Minutes of the Audit and Risk Committee: February 2025

Present

• David Watt, (Chair)  Non-Executive Director
• John Burns,  Non-Executive Director
• Helena Kiely,  Non-Executive Director (via MS Teams)

In attendance

• John Logue,  COPFS Crown Agent and Chief Executive
• Keith Dargie,  COPFS Chief Digital Officer and Head of Business Management
• Marlene Anderson, COPFS Director of Finance and Procurement
• Rachel Browne,  Audit Director, Audit Scotland
• Sanya Ahmed,  Senior Audit Manager, Audit Scotland
• Dougie Shepherd, Audit Manager SG Internal Audit Directorate (via MS Teams)
• William Wilkie, Senior Auditor, SG Internal Audit Directorate (via MS Teams)
• Francis Ross, COPFS Designed for Success Programme Manager (observer)
• Ian Palmer COPFS  (Secretariat)

Apologies

• Annie Gunner Logan (Non-Executive Director)
• Maggie Bruce, Senior Audit Manager, Audit Scotland

DW (Chair) welcomed the group and apologies were noted.

As there was a number of new attendees present, round the table introductions were made.

There were no declarations of interest tendered.

ARC Paper 43 was approved as accurate.

ARC Paper 44 was noted.

It was agreed that  the following actions can be marked as completed and removed from the tracker:

Action 6 (2024) (Prepare paper in relation to business case for moving to 3 lines of assurance mapping defence). This item appeared on the substantive agenda and any further actions in this regard will be recorded on the meeting tracker.

Action 7 (2024) (ARC Secretariat to set 2025 meeting dates). Dates have now been fixed.

Action 12 (2024)  (Secretariat to issue ARC meeting group copy of amended version of the COPFS Counter-Fraud and Awareness Report once received from WW). Now circulated.

Action 13 (2024) (Participation in external counter fraud forums). Update provided.

Action 14 (2024) (Corporate Risk Register). Items discussed are to be included in the revised format CRR.

Action 15/16 (2024) (Update re Production Rooms - Access Log and CCTV retention period). Completed.

Action 17(2024) (Provide update in relation to assessment of High Court Assurance Mapping RAG status). Completed.

The Committee noted ARC Paper 45a (Internal Audit actions).

The Committee observed that a number of the actions recorded as still ongoing had been on the tracker for a significant period beyond the agreed date for completion. 

JL (CA/CE) said it was important that this was addressed and that he and KD would review the tracker with a view to these items being finalised by the next ARC meeting in May.

Action

JL and KD to review overdue items on Internal Audit with a view to having them completed in time for May ARC.

JL (CA/CE) presented ARC Paper 46

The Committee noted the paper and welcomed the detail of the information it provided. General discussion followed.

MA presented:

ARC Paper 47a (COPFS Finance Update Report)

This was noted by the Committee and general discussion followed.

Highlights included:

General update on 2024-25 budget position. Emergency spending controls have reduced budgeted expenditure on recruitment for the period. The positive outcome of the additional resource and capital budget allocations secured from SG for 2025-26 is welcomed and helps ensure that all key stakeholder needs are met.

Non-Staffing Costs continue to be impacted significantly by increases in fees and other related costs for Kennelling, Ad Hoc Advocate Deputes, Pathology and Mortuary Services, Expert Witness Reports and Court Attendance, Interpreting and Translating, Storage of vehicular case productions, increased throughput of legacy deaths and potential time bar work and  other general inflationary pressures. Work continues with budget holders and other stakeholders to ensure that all possible savings and efficiencies are identified and utilised.

Impact on COPFS of increased National Insurance costs are being assessed and solutions identified.

The Capital Budget forecast remains in line with expectations and is progressing well.

It is planned that the COPFS Business Plan will be published in April 2025.

This will encompass the Law Officers stakeholder priorities and consideration of corporate strategic elements of service delivery and casework. Legacy work, COVID death investigations and post pandemic resourcing are also included.

COPFS Business Transformation activity, in tandem with the implementation of the Designed for Success programme, is helping to harness efficiencies. 

MA gave an overview of ARC Paper 47b/c (COPFS Accounting Policies)

Decision

After general discussion the Committee approved the proposals and recommended them for inclusion in the COPFS 2024-25 Annual Accounts. 

ARC Paper 47 d (COPFS Annual Accounts 2024-25 - External Audit Fee)

Decision

After general discussion, the Committee approved the baseline audit fee specified in the paper.

RB gave an overview of ARC Paper 48 (Audit Scotland COPFS Annual Audit Plan 2024-25)

RB confirmed there are no changes in the scope or financial reporting requirements for this year.

In response to a question from RB in relation to internal fraud risk assessment, the applicable attendees confirmed that no instances of fraud or other financial irregularity in COPFS had come to light since the last audit report.

Decision

After general discussion, the Committee approved the Audit Scotland COPFS Annual Audit Plan 2024-25.

WW gave an overview of ARC Paper 49a (DIAA Progress Report – COPFS)

Highlights included:

• Since the last Audit and Risk Committee the final report for the Business Continuity/Service Resilience review has been issued.
• Fieldwork has commenced on the Workforce Planning: Capacity and Capability review.
• The Estates Strategy and Agile Working follow-up is in progress and the Business Planning follow-up is to commence by the end of February. 
• General update in relation to Assurance activity. Final reports have been issued in relation Counter Fraud Awareness and Business Continuity and Service Resilience. These are also scrutinised at the COPFS Executive Board and Corporate Resilience Groups.
• General discussion in relation to recommendations and structure of timing of reports is being reviewed within COPFS.
• DS will present an updated progress report at the COPFS ARC in May.

The following papers were provided for the purpose of general information: 

ARC Paper 49 d (DIAA Quarterly Bulletin November 2024)

ARC Paper 49 e (DIAA Quarterly Bulletin February 2025)

ARC Paper 49 f (EY Thought Leadership Considerations for DIAA)

MA presented ARC Paper 50a (Assurance Mapping Group 4 Update Report)

ARC Paper 50b (Proposal to move 3 lines of assurance mapping defence)

The report provided an update in relation assurance mapping for the following business areas:

4.1 Human Resources

4.2 Equality and Diversity

4.3 Health and Safety

The Committee noted that the paper gave an overall “green” RAG assessment in all categories. In order to be in a position to give a complete assurance, the Committee requires COPFS contributors to provide as much evidence as possible to support their assessment.

In relation to ARC Paper 50b (Proposed move to 3 lines of assurance mapping defence) this will be reviewed when the assigned actions points have been completed.

Action

MA and Secretariat to review previous audits to assess RAG ratings.

MA to look at preparing a deep dive report  of 2^nd level categories

DW (Chair) presented the following:

ARC Paper 51 a (RMG Chair Update Report)

ARC Paper 51 b (RMG Meeting Minutes 21 January 2025)

The Committee noted the papers and general discussion followed.

DW (Chair) reported that he is stepping down as Chair of the COPFS RMG and the role will be taken by Andy Shanks (Deputy Procurator Fiscal SC/Head of SFIU)

·      The meeting acknowledged that Vanessa Davies (Non-Executive Director) has now left COPFS. The group expressed their thanks to Vanessa for her stalwart service as a member and Chair of the Committee and wished her well in future endeavours.

·       MA advised the group that this will be the last ARC meeting attended by Ian Palmer (Secretariat) pursuant to the introduction of a centralised secretariat. A handover process is being developed. 

Ian was thanked for his assistance to the Committee over the last four years.

The Committee will next convene on Thursday 15th May 2025 at 11 am in Conference Room 1 Crown Office, Edinburgh.