Board minutes: 27 June 2023

Apologies were received from Commissioner Elan Closs Stephens and from Sal Naseem, Independent Adviser to the Commission Board on EDI.

The Board welcomed the Business Applications and Data Team members, who provided an overview of current projects underway, one of which was delivering a new Intranet service for the Commission.

The Board discussed the team’s collaboration on work streams, volume of workload, data and IT security, time management, budget and lessons learnt from previous projects.

The Board thanked the team for their time and update.

Resolved: That the Board noted that there were no updated declarations of interests since the May 2023 Board meeting.

Resolved: That the Board agreed the minutes of the Board meeting of 23 May 2023.
 

The Board requested that the action tracker provide greater detail regarding the range of open items.

Resolved: That the Board noted the progress against actions.
 

The Chief Executive introduced the update report noting thanks to the Executive and the Senior Leadership teams for their support and input into the work on the Elections Act implementation, interim report on voter ID and the strategy and policy statement.

The Chief Executive drew the Board’s attention to the issue of capacity within the Commission, and the impact this had when rising challenges and continuing to fulfill our regulatory and statutory functions.

The Board was interested in discussing matching resources to the level of ambition within the Commisison as part of its strategic discussion sessions. This would enable the Board to have a better understanding of capacity and help to inform identification of the right level and type of resources.

The Interim Director, Finance provided an update on budget pressures and processes, with further updates and discussions to be held later in the agenda.

The Board received an update on the latest activites of the Equality, Diversity and Inclusion (EDI) Project Board which met this week, responding to a number of queries raised by the Independent Adviser to the Commission Board on EDI.

Resolved: That the Board noted the update on operations and matters arising.

Resolved: That the Board noted the Forward Plan of Board business 2023/24.

The Audit and Risk Assurance Committee (ARAC) Chair introduced the update report, providing an update on NAO’s audit of the Commission’s 2022/23 financial statements. Further updates were provided on discussions held at the ARAC meeting on the 19 June, along with follow up meetings with the NAO, ARAC Chair, Chief Executive and Commission Board Chair. 

The Board noted that while there were significant pressures within teams at the Commission and the NAO, we were still committed to having a near final set of balanced accounts for the Board to see at the July meeting, noting a possible risk that  the final opinion and laying of our accounts may be delayed until after the UK Parliament recess. 

The Board further noted risks, should the accounts be laid after recess in September, and discussed a lessons learnt report to be provided to a future Board meeting, along with an update on preparedness for next year’s cycle of accounts.

The Board was content with delegating final approvals to the ARAC Chair, Accounting Officer, Independent Adviser to the ARAC and the Commission Chair, on the Annual Report and Accounts and on any further disclosure amendments unless significant in nature.

Resolved: That the Board agreed to delegate the final approvals to the ARAC Chair, Accounting Officer and the Commission Board Chair on the Commission’s Annual Report and Accounts.
 

The ARAC Chair introduced the report, providing an annual internal audit opinion, based upon and limited to the work performed on the overall adequacy and effectiveness of the organisation’s risk management, control and governance processes. The opinion should contribute to the organisation's annual governance reporting.

The Board considered the report. Comments on the level of assurance that RSM had provided, will be reflected in the ARAC Annual Report to the Commisison Board scheduled for July’s Board meeting.

Resolved: That the Board noted RSM’s annual internal audit report.

The Interim Director, Finance introduced the report on the Annual Report and Accounts, as prescribed by HM Treasury, following the financial year-end. This included specific reports on Scottish and Welsh devolved functions. 

The Annual Report and Accounts were presented to the Audit and Risk Assurance Committee for review on Monday 19 June, which had identified changes that were required.

The Board noted the revised timetable to conclude the Annual Report and Accounts and was advised of a further meeting with the NAO this week, with a view to finalising the accounts.  The Board noted that there were risks of slippage because of work and capacity pressures at the NAO and Commission.

It was noted that excellent work had already been undertaken with the performance and accountability reports, with a near final report on the financial statements.  

Resolved: That the Board agreed, subject to some minor amendments, the near final Annual Report and Accounts for all elements of the report up to but not including Statement of Outturn against Parliamentary Supply (SOPS).

Resolved: That the Board delegate final agreement, subject to further changes, to the Accounting Officer in consultation with the Chair of the Commission, and the Chair of ARAC.

UPDATE ADDENDUM

Following a meeting with NAO on 30 June, it was agreed by the Accounting Officer, Chair of ARAC, Board Chair, and interim Finance Director that the Annual Report and Accounts would be laid after Recess.

The Remuneration and Human Resources Committee (RemCo) Chair introduced the report, summarising the work of the RemCo during the financial year, to provide assurance to the Commission Board in support of the 2022/23 governance statement prepared by the Accounting Officer.

The Board noted that RemCo would continue to look in detail at aspects of delivery of the People Strategy, as well as considering long standing issues of Equality, Diversity and Inclusion.

Resolved: That the Board noted the work of RemCo during 2022/23

The Director, Communications, Policy and Research introduced the report, reiterating the Commission’s position on the principle of an SPS, and highlighting issues outstanding from the statutory consultation in relation to the content of the draft SPS. The report sets out how the Commission will highlight our views to parliamentarians and our proposed approach to future stages of the parliamentary process.

The Board discussed the progression of this policy, the Commission’s proposed approach, and communications with parliamentarians on the subject during the current stage where representations can be made.

Resolved: That the Board noted the report.

The ARAC Chair provided an oral update of the Committee meeting held on the 19 June 2023.

The Board noted that it was an extended meeting with a full agenda covering items of business on debt write off policy, internal audit specification, draft annual report and resource accounts, annual assessment of information risk management, NAO update, internal audit reports, committee effectiveness review, anti-bribery and anti fraud policy review, schedule of audit recommendations and the latest registers of interests, gifts, donations and hospitality.

It was noted that the annual internal audit strategy 2023-2026 would be brought back to the September ARAC meeting, with a review from the Independent  Adviser to the Committee as to areas that he considered required further audit. 

Resolved: That the Board noted the oral update.

The RemCo Chair provided an oral update of the Committee meeting held on the 26 June 2023.

The Board noted updates on items of business on the people strategy, equality, diversity and inclusion, a deep dive on recruitment, pay remit 2023/24, and an update on key management information.

The Board noted that RemCo was reassurred that the Human Resources team is now fully resourced, and that they had met the new recruitment transformation lead who attended the meeting. 

The Board was advised that RemCo met with the trade union in advance of discussing the pay remit paper, which they had then agreed. 

The Board noted that the terms of reference for the EDI project board would be circulated to the Board for review.

Resolved: That the Board noted the oral update.

The Director, Regulation and Digital Transformation introduced the report, which  forms the first in a series of discussions on our strategic objectives to inform development of our next corporate plan. 

The Board noted that this paper related to our objective “Transparent political campaigning and compliant political finance”. 

It was noted that the purpose of the discussions was to test whether the existing objectives are the right basis for planning, and to establish a shared understanding of the challenges, risks and opportunities in each area of our work, and thus the level of ambition that is stretching but achievable. Following the discussions on each objective, we will move to prioritisation and developing the outline of the new plan.

The Board noted that each introductory paper will summarise our existing work, provide links to key evidence, and suggest questions to guide the discussion. The discussion is to be evidence-led, strategic, future-focused, ambitious, on-topic, and conducted as one team.

The Board was positive about proposals to underpin our legal duties and functions as a regulator with a focus on digital advances and data transparency, and on addressing the causes of low public confidence in the integrity of political campaigning.

Resolved: That the Board noted key discussions on testing our assumptions, ambition and impact, and investing in our work.