MINUTE
Present
| Susan Douglas-Scott | Chair, Board Director (till 11:30 am) | |
| Liz Humphreys | Vice Chair, Board Director (took Chair from 11:30am) | |
| Alan Dickson | Board Director (till 1 pm) | |
| Betty McAtear | Board Director (from 10:15 am) | |
| Bridget Sly | Board Director | |
| Twimukye Mushaka | Board Director |
Apologies
Fiona O’Donnell Board Director
In Attendance
Peter Scott CEO
Harvey Tilley Chief Operating Officer
Jim Maguire Finance Director
Louise Carmichael TIAA, Internal Auditors
Steve Cartwright Henderson Loggie, External Auditors
Susie Braham Head of Independent Living Fund Policy and Sponsorship
Aileen McNiven Executive Business Manager (Secretariat)
Welcome, declarations of interest and apologies
The Chair welcomed everyone to the ILF Scotland Board meeting.
There were no declarations of interest expressed from any attendees.
Apologies were noted.
1. Minutes of Previous Meeting
The ILF Scotland Board approved the Board Minute of 10 April 2017 as an accurate account of the meeting with the following amendment.
Pg. 4, Para 11, Line 1
Remove: ILF Scotland
Replace with: Scottish Government (SG)
2. Matters Arising
The following points were noted:
Pg. 2, Matters Arising - Policy 13- Decision Review
PS confirmed Policy 13 amendment has been formally approved by the Scottish Government and implemented accordingly.
Pg. 2, Matters Arising – Policy 4 - Available Income Policy
Susie Braham apprised the meeting that the reviewed and amended Available Income Policy has been submitted to Geoff Huggins , Director for Health and Social Care Integration, Scottish Government and Christine McLaughlin, Director of Health Finance, Scottish Government for approval, prior to formal sign off from Aileen Campbell, Scottish Government Minister for Public Health and Sport.
The proposed cost to implementing the 2 changes to the Available Income Policy is £107k.
The Chair (SD-S) asked Peter Scott and Susie Braham what the blockages had been as this policy change had been requested over 12 months ago.
Peter Scott (PS) informed the meeting that the stakeholder group in Scotland had requested the amendments to the Available Income Policy during their first meetings early in 2016. PS added that the work had been complex, and we needed to be as confident as we could be about the cost implications and affordability.
Susie Braham assured Board Directors that a more efficient way to make policy amendments has been agreed by the Sponsor Team and ILF Scotland executives to avoid delays in the future.
3. Vice Chair (Board Directors Only)
Following a closed session Liz Humphreys was unanimously voted as Vice Chair for ILF Scotland Board of Directors and accepted the position.
4. Directors Resolution to Reappoint Auditors
External Auditors
The Board unanimously approved and signed the resolution to reappoint the External Auditors, Henderson Loggie to June 2018.
Internal Auditors
The Board unanimously approved and signed the resolution to reappoint the Internal Auditors, TIAA to June 2018.
5. Feedback from meeting with Minister for Social Security
(Verbal)
The Chair reported a good, positive and informative meeting with Jeane Freeman, Minister for Social Security, which Peter Scott and Susie Braham also attended on Wednesday 14th June 2017.
The Minister indicated that at present ILF Scotland is not being considered in the context of the new devolved Department of Social Security Scotland. However ILF Scotland will be part of planned future thinking around government structures post the 2020 Scottish Parliament elections. The Minister has committed to involving us in these discussions at an early stage.
PS also informed the meeting that HT has been invited to join a Social Security Scotland working group to support the set-up of the new Social Security organisation, and we are also to be invited to join a group looking at assessment in the new Social Security Agency.
The Minister would like to continue the conversation and asked civil servants to arrange a follow up in due course.
6. Board of Directors – Code of Conduct
(Refer to paper)
PS spoke to the paper, informing the Board Directors that the Code of Conduct is the Scottish Government model code, amended for ILF Scotland. Prior to the meeting, however, Beatriz Sanchez, Sponsorship Manager, advised that she is seeking legal advice on a technicality, and she will advise us of a possible further amendment when this advice is received.
The Board Directors agreed the paper should be re-distributed following amendments.
ACTION 1: Following further discussion with B Sanchez, PS to amend and re-distribute the Code of Conduct.
The Board noted the Code of Conduct.
7. Proposed Change to Public Body Status
(Refer to paper)
Following amendments and discussion at the recent Audit & Risk Committee (ARC), PS introduced the paper explaining the current status of the ILF Scotland Company and the rational for the current company structure.
The paper outlines the proposed change in the status from a Significant Other Public Body to an Executive Non-Departmental Public Body (NDPB).
PS explained that a change of status would provide clarity and strengthen the position of ILF Scotland going forward. Governance would remain fundamentally unchanged and there would be the same parity for staff at ILF Scotland as at other NDPB’s.
PS confirmed that should ILF Scotland change to an NDPB , ILF Scotland may be subject to additional regulations, such as the ‘specific equality duties’ which may have an impact on workload.
PS clarified that the Framework Agreement had not been agreed and signed off yet, however was on the agenda for the forthcoming Sponsor team meeting. Negotiations would also continue simultaneously to finalise a framework agreement even if NDPB status was requested.
The Board agreed the Executive Team should continue the process of negotiations with the Scottish Government to change status from a Significant Other Public Body to a Non-departmental Public Body an NDPB.
ACTION 2: PS to continue the process of negotiations to change status to an Executive NDPB.
8. Strategic Corporate Report
(Refer to paper)
PS introduced the Strategic Corporate Report and asked the Board to note the omission of some figures which will be available only at the end of the 2nd Quarter (30th June).
PS spoke at length to the paper, outlining the key points presented in the Executive Summary. The Board discussed the paper content.
PS informed the meeting that we aim to present an updated version of the Corporate Report at the next Board meeting in October, including appropriate KPI’ s which will be agreed with the Board.
As part of this new look corporate report the Board agreed to convene a development session around KPIs prior to the next Board meeting.
The Board noted the approach from Social Work Scotland inviting an application from ILF Scotland for corporate membership, and agreed that this was but one example of the impressive way in which ILFS has been able to forge constructive working relationships with key stakeholders to the benefit of disabled people.
ACTION 3: AMcN to identify, organise and circulate details of the Board Development session in due course.
The Board noted the Strategic Corporate Report.
9. ILF Scotland New Scheme Issue Report
(Refer to paper)
PS introduced the paper, highlighting an area of risk in relation to the new ILF Scotland scheme.
PS informed the meeting of the escalating and significant risk, flagged up at this early stage, regarding managing the introduction and success of the new fund scheme in a controlled manner. PS spoke of the possible damage to the reputation of SG and ILF Scotland if the launch is not thoroughly tested.
Due to time constraints and ministerial commitment from SG that the new fund would be operational in 2017, the SG have indicated they would prefer to introduce the new fund scheme without limiting applications.
The Board discussed this at length and considered options of opening the scheme, as outlined in the paper, through application windows (x 3) designed around the academic year. This would allow time to screen applications, control and make awards in a timeous manner.
PS also added that some local authorities are aware of the new fund scheme criteria and are looking at maximising recipients awards and preparing for the launch in October.
PS assured the Board that the project team are planning for surges in applications and working on staffing contingency and also ensuring current staff are trained and prepared for the launch in October.
The Board noted the Ministerial announcement due on Thursday 29th June 2017, which the Chair and CEO would attend.
The Board noted the Project Team Board will continue to discuss the most effective way to launch the new fund scheme and will feed back as appropriate to the Board.
The Board noted the new scheme fund will be a broad discretionary fund with the first phase delivering transition support to young people aged between 16-21 only. Further phases supporting other cohorts will be decided in co-production in due course.
HT updated the Board that the Northern Ireland Sponsor Team are talking to the stakeholders group and have indicated they may consider introducing their own new fund in due course.
SD-S spoke of the requirement for a further meeting with the Minister for Health & Social Care, Aileen Campbell, to discuss the new scheme fund. SB confirmed this would be beneficial and suggested this meeting may take place once the delivery phase of the new scheme fund is underway.
The Board noted the ILF Scotland New Scheme Issue Report.
10. Audit Committee Report
(Verbal and refer to previous minute)
The Board noted the following Audit & Risk Committee Minutes:
Audit & Risk Committee Minute – 30 March 2017 – APPROVED
Audit & Risk Committee Minute – 12 June 2017 – DRAFT
Alan Dickson (AD), the Chair of the ARC updated the Board on the meeting of the recent ARC, directing them to the Draft Minute of 12th June 2017. AD reassured the Board of the ARC’s confidence in both sets of numbers (Statutory Accts & Annual Accounts) and congratulated the Executive Team on their high standard of work.
Risk Register
AD spoke of the recent work on the Risk Register between Liz Humphreys (LH), PS and HT. The updated version of the Risk Register will be presented at the next ARC; highlighting key risks which need Board attention. The following amendments, designed to ensure appropriate board scrutiny of key risks, are proposed: -
AD thanked LH for her invaluable input.
AD requested Board Directors to direct any comments to take forward the updated version of the Risk Register to PS by the end of the week.
The Board noted the Audit & Risk Committee Report.
11. Statutory Accounts & Annual Report 2016/17
(Refer to paper)
JM spoke to the Statutory Accounts & Annual Report 2016/17, leading the Board through each section.
JM provided a brief overview of the key matters and related financial disclosures
The Board discussed these matters, noting that they had been reviewed in detail by the Audit & Risk Committee, with internal and external auditors.
The Board approved and the Chair signed off the Statutory Accounts and Annual Report 2016/17.
2017-18 Financial Support Letter
(Refer to paper)
The Board noted the Letter of Financial Support from the Scottish Government dated 17th May 2017.
External Audit Report Findings
(Refer to paper)
Steve Cartwright, Henderson Loggie spoke to the paper, outlining the content. He advised the Board that there were no qualifications to the accounts, and the auditors had made no amendments to the numbers as presented to them by ILF Scotland. The received full support and co-operation throughout the audit process.
PS discussed the concern regarding the use of Commercial Credit cards by senior staff within ILF Scotland and assured the Board robust processes are in place to ensure financial compliance. The Board agreed the ARC should discuss further at the next Audit & Risk Committee in October.
ACTION 4: Commercial Credit Card – agenda item to be added to ARC Meeting in October.
The Board discussed the paper content, again noting they had been reviewed in detail by the Audit & Risk Committee, with internal and external auditors.
The Board noted the Audit Report Findings.
Letter of Representation
(Refer to paper)
The Board approved and the Chair signed off the Letter of Representation.
12. Management Accounts (to May 2017)
(Refer to paper)
JM introduced and spoke comprehensively to the Management Accounts (to May 2017) which are accumulative of April and May 2017.
The Board noted the Management Accounts were completed and distributed prior to receipt of the Grant in Aid Letter (tabled) received on the evening of Thursday 22nd June 2017.
Had the Grant in Aid letter confirming our funding position had been received before the papers were distributed then the accounts would not show the small deficit. It is expected that the Administration budget deficit will disappear from June onwards.
The Board noted the comfortable start to the new financial year, whilst recognising the degree of uncertainty arising from the implementation of the Scottish Living Wage, which could take a further nine months to unravel fully in the accounts.
Grant in Aid Letter
(Refer to tabled letter)
The Board discussed the recent Grant in Aid (GiA) Letter, thanking the Sponsor Team for the early receipt of the letter.
The following points were raised:
Award GiA reduced by SG from £47.2m to £46m without discussion - concerns raised that this may reduce year on year. The Board requested reassurance that this would be a one off.
The Sponsor team could not guarantee the GiA budget year on year however will take advice on the current SG position and report back.
ACTION 5: SB to feedback SG position following further discussions with SG Health Finance.
The Board noted that the letter acknowledges the total GiA does not include any provision for any increase arising from a new pay structure. and states that any additional GiA needed for this will be advised separately.
The Board agreed PS will reply stating the Board are content, subject to two points currently outstanding which SG are aware of :
1. Expected reference to £30K capital spend (not included)
2. No reference to ongoing running costs for administering the new fund.
The Board noted the Grant in Aid Letter.
All comments re the tabled GiA Letter to be sent to PS by end of Thursday 29th June. PS to respond thereafter to SG outlining the Boards position.
ACTION 6: Board Directors to feed in comments to PS regarding the Grant in Aid Letter by Thursday 29th June.
The Board noted the Management Accounts to May 2017.
13. Remuneration Committee Update
(Verbal)
HT updated the Board that he had attended a meeting with SB and Karen Hay, Job Evaluation Adviser/HR Professional Adviser, SG on Friday 23rd June to conclude the pay and grading discussion and benchmarking.
HT added that the position was not entirely satisfactory, however has closed the gap towards an acceptable solution.
By Thursday 29th June, HT will provide SB with the following figures.
1. Retrospective costing to August 2016 (previously accrued), to include projections for 3 years from August 2016-July 2019.
2. Costing’s from August 2017, to include 3 year projections to July 2020.
SB indicated a response date of 17/18 July. (SB will submit the pay structure for agreement to Geoff Huggins, Director for Health and Social Care Integration, Scottish Government and Christine McLaughlin, Director of Health Finance, Scottish Government before final sign off by the SG Remuneration Committee.)
HT included caveats that the attrition rate may rise due to the unsatisfactory conclusion and negative impact for some staff. HT added it also escalates the risk across the organisation at a critical time. HT indicated that staff will be informed on a one to one basis of the outcome of the full process in due course.
It was noted that the meeting planned between the Remuneration Committee and Jamie MacDougall, Deputy Director, Health & Social Care, SG has been postponed due to annual leave. A further date will be identified and confirmed in due course.
The Board were informed that a comparison of ILF Scotland pension with other NDPB’s pensions is being carried out with a view to reviewing our current arrangements. The Board will be updated in due course.
The Board noted the Remuneration Committee update.
14. MACC’s & PQQ’s
(Refer to paper)
A short discussion developed regarding the paper and the complexities of the question and answer referred to in the paper.
The Board Directors agreed that Margaret Wheatley (MW), Head of Policy would contact Twimukye Mushaka (TM) to discuss out with the meeting. Any feedback (if appropriate) will be circulated to Board Directors accordingly.
ACTION 7: MW to contact Twimukye Mushaka to discuss specific details of MACC & PQQ.
The Board noted the MACC’s & PQQ’s.
15. Health & Safety Report
(Refer to paper)
The Board noted the Health & Safety Report.
16. AOB
16.1 Draft Committee Meeting Schedule 2018
The Board Directors approved the Board Meeting & Committee Schedule 2018 with the following amendments:
Pg. 1 – Board meeting
Spring meeting – Change to Monday 30th April 2018
Autumn Meeting – Change to Monday 29th October 2018
Pg. 3 – Remuneration Committee
Summer meeting – Change to Atlantic Quay, 11 am-1 pm
ACTION 8: AMcN to distribute the amended Draft Committee Meeting Schedule 2018.
PS apologised to the meeting that due to unforeseen circumstances he can no longer attend the next ILF Scotland Board Meeting planned for the 23rd October 2017. PS requested a possible change of date to accommodate this change.
The Board Directors agreed to change the date.
ACTION 9: AMcN to identify and distribute a suitable date, time and venue.
16.2 Quarterly Corporate Report/Management Accts to June 2017/Pay Remit
Due to the Board meeting prior to the end of the 2nd Quarter, LH requested the Executive Team distribute the quarterly report and management accounts once complete, along with any updated information HT presents to Scottish Government re pay remit.
ACTION 10: Following the end of the 2nd Quarter, the Executive Team to distribute the above reports to Board Directors; including omitted data.
The Board Directors discussed the possibility of changing the Summer Board meeting to mid/end of July to allow the Executive team to present updated reports.
The Board Directors agreed that due to the holiday season the dates would remain for 2018; however it would be kept under review.
16.3 Board Directors – Assessment Visits
Following on from discussions with staff during the lunch break, the Board Directors requested the Executive team to organise 4 x Board Directors to accompany Assessors on recipient’s assessment visits.
2 x Board Directors to visit in 2017 (current ILF Scotland recipients)
2 x Board Directors to visit in 2018 (attend New Fund Scheme assessments)
HT to organise the visits with the Social Work and Operations team as appropriate.
ACTION 11: HT to oversee organisation of Assessment visits for Board Directors.
17. Close
Next Board Meeting Date:
Monday 19th October 2017, GCiL, Brook Street, Glasgow
