WIGAN AND LEIGH COLLEGE: GOVERNING BOARD Audit/ Visitors: Internal Auditors Ian Falconer Grant Thornton Richard Houghton Victoria Kelly

Transcription

1 MEETING OF AUDIT COMMITTEE Minutes DATE 5.30PM, THURSDAY 10 MARCH 2011 VENUE BOARD ROOM, N BLOCK, PARSON S WALK, WIGAN CAMPUS ATTENDANCE: Committee Members: Governors External Co-optee Ex Officio Principal to the Governing Board Vice Principal, Finance and Resources Director of Enterprise and Partnerships David Rogers, Ian Harrison Liz Shea Alan Stephenson Bridget Patmore Ian Dempsey Richard Waterfield Cath Hurst Simon Nixon Nicola Meredith Visitors: Internal Auditors Ian Falconer Grant Thornton Richard Houghton Victoria Kelly Financial Statements Stephen Bower KPMG Auditors Helen Knowles The opened the meeting for business at 5.30pm. Item The confirmed that the meeting was quorate. 1 CONSULTATION WITH THE AUDITORS Italics denote absence The reminded the Committee that this item gave an opportunity for the Internal Auditor to be present without representatives of College Management in attendance. No one present had any issue to raise and the Internal Auditors had indicated to the that they also had no issues to raise. The Principal and Vice Principal joined the meeting 2 APOLOGIES Alan Stephenson, Stephen Bower, Helen Knowles, Richard Houghton, Nicola Meredith and, for late arrival, from Ian Falconer and Victoria Kelly. Committee members noted that the agenda had been arranged to accommodate their late arrival. 3 MINUTES OF THE MEETING HELD ON THURSDAY 2 DECEMBER 2010 were accepted, with one amendment, as a correct record and were signed by the. 4 MATTERS ARISING - The spoke to his actions sheet, which, with one amendment, was accepted. 5 INTERNAL AUDIT TENDERING The Vice Principal, Finance and Resources, gave a verbal report. Committee members noted: progress in the tendering process, via the Crescent Purchasing Consortium (CPC) framework; possible dates for interviews, to be confirmed; and the proposal that a member of the Audit Committee should be invited to attend these interviews. Page 1 of 6

2 the background of the CPC; advantages of using the CPC framework; and providers on the framework, including the current internal auditors. 1. that the report should be accepted; and 2. that the should be invited to the interviews for the internal audit service. ***** ACTION: Vice Principal, Finance and Resources 6 ANNUAL CYCLE OF AUDIT COMMITTEE BUSINESS Items for March Terms of Reference of the Committee - annual review The spoke to this item and indicated the changes which had been made to the previous version. that the Terms of Reference of the Audit Committee should be accepted and presented to the Governing Board for formal approval. ***** ACTION: 6.2 Best value/value for money exercise The Vice Principal, Finance and Resources spoke to his paper. Committee members noted that: this item is reported annually to the Committee; exercises to promote internal efficiencies are now reported to the Skills Funding Agency (SFA), through the Efficiency Measurement Model (EMM); the College has made significant improvements in efficiency and value for money, partly through revised procurement processes; and other significant savings were related to the catering and cleaning contracts and more competitive quotations for other external contracts. There was a discussion on these issues, on the capital investment made by the cleaning contractor and on the format and significance of aspects of the EMM return. that the report should be accepted. 7 RISK MANAGEMENT 7.1 Risk Register Update The Vice Principal, Finance and Resources, spoke to the Risk Register, focusing on the key risks. Committee members noted: shortfalls in targets for numbers and income in some areas; positive progress in the disposal of Railway Road; actions to generate activity and income and also to make savings on payroll and non-pay items; international income, which was on target; an expectation that, in the current year, the income related to Libya was unlikely to affected by events there, though uncertainties remained for future years; and the new tendering process for banking arrangements. Page 2 of 6

3 Members asked questions, which were answered satisfactorily, and the Committee suggested two amendments. There was a discussion of the key risks, including the impact of reduced student numbers and income and the actions taken or planned to mitigate the associated risks. that the report, as amended, should be accepted. Ian Falconer and Victoria Kelly joined the meeting at 5.22pm 8 FINAL INTERNAL AUDIT REPORT, GREATER MANCHESTER PENSION FUND VISITS TO CONTRIBUTING BODIES Update to include two recommendations retained on the Audit Implementation Plan The Vice Principal, Finance and Resources, gave a verbal report and referred to the Audit Implementation Plan. Committee members noted: actions taken to change College procedures and to expedite the provision of information to the pension fund; improved communications to encourage staff to submit claims promptly; and termly reviews of part-time hours implemented and made clear in the relevant procedures. that the report should be accepted. 9 AUDIT IMPLEMENTATION PLAN The spoke to his paper which showed progress on the implementation of internal audit recommendations. The Committee noted: the recommendations completed since the last meeting and those which were not yet due for completion; the recommendations related to Asset Inventory and Replacement, which had been retained on the Plan; and the progress reported on these recommendations and the further actions planned in relation to them. There was a discussion and it was: 1. that the report should be accepted; and 2. that the recommendations related to Asset Inventory and Replacement should be retained on the Plan. ***** ACTION: 10 INTERNAL AUDIT reports from Visits 1 and Curriculum planning and course costing the good overall arrangements to plan, monitor and manage curriculum provision and viability; the strengths in curriculum planning and course costing, compared to practice elsewhere; the significance of the College s strengths and performance in this key area; and that: Page 3 of 6

4 the importance of strong curriculum planning and course costing in times of financial constraint; and the reassurance provided by the report. Two amendments were requested and agreed. that the report, subject to agreed amendments, should be accepted Debtors the good overall arrangements to identify, record and manage debtors; the minimal level of bad debt which was written off; the strengths identified, including those in the review of requests for invoices and the College s comprehensive debt collection procedures; areas for development and recommendations made; and that: the efficiency of processes related to learner fees; proposals to increase the electronic transfer of data; the level of bad debt written off and its distribution; improvements, including those in international debt management; the cost effectiveness of some debt-collection measures; the possible involvement of academic course leaders in debt management in their areas; the sources of funding available to students in debt; issues of debt and insurance in relation to the public sector; the likely impact of the recession on debt levels; and changes planned and undertaken in debtor processes. One amendment was requested and agreed. that the report, subject to the agreed amendment, should be accepted Marketing the recent increase in the College s use of electronic media; the range of research undertaken; the areas for development and recommendations made in relation to the need for an overall marketing strategy, the consistent use of research information, the measurement of the impact of marketing expenditure and the need for action plans which are aligned to strategic objectives; and that: Page 4 of 6

5 the changes and developments already under way; the need to be competitive; the significance of the recommendations and the follow-up activity to be undertaken; and the need for a review of the timescales and for early action in response to the recommendations made. 1. that the report should be accepted, and 2. that the Director of Enterprise and Partnerships should be invited to the next meeting of the Audit Committee. ***** ACTION: 10.4 Risk Management the effective operation of the key risk-management controls; the roles of the Strategic Management Team and the Audit Committee in relation to risk; the significant progress made in risk management in recent years; and that There was a discussion on issues the absence of any recommendations at this time; and the need to maintain a dynamic and challenging approach to risk management. that the report should be accepted Anti-Fraud and Corruption the College s good arrangements to plan and manage fraud and corruption risks; the range of positive practices identified; the areas for development and recommendations made in relation to the need for improved communications with staff on fraud and whistle-blowing; and that the communication developments already under way; possible future actions and communication channels; the implications of the Bribery Act; and recent external examples of issues in relation to overseas activities. Page 5 of 6

6 1. that the report should be accepted, and 2. that the agenda for the first meeting in the academic year should include an item on the implications of the Bribery Act and potential concerns related to overseas activities. ***** ACTION: and Vice Principal, Finance and Resources 11 TRAINING/DISCUSSION SESSION Structures of Governance Ian Falconer and Victoria Kelly gave a verbal presentation. Committee members noted governance issues in the sector, uncertainty created by change in both regulatory and departmental structures; concerns over confidential compromise agreements with senior staff and the associated risks; the delayed Education Bill and its implications for Further Education; proposed increases in freedom and reductions in regulation for corporations and colleges; likely reductions in the numbers of colleges, as a result of mergers and acquisitions; sector funding issues and their impact; strengths in the College s management of data, in comparison with reports of poor practice elsewhere; uncertainty over the Joint Audit Code of Practice; features of the Carver model of governance and examples in Further Education; and varied methods of reporting. the advantages and disadvantages of both the Carver model and the extensive use of committees; possible contacts with a college or colleges using different models of governance; possible changes in the proposed Code of Governance and in the Instrument and Articles; and possible further debate at the Strategic Workshop. 12 ANY OTHER BUSINESS There was a discussion on the possible involvement of members of the Audit Committee in interviews related to new banking arrangements. After consultation with the internal auditors, it was felt that this posed questions of potential conflicts of interest and it was: Resolved; that members of the Audit Committee should not take part in interviews related to new banking arrangements. There were no items of Any Other Business. 13 DATE AND TIME OF NEXT MEETING Thursday 30 June 2011 at 5.30 pm at the Wigan Campus The declared the meeting closed at 7.20pm. Signed Page 6 of 6