Audit Risk Assurance Committee minutes: 17 January 2023
Updated 23 October 2023
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Present
Martin Spencer, Chair
Jo Moran, Board member
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
Karen Shepperson, Director, People and Operations (item 5)
Robert Garnett, EY
Tony Smith, Government Internal Audit Agency (GIAA)
Ivan Cheary, GIAA
Sebastian Groth, National Audit Office (NAO)
Board Secretary
Head of Strategy (item 12)
Status
Approved at the ARAC meeting 14 March 2023.
1. Chair’s introduction, declarations of interest, minutes, actions and matters arising
Apologies were received from Amanda Spielman, Chris Hanvey, Colin Wilcox and Hassan Rohimun, Chris Jones and Emily Williams.
The minutes of the last meeting were approved as a correct record.
The committee agreed that the strategic risk register was the appropriate mechanism to monitor our approach to equality and diversity issues and agreed that an equality, diversity and inclusion (EDI) themed audit was not needed.
2. Verbal report from the Chief Operating Officer
The Deputy Director, Strategy, Governance and Private Office is leaving at the end of February. The team will be slightly restructured and a Principal Officer for Private Office and Governance will be recruited. The Director, People and Operations leaves Ofsted on 30 April. Operations will move to a new directorate along with Digital and Technology.
Strike action has been announced across a number of sectors, on several dates in February. Information to support colleagues and limit disruption to inspection schedules has been issued.
3. Progress against audit recommendations
The committee reviewed progress made on implementing audit recommendations. At the end of November, 6 management actions had been completed since the last report to ARAC and 11 were reported as on track.
4. Internal audit progress report
GIAA has delivered over half of the annual plan and the remainder is on track for delivery before the March ARAC meeting.
5. Issued internal audit reports
Four engagements have been completed since the last ARAC meeting. Substantial assurance was provided in respect of the Core Financial Controls, Continuous Testing and Spending Review Implementation. Moderate assurance was provided in respect of the Business Continuity Planning and the HR Assurance audits.
The Director, People and Operations briefed the committee on initiatives to support absence management.
6. Draft internal audit plan 2023-24
ARAC members were invited to comment on a list of potential audit topics for 2023-2024 emerging from planning discussions with directors. The committee considered that the focus was on the right areas.
GIAA will meet with His Majesty’s Chief Inspector and the ARAC chair to discuss the plan before it is presented to ARAC on 14 March 2023 for agreement.
The committee agreed with the proposal not to have an audit on stakeholder engagement. With regards to assurance in this area, Cabinet Office has published the Government Communication Functional Standard. In the annual report and accounts, we will confirm that we are meeting all compulsory and advisory requirements and/or set out what we are doing to meet the standard.
7. External audit
Preparations are under way for the interim audit which will begin in February. The final audit will begin in May and completed by mid-June.
8. Value for Money and insight work
The committee noted the NAO value for money update report.
9. Interim Governance Statement 2022-23
The committee reviewed the Interim Governance Statement and requested that more information about the board effectiveness review was added. Subject to this amendment, the committee was content with the statement.
10. Counter Fraud, Bribery and Corruption update
A summary of the fraud, bribery and corruption risks was presented to the committee. The committee was satisfied that Ofsted continues to meet the requirements of the Government Counter Fraud Standard.
Hybrid working fraud risks were discussed. GIAA guidance has been published and it was agreed that a meeting with the GIAA would be beneficial.
Action: Tony Smith, GIAA to set up a meeting between the Chief Operating Officer and the GIAA Head of Counter Fraud and Investigations to discuss hybrid working risks.
11. Finance report
The committee noted Ofsted’s financial position as of the end of period.
ARAC will be briefed on the 2023-24 budget at the March committee meeting.
12. Risk report
The committee noted the changes to the strategic risk register since its last meeting.
We will return to a future ARAC meeting with recommendations on the risk appetite and incorporate feedback from ARAC on simplifying the presentation of the risk register. This will include how the new column on tolerable and optimal risk ratings for each risk is shown in the ‘risk appetite’ column.
13. AOB
13.1 There was no other business.