Minutes of the Audit and Risk Committee: May 2026

Crown Office Conference Room 1, 13 May 2026

Present

David Watt, Non-Executive Director (Chair)

John Burns, Non-Executive Director

Chris Andrew, Non-Executive Director

Jennifer Connelly, Non-Executive Director

In attendance

John Logue, Crown Agent and Chief Executive (CACE)

Yvette Greener, Chief Operating Officer (Via MS Teams) (COO)

Lindsey McIntosh, Director of Performance and Service Improvement

Marlene Anderson, Director of Finance, Procurement and Estates

Wojtek Krakowiak, Deputy Private Secretary

Sanya Ahmed, Senior Audit Manager, Audit Scotland

Lisa Duthie, Audit Director, Audit Scotland

Paul Cooper, Internal Audit Manager (IAM)

Iain Burns, Senior Internal Audit Manager (SIAM)

Secretariat

Matthew Beattie, Manager of Corporate Governance

Christopher Hastings, Corporate Governance and Business Coordinator (Secretariat)

Apologies

Douglas Shepherd, Senior Internal Audit Manager (SIAM).

Keith Dargie, COPFS Chief Digital Officer

Rachel Browne, Audit Director, Audit Scotland

1.1 The Chair welcomed everyone to the May ARC meeting. Apologies were noted and no declarations of interest were raised.

2.1 The Chair introduced ARC0526 (2.1) (ARC February Meeting Minutes - Draft) The Committee approved the minutes of the previous meeting.

2.2 The Chair introduced ARC0526 (2.2) (ARC Action Tracker Updated).

2.3 The Committee considered the Audit Action Tracker and progress against outstanding actions. It was noted that a significant number of actions were progressing towards closure, with some expected to close following current business continuity activity. However, the Committee expressed concern at the overall volume of outstanding audit recommendations and the challenge of ensuring these are effectively managed and closed.

2.4 Members welcomed the improved format of the tracker and the move towards a more consolidated approach. Discussion focused on the quality of updates, noting that some entries described activity rather than clearly evidencing progress towards completion. The Committee emphasised the need for clearer status reporting, including explicit identification of delays, revised timelines and robust evidence to support closure.

2.5 The Committee also discussed the approach to closing audit actions, including the relationship between management closure and Internal Audit follow-up. It was agreed that consistency between management reporting and assurance provider conclusions is essential. Members further noted the potential benefits of developing a more integrated and thematic approach to reporting audit and inspection recommendations, including stronger links to risk and assurance reporting.

2.6 The Director of Performance and Service Improvement outlined the developing approach to improving audit tracking, including the move towards a more consolidated and structured reporting mechanism. It was noted that this work remains at an early stage.

3.1 The CACE provided an update on current operational pressures and wider system risks impacting COPFS.

3.2 It was noted that significant operational pressure exists within High Court and Sheriff Court casework, particularly as the organisation transitions from pandemic time bar arrangements to pre-pandemic statutory timescales. The Committee discussed the operational implications of managing two concurrent systems and noted the associated workforce challenges, including limited experience among some staff in working to shorter timeframes.

3.3 Members also noted wider Criminal Justice system pressures, including record prison population levels and the ongoing management of capacity risks.

3.4 The Committee further discussed the anticipated appointment of new Law Officers and the potential implications for organisational priorities.

3.5 The Chair then introduced ARC0526 (3.1) (20260511 Inspectorate work tracker for ARC).

3.6 The Inspectorate update was considered. Members noted the volume and complexity of recommendations arising from inspection activity and discussed the need to maintain appropriate oversight without excessive operational detail.

4.1 The Director of Performance and Service Improvement introduced paper ARC0526 (4.1) (ARC paper - Risk Register & Progress Update).

4.2 It was noted that Directorate-level risk registers have been developed, providing an initial baseline for a more consistent organisational approach. The Committee discussed the current risk profile, noting that a significant number of risks are assessed at a high level or above tolerance. Members considered whether this reflects a deterioration in risk or improved visibility arising from a more structured approach.

4.3 Workforce capacity and capability were identified as key themes, with discussion focusing on the interaction between operational demand, training requirements and resource constraints. Members emphasised the importance of developing a stronger evidential basis for risk assessment and ensuring clear links between risk, performance and assurance.

4.4 The distinction between current operational pressures and longer-term strategic risks was discussed, with members noting the importance of clearly articulating both. It was recognised that the current position represents an early stage in development and that further work is required to consolidate and prioritise risks.

4.5 The Committee noted that future reporting will present a more focused strategic risk position with clearer mitigation actions.

5.1 The Chair introduced paper ARC0526 (5.1) on the Audit and Risk Committee Terms of Reference review and thanked the Corporate Governance Manager for the work undertaken. The Chair invited members to comment on the paper.

5.2 It was noted that the proposed revisions aim to improve structure and alignment with current governance arrangements. Members discussed the organisation of the document, suggesting clearer grouping of responsibilities, and noted slight inconsistencies between existing versions ab minor drafting amendments.

5.3 The Committee agreed that the document should be revised to reflect the discussion and that a final version should be submitted to the Strategic Board for approval.

ACTION: Chair and Governance Manager to liaise with each other to finalise Terms of Reference before presenting at the next Strategic Board.

6.1 The Director of Finance, Procurement and Estates introduced paper ARC0526 (6.1) (ARC Assurance Map Group 1).

6.2 The Director of Finance, Procurement and Estates explained the maps have been updated to the Three Line Model with a line by line rating rather than an overall rating to provide more clarity.

6.3 Members noted that the assurance mapping reflects a more detailed assessment across key areas including strategic planning, business planning, major investment and project management. The Committee specifically queried the assessment of project management, where all areas were rated amber. It was explained that this reflects the relatively recent establishment of the project management structure and approach, and that improvement activity is underway. Members accepted that this represents a fair assessment of the current position, with a number of actions in place to support progression to green.

6.4 Discussion then focused more generally on the clarity and consistency of assurance ratings. Members queried what the ratings represent in practice and how these are determined, noting that greater transparency would support understanding and scrutiny. It was also highlighted that in some areas it was not clear what specific actions would be required to move an assessment from amber to green. Members agreed that future reporting should more clearly articulate the basis for ratings and the actions required to improve assurance levels.

6.5 The Committee also discussed the relationship between assurance mapping and risk reporting, noting the importance of ensuring alignment between the two while avoiding duplication. Members emphasised that assurance mapping should provide a clear and concise overview to support governance and the Annual Governance Statement, rather than replicating detailed operational reporting.

7.1 The Internal Audit Manager introduced paper ARC0526 (6.2) (Q1 - Doc 001 - Internal Audit Progress paper).

7.2 The Internal Audit Manager confirmed that there were no new audit reports to present, reflecting the Quarter 1 position. It was noted that all audits from the previous year have now been completed. The Internal Audit Manager also highlighted forthcoming changes to internal audit standards and confirmed that the team had undertaken early assessment against the new standards, with a positive outcome.

7.3 The Committee noted reference to risk management advisory work in recent Strategic Board papers and queried whether a report could be shared with members. It was confirmed that the report would be circulated to Committee members.

7.4 The Senior Internal Audit Manager introduced paper ARC0526 (6.7) (Planning - Doc 001 - Annual Assurance Opinion 2025-26 (final)).

7.5 Members noted that activity is progressing in line with the audit plan and that Internal Audit has provided a reasonable assurance opinion.

7.6 The Audit Scotland Senior Audit Manager introduced paper ARC0526 (6.8) (COPFS_DRAFT_2025-26_Interim Letter for ARC 13-05).

7.7 Members noted that interim audit work had not identified any significant weaknesses in key financial systems or controls. One recommendation was highlighted in relation to delays in carrying out review processes due to staff absence, and the importance of ensuring contingency arrangements are in place was recognised.

ACTION: Corporate Governance to circulate Risk Advisory Report to members of ARC.

8.1 The Director of Finance, Procurement and Estates introduced paper ARC0526 (7.1) (Financial performance report April 2026 - ARC May 2026).

8.2 It was noted that the current financial position reflects a forecast underspend, with ongoing management of workforce and operational pressures. Budget allocations for 2026/27 have been issued, with delegation letters nearing completion. The first forecast is expected to be published at the end of May.

8.3 The Committee queried whether a more detailed breakdown would be presented to the next Strategic Board. The Director of Finance, Procurement and Estates confirmed that this would be provided. No further questions were raised.

8.4 The Director of Finance, Procurement and Estates introduced Paper ARC0526 (7.2) (ARC Paper Annual report on Fraud May26).

8.5 The Committee noted that overall fraud exposure remains low, supported by appropriate controls and monitoring.

8.6 The Director of Finance, Procurement and Estates introduced the Best Value Assessment (BVA), noting that this had been developed as a self-assessment based on relevant guidance and in response to an external audit recommendation. It was acknowledged that completion had been delayed due to organisational change, including the implementation of Designed for Success.

8.7 Members welcomed the assessment as a positive and useful starting point, providing a baseline view of organisational arrangements. However, discussion focused on the extent to which conclusions were supported by evidence. Members noted that in some areas the assessment was descriptive and could be strengthened through clearer articulation of impact, areas of strength and areas for improvement.

8.8 The Committee agreed that the BVA should be further developed to improve clarity and strengthen the link between evidence, assessment and improvement activity. Members also noted that the document would benefit from wider visibility and agreed that it should be shared with the Strategic Board for awareness. It was agreed that this would be taken forward through existing governance processes and did not require a formal action.

9.1 The Chair asked if there was any other business.

9.2 The Director of Finance, Procurement and Estates noted that the Draft Annual Accounts would be circulated to Non-Executive Directors for comment ahead of submission to Audit Scotland. Members were invited to provide feedback within a short timeframe, noting that some sections would be in draft pending final information.

9.3 No further business was raised and the meeting was closed.