Corporate report

Audit and Risk Assurance Committee minutes: 6 November 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

Matthew Coffey, Chief Operating Officer

Louise Grainger, Director, Finance, Planning and Commercial

Sebastian Groth, National Audit Office (NAO)

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 Martin Spencer (Board member), Emily Williams (Private Secretary to HMCI and Head of Private Office and Corporate Governance) and Colin Wilcox (NAO).

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, agreeing to continue to invite audit sponsors to attend meetings where reports contained medium level or higher recommendations.

Kathryn August declared that she is providing pro-bono support to a free school that is currently being set up.

2. Report from Chair and Members

The Chair noted that since the Committee last met the Ofsted Board had met for the first time with its new members present.

The Chair informed the Committee that he had held a productive meeting with Ofsted staff about the ongoing refresh of the strategy.

Committee members participated in a task and finish group, testing Brexit planning scenarios.

3. Progress against audit recommendations

The Committee noted the progress made against audit recommendations.

4. Internal audit progress report

The Internal Audit plan has been kept under review resulting in some small changes to the timing of certain audits, ensuring they are carried out at a time when they can add maximum value.

GIAA are on track to deliver all the audits in the 2019-20 plan and to present the Head of Internal Audit opinion to the June 2020 committee meeting as originally planned.

5. Internal audit reports

GIAA presented the advisory report on benefits realisation. The audit assessed Ofsted’s approach to identifying, defining, tracking and realising the benefits of programmes.

The Committee noted that the advisory recommendations within the report have been agreed by the project lead.

Board involvement in the development of strategic business cases will continue on an ad-hoc basis.

GIAA also presented their report on the core financial controls within payroll, the general ledger, expenditure and income. Two recommendations were made and accepted. Action: An update on controls relating to the leavers process will be provided at the Committee’s meeting on 22 January.

6. External audit update

The Committee received an update on NAO’s value for money audit activity and noted that Ofsted had been consulted where necessary.

7. NAO planning update - verbal

NAO confirmed that they have now contracted a firm to undertake the financial audit for 2019-20. The appointment process has delayed the NAO’s audit planning report, which is typically shared with the Committee in November.

NAO committed to holding a planning meeting with Ofsted staff in November. Despite the delay, NAO expect to be able to adhere to the timetable prepared by Ofsted.

The Committee agreed that they must review the audit planning report before the commencement of the NAO’s interim audit.

Action: The NAO will circulate the planning report once complete in early December, for the Committee’s review.

8. Annual Report and Accounts timetable

The Committee noted the proposed timetable for the production of the 201920 Annual Report and Accounts.

The timetable will also be discussed with Martin Spencer outside of the meeting.

9. Brexit planning

Three members of the Committee took part in a task and finish group on Brexit planning on 24 October. The group tested plans for managing the impact of Brexit on Ofsted’s work.

The Committee noted that since that session a further extension to the deadline for the UK leaving the EU had been agreed. Ofsted’s planning has been paused temporarily and Operation Yellowhammer suspended across government.

10. Government functional standard: Counter Fraud

The Government counter fraud standard sets expectations for the management of fraud, bribery and corruption risk in government. The Committee reviewed the action plan which will ensure those standards are met by 31 December 2019. The Executive Board will review progress at the end of November.

A number of potential risks relating to fraud, bribery and corruption have been identified, and will be managed through the Executive risk register.

11. Strategic Risk Register

The Committee reviewed the strategic risks and noted that the workforce risk will be reviewed by the Executive Board in January.

The Committee discussed the draft risk relating to external uncertainty that has been added to the register.

12. Finance report

The Committee noted the financial position at the end of period 6.

13. Internal Auditor Performance

Committee members shared their views on the performance of GIAA as internal auditors. HMCI will consider views and consult with Martin Spencer before deciding on the provision of internal audit services for 2020-21.

14. Forward plan

There were no comments on the ARAC forward plan.

15. AOB

No further business

End of meeting

The next Audit and Risk Assurance Committee meeting will take place at 10.30am on Wednesday 22 January 2020.