Minutes of the VSS Audit and Risk Committee
Wednesday 14 August 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
Victoria Murray (VM) Finance Manager
Adam Strong (AS) Governance Manager (minutes)
Others in Attendance:
Tanya Hamilton (TH) TEO
Catriona McHugh (CMcH) Cavanagh Kelly (Internal Audit)
Caroline Laird (CL) NIAO (External Audit)
A Apologies
Andrew Allen, NIAO
B Minutes
The minutes of the previous meeting were approved.
C Action Points
AP1 from April 2024 - TL asked the ARC members to hold a self assessment consensus meeting to agree common scores and develop an action plan for the identified areas for improvement.
AP2 from April 2024 has been completed.
AP1 from January 2023 remains open with further work progressing on risk management internal procedures. Aim to be completed later this year.
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 pulled out come key issues for comment.
Budget
VSS have received the £20.44 million requested excluding additional Peace Gap funding. A positive outcome. Within that budget allocation a fund for emerging needs allows VSS to provide additional in-year support to groups. As such, a funding call was issued in July 2024 with demand from the groups more than double the allocation (demonstrating the ongoing pressures).
Peace Plus
This programme has been approved after completing the SEUPB application process. An issue has arisen in that the Letter of Offer has been received in euro rather than sterling. The exchange risk involved with a euro letter of offer for VSS and the partner groups is not an acceptable risk. VSS are currently working through escalation of that with TEO and SEUPB. TH stated that a meeting has been arranged between SEUPB and DoF to discuss.
PEACEPLUS cashflow remains a concern. TEO had provided PEACE Gap funding until the commencement of the PEACEPLUS project (21 May 2024). VSS (and partners) will request a cash advance from SEUPB upon signing of the Letter of Offer, however in the interim VSS has had to drawdown advance funds from TEO’s core funding to provide working capital to the 10 community partner organisations. The project’s monthly expenditure is c£200k per month at this time. Further delays to the signing of the Letter of Offer will exacerbate pressure upon cashflow.
Staff Resourcing
TEO previously approved the VSS staffing restructure – subject to affordability. Affordability was confirmed with approval of the PEACEPLUS project and the TEO budget for 2024/25. AW advised that the recruitment process for all new staff is ongoing at a steady rate.
AW informed that after an unsuccessful external recruitment process for the Grade 7 post for Head of Learning and Growth, an internal application process sees TL move across to that post for an initial period of six months. VSS are working through backfill of the Head of Corporate Services.
Board Appointments
AW provided committee with a board recruitment update. Ministers have approved the appointments of a new Board Chair and three additional Board Members. TH confirmed formal confirmation now with Ministers.
TPDPS
AW advised that the Secretary of State for Northern Ireland has extending the current backdating period by two years (until August 2026, current date of scheme closure). This was very welcome news.
BG asked if applicants can go back and update applications that may have been rushed through to meet the original deadline to qualify applications for backdating. AW advised that the Victims Payment Board acknowledged the impact of the original deadline would have had on claims received close to that date.
Trauma Informed Quality Mark
A press release was completed to acknowledge VSS being accredited with a Silver ‘Trauma-Informed: Working With Trauma Quality Mark’.
HIA
MBMLW
AW reported that he continues to engage within the TEO Funder’s Forum. Its current focus is on ALBs working closer together to identify who is doing what and when, and whether there may be opportunities for greater efficiencies. A further meeting of that group will take place today.
Budgets
VM provided an update on VSS budget position.
- The June Monitoring Allocation has been received at £20.44m. Subsequently VSS have submitted an October Monitoring submission, which includes some reallocations on individual budget lines as underspends are identified.
- TEO Finance has requested that VSS bid for Truth Recovery capital (£184k) to fund the capital elements of grant funded expenditure, primarily refurbishment of a building purchased by WAVE accommodate service delivery under the Truth Recovery Programme. TEO are working with VSS on this alongside the ongoing approval process for the overall Truth Recovery business case. JC and BL asked some questions around TEO support, building ownership and capitalisation levels.
Strategic Risk Register
TL discussed the Strategic Risk register. Four risks were closed this quarter with six remaining open of which two are expected to be closed next quarter.
F Quarterly Reports
All reports were noted by the Committee.
AW noted that TL had changed the format and increased the detail on the three M&E reports. It was felt this allowed more meaningful direction and comment both internally and from the Board. JC thought the new format was very useful, especially for the new Board members coming onboard.
G Internal Audit - Cavanagh Kelly
CMcH led through a brief review of the internal audit reports on Individual Needs Grant Testing, Programme Expenditure Verification testing, Follow Up and Annual Assurance Report 2023/24 that had been provided to committee.
The outcome of the Individual Needs Grant audit was satisfactory with one priority three recommendation made. The outcome of the Programme Expenditure Verification audit was satisfactory with three priority three recommendations made and one minor point for management to consider around terminology. The Follow-Up Report confirmed that of the eighteen audit recommendations reviewed, ten were fully implemented, two were no longer applicable and six were partially implemented. The overall outcome of internal audit for 2023/24 was Satisfactory with one priority three recommendation made. No questions from the committee. BG commented that the reports read well.
It was then discussed that management looking at a plan and timing for the internal audit work in 2024/25. TL noted the recommendations made from the committee at the previous meeting. In the next few weeks a suggested plan will be sent around the Committee for their feedback with the aim to start work in Q3.
H External Audit Update – NIAO
CL noted that they are due to receive VSS Annual Report and Accounts by Monday 19th August. At that stage they will start their work and that on site audit testing dates have already been agreed. AW commented that accounts have been completed earlier than in previous years and that the interim audit has helped.
BL asked on the timescale for the external audit. The accounts are to be signed by the 18th October ad certified by the 22nd October.
I Standing Agenda Items
I1 2022/23 ARC Self-Assessment Report
TL thanked the members for completing the 2023/24 ARC Self-Assessment Report. TL asked the members to hold a consensus meeting and then to design and develop an action plan for any identified areas for improvement.
TL spoke to the action points from the 2022/23 ARC Self-Assessment report highlighting areas that have been completed and other areas that will be picked up within the 2023/24 plan.
I2 ARC Training Update and Requirements
Noted.
I3 Audit recommendations
Noted.
I4 Gifts and Hospitality Update
No gifts or hospitality to highlight.
I5 Compliance Update
AS presented the compliance report.
AW discussed the call handling movements and the reasons for them. Some discussion ensued around communication that could be put in place to pre-empt and thus reduce those calls. AW confirmed that there are other communications in place already, but from our experience we will still receive a similar level of calls.
I6 Procurement Update Q1 24/25
VM provided an update to the committee that 2 business cases were approved in the quarter, which included one modification to PR Services and a Governance Review contract that is currently out to tender.
VM noted that the existing contract for VIM Maintenance with Codec has been extended for a further 3 months to 30 September 2024 by CPD to allow for completion of the new tender process.
I7 FD/DAO updates from DoF Q1 2024/25
This is a new paper which was felt would be helpful to show the committee communications we receive from the Department of Finance.
BL commented that she feels this is helpful for all to be aware of such communication.
J Any Other Business
J1 RTN Dashboard
Committee members had requested more information on RTN. This paper provides that detail of what is happening and the important messages to convey. Committee had a discussion around the RTN risk.
J2 Approval of draft Annual Report and Accounts for submission to NIAO
Annual Report and Accounts had been previously circulated to the Committee. TL thanked BL for comments noting that the team will work through and respond today. Subject to that, it was agreed by members that the Annual Report and Accounts can be sent to NIAO on Monday 19th August.
K Date of Next Meeting
The next meeting of the Audit and Risk Committee is scheduled to take place on 16 October 2024.