Minutes of the VSS Audit and Risk Committee
Tuesday 17 October, 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
Brian Gilfedder (BG) 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:
Andrew Allen (AA) NIAO
Tanya Hamilton (TH) TEO
Catriona McHugh (CMcH) Cavanagh Kelly (Internal Audit)
A Apologies
No apologies.
B Minutes
Minutes of the previous meeting held on 22 August 2023 were approved.
C Action Points
17.01.23 - AP1: (Session on Risk Management) remains ongoing, revised strategy pending Board approval of risk appetite in November 2023.
22.08.23 – AP1: Closed. Meeting held and updated paper at I1. BSO to schedule subsequent meeting as agreed.
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 the Committee with an update on the following key issues:
- Budget Position
The Committee noted significant progress has been made in addressing budget concerns during the quarter.
It was noted a review of Troubles/conflict budget in Q2 has provided easements of £264k against the current budget provision following the 2023-24 in-year summer monitoring round. AW advised this will be transferred against the pressure currently identified within the PEACE Gap budget, allowing for extension to letters of offers to 31 March 2024. This has allowed for a de-escalation of strategic risk STG60.
The Committee noted additional TPDPS funding of £354k has been secured from TEO to meet the increased demand for community provided Health and Wellbeing services, specifically in areas of Talking Therapies and Complementary Therapies. It was noted that this has allowed for a de-escalation of strategic risk STG65.
AW highlighted that pressures do, however, continue to be seen as a result of TPDPS application levels and also new/returning clients presenting complex needs, the cost of living crisis, waiting lists and also an anticipated increase in demand following the TPDPS awareness campaign. VSS and TEO in agreement that the increasing level of demand in this area is a key priority and will look at how to build on that capacity going forward.
- Staffing Structure
The Committee noted that progress towards approval of the business case has been much slower than anticipated and VSS are now facing delays to recruitment. AW advised that this means VSS staff are continuing to operate significantly under capacity, causing significant risks to staff health and wellbeing, negatively impacting on morale and the potential for increased risk of errors in areas such as compliance and clinical risk management. It was noted strategic risk STG51 has been escalated to a RED risk to reflect this.
The Committee agreed this is an urgent priority and VSS await update on approval from TEO.
- Mother & Baby Institutions, Magdalene Laundries and Workhouses
It was noted VSS continues to provide services beyond the 12-month pilot period, with an extension of project approved until 31 March 2024. AW highlighted VSS is engaged with TEO to secure funding for a multi-annual business case and is making preparations towards the publication of an open call process in early Q4, with programme expected to be in place by April 2024.
It is expected that the Independent Panel, which will investigate and gather evidence to inform a public enquiry will commence work around April 2024.
The Committee also noted updates in relation to the upcoming publication of the TPDPS Real Time Review, the Legacy Bill becoming law, and developments on the needs of the Bereaved.
E2 Budget Report
VM provided an update on the 23/24 budget, as per the September 2023 budget report. The following points were highlighted:
- Revised budget allocation received on 29 September provided an additional £354k of funding for TPDPS Health & Wellbeing provision in the community, leaving pressure of £23k. Expectation that this amount will be found within existing allocation through underspends.
- HIA Budget showing easement of £25k.
- MBMLW showing easement of £121k – Q2 group claims and detailed review of INP required to finalise FY position with a view to surrendering budget to TEO in this ringfenced area.
- Total YTD spend across all areas at 55%.
- Prompt payments below target in August due to implementation of new accounting system/ staff training. Target achieved in September.
- NIAO Auditors commenced audit of 2022/23 year-end financial statements on 3 October 2023.
The Committee noted they are content with the newly formatted budget report and thanked VM for her work on this.
E3 Strategic Risk Register
The Committee noted the strategic risk register. AW highlighted risk STG50, which relates to the VSS Board vacancies & succession planning.
It was noted three of the existing Board members terms are due to end between December 2023 and March 2024 and that VSS continue to raise this as a live risk with TEO to avoid a gap in Chair/Membership commencing from 1 April 2024.
AW informed the Committee that a Skills Audit exercise has been completed by current Board members to help inform the new Board recruitment process. Programme for knowledge transfer from existing Board members to new members to take place.
TH advised it is anticipated that the advertisements for Chair and Board members will go live early November 2023 and that TEO are currently finalising the panel for this recruitment process.
F Quarterly Reports
The Committee noted all quarterly reports.
G Internal Audit - Cavanagh Kelly
CMcH provided an update on the Internal Audit Annual Plan for 2023-24. The following key points were noted:
- Work has now commenced on the Human Resources audit area.
- Needs Based Frameworks work to commence November 2023.
- Financial Management to commence January 2024.
- Programme Expenditure to commence February 2024.
The Committee noted Appendix 1, Three Year Internal Audit Strategy, and the changes that have been developed.
H External Audit Update – NIAO
AA provided a verbal update on External Audit.
It was noted the audit of 2022/23 year-end financial statements commenced on 3 October 2023.
Audit strategy indicates that the audit will be completed, and accounts certified in early December 2023. The Committee noted there are no concerns or indication that this timeline will not be met.
I Standing Agenda Items
I1 2022/23 ARC Self-Assessment Report
The Committee noted this report.
I2 ARC Training Update and Requirements
The Committee noted this paper.
TL asked ARC members to get in contact should they feel additional training is required.
I3 Audit recommendations
The Committee noted there are a total of 28 Audit Recommendations currently open, 17 of which are internal audit recommendations and 11 external audit recommendations.
It was noted of the 17 internal audit recommendations, 6 are priority 2 and 11 are priority 3. TL highlighted VSS are working through these with CK in terms of follow up.
Discussion around AR267, which relates to BCP testing. It was noted TEO are providing support to VSS on this following completion of TEO BCP review. It was agreed TL will share current BCP Policy and Procedure with BG for information.
I4 Gifts and Hospitality Update
Noted.
I5 Compliance Update
VM presented the Compliance Report for the quarter ending 30 September 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.
- One whistleblowing allegation received post quarter end, which will be reported with further detail at the next meeting.
- 2 complaints received in the quarter, of which one was not upheld and the remaining review ongoing.
- 1 complaint was made to the Ombudsman in the quarter, currently under assessment by NIPSO. 1 complaint made to the Ombudsman during Q1 was closed by NIPSO during the period, with the decision not to accept the complaint for investigation.
- 54 Subject Access Requests were received in the quarter, 53 of which related to the TPDPS. In addition, 119 requests for information have been received directly from the Victims’ Payments Board/Capita.
- Spike in incoming calls (Troubles/conflict phoneline) in September due to increased award processing.
- Incoming calls (HIA & MBMLW phoneline) continue to increase, which is believed to be a continuing response to the awareness leaflet drop from TEO to all households in NI.
GDPR Update (As at 20 September 2023)
Two data incidents were recorded during the period. The Committee noted actions taken by VSS, with no requirement to contact the ICO.
I6 Procurement Update Q1 23/24
VM highlighted that there were three new business cases approved in the period ending 30 September 2023.
J Any Other Business
CD acknowledged that BMcD term is due to end in December 2023 and thanked BMcD on behalf of the Committee for her significant contribution to the VSS Audit and Risk Committee over the years.
K Date of Next Meeting
Date TBC with NIAO.