Minutes of the HMIE Audit and Risk Committee
Wednesday 27 May 2009
Victoria Quay, Edinburgh
HMIE: Sir Andrew Cubie (AC) (Chair)
Shirley Young (SY)
David Morrison (DM)
Graham Donaldson (GHCD)
Annette Bruton (AB)
Stuart Robinson (SAR)
Gillian Howells (GH)
Rona Littleproud (RL)
Eileen Quigley (EQ) (minutes)
Audit Scotland: Ruth Brown(RB)
Internal Audit: Pearl Marshall (PM)
Alison Thomson (AT)
Apologies:
Phil Denning (PD)
Geoff Lees (GL)
Welcome and apologies
Noted : AC opened the meeting by welcoming DM to his first HMIE Audit and Risk
Committee meeting. He noted apologies from Geoff Lees and Phil Denning.
1.
Minutes of the meeting held on 5 February 2009
Noted: The minutes were accepted as accurate with the exception of item 5 where
internal audit believed that the audit plan had been agreed. It was accepted that the
plan would be finalised and circulated with the minutes of this meeting.
2.
Matters arising
Agreed 1: Management Board discussed changes to the nature and Non-Executive
component of the Management Board at the meeting on 26 May. GHCD will create
a summary paper of the discussion and circulate it to the Board.
Agreed 3&4: SAR arranging initial dates for induction training for DM. AC requested
that he be included in DM‟s induction. The training should be structured to be an
opportunity to learn any lessons that might apply to future Non-Executive recruits.
The Committee accepted the proposals in principle.
Item 3 agreed 1: SAR and GH have been conducting benchmarking but need to
conduct further work particularly in relation to Best Value. RB advised that Audit
Scotland have issued new guidance pamphlets that may help with this.
Item 3 agreed 2: GH advised the Committee that she will provide a finance paper,
including reference to any significant changes, for each meeting this year.
Item 4 action 1: IRSG issued an update paper last week which included guidance
on Information Management and the use of encrypted USB sticks. The risk group
are also drawing up more detailed guidance on the use of encrypted USB sticks.
Item 4 action 2: This is covered under item 6.
Item 4 action 3: This has been overtaken by the Cabinet Committee
recommendations.
Item 6 agreed 1: The benchmarking of our Complaints Procedure is ongoing. The
new HMIE Feedback and Complaints Procedure cannot be confirmed until the
outcome of deliberations by the Ombudsmen on whether an EA employee is
competent to complaining about HMIE to SPSO.
Any other business: AC advised the Committee that HMIE was to be involved in a
Fatal Accident Inquiry into the death of a headteacher who died earlier this year
following an inspection in her school. The inquiry is due to be heard in a Borders
Sherriff Court around September or October. The inspection team will be called to
the inquiry and HMIE is currently providing support and legal advice to the people
involved.
3.
HMIE Annual Accounts and Auditor’s report
Noted: AC advised the committee that the Annual Accounts were agreed by
Management Board yesterday, subject to any significant matters arising today. AC
thanked HMIE and Audit Scotland for completing the accounts and the audit so
early.
Noted: GH highlighted a few areas of the report to the committee, including fee paid
staff costs going up to offset recruitment difficulties, the additional cost of newly
agreed pay supplements, a break down of “other additional costs”, and the fact that
the outturn came in £21,000 under budget. DM asked a number of questions
regarding content and presentation for clarity.
Noted: RB gave the committee a brief overview of the Audit Scotland report,
highlighting several areas and adding that there are no areas of concern to bring to
the Committee‟s attention. She added that the report was a true and fair recollection
of the accounts and have been approved by Audit Scotland subject to receiving the
letter of representation from HMIE.
Noted: The committee agreed the Annual Accounts and Auditor‟s report.
Action: AC to see a copy of the sign-off letter of representation.
4.
Internal Audit Report 2008/2009
Noted: AT advised that the annual internal audit programme had resulted in
substantial assurance overall and that there was nothing significant to bring to the
committee attention. There was a brief discussion about some of the learning points
of the internal audit and of those recommendations where management had
indicated that no further action would be taken on the grounds of proportionality.
Noted: AC noted the report and thanked Internal Audit for their work.
Action: GHCD to sign off a standard paper for the Annual Assurance. He is pleased
at the standard of assurance and is comfortable to sign off.
5.
Report to HMIE Management Board
Noted: Audit and Risk Committee are content with the report.
6.
Update from Risk Management Group
Noted: RL gave the Committee an overview of the risk management update paper.
She highlighted that the Certificates of Assurance have been completed, that risks
are being regularly reviewed and brought the appendix which set out action to
ameliorate risks during 2008-09 to the Committee‟s attention. RL also advised that a
review of the Business Continuity Plan was underway and that this would be brought
to the next Audit and Risk Committee meeting. A new „traffic light‟ risk report was
discussed as was the detailed security policy framework produced by Cabinet Office.
The Committee thought the framework was a helpful document but care would be
required to ensure it was implemented proportionately. RL advised the Committee
that a sub-group had been established to consider HMIE‟s response to the H1N1
outbreak. The group has already looked at key issues and prepared an action plan.
This has been based on previous advice surrounding the outbreak of SARS
epidemic.
7.
Quarterly Reports
Agreed: The Committee noted the quarterly reports. It was agreed that we will
revisit the style of the report for next the meeting.
8.
Any other business
Noted: There was no other business discussed.