Minutes of the Audit and Risk Committee – July 2019

Present

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

In attendance

• David Harvie, Crown Agent and Chief Executive
• Ian Walford, Deputy Chief Executive
• Mark Howells, COPFS Director of Finance & Procurement (DFP)
• Marlene Anderson, Head of Financial and Systems Accounting
• Douglas Taylor, Head of Management Accounting and Planning
• Robert Sandeman, Silicitor to QLTR
• Pamela Wilkinson, Senior Internal Audit Manager, SG Internal Audit
• Gillian Woolman, Audit Director, Audit Scotland
• Esther Scoburgh, Senior Audit Manager, Audit Scotland
• Grietje Menger, Senior Auditor, Audit Scotland
• Gordon McAllister, Senior Auditor, Audit Scotland
• Paulina Mejer, COPFS Secretariat

Apologies

• William Wilkie, Audit Manager, SG Internal Audit
• Sharon Davies, COPFS Senior Management Accountant

The Chair welcomed everyone to the meeting and passed on the apologies of William Wilkie and Sharon Davies.

David Watt (Non-Executive Director) reminded the committee of his declared interest in relation to membership of the Scottish Parliament Corporate Body Advisory Audit Board.

Non-Executive Directors (NXDs) had a discussion with the External Audit team prior to the meeting.

The chair noted that this paper had been considered at the May meeting and was presented again here for completeness. It was duly noted.

The Audit Director presented the draft report, which provided a comprehensive, positive in nature, review of the COPFS IT department.

She advised that the report highlighted that digitalisation was underway and the current position was deemed to be a good foundation for further progress.

The Committee noted the draft report, thanking Audit Scotland for its comprehensiveness, acknowledged the usefulness of the report for the development of the organisation and looked forward to the report being finalised.

DFP recorded his gratitude to the finance team for the work that they had done to complete the COPFS accounts in addition to their normal day to day work. The Head of Financial and Systems Accounting presented the accounts,
outlined key facts and confirmed that the COPFS accounts are prepared on an
accruals basis.

Following discussion on details of the Annual Accounts, the Committee approved them and, after hearing from the external auditors, agreed to recommend them to the Accountable Officer (the Crown Agent and Chief Executive) to sign.

The Committee noted the contents of the Letter of Representation and requested that, in future years, it would be helpful to receive reports ahead of final signing which provide background support for assurance statements
contained in the Letter.

DFP gave credit to Sharon Davies for completing the accounts; unfortunately Sharon was not available to attend the meeting. DFP confirmed that the QLTR accounts are produced on a cash basis and proceeded to outline the key facts shown in the accounts.

The Committee were asked to review and approve the Annual Report and Accounts for the year ended 31 March 2019 prior to them being signed.

The Committee approved the QLTR 2018-19 accounts and, after hearing from the external auditors, recommended them to the Accountable Officer (Solicitor to QLTR) to sign.

The Committee noted the contents of the Letter of Representation.

The Audit Scotland Audit Director presented this item, highlighting the significant points within the report requiring special attention of the Committee.

Annual Audit Report showed the financial statements of COPFS gave a true and fair view of the state of affairs of COPFS as at 31 March 2019. They were properly prepared in accordance with the financial framework.

The expenditure and income in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers.

The audited part of the remuneration and staff report, performance report and governance statement were all consistent with the financial statements and properly prepared in accordance with the relevant legislation and directions made by the Scottish Ministers.

The Committee noted the Annual Audit Report contents, and the draft covering letter, and thanked Audit Scotland for their work on producing such comprehensive and constructive report.

The Audit Scotland Audit Director presented this item, highlighting the significant points within the report requiring special attention of the Committee.

Annual Audit Report showed the financial statements of QLTR gave a true and fair view of the state of affairs of QLTR as at 31 March 2019. They were properly prepared in accordance with the financial framework and that the financial statements properly present the receipts and payments for the year ended 31 March 2019 and the balances held at that date.

Receipts and payments were incurred or applied in accordance with applicable enactments and guidance.

The audited part of the remuneration and staff report, performance report and governance statement were all consistent with the financial statements.

The Committee noted the Annual Audit Report contents, and the draft covering letter, and thanked Audit Scotland for their work on producing such comprehensive and constructive report.

The Committee formally approved the accounts of both the COPFS and the QLTR and recommended them to the Accountable Officers for signing.

The Chair thanked everyone, in COPFS, QLTR and the audit teams, for their input and for the hard work of all involved to achieve the financial outcome And the delivery of the audit process.

The next meeting will be on 21st August 2019.