Audit and Risk Assurance Committee meeting: 25 February 2025

• Mike Usher, Chair - Non-Executive Director, WG ARAC and CS&I ARAC
• Nigel Reader, Chair - Independent Member HSCEY ARAC
• Gareth Pritchard, Interim Chair - Independent Member ECWL ARAC
• Mel Doel, Interim Chair – Independent Member EET Group
• Andrew Goodall, Permanent Secretary
• Sioned Evans, Director General, ECWL Group
• Judith Paget, Director General, HSCEY Group, NHS Chief Exec.
• Tim Moss, Chief Operating Officer
• Peter Ryland, Chief Executive WEFO, deputising for Director General EET
• Dean Medcraft, Director of Finance
• David Richards, Director of Governance
• Kim Jenkins, Deputy Director Accounts, Governance & Grants
• Helen Morris, Deputy Director Audit, Assurance & Counter Fraud
• Richard Harries, Audit Wales
• Anthony Veale, Audit Wales
• Matthew Mortlock, Audit Wales

Also present

• Head of Corporate Governance Centre of Excellence
• ARAC Secretariat
• Programme manager – Office for Programme Delivery

1.1 No declarations of interest were received in relation to agenda items.

2.1 The committee agreed the minutes of the previous meeting as a complete and accurate record. Members noted the good progress made in implementing agreed actions and received updates on those not yet complete.

The Permanent Secretary provided the Committee with an update on several key areas, including:

• The Chief Operating Officer will be leaving Welsh Government at the end of March 2025 and arrangements are underway to appoint his successor.
• The Final Budget for 2025 -2026 was announced on 20 February 2025 and will now enter the Senedd scrutiny phase.
• Members of the Senior Civil Service have been briefed on the delivery methodology following the announcement on priorities by the First Minister. This includes the establishment of a Delivery Unit within the Cabinet Office to help manage progress during the final 12 months of this government.
• The PAPAC scrutiny session into Welsh Government’s 2023-2024 Consolidated Accounts which was held on 19 February 2025.

Corporate Risk Register

4.1 Members received a presentation on the Corporate Risk Register and discussed and endorsed the rationale for the risks that have been added and removed from it. Members also endorsed the proactive way in which it is being used to manage risk across the organisation.

4.2 Members welcomed the additional work planned to enhance the focus on horizon scanning and noted the importance of this work not just focussing on risks but also considering the opportunities associated with new and emerging areas.

Outstanding audit recommendations

4.3 The committee noted the good progress made in implementing agreed actions, but requested that future papers provide detail on the outstanding recommendations brought forward since the last meeting to allow the committee to better assess progress towards implementation.

Group ARAC quarterly reports

4.4 The committee considered and noted the quarterly reports from the Group ARAC Chairs following the last round of meetings.

Corporate Change Programme

4.5 The committee discussed Phase 3 of the Corporate Change Programme and endorsed the key areas on which it will focus. Members outlined the importance of effective governance arrangements for the programme including the cultural and behavioural changes that need to run alongside the system and process changes. Members requested a further update be provided towards the end of 2025.

Programme and project delivery

4.6 The committee received a presentation on the mechanisms, both introduced and planned, to enhance Welsh Government’s approach to programme and project delivery (PPM).

4.7 Members endorsed the work being undertaken and acknowledged the importance of PPM skills to the successful delivery of objectives. Given the importance of this area, Members requested an update on progress against planned activity at a future meeting.

Update on the financial position

4.8 The committee received an update on the in-year financial position for 2024-2025, which is forecast to deliver a balanced budget, and an update on the final budget for 2025-2026 which has recently been agreed.

4.9 The committee noted that delegated budgets for departmental running costs will transfer to Directors General from 1 April 2025.

 5.1 The committee received an update from Audit Wales on their proposed approach to review Welsh Government’s Consolidated Accounts for 2024-2025. Their work is anticipated to be completed by 30 November 2025 allowing the accounts to be laid before the Senedd and published during the first week of December 2025.

5.2 The committee also received an update on Audit Wales’ value-for-money studies programme, which included the progress of the National Fraud Initiative, further planned work following the publication of their report into Cancer Services in January 2025, the work into financial sustainability at the 4 culture bodies.

6.1 The committee received an update on the work of internal audit and the progress made in delivering the workplan for 2024-2025. Members were assured there will be a sufficient body of work to inform the Head of Internal Audit’s annual assurance opinion.

6.2 The committee received a presentation on the Internal Audit Charter and Mandate which are mandatory elements of the new Global Internal Audit Standards which come into effect in the public sector on 1 April 2025. The standards require the Charter and Mandate are considered by the ARAC and signed on its behalf by the Chair of the committee and the Permanent Secretary. The committee welcomed the Welsh Government’s compliance with the new standards and recommended that the documents be signed and made subject to annual review.

ARAC Secretariat

Date of Publication: May 2025