Corporate Board minutes: December 2023

Attendees and apologies

Members

• John Paul Marks (Chair), Permanent Secretary
• Lesley Fraser, DG Corporate
• Joe Griffin, DG Strategy and External Affairs
• Gregor Irwin, DG Economy
• Caroline Lamb, DG Health and Social Care
• Louise MacDonald, DG Communities
• David Martin, Non-Executive Director 
• Donald McGillivray, Director, Safer Communities (for DG Education and Justice)
• Belinda Oldfield, Non-Executive Director 
• Jim Robertson, Non-Executive Director and Chair, SGAAC
• David Signorini, Interim Director Marine, (for DG Net Zero)
• Alyson Stafford, DG Scottish Exchequer

In attendance

• Morag Angus, Deputy Director Property and Construction (item 6)
• Jennie Barugh, Director of Fiscal Sustainability and Exchequer Development
• Graeme Cook, Head of SG Procurement Services (item 6)
• Jonathon Curry, Deputy Director, People Strategy (item 5)
• Calum Elliot, Deputy Director, National Collaborative Procurement and Innovation (item 6)
• Nick Ford, Director of Procurement and Property (item 6)
• Geoff Huggins, Director Digital (item 6)
• Claire Hughes, Head of Corporate Reporting (item 3)
• Claire Marr, Deputy Director, Capability and Talent COE (item 5)
•  Iain MacNab, Head of Risk Management Policy (item 4)
• Mary McAllan, Director of Covid Recovery and Public Service Reform (item 6)
• Jackie McAllister, Chief Financial Officer (CFO)
• Lisa McGuinness, Director, Strategy, Performance, Delivery and Resilience (item 4)
• Sophie Reid, Governance Support and Improvement Adviser (Observer)
• Nicola Richards, Director, People
• Kirsty Walker, Interim Board Secretary and Deputy Director, Executive Team Strategic Governance Office (ETSGO)
• Robyn Whitelaw-Grant, Strategic Lead Risk, Control and Assurance (item 4)

Secretariat

• James Gibbon, ETSGO
• Owen McMahon, ETSGO
• Lesley Patrick, ETSGO

Apologies

• Roy Brannen, DG Net Zero
• Andrew Bruce, Director of Communications and Ministerial Support
• Ruaraidh MacNiven, Solicitor to the Scottish Government and Director of SGLD
• Neil Rennick, DG Education and Justice
• Jayne Scott, Non-Executive Director and Deputy Chair, SGAAC

Items and actions

Welcome, apologies, declarations of interest, and minutes

The Chair welcomed members and attendees to the fourth Corporate Board (CB) meeting of 2023. The Chair specifically welcomed Sophie Reid, former Chair of the Scottish Youth Parliament (SYP), who was undertaking a work programme with the Scottish Government (SG). The minute of the 26 September 2023 CB meeting was approved as an accurate record, and no declarations of interest offered. Progress of actions on the tracker was noted. Regarding Action 197, it was recommended that the Resourcing Assurance Committee (RAC) be utilised for discussion of regularisation of long-term Temporary Responsibility Supplement (TRS). 

SGAAC Chair update 

Chair of SGAAC noted that SGAAC had met twice since September’s CB, including an extraordinary meeting focused on the SG Annual Accounts. Chair of SGAAC recommended Certificates of Assurance (COA) be shorter and more focused; noted the importance of a compliance culture with reference to mandatory training completion rates; and indicated NXDs would like more time to consider the Accounts in future years. Key areas of focus for SGAAC were highlighted: medium term fiscal sustainability; reporting transparency; streamlining the DG Assurance process; Corporate Transformation, and Climate Change targets.

In discussion, the board noted:

• ongoing consideration was required on continued development of a compliance culture. Defining, embedding and monitoring this should be revisited following implementation of the Enterprise, Resource, and Planning (ERP) application
• delivery of Climate Change Targets and Corporate Transformation were being managed through the Corporate Risk Register (CRR)
• refresh of Scottish Public Finance Manual (SPFM) and introduction of ERP were anticipated to strengthen reporting transparency
• streamlined DG Assurance process has been piloted, with evaluation and refined proposal on approach due to be delivered by end of March 2024

Organisational health – finance

CFO and DG Scottish Exchequer provided an update on the in-year financial position and the 2024-2025 Budget position, respectively. The specific challenge of Quarter 4 was highlighted, citing the importance of adherence to the spending control process. Improved forecasting accuracy had supported greater understanding of the organisation’s financial position. The board was updated on the context and next steps for finalising the 2024-2025 Budget.

The board put on record its thanks for the work of CFO, DG Scottish Exchequer and their teams in supporting the delivery of the financial reporting and Budget processes.

In discussion the board noted: 

• the importance of realistic delivery aspirations and impacts within the finalised budget allocations
• existing concerns around fiscal sustainability of DG Health and Social Care increased following the UK Government (UKG) Autumn Statement, with further, detailed engagement with NHS boards planned following finalisation of the 2024-2025 Budget
• continued need to ensure all spend is efficient and delivered within SPFM principles

Organisational health - risk

CFO, Head of Risk Management Policy, and Director, Strategy, Performance, Delivery and Resilience provided an update on the Corporate Risk and Strategic Risk Landscapes. Key updates included the intention to share the CRR with Ministers on a regular rhythm; and planned work on identifying trends, risks and opportunities over a 10 to 20 year period. The Executive Team (ET) had agreed the establishment of an SG steering group to support mitigation of the Civil Contingencies risk, with Senior Responsible Officers identified. All risk appetite statements were expected to be completed by the end of the financial year. 
In discussion, the board noted:

• importance of realistic target dates in the CRR. A review of all risks on the CRR – including target dates – was planned for January to March 2024
• importance of inter-governmental relations, given potential for UKG decisions to impact SG risk profile
• CRR should continue to be used as a dynamic document, with escalation from and de-escalation to DG Risk Registers as required
• target date for the Lochaber Smelter Guarantee risk remained reflective of progress with delivery of a key milestone anticipated in January 2024
• April 2024 target date for COVID Inquiries Risk remained appropriate given schedules of the UK and Scottish Inquiries. The board put on record its thanks to DG Corporate for her Leadership throughout the Inquiry process

Organisational health - people

Deputy Director, People Strategy and Deputy Director, Capability and Talent COE provided an update on early outcomes following development of the People Directorate operating model. Delivery of SG’s year-end workforce target was on track with ongoing controls to ensure delivery. TRS levels had reduced, however absence management remained a concern. Early insights from the People Survey results were shared, with detailed discussion to follow at future ET meetings.

In discussion, the board noted:

• importance of colleagues having time to undertake learning and development, and role of senior leaders in developing an enabling environment to support this
• positive impact of ERP implementation will be the availability of live data capture and monitoring
• potential efficiencies offered through digital solutions and opportunity to embed a digital mindset more widely across the organisation
• need to remain adaptive in team size and composition, in response to evolving business requirements and project delivery
• importance of efficient ways of working to complement workforce changes, including ensuring board papers are succinct and follow page limits

Public service reform 

Director of COVID Recovery and Public Service Reform (PSR) provided an update on PSR, with reference to four themes of the programme: convening a consensus on reform, aligning behaviours, making savings and enabling others. The programme was intended to support short-term affordability and longer-term sustainability, with SG to model the changes to partners.

Director Digital and Director of Procurement and Property provided an update on the impact of the efficiency levers within PSR. The Single Scottish Estate (SSE) Programme, Grant Management and Collaborative Procurement were noted as focused on delivery and cashable savings, as well as cost avoidance. The Digital Public Services lever included ensuring the optimal digital projects were progressed; that delivery was efficient and at the best value; that expected outcomes were delivered; and that SG’s existing technology and services were reviewed.

In discussion the board noted: 

• potential benefits of collaborative use of resource and capabilities, and connection to data sharing and transparency. There was an opportunity for SG to model that way of working
• need for SG’s future operating model to facilitate collaborative working and for all shared services to be captured and considered, including for example Directorate for Internal Audit and Assurance
• opportunity for SG to consider engaging with public bodies in different or larger groups than had previously been the case, if it supported more efficient working or more effective collaboration
• need for Grant Management lever to account for ongoing work regarding third sector grants
• the ongoing value from lessons learned when sharing specific examples of what PSR has successfully delivered