Minutes of the Audit and Risk Committee: August 2025

Present

David Watt, Non-Executive Director, (Chair)

Helena Kiely, Non-Executive Director (via MS Teams)

John Burns,  Non-Executive Director

In attendance

John Logue (Crown Agent, CAO)

Marlene Anderson (COPFS Director of Finance and Procurement)

Keith Dargie, COPFS Head of Business Services

Rachel Browne, Audit Director, Audit Scotland 

Maggie Bruce, Senior Audit Manager, Audit Scotland (VIA MS Team)

Sanya Ahmed, Senior Audit Manager, Audit Scotland

William Wilkie, Senior Auditor, SG Internal Audit Directorate

Paul Cooper, Internal Audit Manager (IAM)

Iain Burns, Lead Senior Internal Audit Manager (LSIAM)

Ian Palmer, COPFS Finance and Procurement 

Christopher Hastings, Corporate Governance and Business Coordinator (Secretariat)

Matthew Beattie, COPFS Corporate Governance Manager (Observer)

Apologies

Douglas Shepherd, Senior Internal Audit Manager (SIAM).

Andy Shanks, Deputy Procurator Fiscal SC / Head of SFIU, Chair of COPFS Risk Management Group

Chair welcomed everyone and apologies above were noted. Declarations of Interest were tendered.

ARC Paper 14 (minutes of last ARC Meeting on 15 May 2025) was approved as accurate.

ARC Paper 15 (tracker for August 2025 meeting) was then presented to the committee. The committee noted the tracker and agreed to the following:

• Action 11 24 (External Quality Assessment) will be presented at the November ARC meeting.
• Action 18 24, ARC internal and external trackers to be reviewed to enhance formatting and to presented at November ARC.

MA gave an overview of ARC Paper 16 (tracker for August 2025 meeting) to the Committee.

The committee noted the paper and following was agreed:

• Pandemic Final Assessment being removed from the tracker as it will be monitored via other channels.

The following to be removed from the tracker:

• Future Ways of Working recommendations 1 and 2
• Business Planning recommendation 2 as this is now included under a separate workforce planning audit
• Business Continuity recommendation 2 which is now implemented
• External audit Financial Strategy to be removed as is complete

Business continuity and resource testing doesn’t test every area. Instead wishes to have each area say what state of readiness they are in. A formal version of a plan will be published to try and have the varying areas follow the same guidance. 

Certain areas of business continuity and resource testing are continuously ongoing thus can’t be closed off entirely. 

It was agreed into looking how to note feedback has been taken on for areas that are continuously monitored to allow those sections to be closed off from the tracker.

The Chair moved on to the financial reports and audits.

4.1 Report and accounts 2024-25 

• MA presented ARC Paper 18a (COPFS Annual Accounts covering doc for ARC) and ARC Paper 18b (2024-25 COPFS V5 highlighted) discussing the following
  -Some assets have had their useful economic lives re-evaluated requiring depreciation being brought back in as they have lasted longer than their planned lifespan to show  an up to date view of assets in use.
• It was noted by the Committee that the narrative throughout the report has been improved adding additional context to enhance transparency and readability. 
  -MA thanked all parties involved in the preparation of the annual accounts and their hard work to achieve completion by the agreed targets.
• MA thanked the audit team for their work and support throughout the audit process.
• On behalf of committee DW (Chair) echoed these sentiments.
• After general discussion the Committee approved the paper.

4.2 Letter of representation to Audit Scotland 

RB introduced ARC Paper 18b (2024-25 COPFS V5 highlighted). The committee approved the paper and noted it followed the format of previous years.

RB gave thanks to everyone for their hard work and cooperation in getting the audit report ready. She noted the report reflected a good level of assurance in COPFS management of public funds.

4.3 External audit – report to those charged with governance 

RB introduced ARC Paper 18c (COPFS_2024-25_ISA580_CoveringReport) and gave a general overview. This included:

• The audit is almost complete.
• No issues have been found within the papers submitted by COPFS.
• Report gives an overview of wider scope areas and shows what has been done.
• All outstanding matters have been dealt with and the appropriate disclosures been made.
• In response to a question from RB, COPFS confirmed that no instances of fraud have come to light since receipt of the draft audit report and there were no post balance sheet events other than those already included in the accounts.

4.4 External audit – annual audit report 

RB introduced ARC Paper 18e (COPFS_2024-25_DRAFT_AAR). This included:

• Summarised the audit work done for the 24/25 financial year.
• There are no uncorrected statements to report
• High level summaries have been given with plans in place to help.
• Regarding performance only investigation of deaths face challenges. This was due to factors out with COPFS control. Shall be followed up next year.
• The report is looking at the best value practices meaning senior management does not need to be involved in the process.
• Reviewed the lives of assets. This was due to bespoke systems lasting longer than expected. This was not initially planned as part of the audit.

4.5 Recommendation to CA/CE on report and accounts 2024-25

ARC recommended that the Crown Agent can sign off the accounts for 2024/25.

JL gave an update on COPFS.

• The first meetings of the new Strategic and Leadership Boards have happened along with new staff being brought into place for new business areas being formed such as the Portfolio Management Office.

The Committee was happy and had no questions regarding the update.

JL then moved onto ARC Paper 18f (ARC Paper 18f 20250806 Table of litigation for ARC). The committee noted the paper and general discussion followed regarding the format and reporting sequences. 

MA presented ARC Paper 19a (ARC Paper 19a Financial performance report P3 - ARC) highlighting the following: 

• Processes and procedures continue to identify all possible efficiencies and saving opportunities.
• Robust workforce planning is maintained to ensure recruitment aligns with budget availability.
• General update relating to staff cost forecasts. Progress is being made to achieving required efficiency savings largely achieved through delayed recruitment for a significant number of roles.
• COPFS finance continue to liaise with Scottish Government colleagues to maintain an effective communication channel.
• Budgets continue to be impacted by general inflationary increases in relation to postmortem and mortuary costs.
• Work is ongoing to review all 25/26 capital projects to ensure a balanced capital budget is achieved.
• Spring Budget review will assess COPFS financial position at that time.

MA then moved onto ARC Paper 19b (ARC update on fraud August 25). The committee noted the update report relating to matches identified and activities to have these resolved.

Chair moved onto the systems of internal control.

7.1 Assurance mapping framework 

MA introduced ARC Paper 20 (ARC MAP Group2 for update) noting the following.

• The Assurance Map for 4 areas listed in the report. This covered (areas here)
• The committee discussed the assessments provided for each area.
• General discussion followed regarding the mechanisms used when applying RAG (Red, Amber, Green) risk assessments.
• It was noted that the next Assurance Maps in the November meeting will be under a new format.

7.2 DIAA 2025-26 progress report  

WW formally introduced PC and IB to the Committee. PC will be taking over from WW at the next meeting and IB was brought along due to being involved in the process.
WW introduced ARC Paper 21a (Internal Audit - Audit and Risk Committee Progress Paper COPFS Q2 25 26   25 7 25)

• The final report 24/25 on Workforce Planning Capacity and Capability has been issued.
• Mentioned that planning for the 26/26 Case Marking Review has begun.
• General update to reviews with anticipated updates for reviews will include Pathology Project and ISD. Further details will be given to the committee when they become available.
• ARC Papers 21d to 21g were noted by the committee.

7.3 DIAA 2025-26 assignment reports; 

7.3.1. DIAA Audit Report- Workforce Planning- Capacity and Capability

The Committee noted receipt of ARC Paper 21b (Wrap Up - COPFS Workforce Planning Final Agreed Issued Report 11 6 25).

7.3.2 Business Planning Follow-Up Report

The Committee noted receipt of ARC Paper 21c (Follow Up Report - COPFS Business Planning 27 June 2025).

The Committee noted that rather than the reports making observations where possible they could be worded as specific recommendations.

The Committee noted the following:

Arc Paper 22 (RMG 18062025 Briefing)
Arc Paper 23 (RMG Minutes 18 June 2025)

No additional items of business were raised.

DW (Chair) had a private meeting with members of internal and external audit.

The committee will next meet on 12th November 2025 at 11am.