Audit Committee Meeting: Non-Confidential Minutes of the Meeting held on Monday 4th March 2024 via Microsoft Teams

Prior to the meeting the committee held a private meeting with the audit teams.

1.0 Apologies 

042 Apologies were received from Sarah Akhtar and Simon Bedford.

2.0 Declarations of Interest 

043 Interests Declared

• JS declared the following interests: 
  • CEO/Principal Nottingham College 
  • Trustee and Board Members of Skills and Education Group (SEG), awarding organisation and charity
  • Ofsted Inspector 
  • Member of D2N2 LEP Principals’ Group
  • Member of the Performance and Quality Committee of Futures Group 

044 No other interests were declared.

3.0 Minutes of the Previous Meeting

045 The committee resolved that the non-confidential and confidential minutes of the meeting held on 4th December 2023 (distributed as AUDIT.040325.002 and 003) be approved as a true record.

4.0 Actions and Matters Arising 

4.1 Action Tracker 

046 The committee reviewed the open action tracker (distributed as AUDIT.040324.004): 
14.03.22 Action 5 – Sustainability presentation. This action is ongoing and will be brought to the committee in June. 4.12.23 Action 1 – recommendations from the regularity audit have been added to the recommendation tracker. Action agreed complete. 
4.12.23 Action 2 – Follow up health and safety will be undertaken in May. Action ongoing. 

4.2 Matters arising 

047 There were no matters arising.

5.0 Internal Audit (IA) 

5.1 High Needs Provision 

048 The committee received the IA report on the high needs provision (distributed as AUDIT.040324.005). Discussion of this report is in the confidential minutes. 

RW left the meeting 

5.2 Internal Audit Progress Report 

049 The committee received the progress report (distributed as AUDIT.040324.006). All audits on track for the remainder of 23/24. The follow up to the health and safety report will take place in May and the follow up to the high needs report will be undertaken in August. The outcomes of this work will feed into the annual report for 23/24. 

5.3 Further Education – Benchmarking of Internal Audit Findings 22/23 

050 The committee received the benchmarking report (distributed as AUDIT.040324.007). The college was inline with the sector average in assurance levels and the annual opinion for 22/23.

6.0 Recommendation Tracking 

051 The committee received and reviewed the recommendation tracker (distributed as AUDIT.040324.008). As requested by the committee at the last meeting AC confirmed that recommendations from the external/regularity audit have been added to the tracker. Of the 21 actions brought forward, 12 are complete and of the remaining 9, 8 are on track to be completed within the original timescale. AC requested the approval of the committee to extend the deadline of one health and safety recommendation to 30th April. The committee considered the request and resolved to approve the revised date. This recommendation will still be completed ahead of the follow up audit work. AC confirmed that the health and safety action plan will be reviewed at Finance and Assets Committee. Progress of the recommendations from the subcontracting standard audit were reviewed. The committee accepted the report.

7.0 Risk Management

7.1 Strategic risk register 

052 The committee reviewed the strategic risk register (distributed as AUDIT.040324.009). AC confirmed that following review by ELT there was one key change since the last meeting; failure to utilise and maximise use of technology has moved from green to amber to reflect that forecast investment is currently below required levels. All other risks remain unchanged. AC updated the committee on the progress of refinancing discussions. 

The committee resolved to recommend the updated strategic risk register to the Board for approval.

8.2 Operational Risk Register 

053 The committee received the operational risk register (distributed as AUDIT.040324.010). AC highlighted two new risks added and one risk removed. He noted that the current residual risk score is above risk appetite and confirmed that the main gap is in people and change reflecting the macroeconomic environment with recruitment and retention. 

054 A governor commented that the failure to create a positive compliance culture remained as the underlying issue. AC advised that a lot of work had been undertaken in this area and change had been achieved, further work continued with robust HR processes in place. JS noted that it was critical to develop a distributed leadership model, the journey to being an extraordinary college had started with middle leaders and compliance was a big part of this work. She advised that the transformation 2 project was planned to start in the very near future. 

055 A governor queried the use of risk appetite in the operational risk register. AC confirmed that the risk appetite in the strategic risk register had been set by the board and that referenced in the operational risk register equated to the risk target set by management. The governor suggested that it would be helpful if there was consistency across the registers. 

Action - AC and DM to arrange a conversation. 

Action - AC to change reference to risk appetite/ risk target in the operational risk register.

8.0 Fraud, Bribery, Irregularity, Whistleblowing and Legal Claims Report 

056 The committee reviewed the report (distributed as AUDIT.040324.011). No issues relating to fraud, bribery, whistleblowing or irregularity have been identified since the last meeting. A summary of ongoing legal claims was presented.

9.0 Policy Review 

9.1 Data Protection Policy 

057 The committee resolved to recommend the updated policy (distributed as AUDIT.040324.012) to the Board for approval. 9.2 Risk Management Policy 

058 The committee resolved to approve the policy (distributed as AUDIT.040324.013). 

RB and AM left the meeting

10.0 External Audit KPI Report 

059 The committee reviewed the external auditor’s KPI report (distributed as AUDIT.040324.014), it was noted that the increase in scoring since the review last year was a response to continuity in key personnel. AC noted the positive KPI review, he advised the committee that Mazars were appointed in 2021 for a term of 3 years subject to a satisfactory annual performance review. He proposed that Mazars be reappointed for an additional year to undertake external audit services for the year ended 31 July 2024 and that a tender process is undertaken in 2024/25. Mazars are agreeable to that. 

060 The committee resolved to recommend to the Board that Mazars are reappointed to undertake external audit services for the year ended 31 July 2024

11.0 Internal Audit KPI Report 

061 The committee reviewed the internal auditor’s KPI report (distributed as AUDIT.040324.015), the college has been very please with the work undertaken by RSM and the increased score since the last review reflects the continuity of service and attendance at the audit committee. AC advised that RSM had been appointed with effect from 1 August 2022 for a 3 year period subject to satisfactory performance. The committee discussed the scoring system to better understand how this had been applied. 

062 The committee resolved to recommend to the Board that RSM continue as internal auditors for the college for 24/25.

12.0 AOB 

063 None.

13.0 Date of the Next Meeting 

064 The next scheduled meeting of the committee will take place on Monday 10th June 2024 via Microsoft Teams.