Audit 09.03.16w

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MINUTES OF THE AUDIT COMMITTEE MEETING HELD ON MONDAY 16 MARCH 2009 PRESENT: Mr Mohamed Isap (Chair), Mr Alan Cotton, Mr John Whittaker. IN ATTENDANCE: Mrs Jane McCann (Director of Finance), Mr Greg Wilson (PwC), Miss Jenny Lee (PwC), Mr Trevor Rees (KPMG), Miss Caroline Jones (KPMG), Mrs Jean Tracy (Clerk). Introduction In the absence of Mr Steve Wolski it was agreed that Mr Mohamed Isap would chair the meeting. 1. APOLOGIES Apologies were received from Mr Steve Wolski, Mrs Julie Della Cuna, Mr Janaid Qureshi, Mrs Emma Casson (KPMG), Miss Helen Knowles (KPMG) and Mrs Sarah Jewett (PwC). 2. MINUTES OF THE LAST MEETING The minutes of the meeting held on 1 December 2008 were accepted as a true and correct record and were duly signed by the Chair. 3. MATTERS ARISING There were no matters arising not covered elsewhere in the agenda. 4. INTERNAL AUDIT REPORTS: Mr Trevor Rees presented the reports. He informed the Committee that two were “satisfactory” and two were “good” and that the audits had not raised any areas of concern. It was agreed that the Committee would review those reports were the grading was “satisfactory” – Marketing and Procurements & Payments. Audit 09.03.16w.doc Page 1 of 5 (i) Marketing 2008/09 The Auditors noted that this area was developing within the College following the appointment of the Strategic Marketing Manager. The report identified two recommendations ...

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• Publié par: Shuwyor
• Nombre de lectures: 102
• Langue: English

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Audit 09.03.16w.doc

Page 1 of 5

MINUTES OF THE AUDIT COMMITTEE MEETING

HELD ON MONDAY 16 MARCH 2009

PRESENT:

Mr Mohamed Isap (Chair), Mr Alan Cotton, Mr John Whittaker.

IN ATTENDANCE:

Mrs Jane McCann (Director of Finance), Mr Greg Wilson

(PwC), Miss Jenny Lee (PwC), Mr Trevor Rees (KPMG), Miss Caroline Jones

(KPMG),

Mrs Jean Tracy (Clerk).

Introduction

In the absence of Mr Steve Wolski it was agreed that Mr Mohamed Isap would

chair the meeting.

1.

APOLOGIES

Apologies were received from Mr Steve Wolski, Mrs Julie Della Cuna, Mr

Janaid Qureshi, Mrs Emma Casson (KPMG), Miss Helen Knowles (KPMG)

and Mrs Sarah Jewett (PwC).

2.

MINUTES OF THE LAST MEETING

The minutes of the meeting held on 1 December 2008 were accepted as a

true and correct record and were duly signed by the Chair.

3.

MATTERS ARISING

There were no matters arising not covered elsewhere in the agenda.

4.

INTERNAL AUDIT REPORTS:

Mr Trevor Rees presented the reports.

He informed the Committee that two

were “satisfactory” and two were “good” and that the audits had not raised any

areas of concern.

It was agreed that the Committee would review those

reports were the grading was “satisfactory” – Marketing and Procurements &

Payments.

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(i)

Marketing 2008/09

The Auditors noted that this area was developing within the College following

the appointment of the Strategic Marketing Manager.

The report identified

two recommendations for improvement – both were medium priority – which

the auditors acknowledged was because the College was still in the process

of developing its marketing strategy.

The report also identified three areas of

good practice.

The

Committee

considered

the

management

responses

to

the

recommendations and noted the actions taken to date.

As usual, the

Committee will monitor the College’s progress against the recommendations

in the Audit Action Point Status Report.

The Committee noted the importance of an agreed marketing strategy.

It also

asked how the College monitored the effectiveness of the external agencies

with which the College was involved in marketing activities.

The Committee

was told that the Strategic Marketing Manager had presented a paper to

Policy & Resources Committee and that measures to assess effectiveness

are to be introduced.

The way in which this is reported have yet to be agreed

and the Committee will be kept informed of progress.

It was agreed that the Strategic Marketing Manager will be invited to the next

meeting and that the calendar of business of the Committee will be amended

to include an annual report.

Action:

CB/Clerk

Trevor Rees informed the Committee that the recommendations would be

followed up next year but that this would look at the processes in place and

not specifically value for money, unless asked to do so.

(ii)

Procurement & Payments 2008/09

The audit had looked specifically at the tendering/quotation process, approval

levels, etc. and was focussed at the process level.

The report identified two

medium and two low priority recommendations together with four areas of

good practice.

The Committee asked whether the 5/22 instances of non-compliance with

financial procedures was high.

It asked about and received information on the

ways in which staff are reminded of the financial procedures.

The Committee

discussed commitment accounting.

(iii)

Financial Planning & Budgetary Control 2008/09

The overall opinion was ‘good’ and there were no recommendations made in

respect of the processes reviewed.

Five areas of good practice were

identified and the Committee noted that there were no outstanding

recommendations from previous years.

(iv)

Strategic Planning & Performance Indicators 2008/09

The overall opinion was ‘good’ and there were no recommendations made to

improve the overall control environment.

Five areas of good practice were

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identified and the Committee noted that there were no outstanding

recommendations from previous years.

5.

LSC AUDIT OF WORK BASED LEARNING (WBL)

The Committee was reminded that the College had previously received a

qualified audit opinion.

The Committee was pleased to note that the audit

undertaken in January 2009 had resulted in an unqualified opinion and only

one medium priority recommendation.

It was agreed that the items on the Master Plan would be taken before the

next agenda item.

However, for ease of reference the minutes are recorded

in agenda item order.

6.

RISK MANAGEMENT UPDATE

The report was reminded of the monitoring and evaluation of the corporate

risks, as identified and discussed at the last meeting.

In view of the current

situation regarding LSC capital funding, the report covered the issue of the

risk surrounding the Master Plan.

The document contained the Master Plan AiP Risk Register which had been

sent to the LSC as part of the review of projects overall, together with the HE

Building Risk Register which was prepared as part of the Employers agent

monthly report.

The HE Building Risk Register covered the key risks, the key strategies and

their control – college structure and change control, site and statutory

undertakings, funding and finance, review and discussion.

The FE Master Plan Risk Register also contained the costed risks.

The paper

provided the Committee with information on the current capital funding

situation with the LSC and it was noted that the FE Master Plan was

discussed at every Executive, Board and Policy & Resources Committee

meetings.

The Committee was informed of the lobbying which had and which will

continue to take place.

A member of the Committee asked whether the

College had considered PFI (Private Finance Initiative) and was told that this

had been raised at the Board meeting on 13

th

March 2009 and that the

College had been asked to look into this option.

It was strongly suggested

that if the College were to go down the PFI route, it would need professional

support to understand the complexities.

In answer to a question from the Committee, the College confirmed that it

would not be subject to claims from the contractors.

The Committee was also

reminded that the LSC had encouraged colleges to develop and increase the

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size of their projects.

Some areas of the sector were now looking into taking

legal action against the LSC.

The Committee asked about the timescales and was told that colleges were

waiting for the report from Sir Andrew Foster which was due to be issued on

28

th

March 2009.

However, it would be early summer before any decisions

would be made and thus the College would expect longer and longer

timescales.

7.

MASTER PLAN UPDATE

(i)

(i)

FE

The paper updated the Committee on the summary costs, grant rates, College

contribution and timescale.

It also covered the current capital situation – the projects which had been

approved, the number of colleges and capital requirement for the 79 colleges

which had received Application in Principle (AiP) and the 65 colleges who had

submitted proposals.

The report provided the Committee with information on

the report which is being undertaken by Sir Andrew Foster, the prioritisation

exercise, the lobbying which is taking place by the AoC and others and the

likelihood that the LSC will require projects to be re-tendered.

..

The Committee noted the amounts of spend and committed costs for phases

3, 4 and 5 – motor vehicle, core and refurbishments.

The Committee also

noted that information from the LSC indicated that there would be no

additional money for compensation and that this would come out of existing

capital funding.

Design team work was continuing but the Committee was informed that this

was at the design team members’ own risk.

(ii)

(ii) HE

The report updated the Committee on the current position, the agreed name

of the building and funding for the building.

The cost plan was also included

and showed that the project was within budget.

The Committee noted the

reasons for the significant reduction in the contingency and the spend to date.

8.

PERFORMANCE INDICATORS – 2008/09 UPDATE ON PROGRESS

The Committee considered the report and noted that it had been amended as

requested and now included information on cut off points.

The College was asked for and gave an explanation of the implications of not

hitting the targets, e.g. for Train to Gain.

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9.

AUDIT ACTION POINT STATUS REPORT

The Committee noted the content of the report and the current status of the

agreed actions.

10. AUDIT SCHEDULE 2008/09 UPDATE

The Committee noted the updated schedule.

11. ANY OTHER BUSINESS

There were no items of any other business.

12. DATE OF NEXT MEETING

The next meeting of the Audit Committee will take place on Thursday 11 June

2009 at 5.30pm in FM13.

Signature: …………………………………………………

Date: ………………………………………………………