Minutes of the VSS Audit and Risk Committee
Wednesday 17 April 2024, 10am
Microsoft teams meeting Teams
ARC Members Present:
John Cahill (JC) ARC Chair
Briege Lafferty (BL) 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
Adam Strong (AS) Governance Manager
Deborah Campbell (DC) HR Administrator (Minutes)
Others in Attendance:
Andrew Allen (AA) NIAO
Tanya Hamilton (TH) TEO
Catriona McHugh (CMcH) Cavanagh Kelly (Internal Audit)
A Apologies
Colm Doran, ARC Chair (now resigned 31 March 2024).
B Minutes
The minutes of the previous meeting were approved.
C Action Points
An action update from the previous meeting: Deep dive risk session on cyber security in 24/25 is held up by business continuity plan from TEO, so team can adapt plan for VSS. TL will report back to committee at the next meeting with a status update.
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
CEO exception report was discussed by AW. AW advised VSS is into a new financial year (April) however lacking certainty around executive budget and departmental budget, and ultimately VSS next steps.
Key risk discussed by AW- PEACEPLUS programme decision was to occur by 21st March. That timeline has not been met by SEUPB. This will go to a May steering committee. Timeline unknown re: steering committee decision, to letter of offer. This is an escalated risk. Mitigations in place; talking to SEUPB regularly, flagging to TEO audit committee and board, special advisors are aware.
There has been a discussion on this delay. JC asked for further clarity of the committee meeting. AW has advised there is a series of approvals, queries/ clarifications, and funding discussions on SEUPB side.
There was a discussion re. if this is an administrative delay or active threat to funding. AW has advised BG that this is most likely an administrative delay. The questions faced were clarifications, and not fundamental concerns.
There was a discussion on mitigations to fund ongoing peace gap. AW noted that in the event VSS need to fund some months, there will be no choice but to make savings (£220k a month) causing a significant scale back at VSS. This is difficult at a short notice. The first port of call would be to go back to TEO re: administrative processes.
TL highlighted that funding is in place until end of May. An option is being actively explored regarding Steering Committee approval and asking for a retrospective start date from May approval date.
Staff Resourcing
TEO has advised that VSS can populate structure with staff, if affordable. This will require the PEACE PLUS project to be approved as it is included within the staff cost apportionment model. AW has advised this can lead to steady stream of recruitment. It was noted VSS has gone out for a few roles that are essential and can afford at this time.
Board Appointments
4 board members currently, hopeful that new chair will be able to attend, to observe April meeting. Ministers to make final steps to make appointment. AW has provided committee with full board recruitment update. TH confirmed ongoing follow-up with Ministers.
Budgets
AW provided an update on VSS budget position.
- Letter of offers sent to groups. Groups have been briefed.
- Self Directed Assistance payments - 100-150 calls per day from clients re date payment/ confirmation. Message delivered is that VSS are intending to make payments, however, are dependent on budget to be provided by TEO.
- Underspend beyond 1.5% tolerance level:
- For 2023/24; MBMLW area has underspend, due to lack of clarity on budget. Have updated TEO. Update provided by AW.
- TPDPS- tied into leaflet drop, that was delayed. Groups wanted to scale up, got additional support, however difficult to recruit. Vacant post meant underspend. Posts are now filled/ being filled.
- Pay deal from exec, offered of 5%+£1,500 on all scale points, this came late. When this was agreed exec office gave VSS extra money, however VSS had already accounted for this; thus exacerbated the underspend.
MBMLW
- MBMLW update was discussed by AW. Currently in an uncertain period around the approval date for the business case for substantive services. Pilot activity completed on 31 March 2024, evaluation report on this has been completed.
- VSS completed an open call for C&V sector service providers from 1 April 2024 for a contract period of 3+1+1 years. VSS has notified the successful bid of its intention to appoint.
- VSS cannot issue letter of offer until approved TEO business case, and secondly a budget that allows us to scale up this activity. Clear understanding of how to scale needs to be addressed. Working with community and voluntary sector. Leaflet drop will come as awareness campaign from TEO.
Bereaved
- De-escalating as a risk following advice from CVS to Government. This will still be a risk and area of importance for TEO.
TPDPS
- Leaflet drop- significant increase in interest.
- Backdated payment deadline is a current issue and feedback has been given to Secretary of State.
ICIR
ICIR work will start work 1 May. AW has communicated to the committee that VSS have linked in on call handling and sharing knowledge in respect of Trauma Informed Practice.
Strategic Risk Register
RTN- AW has raised the ability to achieve its full potential and new area of work to raise awareness amongst GPs. This is an important next step. Risk/concern- the current waiting list, and no additional funding for VSS/ community groups.
There was a discussion led by BG around KPIs, regarding RTN data, vs going through health service. AW advised that RTN, VSS and community organisations, have data that is well captured and monitored. There are prioritised and protected pathways to go through, and important to highlight is the combined nature of services one would access.
65- Risk; JC has discussed impact of inflation on clients. AW has advised this would require further discussion, i.e. if VSS have further news on budget for emerging needs, then can plan funding calls for groups, and put funds into the letter of offer. This is a risk until we know if we can do this or not.
F Quarterly Reports
All reports were noted by the Committee.
ACTION: include RTN report in section F going forward.
G Internal Audit - Cavanagh Kelly
Review of internal audit of Financial Management provided to committee. The overall outcome of the audit was satisfactory with one priority three recommendation made. No questions from the committee. VM and the team to be commended.
Discussions took place on the Internal Audit Programme for 2024/25 with areas for review considered including PEACE PLUS governance arrangements, Risk Management, Budgeting and Cyber Security. The draft 2024/25 Internal Audit Programme to be brought to committee in August 2024.
H External Audit Update – NIAO
Andrew Allen presented the 2023/24 external audit strategy to the committee highlighting the key messages, key risks, the timetable for audit and the audit fee.
The strategy was noted by the committee.
I Standing Agenda Items
I1 2022/23 ARC Self-Assessment Report
TL provided an update on the ARC Self-Assessment Report. The following key points were noted:
- Required skillsets for ARAC members will be reviewed at regular intervals.
- ARC induction delivered in Jan 2024 to new members. Feedback to be sought.
- Management considering ESG risks and will update members by Q2.
- Risk strategy was brought to Board in Nov 23, and to ARC in Jan 24.
- Members are content to close point 9.
- Trend analysis will be used going forward.
I2 ARC Training Update and Requirements
BG training has been recorded.
For any training needs – the Committee have been advised to contact TL.
I3 Audit recommendations
Noted.
I4 Gifts and Hospitality Update
No gifts or hospitality to highlight.
I5 Compliance Update
TL presented the compliance update and highlighted a decision has been made to now share in advance along with pack to allow members to have more time to scrutinise report.
There were no questions from the Committee.
AW has made the Committee aware that: FR13 has now been written off, and within AW authority to do so.
AW made the Committee aware that there were four data incidents in the period, which were recorded and no requirement to contact the ICO.
I6 Procurement Update Q1 23/24
VM provided an update to the committee that 2 business cases were approved in the quarter, including VIM maintenance. Tender process being administered by CPD.
J Any Other Business
Information breach risk was discussed. Control of IT infrastructure is owned by IT assist. Human error is still a risk, in terms of cyber security. Training is carried out and staff report issues to IT assist.
Board member training (cyber security) process to be discussed further. AW advised training needs will be reviewed and extended to Board and Chair.
TL has provided the Committee with an update on Paper J1. The raising concern policy has been updated. The policy is in line with framework, as set out by NICS published Jan 23. Key work has been done within the appendix to ensure flow chart is clear regarding how concerns can be raised in VSS.
J2- Self Assessment and scheduling. TL circulated self-assessment template last year and compiled to compare.
ACTION Point 1: There is an action for AS to circulate and coordinate the self-assessment template for this year. AS to track performance as required.
The committee are to review documentation in advance.
J3- ARC skills audit template was presented by TL and noted by committee members.
BG highlighted the number of acronyms on reports. AW has advised a glossary will be updated and circulated.
ACTION Point 2: There is an action to update and circulate glossary of acronyms.
AW has sent a thank you note to Colm and extended thanks to Colm in the Committee meeting.
TL welcomed Adam Strong to the Committee, introducing Adam as the new VSS Governance Manager.
K Date of Next Meeting
The next meeting of the Audit and Risk Committee is scheduled to take place on 14 August 2024.