AUDIT COMMITTEE
MINUTES OF PROCEEDINGS
THURSDAY 9TH DECEMBER 2010
ROOM 135, PARLIAMENT BUILDINGS
Present:
Mr Jonathan Craig (Chairperson)
Mr Samuel Gardiner (Deputy Chairperson)
Mr Tommy Gallagher
Mr Paul Maskey
In Attendance:
Mr Paul Gill (Assembly Clerk)
Ms Hilary Bogle (Assistant Clerk)
Mr Michael Greer (Clerical Supervisor)
Mr Christopher McNickle (Clerical Officer)
Apologies:
Dr Stephen Farry
The meeting commenced at 12.03pm in open session.
Chairperson’s Introduction
The Chairperson welcomed Members to the meeting.
Agreed: The Committee agreed that the Chairperson should write to Mr Peter Weir thanking him for his contribution as Chairperson of the Committee.
1. Apologies
Apologies as above.
2. Declaration of Interests
The Chairperson reminded Members of their obligation to declare any relevant financial or other interests before and during each Committee meeting.
3. Draft minutes of the meeting held on 3rd March 2009
Agreed: The draft minutes of the meeting held on 9th March 2010 were agreed by the Committee.
4. Matters arising
There were no matters arising.
5. Annual Report and Accounts 2009-10
Members examined the NIAO Annual Report and Accounts for the year ended 31 March 2010 together with the Audit Findings Report prepared by Baker Tilly Mooney Moore, dated 14 June 2010.
The Chairperson welcomed Mr Kieran Donnelly, Comptroller and Auditor General; Ms Janet Sides, Assistant Auditor General; Mr Joe Campbell, Audit Manager; and Mr Tomas Wilkinson, Audit Manager, NIAO. The Chairperson invited Mr Donnelly to present the key issues emerging from the Annual Report and Accounts.
12.12pm Mr Gardiner joined the meeting.
The Committee paid tribute to the work carried out by the NIAO during 2009-10 and congratulated the NIAO on the success of one of its trainees in achieving the highest mark nationally in a CIPFA examination.
Following discussion the Chairperson thanked Mr Donnelly and his colleagues and invited them to remain for the next item of business.
Agreed: The Committee agreed that it was content with the NIAO Annual Report and Accounts for the year ended 31 st March 2010.
6. Outlook for NIAO Budget 2011-12 – 2014-15
Before addressing the main item under this agenda item, Members noted a tabled paper from the NIAO detailing a proposed supplementary estimate.
The Chairperson invited Mr Donnelly and his colleagues to brief the Committee on this issue.
Mr Donnelly explained the reasons why the negative supplementary estimate was required.
Agreed: Following discussion the Committee approved the NIAO’s supplementary estimate and welcomed assurances in relation to NIAO’s future financial performance.
The Chairperson briefed members on the discussions he had with the NIAO about the need to identify significant efficiencies over the next four years. The Chairperson then invited Mr Donnelly and his colleagues to brief the Committee on the future efficiencies which the NIAO had subsequently identified.
The Chairperson also invited Mr Colin Pidgeon, Assembly Research to brief the Committee on his Research Paper. The paper compared the NIAO’s proposed reductions to the overall reduction to the Northern Ireland Executive’s Departmental Expenditure Limit and to the planned reductions to the budgets of other audit bodies in the UK.
The Committee questioned Mr Donnelly and his colleagues about the level and scope of the proposed efficiencies and noted that they represented the maximum reduction that could be made whilst still maintaining the same quality and extent of service to the Assembly that has been offered in recent years.
Following discussion the Committee thanked Mr Donnelly and his colleagues for attending the meeting.
12.35pm Mr Gallagher joined the meeting.
Agreed: The Committee agreed that the Northern Ireland Assembly Research Paper be forwarded to the NIAO.
12.36pm The Committee moved into closed session.
Agreed: Following discussion the Committee agreed that the Chairperson should write to the NIAO indicating that the Committee would expect to see a reduction of at least 10% in cash terms to its budget over the four year period 2011-12 to 2014-15, based on a baseline of its allocation for 2010-11 and that the NIAO should prepare its corporate plan on this basis. The correspondence should also make clear that the Audit Committee is committed to ensuring that the NIAO has the resources necessary in order to ensure that it can provide effective support to the Northern Ireland Assembly in its task of holding Northern Ireland departments, executive agencies and other public bodies to account for their use of public money.
Agreed: The Committee agreed that the Research Paper be published on the Assembly’s website.
7. Correspondence
Agreed: Members noted correspondence received from the Minister for Finance and Personnel re spending requirements for this year and agreed that correspondence should be sent in response to the Minister outlining the Committee’s consideration of this issue and on the issue of the NIAO Budget outlook for 2011-12 to 2014-2015.
Agreed: Members agreed that Committee should in future meet prior to the NIAO’s participation in in-year monitoring rounds.
8. End of Session Report 2009-10
Agreed: The Committee agreed the draft End of Session Report for 2009–10, as amended.
9. Any other business
Agreed: Members agreed the distribution list for the e-Christmas Card.
10. Time, date and place of next meeting
Members will be informed of the date of the next meeting of the Audit Committee in due course by committee staff.
The Chairperson adjourned the meeting at 12.51pm.