DRAFT Minutes of the VSS Audit and Risk Committee

Wednesday 15 October 2025, 10.30am

MS 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

 

Others in Attendance:

Andrew Allen (AA)                      NIAO (External Audit)

Marcin Klimasz (MK)                    TEO

Elicia Erasmus (EE)                   Cavanagh Kelly (Internal Audit)

 

A       Apologies

 

B       Minutes

 

          The minutes of the previous meeting on August 13, 2025, were approved.

 

C       Action Points

 

Action Points remaining open from previous meetings:

-       13.08.25 AP1: Management to consider inclusion of Cyber Security risk on the Organisational Risk Register. The Cyber Security risk register is under review by management and will be brought to ARC when complete.

-       13.08.25 AP2: Further management of Cyber/digital risks to be discussed at Board level within consideration of wider business continuity planning. JC and BG in agreement that this be discussed at Board.

Action Points arising from 15 October 2025

-       AP1: Board remuneration to be included as an agenda item at the upcoming Board meeting scheduled for 22nd October.

 

 

D       Conflict of Interest  

No conflicts of interest were noted.

 

E       Accounting Officer Update

 

E1 CEO/AO Exception Report

AW provided a summary of the CEO exception report and pulled out the key issues for comment.

 

VSP Planning

The Victims Support Programme funding call opened on 1st September and will close on 6th November at 12 noon and VSS has held information sessions for potential applicants at a number of locations across Northern Ireland.

Detailed preparations are now underway for the funding call assessment process which is planned to run from 6th November through to the middle of March and will require significant resource from across the organisation. During this time, business as usual activity will be restricted to a minimum within the Community Partnerships and Finance teams as detailed assessment of applications is completed.

VSS continues to engage with TEO to seek additional funding for the Victims Support Programme above the current planned baseline level. In the absence of additional funding, the process for allocation of funding to approved bids will be difficult, with a significantly increased risk that fewer organisations will be able to be supported.

 In September, the Troubles Permanent Disablement Pension Scheme (TPDPS) funding request paper was resubmitted to TEO, focused on additional Health and Wellbeing requirements and the justification for these to be allocated higher funding from the TPDPS ringfenced allocation. The paper is now with the TEO Finance Director for consideration – if approved this would enable VSS to increase available funding for allocation to the VSP funding call bids.

 

 

 

Budget Allocation 2025/26

VSS is continuing to experience pressure within the Troubles/conflict budget allocation, particularly in relation to INP framework expenditure on Disability Aids for the bereaved. VSS has submitted bids in the October Monitoring return to TEO for corporate costs and INP award expenditure, however it has been communicated that the Executive is facing very challenging decisions in respect of issues including public sector pay, and therefore the October Monitoring round will not exist as would normally have been expected. At this time, VSS has been directed to assume that no bids will be met or considered – however we await confirmation of that outcome. In the absence of additional funding, it is now appearing more likely that restrictions may need to be placed on INP frameworks before the end of this financial year.

In the context of the restricted budget, BL asked how the allocation of funding to individual groups would be decided within the VSP funding call. AW provided detail of the allocation process, and noted that this would be a framework that takes into consideration the objectives of the programme overall, including regional coverage and access routes to support for individual victims and survivors.

 

MBMLW

The Inquiry (Mother and Baby Institutions, Magdalene Laundries and Workhouses) and Redress Scheme Bill is moving through the legislative process and has now reached the Committee stage which will extend to 26th January 2026.

VSS, along with WAVE and Adopt NI, are now engaged with the Shadow Truth Recovery and Redress Panel (TRRP) to consult on and support the design of the standardised redress scheme application process and associated support provision. Detailed resource requirements have been requested from our community partners, and once received we will model these and provide a request to TEO for any additional resources needed on top of existing approved business case provision.

Discussion ensued around the likely progress of the Bill through the Executive and timelines for commencement of the redress scheme.

 

Appointment of Victims Commissioner

Joe McVey has been appointed as the new Commissioner for Victims and Survivors for Northern Ireland and will take up his post on 6th October 2025 for a period of four years. AW noted that he will meet with CVS and the new Commissioner on 21st October 2025.

 

Legacy Framework

The Legacy of the Troubles: A Joint Framework between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland (the Legacy Framework) was published on 19th September 2025. On 14th October, the UK Government introduced the associated legislation to repeal and replace the Legacy Act 2023.

AW noted that the response from political parties and the wider community has remained cautious, largely reserving judgement until the formal draft legislation can be reviewed in detail. AW has however noted language to the effect that the concepts contained within the framework could be deemed to be acceptable if they are implemented in good faith. A meeting of the VSS Advocacy Support Network is scheduled for Thursday 23rd November and further indications of community and voluntary sector views will be obtained there.

 

VSS Board

As committee members are aware the interim chair of the VSS Board stepped down from that position on 2nd October, but will remain as a Director. VSS is awaiting TEO guidance regarding next steps. BG acknowledged the difficulty of the current situation but noted that members have full confidence in the VSS senior management team, and his expectation that any difficulties arising should be addressed shortly by an alternative interim solution to allow the Board to continue functioning. BL expressed concern regarding the pressure on current members arising as a result of the ongoing wider issue with Board complement. AW outlined the measures currently being taken to mitigate against pressure on members and the ongoing engagement with TEO on the matter.

AW assured members that everything that can be done is being done and he hopes to see a resolution to the current issue as soon as possible.

 

E2 Budget Report

CP provided an update on the VSS budget position.

VSS October monitoring return was submitted on 20 August with a bid for £225k additional funds for Troubles Conflict and an easement £880k declared in MBMLW, comprised of £975k resource easement offset by £95k bid for additional capital in respect of WAVE building works.

Troubles/conflict Expenditure is at 63% of budget due to the SDA payment run (£3.8m) completed in April 2025. Excluding SDA, expenditure is at 37% of full year budget at the end of Quarter 2 versus planned budget consumption of 36%. Spend to date is higher than forecast due to overspends arising within INP expenditure.

TPDPS expenditure is at 44% of full year budget, which is lower than the forecast of 47% budget consumption. This is mainly due to underspend arising within funded organisations due to vacant posts.

HIA expenditure is at 41% of full year budget which is lower than the forecast of 44% budget consumption. This is due to underspends arising in INP expenditure, with demand for services in 25/26 lower than trends seen in 24/25.

MBMLW expenditure at 38% of full year budget, which is lower than the forecast of 43% budget consumption. This is due to underspends arising in INP expenditure, with demand for services in 25/26 lower than forecast.

 

E3 Organisational Risk Register

VM provided a summary of the Organisational Risk Register.

8 risks remain open – 3 scored red, 3 amber, and 2 yellow. VM led a discussion of key changes across the open risks:

STG50: Remains red. As noted by AW, management were taking actions to mitigate against the increased risk score.

STG71: Has reached de-escalation point. VM noted that this has been reviewed again and the view has been taken that though the likelihood remains probable, the impact score can be reduced as a result of increased activity levels and outputs within the RTN.

STG75: Risk score reduced in the quarter and de-escalated as controller and rapid verification activity over the quarter has resulted in payment flowing from SEUPB. Risk can now be managed operationally.

STG81: This risk can now be de-escalated to operational level following publication of redress and inquiry bill and movement on that process through TEO. VSS has not experienced any notable reputational issues associated with the Truth Recovery process to date.

STG82: New risk added that VSS and partners are not able to scale up MBMLW support services in line with commencement of the redress scheme. VM stated that this reflects where we are in the process, at this point we do not have the necessary arrangements in place to support the proposed commencement date. Over the coming months VSS will work through planning with TEO and community partners in order to get the necessary approvals and staffing structures in place. Hopefully risk can be de-escalated in the first half of 2026.

STG83: New risk added associated with VSS service delivery model after PEACEPLUS project ends. The commencement of work on the VSS corporate plan 2026-29 has brought increased focus onto 2028-29, which falls post the end of the current approved VSP business case and the PEACEPLUS project.  At this time VSS does not know what our funding model will look like and what funding will be in place to replace those critical elements of PEACEPLUS, the Health and Wellbeing network and the Advocacy network. VSS has commenced engagement with TEO on this and it is important to escalate the risk to the organisational level.

 

F       Quarterly Reports   

         

VM advised that the Quarterly ALB Report and Quarterly Assurance Statement had been provided to TEO at quarter end and were included for noting. There were no questions from members.

 

G       Internal Audit

 

EE advised that Cavanagh Kelly has merged with Cooper Parry and will be known as Cooper Perry going forward.

 

EE presented the Internal Audit plan for 2025/26 and noted that this was in line with what had been discussed and agreed at the previous ARC meeting.

 

BG asked for assurance that our standing with the internal auditor has not changed in any way due to recent merger of Cavanagh Kelly with Cooper Parry and EE assured that there had been no changes. AW stated that all arrangements with original contract remain in force, and VM noted that as this was the final year of the contract a procurement exercise would be undertaken early in 2026 to appoint the internal audit service provider for 2026/27 onwards.

 

 

H      External Audit Update

 

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 2024-25 financial statements with an unqualified audit opinion, without modification.

 

AA noted that there are three audit recommendations this year, two priority 2 and one priority 3. The two priority 2 recommendations are consistent with the previous year and relate to grant claims received from VSS funded organisations and findings related to the procurement undertaken, accuracy of claims, and errors in supporting documentation. AA noted that NIAO is satisfied that VSS are identifying all issues with grant claims during verification processes. The priority 3 recommendation relates to the VSS Board complement.

 

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.

 

VM noted that an updated version of the Annual Report and Accounts (AR&A) had been included within members papers along with a summary of changes. Due to the recent resignation of the VSS Interim Chair, discussions have been held with NIAO regarding amendments to the AR&A and signatories. The following changes are proposed for agreement by committee members:

 

-       S Horley to sign the Foreword to the AR&A on behalf of the Board in her capacity as a Director of VSS

-       S Horley to sign the remaining sections of the AR&A as a Director of VSS

-       Insertion of comment on Page 88 regarding current status of Chairperson position, after update has been received from TEO

 

Members confirmed that they were content with the proposed changes. The ARC is content to note the draft RTTCWG and recommend the Annual Report and Accounts to the VSS Board for approval, following the insertion of update of status of Chairperson position.

 

           

H1    Annual Report and Accounts – For Approval.

 

AA provided a verbal update. JC said committee are happy to recommend the accounts to the Board.

 

         

I         Standing Agenda Items

 

I1      ARC Self-Assessment Action Plan

 

VM provided a summary of current status of those action plan items remaining open.

 

1.19 Deep dive on risk areas. AW noted his view that this action be closed following commencement of quarterly provision of operational risk registers to ARC. Members agreed to close this action, with wider action in relation to Cyber Risk held as a Committee action point.

1.21 Skills Matrix. Action open and can hopefully be taken forward next quarter.

1.22 ARC and Board meeting scheduled to be agreed in new year. Green and on track.

2.22/2.23 ESG and Sustainability. No progress on this action during the quarter however remains on workplan for the year.

 

 

I2      ARC Training Update and Requirements

 

VM provided a summary of the CIPFA Public Finance Live event attended with BG on Tuesday 14th October and noted the focus on AI and associated HR matters.

 

I3      Audit recommendations

 

AS shared that there were no new recommendations in the previous quarter. There have been three audit recommendations since which will be included in the register. AR286 has been closed, there are still five open, which are making good progress.

 

I4      Gifts and Hospitality Update

                  

Noted.

 

I5      Compliance Update

 

AS provided an update on open cases of suspected fraud. One case FR53 is drawing to a close with a caution and repayment plan proposed. One new case FR58 was added during the quarter. Members noted the rest of the paper with no questions.

 

CP Left the meeting.

 

I6      Procurement Update Q2 25/26

 

VM stated that two contracts have been awarded in this period. AS currently working with CalQRisk the new risk management software provider to have VSS risks input into their system and to design and develop reports for output. BL noted update required to the procurement limits contained on the paper, and VM agreed that these should be amended going forward.

 

I7      FD/DAO updates from DoF Q2 2025/26

The Committee noted the paper. AW highlighted FD (DoF) 05/25 Remuneration of Chairpersons and Members of Public Bodies 2024-25 to members and suggested that this be further discussed at the next Board meeting, BG confirmed agreement.

 

 

 

I8      ARC Terms of Reference (for annual approval)

VM advised that the ARC Terms of Reference have been updated in line with the new Board Operating Framework and Corporate Governance Framework and submitted for annual approval.

 

Discussion was held around meeting requirements. JC noted that item 4.10 cannot happen unless arranged by TEO, and VM suggested an amendment to the wording to this effect.  The requirement to meet with the external auditors at least once per year was discussed and AA confirmed that this is good practice and should be included within the ARC schedule. It was agreed that this could take place prior to the October meeting each year to align to the conclusion of the audit process.

 

          The ARC Terms of Reference were approved by Committee.

 

Briege Lafferty left the meeting.

 

 

J        Any Other Business

 

J1       PEACEPLUS Risk Register

Noted.

 

K       Date of next meeting

 

The next meeting of the Audit and Risk Committee is scheduled to take place on 15th January 2026.