Consumer Scotland
Audit and Risk Committee Meeting
16 June 2026
Minute of Meeting
Present:
Marion McDonald – Chair
Angela Morgan – Member
James Walker – Member
Jane Clark Hutchison – Member
In attendance:
David Wilson – Chair, Consumer Scotland Board
Sam Ghibaldan – Chief Executive
Sue Bomphray – Director of Operations and Partnerships
Douglas White – Director of Policy and Advocacy
David Eiser – Director of Analysis, Research and Investigations
Ian Forbes – Finance and Accountancy Adviser
Sally Sandground – Finance, Governance and Corporate Services Manager
Louise Carmichael – Senior Internal Audit Manager, Scottish Government
Paul Marshall – Internal Audit Manager, Scottish Government
Phil Mason – Audit Manager, Deloitte LLP
Ifthakhar Eresh – Finance, Governance and Corporate Services Officer (minutes)
Apologies:
None
Agenda Item 3 – Director of Operations and Partnerships update
1. The Director of Operations and Partnerships provided an update on key financial and operational matters. The Scottish Water levy budget has been approved and drawn down in full, while DBT funding remains outstanding, with approval expected shortly. In the interim, programme-related expenditure is being managed carefully, with non-essential spend deferred.
2. There were no declarations of interest noted.
Agenda Item 2.1 – Minutes of Previous Meeting
3. The minutes of the March meeting were reviewed. No amendments were raised, and the Committee confirmed they were content for them to be approved.
Agenda Item 2.2 – Action Tracker
4. The Committee reviewed progress against outstanding actions. Oracle-related actions remain open, reflecting ongoing system development and uncertainty regarding longer term cost profiles. It was noted that while current costs are lower due to transitional arrangements, future charges may increase significantly and will require continued oversight.
5. The Chair introduced discussion on ARC governance arrangements in light of recent changes in membership and leadership. It was agreed that proposals covering Terms of Reference, structure and meeting timing would be developed for September. Members highlighted the importance of aligning ARC and Board timetables to allow efficient decision making where approvals are required on the same day.
Actions:
- Develop proposals on ARC structure, Terms of Reference and operating arrangements for September meeting.
- Consider alignment of ARC and Board meeting sequencing to support timely approvals.
Agenda Item 3 – Director of Operations and Partnerships update
6. The Director of Operations and Partnerships provided an update on key financial and operational matters. The Scottish Water levy budget has been approved and drawn down in full, while DBT funding remains outstanding, with approval expected shortly. In the interim, programme-related expenditure is being managed carefully, with non-essential spend deferred.
7. The Committee noted improvements to risk and control frameworks, including updates to the strategic risk register and the development of a third party risk framework. It was agreed that, given organisational scale, third party risks are appropriately captured within the strategic risk register, supported by operational tools.
8. Updates were also provided on banking arrangements following Oracle implementation, which are improving transparency of cash flows. Controls, including segregation of duties and oversight arrangements, were reviewed and considered appropriate at this stage.
9. The annual review of the whistleblowing policy was noted, with only minor updates required and no cases reported. Ongoing work to ensure staff awareness and confidence in reporting routes was highlighted as an area for continued attention.
Agenda Item 4 – Management accounts
10. The Committee considered the April management accounts. Oracle is supporting improved access to financial data, although further reporting functionality is expected as system development progresses.
11. Members noted the current funding position, including the delay in DBT approval and the upfront receipt of Scottish Water funding. Grant expenditure is expected to increase later in the year, reflecting the timing of claims in arrears.
12. Discussion covered the management of grant payments and potential cashflow implications for recipients. Assurance was provided that arrangements are agreed in advance, follow standard grant conditions, and are supported by appropriate controls and audit trails.
13. Members agreed that the position should continue to be monitored, particularly where delays in funding approvals may impact programme delivery timelines.
14. Accommodation costs and recent reductions were noted, alongside ongoing monitoring of financial performance.
Agenda Item 5 – Strategic Risk Register
15. A refreshed strategic risk register was presented, reflecting organisational maturity, changes in the external environment and emerging strategic priorities.
16. Members welcomed the revised approach, noting improved clarity, focus and alignment with the organisation’s key risks. The integration of third‑party risk within the overall framework was considered proportionate.
17. The Committee agreed that the revised register provides a stronger basis for strategic oversight and should remain a regular item for review.
Agenda Item 6 – Annual Report and Accounts
18. The Committee reviewed a near‑final draft of the annual report and accounts ahead of submission for audit. This represents the final opportunity for substantive comment before formal audit fieldwork begins.
19. Key points highlighted included:
- Improved financial reporting following full implementation of Oracle
- Increased expenditure compared to the previous year, primarily driven by grant activity and staffing costs
- A close alignment between budget and outturn, reflecting improved forecasting
- Ongoing judgement in relation to IFRS 16 lease arrangements
20. Members discussed the importance of clearly explaining key financial drivers within the narrative, including accommodation costs and workforce changes. The need to plan early for future funding pressures, particularly beyond the current year, was also emphasised.
21. Overall, the Committee welcomed the quality of the draft accounts and the progress made in financial reporting.
22. The draft will be submitted to Deloitte on 2nd July and the final version is due to be presented at the next meeting for final recommendation for approval and signing.
Agenda Item 7 – Internal audit annual opinion and plan
23. Internal audit presented its annual opinion for 2025–26, providing reasonable assurance on governance, risk management and control arrangements. This reflects continued organisational development and strengthening systems.
24. The proposed internal audit plan for 2026–27 was noted, including reviews of strategic business planning and stakeholder engagement. Delivery is currently on track.
It was recognised that, while some limitations remain due to organisational size, the overall trajectory is positive and moving towards increased assurance over time.
Agenda Item 8 – External Audit
25. Deloitte provided an update on the external audit timetable. Year‑end fieldwork is scheduled to begin in July, with no new risks identified since the audit plan was presented in March.
26. The Committee discussed the importance of early engagement with relevant stakeholders to ensure efficient delivery of the audit. The Chair also requested an introductory session with the external auditors as part of induction activity.
Actions:
- Schedule wider stakeholder meetings in advance of audit fieldwork.
- Arrange introductory meetings between the Chair and internal and external auditors.
Agenda Item 9 - AOB
27. No additional items were raised.
28. The Chair noted that while the meeting had concluded ahead of schedule, future meetings should aim to make full use of available time to support discussion and challenge where required.
29. The date of the next meeting is Tuesday 22 September 2026 at 10:00 hrs online via Teams.