Minutes of the Audit and Risk Committee: November 2025

Present

David Watt, Non-Executive Director (Chair)

Helena Kiely, Non-Executive Director (VIA MS Team)

John Burns, Non-Executive Director

In attendance

Yvette Greener, Chief Operating Officer (second half of meeting)

Marlene Anderson, COPFS Director of Finance and Procurement

Katie Woods, COPFS Head of Chief Operating Officer Office (Via MS Teams)

Sanya Ahmed, Senior Audit Manager, Audit Scotland

William Wilkie, Internal Audit Manager (IAM)

Paul Cooper, Internal Audit Manager (IAM)

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

Christopher Hastings, COPFS Corporate Governance and Briefing Coordinator (Secretariat)

Apologies

John Logue, COPFS Crown Agent and Chief Executive

Keith Dargie, COPFS Chief Digital Officer

Maggie Bruce, Senior Audit Manager, Audit Scotland.

Rachel Browne, Audit Director, Audit Scotland

Douglas Shepherd, Senior Internal Audit Manager (SIAM).

DW welcomed everyone to the meeting and the apologies above were noted.

No declarations of interest were mentioned. CH gave the dates for the ARC meetings to be held in 2026. These were agreed to.

DW introduced ARC Paper 25 (Minutes of Audit and Risk Committee Meeting on 13 August 2025). DW requested two wording changes. The Board agreed these changes and the minutes were approved as updated.

DW introduced ARC Paper 26 (ARC Action Tracker) and noted the actions were all items on the agenda for today and after today’s meeting could be marked as closed. The Board agreed to the actions being closed off.

DW introduced ARC Paper 27 (Audit Action Tracker). CH highlighted that, due to ongoing pressures, the improvements in the presentation of this report were not final and welcomed further input. The Board discussed the volume of actions and whether progress could be made in closing some of them. It was confirmed that the COO will take the lead on several items to support completion. DW requested that a meeting be arranged with the COO to review the plans. The Board approved this action and expressed satisfaction with the papers.

Action: DW and YG to discuss barriers to closure of some of the older actions on the tracker.  

MA provided a verbal update on behalf of JL, who was attending the Justice Committee at the Scottish Government alongside YG. The update covered several key areas:

• Budget Allocation: The 2025–26 budget allocation process is ongoing with the Scottish Government.
• Senior Recruitment: Recruitment for SCS2 and SCS1 roles is nearing completion, with appointments expected by December.
• Organisational Change: JL has been delivering the Designed for Success Roadshow to explain upcoming changes, which has been positively received.
• Board Composition: Recruitment of new Non-Executive Directors (NXDs) is currently underway.

The Board discussed these points and were content with the update.

MA introduced ARC Paper 28 (ARC Finance Update October 2025) and provided an overview of the current financial position. MA outlined that 2025-26 budget forecasting shows an anticipated overspend, primary due to unfunded contract inflationary increases in postmortems as well as an additional unfunded 1% pay increase. MA advised that where possible savings are being identified to address the overspend.

MA discussed the process for applying for additional in-year funding from Scottish Government. She noted that other public bodies are facing similar issues. If additional funding is not secured, COPFS may need to record an overspend if approved by the Scottish Government.

The Board asked whether Non-Executive Directors would receive further updates. MA confirmed this will be discussed at the next Strategic Board meeting. She also advised that the Scottish Government has confirmed the timeline for the 2026/27 budget implementation.

In conclusion, MA reported that savings have been achieved without the additional budget, but significant challenges remain. The Board expressed concern about contingency planning should funding not be approved. MA indicated that a clearer position and potential options will be available by December. The Board was satisfied with the discussion.

SA provided a verbal update on behalf of Audit Scotland. Recruitment is underway to replace Maggie Bruce, who is retiring. Audit Scotland has been in contact with MA regarding upcoming changes, and a meeting will be arranged to discuss these further. SA confirmed that their work will continue as normal and that a briefing will be prepared for the incoming Non-Executive Directors (NXDs). The Board held a general discussion and expressed satisfaction with the update.

PC introduced ARC Paper 29A (Internal Audit Progress Report) and outlined the current audit fieldwork. PC is leading the Health and Safety audit, while WW is focusing on Case Marking. Risk Management fieldwork will begin in December, with completion expected in January. A meeting with MA, YG, and JL will be arranged to align the planned risk audit with the Risk Management Group (RMG) paper and clarify expectations for the scope of the audit.

The Board discussed whether the Risk Management audit could be delayed given the internal review of this work which is still at an early stage. WW explained that this work was commissioned by the Crown Agent and Chief Executive (CACE) last year and must be completed unless a formal decision is made to postpone. The Board agreed, provided they are kept informed of developments.

PC also confirmed that planning for the annual audit will begin just before Christmas. ARC Papers 29B and 29C set out the focus areas and risk considerations, drawing on both public and private sector perspectives. The Board discussed these proposals and noted that ARC will need to complete a self-assessment in line with DIAA guidance. It was agreed this will take place once the new Non-Executive Directors are appointed.

MA introduced ARC Paper 30 (Assurance Map: Group 3 – 2025) and outlined recent improvements. The paper now applies RAG ratings to individual items within each section, enabling a more detailed analysis compared to assessing entire sections collectively. MA noted that KD was unable to attend this meeting but will be available to address any questions at the February ARC meeting.

The Board discussed the paper and provided suggestions for improving some of the RAG ratings. Members also asked whether the digital plan referenced in KD’s section had been signed off. YG confirmed that the plan is still pending review and approval by the Strategic Board.

AS introduced ARC Papers 31A (RMG Briefing – 10 September 2025) and 31B (RMG Briefing – 29 October 2025). These papers summarised the outcomes of the last two Risk Management Group meetings. AS noted that YG’s forthcoming papers will incorporate updates arising from these discussions.

AS provided an overview of the Risk Awareness Strategy, which consists of two stages:

• Stage 1: Raising awareness of risk across the organisation.
• Stage 2: Identifying areas for improvement based on feedback from Stage 1.

AS confirmed that the items highlighted in the reports have been investigated and will be closed in due course. The Board discussed the briefings and expressed satisfaction with the progress reported.

YG introduced ARC Paper 32A (Redesign of Risk Register) and thanked AS and KW for their contributions. She explained that future workshops on risk management will be held and aims to complete this work during December.

YG also confirmed that a new strategic risk register will be introduced, with individual registers for each function. Further work is required before the next ARC meeting, and a follow-up will be provided then.

The Chair asked whether risk appetite would become a formal policy within COPFS. YG advised that she anticipates that this will be the case. The Committee was content.

The board noted it was WW’s last meeting and thanked him for all the work he has done on ARC throughout the years.

WW extended his own thanks to ARC and COPFS and wished everyone the best.

With this DW called the meeting to a close and agreed the committee would next meet on 18 February 2026 at 11am.