Minutes of the Meeting of the Audit Committee - 4 March 2026

Prior to the meeting, the VP, Q, I & A provided a detailed risk briefing to the Committee, to which all Board members had been invited, on the following strategic risk –

Risk QSC09: Risk of Poor Achievement Rates on New Apprenticeship Standards due to Lack of Clarity of EndPoint Assessment (EPA) Routes

The VP QI&A presented the latest apprenticeship performance data and highlighted the below target level of historic achievement rates, despite sustained growth in apprenticeship numbers and income. While completion rates for apprentices remain high, the VP, Q I & A outlined how the timeliness of completions was leading to lower than Department for Education (DfE) targets for achievement rates bringing with it the risk of intervention. Ofsted’s enhanced focus on achievement rates and the inclusion of a discrete judgement on apprenticeships increased the materiality of this risk.

The briefing set out the actions being implemented to mitigate the risk, including:

• • • restructuring of the college Apprenticeship Team to strengthen apprenticeship retention and enhance the quality of delivery;
    • enhanced monitoring of apprentice progress and improved reporting;
    • increased capacity for both IQA activity and EPA preparation;
    • redesign of gateway processes to ensure apprentices were fully ready before entering EPA; and
    • strengthening employer engagement to secure better inwork support for apprentices.

Early indicators for 2025/26, suggested an improving picture and that achievement rates were projected to move towards the college’s 65% target, supported by increased capacity and revised processes.

The Committee welcomed the assurance that controls were now in place to address the clarity of EPA routes and to stabilise achievement performance.

J. Godsmark, Internal Audit Service Validera, joined the meeting.

C. Sharp in the Chair

01/26. Declarations of Interest

There were no pecuniary declarations of interest.

02/26. Draft Minutes of the Meeting Held 26 November 2025 (Appendix, Agenda Item 3)

The Minutes of the meeting held on 26 November 2025, were agreed as a true record.

03/26. Reports from Internal Audit Service (Appendices a & b, Agenda item 4)

Mr Godsmark presented the following reports (all previously circulated) –

Internal Audit Service Progress Report

The Committee received the Internal Audit Progress Report, providing an update on delivery of the 2025/26 Internal Audit Plan, approved in November 2025.

• • • The Payroll, Benefits and Expenses audit had been finalised, with Substantial Assurance reported. The Campus Management audit had reached draft-report stage and had been given a provisional Reasonable Assurance rating. In response to a question, the EDoF explained that the audit’s recommendations were currently being reviewed. The Core Financial Controls audit was awaiting completion of the quality assurance process and management had confirmed it was content with the provisional recommendations made. The Committee expressed satisfaction with the findings overall and hoped that the reports would be finalised in time for the Chair to report to the Board meeting later in the month.
    • The remaining planned audits—Student Records (Apprenticeships), Procurement and the 2024/25 Follow-Up—were scheduled for April to May 2026, with completion expected by June/July.
    • Overall, 18 of the 34 planned audit days had been delivered and progress against the Plan was on track.

Assurance Review – Payroll, Benefits & Expenses

This review was to provide assurance over the effectiveness of controls governing payroll and expenses, including pensions, new starters, changes, deductions, leavers and exceptional payments.

Areas of good practice identified included:

• • • Payroll checklist completed monthly.
    • Net pay report analysed and line by line analysis accounting for variances.
    • Pre-payment run approved by appropriate signatories.

The audit also confirmed that key payroll controls operated effectively, including monthly payroll checklists, variance analysis and pre-payment approval processes.

The Committee noted that payroll represented the college’s largest area of expenditure and that the audit had identified no high- or medium-priority findings, with only one low-priority recommendation relating to strengthening approval requirements for expense claims outside policy. In response to questions, the P/CEO provided assurance that the claim in question, whilst outside the policy, had been properly recorded and authorised. Management had responded to the recommendations and the Audit provided Substantial Assurance, with controls assessed as Good in both design and application.

A further recommendation related to fully implementing iTrent functionality for expenses, mileage monitoring and driver checks, to improve efficiency and reduce manual processing risks. iTrent remained the sector-wide preferred system for payroll, as the application linked to the Teachers’ Pension Scheme. However, whilst frustrations continued around some modules, the implementation of the expenses module would take place.

Resolved: That the reports be noted.

Mr. Godsmark left the meeting.

04/26. Audit Recommendation Tracking Report (Appendix Agenda Item 11)

The Committee reviewed the Audit Recommendation Tracking Report (previously circulated), noting progress of recommendations against target achievement dates and seeking assurance where actions had not met target dates.

• • • Cashless System Implementation (March 2022). The Committee noted that a request to the IPS software provider had been reinstated, with a revised target completion date of March 2026.
    • Corporate Governance (March 2024). The recommendation on formalising Guided Governor Conversations had been completed.
    • Information Management (June 2024). The introduction of an annual Data Inventory and ROPA audit remained not implemented. The EDoF advised that documentation was reviewed periodically but did not propose introducing a separate annual review cycle; this was agreed by the Committee.

05/26. Risk Register and Board Assurance Framework (Appendix, Agenda Item 10)

The Committee reviewed the 2025 – 2026 Risk Register and Board Assurance Framework (previously circulated).

The highest-ranked risk remained planned defunding of AGQs in 2026/27 (FBO26); the Senior Leadership Team had set out short-term curriculum mitigations for September 2026 and medium-term planning pending “V Levels”. The P/CEO explained that the biggest risk continued to be the lack of clarity from the government around this issue. The Minister had recently mentioned the possibility of a delay in withdrawing funding. However, a formal announcement was awaited.

Campus capacity to meet demand (Board 13, formerly FBO23) was ranked the second highest risk; actions included the new Construction Centre at the London Road Campus, space-utilisation audits, feasibility studies, repurposing of space and continued engagement with the Department for Education (DfE/LocatED), to accommodate anticipated growth. In response to questions, the P/CEO and EDoF explained that the college was currently curriculum and capacity planning for 2026/27 and indicated the college could accommodate the anticipated growth. However, the college would face capacity challenges in September, should it be necessary to run additional groups in some provision areas, particularly at the London Road Campus.

Joint 3rd ranked risks were:

• • • E3 High Needs support not appropriately funded (FBO16); the Committee noted the local authority pressures and a gap between funded E2 places and potential EHCP demand; action focused on continued engagement with local councils.
    • Material data breach / cyber-attack (ARC02); controls included GDPR compliance, Sophos protection, Multi Factor Authentication (MFA) for staff and students and Cyber Essentials certification. At the previous meeting (Au Min No 2925 refers), the Committee had observed that securing the services of a specialist audit provider to provide assurance to the Board on the college’s cyber security arrangements was a priority and requested that the college progress this.

The Committee also discussed how the Board could achieve assurance regarding the mitigation of risks around the college’s use of Ai, considering its fast-evolving nature. The P/CEO suggested that the next pre-meeting risk briefing update the Committee and other Board members of the college’s approach to the use of Ai, including progress on mitigating actions. It was also suggested that an assurance report on the outcome of the college’s latest penetration testing exercise also be presented at this meeting.

Action: Items to next meeting

The Committee confirmed that major risks above appetite had clear, time-bound actions and assigned SLT owners, with escalation markers present for the top items.

Resolved: RECOMMENDED TO BOARD that the Risk Register be approved.

ACTION: Report to Board

06/26. Irregularity and Fraud

None reported.

07/26. Risk

The Committee agreed that the risks relevant to the Committee have been appropriately identified and the management actions reported were effectively mitigating these risks.

08/26. Date of Next Meeting – Wednesday, 17 June 2026 from 5.30 p.m. to be held at the London Road Campus.

The meeting concluded at 6.54 p.m.