Department for the Economy Board minutes 2026 - 27 May 2026

2026-27 Budget Position

• DoF issued contingency planning envelopes in early May. RDEL budget allocations are based on Departmental baseline plus adjustments for Executive Commitments of 95%. To live within this envelope, after DfE statutory and contractual commitments are met requires a 6% reduction in all baselines. Assessments of operational and equality impacts have been sought.
• The Capital position is more complicated because DoF can’t take account of borrowing. Departments are however asked to base allocations on what they would reasonably anticipate getting. The position will be tight given existing obligations with university research funding being especially impacted.
• There has been little debate in the public arena.
• Permanent Secretary’s Group have been working out implications. Tests are expected soon regarding what decisions can be made.

RHI Closure Bill

• Passed final stage.

Good Jobs Bill

• Not through the Executive yet. Minister has asked to discuss it. Supportive comments so far from parties. Union rights of access are an issue.

Energy Strategy

• This is being discussed at the Public Accounts Committee tomorrow.

Johanna Park presented.

Position as at 31 March 2026

• It had previously been mentioned that a CfER issue in Invest NI can’t be retained and there has been a small underspend in earmarked RDEL.
• There has also been a £1.2m underspend in general allocation partly due to slippage in programmes and vacancies.
• There has been less than £1m capital underspend partly due to slippage with student loans, company costs and Magee expansion.
• The departmental target for outturn against Final Budget is at least 99% and not exceeding 100%. The target for other expenditure categories is not to exceed 100%. These targets have been met.

Sharon Hetherington presented.

2025-26 Accounts Update

• Preparation of the Group Accounts remains underway and is going well.
• The only problematic component is regarding NRC and we are working well with them.
• Audit have suggested that management could impose limitations of scope on the NRC component pack. 
• The statutory certification deadline may not be met due to the time needed to carry out the NRC audits sequentially.
• There has been positive feedback regarding all the ALB packs.

• Internal Audit carried out a review of DfE Board effectiveness and provided a final report including recommendations. This external review is required every 3 years.
• The Board discussed the recommendations. AP: an action plan to be drawn up with various actions to be undertaken in advance of bringing it back to the Board.

Contract Register

• There are currently 105 live contracts. We are working with teams to retain focus. Extensions of contracts are satisfactory but there is work to be done regarding modifications. We don’t want to need to go to DoF for retrospective approvals.
• Consolidation of specific future contracts was discussed

Review of Higher Education Funding

• Minister approved the initiation of a Review of Higher Education Funding. This included an independent financial needs assessment to look at financial sustainability of educational institutions in the short term.
• Research was undertaken by Higher Futures who engaged with the Universities and resulted in draft reports. After a public interest test only a summary report was published. The Economy Committee were briefed in a closed session.
• Short term financial sustainability risks are low but financial pressures are mounting. We need to look at longer term solutions for the sector.
• Minister announced £300k - £400k increase in funding to each university college per annum.
• Multi-campus cost is an issue and previously estimated additional £18m per annum cost for Ulster University is considered too high. An independent analysis has been commissioned.
• Next steps include a drafted Executive paper and attendance at the Committee in June to discuss redundancies in Ulster University. Skills & Education Group will look at what can be done in the short to medium term.

Assurance Statement Summary Report

• A lot of work is involved in producing assurance statements twice a year. How much value is there to this? Is there a better way of doing this? What is the minimum requirement? Maybe a lighter touch mid-year is best. Corporate Governance are already taking this forward.

Internal Audit Strategy 2026-29

• This paper was presented to ARAC and has been noted.

City & Growth Deals

• Overall positive progress continues to be made.
• NIAO have submitted a draft report to DoF on the C&GD programme.
• Key achievements include construction of the Advanced Manufacturing Innovation Centre. The Causeway Coast & Glens Growth Deal was signed on 29 April.
• There is a continuing need from CPD re costs.
• Ulster University finances underpin the School of Medicine project.
• Outline business cases from the Mid North West have slipped from June to September.

End of Year Health & Safety Report

• Nothing significant to report. Very minor accidents. 

Delivery Committee Minutes & Year End Report

• Paper noted.

Risk Register Quarter Four Update

• There are 14 corporate risks. 5 are rated ‘extreme’, 7 ‘high’ and 2 ‘moderate’. The residual risk rating for Magee Expansion has been escalated.
• It was mentioned that the articulation of some risks is not reflective of the risk rating. One risk has at least partly happened so it is an issue rather than a risk.
• Corporate Governance have been meeting with Groups to look at the Risk Register and will also pick this up with the two new Grade 3s on their appointment.