Notes of a meeting of Audit Committee members

held on Monday 16 November 2015 at 4.45 pm

in Room H102a, City Centre Campus

Julian Young / Chair
Andy Furse
In attendance
Heather Cross
Alastair Campbell / Clerk to the Corporation
RSM
Karen Williams
Richard Bott / RSM
Mazars
Julian Tucker / Executive Director of Finance (EDoF)

The two audit committee members met prior to the meeting privately with the auditors.

1. / Apologies / ACTION
Apologies were received from Carol Davey of Mazars and from Paul Davis, external, co-opted committee member. Paul Davis had conveyed his resignation from the committee in tendering his apologies. It was noted that the meeting was not quorate and as a result no formal recommendations could be made to the Corporation. The meeting would be recorded as simple notes from Committee members.
2. / Declarations of Interest
None
3. / Confidentiality of Items
None
4. / Minutes of the meeting of the Audit Committee held on 13 July 2015 and any matters arising
These were noted, but formal approval would need to await a quorate meeting.
5. / Risk Management
This report had been given to the October Corporation meeting apart from one new risk concerning business continuity planning at SVC having been added to the register and one removed concerning a negative outcome following the QAA review, as this had now taken place positively. The annual report on risk was reviewed and it was noted that the College has a clear policy on risk identification and management and that the risk register is regularly reviewed by Management and Governors.
6. / Internal Audit Reports
Funding Assurance
The Internal Auditor commented that this report was the type of activity conducted by the SFA if they chose to carry out a funding audit. The results was amber/red and gave some warnings about necessary actions. Similar issues had been found at other colleges but clear timetables for students were required from the start of term in order to verify activity. The issue It was noted that ProSolution would now address the matters concerned and the matters reviewed had been issues at Norton Radstock.
Key Financial Controls
With agreement this audit had been delayed to post-merger. The reports showed that the teams in question were operating appropriately and substantial assurance could be taken.
Follow up report
Reasonable progress with implementing recommendations was noted.
Progress report
It had been agreed that the HR report would be carried out again with further testing as agreed with the college.
It was considered that the final total for audit days in 2015/16 should not be agreed until the meeting on 7 March 2016.
7. / RSM – Internal Audit Annual Report 2014/15
The annual report was received.
8. / Members Report and Financial Statements
A full set of accounts had yet to be circulated as this was dependent on decisions made this evening. Richard Bott explained that the merger with Norton Radstock required a good will figure to be inserted in the college’s accounts as a liability was being taken on. A fair value for the land and buildings had yet to be agreed. His recommendation was that a figure needed to be provided which was based on a professional valuation.
Audit Committee members asked that a valuation be expedited and that in the meantime the practicability of gaining a valuation through the local authority might also be explored. There should still be time to obtain this and make a recommendation to the Corporation at its meeting on 14 December 2015.
9. / Mazars – External Audit Management Letter and Letter of Representation
This was circulated. It was expected that an unqualified opinion would be issued.
10. / Audit Committee – Draft Annual Report 2014/15
The document was circulated and members opinions were sought. The final document would be considered for recommendation by the Committee at a quorate meeting.
11.
12. / Any other business
Governors asked about the resourcing of introducing new IT systems and whether there was sufficient. Julian Tucker commented that new appointments had recently been made which should ease any pressures shortly.
Date of Next Meeting – 7 March 2016
The date had been agreed previously and was noted. [Subsequent to the meeting a special committee date was agreed for Monday 14 December 2015 at 4.00 pm.]