Audit and Risk Assurance Committee (ARAC)
Monday 26 January 2026, 10am
Lagan Room, University Street, Belfast
Members Present:
Dean Sullivan (Chair)
Claire McAleenan
Jill Laughlin
In Attendance:
Marie Mallon OBE (Chair NIAO Advisory Board)
Dorinnia Carville (C&AG)
Rodney Allen (Chief Operating Officer)
Brian O’Neill (Director)
Megan O’Neill (Head of Corporate Services)
Ronan Lappin, SCC (External Auditor)
Lee Glover, Validera (Internal Auditor) – online via Teams
James Godsmark, Validera (Internal Auditor) – online via Teams
Conor McGeown (Director) – Agenda item 3
Suzanne Jones (Director) – Agenda item 5
Corey Parr (Senior Auditor) - Agenda item 5
Louise Halligan (Secretariat Support)
Apologies
No apologies were recorded.
Declaration of Conflicts of Interest
There were no issues declared by members.
Minutes and Matters Arising from the previous meeting
Minutes of the Meeting held on 22 September 2025 were agreed by all parties concerned and the matters arising noted as updated.
1. External Audit
Ronan Lappin presented the audit strategy for 2024-25. Members noted the content of the report, including the risks, materiality, timetable and the fees presented, all agreed they were content with the Strategy presented.
2. Internal Audit
James Godsmark provided an update on the following:
2.1 Payroll and Expenses – Satisfactory opinion issued with one recommendation raised.
2.2 HR Health Check – Satisfactory opinion issued with four recommendations raised and three suggestions for good practice noted.
2.3 Progress Report – Members noted the progress report presented against the Annual Audit Plan. Lee Glover advised that all reports will be completed by the year-end (31 March 2026).
3. Risk Management
Conor McGeown joined the meeting and provided an update on the following:
Corporate Risk Register
Members were advised the Register has now been finalised in its new Excel format with only minimal changes made since the September 2025 ARAC meeting. All changes made were tracked for members convenience.
Corporate Risk Register Working Group
The Senior Leadership Team (SLT) reviewed the composition of the Group at their January meeting and expressions of interest are currently being sought from staff across a range of grades and disciplines within NIAO. Conor noted that this approach will strengthen the Group’s ability to provide comprehensive oversight of key organisational risks, while also creating valuable development opportunities for Trainees and Higher Level Apprentices. The newly constituted Group is expected to be in place by March 2026.
Risk Management Strategy
Conor advised that the Risk Management Strategy, referenced during the September 2025 Risk Workshop, had been updated and was approved by SLT at its December meeting. He confirmed that the revised Strategy and the updated Corporate Risk Register have been uploaded to the NIAO intranet for staff access. A discussion followed regarding NIAO risk management culture and the levels of assurance provided by managers and their respective teams.
4. Financial Statements - Judgements /Financial Estimates
Megan O’Neill presented a paper to keep members apprised of any judgements/financial estimates to be used in the preparation of NIAO’s Annual report and Accounts for 2025-26. Members discussed the judgements and agreed the report presented with no significant issues raised.
5. Evaluation of Quality Management
Suzanne Jones and Corey Parr joined the meeting and presented an overview on the recent review and evaluation of NIAO’s system of quality management conducted by the Technical Team. Members were advised that SLT had reviewed quality management documentation prepared by the Technical Team at its December 2025 meeting and agreed the grading for NIAO’s system of quality management, in line with ISQM 1.
Members sought and were provided with assurance on the controls in place and the grading and assessment process.
6. Report Tracking Implementation of Audit Recommendations
Internal Audit Recommendations
Brian O’Neill provided an update on outstanding recommendations arising from recent Internal Audit reports. Members sought assurance regarding the actions taken to address the recommendations identified. A discussion followed on the presentation of information within the report, and it was agreed that revisions would be made to more clearly highlight outstanding recommendations, separating any advisory points included in the current report.
External Audit Recommendations
There are currently no outstanding recommendations.
7. Fraud, Raising Concerns and Complaints Report
Fraud
Brian O’Neill advised that there are no ongoing cases and no new fraud/raising concerns cases to report since the September 2025 ARAC meeting.
Internal Concerns Raised
There are no ongoing cases and no new cases to report since the September 2025 ARAC meeting.
Complaints
No complaints have been received since the September 2025 ARAC meeting.
8. ARAC Annual Programme of Work 2026-27
The 2026-27 annual programme of work was considered and endorsed by members.
9. AOB
External Audit Provision of Services
Ronan Lappin (SCC - External Auditor) left the meeting.
Discussion followed regarding other public sector work being undertaken by NIAO’s current external auditors (SCC). In considering the FRC Revised Ethical Standard 2024 and assessing any potential actual or perceived conflicts of interest, members were satisfied that SCC has appropriate safeguards in place to ensure there is no current or potential conflict of interest with SCC completing the external audit of NIAO. Members recommended that NIAO issue a formal response to SCC setting out its consideration and conclusions on the current position and reminding SCC to inform NIAO as soon as possible of any further public sector work undertaken.
10. Date of Next Meeting
26 May 2026 @ 10am
11. Ronan Lappin (SCC – External Auditor) rejoined the meeting.
The Committee met with Internal and External Auditors for private discussions.