Audit Risk Assurance Committee minutes: 14 September 2022
Updated 23 October 2023
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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
Emily Williams, Deputy Director, Strategy, Governance and Private Office (item 9)
Chris Jones, Director, Strategy and Engagement (item 9)
Ian Coates, Government Internal Audit Agency (GIAA)
Ivan Cheary, GIAA
Sebastian Groth, National Audit Office (NAO)
Board Secretary
Status
Approved at the ARAC meeting 15 November 2022.
1. Chair’s introduction, declarations of interest, minutes, actions and matters arising
The chair welcomed everyone to the meeting and apologies were noted from Amanda Spielman and Tony Smith.
Six new board members have been appointed to the Ofsted board. Two new board members will be appointed to ARAC in due course.
The minutes of the last meeting were approved as a correct record.
The actions log was reviewed. It was confirmed that the Director, People and Operations would be invited to the November ARAC meeting when the HR assurance audit will be discussed.
The action to explore the feasibility of an equality, diversity and inclusion (EDI) themed audit will remain open until the publication of updated Cabinet Office guidance.
2. Report from the Chief Operating Officer
COO briefed the board on the activation of Operation London Bridge following the death of Her Majesty the Queen. Civil service wide restrictions on attendance at public engagements were followed. Inspection and regulatory work continued; however, no providers were inspected on the bank holiday.
We are on track to deliver the commitment to inspect, by the end of September, all early years providers who were due an inspection but did not receive one due to the pandemic.
3. Progress against audit recommendations
The committee reviewed the progress made on implementing audit recommendations. At the end of August, 4 management actions had been completed since the last report to ARAC and 6 were reported as on track.
4. Internal audit – Progress report 2022-23
GIAA updated the committee on progress made against the 2022-23 internal audit plan.
It has been agreed with Ofsted management that the early years/social care regulatory models and services audit will be replaced with an audit of spending review implementation. Following an initial scoping meeting it was identified that discussions have not progressed sufficiently to the extent that an audit on this theme can be undertaken.
The committee endorsed this change to the audit plan and agreed that in terms of timings and priorities a broader spending review implementation review would be more suitable.
5. Issued internal audit report – HR assurance: payroll
Substantial assurance with 2 low priority recommendations were provided in respect of the HR assurance: payroll audit, which found overall that payroll is complete, accurate and adequately controlled. The committee thanked the Director, People and Operations and Ofsted colleagues for all their hard work in achieving a substantial opinion.
The committee agreed to discuss HR topics that have been raised by ARAC with the Director, People and Operations at the November meeting.
Action: Committee secretary to provide the Director, People and Operations with a list of HR topics that have been raised at ARAC meetings.
6. External audit – verbal update
Following staff changes at EY, the lead partner for the Ofsted external audit has yet to be confirmed. The chair requested that the audit planning report is presented at the November ARAC meeting.
7. Value for money and insight work
The committee noted the NAO value for money update report.
8. Finance report
The committee noted Ofsted’s financial position as of the end of period 4.
9. Risk report
The committee reviewed the updated strategic risk register and discussed the risk appetite for each risk using the Orange Book definitions: averse, minimal, cautious, open and eager.
Consideration of risk appetite will be on the agenda for the board development day, so that all board members have sight of the biggest risks facing the organisation and can challenge the mitigations.
10. AOB
There was no other business.