Audit & Risk Committee - April 2024

This document contains the agenda for the Cairngorms National Park Authority's Audit and Risk Committee meeting on 19 April 2024 at 3.00pm. The meeting will cover topics including approvals of previous meeting minutes, declarations of interest, the annual audit plan, a governance statement, internal audit reviews, and a strategic risk register. Several individuals from Mazars and Azets will present reports and updates. The next meeting is scheduled for 21 June 2024.

This document contains the Cairngorms National Park Authority's 2023/24 Annual Audit Plan. Prepared by Louise Allen and Tom Reid, it outlines the external auditor's plan for reviewing the Annual Report and Accounts. The plan uses a risk-based approach, focusing on important aspects needing careful judgment. It also clarifies the responsibilities of both the auditor and those governing the authority, details audit fees (in section 07), and confirms Mazars' commitment to independence. The Audit and Risk Committee is asked to review the plan and raise any questions with the external auditor. The auditor will later present their findings to the committee.

This document contains the Cairngorms National Park Authority's annual audit plan for the year ending 31 March 2024. It summarizes the audit approach, key risks, and the responsibilities of both the auditors (Mazars LLP) and the Park Authority. The plan details the audit team, timeline, and fees, emphasizing the auditors' commitment to independence and the methods used to assess risks and materiality. Appendices include key communication points and information about upcoming accounting issues.

This document contains an internal audit VAT review of the Cairngorms 2030 programme. Azets, a firm of accountants, reviewed the Park Authority's activities and found no current VAT issues. However, potential risks may arise as projects progress, especially when agreements are drafted or problems need solving. Azets recommends creating a checklist to identify and manage these VAT risks for each project and suggests engaging Azets to explain these VAT issues to non-finance staff. A quote of £5,280 (including VAT) was given for this work.

This document contains a VAT review for the Cairngorms National Park Authority (CNPA), conducted by Azets in November 2023 and updated in March 2024. The review examined the CNPA's VAT position regarding the Cairngorms 2030 Programme, a £42.3 million initiative with numerous funding partners. The report finds that the CNPA's receipt of grants is generally outside the scope of VAT, but potential VAT risks exist within future project agreements and collaborative partnerships. The review recommends developing a checklist to assess VAT implications in contracts and advises the CNPA to consider potential VAT registration requirements based on income from taxable supplies. Appendices provide further details on HMRC guidance regarding grants versus service level agreements and VAT recovery on expenditure.

This document contains a report on the progress of implementing management actions from previous internal audits within the Cairngorms National Park Authority. Azets, the Park Authority's internal auditors, reviewed 41 open actions, finding that 28 remain and two are no longer applicable. The report summarizes progress, provides updated completion dates, and requests evidence for actions marked as complete. The Audit and Risk Committee is asked to note the progress made and any revised due dates.

This document contains a draft Governance Report for the Cairngorms National Park Authority's 2023/24 Annual Report and Accounts. It's for the Audit and Risk Committee to review. The report covers the Park Authority's governance structure, including the Board and its sub-committees, internal and external audits, risk management, and shared services. The Committee is asked to review the draft Governance Statement and approve it for inclusion in the final report, after making any necessary changes. The document also includes details on the Authority's performance, activities, and compliance with regulations and best practices.

This document contains the Cairngorms National Park Authority's internal audit report for 2023/24. It's a follow-up report showing the progress made on management actions from previous audits. The report shows that 17 out of 49 actions were completed, two more are complete but awaiting validation, and another two have been superseded. Twenty-two actions are partially complete, four incomplete, and two not yet due. The report recommends focusing on outstanding actions, especially older ones and those with higher priority grades. Appendices detail the status of actions by report, a summary of outstanding actions, and audit risk categorisations.

This document contains the Cairngorms National Park Authority's proposed internal audit plan for 2024/25. Prepared by Azets, the plan considers the previous three years' work and the park's changing risks. The Audit and Risk Committee is asked to review the plan's strategic approach, assess its suitability for the park's needs, and approve it for the upcoming financial and operational year. The full plan is available in Annex 1.

This document contains the Cairngorms National Park Authority's internal audit plan for 2024/25. It outlines the planned audits, their objectives, and the timetable for completion. The plan is risk-based, focusing on key areas identified in the Park Authority’s risk register, and it aligns with best practices for internal auditing. The document also details the internal audit team, their contact information, and how the plan will be delivered. Appendices provide further detail on the corporate risk register, the audit universe, and the internal audit charter.

This document contains the Cairngorms National Park Authority's internal audit progress report for April 2024. It summarizes internal audit activities since the last meeting, noting the completion of several audits, including a follow-up audit and fieldwork for a procurement audit. The procurement audit's report will be presented to the June Audit and Risk Committee, along with the annual report, due to a request from management for extra time to review. The report also includes the 2024/25 internal audit plan for approval and outlines the reports planned for presentation at the June 2024 Audit and Risk Committee meeting.

This document contains the Cairngorms National Park Authority's (CNPA) most recent strategic risk register. The Audit and Risk Committee needs to review the register's adequacy and identify any gaps or needed changes. The register shows that recent funding is good, but future funding is uncertain and there are concerns about reputational risk from local news articles and the cost of IT services. Suggested updates are noted on the register itself. The committee's feedback on these updates and the register's current status is requested.

This document contains a risk assessment for the Cairngorms National Park Authority. It lists eleven risks, categorized by theme (resources, strategic delivery, nature and conservation, and reputation), and assesses their current impact and likelihood. The risks include financial constraints, lack of expertise in managing construction projects, insufficient powers to address wildlife crime, recruitment difficulties, challenges in adapting to major programmes, inadequate IT systems, insufficient business continuity plans, and potential reputational damage. For each risk, the document outlines existing mitigation strategies and planned actions with associated deadlines and assigned risk owners. The risk scores are regularly monitored and updated.

This document contains a review of the LEADER grant scheme, a European Union program supporting community-led local development. The Cairngorms National Park Authority managed this scheme, highlighting both its positive aspects (clear processes, strong community engagement, and few application refusals) and challenges (complex regulations, inconsistent guidance, and funding delays). The report aims to inform future grant programs and incorporates lessons learned into the design of new initiatives, such as the Community Led Climate Grant Programme. The review covers the funding structure, the roles of various organizations, and identifies areas needing improvement for better clarity and efficiency.