Audit and Risk Assurance Committee minutes: 14 November 2023
Updated 26 November 2024
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Present
Martin Spencer, Chair
Jo Moran, Board member
Laura Wyld, Board member
Jon Yates, Board member
Ian Looker, Co-opted member
Also in attendance
Amanda Spielman, His Majesty’s Chief Inspector (HMCI), Accounting Officer
Matthew Coffey , Chief Operating Officer
Louise Grainger, Director, Finance, Planning and Commercial
Board Secretary
Mark Leech, Director, Strategy and Engagement (item 3)
Senior Strategy Analyst (item 3)
Hassan Rohimun, EY
Tony Smith, Government Internal Audit Agency (GIAA)
Ivan Cheary, GIAA
Seb Groth, National Audit Office (NAO)
Status
Approved at the Audit and Risk Assurance Committee (ARAC) meeting 16 January 2024.
1. Chair’s introduction, declarations of interest, minutes, actions and matters arising
The minutes of the last meeting were approved as a correct record.
2. Verbal report from HMCI
The committee received an update on all areas of Ofsted’s work since the last meeting, including preparations for the launch of the annual report on 23 November, children’s home inspections and an update on supported accommodation.
3. Strategic risk report
The outcome of 2 strategic risk workshops held in September and October with the executive board and ARAC members was discussed.
The exercise with the executive board and ARAC was a high-level review to establish a hierarchy of risks. With regards to next steps, there will be further discussion with risk owners to agree the residual risk post mitigation.
4. Progress against audit recommendations
The committee reviewed the progress made on implementing audit recommendations since the last report to ARAC. Three actions were on track to be completed by July 2024.
5. Internal audit progress report
GIAA assured the committee that all engagements have progressed since the last ARAC, and the aim remains to complete the plan, ahead of the March ARAC.
Sickness absence within the audit team and a change to the plan has meant renegotiating potential scope areas and has impacted on timelines. Four reports will now be brought to the January ARAC and 5 reports to the March ARAC.
The change to the plan was a request from Ofsted management that the review of insights and research capability be cancelled and replaced with a review of payroll.
The Chief Operating Officer briefed the committee on the first cycle of quality learning reviews that have been undertaken.
Action: The Application, Regulatory and Contact Team (ARC) quality learning review to be shared with the chair of ARAC.
6. External audit - NAO planning report
The provisional external audit plan was presented. In order to comply with the requirements of ISA 220 the final audit plan can only be issued after the NAO has reviewed planning on the EY files. The report will be re issued in due course.
Ana Kinghan, NAO Engagement Director, replaces Colin Wilcox.
The audit fee will be communicated to a subsequent committee meeting.
7. Annual report and accounts (ARA) 2023-24 timetable
The committee endorsed the high-level timetable for the production of the ARA timetable.
It was noted that the timing of a potential general election and the impact on the laying date may need to be considered.
8. Value for money and insight work
The committee noted the NAO value for money update report.
9. Finance update
The committee noted Ofsted’s financial position as of the end of period 6.
HMCI thanked the Chief Operating Officer and Director, Finance, Planning and Commercial for managing a tight budget this year.
HMCI spoke of the strained budget and impact of previous years’ budget reductions, and raised that actions taken in-year to absorb the pay award and achieve savings may influence cost pressures in future years.
10. ARAC effectiveness
The findings of the ARAC effectiveness survey were reported. Committee members were largely satisfied with the arrangements for ARAC meetings.
The committee discussed the findings and agreed the areas of improvement. A plan setting out the proposed improvements will be produced, and the actions will be monitored at the committee’s forthcoming meetings.
Action: Committee secretary to produce a plan which will be shared with the committee at the next meeting.
The internal and external auditors left the meeting.
11. Internal audit services
The committee endorsed HMCI’s decision to extend GIAA’s contract for a further year.
Action: Director, Finance, Planning and Commercial will inform GIAA of the decision and provide feedback from committee members.
12. AOB
The committee paid tribute to Amanda Spielman for her work in the role of HMCI and Accounting Officer and for her support and advice to ARAC over the past 7 years.