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MINUTES OF THE PHSO AUDIT COMMITTEE: THURSDAY 19 MAY 2016
2pm – 5pm, Boardroom, Millbank Tower
MEMBERS PRESENT
Alan Graham (Chair)
Helen Walley
Ruth Sawtell
Alison White
IN ATTENDANCE
External Audit - National Audit Office (NAO):
Redacted - section 40(2) FOIA, Engagament Director
Redacted - section 40(2) FOIA, Audit Manager
Internal Audit – KPMG:
Redacted - section 40(2) FOIA, Audit Director & PHSO’s Head of Internal Audit
Redacted - section 40(2) FOIA, Audit Manager
Parliamentary & Health Service Ombudsman (PHSO):
Dame Julie Mellor, Ombudsman and Accounting Officer
Alan Doran, Interim Chief Executive Officer
Gill Kilpatrick, Executive Director of Finance & Governance
Stevie Kenny, Head of Finance (by teleconference)
Redacted - section 40(2) FOIA, Governance, Risk & Assurance Manager (Committee
Secretary)
PRIVATE ITEM
1.
INTRODUCTIONS & WELCOME
1.1
The Chair welcomed Alan Doran and Stevie Kenny to their first PHSO Audit
Committee meeting. He also briefly introduced himself, noted that over recent
weeks he had spoken individually to each member of the Committee and key
Executives about current issues, challenges and risks facing the PHSO, and
outlined some of his initial thoughts and observations about the future
administration and operation of the Committee, and the structure and content of
meetings. In developing these matters, due account will be taken of the outcomes
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and recommendations of the Committee’s effectiveness review which took place
in March. He will keep the Committee updated on these matters.
The Chair then invited Alan Doran, Interim CEO, to introduce himself.
2.
APOLOGIES
2.1
Apologies were noted for Rebecca Marsh, Executive Director of Operations &
Investigations. The paper in her name, on Information Governance and Security,
had therefore been withdrawn from the agenda and would be presented on a
future occasion.
3.
DECLARATIONS OF INTEREST
3.1
No declarations of interest were made
4.
MINUTES, MATTERS ARISING AND DECISIONS BY THE CHAIR
Minutes of Meeting on 2 March 2016
4.1 The Committee approved the minutes of its meeting on 2 March 2016.
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Review of Action Points from Past Meetings
4.2
The Committee noted the updates provided for each outstanding action point.
All other actions arising from previous meetings had either been completed, were
the subject of substantive items on the current Agenda, or were in progress or
planned, as described in the ‘Status’ column of the report. The Chair noted that
this final column now included, as previously recommended, further status
updates and, where required, ‘Evidence of Compliance’, and thanked Redacted -
section 40(2) FOIA for amending the report in this way.
Note of Committee’s Effectiveness Review on 2 March 2016
4.3
The Committee approved the note of its effectiveness review and agreed that:
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Decisions by the Chair
4.4
5.
FINANCIAL MANAGEMENT
Update on the Financial Management & Governance Improvement Plan
5.1
Gill Kilpatrick introduced the paper for this item and stated that it incorporated
the key issues identified at the Committee’s meeting on 2 March 2016 concerning
PHSO’s financial stability.
5.2
Key points from the discussion on the progress with recruitment to the Finance
Team were:
5.3
5.4
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5.5
Paragraph exempt from disclosure under section 40(2) FOIA.
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Update on the 2015/16 Resource Accounts and Annual Report
5.6
Gill Kilpatrick introduced the paper for this item and
5.7
The Committee noted the report, including progress on the preparation of the
Accounts and Annual Report, progress on the strengthening of internal controls
and resolving issues identified during the Internal Audit on Finance and
Accounting, progress in relation to those issues reported by the NAO as part of the
Interim Audit, and the Year-End Close and Audit Timetable.
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Revised Structure for the 2015/16 Annual Report & Accounts
5.8
Gill Kilpatrick presented this item, which explained how changes to the
Government’s Financial Reporting Manual will affect the structure of PHSO’s
Annual Report and Accounts for 2015/16 in comparison to last year’s report. NAO
confirmed that it was content with the proposed structure of PHSO’s 2015/16
report. The Committee agreed that the paper was helpful and should be provided
to the other non-executive board members for their information.
(action 7)
6.
EXTERNAL AUDIT UPDATE
6.1
NAO introduced the report of its interim audit as carried out during March 2016. It
confirmed that NAO had made considerable progress with its audit, and that no
errors had been found to indicate a possible qualified opinion. The Committee
was given assurance that, although work remained to be done, the progress made
to date was positive.
6.2
Key points arising from the discussion on this report:
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Dame Julie Mellor left the meeting.
7.
INTERNAL AUDIT UPDATE
7.1
KPMG presented a report detailing its progress against the outstanding internal
audit programme for 2015/16, and introducing an agreed protocol for future
working arrangements between KPMG and PHSO.
7.2
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8.
PHSO CORPORATE MATTERS
Strategic Risk Register for Q4 2015/16
8.1
The Committee reviewed the most recent Strategic Risk Register, which had been
considered by the PHSO Board at its April meeting.
8.2
8.3
Presentation on Information Governance, Business Security and Information
Security
8.4
In the absence of Rebecca Marsh, who was due to deliver this presentation, the
Committee agreed to postpone this item until a future occasion. Subject to the
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length and nature of the proposed Agenda, the preference would be for this to be
presented to the July meeting.
Annual Report on Information Governance Compliance
8.5
Similarly, the Committee agreed to defer formal review of this report to its July
meeting. Meanwhile, the following feedback was given:
Fraud and Regularity Issues
8.6
The Committee noted this report, which confirmed that no incidents of fraud or
attempted and detected fraud had been reported in 2015/16 or in 2016/17 to
date. Key points arising from the discussion were:
Single Tender Actions
8.7
The Committee noted the report from the Executive Director of Finance, which
contained details of six single tender actions which had been undertaken since
the last reporting date.
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8.8
8.9
9.
AUDIT COMMITTEE MATTERS
Audit Committee Terms of Reference
9.1
In accordance with a recommendation of the Committee’s recent Self-
Effectiveness Review, the Committee Secretary had undertaken an exercise to
cross-check its Terms of Reference against the NAO model (and, in due course, to
develop the forward programme by reference to these revised Terms). Subject to
minor typographical amendments, the Terms of Reference, so amended, were
reviewed and approved by the Committee. Consistent with current practice across
other Public Sector organisations, and with the endorsement of the NAO, it was
proposed to recommend to the PHSO Board that the Committee’s title should be
changed to the
Audit and Risk Assurance Committee. This proposal should be
submitted to the Board for approval.
(action 22)
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Audit Committee Forward Programme
9.2
In view of the importance and length of Agenda of the July meeting, the
Committee agreed to extend the finish time of its meeting by one hour, if
feasible.
It was also agreed that the Chair would liaise with the Committee Secretary, with
a view to identifying a mutually convenient date for a ‘technical’ meeting
(probably in September), to enable the members (and any other interested Board
members) to receive a ‘walk through’ of the Accounts and Narrative Statements,
before the Audit Committee meeting at which they are to be approved for
signature by the Accounting Officer.
10.
ANY OTHER BUSINESS
10.1 None.
END.
Next meeting: Tuesday 19 July, 10am – 2pm
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