Audit Risk Assurance Committee minutes: 17 November 2021
Updated 23 October 2023
Applies to England
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Present
Martin Spencer, Chair
Venessa Willms, Board member
Laura Wyld, Board member
Julie Kirkbride, Board member
James Aston, Co-opted member
Also in attendance
Amanda Spielman, Her Majesty’s Chief Inspector, Accounting Officer
Matthew Coffey, Chief Operating Officer
Louise Grainger, Director, Finance, Planning and Commercial
Board Secretary and Corporate Governance Manager
Emily Williams, Deputy Director, Strategy, Governance and Private Office (items 7 and 10)
Carol Hartley Burdett, GIAA
Tony Smith, GIAA
Sebastian Groth, NAO
Neil Harris, Ernst and Young
Tom Zebedee, Deputy Director, Technology
Head of Security and Information Management
Apologies
Apologies were received from Colin Wilcox, NAO.
Status
Approved.
1. Chairman’s introduction, declarations of interest, minutes, actions and matters arising
The minutes of the meeting held on 22 September 2021 were agreed, subject to one amendment. The committee reviewed the action log and noted that the process to align assurance mapping to the governance assurance statement was under way.
Martin Spencer declared that he has been appointed a civil service commissioner.
2. Report from Chair and Members
Committee members shared updates from their external roles. Members discussed the return to more face-to-face activity, the transition back to offices and the hybrid model, and efforts to bring employees back to the workplace.
Laura Wyld informed members that the Lords Public Services Committee is due to publish its report on the role of public services in addressing child vulnerability.
3. Report from HMCI
The return to routine inspection, including of previously exempt outstanding providers has largely gone well. Inspections are at an early stage, but as expected a proportion of schools are not retaining their outstanding judgement.
[Redacted]
4. Progress against audit recommendations
Three management actions related to the Data Modernisation audit were completed in September. Seven actions were outstanding at the end of September.
One action arising from the Regulatory Review audit will be completed by the end of December instead of the end of September. This risk had been classified by GIAA as low priority.
5. Internal audit
Overall, good progress has been made against the 2021-22 plan.
The committee endorsed a change to the internal audit plan to defer annual payroll testing by one quarter, to quarter 1, 2022-23. This will enable a more substantial piece of work to be carried out which will involve payroll testing covering the whole year. The committee agreed that this will capture deeper insights and add more value.
GIAA affirmed their commitment to completing the 2020-21 plan and presenting reports in time for the March committee meeting.
6. Issued internal audit reports
The committee reviewed the audit reports issued since the last ARAC meeting.
Moderate assurance was provided in respect of the Inspection Services Modernisation Audit. Three recommendations have been accepted by management with one recommendation already implemented and two are on track.
Substantial assurance was provided in respect of the HR Assurance: Discipline and Conduct audit, which found that overall, suitable processes are in place.
The committee was assured that suitable HR conduct, grievance and disciplinary processes are in place.
Action: The Director, People and Operations will be invited to a future ARAC meeting when the HR assurance strategy is considered to discuss processes.
7. External audit update
The committee reviewed the external audit plan submitted by NAO and Ernst and Young.
8. Annual report and Accounts 2021-22 timetable
The committee endorsed the high-level timetable for the production of the ARA timetable. The draft timetable will be agreed in principle with the NAO.
9. External audit update - Value for Money and insight work
The committee noted the NAO value for money update report.
10. Finance report
The committee noted the financial position.
An update on progress with the Budget exchange bid was provided. [Redacted]
11. Spending review update
The Spending Review has been positive, as HMT has agreed to fund most of the proposals we put forward including funding for additional inspections. HMCI and EB have reviewed the high-level financial consequences of the Spending Review and discussed the initial risks and opportunities arising from the settlement.
12. Risk report
Committee members reviewed and discussed two new potential strategic risks.
[Redacted]
[Redacted]
13. ARAC Effectiveness update
The committee received an update on progress against each of the actions arising from the ARAC self-assessment exercise. A skills questionnaire will be circulated to members in due course.
14. Internal session - Deep dive: Cyber security
Members received a presentation focusing on cyber security. Members agreed that the deep dive enabled a better understanding and challenge to the process for identifying and reporting on cyber security risks. The committee was assured that these risks are being managed with appropriate mitigations in place.
Action: It was agreed that the committee will receive an update on cyber risks in 6 months.
15. AOB
There was no other business.
The next audit and risk assurance committee meeting will take place at 10:30am on Tuesday 18 January 2022.