the papers and general discussion followed.

• JM noted that it had been some time since the active version of the Corporate Risk Register had been presented to the ARC meeting group.

It was agreed that the undernoted agenda items would be considered after the meeting by email exchange amongst parties concerned.

ARC Paper 11 (2024) (COPFS ARC Terms of Reference Annual Review) and COPFS ARC Self-assessment returns.

This will be the last meeting of COPFS ARC attended by Jim Montgomery.

On behalf of the meeting group, VD (Chair), thanked Jim for his valuable contribution to the work of the Committee, his insightful challenges coupled with good humour and wished him well for a long and happy retirement. The group echoed these sentiments.

The Committee will next meet on May 8, 2024 at 11 am in Conference Room 1 Crown Office.