Corporate report

Audit Risk Assurance Committee minutes: 15 June 2022

Updated 23 October 2023

Applies to England

Present

Martin Spencer, Chair

Laura Wyld, Board member

Julie Kirkbride, Board member

Venessa Willms, Board member

Ian Looker, Co-opted member

Also in attendance

Amanda Spielman, His Majesty’s Chief Inspector, Accounting Officer

Louise Grainger Director, Finance, Planning and Commercial

Board Secretary and Corporate Governance Team Leader

Emily Williams, Deputy Director, Strategy, Governance and Private Office (items 8 and 10)

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

Tom Zebedee, Deputy Director, Technology (item 12)

Head of Security and Information Management (item 12)

Carol Hartley Burdett, GIAA

Tony Smith, GIAA

Colin Wilcox, NAO

Neil Harris, Ernst and Young

Rob Garnett, Ernst and Young

Status

Approved at the ARAC meeting 14 September 2022.

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

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

Venessa Willms and Julie Kirkbride were thanked by the committee for their input and contribution to ARAC and Ofsted over the years, as their terms come to an end, and they step down in July 2022.

2. Report from HMCI

HMCI provided an update on inspections; Ofsted’s draft response to the government’s commission for all departments to draw up indicative proposals for reducing civil service headcount and recent engagements with DfE on the Schools White paper.

3. Progress against audit recommendations

The committee reviewed the progress made on implementing audit recommendations. At the end of April, 5 management actions had been completed and 8 were reported as on track.

4. Internal audit - Progress report 2022-23

The 2022-23 internal audit programme is on track with scoping meetings scheduled with the relevant Directors for all engagements on the audit plan.

A decision on a potential EDI audit will be deferred until guidance on the Civil Service Diversity and Inclusion Strategy is published.

Action: ARAC to review the internal audit plan at every meeting and continue to explore the feasibility of an EDI-themed audit following the publication of new guidance.

5. Annual opinion

The committee noted the substantial opinion provided by the Head of Internal Audit that overall Ofsted’s framework of governance, risk management and control in 2021-22 was adequate and effective.

The committee was pleased to note that this was the third consecutive year that Ofsted had been provided with a substantial opinion.

The chair put on record his thanks to the Director, Finance, Planning and Commercial and Ofsted colleagues for this significant achievement.

6. Audit completion report

Members noted that the audit is due to be completed in early July 2022. It is anticipated that the NAO will recommend to the Comptroller and Auditor General that he should certify the 2021-22 financial statements with an unqualified audit opinion.

The external auditors thanked the Director of Finance, Planning and Commercial and all of Ofsted’s finance team for their full cooperation and assistance throughout the audit process.

7. Value for money and insight work

The committee noted the NAO value for money update report.

8. Annual report and accounts 2021-22

The committee reviewed the draft annual report and accounts. The committee was content to recommend that the board approve the annual report and accounts 2021-22 prior to certification of Ofsted’s Accounting Officer.

9. Draft Annual Report of the ARAC

The committee reviewed its draft annual report, which provided an overview of ARAC’s activity during the financial year 2021-22.

The committee felt that the language in the opening paragraph could be strengthened to capture the level of challenge the committee provided. Subject to this update, the committee was content for the report to be submitted to the board.

10. Risk report

The committee was briefed on a planned review of the strategic risk register to ensure that it aligns with the new strategy.

ARAC considered that the current risk register format worked well, but there was an opportunity to reduce duplication, articulate the risks more clearly, capture any new risks arising from the new strategy and consider our risk appetite.

A meeting to discuss the new strategic risk register will be organised and Laura Wyld will provide feedback on ARAC’s behalf. The new strategic risk register will be presented at the next ARAC meeting.

Action: Committee secretary to organise a meeting to review the strategic risk register and invite Laura Wyld.

11. Finance report

The committee noted Ofsted’s financial position as of the end of period 1.

12. Annual information assurance and cyber security report

The committee received an annual briefing on information and cyber security in Ofsted. Of note, were the following initiatives:

• Ofsted achieved Cyber Essentials Plus certification in December 2021, a government-backed scheme that confirms Ofsted has suitable controls in place to protect against a wide variety of common cyber-attacks
• Ofsted received excellent feedback from a cyber security focused gap analysis carried out by HMRC in the summer of 2021, with no gaps being identified
• an information security group meets on a quarterly basis to review information security incidents, risks, and activities to raise staff awareness

The committee was assured that Ofsted continues to actively manage its information and cyber security risks and that there are appropriate mitigations in place.

13. AOB

It was noted that this was Neil Harris and Carol Hartley Burdett’s last ARAC meeting. Carol and Neil were thanked for the advice and audit support they had provided to the committee and Ofsted.

The next audit and risk assurance committee meeting will take place at 10:30 am on Wednesday 14 September 2022.