MINUTES OF THIRD MEETING OF THE AUDIT COMMITTEE AT THE NORTHERN IRELAND AUDIT OFFICE, UNIVERSITY STREET, BELFAST ON FRIDAY 22 SEPTEMBER 2000 AT 12:30PM.

Present:
Mr John Dallat (Chairman) Mr Billy Hutchinson (Deputy Chairman)
Mr Mark Robinson

In Attendance:

1.Apologies

Derek Hussey and Gerry McHugh.

2. Draft minutes of meeting on 27 June 2000

Agreed. Proposed: Billy Hutchinson. Seconded: John Dallat.

3. Matters Arising

3.1 Scope of the Audit Committee

Noted.

Although the Audit Committee has a similar role to the Public Accounts Commission at Westminster, its powers are more limited. Members had briefly considered previously, whether they could increase their remit, and the ramifications.

Agreed.

Clerk to prepare a paper for consideration at the next meeting in January detailing:

• the areas into which the Committee could extend their remit

• the effects of increasing their scope and

• the legal mechanisms needed to implement any change i.e. any legislative changes required and how these may be carried out.

4.Chairman's Business

4.1Comptroller & Auditor General's Salary

Noted.

Following Devolution, the Comptroller and Auditor General's (C&AG) salary is to be set by Resolution of the Assembly. Under Direct Rule, the Department of Finance and Personnel (DFP) had agreed that the C&AG should be paid broadly in line (plus or minus 5%), with the salary of a Permanent Secretary in Northern Ireland. However, the Public Accounts Commission at Westminster had been concerned that the salary of the C&AG should not be related to performance, as Permanent Secretaries' salaries are. Accordingly, the salary of the C&AG (NI) is also linked to the spot rate (not a scale) for a Judicial Grade 5.

An increase in salary was due from 1 April 2000, and DFP had written to the Clerk on 7 September 2000 to determine the Audit Committee's role in the process. If Members were content to assume a role in this area, DFP will draft a Resolution to increase the salary of the C&AG. The Audit Committee will contribute to the debate in plenary.

The Northern Ireland Act Part VI Section 65 Paragraph 6 specifies that "the Assembly shall not have power under Article 4(1) of the Audit (Northern Ireland) Order 1987 to pass at any time a resolution which reduces the salary payable to a person holding the office of Comptroller and Auditor General for Northern Ireland at that time".

Legislation provides no powers of retrospection to the Assembly, in setting the C&AG's salary.

Agreed.

In view of the Committee's function of overseeing the expenses of the NIAO, and of the importance of assuring the independence of the C&AG, it was appropriate for the Committee to advise the Assembly in its determination of the C&AG's salary and the legal requirements, taking into account the approach advocated by DFP.

Members were content with the current linkages on which the C&AG's salary is based. DFP's advice would be taken annually, as to whether the current linkages continued to be appropriate.

The Deputy Chairman noted that the Assembly has no role in relation to arrears due for the period 1 April - 30 May 2000, during which Devolution had been suspended.

The Chair and Deputy Chair will provide advice on behalf of the Audit Committee, taking account of the Assembly Legal Adviser's views on the C&AG's salary increase for this year, and how to deal with arrears from 1 April 2000, including those due under Direct Rule. DFP will lay the Resolution.

5.Presentation by NIAO (Open Session)

Noted.

A letter from DFP was tabled confirming that the Department had considered the NIAO's Corporate Plan for 2000/01 - 2002/03 and were satisfied with the objectives, work programme and forward plans, contained within it.

The following officials from the Northern Ireland Audit Office attended the meeting:

• John Dowdall - Comptroller and Auditor General

• John Savage - Director of Personnel

• Janet Sides - Strategy and Business Planning

Mr Dowdall gave a brief presentation on the NIAO's strategic objectives and its Corporate plan for 2001 - 2003. Officials then fielded questions from Members until 1:40pm.

Agreed.

The Committee noted and approved the NIAO's Corporate Plan for 2000/01 - 2002/03.

6.AOB

(a)Draft Press Notice

Agreed.

(b)Date of Next Meeting

Agreed.

The Committee would meet in early January to examine and, if content, approve the NIAO estimates for 2001/02. These are to be laid before the Assembly by March 2001.

Meeting closed at 1:50pm.

JOHN DALLAT

Chairman

27 June 2000 / Menu / 5 December 2000