Corporate report

Minutes of the Audit Risk Assurance Committee: 22 January 2026

Updated 19 March 2026

Applies to England

Present

Martin Spencer, Chair

Laura Wyld, Board member

Jo Moran, Board member

Jon Yates, Board member

Ian Looker, Co-opted member 

Also in attendance

Dame Christine Gilbert, Chair, Ofsted (observer)

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

Louise Grainger, Chief Financial and Operating Officer

Aftab Arif, Interim Director, Finance

Head of Strategy Delivery

Strategic Priorities, Risks and Compliance Lead

Khadija Qidwai, NAO

Jessica Wilson, NAO

Emma Wilson, NAO

Adeel Shameem, EY

Hassan Rohimun, EY

Gary Wilkin, Government Internal Audit Agency (GIAA)

Curtis Yapp, GIAA

Lynda Oates, GIAA

Rory Gribbell, Director, Strategy and Engagement (items 9 to 11)

Status

Approved at the Audit and Risk Assurance Committee (ARAC) meeting on 12 March 2026.

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

The chair welcomed Jessica Wilson, Lynda Oates and Aftab Arif to their first committee meeting.

He noted it was Ian Looker’s last committee meeting and thanked him for all his support as ARAC’s co-opted member. The chair also provided a brief update on the process for appointing Ian’s successor.

The minutes of the last meeting were approved as a correct record with no changes.

The committee discussed one outstanding action from the November meeting for EY and NAO to finalise work on accounting for intangible assets. EY and NAO expect to conclude this during the week commencing 26 January 2026.

2. Verbal report from HMCI

HMCI congratulated Aftab Arif on his appointment as interim Finance Director and noted Sally Roberts’ appointment as interim People Director.

HMCI noted 2 ‘Dear Accounting Officer’ letters had been included with the papers for information: DAO letter 05/25 and DAO letter 06/25.

HMCI updated the committee on cross-government issues relating to the administration of the Civil Service Pensions Scheme.

HMCI provided an update on the implementation of the renewed education inspection framework, noting positive feedback from the sector. He also set out Ofsted’s reform priorities going forward, noting in particular planned updates to the inspections framework for prison education, area SEND inspection reforms and updates to the framework for inspections of local authority children’s services and the social care common inspection framework.

HMCI concluded by noting extensive press interest in Ofsted continues, including on the back of the recently announced inspection of a Bristol academy.

3. Progress against audit recommendations

The committee noted progress made on implementing the audit recommendations. Members noted 11 actions have been completed, with 3 actions still to be completed. None of the target completion dates have been amended since the last update. 

The board chair requested that the wording in relation to the action on the development of an ‘Areas of research interest’ document is amended.

4. Internal audit progress report

GIAA provided a progress report on the delivery of the 2025–26 internal audit plan. Committee members discussed how strategic priority areas for the internal audit are identified and noted the results of the work taken forward to date.

Two audits have been completed since the November committee: an assessment of Ofsted’s Big Listen action monitoring report and Core Financial Controls.

The committee discussed the Big Listen action monitoring report audit, which had been given a moderate opinion. Committee members noted the importance of engaging with Ofsted’s board as part of the audit process, given its integral role in strategic decision-making for Ofsted.

The committee discussed GIAA’s audit of Core Financial Controls, which had been given a substantial opinion.

5. Internal audit planning report 2026–27

Committee members were invited to comment on a ‘long list’ of potential audits for 2026–27, which had been developed following GIAA’s engagement with directors.

Committee members supported the proposed focus on cyber security and the assurance framework and suggested greater emphasis on technology and digital delivery.

Committee members discussed GIAA’s process for developing the draft plan and requested further detail on how GIAA take account of cross-government insights. The draft 2026–27 plan will be presented at the March meeting for approval.

6. External audit draft planning report 2025–26

The committee discussed the audit planning report on the 2025–26 financial statements audit and EY confirmed their plan would enable laying Ofsted’s Annual Report and Accounts before the parliamentary recess.

The committee expressed its discontent with the increase in audit costs, noting an above-inflation increase of 5% compared to last year’s fees.

7. Value for Money and Insight work

The committee noted the update on the NAO’s value for money and insights work.

8. Interim Governance statement 2025–26 – for comment

The committee discussed the draft interim governance statement for 2025–26 and suggested some small amendments.

Committee members also asked to ensure that the register of interest is up-to-date and that committee members are alerted prior to publication.

9. Annual Report and Accounts 2025–26 production and timeline

Committee members noted and agreed the updated production timeline of the 2025–26 Annual Report and Accounts, noting engagement with the Ofsted board had been brought forward by a week to provide more time for review and feedback prior to publication.

10. Strategic risk

The committee discussed the strategic risk register in detail and considered and commented on several proposed changes. The committee also reviewed and set the risk tolerance for each of Ofsted’s strategic risks. The committee suggested to review the levels of risk tolerance for Ofsted’s strategic risks on an annual basis.

11. Finance report

The committee noted Ofsted’s financial position and the forecast at the end of period 8.

12. Business planning – for discussion

The committee discussed the financial position for 2026–27 and steps taken by the Executive to determine the draft budget for 2026–27 which will be scrutinised at the February board meeting.

13. Annual Counter Fraud and climate risk summary update – for discussion

The committee noted Ofsted’s compliance with the requirements of the Government’s counter fraud standard, the frauds identified since January 2025 and the robust actions taken in response.

The committee noted the summary of climate related risks for Ofsted and agreed there was no immediate concern.

14. AOB

The chair thanked Ian Looker again for all his work and contributions as Ofsted’s co-opted member over the past 4 years.