Audit and Accountability Committee
Welcome and Apologies
Declaration of Interests – Review and Update
Minutes and Actions
Commissioner’s Update
Risk and Control
Internal Audit
External Audit
Finance
Attendees
Audit & Accountability Committee
Catherine Dyer (Chair)
Elizabeth Humphreys (LH) (attending via MS Teams)
John McCroskie (JMcC)
Lena Collins (LC)
Michelle Wailes (MW)
PIRC
Michelle Macleod Commissioner (MML)
Phil Chapman Director of Operations (PC)
Sharon Smit Accountable Officer / Head of Corporate Services (SS)
Jennifer Fisher Secretariat (JLF)
Auditors
Brian Battison Audit Scotland (BB)
Michael Gibson RSM (MG)
1. Welcome and Apologies
The Chair welcomed everyone to the PIRC Audit and Accountability Committee (AAC).
Apologies noted from Robert Scott (RS).
Members agreed to consider agenda items 1-8 in private for the reasons set out on the agenda.
2. Declaration of Interests – review and update
The Chair advised that she is now a co-opted member of Redress Scotland’s Audit and Risk Assurance Committee and is no longer a member of Strathclyde University’s International Advisory Board to the Institute for Inspiring Children’s Futures (IICF).
The Chair requested that changes to the register of members interests be forwarded to secretariat for noting as they occur.
She also advised that members had agreed that a members ‘Registers of Interests’ should be published on the PIRC website.
Action 11: JLF to update all biographies and publish a members’ ‘Registers of Interest’ on PIRC website.
3. Minutes and actions arising from previous meeting.
3.1 Minutes
The minutes of the November 2023 meeting are approved as accurate.
3.2 Action Log
The action log was reviewed - all completed actions were removed.
AP6 – SG Sponsorship Team
MML advised that representatives from the SG Sponsorship Team would attend the May 2024 meeting.
AP10 – Risk History Report
SS advised that an alternative report was issued to members in November 2023.
SS informed members that the Risk reports can be modified to incorporate more or less detail, as required. Further discussion to be held at agenda item 5.
4. Commissioner
4.1 Commissioner’s Report
MML provided an update to members on a range of ongoing work, including:
Sheku Bayou Public Inquiry (SBPI)
MML advised that the Inquiry restarts on 6 February 2024 and is scheduled to conclude on 8 March 2024. Several PIRC staff (current and former) will attend the Inquiry to provide oral evidence. To date, a number of PIRC staff (current and former), have provided evidence to the Inquiry by means of written submission.
MML and Sharon Clelland, Head of Legal Services (SC) will attend the Inquiry on each day it sits, to provide staff and Counsel with support.
Work continues to review the significant volume of disclosures being made daily and consider any proposed redactions ahead of Core Participant disclosure – MML and SC continue to engage with Senior and Junior Counsel in preparation of Hearing 3 (part 2) as well as future hearings.
Police (Ethics, Conduct and Scrutiny) (Scotland) Bill (PECSS Bill)
MML, PC, SS and SC, continue to liaise with Scottish Government Bill Team to review current policy position and discuss preparations for the introduction of the PECSS Bill.
MML advised that PIRC may be invited to provide evidence to the Justice Committee in March 2024. Further update will be provided when available.
SCOTT v PIRC Civil Case
MML advised she had received notification from Counsel to advise that PIRC have been successful in their appeal and the Court had awarded expenses. The appellant may lodge an appeal application with the Court of Session and must do so by 14 February 2024. MML advised that PIRC will seek reimbursement of full expenses incurred. Further update will be provided when available.
Members noted the updates provided.
The Chair approved request by Brian Battison to amend the agenda order.
5. Risk and Control
SS provided members with a verbal summary of the Risk and Control reports (circulated in advance).
5.1 Risk History report showing Action Changes
SS advised members that there have been no amendments to any risk scoring since the last review of the register.
SS advised that PIRC were successful in securing additional funding from SG for legal costs and the pay award, therefore the associated risk scoring had not been escalated. SS noted that finance will continue to be closely monitored and the risk scoring revised if required.
SS advised she had met with the Risk Coordinator group to review recent changes to processes and discuss the role and responsibilities of Risk Coordinators. All Risk Coordinators had advised that they were content to continue undertaking this role and noted that they felt they were contributing to the wider work of the organisation.
LC asked that members were provided with an overview of the role and responsibilities of the Risk Coordinators.
AP – Provide a summary of the role and remit of Risk Coordinators.
LH highlighted that whilst it was useful to note the wealth of activity being undertaken noted that some information on the register appears to be outdated or incomplete. LH asked that a summary is provided to members with the Risk Reports moving forward.
MW noted that it may be useful to provide relevant information in graphic form with an accompanying narrative.
AP - SS to review further and provide members with additional information noting current position, any issues / areas of concern and areas of progress.
5.2 Risk Appetite and Risk Review 2024-2025
SS proposed that members undertake an internal review of Risk Appetite at the May 2024 meeting with an invitation extended to Richard Mackie, RSM UK Ltd, to attend an AAC meeting every 2-years from May 2025 onwards, to undertake a full review with members.
LH asked that as part of the proposed internal review, consideration is given to reviewing how risk appetite is articulated.
Members agreed the proposal.
AP – Internal review to be undertaken at the May 2024 meeting.
6. Internal Audit - Audit Action Log
MG provided an update to members on a range of ongoing work, including.
6.1 Health and Safety – Management of Occupational Road Risk (MORR) – Audit Report
MG advised that the scope of the audit was to provide assurance on the control and mitigations in place relating to the Management of Occupational Road Risk (MORR) Policy and associated procedures related to driving whilst carrying out PIRC business.
MG advised that PIRC could take partial assurance with regards to controls in place relating to this area, with one high, three medium and two low priority management actions identified and one suggestion raised for management consideration.
High priority action - completion of vehicle safety checklists
MG advised that, from a sample of 10 car journeys undertaken, no completed vehicle safety checklists had been retained.
Medium priority action - completion of a risk assessment for car journeys over 3-hours.
MG advised that, from a sample of 10 car journeys undertaken, no completed risk assessments had been retained.
Medium priority action – MOT and road tax checks on personal and leased vehicles.
MG advised that no evidence of checks having been undertaken were available.
Medium priority action – recording of vehicle journeys.
MG advised that journeys were being recorded in the vehicle log sheets however no formal audit record of where vehicles are, who was driving etc. was maintained.
SS advised that previously (pre-2020), representatives from the Royal Society for the Prevention of Accidents (ROSPA) attended PIRC and provided management staff with training in relation to risk management of vehicle use , whilst at work. This had led to the development of the PIRC Pool Car policy and later the PIRC MORR policy. SS further advised that following return to office based working (post covid) a review of the MORR policy had been undertaken with the finalised MORR policy being approved in December 2023. Through audit, helpful feedback has been received which will allow PIRC to strengthen the policy in place as well as vehicle and driver processes in place prior to use of either staff members personal vehicles or pool cars.
LH questioned the practicalities of completing a vehicle check prior to every journey undertaken given that staff can be asked to attend locations on an emergency / urgent basis. SS advised that further work was being undertaken by the Head of Investigations and a Deputy Senior Investigator to review the practicalities of implementing the processes as specified within the PIRC MORR policy for every vehicle journey. An update will be provided when available.
AP – provide update to members in relation to compliance with processes as set out in the MORR policy.
JMcC noted that there were only 2 recorded uses of personal cars for work related business and opined that this was particularly low. JMcC asked if PIRC were confident this figure was accurate and questioned if the vast majority of travel is undertaken using pool vehicles, would PIRC considered the use of a black box / telematics recorder to capture this data. SS advised that she was confident that 2 uses of personal cars was accurate and advised that as pool cars are lease vehicles, PIRC would not be able to instal and use black box technology. SS further advised that pool cars are regularly serviced and changed out by the hiring company. SS highlighted that emphasis will therefore be on completing manual records, ensuring the processes are adequate and fit for purpose and ensuring all drivers are aware of their individual responsibilities.
MW asked if the completion dates recorded within the audit report are achievable. SS advised that the completion timescales are attainable and noted that work was already underway to address the management actions identified.
6.2 Internal Audit Strategy 2024-2025 and 2025-2026 (inc. Internal Audit Plan 2024-2025)
MG provided members with a summary of the Internal Audit Strategy 2024/25 – 2025/26 (circulated in advance).
MG noted that RSM intend to audit the following areas:
Strategic Risk
Complaints Handling – PIRC has recently revised the Complaints Handling Review (CHR) section of its website. The audit will test compliance with new CHR procedures.
Payroll – The audit will test compliance with payroll procedures and the processes to manage new starters, leavers, amendments, and payroll reporting.
Core Assurance
Performance Statistical Report – the audit will consider the processes to compile performance data from different systems and the accuracy of data reported as Key Performance Indicators (KPIs) across the organisation.
Other Internal Audit Activity
Follow up Audit – to provide assurance on action taken to address recommendations previously agreed by management.
MW noted her thanks to MG for providing members with the Strategy and Audit Plan so far in advance.
Members approved the Internal Audit Strategy and Audit Plan for 2024/25 and 2025/26.
6.3 Audit Action Log
SS advised that there are no outstanding actions at this time – all actions identified from the Training Audit are complete.
7. External Audit
7.1 Audit Schedule 2023-2024
BB advised members that he will liaise with SS to agree a schedule of planning work for the year ahead and to devise a draft Audit Action Plan.
BB advised that the draft plan will be provided to members at the May 2024 AAC meeting for review and approval.
8. Finance
8.1 Management Accounts to end December 2023
SS provided a summary of the Management Accounts as at end of December 2023 (circulated in advance), highlighting the following areas:
- Year to date underspend in November 2023 of £179k has now moved to an overspend position of £7k due to the backdated pay award being processed in December 2023 (costs in December 2023 being £200k higher than in November 2023). Funding of £193k has been awarded to contribute to these cost pressures as part of the Spring Budget Revisions.
- Uplift to Grant in Aid awarded by SG of £229k to cover costs associated with the ongoing public inquiry. Most recent forecast details an underspend in legal costs however this will move to an overspend position by year end.
- Budget provision for 2024-2025 confirmed.
MML noted that while PIRC were successful in the 2024/2025 budget allocation, she reiterated that financial controls currently in place, will continue into the next financial year.
SS advised that consideration will be given to submitting a further Business Case to SG when PIRC begin to undertake additional responsibilities in relation to referral of Article 5 breaches (Recommendation 47 of the Angiolini Report).
SS provided members with an overview of the 2024-2025 Budget position as per the Budget Allocation letter.
Total Budget £8.723 m
- Fiscal Resources £7.116m
- Non-cash £0.151m
- Capital £1.456m
SS further noted that forecast budgeting reports, reporting on committed costs and forecast costs, are submitted to SG Sponsor team highlighting any area of concern.
Members noted the updates provided but discussed the unsatisfactory nature of the continual need, which had arisen over a number of years, for the Commissioner to approach SG for additional funding in year, for matters which were raised and / or known to the Sponsor Team before budgets were set for each year. It was recognised that this was not a matter over which PIRC had control as that sat with SG.
Although, to date, the additional funding had eventually been agreed by SG and issued, there was never a guarantee that would be the case. This was of particular concern given the demand led nature of the business that PIRC deals with. There had never been any letters of comfort issued, with only verbal assurances that matters would be resolved.
In this current year, the pay award that SG agreed was in effect imposed on all NDPB’s for much higher rates than PIRC and others had been advised to budget for. While recognising the challenges faced by those at the centre of SG setting budgets, the AAC felt that it was appropriate to record this as a risk which PIRC could only partially mitigate as the levers sat with SG and as forecasts show that the entire public sector face further increased significant constraints over coming years.
Members welcomed the opportunity to share these concerns with the members of the Sponsor Team attending in May.
9. Any other business
Nil to report.