Minutes of the VSS Audit and Risk Committee

Wednesday 15 January 2026 at 10.00am (Members only) and 10.30am (All attendees)

Online via MS Teams

ARC Members Present:

John Cahill – ARC Chair

Briege Lafferty – ARC Member

Brian Gilfedder – ARC Member

VSS Officers in Attendance:

Andrew Walker – Chief Executive Officer

Victoria Murray – Acting Head of Corporate Services

Adam Strong – Risk and Governance Manager

Brónach Twomey – Administrative Officer (Minutes)

Others in Attendance:

Caroline Laird – NIAO (External Audit)

Marcin Klimasz – The Executive Office (TEO)

Elicia Erasmus – Cavanagh Kelly (Internal Audit)

Apologies:

Courtney Powell – Acting Finance Manager

1. Opening, Minutes, and Actions

· The minutes of the previous meeting (15 October 2025) were approved.

· Cyber Security Risk: Review ongoing; to be brought back to ARC once completed.

· 13.08.25 AP2 and 15.10.25 AP1 closed

· No conflicts of interest were declared.

2. Accounting Officer / CEO Update – Key Issues

Victims Support Programme (VSP) Call:

· Funding call significantly oversubscribed (£12.3m bids vs £7.9m budget).

• 6 organisations did not meet required threshold; appeals possible.
• Management considering 3‑month extension to current programme to reduce impact of funding gaps.
• Psychological therapy for children/young people reintroduced; expression of interest open.

Budget 2025/26:

• No additional funding secured in December monitoring; VSS focused on full budget utilisation.
• Some underspend evident in MBIMLW and HIA, though corrections are underway.

MBIMLW Redress Preparation:

• Legislation progressing; scheme expected summer 2026.
• VSS modelling resource requirements and preparing cost proposals to TEO.
• Scaling of support services captured as major organisational risk.

Historical Institutional Abuse (HIA):

• Business case addendum being developed; significant budget gap identified
  (£13.6m required vs £5.3m original).
• Early budget clarity needed to plan delivery and avoid pressure on VSP resources.

Budget 2026/27 Outlook:

• Expected to be very challenging.
• Delayed budget decisions may again affect SDA payment timing, triggering client anxiety and increasing contact volumes.

TPDPS:

• Scheme ends August 2026; no indication of extension.
• Some partner organisations considering representation to SoS or Commissioner.

3. Finance and Budget Position

· December Monitoring Allocation received on 15 December 2025: £21,059k

· Troubles/conflict: Spend broadly on track, underspend reallocated to INP.

· MBMLW further easement of £128k projected.

· HIA underspend improving; £60k projected.

· TPDPS underspend risk remains, engagement with partners to maximise utilisation

· PEACEPLUS underspend due to delayed recruitment, extension request to SEUPB planned.

4. Organisational Risk Register

· Six strategic risks remain open, 3 amber and 3 red.

· Key Highlights:

· STG80 – Budget pressure remains at maximum score.

· STG82 – MBMLW redress scaling requires additional staffing modelling.

· STG84 – HIA 10‑year delivery risk linked to large budget gap under review by TEO.

· Risks related to PEACEPLUS sustainability and governance oversight also tracked.

5. Assurance and Quarterly Reporting

· Quarterly ALB Report and Assurance Statement noted.

6. Internal Audit

· Internal Audit Report on Corporate Governance presented, containing no audit recommendations for action.

7. External Audit

· 2024-25 accounts certified on 28 November 2025

· Final Report to those Charged with Governance presented by NIAO; two priority 2 audit recommendations accepted by management, one priority 3 recommendation (Board complement) partially accepted.

· 2025-26 Letter of Understanding noted by members.

8. Standing Agenda Items

· ARC Self-Assessment and Action Plan: Skills Matrix to be issued to members, cyber training action moved to Board. ESG and sustainability policy action remains open.

· No new audit recommendations in quarter, 2 of 4 P1/2 recommendations will close during next quarter.

· Gifts and hospitality paper noted

· Compliance paper noted, action to include indicative values against open fraud cases going forward.

· Procurement update: 3 business cases approved in quarter, 2 contracts >£10k awarded for legal services and independent appeals panel members.

· FD/DAO updates noted.

9. Any Other Business

· Health and Wellbeing Risk Register included for rotational review; amber risk related to RTN strategic outcomes with three year review upcoming.

10. Date of Next Meeting – 20 April 2026