Minutes of the VSS Audit and Risk Committee
Thursday 16 January 2025, 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) Acting Head of Corporate Services
Courtney Powell (CP) Acting Finance Manager
Adam Strong (AS) Risk and Governance Manager
Diksha Balodia (DB) Minutes
Others in Attendance:
Tanya Hamilton (TH) TEO
Steven Lindsay (SL) Cavanagh Kelly (Internal Audit)
Caroline Laird (CL) NIAO (External Audit)
A Apologies
Catriona McHugh (CMcH) Cavanagh Kelly (Internal Audit)
Andrew Allen (AA) NIAO (External Audit)
B Minutes
The minutes of the previous meeting on October 15, 2024, were approved.
C Action Points
AP1 January 2023:
VM provided an update. Operational risk registers have been created for each of the four departments within VSS, and these registers will be brought to the ARC for review on a rotational basis, commencing from summer 2025. The internal risk management strategy is now being updated to reflect the new structure and will be brought to the Board for approval in April 2025.
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 some key issues for comment.
VSP Planning
The new programme is set to commence in April 2026, and the business case with the Executive Office is in progress. At this time, a planning budget has not been provided, which could impact on the design of programme delivery models. Further, PEACE funding is due to end in 2028 which will have significant implications for service delivery. As a result, the business case will initially be for a two year period. TH concurred with this update.
Good levels of engagement were maintained across the sector through October and November. Budgetary limitations may trigger a significant revision of group funding models, which could lead to an increase in the number of appeals and review requests from groups during the funding call process.
The business case will require approval from the Department of Finance, which could impact upon the already extremely tight timeline for completion.
Board Appointments
AW confirmed no further update. BG noted the ambiguity of the First Minister’s response to the oral question raised in the Assembly regarding this matter, as it is not clear why Ministers are still considering the paperwork when successful candidates have been agreed through an appointments process. It was agreed that the issue will be discussed further in the upcoming Board meeting on January 22, 2025.
Budget Planning 2025-26
A draft budget for 2025-26 has been agreed by the Northern Ireland Executive and is now under public consultation until 13 March 2025, following which the approval process will commence. It is hoped that this approval process will enable allocation of budgets close to the start of the new financial year. If VSS are unable to issue Self-Directed Assistance payments as a result of delays to budget approval, an increase in client queries is expected in April.
Initial indications suggest that the opening budget allocation will be in line with the 2024-25 opening budget envelope. If this is the case, it will be a significant challenge for VSS to absorb the unavoidable pressures arising from staff pay awards and the increase in employer’s national insurance costs.BG queried whether additional funds would be provided by central government to cover the increase in national insurance costs. AW and BL elaborated, noting that if funds are provided, these would likely be through the mechanism of the block grant and subject to agreement by the NI Executive around their allocation. In addition, funds are only likely to be provided to cover costs related to public sector employees, and not for costs associated with staff posts in the wider sector to which VSS provides grant funding. VM noted that the cost impact related to posts in the sector is significantly higher than that for internal staff, due to the large number of external posts funded.
PEACEPLUS Cashflow
AW advised that whilst this had presented a significant issue at the time of writing papers, an update had been received from SEUPB in the past 24 hours and an interim process will be put in place to facilitate payment of staff costs claims in advance of verification. VSS are now working with project partners to upload claims for the initial project periods and the situation will be kept under close review.
MBMLW
The Public Consultation is now complete, and a response is awaited from the Executive Office. An ongoing issue exists regarding the definition of those impacted by MBMLW and consequently an individual’s eligibility to qualify for support and services at this time. This should be addressed when legislation comes into effect, and VSS expects an increase in demand for services following the commencement of the Public Inquiry and Redress Scheme.
Legacy
AW provided an update regarding the expected changes to legislation which have been announced by the Secretary of State. AW noted that the CEO of the ICRIR will be invited to attend a meeting of the VSS Board later in 2025.
Regional Trauma Network (RTN)
BG requested a diagrammatic representation of the distribution of PEACEPLUS funds across the various recipients in order to better understand VSS’s own position. AW advised that the VSS project represented €25m of funding out of a total of over €1 billion and noted that PEACEPLUS funds extend across many areas of government, and a far-reaching strategy will be needed to address any cessation in funding from 2028 onwards.
VSS is currently behind against the target of 100 RTN referrals from the Trusts to Community and Voluntary groups and is actively seeking to identify blockages and barriers through the Trusts to maximise the number of individuals on this referral pathway.
The PEACEPLUS project is fully live, and a full team of staff is now in place to manage it.
Organisational Restructuring
AW advised that the recruitment and restructuring initiative was complete with 28 new VSS staff positions being successfully filled this year.
Funding
£200,000 of additional funding has been allocated to the Troubles/conflict programme in the January monitoring round, and this has been used to meet funding bids from groups received earlier this year.
CEO Engagement
AW updated regarding the meeting with the Probation Board earlier this year. VSS were invited to share learnings regarding trauma-informed approaches within organisations.
AW met with the new TEO Permanent Secretary during the quarter and is scheduled
to meet the newly appointed Commissioner of NIVCO (NI Veterans Commissioner’s
Office) in the coming months.
E2 Budget Report
CP provided an update on VSS budget position.
The January monitoring allocations have been finalised and VSS has received an additional £200k of funding for Troubles/conflict and £40k of funding for HIA. VSS surrendered an easement of £331k on the MBMLW programme, as a result of the issues noted regarding lower numbers of individuals coming forward for support in the current year.
The Troubles/conflict budget is on track with 80% of provision spent. Group expenditure was overspent by £32k but this relates solely to timing of funded organisation Q2 claims and will be rectified by the provision of additional funds from the August 2024 funding call. Individual Needs Payments were underspent in December due to a decline in demand around the Christmas period, but this is expected to increase again in the final quarter.
Significant funds were distributed under the TPDPS programme in August, and these will be spent by funded organisations across Q3 and Q4. Q3 claims will be received from groups over the next two weeks across all programme streams and using this information VSS will reallocate funds as appropriate to try to ensure maximum budget utilisation.
The previous pressure observed within HIA funding, particularly the requirement for talking and complementary therapies, has reduced significantly during Q3, as focus has moved to the completion of Statements of Lived Experience in advance of the April deadline for redress applications. It is anticipated that there may be difficulty in spending the additional £40k allocated in the January monitoring round, but VSS is working with community partners to identify all possible uses for the funds.
It is anticipated that a further underspend will be projected under MBMLW, although VM noted that there is no further opportunity to surrender funds to TEO. VSS are working with community partners to maximise opportunities to provide support to individuals, and will keep TEO updated regarding any predicted underspends.
E3 Strategic Risk Register
VM discussed the Strategic Risk register. One risk was closed and superseded, and two were de-escalated. VM discussed and provided a summary of each risk on the register. 10 risks currently remain open.
F Quarterly Reports
The Q3 reports were noted by the Committee. VM advised that the Social Support target within the HIA report had now moved to a red rating as it is not expected to be met by the end of the year, due to the urgent need to refocus support to the completion of Statements of Recorded Lived Experience in advance of the deadline for redress applications. AW noted that the refocusing of support is evidenced through over-achievement of targets in other areas of HIA programme delivery, particularly in the area of advocacy support. VM noted that the quarterly ALB report included within the papers will be updated and resubmitted to reflect this change in anticipated outcome.
G Internal Audit - Cavanagh Kelly
SL provided a summary of the TPDPS Internal Audit Report. The overall assurance level was reported to be satisfactory and no issues or recommendations were noted.
SL provided an update on the progress of the audit plan for the rest of the year and noted that all audits should be completed by the end of the financial year as planned.
H External Audit Update – NIAO
CL noted that the Final RTTCWG had been included in papers however had been discussed in detail at the previous meeting of the ARC. Management had responded to and accepted the three audit recommendations in the last quarter. VM noted that actions to address the recommendations had already been implemented where possible, with remaining actions to be undertaken when appropriate over the coming months.
CL provided a verbal update regarding the audit plan for the coming year. The audit is expected to commence in February and be completed by October. The Audit Strategy will be issued to members in advance of the next audit committee meeting.
I Standing Agenda Items
I1 ARC Self-Assessment Action Plan
VM shared the action plan and sought comments against each item from the other members. Committee noted the points.
Item 7 - Management are currently preparing a report on Cyber Security in advance of the internal audit of Cyber Security processes schedule for Q4. An update will be provided to the Committee at the next meeting.
Item 9 - VM updated that research had been completed and a summary report would be prepared for the committee to review and discuss.
Item 11 – Performance appraisals VSS can assist with scheduling if required in line with the normal annual timeline.
I2 ARC Training Update and Requirements
Noted.
I3 Audit recommendations
AS shared updates. No new audit recommendations have been made this quarter. Six recommendations have been closed by management from the previous quarter, and these will be reviewed as appropriate by the auditors when completing their end of year audit activity.
VM noted that a specific action plan had now been put in place around the updating of the organisational Business Continuity Plan. BG asked what procedures VSS currently had in place regarding paper-based records. AW advised that the Information Officer (IRO) and Data Protection Officer (DPO) were now in post, and VSS would look into options for handling these records appropriately – either by digitizing them, or by putting them in secure off-site storage.
I4 Gifts and Hospitality Update
Noted.
I5 Compliance Update
AS updated the committee that the whistleblowing investigations were now closed, while other investigations are underway.
Four minor GDPR incidents were reported this quarter, and appropriate mitigating actions were undertaken in response. AW emphasised that learnings would be integrated in organisational practices with a dedicated Data Protection Officer (DPO) in post.
I6 Procurement Update Q2 24/25
CP updated that no new business cases or contracts were awarded. Two existing contracts had been extended, while currently active tenders would be awarded by the next quarter.
I7 FD/DAO updates from DoF Q2 2024/25
Noted.
J Any Other Business
BL queried whether VSS will need to make any changes to processes as a result of the new Prompt Payments requirements arising from the Procurement Act 2025. VM advised that she was not aware of any impacts but that this should be noted as an Action Point for follow up and confirmation.
K Date of next meeting
The next meeting of the Audit and Risk Committee is scheduled to take place in April 2025. (Date to be confirmed).