Date: 16 March 2023
Time: 13:30
Venue: MS Teams

Present—

• Judith Paterson (Acting Co-Chair)
• Dr Mark Simpson (Acting Co-Chair)

In attendance—

• Stephen Herbert, Secretary
• Dorothy Warren, Governance and Engagement Lead Officer;
• Lisa Kinnear, SCoSS Administrative Assistant
• Graeme Hill, Audit Adviser, SCoSS
• Lisa Duthie, Senior Audit Manager, Audit Scotland;
• Marie McFadden, Senior Auditor, Audit Scotland;
• Iram Younis, Auditor, Audit Scotland
• Alasdair Black, Head of Scottish Government Sponsor Unit; and
• Ross Stephen, Scottish Government Sponsor Unit.
• Lorna Fawcett, Accountant, Scottish Government;

There were no apologies.

No interests were declared.

The Minutes of the December 2022 meeting of the Audit Sub-Committee were approved.

The Audit Adviser outlined the purpose of the proposed additions to Standing Orders was to provide Standing Orders to govern the operation of the Audit Sub-Committee and of sub-committees and working groups that the Board may, in the future, wish to establish.  The Audit Advisor noted that the proposed additions were based on the approach taken in comparable advisory NDPBs.

The Sub-Committee agreed the standing orders for the Audit Sub Committee. Members discussed the proposed Standing Orders for the establishment and operation of SCoSS subcommittees / ad hoc committees and working groups and agreed that the proposed Standing Orders should be amended to reflect that the outcomes or recommendations of any working group would require Board approval to be published or taken forward.

It was agreed that an amended version of the Standing Orders be considered either via correspondence or at the next meeting of the Board.

The Secretary to SCoSS detailed the approach being taken in addressing the recommendations of the 2021-22 audit.  The Audit Adviser stated that he was supportive of the measures being taken to implement the recommendations.

The Audit Sub Committee noted the progress being made to address the 2021-22 external audit recommendations.

Officials from Audit Scotland outlined the content of the plan and timetable for the 2022-23 external audit.  There followed discussion regarding the proportionality of the external audit plan, the rationale underpinning the setting of the materiality thresholds in the plan and rationale for the proposed increase in the audit fee for 2022-23.

The Audit Sub Committee agreed the Audit Scotland 2022-23 audit plan and timetable.

The Audit Adviser provided a performance and assurance update and outlined a number of improvements that had been made recently to governance processes.

The Audit Sub-Committee noted the performance and assurance update.

The Board considered the business that will be required to be considered at future meetings of the Audit Sub-Committee as part of the 2022-23 audit.  The Board agreed the annual audit plan subject to duplicate items being removed from the agenda for the September meeting of the Audit Sub-Committee.

The Audit Sub Committee noted that no losses and special payments have been incurred since the previous meeting in December 2022.

The Audit Adviser provided an updated risk register including an additional risk, regarding the loss of key Secretariat staff, which had been requested at the December Board meeting.

The Board considered the risk register and agreed that the scoring relating to the loss of Board resource should be updated.

The Audit Sub-Committee noted that a revised risk register, taking account of changes proposed at the Sub-Committee, would be considered at the Board meeting on 30 March.

The Audit Sub-Committee agreed the following dates for meetings of the Audit Sub-Committee in 2023—

• Thursday 15 June – 2pm to 5pm;
• Thursday 14 September – 2pm to 5pm; and
• Thursday 16 November – 2pm to 5pm.

None

The meeting closed at 14:45