audit committee - 12 March 2025

 Prior to the meeting, the P/CEO provided a risk management briefing on risks associated with the outcome of the OFSTED Inspection.

The risk briefing provided an update on potential risks identified and assurance through mitigating actions being taken by the college to manage the risk.

L. Glover joined the meeting.

01/25.  Declarations of Interest

There were no pecuniary declarations of interest.

02/25.  Draft Minutes of the Meeting Held 27 November 2024 (Appendix, Agenda Item 3)

The Minutes of the meeting held on 27 November 2024, were agreed as a true record. 

03/25.  Reports from Internal Audit Service (Appendices a & b, Agenda item 5)

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

1. Follow Up of Audit Recommendations

The IAS reconciled the Trackers to the internal audit reports and was able to confirm that the correct Assurance Level and number of recommendations had been recorded for all audits.  The IAS was also able to provide adequate assurance over the monitoring and implementation of recommendations.

The Audit provided Adequate Assurance.

b.       Internal Audit Progress Report – March 2024

• Validera continued to grow and welcome new team members, including Subject Matter Experts in risk, governance and compliance and education sector funding streams. Validera had strengthened its participation in the DFK network, attending the recent UK and Ireland Conference in Belfast. In February 2025, it had launched a joint venture with fellow DFK members HB&O Ltd, the new company Validera HB&O Ltd would provide an external audit solution to the education sector.
• The Internal Audit Strategy (IAS) and Audit Plan had been approved by the Committee at its November 2024 meeting and there had been no amendments in the intervening period.
• In response to a question, it was confirmed that all Audit Briefs for the remainder of the 2024/25 year had been issued and start dates and timeframes agreed with management. It was expected that all audits would be completed in accordance with the agreed budgeted days.
• Validera encouraged clients to follow its LinkedIn page where important sector updates were signposted. Mr Glover drew the Committee’s attention to the latest content and posts.
• Currently there were no individual findings arising from work undertaken which were considered significant enough to impact negatively upon the overall Annual Opinion in respect of the college’s risk management, governance and control processes.

Resolved: That the reports be noted.

04/25.  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 from the P/CEO where actions had revised target completion dates.

The Committee was assured as to the reasons for these changes and that this did not present any material risk to completion of the recommendations. 

05/25.  Risk Register and Board Assurance Framework (Appendix, Agenda Item 10)

The Committee reviewed the 2024 – 2025 Risk Register (previously circulated).

The P/CEO explained the risks identified and mitigating actions being undertaken.  Whilst no risks were rated ‘red’, the strategic risk (FBO26 - Planned defunding of AGQs) remained ‘high amber’ at this point.  Whilst it was likely that some elements of this risk would be mitigated for 2025/26, because of actions taken by the current government, the risk that some subjects would still be defunded remained.

In terms of other risks identified, the P/CEO explained that –

• FBO 11 - Teacher and Non-Teacher Pay Awards exceed planned/affordable increases: 2024-25. The National Joint Council had recommended colleges make the pay award offered to teachers, though the award has not been accepted by all teaching unions. The support staff pay award has been agreed with Unison in the Joint National Council.  The award consists of 3.5%, backdated from 1 September 2024, with an additional uplift to 5.5% from 1 April 2025.  Additional funding to support the award has been promised by DfE following the settlement of the Sixth Form College Association judicial review, though the exact allocation is still to be confirmed. The risk of industrial action this year can now be terminated as the NEU have accepted the offer and the NASUWT did not secure a mandate for strike action at the college.
• FBO 24 - Non-Pay Costs materially exceed budget or sustainable levels - 2024-25. Some costs had increased both because of an increase in students and a rise in material costs. The college had also made provision for the rising cost to the college of exam entries which was over-pessimistic, bringing non-pay costs broadly in line.

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

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

ACTION:  REPORT TO BOARD

06/25.  Irregularity and Fraud

None reported. 

07/25.  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.

08/25.  Governance Pack – Draft Policies for Recommendation to Board

 The draft policies (previously circulated) had been reviewed by Senior Leadership Team. 

The Treasury Management Policy would be amended slightly to reflect that the Education & Skills Finding Agency would cease on 31 March 2025, with its responsibilities transferred to the Department for Education. 

Resolved:  RECOMMENDED TO BOARD that the following policies be approved -

1. Treasury Management Policy
2. Whistleblowing Policy

ACTION:  REPORT TO BOARD

09/25.  Date of Next Meeting – Wednesday, 18 June 2025 at 5.30 p.m.

The meeting concluded at 6.06 p.m.