Corporate report

Audit and Risk Assurance Committee minutes: 14 March 2023

Updated 26 November 2024

Applies to England

Present

Martin Spencer, Chair

Laura Wyld, Board member

Ian Looker, Co-opted member

Also in attendance

Matthew Coffey, Chief Operating Officer (COO)

Louise Grainger, Director, Finance, Planning and Commercial

Chris Jones, Director, Strategy and Engagement (item 10)

Head of Strategy (item 10)

Hassan Rohimun, EY

Tony Smith, Government Internal Audit Agency (GIAA)

Ivan Cheary, GIAA

Sebastian Groth, National Audit Office (NAO)

Board Secretary

Status

Approved at the ARAC meeting 13 June 2023.

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

Apologies were received from Chris Hanvey, Jo Moran, Colin Wilcox and Robert Garnett.

The minutes of the last meeting were approved as a correct record.

The Director, Finance, Planning and Commercial has been appointed an independent member of the Ofqual audit and risk assurance committee. [Redacted].

Laura Wyld has been appointed to the Integration of Primary and Community Care House of Lords Select Committee.

2. Verbal report from His Majesty’s Chief Inspector (HMCI)

HMCI updated ARAC on meetings with the Department for Education (DfE) on various policy priorities and business continuity arrangements to support the organisation through ongoing industrial action.

3. Progress against audit recommendations

The committee reviewed progress made on implementing audit recommendations. At the end of January, 6 management actions had been completed since the last report to ARAC and 15 were reported as on track.

4. Internal audit progress report

All of the annual plan has been delivered apart from one audit: Transition from Cygnum to new applications, which is at draft report quality assurance stage. The GIAA Digital, Data and Technology (DDaT) Senior Audit Manager will present the report at the June ARAC meeting.

The chair thanked GIAA and Ofsted staff for their work to complete the programme.

5. Issued internal audit reports

Four engagements have been completed since the last ARAC meeting. The advisory coverage of Ofsted’s ‘Workforce retention and development’ found that Ofsted’s arrangements largely reflect good practice.

The committee acknowledged that advisory reports are not formal audits with an action plan that the committee tracks but agreed that it would be beneficial for the committee to know if advisory reports have been useful and if suggestions have been taken forward.

Action: GIAA future advisory reports will include a response from management that states what recommendations have been accepted and taken forward.

Substantial assurance was provided in respect of the Insights and Research Governance Oversight audit which found arrangements for oversight of research, evaluation, data and insight projects following establishment of the Insights and Research Directorate was broadly working well.

Moderate assurance was provided in respect of the Commercial Assurance Year 2 audit. Good progress has been made since the Year 1 Advisory review, with good practice including a commercial strategy and implementation plan, a procurement guide, category strategies, a contract pipeline, improved support to the business and good market engagement.

GIAA reviewed 4 recommendations from previous audit reports and concluded that all had been implemented.

6. Draft Internal audit plan 2023-24

GIAA has concluded stakeholder meetings and has agreed the plan with HMCI and the ARAC chair.

The committee observed that the majority of the plan is scheduled for delivery in quarters 3 and 4. GIAA confirmed that the scheduling reflects the optimum timing suggested by directors and teams.

Action: GIAA will explore with Ofsted management, whether it might be possible to bring forward any engagements to re-balance the delivery profile.

The committee had previously agreed not to have an audit on stakeholder engagement. It was noted that a stakeholder mapping session will be undertaken with the Ofsted board, and ARAC agreed that the assessment of this theme should be undertaken by a more ‘specialist’ provider, if necessary.

The committee approved the internal audit plan 2023-24.

7. External audit

Committee members reviewed audit progress to date and noted that work has progressed as planned. EY reported that no issues to raise with the committee from the interim audit.

8. Value for money and insight work

The committee noted the NAO value for money update report.

9. Annual Report and Accounts (ARA) update

The committee was briefed on the work undertaken so far with the ARA.

This is the first ARA that will report on our new strategy. Narrative will be provided on performance against each strategic priority along with strategic metrics data.

A meeting will take place in May for ARAC members to provide feedback on the draft version of the ARA. Committee members will review the draft Annual Report and Accounts 2022-23 at its meeting in June, prior to review and approval by the board and certification by Ofsted’s Accounting Officer.

10. Risk report

The committee noted the changes to the strategic risk register since its last meeting.

ARAC provided feedback on simplifying the presentation of our risk register slightly, in particular making it easier to understand what the risk tolerance and risk appetite column is saying.

Action: Head of Strategy to consider feedback simplifying the presentation of the risk register, in particular the risk appetite column.

11. Finance update

The committee noted the financial update.

12. Budget update

ARAC was briefed on the 2023-24 budget which had been approved by HMCI and Executive Board.

13. AOB

There was no other business.