Members Present:
Dean Sullivan (Chair)
Claire McAleenan
Jill Laughlin
In Attendance:
Marie Mallon OBE (Chair NIAO Advisory Board)
Rodney Allen (Chief Operating Officer) – online via Teams
Brian O’Neill (Director)
Megan O’Neill (Head of Corporate Services)
Ronan Lappin, SCC (External Auditor)
Lee Glover, Validera (Internal Auditor)
Conor McGeown (Director) – Agenda item 2
Hannah Thompson (Auditor – Agenda item 2
Helen Dodds (Head of Quality and Innovation) – Agenda item 3
Louise Halligan (Secretariat Support)
Apologies
Apologies were recorded from Dorinnia Carville (C&AG).
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 26 January 2026 were agreed by all parties concerned and the matters arising noted as updated.
1. External Audit
Ronan Lappin advised that the audit of the NIAO annual report and accounts remains on track for completion within the agreed timelines. Findings will be reported at the June 2026 ARAC meeting.
2. Risk Management
Conor McGeown and Hannah Thompson joined the meeting. Conor advised that Hannah is a member of the Corporate Risk Register Working Group (CRRWG) and, following a recent SLT meeting, it was suggested that a representative from the CRRWG would attend ARAC on a regular basis to engage with ARAC Members. Members welcomed Hannah to the meeting.
Corporate Risk Register
Members were updated on key developments since the Committee last reviewed the Register in January 2026. Risks arising from the recent Quality Control Reviews and cyber security were highlighted for consideration. An additional theme of ‘Near Misses’, has been introduced to the Register to improve visibility of emerging and previously identified issues. Some members reported difficulties accessing the Risk Register online and requested that printed copies be made available.
Members discussed the position in relation to audit quality, noting the actions taken and the subsequent agenda item with the Chairman indicating he would return to this later in the meeting.
Draft Annual Assurance Statement
A draft Assurance Statement covering the period 1 April 2025 to 31 March 2026 was submitted as a late paper. The Chair asked members to review the Statement and advise Louise Halligan of any proposed amendments by Friday 5 June 2026. The final statement will be presented at the ARAC meeting scheduled for 22 June 2026.
3. Audit Quality - Summary of NIAO’s Corporate Actions
Helen Dodds joined the meeting and provided a comprehensive overview of the recent Quality Control Reviews conducted by ICAEW. Detailed discussion followed. Members sought and were provided with assurance on the following key areas:
• Guidance –updated relevant guidance has been issued to all audit staff.
• Root cause analysis – all root cause analysis’ have been thoroughly conducted with the individual teams involved in the review.
• Contracted-out audit reviews – members were provided with assurance regarding the quality and scope of the internal review for contracted-out audits.
Helen advised that SLT has provided approval for the establishment of a Quality Committee to oversee audit quality. It is envisaged that the Quality Committee could become a sub-committee of the Board. Similar arrangements are in place at other audit agencies. Work will commence shortly to develop detailed proposals including proposed membership and terms of reference. Members welcomed this and noted proposals will be brought to the NIAO Advisory Board for approval in Autumn 2026.
Members asked that consideration be given to introducing quality questions to the next staff survey, Brian O’Neill agreed take this suggestion forward.
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 agreed the report presented with no significant issues raised.
5. 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 requested that recommendations implemented could be more easily identified in the report. Brian O’Neill agreed take this suggestion forward.
External Audit Recommendations
There are currently no outstanding recommendations.
6. 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 January 2026 ARAC meeting.
Internal Concerns Raised
There are no ongoing cases and no new cases to report since the January 2026 ARAC meeting.
Complaints
No internal complaints have been received since the January 2026 ARAC meeting.
7. Direct Awards Contracts Report
Brian O’Neill presented a paper outlining the direct award contracts for the period 1 April 2025 to 31 March 2026. Members took assurance that each contract awarded had the appropriate levels of approval and fully complied with the procurement policy.
8. Current Policies to note:
• Anti-Fraud Policy
• Fraud Response Plan
• Raising Concerns Policy
• Business Continuity Plan
After discussion members endorsed the papers presented, taking assurance from the policies and procedures in place.
9. Review of ARAC Terms of Reference (ToR)
Members endorsed the ToR presented with no issues raised.
10. Draft ARAC Annual Report to the Advisory Board
Members endorsed the draft report presented. The final report will be presented to the Advisory Board at their meeting scheduled for 8 June 2026.
11. Internal Audit Reports:
Lee Glover presented the following reports:
• IA Annual Report 2025-26
• Delivery Management – Resource Planning – members noted the ‘satisfactory’ assessment provided.
• Internal Audit Follow-up Report
Internal Audit Strategy 2026-27 – Members discussed the reviews proposed for 2026-27. The Chair referred to the earlier discussion on audit quality and asked that consideration be given to the number of days allocated to the Delivery Management Report to enhance assurance around quality. Rodney Allen asked whether Validera could review the actions arising from the recent Quality Reviews to ensure completeness. Lee confirmed that this would be acceptable.
The Chair also asked that consideration be given to adding cyber security to the reviews proposed. Brian O’Neill and Lee Glover to discuss this proposal and report back to ARAC at the meeting scheduled for 22 June 2026.
12. Papers to note
No papers presented
13. AOB
No issues raised.
14. Date of Next Meeting
22 June 2026 @ 10am
15. The Committee met with Internal and External Auditors for private discussions.