06 10 08 Audit mins

Bolink

Description

MINUTES OF A MEETING OF THE AUDIT COMMITTEE HELD ON MONDAY 6 OCTOBER 2008 AT 8.00am PRESENT: Trevor Cooper – Chair Delroy Brown Tony Grady Ralph Tonge IN ATTENDANCE: Margaret Allen – Interim Deputy Principal David White – Interim Vice Principal Corporate Andrew Hartley – Director of Funding and Financial Resources Val Mattinson – Director of Corporate and External Affairs Ian Falconer – Grant Thornton Will Simpson – Grant Thornton Claire Kay - Clerk to the Corporation 1. MEETING WITH AUDITORS WITHOUT MANAGEMENT PRESENT The members used this time to consult with auditors on issues arising from the agenda. Members noted the concerns expressed by the IAS team regarding their performance presented on the agenda under item 11. There were issues identified in the report which the IAS had not had the opportunity to discuss with management. Members agreed that the issues relating to performance would be discussed under item 11 and Tony Grady offered himself to facilitate an open debate outside the meeting if required. The Chair asked auditors for their experience of the attendance of the Principal at Audit Committees around the sector. IAS reported a discussion at the 157 group asking that exact question, a straw pole showed a 50:50 split of Principals attending and not attending, Grant Thornton reported a split more like 70:30 of Principals attending in their client base. Members discussed the merits of the Principal attending and ...

Sujets

• management
• risk management

Informations

• Publié par: Thawyag
• Nombre de lectures: 25
• Langue: English

Extrait

_____________________________________________________________________________________________________

__

Page 1 of 5

Created by Claire Kay

MINUTES OF A MEETING OF THE AUDIT COMMITTEE

HELD ON MONDAY 6 OCTOBER 2008 AT 8.00am

PRESENT:

Trevor Cooper – Chair

Delroy Brown

Tony Grady

Ralph Tonge

IN ATTENDANCE:

Margaret Allen – Interim Deputy Principal

David White – Interim Vice Principal Corporate

Andrew Hartley – Director of Funding and Financial Resources

Val Mattinson – Director of Corporate and External Affairs

Ian Falconer – Grant Thornton

Will Simpson – Grant Thornton

Claire Kay - Clerk to the Corporation

1.

MEETING WITH AUDITORS WITHOUT MANAGEMENT PRESENT

The members used this time to consult with auditors on issues arising from the agenda.

Members noted the concerns expressed by the IAS team regarding their performance

presented on the agenda under item 11.

There were issues identified in the report which

the IAS had not had the opportunity to discuss with management.

Members agreed that

the issues relating to performance would be discussed under item 11 and Tony Grady

offered himself to facilitate an open debate outside the meeting if required.

The Chair asked auditors for their experience of the attendance of the Principal at Audit

Committees around the sector.

IAS reported a discussion at the 157 group asking that

exact question, a straw pole showed a 50:50 split of Principals attending and not attending,

Grant Thornton reported a split more like 70:30 of Principals attending in their client base.

Members discussed the merits of the Principal attending and whether it jeopardised the

independence of the Committee.

On balance it was agreed that the Principal should attend

but if necessary could withdraw from the discussions if it would benefit the independence of

the Committee.

The confidential minute from the session at the last meeting was reviewed and agreed by

members, and signed by the Chair.

Members of College management joined the meeting at 8.15 am.

The Chair welcomed

David White to the meeting.

2.

APOLOGIES FOR ABSENCE

Apologies for absence had been received from Graham Charlton and Geoff Hall.

3.

DECLARATIONS OF PERSONAL INTEREST IN AGENDA ITEMS

There were no declarations of personal interest in the agenda items.

4.

MINUTES

The minutes were amended to indicate the Principal as being in attendance.

The minutes

of the meeting held on 30 June 2008

were confirmed and signed.

_____________________________________________________________________________________________________

__

Page 2 of 5

Created by Claire Kay

5.

MATTERS ARISING

a)

Student union financial strategy

RT informed members that the increased activities reported to the last meeting by

the Student Union Liaison Officer had been well received by students and had

resulted in an increased uptake of NUS membership which in turn increased the SU

income for the year.

b)

Declaration of personal interest

The Clerk updated the Committee on the outcomes of the discussion with the

previous committee Chair and the Principal with regard to his position of Trustee of

the Public Governance Institute set up by KPMG.

It had been agreed the Principal

take up the invitation to be a trustee of this new group but to decline any

remuneration as a result of the position.

The previous Chair had accepted that the

position would be beneficial to the College as a networking opportunity and for the

development of best practice within the organisation.

Members noted and

supported the action taken by the previous Chair.

b)

Corporation papers

IAS confirmed that they were now receiving corporation papers for information, and

had received copies of the Due Diligence reports.

6.

REPORT FROM THE AUDIT AND RISK MANAGEMENT GROUP

Members received an update report on the work undertaken by this group.

All items would

be discussed separately on the agenda.

The report was noted

7.

RECOMMENDATION TRACKING EXCEPTION REPORT

The report used to track the progress to date of audit recommendations was presented to

members.

Members discussed overdue items and their risk rating.

The summary of

outstanding items was reviewed.

A revised schedule would be circulated to members

following the meeting.

Members discussed the contents of the report in detail and were

satisfied that recommendations were being monitored and addressed appropriately.

The report was noted.

D Brown joined the meeting at 8.30am.

8.

INTERNAL AUDIT REPORTS

Support Services for Learners

The aim of the audit was discussed and it was concluded that the overall strategic view as

to whether the financial cost of the services provided was matched with the benefit to the

learner of the College providing this service, still needed to be addressed.

A more in depth

review was required from a strategic position and it was agreed for this to be returned to the

next meeting.

The conclusions of the internal audit undertaken found the operational areas

which could contribute or impact on student achievement and the learner experience were

robust and concluded controls were suitably designed and operating with sufficient

effectiveness to provide reasonable assurance that the related risk management objectives

were achieved during the period.

Train to Gain

Members noted this was a high risk, high growth area for the College and although four

recommendations had been made in the report, similar issues had been seen at other

colleges in the sector especially forecasting and margins.

Members noted the strategic

decision to invest in the area of Train to Gain and the overall operating position of the area

in 2007/08.

The steps being undertaken to improve the overall margin and reduce the

organisational risk of this provision were discussed.

Members noted the LSC PFM report

on Train to Gain would be available for the next meeting.

The conclusions reported by the

_____________________________________________________________________________________________________

__

Page 3 of 5

Created by Claire Kay

IAS were that the controls were suitably designed and operating with sufficient

effectiveness to provide reasonable assurance that the related risk management objectives

were achieved during the period subject to the recommendations made.

Learner number systems

The report provided good assurance in the key area of learner number systems outlining a

robust system. The report also commented on the good progress made against

recommendations for improvement in last year’s report.

The conclusions reported by the

IAS were that the controls were suitably designed and operating with sufficient

effectiveness to provide reasonable assurance that the related risk management objectives

were achieved during the period.

Ofsted Inspection follow-up

The report approved by the Committee at the last meeting was presented outlining the

progress made against recommendations from the Ofsted inspection in 2005.

IAS

concluded that the College had appropriate mechanisms in place for implementing and

monitoring progress of recommendations.

Data Security

IAS reported to the Committee the significant progress which had been made in the area of

IT.

The report made several recommendations to build on the existing good practice in

data security within the College but none were high priority.

Members questioned

management about the location and security around sensitive data and data protocols and

requested a cost benefit analysis on the use of encryption to improve data security.

The

conclusions reported by the IAS were that the controls were suitably designed and

operating with sufficient effectiveness to provide reasonable assurance that the related risk

management objectives were achieved during the period.

Merger

The Committee received the report presented to the Corporation meeting in July on the

decision making process on merger.

This report was an additional review requested in

relation to the identification by the Committee that a risk review on merger should be

undertaken.

Members received the report and noted it was considered helpful to the Board

at the time it was presented.

The Committee resolved:

to adopt the IAS reports considered by the Committee.

9.

DUE DILIGENCE

The Committee considered the key headlines from the due diligence report on ncn and how

the risks identified were being mitigated in year.

The report was noted.

10.

IAS ANNUAL REPORT 2007/08

The draft Annual Report for 2007/08 was presented by Grant Thornton.

Members noted

this report formed an important part of the assurance mechanism for the statement on

internal controls within the annual financial statements.

The report concluded that controls

were suitably designed and operating satisfactorily in the areas of risk management,

corporate governance and internal system of controls, with the exception of the monitoring

and management fees in connection with Train to Gain.

Operational assurance was

recorded as good in 5 out of the 7 areas in accordance with LSC guidance, and adequate in

the area of managing risk in association with merger and economical and efficient use of

resources.

Members noted the increase of days and cost from budget was due to the additional review

with regard to merger.

Members requested the following changes to the report:

•

Text be altered to reflect the correct position with regard to merger

•

Identify specifically the additional work, time and cost of the merger review

_____________________________________________________________________________________________________

__

Page 4 of 5

Created by Claire Kay

•

Alter textual commentary on pages 8&9 including reviewing the fundamental

matters.

A final draft would be presented to the Committee at the meeting in November.

11.

INTERNAL AUDIT SERVICE

A report was tabled outlining the assessment of the performance of the IAS by

management.

The Chair requested this be discussed with the IAS team and a further

report brought to the Committee in November.

Grant Thornton withdrew for this item.

The Committee discussed the re-appointment of Grant Thornton taking into account the

discussion at the last meeting regarding merger and the timing of a re-tender process.

Members considered the financial regulations and the current duration of the Grant

Thornton contract.

The Committee resolved:

•

that the re-appointment of Grant Thornton as the College’s Internal Audit

Service for 2008/09 be recommended to the Corporation;

•

that the process for re-tendering the Internal Audit Service in accordance with

the Audit Code of Practice and the College Financial Regulations would

commence during 2008/09 for a new contract term starting 2009/10.

The Committee discussed the involvement of members in the tendering and appointment

process for IAS and agreed that 2 members of the Committee (Chair plus Tony Grady),

Director of Finance and VP Corporate Services should form the panel to undertake the

process of appointment and report back to the Committee.

Members agreed the Principal

should not be involved in the process to ensure independence of the appointment.

12.

INTERNAL AUDIT PLAN 2008/09

The full year plan was presented to members building on the 6 month plan discussed in

June.

The plan covered the statutory requirements of the Audit Code of Practice and

outlined the number of audit days required to deliver the plan and the overall cost to the

College.

Members noted that proposed areas covered in the plan and discussed them in

relation to the overall risk to the College and the relevance areas had to Framework for

Excellence.

The Committee resolved:

to recommend the Internal Audit Plan for 2008/09 to the Corporation.

13.

RISK MANAGEMENT

The Committee received the Annual Review of risk management for 2007/08 noting the

changes in process for monitoring the mitigation of risks in year and the changes made to

the risk register in year.

The risk management strategy for 2008/09 was presented along

with the risk register.

Members questioned management about some of the detailed risks

around staffing, merger and insurance.

The Committee resolved:

•

to recommend the risk management strategy for 2008/09 to the Corporation;

•

to recommend the 2008/09 risk register to the Corporation.

14.

WHISTLEBLOWING POLICY AND PROCEDURE

A revised policy was presented to the Committee.

The policy had been revised following

an IAS recommendation and now reflected current legislation and best practise.

Members

discussed the relevance and use of this policy by students and requested a reference to

students within paragraph 1.3.

Members noted the means by which the policy would be

promoted to staff, students and stakeholders and encouraged the training of staff named as

_____________________________________________________________________________________________________

__

Page 5 of 5

Created by Claire Kay

a first point of contact to ensure appropriate use of the policy.

An amendment was required

to ensure consistency of contacts within the policy.

The Committee resolved:

to recommend the Whistleblowing Policy to the Corporation, subject to the

amendments noted above.

15.

COMMITTEE ANNUAL SELF ASSESSMENT

The Committee considered the self-assessment circulated prior to the meeting.

Members

discussed the evidence provided in the report and noted that although value for money

remained satisfactory additional reports had been received by the Committee in year, it was

noted that the KPI’s in Framework for Excellence would help quantify this for the

Committee.

Risk management was graded good due to the cancellation of the September

2007 meeting which resulted in the Committee being unable to perform their role in

overseeing the annual risk management review.

Although the Committee accepted the risk

management framework overall remained outstanding, members considered their duties in

this process were not fully carried out.

Members considered the Committee now had a high

level of expertise.

Members agreed their performance against the predetermined criteria

as:

•

Effectiveness

good

•

Risk management

good

•

Value for money

satisfactory

•

Decision making

outstanding

16.

CONFIDENTIALITY OF BUSINESS

No items were considered confidential.

17.

DATE OF NEXT MEETING

The next scheduled meeting was 26 November 2007.

Members had received for information the KPMG benchmarking data on college’s financial

performance for 2007/08 - it was noted this was for KPMG clients only.

The Chair closed the meeting at 10.00am.

SIGNED: ___________________________________________________

______

DATE:

_______________________________________________________

_