Minutes of the Audit and Risk Committee – November 2024

Present

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

In attendance

• Keith Dargie, COPFS Head of Business Services
• Marlene Anderson, COPFS Director of Finance and Procurement
• Dougie Shepherd, DIAA Senior Internal Audit Manager
• William Wilkie, DIAA Internal Audit Manager
• Maggie Bruce – Audit Scotland, Senior Audit Manager
• Monica Habbo (DIAA observer)
• Ian Palmer, COPFS Finance and Procurement Team (Secretariat)

Apologies

• John Logue - COPFS Crown Agent
• Rachel Browne – Audit Director, Audit Scotland
• Zarah Mahmood  - Senior Auditor, Audit Scotland

VD (Chair) welcomed the group.

Apologies were noted.

There were no new Declarations of Interest tendered.

The Committee held a brief pre-meeting with representatives of Audit Scotland and DIAA. Matters discussed are included in the coverage of the substantive agenda items

ARC Meetings 2025

In response to a question from the Chair, Secretariat reported that ARC 2025 meeting dates are yet to be set pending a decision from CA Secretariat on Executive Board meeting dates.

VD (Chair) asked that ARC meeting dates be scheduled now given the time constraints on committee members availability.

Action:

ARC Secretariat to send the Committee a proposed set of dates for 2025 ARC meetings.

Minutes of the meeting held on 7 August 2024 were approved subject to the following amendments:

Attendees:- “Rachel Brown” should read “Rachel Browne, Audit Director, Audit Scotland”

Role titles for DIAA attendees to be amended as per details intimated.

Declarations of Interest – “BMC” should read “GMC (General Medical Council)”

ARC Paper 34 (2024) was noted.

Action Point 4 (Assurance Mapping Questionnaire – proposed move to 3 lines of defence)

After discussion it was agreed this proposal, together with a supporting paper, will be  discussed at the February 2025 ARC meeting. DIAA offered to assist with the drafting of the paper.

Follow up action

MA to prepare a paper outlining the business case for a move to 3 lines of defence in assurance mapping questionnaires. This will be discussed at the ARC meeting in February 2025.

Action Point 5 (COPFS Risk Management Training attendance data)

Decision

After discussion, it was agreed that this action can be removed from the ARC tracker. Progress is being monitored through the COPFS Risk Management Group

ARC Paper 35a (Internal Audit Tracker Update) was noted and general discussion followed.

This included:

Information Management Assurance

KD reported that the Strategic Delivery proposals set out in paper should enable this recommendation to be completed by time of February 2025 ARC Meeting.

Future Ways of Working

It was agreed this recommendation can be marked as completed on the ARC tracker as any further action required is being addressed by the Designed for Success team.

Response to the Pandemic

Lessons learned - KD is preparing with DCA colleagues a scoping document setting out departmental core elements.

National Ultimus Haeres Unit (NUHU)

The Committee welcomed the good progress being made and asked that their appreciation be passed on to the appropriate team.

Action

MA to advise relevant responsible staff.

ARC Paper 35 b (External Audit Tracker) was noted, and general discussion followed.

This included:

MA reported that it had been intended to publish the COPFS Financial Strategy paper in October 2024. The intervention of urgent budget planning work necessitated this being rescheduled. The paper will now appear on the December Executive Board agenda.

The Committee noted a degree of slippage in the publication date of the Best Value Assessment.  COPFS are confident this will be ready for presentation at the next meeting of ARC in February 2025.

MA reported that the trend analysis of key performance indicators will be incorporated into the COPFS draft annual accounts.

MA presented ARC Paper 36 (2024). The Committee noted the paper and general discussion followed.

Highlights included:

Emergency spending controls from Scottish Government continue to inform significant revisions of recruitment assumptions for all COPFS Functions.

Vacancy management continues to be an essential component in achieving required budget efficiencies and savings. The Workforce Planning Group continues to closely monitor all recruitment and make recommendations in situations of critical recruitment. Utilisation of a workforce management plan and a defined authorisation path facilitates the process for managing staff resources aligned with budget spend controls.

Spending continues to be closely monitored with stringent controls on official travel and attendance at conferences and training events ensuring these are vital to job roles and service delivery to stakeholders.

COPFS Business Services Management team continues to work closely with the Function Business Managers to ensure that process implementation aligns with SG guidance.

2025-26 and 2026-27 COPFS budget requirements have been submitted to SG. Clarification workshops and bilaterals are planned in advance of the SG Budget announcement in December. The Capital Commission for 2025-26 and 2026-27 capital funding has also been submitted with results anticipated in early December. 

Budget planning for 2025-26 will continue to align with any SG deadlines.

Law Officers priorities and consideration of appropriate corporate, casework, strategic elements and service delivery will be reflected in the planning work. Budget and resource planning for court recovery and other critical work will also be factored.

Liaison with COPFS Finance team and SG officials continues.

MB reported that the draft Audit Scotland Annual Audit Plan for COPFS will be presented to the ARC Meeting in February 2025.

WW presented the following:

ARC Paper 37 (2024) – DIAA COPFS ARC Progress Report

ARC Paper 37a (2024) - COPFS Counter-Fraud and Awareness Report

ARC Paper 37b (2024) – COPFS Business Planning

These were noted and general discussion followed

ARC Paper 37 (2024) – DIAA COPFS ARC Progress Report was noted.

Actions:

DS and WW to look at Digital Assurance Gateway reporting to ARC and revert to Committee with an update.

VD (Chair) KD and MA to discuss possible topics for Gateway Review

DS to share EQA results with MA.

ARC Paper 37a (2024) - COPFS Counter-Fraud and Awareness Report

WW reported that there was a drafting error between details in the narrative section of the report and the data table. A corrected version will be issued to the meeting group.

Actions arising:

WW to send Secretariat an amended version of the COPFS Counter-Fraud and Awareness Report for onward transmission to ARC meeting group.

KD to look at incorporating fraud in Corporate Risk Register.

KD to review policy in relation to the recording of Production Keepers access to production stores.

KD to liaise with ISD relating to CCTV cameras in production stores, their retention capabilities and arrangements for archiving and retrieval.

MA to look at participating in external engagement with other counter-fraud forums.

ARC Paper 37b (2024) Business Planning

KD thanked DIAA for the work that has gone into the audit. The framework report is to be shared with Executive Board.

It was agreed that action owners should be referred to by role title rather than specific names.

JL (Crown Agent) was unable to attend today’s ARC as he was required to attend a Scottish Parliamentary Committee.

A written update was provided by way of ARC Paper 38 (2024).

The Committee noted the paper and agreed that any required follow up could be done at the next COPFS Executive Board meeting when the Crown Agent will be present.

Highlights of the update included:

Following on from the tour of Designed for Success workshops held in Spring 2024 the second phase has now commenced and will last till the end of the year. This involves the Crown Agent and a small team of senior managers visiting a range of PF Offices across Scotland to share developments and take soundings from staff on what they hope to see from the programme.

It is planned to hold a recruitment process for key senior management roles in January 2025. Once these posts have been filled it is intended that the structural changes outlined in the Designed for Success programme will be implemented by Spring 2025. ARC will continue to be appraised of progress.

General update in relation to serious and high-profile case investigations.

The rollout of the Summary Case Management pilot to Glasgow has progressed well and the department continues to see the benefits of frontloading work and early engagement with complainers in all courts operating the pilot. It is envisaged that  the rollout of the pilot across the whole of Scotland will be completed in FY 2025/26.

COPFS has recently transferred to a 35-hour working week for non-Senior Civil Servant staff. Executive Board are to receive updates on how this is embedding.

The Committee noted ARC Paper 39 (2024) (Recommendations progress tracker)

The Committee asked that their appreciation be conveyed to the staff who had updated the tracker for the detail and utility of information it provided.

The Committee noted receipt of the HM Chief Inspector of Prosecution in Scotland Annual Report 2023-24 published on 11 September 2024.

The Committee welcomed the informative nature of ARC Paper 39b (2024)  (Domestic Abuse Awareness Month – COPFS Communications Planner)

The Committee noted the following:

ARC Paper 40a (2024) (Assurance Mapping Framework Group 2)

2.1 High Court/SCG Delivery

2.2 Local Court Delivery

2.3 IT Delivery

2.4 Risk Management

ARC Paper 40b (2024) (Assurance Mapping Framework Group 3)

3.1 Financial Management

3.2 Procurement

3.3 Information (including Data Loss)

3.4 Fraud

During general discussion the following points emerged:

In relation to item 2.1 (High Court Delivery), the Committee questioned if the evidence supplied fully supported an “all green” assessment.

Action:

MA to discuss High Court Delivery RAG assessment with Function DCA and report back to next meeting of ARC.

In relation to item 3.1 (Financial Management) the Committee noted that the update did not make specific reference to the Internal Audit Report on Business Planning. MA reported that she had not included it for this update but that it would be added in the next report.

In relation to item 3.2 Procurement, the Committee questioned if the “all green” RAG status was fully supported.

WW reported that he had discussed matters with the Head of COPFS Central Procurement Team and was satisfied that the assessment reflected the position at that point.

The off-contract procurement of expert witnesses for High Court cases was discussed.

KD and MA reported that work is ongoing to enhance the drafting of procurement requirement specifications, review the volume of spend and the range of spending controls applied.

The Committee asked that their thanks be conveyed to those members of staff who had contributed to the completion of the papers.

MA undertook to do this.

DW gave an overview of the following papers:

ARC Paper 41    (2024) – RMG Chair Report

ARC Paper 41A (2024) – RMG Minutes September 2024

ARC Paper 41B (2024) -  RMG Minutes October 2024

The Committee noted the papers and general discussion followed.

There were no additional items of business raised.

ARC will next meet on 19th February 2025 at 11 am in the PF Office, Chambers Street, Edinburgh (Conference Room Level 7)