Minutes of the Audit Risk Assurance Committee: 21 January 2025
Updated 24 April 2025
Applies to England
Present
Martin Spencer, Chair
Laura Wyld, Board member
Jon Yates, Board member
Jo Moran, Board member
Ian Looker, Co-opted member
Also in attendance
Martyn Oliver, His Majesty’s Chief Inspector (HMCI)
Matthew Coffey, Deputy His Majesty’s Chief Inspector (DHMCI)
Louise Grainger, Chief Financial Officer
Private Secretary to DHMCI
Corporate Governance Officer
Khadija Qidwai, National Audit Office (NAO)
Adeel Shameem, EY
Tony Smith, Government Internal Audit Agency (GIAA)
Curtis Yapp, GIAA
Rory Gribbell, Director, Strategy and Engagement (items 9, 10)
Head of Strategy Delivery (item 9)
Strategic Priorities Risks and Compliance Lead (item 9)
Status
Approved at the ARAC meeting 20 March 2025.
1. Chair’s introduction, declarations of interest, minutes, actions and matters arising
Laura Wyld declared she will be joining the Public Services Select Committee in the House of Lords, starting 25 January.
The minutes of the last meeting were approved subject to 2 amendments.
All actions from last meeting were closed.
2. Verbal report from HMCI
HMCI informed the committee that Dear Accounting Officer (DAO) letters from His Majesty’s Treasury will now be recorded formally at ARAC.
HMCI provided an update on his appearance at the Education Select Committee and the positive feedback received. Progress of the inspection improvement programme and the ongoing work of board involvement with Ofsted’s day-to-day operations. This included the progress with the corporate governance framework with a significant update to be provided at the next meeting.
3. Progress against audit recommendations
The committee reviewed progress made on implementing audit recommendations and interrogated reasons for the delays in completing 3 actions.
4. Internal audit progress report
GIAA is on track with plans to deliver the remainder of the audit plan by end of March 2025.
Members questioned why most of the audits will have been completed in the second half of this financial year and requested that the audits in 2025-26 are spread across the year to provide timely assurance to ARAC.
5. Issued internal audit reports
Three audits have been completed since the last meeting: Inspector Training Programme, Core Financial Controls and Development of a Centralised Delivery Hub Model.
The committee discussed the audit report on the Inspector Training Programme. Substantial assurance was provided and 3 low-level recommendations were accepted by Ofsted.
Substantial assurance was provided in respect of the Core Financial Controls audit with annual testing confirming that controls are adequate and effective across all areas reviewed.
GIAA conducted an advisory review around the Development of a Centralised Delivery Hub Model. The report highlighted that a robust governance framework was in place, active engagement throughout delivery and risk register to identify any risks. GIAA provided some suggested actions that would increase controls.
6. Internal audit planning update 2025-26
ARAC members were invited to comment on a list of potential audit topics for 2025-26 emerging from planning discussions with directors. GIAA acknowledged the time and effort invested, along with the positive contributions and engagement demonstrated by Ofsted.
ARAC discussed the key themes and proposed audits presented in the draft plan and identified the highest priorities, subject to Ofsted’s agreement with the fee level. Assurance mapping was also highlighted as effective in providing assurance to the committee. GIAA will prepare the draft plan for 2025-26 and present to the March ARAC for agreement.
7. External audit planning verbal update
There were no further updates to the audit final plan that was shared at the last committee. The final copy of the audit plan will be presented at the March ARAC.
The committee noted that the proposed treatment of our office relocations in accordance with IFRS 16 accounting for leases will be reviewed by the auditors during the interim audit.
8. External audit: value for money and insight work
The committee noted the NAO value for money update report and upcoming publications.
9. Strategic risk
ARAC noted the strategic risk register update, reviewed the risk tolerance in detail and set the risk tolerance for each of Ofsted’s strategic risks.
10. Interim governance statement
The committee reviewed the interim governance statement and requested that the section on board and ARAC responsibilities be reworded to capture referencing the terms of references, and to include in the corporate governance framework and the interim statement that the board and ARAC have met with the requirements this year. Subject to this amendment, the committee was content with the interim statement.
11. Finance report
The committee noted Ofsted’s financial position as of the end of period 8.
12. Finance business planning
The committee noted the assumptions that may impact on the 2025-26 financial position.
The committee noted the approach for setting the 2025-26 budget as agreed by the board and planned priorities to be presented at the next board meeting in February.
The committee noted phase 2 of the spending review requirements and the role of the board in zero-based reviews.
13. Counter-fraud update
ARAC noted an update on Ofsted’s fraud risks and fraud detected since the last update to ARAC in June 2024.
14. AOB
There was no other business.
15. Internal session
The committee discussed internal audit contract post March 2026.
Action: HMCI and Louise Grainger to meet with CEO at GIAA.