Introduction
1. The Partnership Agreement
1.1 This Document sets out the way the Commissioner for Survivors of Institutional Childhood Abuse (COSICA) and the Executive Office (TEO) will work together to ensure that effective corporate governance arrangements are in place and that the statutory remit to ensure COSICA’s independence is fulfilled.
1.2 The Partnership Agreement (the Agreement) is based on a mutual understanding of strategic aims and objectives; clear accountability; and a recognition of the distinct roles of each party. Underpinning the arrangements are the principles set out in the NI Code of Good Practice ‘Partnerships between Departments and Arm’s-Length Bodies’ which should be read in conjunction with this document. The principles which are laid out the Code are:
Leadership: Partnerships work well when Departments and Arm’s Length Bodies demonstrate good leadership to achieve a shared vision and effective delivery of public services. Strong leadership will provide inspiration, instil confidence, and trust and empower their respective teams to deliver good outcomes for citizens.
Purpose: Partnerships work well when the purpose, objectives and roles of Arm’s Length Bodies and the sponsor department are clear, mutually understood and reviewed on a regular basis. There needs to be absolute clarity about lines of accountability and responsibility between departments and Arm’s Length Bodies. In exercising statutory functions Arm’s Length Bodies need to have clarity about how their purpose and objectives align with those of departments.
Assurance: Partnerships work well when departments adopt a proportionate approach to assurance, based on Arm’s Length Bodies’ purpose and a mutual understanding of risk. Arm’s Length Bodies should have robust governance arrangements in place and in turn departments should give Arm’s Length Bodies the autonomy to deliver effectively. Management information should be what is needed to enable departments and Arm’s Length Bodies to provide assurance and assess performance.
Value: Partnerships work well when departments and Arm’s Length Bodies share knowledge, skills, and experience in order to enhance their impact and delivery. Arm’s Length Bodies are able to contribute to policy making and departmental priorities. There is a focus on innovation, and on how departments and Arm’s Length Bodies work together to deliver the most effective policies and services for its customers.
Engagement: Partnerships work well when relationships between departments and Arm’s Length Bodies are open, honest, constructive and based on trust. There is mutual understanding about each other’s objectives and clear expectations about the terms of engagement.
A full copy of the NI Code can be found at Annex 6.
1.3 COSICA and TEO are committed to:
• Maintaining open and honest communication and dialogue;
• Keeping each other informed of any issues and concerns, and of emerging areas of risk; and
• Acting at all times in the public interest and in line with the values of integrity, honesty, objectivity, and impartiality.
1.4 The effectiveness of this Agreement and the associated Engagement Plan will be reviewed each year by COSICA and TEO in order to assess whether it is operating as intended and to identify any emerging issues or opportunities for enhancement. This can be carried out as part of existing governance arrangements. The document will be reviewed formally at least once every three years to ensure it remains fit for purpose and up to date in terms of current governance frameworks. The formal review will be proportionate to COSICA’s size and overall responsibilities and will be published on COSICA’s and TEO’s websites as soon as practicable following completion.
1.5 A copy of this agreement has been placed in the Assembly Library and is available on COSICA and TEO websites
COSICA Establishment and Purpose
2. Background and Statutory Purpose
2.1 COSICA is a non-departmental public body (NDPB) established on 5 November 2019 by the Historical Institutional Abuse (Northern Ireland) Act 2019 (the Act). The first commissioner was appointed in October 2020 and took up post in December 2020. Its purpose is to promote the interests of any person who suffered abuse while a child and while resident in an institution at some time between 1922 and 1995 (both inclusive). For national accounts purposes COSICA is consolidated within TEO’s group accounts.
3. COSICA Status
3.1 COSICA is defined as a Corporation Sole under Schedule 2(1) of the Act. A Corporation Sole is a legal entity consisting of a single (“sole”) incorporated office, occupied by a single (“sole”) person. This allows corporations to pass without interval from one office holder to the next successor in-office, giving the position legal continuity with subsequent office holders having identical powers to their predecessors.
4. Statutory Duties, Functions and Powers
4.1 COSICA’s statutory functions and duties relate to victims and survivors of institutional childhood abuse in residential settings as set out in Part 2, Sections 23 to 28 of the Act. Under the Act, COSICA must:
• Appoint an Advisory Panel of victims and survivors;
• Advise on matters concerning victims and survivors’ interests;
• Take reasonable steps to ensure victims and survivors are made aware of the functions, location, and ways they may communicate with, the Commissioner:
• Encourage the provision, and co-ordination of service provision in Northern Ireland;
• Must provide, or secure the provision of, advice and information and availability of services to victims and survivors;
• Consult the Commissioner for Children and Young People in Northern Ireland when necessary;
• monitoring specialist facilities for victims and survivors; and
• monitoring and publicising the functions of the Historical Institutional Abuse (HIA) Redress Board
The Act underpins COSICA’s functions with powers to:
• Undertake or commission research into matters concerning the interests of victims and survivors;
• Compile information concerning the interests of victims and survivors;
• Provide advice or information on matters concerning the interests of victims and survivors;
• Publish anything concerning the interests of victims and survivors; and
• Make representations or recommendations to any person about matters concerning the interests of victims and survivors.
4.2 It is for COSICA to determine what activities to undertake in carrying out their primary function as set out in the Act thus COSICA has the freedom to determine their own priorities, and activities within their statutory remit. They are also free to work directly with any government department or organisation in delivery of their primary functions.
4.3 The First Minister and deputy First Minister, as TEO’s Ministers, are ultimately answerable to the Assembly for the overall performance and delivery of both TEO and COSICA.
4.4 The Executive’s outcome-based approach to delivery recognises the importance of arm’s length bodies and departments working collaboratively and together in a joined-up approach to improve overall outcomes and results.
4.5 To that end there is generally strategic alignment between the aims, objectives and expected outcomes and results of both TEO and COSICA.
4.6 The strategic aim of COSICA is: To promote the interests of any person who suffered abuse while a child and while resident in an institution at some time between 1922 and 1995 (both inclusive) subject to provisions under the Act.
This supports TEO’s Departmental Vision and Aims specifically:
• To build a peaceful and prosperous society with respect for the rule of law where everyone can enjoy a better quality of life now and in years to come. Underpinning this vision, the overall aim of TEO is to contribute to and oversee the co-ordination of Executive policies and programmes to deliver a peaceful, fair, equal, and prosperous society;
Governance Arrangements
5 Organisational Status
5.1 COSICA is a legal entity in its own right, employing its own staff and operating at arm’s-length from the Department. As a legal entity it must comply with all associated legislation including legislation relating to its employer status.
5.2 COSICA has a legislative responsibility to appoint an Advisory Panel to provide a forum for consultation and discussion with victims and survivors. At 31 March 2024, COSICA has carried out an examination of what has been achieved and implemented in other countries and based on this COSICA is currently in the process of taking forward a consultation with victims and survivors to inform the work of the Advisory Panel, as well as planning for recruitment to the Panel. TEO and COSICA will engage on the implementation of this statutory requirement, including through Accountability and Liaison meetings.
6 Governance Framework
6.1 The Commissioner is designated Accounting Officer for COSICA by the departmental Accounting Officer with responsibilities laid out in Managing Public Money NI and his/her appointment letter. As Accounting Officer, the Commissioner is personally accountable for safeguarding the public funds for which they have charge; for ensuring propriety, regularity, value for money in the handling of those public funds; and for the day-to-day operations and management required to deliver their legislative obligations.
6.2 The Commissioner has an established Corporate Governance Framework which includes governance structures, risk management and internal control arrangements. The Department must be satisfied with these arrangements.
6.3 An account of COSICA’s governance arrangements is included in the COSICA annual Governance Statement together with the COSICA Accounting Officer’s assessment of compliance with the extant Corporate Governance Code of Good Practice (NI). Any departure from the Corporate Governance Code must be explained in the Governance Statement. The extant Corporate Governance Code of Good Practice (NI) is available on the DoF website.
6.4 COSICA is required to follow the principles, rules, guidance, and advice in Managing Public Money Northern Ireland. A list of other applicable guidance and instructions which COSICA is required to follow is set out in Annex 5. Good governance should also include positive stakeholder engagement, the building of positive relationships and a listening and learning culture.
7 Audit and Risk Assurance Committee
7.1 While Corporation Soles do not have Boards, they will usually have Audit and Risk Assurance Committees to support the Accounting Officer with their responsibilities for risk management, internal control and the annual report and accounts.
7.2 The COSICA Audit and Risk Assurance Committee (ARAC) was established in March 2022 with the appointment of an independent Chair and one independent member. The third and final member was appointed in August 2023. Appointments to ARAC, although not regulated public appointments, followed the principles of CPANI guidance and are for a term of up to 3 years. Vacancies were advertised externally through media outlets and NICS public appointments.
7.3 The terms of reference for the ARAC follows the DoF ARAC Handbook, approved by both internal and external auditors.
7.4 Notwithstanding the fact that Corporation Soles do not have Boards, where Audit and Risk Assurance Committees are established, they should operate in line with the Audit and Risk Assurance Committee Handbook (NI) (“the Handbook”). COSICA’s Audit and Risk Assurance Committee, was established in line with the Handbook. External recruitment and appointment ensure independence is retained by following Col/Dol guidance.
7.5 In the event of significant non-compliance with the Handbook’s five good practice principles (or other non-compliance) discussion will be required with the Department and a full explanation provided in the annual Governance Statement.
7.6 The extant Audit and Risk Assurance Committee Handbook (NI) is available on the DoF website.
7.7 The Audit and Risk Assurance Committee supports the Commissioner on governance issues. In line with the Handbook, the Committee will focus on:
• Assurance arrangements over governance; financial reporting; annual reports and accounts, including the Governance Statement; and
• Ensuring there is an adequate and effective risk management and assurance framework in place.
7.8 Examples of what the Committee will focus on include
Internal Control and Risk Management:
• Review of the establishment and maintenance of an effective system of internal control and risk management. In particular, the Committee will review the adequacy of:
- All risk and control-related disclosure statements, together with any accompanying Internal Audit statement.
- The structures, processes, and responsibilities for identifying and managing key risks facing the organisation;
- The policies for ensuring that there is compliance with relevant regulatory, legal and code of conduct requirements;
- The operational effectiveness of policies and procedures; and o The policies and procedures related to fraud prevention.
Internal Audit:
• To review the internal audit strategy and work programme, consider the major findings of internal audit investigations (and management’s response), and ensure co-operation between the Internal and External Auditors; and
• To ensure that the Internal Audit function is adequately resourced and has appropriate standing within the organisation.
External Audit:
• Discuss with the External Auditor, before the audit commences, the nature and scope of the audit, and ensure co-ordination as appropriate; and
• Review External Audit reports, including value for money reports and annual audit letters, together with the management response.
Financial Reporting:
• Review the annual financial statements , focusing particularly on:
- Changes in, and compliance with, accounting policies and practices;
- Major areas where judgement is required; and
– Significant adjustments resulting from the audit.
7.9 Arrangements with the Executive Office may include:
• Attendance by departmental representatives in an observer capacity at Audit and Risk Assurance Committee meetings;
• Access to Audit and Risk Assurance Committee papers and minutes;
• Input from COSICA’s Audit and Risk Assurance Committee to the departmental Audit and Risk Assurance Committee.
Principal Officer for Ombudsman Cases
7.10 The Commissioner is the Principal Officer for handling cases involving the NI Public Sector Ombudsman. He/she shall advise the departmental Accounting Officer of any complaints about COSICA accepted by the Ombudsman for investigation, and about the proposed response to any subsequent recommendations from the Ombudsman.
Role of the Department
8 Partnership Working with COSICA
8.1 Arrangements between TEO and COSICA are open, honest, constructive and based on trust. There is mutual understanding of the Commissioner’s remit and a shared understanding of risks.
8.2 There is clarity on the terms and purpose of engagement between COSICA and the Department and opportunities for exchange of skills and experience are considered along with opportunities for shared services.
8.3 The Department of Finance (DoF) has established, on behalf of the Assembly, a delegated authority framework which sets out the circumstances where prior DoF approval is required before expenditure can be incurred or commitments entered into. The Accounting Officer of TEO has established an internal framework of delegated authority for the Department and its ALBs TEO Expenditure Approval Guidance (CG 01/22) which applies to COSICA. Other specific approval requirements established in respect of COSICA are set out at Annex 3.
8.4 Once COSICA’s budget has been approved by TEO [and subject to any restrictions imposed by statute] COSICA shall have authority to incur expenditure approved in the budget without further reference to the Department. Inclusion of any planned and approved expenditure in the budget shall not however remove the need to seek formal departmental approval where proposed expenditure is outside the delegated limits (as laid out in Annex 3) or is for new schemes not previously agreed. Nor does it negate the need to follow due processes laid out in guidance contained in Managing Public Money NI and guidance on Expenditure Appraisal and Evaluation.
9 Lead Official
9.1 TEO has appointed a lead senior official (usually Grade 5 level) to manage the relationship with COSICA. Engagement between the Department and COSICA will be co-ordinated, collaborative, and consistent. This will be communicated to staff in both the Department and COSICA in order to promote mutual understanding and support. The lead senior official will normally be supported by other team members, and key contacts within departments such as Finance.
9.2 The lead senior official is normally the policy lead for the policy area relating to COSICA business and has a clear understanding of COSICA’s remit and the relevant audiences/stakeholders involved.
9.3 The lead senior official will ensure that where there are departmental staff changes, time is taken to ensure they have a full understanding of COSICA’s remit.
10 Annual Engagement Plan
10.1 The Department and COSICA will agree an engagement plan before the start of each business year. The Annual Engagement Plan (Annex 2) will set out the timing and nature of engagement between COSICA and the Department. The engagement plan will be specific to COSICA and should not stray into operational oversight.
10.2 The Annual Engagement Plan will also reference the agreed management and financial information to be shared over the course of a year. The aim will be to ensure clear understanding of why information is necessary and how it will be used. Where the same, or similar information is required for internal governance, information requirements will be aligned so that a single report can be used for both purposes. In addition, the engagement plan should consider opportunities for actions which could help achieve better impact/outcomes.
11 Commissioner/Ombudsman Appraisals
11.1The Commissioner’s annual appraisal will be completed by the Grade 3 responsible for the Sponsor Branch. In making arrangements for annual appraisals the Department will consider the Commissioner’s statutory remit, the role of any Advisory Board and sources of information/ evidence that demonstrate the Commissioner’s impact and effectiveness
12 Departmental Accounting Officer
12.1 The departmental Accounting Officer is accountable to the NI Assembly for the issue of grant in aid to COSICA. He/she has designated the Commissioner as Accounting Officer for COSICA and respective responsibilities of the departmental Accounting Officer and the COSICA Accounting Officer are set out in Chapter 3 of Managing Public Money Northern Ireland.
12.2 The departmental Accounting Officer may withdraw Accounting Officer designation if he/she concludes that the Commissioner is no longer a fit person to carry out the responsibilities of an Accounting Officer or that it is otherwise in the public interest that the designation be withdrawn. Withdrawal of Accounting Officer status would bring into question the appointment as Commissioner.
12.3 The Commissioner is accountable to the Department/Ministers for his/her stewardship of COSICA. This includes matters of financial propriety, regularity, prudent and economical administration, efficiency, and effectiveness.
12.4 The departmental Accounting Officer must be informed in the event that the Commissioner is contemplating a course of action that would infringe upon the requirement for financial propriety, regularity, prudent and economical administration, efficiency, or effectiveness. In all other regards, the departmental Accounting Officer has no day-to-day involvement with COSICA.
12.5 In line with DoF requirements, the COSICA Accounting Officer will provide an annual declaration of fitness to act as Accounting Officer to the departmental Accounting Officer.
13 Attendance at Public Accounts Committee
13.1 The Commissioner may be summoned to appear before the Public Accounts Committee (as laid out in their Accounting Officer appointment letter) to give evidence on the discharge of their responsibilities as Accounting Officer on issues arising from Comptroller & Auditor General (C&AG) studies or reports following the annual audit of accounts. The Commissioner may also, on occasion, be called to give evidence to the Public Accounts Committee on such relevant issues arising within the C&AG’s studies or reports, in relation to the role and actions taken by them, where appropriate.
13.2 In addition, the TEO Accounting Officer may be summoned to appear before the Public Accounts Committee to give evidence on the discharge of their responsibilities as departmental Accounting Officer with overarching responsibility for COSICA.
In such circumstances, the departmental Accounting Officer may therefore expect to be questioned on their responsibilities to ensure that:
• there is a clear strategic control framework for COSICA;
• sufficient and appropriate management and financial controls are in place to safeguard public funds;
• the designated Accounting Officer is fit to discharge his/ her responsibilities;
• there are suitable internal audit arrangements;
• accounts are prepared in accordance with relevant legislation and any accounting direction; and
• intervention is made, where necessary, in situations where the COSICA Accounting Officer’s advice on transactions in relation to regularity, propriety or value for money are overruled.
Assurance Framework
14 Autonomy and Proportionality
14.1 TEO will ensure that COSICA has the autonomy to deliver its [statutory] remit effectively, recognising its status as a separate [legal] entity with its own governance arrangements.
14.2 A proportionate approach to assurance will be taken based on COSICA’s [statutory] remit, the nature of its business, budget, and associated risks. The approach will include an agreed process through which the COSICA Accounting Officer provides written assurance to the Department that the public funds and organisational assets for which they are personally responsible are safeguarded, have been managed with propriety and regularity, and the use of public funds represents value for money.
14.3 Recognising the governance arrangements in place within the organisation, the COSICA Accounting Officer will arrange for their written assurance to be discussed at the COSICA Audit and Risk Assurance Committee, prior to submission to the Department. The Audit and Risk Assurance Committee should provide written confirmation that it is reflective of their knowledge of the position.
14.4 In addition to the COSICA Accounting Officer’s written assurance, the Department will take assurance from the following key aspects of COSICA’s own governance framework:
• Established advisory boards in place;
• Internal Audit assurance and External Quality Assessment of the Internal Audit function;
• Externally audited Annual Report and Accounts, reviewed/considered by the COSICA Audit and Risk Assurance Committee.
15 Internal Audit Assurance
15.1 COSICA is required to establish and maintain arrangements for an internal audit function that operates in accordance with Public Sector Internal Audit Standards (PSIAS). TEO must be satisfied with the competence and qualifications of the Head of Internal Audit and that the requirements for approving appointments are in accordance with PSIAS.
15.2 In the event that the internal audit function is contracted out COSICA shall ensure that TEO is satisfied that the contract specification for the internal audit service meets the requirements of PSIAS.
15.3 COSICA will provide its internal audit strategy, periodic audit plans and annual audit report, including the Head of Internal Audit’s opinion on risk management, control, and governance to the Department. COSICA will ensure TEO’s internal audit team have complete right of access to all relevant records. This applies whether the internal audit function is provided in-house or is contracted out.
15.4 COSICA will ensure regular, periodic self-assessments of the internal audit function in line with PSIAS and will share these with the Department. COSICA will also liaise with the Department on the External Quality Assessment (EQA) of the internal audit function which (in line with PSIAS) is required to be conducted at least once every five years by a qualified independent assessor.
15.5 COSICA will alert the Department to any less than satisfactory audit reports at the earliest opportunity on an ongoing basis. COSICA will also alert the Department to a less than satisfactory annual opinion from the Head of Internal Audit at the earliest opportunity. COSICA and the Department will then engage closely on actions required to address the less than satisfactory opinion in order to move COSICA to a satisfactory position as soon as possible.
15.6 The Department will take assurance from the fact that COSICA has met the requirements of PSIAS and has a satisfactory annual opinion from the Head of Internal Audit as part of its overall assurance assessment.
16 Externally Audited Annual Report and Accounts
16.1 COSICA is required to prepare an Annual Report and Accounts in line with the Government Financial Reporting Manual (FReM) issued by the Department of Finance (DoF) and the specific Accounts Direction issued by TEO, and in accordance with the deadlines specified. 16.2The C&AG will arrange to audit COSICA’s annual accounts and will issue an independent opinion on the accounts. The C&AG passes the accounts to the Department who shall lay/present/deposit them before the NI Assembly together with COSICA’s annual report.
16.3 The C&AG will also provide a Report to Those Charged with Governance (RTTCWG) to COSICA which will be shared with the Department.
16.4 COSICA will alert the Department to any likely qualification of the accounts at the earliest opportunity. In the event of a qualified audit opinion or significant issues reported in the RTTCWG the Department will engage with COSICA on actions required to address the qualification/significant issues.
16.5 The Department will take assurance from the external audit process and an unqualified position as part of its overall assurance assessment.
16.6 The C&AG may carry out examinations into the economy, efficiency, and effectiveness with which COSICA has used its resources in discharging its functions. The C&AG may also carry out thematic examinations that encompass the functions of COSICA.
16.7 For the purpose of audit and any other examinations, the C&AG has statutory access to documents as provided for under Articles 3 and 4 of the Audit and Accountability (Northern Ireland) Order 2003.
Signatories
COSICA and TEO agree to work in partnership with each other in line with the NI Code of Good Practice ‘Partnerships between Departments and Arm’s-Length Bodies’ and the arrangements set out in this Agreement.