Corporate report

Minutes of the Audit Risk Assurance Committee: 20 March 2025

Updated 28 July 2025

Applies to England

Present

Martin Spencer, Chair

Laura Wyld, Board member

Jo Moran, Board member

Ian Looker, Co-opted member 

Apologies

Jon Yates, Board member 

Matthew Coffey, Deputy His Majesty’s Chief Inspector

Also in attendance

Martyn Oliver, His Majesty’s Chief Inspector (HMCI)

Louise Grainger, Chief Financial Officer

Principal Private Secretary to HMCI and Head of Private Office

Head of Corporate Governance

Corporate Governance Officer

Khadija Qidwai, National Audit Office (NAO)

Adeel Shameem, EY

Hassan Rohimun, EY

Tony Smith, Government Internal Audit Agency (GIAA)

Curtis Yapp, GIAA

Aneil Jhumat, GIAA (items 5 to 8)

Rory Gribbell, Director, Strategy and Engagement (items 10 and 11)

Head of Strategy Delivery, Strategic Priorities, Risks and Compliance Lead (item 11)

Deputy to the Director of People and Head of HR Business Partnering, Culture and Wellbeing (item 13)

Status

Approved at the 19 June meeting.

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

The minutes of the last meeting were approved as a correct record, with one amendment agreed.

All actions from the last meeting were closed.

2. Verbal report from HMCI

HMCI expressed his and Ofsted’s unwavering support for Sir Hamid Patel. HMCI has expressed this personally to Sir Hamid Patel, who is grateful for Ofsted’s support and is open to discussing any concerns that the board may have.

HMCI confirmed that the board recommended HMCI approve the budget for 2025–26 on 11 March 2025.

HMCI updated the committee on progress towards meeting the requirements of Spending Review 2025. The committee discussed recent media engagement by the National Director, Regulation and Social Care.

3. Scheme of Delegation

The committee noted work done to improve the Scheme of Delegation. The committee noted the working draft, as approved by ExCo on 11 March, and noted the ongoing actions.

The committee discussed the Financial Scheme of Delegation, and system controls in place.

4. Progress against audit recommendations

The committee noted that 3 actions have been completed since the last meeting, and that the 3 outstanding delayed actions are on track to be delivered against the revised deadlines.

5. Internal Audit Progress report

The committee noted that the 2024–25 internal audit plan will be completed by 31 March 2025. Two reports have been delayed until the June ARAC meeting.

The committee interrogated the reasons for these delays and noted the impact of unexpected resourcing issues at GIAA. The committee sought assurance that the 2025–26 plan would be delivered on time. The committee noted plans to achieve a flatter delivery profile across the 2025–26 financial year and prevent future delays.

The committee discussed the Internal Audit Leaders Insight Report published by GIAA, and implications of the new internal audit standards effective from 1 April 2025. The committee were assured that current practice is compliant with the new standards.

6. Issued internal audit reports

Three reports have been completed since the last meeting: HR Workforce Data and Insights, Commercial Assurance and Payroll.

The committee discussed the report on HR Workforce Data and Insights. Moderate assurance was provided. Two low and 2 medium priority recommendations have been accepted by Ofsted. The committee noted revised wording to one management action raised by the Chief Financial Officer, which has been shared with GIAA colleagues for inclusion in the report.

The committee gave feedback that future reports should appropriately contextualise engagements and findings and avoid jargon where possible.

The committee discussed the Commercial Assurance report. Substantial assurance was provided.

The committee discussed the payroll report. Moderate assurance was provided. The committee interrogated current and planned controls in place. The committee noted that a further audit was planned for spring 2026.

7. Draft internal audit plan 2025–26

The committee discussed the 2 options for the 2025–26 audit plan. The committee supported HMCI’s decision to proceed with a plan of eight audits and agreed that this would provide robust assurance and value for money.

The committee discussed whether there was sufficient audit coverage on digital change and noted that aspects of digital change would be included in other audits included in the draft plan.

8. Internal audit services 2026–27

To inform decisions on the provider of internal audit services in 2026–27, GIAA provided an update on the service they provide to government departments. The committee interrogated the offer, with particular regard to value for money.

9. External audit update

EY reported that there were no issues to raise with the committee from the interim audit.

The committee noted the recent and upcoming NAO value for money and insight publications.

10. Update on preparation of Annual Report and Accounts (ARA)

The committee were updated on the steps taken and governance arrangements in place to deliver a more succinct ARA for 2024–25.

11. Strategic Risk

The committee reviewed the risk register and interrogated where key risks and mitigating actions were being monitored.

The committee approved the current status and risk tolerance level of the strategic risks.

The committee supported work done on the risk control framework.

12. Finance report

The committee noted the financial position and the period 10 forecast. The committee discussed additional controls in place to improve forecasting.

The committee noted ongoing work relating to the Spending Review.

13. Whistleblowing policy

The committee reviewed the whistleblowing policy, noted details of cases from the period from 1 April 2023 to present, and interrogated how the policy had been applied in these cases. The committee were assured that the policy is working well.

The committee noted that the policy is subject to internal review in summer 2025.

The committee noted ongoing work to embed Ofsted’s values.

14. AOB

NAO, EY, and GIAA attendees left the meeting. The committee discussed the provision of internal audit services for 2026–27.