MINUTES
HMIE Audit and Risk Committee
Monday 24 May 2010 at 2pm
Boardroom, Denholm House, Livingston
Present:
David Morrison (DM), non-executive
Shirley Young (SY), non-executive
Bill Maxwell (WSM), HMIE
Gill Robinson (GNR), HMIE
Stuart Robinson (SAR), HMIE
Gillian Howells (GH), HMIE
Laura Burman (LB), HMIE
Pearl Marshall (PM), SG Internal Audit
Douglas Falconer (DF), SG Internal Audit
Ruth Brown (RB), Audit Scotland
Geoff Lees (GL), Audit Scotland
Linsey Wilson, HMIE (minutes)
Apologies for absence:
Sir Andrew Cubie (AC), Chair of Audit and Risk Committee
Phil Denning (HMI)
Welcome and Introductions
DM welcomed everyone to the meeting and explained that he would Chair the
meeting on AC’s behalf as he was currently out of the country.
1.0
Minutes of the meeting held on 10 February 2010
1.1
One change to the minute was proposed. In item 1, the agenda item
should read ’16 September 2009’.
2.0
Matters arising and Action Log
2.1
SAR updated the Committee that the advertisement for recruiting
non-executive members to HMIE will appear in The Herald on 4 June
2010. SY raised the possibility of the advertisement being placed more
widely. SAR agreed to look into this possibility.
Action: SAR to confirm if the recruitment advertisement for nonexecutives to HMIE could be placed in more widely or other
means could be used to draw it to the attention of a diverse
audience.
1
Action: A paper to be produced on the role of non-executive
members for the next Audit and Risk Meeting scheduled for 15
September 2010.
3.
HMIE Annual Report and Accounts, and Auditor’s report
3.1
SAR noted that it had been a challenging year financially for HMIE.
The concentrated effort to identify areas to make savings demonstrates
how focused HMIE is, as an organisation, in preparing for the next
financial year. This has been achieved through a series of measures
such as the change in focus from printed to web-based reports; the
increase in money received from DWP for contracted work etc.
3.2
GL gave the Committee a brief overview of the interim report on Audit
Scotland’s work on reviewing HMIE’s internal control systems. GL
noted that the only minor recommendation to HMIE related to reviewing
the summarised the internal controls in HMIE to review arrangements
currently in place for identifying and managing potential conflicts of
interest when taking on AIs and LMs. GL felt that this should be
extended to all HMIE staff. WSM confirmed that an annual
endorsement document has been put in place providing all Assistant
Inspectors etc with their contractual obligations. This document will be
refreshed yearly. RB provided an overview of Audit Scotland’s audit
report, highlighting several areas and adding that there are no areas of
concern to bring to the Committee’s attention. The report was a true
and fair recollection of the accounts and have been approved by Audit
Scotland.
3.3
SAR highlighted to the Committee that the Efficiency statement within
the Annual Report and Account 2009-10 still required updating. The
Committee formally accepted and approved the Annual Accounts and
Auditor’s report for 2009-10. DM gave thanks to the work finance and
audit for completing the accounts and audit within tight timescales.
4.
Internal Audit Report 2009-10
4.1
PM was pleased to provide substantial assurance in the Internal Audit
Report. The recommendations have already been accepted and
Internal Audit is currently awaiting an action plan. The final report will
be issued as soon as the action plan is received. The Internal Audit
plan for 2010-11 has already been agreed and will begin in September
2010.
5.
Report to HMIE Management Board
5.1
It was agreed that all elements of the Committee’s terms of reference
have been addressed. It was agreed that it would be helpful to
address the existing terms of reference at the next meeting in
September.
2
Action: Existing terms of reference to be circulated to the
Committee in advance of the 15 September meeting.
Action: Self-evaluation forms to be issued to all non-executives
for completion in advance of the 15 September meeting.
6.
Risk Management Update
6.1
LB updated the Committee on the changes that have been made to the
Spectrum report (formerly the RAG report). As a result of the changes
the risks are now more accurately depicted. DM commented that while
the colour breakdown was useful, it would be helpful to use a number
scale for greater clarity.
Action: Presentation of the Spectrum Report to be addressed in
advance of the next meeting.
6.2
LB informed the Committee that the revised Risk Management Policy
and Strategy papers would be discussed by the Committee in January
2011 for publication in May 2011. DM noted that there was as
increased possibility of industrial action as a result of the financial cuts
carried out by authorities, should this be a higher risk for HMIE.
Action: HMIE to review all financial risks.
Action: HMIE to review risks relating to industrial action in
schools having a major impact on the inspection programme.
7.
Any other business
7.1
The next scheduled meeting of the Audit and Risk Committee is 15
September 2010 at 2pm. DM noted that it would be useful for the
Committee to be considering agenda items for this meeting over the
next few months.
Action: Trawl for agenda items to be carried out in mid-July 2010.
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