Minutes of the VSS Audit and Risk Committee

Wednesday 20 May 2022, 2pm

Remote – via Zoom

ARC Members Present:

Colm Doran Chair

Bertha McDougall                                  Board Member

Briege Lafferty                                       ARC Member                                                          

VSS Officers in Attendance:

Margaret Bateson (MB)                          Chief Executive Officer

Carla Forte (CF)                                      Business Support Officer (Minutes)

Others in Attendance:

Steven Lindsay                                          Cavanagh Kelly (Internal Audit)                                    

Kathy Doey                                               NIAO

Marie Matthews                                        TEO

A      Apologies

Apologies from Sinead Brown, Suzanne Walsh, Jonathan McCullough & Andrew Walker were noted.

B      Minutes of Previous Meeting held on 4 May 2022 were approved.

C      Action Points

None outstanding

D      Conflict of Interest

All papers were noted by the Committee and no conflicts of interest were declared.

E      Accounting Officer Update

The CEO and AO provided an update of the current challenging and difficult environment including the current operating environment.  Externally, post-covid fatigue is compounded by the unstable political environment, an expired Victims Strategy, uncertainty over opening budgets, Peace gap funding and continued lack of progress on legacy mechanisms. MB also stated that due to these issues there has been an increase in victims coming forward for health & wellbeing support.

Internally, the impact of these external factors continues to be significant.

Due to the cessation of Peace contracts in August 2022, a number of staff are now proactively looking for other employment. Others have already left. Gaps are being clearly seen in relation to SO & DP positions. Although positions have been filled through agency staff, this is not a solution long term.

The Finance and Governance team remains the key challenge.  Fundamental tasks and controls are being prioritised (payments to suppliers and clients, payment run checks and bank reconciliations).  This has impacted in delays to reporting, internal audits and preparation of the annual report and accounts.  Overall, this has had a knock on effect on remaining staff.  As an Interim solution, AW is overseeing this function with the Head of Corporate Services due to return from maternity leave on 1^st August 2022.

MB also outlined concerns around the allocation of opening budgets, an issue across all ALBs and Departments due to no executive in place. As of yet a budget has not been confirmed for 2022/23.   If we assume it is the opening budget of last year, no issues are anticipated in relation to mother & baby and HIA but will be problematic in relation to the Troubles/conflict side in three key areas:  (1) scheme for the bereaved re-opened and these payments have been made (2)  salary uplifts from 2016 to current NJC scales (3) commitment VSS made to community and voluntary partners to review rates of psychological therapies in line with the new Regional Trauma Network due to launch in August 2022.  This type of uncertainty added to the existing stress and uncertainty for the Finance Team staff.  MB also noted that there is an issue with the mechanism for getting funding and TEO are aware of the fundamental issues in the sector. 

F      Quarterly Reports

F1    Quarterly ALB Report

The Committee noted this paper.  

        F2    Quarterly Assurance Statement

The Committee noted this paper.

        F3    Quarterly M&E Report – Qtr 1 2022/23

Both Quarter 1 2022/23 and & Quarter 4 2021/22 were noted.

G     Internal Audit

A verbal update was provided by SL.

The field work relating to the additional internal audit on the Education and Training scheme testing is complete. There are a few queries regarding the E&T framework with AW the report is at draft stage. SL is confident that this will be completed by next audit meeting. A short document illustrating that framework changes have been adequately made will also be completed.

There are also a few other queries currently with AW on the corporate governance & financial management internal audits that we expect to be resolved and reports ready by the next audit meeting.

H      External Audit Update

Verbal update from NIAO.   Comments from NIAO on RTTCG have recently been sent back to VSS and will be finalised in July 2022.  An Audit Strategy has not yet been issued. This will hopefully be presented at next audit meeting.

I       Standing Agenda Items

All standing agenda Items were presented to the Committee.      

        I1     2020/21 ARC Self-Assessment Report - Action Plan           

        I2     ARC Training Update and Requirements                           

        I3     Audit recommendations                                                     

        I4     Gifts and Hospitality Update                                              

        I5     Compliance Update

The Committee noted a paper would be considered by the VSS Board in July 2022 in relation to an outstanding debt.

        I6     Procurement Update                                                         

        I7     Data Protection

J    Any Other Business

The ARC chair acknowledged this would be the last ARC meeting for MB and extended his thanks for her leadership and the positive changes in VSS over the last 8 years and wished her well for the future.  MB relayed her thanks and gratitude to the ARC members for their advice and guidance over the years and the importance of the challenge function to make VSS the organisation it is now and her confidence that VSS is left in strong hands and with a great staff team

Date of Next Meeting

TBC