Minutes of the Audit and Risk Committee – November 2022

Present

Members

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

In attendance

• John Logue Crown Agent (interim)
• Robert Sandeman - QLTR Accountable Officer
• Stephen McGowan - Deputy Crown Agent
• Lindsey Miller - Deputy Crown Agent
• Brian Howarth - Audit Director, Audit Scotland
• Keith Dargie - COPFS Chief Digital Officer and Head of Business Services
• William Wilkie - Senior Auditor, SG Internal Audit Directorate
• Steve Scott - Programme Manager Pathology, Toxicology and Mortuary Service
• Marlene Anderson - COPFS Director of Finance and Procurement
• Sharon Davies - COPFS Head of Management Accounting and Planning
• Ian Palmer - COPFS Secretariat

Apologies

• Jim Montgomery - Audit Manager, SG Internal Audit Directorate
• Zahra Mahmood - Senior Audit Manager, Audit Scotland

JL was welcomed to his first meeting of the group and congratulated on his recent promotion to the post of Interim Crown Agent.

BH was welcomed to his first meeting of the group.

In relation to any discussion at agenda item 12, (COPFS Forensic Pathology and Mortuary Services Procurement) VD advised the meeting that she is a member of the General Medical Council.

ARC members had held a brief discussion prior to the start of the meeting in relation to agenda timings.

The minutes of the meetings of ARC held on 6 July 2022 and 14 September 2022 were approved.

Action

Secretariat will arrange for the approved minutes to be published on COPFS website.

ARC Paper 44 (2022) Local Court Delivery Assurance Mapping update was noted and approved.

ARC Paper 45 (2022) IT Assurance Mapping update was noted.

The committee were of the view that the update did not contain sufficient detail in relation to the monitoring and review of controls to enable them to provide assurance.

Action:

KD to revise and resubmit update for February 2023 ARC.

Internal Audit Tracker

ARC Paper 45 (2022) was noted.

ARC observed that a number of action owners had postponed agreed implementation dates to the significant future. The committee had a concern that this could lead to slippage and a loss of impetus and purpose and asked that COPFS look at how progress against targets is being managed.

Action

KD to review tracker with a view to aligning its narrative with update information in relation to progress with agreed targets for implementing
recommendations.

It was agreed that the action table detailed on page 31 of the meeting pack (COVID - Impact on Staff Wellbeing and Morale) has been completed and can be removed from the tracker.

Following discussion it was agreed that Action 1 in the Strategic Relations and Communications section of the tracker can now be removed.

Action

Secretariat to update tracker to reflect agreed changes.

External Audit Tracker

ARC Paper 46 (2022) was noted and approved.

BS presented ARC Paper 47- 48 (2022) and gave an overview of its contents

Highlights included

• Workforce Planning Arrangements and Governance Review
• Ownerless Property Transfer Scheme
• HMRC/Revenue Scotland Engagement
• KLTR Risk Register

The Committee noted the paper and commended the authors for its comprehensive
nature. The KLTR Risk Register was also noted.

General discussion followed. ARC supported the formation of a more dedicated governance arrangement for the KLTR. Given the expanding portfolio of KLTR work, the Committee suggested that thought be given to the establishment of an additional ARC/KLTR meeting forum to facilitate further scrutiny and governance.

JL(CA) gave a general update. This included:

• COPFS remain on track for the publication of SG Budget on 15 December 2022
• Progress update in relation to Court Recovery programme and liaison with partner agencies.

SMG apologised for the late submission of meeting papers (ARC Paper 44c and 48) in relation to earlier agenda items.

He gave a general update in relation to a lessons learned review and ongoing liaison
with partner agencies.

Further discussion to take place as to how these updates should be conveyed to ARC in future.

SMcG presented ARC Paper 48 and gave the Committee a general overview on progress against HMIPs recommendations.

ARC noted the paper and suggested that it could be further enhanced by the addition of a RAG status indicator.

Work continues on how recommendation progress update reports in relation to other
HMIPS Reviews will be conveyed to ARC.

MA gave an overview of ARC Paper 49 (2022)
Highlights included:

• Annual Accounts for 2021-2022 have been laid before Parliament, published
  and are currently with a design company for professional presentation.
• The latest forecast for 2022-23 has been completed. A residual underspend of £4k has been identified.
• Liaison work continues with HOBMs, Finance Business Partners and Head of
  MAP to identify any potential counter inflationary measures through the scrutiny of business processes and non-staff costs.
• Overtime continues to be closely monitored and controlled.
• COPFS have been successful in securing additional in year funding from Scottish Government to set up a COVID Deaths Investigation Team (CDIT) with associated funding in the following 2 years.
• Bid for additional funding for the additional pressure faced through increased pay awards through cost of living above pay policy has been approved by SG.
• Resource Spending Review was published at the end of May 2022. Current position shows flat cash allocations until 2026-27.

ARC Paper 49A (National Fraud Initiative in Scotland 2022) was noted for the purposes of information only.

BH reported that he and his colleagues are involved in liaison work with COPFS and KLTR to facilitate the transfer to the new external audit team.

ARC welcomed progress.

WW presented ARC Paper 50 (2022) and gave a general overview.

The paper was noted.

RC Papers 50A 50B 50C 50D 50E were noted as being for information purposes only.

LM and SS joined the meeting to give an overview of ARC Paper 51 and 51A (2022)

ARC welcomed the detail of the report and noted progress.

A further update is to be presented to the COPFS Executive Board Meeting in December 2022 where ARC members will also be present.

MA presented ARC Paper 52 (2022)

After discussion the Committee approved the report.

In relation to Financial Management Assurance, it was agreed that a “deep dive” of the operation and management of controls could be scheduled for some point in Spring 2023.

ARC Papers 53A 53B 53C 53D (2022) were noted.

It was noted that this will be the last meeting of ARC attended by RT.

On behalf of the group, VD thanked Rob for his stalwart services as Chair and the valuable contribution he has made to the work of the Committee.

The meeting echoed these sentiments and wished Rob all the best for the future.

Wednesday 9 February 2023 at 11 am (via MS Teams)