Minutes of the VSS Audit and Risk Committee

Tuesday 22 August, 10:00am

Remote – via Teams

ARC Members Present:

Colm Doran (CD)                       ARC Member (Chair)

Bertha McDougall (BMCD)        ARC Member

Briege Lafferty (BL)                   ARC Member

John Cahill (JC)                        ARC Member

VSS Officers in Attendance:

Andrew Walker (AW)                Chief Executive Officer

Tara Lewsley (TL)                     Head of Corporate Services

Victora Murray (VM)                  Finance Manager

Melissa McCartan                      Business Support Officer (Minutes)

Others in Attendance:

Catriona McHugh (CMcH)         Cavanagh Kelly (Internal Audit)

Andrew Allen (AA)                    NIAO

Tanya Hamilton (TH)               TEO

Sarah Knight (SK)                     VSS Boardroom Apprentice  

A      Apologies

Apologies received from Sinead Brown, TEO.

On behalf of the Committee, CD congratulated AW on his appointment as VSS Chief Executive Officer.

B Minutes

Minutes of the previous meeting held on 27 April 2023 were approved.

C      Action Points

17.01.23 - AP1: (Session on Risk Management) remains ongoing, pending Board approval of risk appetite. Q3 23/24 closure anticipated.

D      Conflict of Interest

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

E      Accounting Officer Update

E1        CEO/AO Exception Report

AW provided an update on the current budget position. It was noted VSS received confirmation of opening 2023/24 budget allocation on 30 June 2023. All ringfenced budgets in respect of HIA, MBMLW, and TPDPS have been provided at the levels requested by VSS.

Funds in respect of the Troubles/conflict core funding has also been provided at the requested levels, except for the funding required to maintain the PEACE IV Project activity, until funding for the PEACEPLUS project is approved and available. The Committee noted the identified shortfall of funds in respect of this and that VSS continue to engage with TEO on the matter.

AW advised VSS will continue to explore the potential for availability of some additional funding to meet needs associated with the Troubles Permanent Disablement Payments Scheme (TPDPS) and undertake detailed reviews of VSS budget position and evaluate options available to make further in-year savings.

The Committee noted the demand for services at community and voluntary sector partners are at record levels, as well as the demand on VSS INP frameworks. AW highlighted reasons considered for this increase, which included:

- TPDPS application levels and the health and wellbeing support that arises from these applications.

- Cost of living crisis impact on victims and survivors.

- Reduction of available support in statutory services for health and wellbeing needs.

- The impact of the proposed arrangements for Legacy within the NI Troubles (Legacy and Reconciliation) Bill.

It was also highlighted that VSS have made changes to the eligibility for support under the Trauma Focused Physical Activity Framework in Q1 due to a reduction in funds available within the PEACE Gap budget. In recent weeks, following a detailed review of the award profiles, VSS have had to reduce the level of support provided in the Complementary Therapies framework. The Committee noted VSS staff are having to make difficult decisions balancing individual health and wellbeing needs against limited budget resources.

BL noted now is a great opportunity to ensure appropriate governance around decision making and changes being made.

The Committee noted significant progress made to date in respect of VSS Structure & Staffing, but continued efforts needed internally and at TEO re: business case approval.     TH confirmed TEO are currently working through this, with initial review completed and comments to be provided to VSS.

AW highlighted that the needs of the bereaved remains a key issue – and that some community and voluntary organisations engaged with CVS in a recent session to inform the Commissioner’s advice to TEO. It was noted frustrations also remain in respect of the TPDPS, primarily around communication, speed of cases, and application of criteria.

Finally, the Committee noted SEUPB opened the PEACEPLUS funding call on 16 June 2023 and VSS submitted the application on 15 August 2023.

E2 Budget Report

VM presented the Q1 budget report and provided further updates on the current budget position in respect of Troubles/conflict, HIA, MBMLW, TPDPS, and PEACE Gap.

Attention was drawn to current INP pressures, with a number of frameworks seeing awards in the system at greater than 50% of full year budget value by the end of Q1. Following a detailed review of the award profiles as mentioned above, VSS management have taken the decision to reduce awards for Complementary Therapies to a maximum value of £250 per individual per annum.

The Committee noted VSS are tracking individual awards against budget on a weekly basis and will continue to take action to address pressures on budget provision as they arise.

VM highlighted there has been some progress in respect of SEUPB verifications of VSS and partner claims since 30 June and this process remains ongoing.

The Committee noted stats relating to prompt payments during Q1 2023/24 and current cash drawdown position. VM highlighted the current cash allocation will be exhausted in September 2023 and this matter has been raised with TEO for urgent consideration.

ARC members then provided some feedback on the current financial reporting approach to the VSS Audit and Risk Committee and agreed to meet on a separate occasion to discuss a new approach.

E3 Strategic Risk Register

The strategic risk register was discussed.  AW reported that five risks have been closed to include:

1. STG34 - Regional Trauma Network (RTN)

2. STG52 – Senior Management Team Pressures

3. STG64 – Staffing Pressures

4. STG66 – 23/24 Budget

5. STG70 – Premises

The Committee noted 3 red risks reported in the period, relating to needs of the Bereaved, PEACE Gap Funding, and Community and Voluntary sector resources/ pressures.

F      Quarterly Reports

        The Committee noted all quarterly reports.

AW highlighted the inclusion of the M&E Outcome Report for MBMLW.

G     Internal Audit

CMcH provided an update on Internal Audit.

The Committee noted the following reports:

G1 – PEACE IV Closure

The report resulted in one priority three recommendation. Overall, the report resulted in a Satisfactory audit rating.

Recommendation accepted and implemented by VSS management.

G2 – Management Information Systems (MIS)

The report resulted in two priority three recommendations. Overall, the report resulted in a Satisfactory audit rating.

Recommendations accepted and implemented by VSS management.

G3 – Programme Management

The report resulted in one priority two and one priority three recommendation, relating to the review of VSS complaints policy and the complaints record and checklist. 

Overall, the report resulted in a Satisfactory audit rating.

Recommendations accepted and implemented by VSS management.

G4 – Follow up of Prior Year Audit Recommendations

The report found that of the 31 recommendations carried forward, 18 have been fully addressed while steps are being taken to address 6 more. Those that are being addressed are largely complete.

CMcH highlighted that VSS has deemed 3 recommendations that are no longer relevant. Internal Audit content with this.

The Committee noted 3 of the recommendations not yet implemented relate to Business Continuity Planning (BCP). It was noted VSS require external assistance to review and revise the BC Plan. The outstanding recommendations relating to BCP will be addressed as part of that exercise.

G5 - Annual Assurance Statement 2022/23

The report concluded that overall, there is a Satisfactory system of governance, risk management and control in place.

The Chair extended thanks to Cavanagh Kelly team for facilitating this audit.

CMcH commended VSS staff for the work carried out on the internal audit review and the progress made in respect of the 21/22 audit recommendations.

H      External Audit Update

AA provided a brief update on External Audit.

Final audit to commence October 2023 when Annual Report and Accounts are submitted. Audit strategy indicates that the audit will be completed, and accounts certified in December 2023.

No concerns or indication that this timeline will not be met.

TL provided the Committee with an update on the Annual Report and Accounts 2022/23.

It was noted this report remains in draft form and VSS are currently working to finalise this as soon as possible. Once a finalisation date has been determined, TL will provide the Committee with an update on dates for ARC and Board review and subsequent submission to NIAO.

I       Standing Agenda Items

        I1     2022/23 ARC Self-Assessment Report       

The Committee noted the Audit and Risk Committee effectiveness outcome report. It was agreed ARC members will meet on separate occasion to discuss this further.

22.08.23 - AP1: Members to meet to discuss future needs of Committee & self-assessment outcomes report and agree VSS ARC financial reporting approach going forward.

I2     ARC Training Update and Requirements

                Members confirmed there were no inaccuracies in the report.

        I3     Audit recommendations

The Audit Recommendations Register was noted by the Committee.

Attention drawn to AR267, relating to BCP testing. It was noted that the BCP Policy and Procedure is under review. TEO is providing support to VSS on this on completion of TEO’s BCP review.  Q4 23/24 completion anticipated.

        I4     Gifts and Hospitality Update

                Noted.

        I5     Compliance Update

TL presented the Compliance Report for the quarter ending 30 June 2023 and highlighted the following;

- 1 open suspected fraud case. This is a longstanding and previously reported case concerning respite invoices. It is an active PSNI case.

- 3 debtor balances currently outstanding.

- 1 whistleblowing allegation received in February 2023 (not previously reported).

- 8 complaints received in the quarter, all of which have now been closed and not upheld.

- 1 complaint was made to the Ombudsman in the quarter, currently under assessment by NIPSO.

- 37 Subject Access Requests were received in the quarter all relating to the TPDPS. In addition, 72 requests for information have been received directly from the Victims’ Payments Board/Capita.

- Incoming calls (Troubles/conflict phoneline) increased during April. This is in line with expectation of a high volume of queries relating to the SDA payments in April.

- Incoming calls (HIA & MBMLW phoneline) increased during June 2023 as a result of the awareness leaflet drop from TEO to all households in NI.

GDPR Update (As at 30 June 2023)

One data incident was recorded during the period. This incident was investigated, a conclusion that there had been no data breach was recorded and was closed by VSS with no requirement to contact the ICO.

In light of the recent public sector data breach, the Chair asked TL if a reminder of good data protection has been issued to all VSS staff. TL confirmed yes that a companywide email was issued to remind staff to be extra vigilant, highlighting the appropriate processes and controls to manage and ensure safety of data.

I6     Procurement Update Q1 23/24

VM highlighted that there were two new business cases approved in the period ending 30 June 2023.

J    Any Other Business

      ARC Annual Report 2022/23

      This report was noted. No comments.

VSS Board Recruitment

The Committee noted two new Board members will be joining the VSS Board. Recruitment will remain ongoing to appoint additional Board members, ahead of 3 of the current Board members terms ending this financial year (including VSS Chair).

This will result in new addition(s) to the VSS Audit and Risk Committee in the coming months.

K      Date of Next Meeting

The next ARC Committee meeting is scheduled to take place on Tuesday 17^th October 2023.