2015/16 Mid Year Assurance Statement

2015/16 MID YEAR ASSURANCE STATEMENT

Following review of the attached 2015/16 Mid-Year Assurance Statement by the Governance and Audit Committee at their meeting on 20 October 2015, the BSO Board is now asked to undertake a final review prior to sign off by the Chief Executive. In reviewing the Statement, BSO Board is asked to note thattwonew significant internal control divergences, at paragraph 9.2, have been reported during the first six months of this financial year. These relate to: the temporary deletion ofFPL system standing data and also the potential risk of a significant control divergence following the full implementation of the FPS replacement systems.

The BSO Board may also wish to note that the following changes have been made by DHSSPS to the Mid-Year Assurance template in respect of the 2015/16 year:

• Paragraph 4 has been amended to reflect that targets are approved by DHSSPS following review of BSO’s Business Plan. This differs from previous years which stated that targets were set by the Department.

• Paragraph 8 has been added to confirm that the NAO Audit Committee Self Assessment Checklist has been completed by the GAC and that an action plan is in place. Audit Committees are no longer required to send their individual returns to DHSSPS.

A completed Mid-Year Assurance Statement was required by the DHSSPS by Friday, 16 October2015however, as agreed with DHSSPS, a draft version was provided within the timeframe and a signed version will be forwarded following BSO Board review.

BUSINESS SERVICES ORGANISATION: MID-YEAR ASSURANCE STATEMENT

This statement concerns the condition of the system of internal governance in Business Services Organisation as at 30 September 2015.

The scope of my responsibilities as Accounting Officer for Business Services Organisation, the overall assurance and accountability arrangements surrounding my Accounting Officer role, the organisation’s business planning and risk management, and governance framework, remain as set out in the Governance Statement which I signed on 12 June 2015. The purpose of this mid-year assurance statement is to attest to the continuing effectiveness of the system of internal governance. In accordance with Departmental guidance, I do this under the following headings.

1. Governance Framework

The Governance framework as described in the most recent Governance Statement continues in operation. The Governance and Audit Committee, the Business Committee and the BSO Board have continued to meet and to discharge their assigned business. Minutes of their meetings, together with board meeting minutes containing the Committees’ reports, are available for Departmental inspection to further attest to this.

1. Assurance Framework

An Assurance Framework, which operates to maintain, and help provide reasonable assurance of the effectiveness of controls, has been approved and is reviewed by the BSO Board. Minutes of board meetings are available to further attest to this.

1. Risk Register

I confirm that the Corporate Risk Register has been regularly reviewed by the board of the organisation and that risk management systems/processes are in place throughout the organisation. As part of the board-led system of risk management, the Register is presented to the BSO Board for discussion and approval and all significant risks are reported to the Board – most recently on 25 June 2015.

In addition I confirm that Information Risk continues to be managed and controlled as part of this process.

1. Performance against BusinessPlan Objectives/Targets

I confirm satisfactory progress towards the achievement of the objectives and targets set out in the organisation’s business plan as approved by the Departmentwith the exception of those listed on the table below.

Objectives/Targets outside of Target Date (as at 30 September 2015)

1. Controls Assurance

I confirm actions are being taken to implement Action Plans arising from the year-end self-assessments of compliance with Controls Assurance Standards. As at 30 September 2015, 91% actions have been fully or partially implemented. The remaining actions will be implemented in 2015/16.

1. External audit reports

I confirm actions are being taken to implement the accepted recommendations made by external audit. The BSO has in place a process to ensure that all outstanding recommendations are implemented within an acceptable timescale.

1. Internal audit

In 2015/16, the Internal Auditor has carried out seven audits as shown in the table below.

I confirm actions are being taken to implement the accepted recommendations made by internal audit. The BSO has in place a process to assist with full implementation of all recommendations within an acceptable timescale. Furthermore the Head of Internal Audit, in her Mid Year Follow Up report as at 30 September 2015, stated that 366 (82%) of the total 449 recommendations examined were fully implemented, a further 72 (16%) were partially implemented and 11 (2%) were not yet implemented. In addition, of the total recommendations reviewed, 271 related to Shared Services and that 221 (82%) had been fully implemented, a further 42 (16%) partially implemented and 7 (2%) were not yet implemented at the time of review.

1. NAO Audit Committee Checklist

I confirm completion of the NAO Audit Committee Checkliston 20 October 2015and that an action plan has been implemented to address any issues. I also confirm that any relevant issues will be reported to the Department.

1. Internal Control Divergences

• Ongoing deployment of employee self-service (ESS) and manager self-service (MSS) to all appropriate users
• Introduction of single pay frequency (planned early 2016/17)
• Completion of eRecruitment by 31 December 2015

• Auto ordering;
• Self billing;
• Cloud Invoicing; and
• Increased use of FPM