Corporate report

Audit and Risk Assurance Committee minutes: 12 September 2019

Updated 26 November 2024

Applies to England

Present

John Hughes, Chair of the Audit and Risk Assurance Committee

Kathryn August, Board member

James Aston, Co-opted member

Helen Jesson, Co-opted member

Venessa Willms, Board member

Also in attendance

Amanda Spielman, Her Majesty’s Chief Inspector (HMCI), Accounting Officer

Louise Grainger, Director, Finance, Planning and Commercial

Karen Shepperson, Director, People and Operations, Item 5

Emily Williams, Private Secretary to HMCI, Item 10

Simon Helps, National Audit Office

Sebastian Groth, National Audit Office

Carol Hartley Burdett, Internal Audit – Government Internal Audit Agency (GIAA)

Ivan Cheary, Internal Audit – Government Internal Audit Agency (GIAA)

Matthew Terry, Corporate Governance Manager

Apologies

Apologies were received from Matthew Coffey (Chief Operating Officer) and Martin Spencer (Board member).

Status

Approved

1. Chairman’s introduction, declarations of interest, minutes, actions and matters arising

The Chair welcomed members and attendees.

The minutes of the previous meeting were approved without amendment.

The Committee noted progress against actions arising from the NAO’s review of the Committee’s effectiveness.

2. Report from Chair and Members

The Chair informed members that Martin Spencer, newly appointed to the Ofsted Board, has joined the Committee. Due to a pre-existing commitment Martin was unable to attend the meeting.

The Chair and other members of the Board attended DfE’s Arm’s Length Body Non-Executive Conference on 6 September.

3. Progress against audit recommendations, Public Accounts

Committee (PAC) actions

The Committee noted that actions arising from the NAO and PAC’s reports on Ofsted’s inspection of schools had been tracked to completion.

4. Internal audit progress report

The Committee considered and agreed proposed changes to the internal audit plan and discussed the merits of advisory audits, noting that the audit plan is focused on providing assurance to the Committee and the Accounting Officer on Ofsted’s governance, risk management and control processes.

The Committee were content with progress against the plan.

5. Internal audit reports

The EIF readiness audit was circulated to the Committee in correspondence. There were no further comments on the report.

GIAA presented the advisory report on strategic workforce planning. The audit assessed whether current tactical workforce planning provided a sound basis on which to further develop strategic workforce planning and advised where good practice exists elsewhere within Government.

The Committee noted the report and acknowledged that strategic workforce planning remains a developing area across Government. The Director, People and Operations confirmed that the audit had been beneficial, and that all recommendations had been accepted. Consideration will be given to linking this work to the ongoing review of Ofsted’s strategy.

6. Internal audit performance

The Committee endorsed the proposed criteria for assessing GIAA’s performance in providing our internal audit service. Committee members will be consulted as part of the process.

The outcome of the performance assessment will be discussed by the Committee at the close of their meeting in November.

7. External audit update

The Committee noted an update on NAO’s value for money audit activity.

NAO are scoping a report on the financial sustainability of colleges. Ofsted will contribute to the study and be advised on the report’s findings.

8. 2019-20 External Audit approach

Ofsted’s financial statement audit for 2019-20 will be undertaken by a third-party organisation, contracted by the NAO. The Committee noted this was a change in approach from last year, acknowledging that the use of external contractors is standard practice within NAO.

The length of the contract tendered by NAO will be two years. The Committee noted that shorter contracts can often result in time being invested in building short term relationships but noted that NAO and Ofsted will liaise closely over how this will work in practice.

Action: James Aston to check whether BDO have bid for the NAO contract relating to Ofsted’s external audit and confirm any conflicts of interest with the Corporate Governance Manager.

9. Ofsted’s Annual Report and Accounts

The Committee were briefed on how an error within our facility time reporting in the 2018-19 Annual Report and Accounts occurred.

The Committee were content that robust and swift action had been taken to mitigate the error. Planning is underway for 2019-20, when an analytical approach to checking data within the report will be implemented.

10. Strategic Risk Register

The Committee noted amendments made to strategic risk 2, following the Government’s announcement of new measures to improve standards in schools.

The Committee were briefed on Ofsted’s Brexit planning.

Action: The Committee agreed to form a task and finish group to test business continuity plans.

HMCI and the Committee agreed that the Strategic Risk Register facilitates discussion at the right level and is a helpful management tool.

11. Finance update report

The Committee noted the year-to-date financial position and forecast against the annual budget.

12. Forward look

The Committee will receive an update on work undertaken to meet the requirements of the Government counter fraud standard at their next meeting on 6 November.

13. AOB

No further business was raised.

End of meeting

The next Audit and Risk Assurance Committee meeting will take place at 10.30am on Wednesday 6 November 2019.