Audit Committee Meeting: Non-Confidential Minutes of the Meeting held on Monday 4th December 2023 via Microsoft Teams

Prior to the meeting the committee held a private meeting with the internal auditor.

1.0 Apologies

029 Apologies were received from Jon Hawley (co-opted member).

2.0 Declarations of Interest

030 No declarations of interest were received.

3.0 Minutes of the Previous Meeting 

031 The committee resolved that the non-confidential and confidential minutes of the meeting held on 18th September 2023 (distributed as AUDIT.041223.002 and 003) be approved as a true record.

4.0 Actions and Matters Arising

4.1 Action Tracker 

032 The committee reviewed the open action tracker (distributed as AUDIT.041223.004): 
14.03.22 Action 5 – Sustainability presentation. This action is ongoing, all other actions are complete. 

4.2 Matters Arising 

033 There were no matters arising.

5.0 Internal Audit (IA) 

5.1 Adult Learner Journey 

034 The committee received the IA report on the adult learner journey (distributed as AUDIT.041223.005). Overall this is a positive report, with 4 recommendations all low priority. Good practice was observed and processes are in line with the sector. 

5.2 Health and Safety Framework 

035 The committee received the IA report on the Health and Safety framework (distributed as AUDIT.041223.006). Discussion of this report was minuted confidentially. 

5.3 Progress Report, Emerging Issues Sector Update and ESFA Subcontracting Standard Lessons Learned 

037 The committee received the IA progress report and relevant sector updates, including lessons learned from the ESFA subcontracting standard audit process (distributed as AUDIT.041223.007). All audits so far have been completed on time, with all others on track for the rest of 23/24.

6.0 Recommendation Tracking 

038 The committee received and reviewed the recommendation tracker (distributed as AUDIT.041223.008). Of the 23 actions brought forward from the report reviewed at the last meeting, 19 are complete and the remaining 4 will be completed by the 31 December deadline. The recommendations from the subcontracting standard review report are not in the main report, all are complete or on track to be complete by their agreed deadline.

7.0 Financial Statements and Regulatory Audit 

7.1 Going Concern Report 

Discussion in relation to this report was minutes as confidential. 

The committee resolved to support the view of the college as a going concern subject to the condition of receiving evidence as outlined in the confidential minutes to enable corporation to give a going concern statement. 

042 As part of the ongoing discussions with the DfE around refinancing, it has requested an updated forecast (in the form of an updated CFFR) to July 2026. The board approved a forecast to July 2025 at its October meeting and the further update will be brought to the board meeting for approval on 13th December. TM explained that any refinancing with DfE will be on its standard terms, and loans will only be met where the college cannot meet the sum from its reserves. 

DM left the meeting.

7.2 Regularity auditor’s completion report 

043 The committee reviewed the regularity auditor’s completion report for 22/23 (distributed as AUDIT.041223.010). With the exception of the going concern as discussed, the regularity audit has returned no concerns which is positive given that this has been the first year of colleges adhering to Managing Public Money obligations. Management has chosen not to recognise the asset position of the LGPS, in line with the sector. The one medium priority recommendation made is common to many colleges. There are 3 immaterial adjusted items in the year-end financial statements. 

The committee resolved to recommend the approval of the management representation letters, excepting the incomplete going concern paragraph which will be updated in line with the assurance received ahead of the board meeting on 13th December. 

Action – AC to ensure that recommendations from regularity audit added to recommendation tracking reporting to enable governors to ensure recommendations are being completed

7.3 Financial Statements and Accounts year ended 31st July 2023 

044 The committee resolved to recommend: 

• the annual statements and financial accounts for approval by the Board (distributed as AUDIT.041223.011) 
• that these should be submitted to the ESFA and all lenders by 31st December 
• subject to adequate assurance being secured in relation to going concern as outlined in the confidential minutes. 

7.4 Financial Statements and Accounts year ended 31st July 2023 for college subsidiaries 

045 The committee received the financial statements for the college subsidiaries (distributed as AUDIT.041223.012) and noted that these have been consolidated into the group accounts. It was further noted that these have been agreed by the Directors of their boards, subject to external audit, which resulted in no alterations.

8.0 Risk Management 

8.1 Strategic risk register 

046 The committee reviewed the strategic risk register (distributed as AUDIT.041223.013). AC reported that the Health and Safety risk has been updated to red from amber due to the internal audit report findings reported under Item 5.2, and the failure to manage college finances risk has been updated to amber from green to reflect the refinancing position. The committee resolved to recommend the updated strategic risk register to the Board for approval. 

8.2 Operational Risk Register 

047 The committee received the operational risk register (distributed as AUDIT.041223.014), noting recent changes made to some risk areas.

9.0 Fraud, Bribery, Irregularity and Legal Claims Report 

048 The committee reviewed the report (distributed as AUDIT.041223.015). No issues relating to fraud, bribery or irregularity have been identified since the last meeting, or in the regularity audit for 22/23. A summary of ongoing legal claims was presented. A governor asked about the prevalence of cases brought against the college on the basis of either racial or gender discrimination. JS responded that no pattern in cases has been identified but this is an area that the college takes very seriously.

10.0 Audit Committee Self-Assessment Report 

049 The committee noted the outturn of the audit committee self-assessment report for 22/23 and the planned action around board reporting to be taken in 23/24 (AUDIT.041223.016).

11.0 Audit Committee Annual Report 

050 The committee reviewed the audit committee annual report (distributed as AUDIT.041223.017), which has been completed with the exception of the section related to the financial statements and regularity audit and the committee’s overall opinion. 

The committee resolved to approve all sections of the report completed to date and resolved that the full report would be approved via written resolution once it was possible to complete the remaining sections.

13.0 Policy Review 

12.1 Data retention and disposal policy 

051 The committee resolved to recommend the updated policy (distributed as AUDIT.041223.018) to the Board for approval. 

12.2 Information Security policy 

052 The committee resolved to approve the policy (distributed as AUDIT.041223.019) for review in a further year. It has not been altered following internal review this year.

14.0 AOB 

053 None.

15.0 Date of the Next Meeting

054 The next scheduled meeting of the committee will take place on Monday 4th March 2024 via Microsoft Teams.