SECRETARIAT AUDIT AND RISK COMMITTEE (SARC)
THURSDAY 23 APRIL 2009
ROOM 29, PARLIAMENT BUILDINGS
Members: Alan McQuillan, Chairperson
Colm McKenna
Attendees: Trevor Reaney, NIA
Stephen McCormick, NIAO
Brian Moreland, NIA
Richard Stewart, NIA
Georgie Campbell, NIA
Glenda Grant, NIA
Carla Campbell, NIA
David Johnston, NIA, Secretary
1 APOLOGIES
1.1 Apologies were received from Alban Maginness MLA.
2 INTRODUCTION
2.1 Alan McQuillan welcomed everyone to the first meeting of SARC since his appointment as independent Chairperson and that of Colm McKenna as independent member. He expressed his thanks for the helpful induction programme that had been provided and acknowledged that while many of the difficult issues from the past would not be resolved immediately, good progress, including the establishment of SARC, was being made. He looked forward to SARC playing an active role in providing assurance, advice and support to the Assembly Commission and Secretariat Management Group and to assisting in the delivery of value for money.
3 MINUTES OF LAST MEETING
3.1 The draft minutes of the meeting held on 17 December 2008 were approved without amendment.
4 MATTERS ARISING
4.1 Paragraph 5.4
It was noted that the draft report on the Information Security Review had issued.
4.2 Paragraph 5.9
Brian Moreland provided the new members with details relating to this investigation. It was noted that controls had been reinforced and improved, and that the case was now closed.
4.3 Paragraph 5.11
Brian Moreland introduced Glenda Grant, Internal Auditor, and Carla Campbell, Clerical Supervisor, to the new members, and he reported that the Internal Audit unit would return to full strength in June 2009.
4.4 Paragraph 9.1
It was noted that the estimated open market value of Ormiston House at £6m was an increase over the "existing use" value and would be shown in the 2008-09 accounts as an increase in the asset base.
5 SARC TERMS OF REFERENCE
5.1 Alan McQuillan expressed his thanks to those who had produced the second draft at short notice. Trevor Reaney stated that the amendments incorporated in the terms of reference had enhanced the document and set it in the context of the Governance Framework. The matter of areas of shared responsibility for the site and common services was raised, and it was acknowledged that robust Service Level Agreements would enable associated risks to be managed.
It was agreed to log areas of shared responsibility as a risk to be monitored through the Risk Registers process.
ACTION: TREVOR REANEY / GEORGIE CAMPBELL
5.2 It was further agreed that correspondence between the Assembly and the Department of Finance and Personnel on the matter of responsibilities would be an agenda item for the June meeting of SARC.
ACTION: RICHARD STEWART / DAVID JOHNSTON
5.3 The revised draft Terms of Reference were accepted by the Committee. A letter is to be drafted for the Chairperson to send to the Speaker advising him of this, and the SARC Terms of Reference are to be placed on the agenda for the Assembly Commission meeting on 21 May 2009 for formal approval.
ACTION: GEORGIE CAMPBELL
6 INTERNAL AUDIT ACTIVITY / ASSURANCE
6.1 Brian Moreland provided an update on the progress of a number of Internal Audit reports, of which the following have now issued in final form: Education Service, Gifts and Hospitality, and Use of Taxis. Draft reports have also been issued in respect of Information Security, Assembly Members’ Pension Scheme, Payroll and Outsourced Service Contracts.
6.2 Recommendations were made regarding the development of information management and information security policies, including consideration of key information risks per Directorate and arrangements for staff leaving the organisation.
On the use of Taxis, it was noted by Internal Audit that the overall spend for taxis has fallen; however, during testing there were a number of occasions of non-compliance with the revised guidance, including self-certification and insufficient information on taxi vouchers. Recommendations were also made regarding the number of taxi voucher books in circulation.
6.3 Brian Moreland reported that three audits (Payroll, Assembly Members’ Pension Scheme and Outsourced Service Contracts) were carried out externally by a contracted internal audit firm.
Discussions are under way to establish management responses to the recommendations made and obtain final reports.
It was suggested that once these reports are complete, the Clerk/Director General should write to the external provider giving feedback as appropriate.
ACTION: BRIAN MORELAND / TREVOR REANEY
6.4 The draft Internal Audit plan was discussed and considered to be a positive development. A number of suggestions were made regarding the weightings and consistency of scale used in the planning matrix for the plan, and it was agreed that further consideration would be given to the multipliers for each of the criteria. It was agreed to adopt the 2009/10 draft plan. However, the balance between internal and external activity is to be reviewed, and follow-up audits and a contingency reserve are to be built in. A revised plan is to be provided for the June 2009 SARC meeting.
ACTION: BRIAN MORELAND
7 NIAO: NI ASSEMBLY AUDIT STRATEGY 2008/09
7.1 Stephen McCormick presented the NIAO’s Audit Strategy document 2008/09 for the NI Assembly. He outlined the scope, approach, timing, and risks identified. The strategy follows a standard format and methodology.
In relation to the Corporate Governance risk identified, Trevor Reaney explained that the Commission would shortly be signing off a report on the implementation of the Secretariat Review Report, and copies of the report will be brought to the June 2009 SARC meeting.
ACTION: TREVOR REANEY
7.2 Discussion took place regarding the timing of the Accounts and the arrangements for scrutiny by SARC members.
8 ACCOUNTS COMPLETION TIMETABLE AND SARC
TIMETABLE
8.1 It was agreed that an informal meeting of SARC members, with the Clerk/Director General and Director of Resources present, would take place on the afternoon of Tuesday 19 May 2009 to discuss the latest working draft of the accounts (papers to issue on Friday 15 May 2009).
ACTION: RICHARD STEWART / DAVID JOHNSTON
8.2 A full meeting of SARC will take place on 24 June 2009 to oversee the final accounts and statements. Thereafter, SARC will meet on Wednesday 9 September 2009.
ACTION: RICHARD STEWART / DAVID JOHNSTON
9 CORPORATE RISK REGISTER
9.1 The Corporate Risk Register, as at April 2009, was noted. It was acknowledged that a new Director team is in place and that the register will evolve over time. Colm McKenna undertook to provide some paperwork relating to the suggested development of the register.
ACTION: COLM McKENNA
10 STEWARDSHIP STATEMENTS
10.1 The Stewardship Statements, as at 31 March 2009, were noted. Again, it was acknowledged that these are part of an evolving process.
11 OUTSTANDING AUDIT RECOMMENDATIONS
11.1 It was agreed that a log of outstanding audit recommendations made since the publication of the Secretariat Review Report would be produced for the June 2009 SARC meeting, and subsequent meetings. This will help to drive up assurance levels. The log will cover internal audit recommendations, external audit recommendations, and recommendations arising from other governance reviews. Once a recommendation is implemented, it will be removed from the log.
Trevor Reaney stated that the log would also become a standing agenda item at the Secretariat Management Group.
ACTION: BRIAN MORELAND
12 SECRETARIAL ARRANGEMENTS AND BUDGET FOR SARC
12.1 Alan McQuillan stated that he was happy with the secretarial arrangements and budget. It was agreed that expenses claims for the Chairperson and member will be submitted via the Clerk/Director General.
13 AOB
13.1 Trevor Reaney welcomed Alan McQuillan and Colm McKenna and offered every assistance from Secretariat staff as they undertook their new roles.
14 DATE OF NEXT MEETING
14.1 See paragraph 8.1. The next full meeting of SARC will take place
on Wednesday 24 June 2009 at 10.00 am in Room 29, Parliament
Buildings.
ACTION: DAVID JOHNSTON
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