Activate Learning Further Education Corporation

Transcription

1 Activate Learning Further Education Corporation MINUTES of a meeting of the Audit Committee held on 10 June 2014 at 5.30 pm in room A106 at Oxford City College Campus. Present: In attendance: C Jones (Chairman); B Grenville Jones, A King; S McCormick, Deputy Group CEO T Pease, Group Finance Director K Whife, Clerk to the Corporation R Bolt, Mazars M Cheetham, Baker Tilly 1. Apologies for absence 2. Declaration of interests, gifts and hospitality 3. Minutes, 11 March 2014 The minutes of the meeting held on 11 March 2014 were approved as a correct record and signed by the Chairman. 4. Matters Arising 5. Internal Audit (Baker Tilly) Items for recommendation to the Corporation The Committee considered the proposed internal audit operating plan for 2014/15. There was a suggestion that the plan s focus should be on learner support and issues that are directly for students benefit. A further suggestion was made that Saudi Arabia work should be included within the scope of the audit plan. The Committee discussed the general developments that have taken place to build on Board assurance. It was recommended that in relation to the setting up of a Risk Management Group and other assurance work across the Group, that the decision to recommend the approval of the audit plan to the Corporation should be deferred until the November 2014 meeting. 1

2 The Committee received the reports for IT governance, project management and the IBM project. IT governance Issues regarding the robustness of the whole system were highlighted Project management The Committee were informed of the need to consider the overall approach to project management in an increasingly dynamic environment. It was suggested that the Governor, Terry Watts, may be a useful link for project management. IBM project The value of a detailed project management audit was highlighted. That the draft Internal Audit Plan should be considered for approval at the November 2014 meeting of the Audit and Risk Committee That the Risk Management Group should consider risk across the Group at their next meeting To remove the sentence relating to the limitations of scope in the project management internal audit report To add the start date to the IBM project audit To approve the scope of the planned internal audit, with the revisions suggested. 6. External Audit (Mazars) Mazars presented the Audit Strategy Memorandum, which summarised the audit approach and highlighted significant audit risks and key judgements. The Committee s attention was drawn to section 5 of the report where Activate Enterprise is included in the fees for services. This is because they will be active in June The Committee were informed of FRS 102, The Financial Reporting Standard Applicable in the UK and the Republic of Ireland. It was suggested that there should be a briefing to the FE&GP Committee to outline the FRS102 model. To accept the Audit Strategy Memorandum To plan a FRS102 briefing with the FE&GP Committee 2

3 7. Teaching Staff Utilisation Items for decision by the Committee The Group HR Director presented her report, outlining that the review of the current method of monitoring teaching staff utilisation brings forward a number of conclusions: A regime of rigorous central monitoring of staff utilisation is not productive. There are other central controls, through the planning and budgeting process, which are more effective; Our Group model is for areas to have a good degree of autonomy and discretion, within a group framework. It is recognised that this comes with responsibility and accountability and we accept that there is some work to do in this area; Central control is therefore not our preferred approach, nor is it consistent with our values; Staff utilisation monitoring is however a useful tool that managers can and should use wherever appropriate to ensure fair and equitable workloads for all teaching staff; The Committee questioned how staff utilisation is being monitored. The Group CEO suggested that the measurement should be focused on impact and outcomes. The Committee agreed that measurement focused on outcomes are important alongside an emphasis on consistency across the Group. There was acknowledgement that there is work to be done to develop the framework that the required monitoring will be achieved through. It was recommended that the issues raised within the report should be captured in the HR strategy to ensure that work is focused in these areas. The Committee highlighted two options for taking forward the work on staff utilisation: to close the report with the view that there is further work to be completed to further understand staff utilisation measurement; or, to link to the required developments to the HR Strategy. The Committee agreed that the report could be closed if the issues highlighted are reflected in the HR strategy. To ensure that the issues highlighted in the report regarding the change of measurement in relation to staff utilisation is highlighted in the HR Strategy. To approve the recommendation that the current audit report is considered closed and that we ask the internal auditors to revisit staff resourcing again at an appropriate future point 8. Internal Audit Progress Reports An audit of Key Financial Controls: Fixed Assets; Cash and Banking; and Payroll was undertaken as part of the approved internal audit periodic plan for 2013/2014. The Committee reviewed the contents of the report. Concerns about unconsolidated items were raised. The Committee were informed that to help mitigate against this concern, a Financial Accountant is starting work in the finance team and that there are plans for 3

4 improved forms and training. The Committee were assured about these development, however would like to maintain an oversight of progress through the tracking log. To receive the internal audit progress report 9. Audit Recommendations Tracking Log The Committee reviewed the audit recommendations tracking log. That items marked as complete are removed from the register, and revised timescales for actions marked as in progress or outstanding be approved. 10. Risk Register and Action Plan for 2014/14 The Committee were updated on the Group s approach to risk management. The need to bring greater accountability of risk within the Committees was highlighted. An issue was noted whereby work around risk and audit at the Committees has been delivered apologetically. It was recommended that the importance of the risk register is emphasised to Committees. Plans to align the Risk Management Group with a lead link officer from each Committee were outlined. The Committee were positive about this level of assurance. It was suggested that Terms of Reference for the Risk Management Group should be developed at the Audit and Risk Committee. They should be consulted with so that they have the opportunity to feedback. The Committee ran through the Risk Register, focusing on those areas that are red (high risk). The risks relating to the Curriculum Quality and Standards Committee were discussed and it was questioned whether there is clear focus on the consequence of risk and how to mitigate against it. The broad remit of the Curriculum Quality and Standards Committee was flagged up as a potential issue. To receive the Risk Register To plan a review of the Committee s management of risk, before March Calendar of Meetings and Key Items To receive the calendar of meetings and key items 12. Committee Membership The Committee considered membership, noting that the current membership is low which leaves that Committee at risk of not meeting its quorum. It was recommended that a risk expert should be recruited. 4

5 That Committee members will circulate risk expert contacts to the Committee Chairman for consideration To identify an extra governor to be member of the Audit and Risk Committee Items for information 13. Use of College Seal The Clerk to the Corporation notified the Committee that the Company Seal was used once on 30 May 2014 for the signing of the Activate Enterprise Contractual Agreements. 14. Performance Report on the Internal and External Audit The Committee received an additional paper which outlined internal and external audit performance indicators. To receive the report as proposed. 15. Date of next meeting 5 th November 2014 Chairman... Date... 5