Minutes of the VSS Audit and Risk Committee
Wednesday 15 October 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
Victoria Murray (VM) Head of Corporate Services
Courtney Powell (CP) Finance Manager
Adam Strong (AS) Governance Manager
Brónach Twomey (BT) Minutes
Others in Attendance:
Tanya Hamilton (TH) TEO
Catriona McHugh (CMcH) Cavanagh Kelly (Internal Audit)
Caroline Laird (CL) NIAO (External Audit)
A Apologies
None
B Minutes
The minutes of the previous meeting were approved.
C Action Points
AP1 from April 2024 has been completed.
AP1 from January 2023 remains open with further work progressing on risk management internal procedures. AW noted that this work now comprises two strands, to include a review of internal risk management structures and how these can be used to provide a framework for risk review by ARC on a rotational basis. An update on the Risk Management Strategy will be brought to the January 2025 meeting.
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.
Cashflow
Two cashflow issues are currently impacting VSS:
1. 65% cap on GIA funding in the absence of an approved Budget Bill. VSS has taken mitigating actions to restrict cash outflows while the situation is resolved, including restricting third quarter grant payments to Funded Organisations to monthly payment rather than the full quarter in advance.
2. Ongoing delays to receipt of cash advance from SEUPB. VSS are currently working through a final issue on the documentation issued for project partners. VSS previously drew down advance funds from TEO’s core funding to provide working capital to community partner organisations and this will need to be extended until the SEUPB advances are received.
In the absence of either issue being resolved VSS have requested an additional drawdown of £300k from TEO which has been approved internally and will satisfy cash needs to the end of October.
JC asked if it would be useful for the ARC Chair to write to TEO regarding the 65% GIA restriction and AW confirmed that this could be helpful if the matter was not resolved in the next two weeks.
Victim Support Programme
VSS has had ongoing engagement with TEO in recent months to set out the planning timeline for its new programmes due to commence from 1 April 2026. The planning timescale is tight and will rely upon timely completion of a business case and review processes. VSS will be engaging with existing VSP funded community partners in the coming weeks to inform an options paper for presentation to Ministers prior to the commencement of full programme design.
Board Appointments
AW confirmed no further update following the information that appointment offers had been made for a new Board Chair and three additional Board Members. TH confirmed security clearance is complete and the appointments are now back with Ministers for final approval.
MBMLW
AW advised that we continue to work to scale up our support. As the independent panel continue to take testimonies more people are becoming aware of what is going on in this area and the support available. We are moving now to the post consultation period where there will be legislation leading to inquiry and redress.
Legacy
There is ongoing uncertainty around the implementation of the Legacy Act, this impacts the role of VSS and advocacy support organisations we work with. VSS met with impacted groups last Monday so they could share their experiences so far.
Programme For Government
PEACEPLUS
AW reported the extension to deadline (31/08/26) for the scheme gives breathing space to allow all sector staff working on it to continue gathering high quality statements from applicants.
Budget
CP provided an update on VSS budget position.
There has been no change to the budget allocation since the last meeting, with VSS operating with a resource allocation of £20.44m. VSS have not yet received a formal response to the October monitoring request which mainly comprised the reallocation of £184k of capital on the MBMLW programme out of the resource budget and into a separate capital budget.
There is some pressure showing on INP frameworks and VSS are currently reviewing the full year budget forecast and will reallocate expenditure where possible as it is released from the corporate budget.
VSS have continued to see underspends in TPDPS as a result of vacant posts within funded organisations. In August, we distributed £288k through an additional in-year call process which also included reallocation of any known underspends at that point. We will continue to closely monitor for underspends and work with the groups to reallocate these as they arise.
The HIA budget is under pressure both for groups and INP frameworks. VSS are currently reviewing this budget in order to revise full year projections, and it is likely that additional funds may need to be requested to support demand.
MBMLW continues to see lower number of individuals than anticipated coming forward for support, and this is reflected in underspends in both groups and INP frameworks. VSS are currently reviewing this budget and anticipate an easement in the January monitoring submission.
High level PEACE PLUS reporting has been included in the budget report for the first time and will now be reported on each quarter.
Strategic Risk Register
VM discussed the Strategic Risk register. One risk was closed this quarter with four risks added, giving a total of nine risks currently open. VM provided a summary of each risk and anticipated point of de-escalation.
F Quarterly Reports
The Q2 reports were noted by the Committee. AW noted that the format of the M&E reports would provide more detailed statistical analysis in the Q1 and Q4 reports, with a focus on outcomes vs target and case studies in the Q2 and Q3 reports. JC noted that he and BL found the case studies informative; discussion entailed around the usefulness of case studies in providing demonstrable evidence of the impact of VSS activities.
G Internal Audit - Cavanagh Kelly
VM noted that the 2024/25 Internal Audit plan had already been approved by the Committee via email. CMcH led a brief update. Work has started on the first audit area (TPDPS) with Terms of Reference due to be finalised this week. All work is currently on track.
H External Audit Update – NIAO
AA provided the Committee with an update on the Draft Report to those Charged with Governance (RTTCWG), highlighting key findings. AA extended his thanks to the VSS finance team for their help with completing the audit.
It was noted that the Comptroller and Auditor General (C&AG) will certify the 2023-24 financial statements with an unqualified audit opinion, without modification.
AA noted that there are three priority 2 recommendations this year. Two of these findings relate to areas which were priority 1 recommendations in the 2022-23 audit, and AA noted that he wanted to recognise the work that VSS have completed in addressing these findings, resulting in their recurrence as priority 2 in 2023-24.
VM noted that management will draft responses to the audit recommendations and the final RTTCWG will be presented to the Committee at the next meeting. AW noted that all recommendations will be accepted by management.
The Committee noted the audit outcome as a great achievement for the organisation.
The ARC is content to note the draft RTTCWG and recommend the Annual Report and Accounts to the VSS Board for approval.
I Standing Agenda Items
I1 ARC Self-Assessment Action Plan
VM noted that the Action Plan has been updated following the self-assessment consensus meeting in August and summarised the first two actions. The Committee noted the remainder of the Action 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
Noted.
I6 Procurement Update Q2 24/25
Noted
I7 FD/DAO updates from DoF Q2 2024/25
No updates received in Q2 2024/25.
J Any Other Business
J1 ARC Annual Report
The Committee noted the report with no comments.
J2 ARC Terms of Reference
VM advised that the ARC Terms of Reference had been updated with minimal changes. The Committee confirmed approval of the Terms of Reference.
K Date of next meeting
The next meeting of the Audit and Risk Committee is scheduled to take place on 15th January 2025