Meeting of the Audit & Risk Committee
A meeting of the Audit & Risk Committee was held on Tuesday 14 February 2012 at 10.30am
in the Board Room, Denholm House, Livingston
Present:
Sir Andrew Cubie (Chair)
Charles Lovatt
David Morrison
Iain Nisbet
Shirley Young
In attendance :
Ruth Brown (External Auditor)
Laura Burman
Les Henderson (Internal Auditor)
Gillian Howells
Catherine MacIntyre
Bill Maxwell
Stuart Robinson
Allan Smith (Internal Auditor)
Caroline Stafford
Apologies:
Morag Campsie (External Auditor)
1.0
Welcome and Apologies
Noted 1:
2.0
Sir Andrew welcomed everyone to the meeting and the above
apologies were noted.
Minutes and Action Log of the meeting held on 5 December 2011
Noted 1:
Notwithstanding the amendments from Les which were noted, the
Minute of the previous meeting was approved as an accurate record.
Noted 2:
Action 7 – Internal Audit Update
To date there had not been a response from Scottish Government
following the request for assurance around the negative balance
sheet and end of year financial position. There was acceptance that
this was likely to fall far short of a letter of comfort and is more likely
to be a statement of the difference in funding mechanisms for an
executive agency rather than a NDPB.
Action 1:
Les agreed to send Caroline revised wording for item 3.2 and
item 9 of the previous Minutes.
Action 2:
Stuart and Gillian would continue to pursue Scottish
Government Finance Department for a letter of comfort and
would keep the Audit & Risk Committee informed of
developments.
Action 3:
Caroline to update the Minute incorporating amendments from
Les and arrange for the Minute and Action Log to be published
on the Education Scotland website, subject to any FOI
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exemptions.
3.0
4.0
Matters arising
Noted 1:
The Complaints Policy would now be discussed at a meeting of the
Corporate Management Group on 5 March 2012. It would then be
circulated to the Audit and Risk Committee before the next meeting
on 7 June 2012.
Noted 2:
The Risk Management Strategy would be discussed at a meeting of
the Corporate Management Group on 5 March 2012 where it would
then be placed on the agenda for the next meeting of the Audit and
Risk Committee on 7 June 2012.
Noted 3:
The Committee was content that all issues regarding the transfer of
ex LTS funds to Scottish Government had been resolved.
Action 1:
Catherine to arrange for the Complaints Policy to be circulated
to the Audit and Risk Committee before the next meeting on
7 June 2012.
Action 2:
Catherine to arrange for the Risk Management Strategy to be
placed on the agenda for the next meeting of the Audit and Risk
Committee on 7 June 2012.
Declarations / Register of Interests
Noted 1:
The Register of Interests was tabled at the meeting and there were
no further declarations made.
ITEMS FOR DISCUSSION
5.0
6.0
Corporate Performance Report (as at 31 December 2011)
Noted 1:
The Committee reviewed the report on corporate performance and
noted that, as requested at the last meeting, descriptors had been
added to the former HMI directorates.
Noted 2:
Stuart spoke to the report and highlighted a number of areas where
risks had been identified around an increased underspend against
budget.
Review of Corporate Risk (as at 31 December 2011)
Noted 1:
Laura highlighted changes to the report from the last meeting, in
particular, the Organisational Development Programme register with
regard to the risk of failing to secure buy in of Education Scotland
Staff.
7.0
Finance
7.1
Finance Report as at 31 December 2012
Noted 1:
Audit & Risk Committee
14 February 2012
The Committee noted the finance report as at 31 December 2012 and
the summary given by Gillian around the current budget out turn
projections.
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7.2
8.0
9.0
10.0
Update on Budget 2012 / 13
Noted 1:
The budget position would be reviewed following the closing date for
applications from former LTS staff who were applying for the
Voluntary Exit Scheme. The closing date for applications was 15
February and thereafter it would be possible to gauge level of costs
involved.
Action 1:
Stuart agreed to circulate a statement of the budget for future
years and explain issues around Glow, CLD and Scotland’s
Colleges funding.
Development of Annual Business Plan 2012 / 13
Noted 1:
Sir Andrew recalled that the Committee had asked Alastair Delaney
to attend this meeting to give an update on the progress of the
business planning exercise and also the emerging governance
arrangements for Education Scotland. Sir Andrew then invited
Alastair to speak to the presentation which he had circulated.
Noted 2:
The Committee noted that the Corporate Management group had
been provided with an update on the business planning cycle and the
outline governance structure which was proposed and accepted by
CMG.
Agreed 1:
All agreed this had been a helpful update from Alastair and that it was
good to have a close insight around the business planning cycle.
Audit Scotland Plan
Noted 1:
Ruth circulated Audit Scotland’s proposed audit plan for 2011 / 12
which had been agreed with Stuart and Gillian.
Noted 2:
Members of the Committee noted Ruth’s summary of key points
contained within in the plan and were also pleased to note the
collaborative working with internal audit colleagues.
Noted 3:
Les confirmed that internal audit were happy to meet all the
timescales set out in Ruth’s report.
Review of Draft Certificate of Assurance
Noted 1:
The Committee noted Stuart’s summary around the purpose of the
Certificate of Assurance in underpinning the Statement on Internal
Control that forms part of the audited accounts. The certificate was
draft at this stage and had yet to be signed off by each director.
ITEMS FOR NOTING
11.0
CfE Implementation Group
Noted 1:
The Committee noted that whilst it did not have any responsibility
for scrutiny of the CfE Implementation Group, it did have a
responsibility to provide support and guidance for Bill.
Noted 2:
Further detailed assessment of the risks was to be undertaken
together with a review of responsibilities and consideration given as
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to how this might impact on the escalation route.
12.0
Agreed 1:
The Committee discussed the potential risks to Education Scotland
relating to Bill’s leadership of the CfE Implementation Group and
agreed that these risks should be reflected in Education Scotland’s
Corporate Risk Register.
Action 1:
Catherine and Laura to ensure that potential risks relating to
Bill’s leadership of the CfE Implementation Group were
accurately reflected within Education Scotland’s Risk Register.
Health and Safety
Noted 1:
13.0
14.0
Internal Audit Update
Noted 1:
The Audit progress was on track with the final phase of fieldwork
having commenced in early February.
Noted 2:
The internal audit plan for 2012 / 13 and beyond would not be
completed until the Organisational Development review was
finalised.
Matters for Consideration
Noted 1:
15.0
16.0
The Committee approved the last few remaining amendments which
were raised at the last meeting and confirmed that they were content
with the revised document.
Draft Framework Document
Noted 1:
Whilst it was noted that CfE has been a particular priority for Scottish
Government over the recent months, the Committee expressed
concern that they had not yet seen a first draft of the Framework
Document and urged that this should be progressed this without
further delay.
Action 1:
Catherine agreed to correspond with Members of the Committee
and circulate a working draft of the Framework Document as
soon as received from Scottish Government.
Any Other Business
Noted 1:
17.0
The Health and Safety report was noted, in particular the details of
one personal injury case which was included, as requested by
Members at the last meeting.
There was no other business.
Date of Next Meeting
Thursday 7 June 2012 at 12.30 in the Board Room, Optima, Glasgow
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