NIAO Audit Strategic Corporate Framework 2018-2021

1. Pamela McCreedyChief Operating Officer22 November 2018 GovTech

2. NIAO Audit

3. Strategic Corporate Framework 2018-2021 Vision Inspiring confidence in public services through independent scrutiny based on impartial and innovative reporting

4. Strategic Corporate Framework 2018-2021 • Provide assurance, add value and promote excellence in public administration • Support public sector transformation in NI … We will respond rapidly to emerging issues and/or concerns … • Transform our business to meet the emerging challenges of the future … We will embed digital technology in working methods and systems across the NIAO …

5. NIAO Business Transformation

6. IMPACT • Diageo, Pepsi, Sky, Barclays etc... • Issues: • Trust • High value customers • Reputation • Data analytics • Marketing effectiveness

7. Changing environment – implications for the NIAO Digitalisation will change working practices and provide opportunities for more effective auditing

9. Reasons for our GovTech challenge • We have access to large volumes of financial data • We don’t currently use this data to its full potential • Skills gap – we don’t know what we don’t know • Private sector firms have already invested £millions • We want to transform our business to meet the emerging challenges of the future

10. Partnering with…

11. There are two parts to the challenge… • Financial audit analytics 2. Value for money analytics

12. Financial Auditing • Opinion on financial statements • Our audit work covers 108 public organisations which spend over £25.7 billion of public money annually

13. The Problem – Financial Audit • Currently the financial audit opinion is largely based on: • sample testing • manual audit testing • Any potential solution must comply with auditing standards

14. Financial Audit Analytics • Analysing whole populations • Identifying high risk transactions and anomalies • Explore the potential for: • Machine learning • Visualisations • Automation • Comparisons

15. The Data • Data is provided by a range of different Financial Management Systems

16. Shared services

17. Value for Money Auditing • Thematic reports on wide range of topics including health, education, justice • We publish approximately 11 reports per year

18. The Problem – Value for Money Audit • There is no standard approach - each report is bespoke • Reports draw from management information and open data

19. Value for Money Analytics • Analysing management information and publically available data to inform a wide variety of thematic reports

20. What would good look like?

21. Financial Audit Analytics • New software or new product using existing software • Automation – plug in data – reconcile to accounts – produce lead schedules – test whole populations – identify items for further manual testing – produce a report to client’s management using visualisations and infographics • Use AI and machine learning

22. Financial Audit Analytics - Outcomes • A more efficient audit approach • More time for value added work • Better insights into client’s data • Improved impacts

23. Value for Money Analytics • Visualisations for use in reports/on the web and twitter • Better statistical analysis • More defensible findings and sample selection • Interactive data • Benchmarking • Key messages are more easily identified

24. Value for Money Analytics - Outcomes • Enhanced reporting • Better quality reports • Improved readability • Increased target audience • Added value through the formulation of more robust recommendations

25. Co-development • Phase 1 will focus on Northern Ireland data • Keen for suppliers to spend time onsite in Belfast

26. Solutions Need to… • Comply with auditing standards • Comply with GDPR legislation • Be user friendly • Be cost effective

27. For more information • https://www.niauditoffice.gov.uk/govtech-catalyst • email:govtech@niauditoffice.gov.uk

32. About Audit ScotlandBrian Howarth and Morag Campsie

33. Who do we audit? £40 bn

34. Data enabled audit • What we currently do • All our work involves some degree of data analytics • Developing own inhouse tools to help • Use Tableau for visualisations • Challenges and ambitions • Different financial systems • Validation and cleansing to get consistent data • Efficient analysis and more informed insight • Innovation- connecting and presenting data

35. Where to find us www.audit-scotland.gov.uk

36. Darragh Kelly & Nick Manton Government Digital Service@gdsteam #govtechcatalyst

37. How GovTech Catalyst works

38. GovTech InnovateUK InnovateUK GovTech Public sector Public sector Public sector Call for public sector challenges Challenges are turned into competitions Responses are evaluated Submitted challenges are reviewed Companies, not for profits and social enterprises respond Private sector GovTech

39. GovTech InnovateUK Public sector Feasibility outputs are evaluated Public sector Entire public sector can now buy solutions 5 companies are funded to show feasibility 2 companies are funded for development Private sector Private sector Public sector Public sector

41. Helping public sector to adopt new ideas

42. Helping public sector to adopt new ideas Provide a route to market for new ideas

43. Helping public sector to adopt new ideas Provide a route to market for new ideas Supporting the development of innovative companies

44. Features of SBRI

45. Development contracts 100% funded R&D (procurement contract) UK implementation of EU pre-commercial procurement Deliverable based for R&D Services

46. Sub contracting Contracts are with the prime supplier who may choose to sub contract but remains accountable

47. Intellectual Property Remains with supplier Companies are encouraged to exploit IP with other public sector bodies

48. Eligibility Open to all organisations - no limit on the size or type of company Open to companies not currently engaged in the sector Research organisations may also apply, however all organisations must demonstrate a route to market

49. How to apply