Corporate report

Audit and Risk Assurance Committee minutes: 14 September 2023

Updated 26 November 2024

Applies to England

Present

Martin Spencer, Chair

Jo Moran, 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 9)

Head of Strategy (item 9)

Strategy Officer (item 9)

Robert Garnett, EY

Tony Smith, Government Internal Audit Agency (GIAA)

Ivan Cheary, GIAA

Sebastian Groth, National Audit Office (NAO)

Status

Approved at the ARAC meeting 14 November 2023.

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

Apologies were received from Laura Wyld and Jon Yates.

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 and priorities for the coming months.

3. Progress against audit recommendations

The committee reviewed progress made on implementing audit recommendations. At the end of July one management action had been completed since the last report to ARAC. The committee noted that the contract management framework has been updated to meet the Government Commercial Standards and will be shared with HMCI and the Executive Board for approval in September.

4. Internal audit progress report

Delivery of the 2023-24 plan is progressing to schedule. There are no proposed changes to the plan other than a management request to defer the inspection services engagement to 2024/25, due to reprioritisation of work, and replace it with a review on the theme of Azure/Cloud hosting.

5. Issued internal audit reports

GIAA reported a substantial opinion in respect of the Development of Education Inspection Policy audit. Strengths included project governance, stakeholder engagement, quality control and an iterative process based on trial and feedback.

6. External audit

EY confirmed that the draft external audit plan would be brought to the November committee meeting.

7. Value for money and insight work

The committee noted the NAO value for money update report.

8. Finance update

The committee noted Ofsted’s financial position as of the end of period 4. ARAC discussed the potential implications of Cabinet Office pay guidance on the Ofsted budget and spending priorities. The different approach by government departments and Arm’s-length bodies to the implementation of the pay guidance was highlighted. NAO agreed to explore if this is a topic that the NAO is looking at as part of its value for money and insights work programme.

The budget is considered at the March ARAC meeting. It was agreed that an update on budget setting principles will be provided at the January ARAC meeting.

Action: Committee secretary to add budget setting principles to the forward plan.

9. Risk report

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

ARAC supported the approach to the workshop in October to review how impact is set and how risks are ranked, to gain a clearer sense of prioritisation and develop a hierarchy of strategic risks. The committee agreed that the workshop should be in person rather than online.

10. ARAC effectiveness

Committee members agreed that an effectiveness review of ARAC will be undertaken by the governance team. The NAO committee effectiveness tool will be utilised and adapted, with questions not directly related to our work and remit as a non-ministerial department, removed.

11. Forward plan

The forward work plan was noted.

12. AOB

There was no other business.