SWINDON COLLEGE CORPORATION
MINUTES OF THE AUDITCOMMITTEEMEETING HELD ON5 JULY2016
Members Present
Sarah Garrett (chair), Jo Kelly, Andrew Perrott,Philip Richmond, and Paul Sealey.
Also Present
Andrew Miller, Principal (part)
Nick Letchet, Vice Principal, Finance and Corporate Services
David Francis, Director of Student Services (part)
Penny Page, Director of HR (part)
Richard Smith, RSM, Internal Auditors
Chris Mantel, RSM, Financial Statements’ Auditors (part)
Alasdair MacDonald, Clerk to the Governors
The meeting commenced at 1600hrs in room P113, Phoenix Building
155-16APOLOGIES
Apologies for absence were received from Mutsai Hove-Bird. Apologies were also received from Louise Tweedie. The committee chair (SG) welcomed Richard Smith (RS) to the meeting.
SG noted that this would be the last Audit Committee meeting attended by Andrew Miller, Philip Richmond, and Paul Sealey. She thanked them all for their contributions to the work of the committee and wished them well for the future.
156-16DECLARATION OF MEMBERS’ INTERESTS
There were no declarations of interest in any specific items on the agenda.
157-16 GOVERNOR BRIEFING
No matters were brought to the attention of the committee.
158-16 MINUTES OF THE AUDIT COMMITTEE MEETING HELD ON 8 MARCH 2016
Document No 16/113 refers. The minutes were approved as a true record of the meeting and signed by the chair.
The following item was taken out of sequence.
168-16 FINANCIAL STATEMENTS’ AUDITORS’ PLANNING MEMORANDUM 2015/16
Document No 16/124 refers. SG welcomed Chris Mantel (CM) to the meeting. CM directed the committee’s attention to the Audit Plan for 2015/16, confirming that this covered the audit of Financial Statements as well the Regularity assurance engagement. He emphasized that the Governing Body was responsible for ensuring that all material risks not covered in the plan were brought to the attention of the auditors.
The audit plan was risk-based and CM highlighted briefly from Document No 16/124 the key perceived risks under the various headings shown. He reminded the committee that the college was required to be a ‘Going Concern’ for 12 months from the expected date of approval of the accounts. The impact of Area Review was an interesting variable in this regard. A brief discussion was held on the correct accounting treatment of the workshop redevelopment.
CM stated that the Board would need to take a decision on its treatment and application of the new accounting standard, FRS 102. NL explained that he had presented a recommendation to the Resources Committee, which in turn would make a recommendation to the Board at its meeting of 19 July 2016. NL agreed to send the relevant paper to Audit Committee members too. Making the necessary FRS102 changes would be laborious but a specialist team from RSM would provide assistance.
Action: NL
CM reminded the committee that the Regularity Self-Assessment Questionnaire needed to be completed and approved by the committee prior to the Board signing off the annual accounts.
Action: NL/JAM
CM guided members of the committee through Appendix E to his report which set out the Emerging Issues for the sector. The committee noted, in particular, the FE Commissioner’s annual report and his comments on governance. It was agreed that some of these matters might usefully be included in the proposed internal audit of governance in the 2016/17 audit plan.
Action: LT/JAM
SG thanked CM for a comprehensive report.
CM left the meeting at after this item.
159-16 MATTERS ARISING AND OUTSTANDING ACTIONS REPORT
Document No 16/114 refers.
Minute 49-16 Safeguarding Training – David Francis (DF) reported that dates had been agreed with the Lead Governor on Safeguarding to undertake the LSCB L3 training in Safeguarding
Minute 54-16 Public Value Statement – the Clerk (JAM) informed members that this would be emailed to the SMT for approval rather than waiting for the next SMT meeting.
Action: JAM
Minute 56-16 Audit Committee Annual Report – the Committee Chair (SG) and JAM had yet to meet to discuss a framework for the annual report but they would aim to do so before the next meeting of the committee.
Action: SG/JAM
All other actions had either been completed or were on the meeting agenda for further discussion.
a)Safeguarding Audit and Action Plan: Progress Report – Document No 16/114A refers. The committee noted that only two actions were outstanding in the plan developed after the SBC Safeguarding Audit. It was agreed that these would be carried forward as a requirement for the College’s new Principal to undertake, unless he had already done so. DF reported that other members of staff including himself had undertaken this training. It was agreed that DF would examine the case for some governors undertaking safer recruitment training too. Also, the desirability of Safeguarding appearing a standing item on Governing Body agendas would be considered.
Action: DF/JAM
DF had prepared a new Safeguarding action plan for 2016/17 and this would be brought to the attention of the committee at its next meeting.
Action: DF
Turning to the Safeguarding Accountability Questions, SG asked DF if he could amend the document to show definitive answers in the right hand column rather than further questions. DF agreed to bring the amended document to the committee at its next meeting.
Action: DF
b)Staff Satisfaction Survey – Document No 16/114B refers. Penny Page (PP) highlighted the key findings and told the committee that SMT had asked all managers to talk directly with their teams to elicit ideas about how some of the areas which were below AoC benchmark might be addressed. An action plan would be devised in response. AM reminded the committee that 2015/16 had been a challenging year with a restructuring exercise, merger talks with New College, the pending departure of the Principal, and the forthcoming Area Review, and staff morale undoubtedly had been affected.
The committee discussed both the key positive points emerging from the survey as well as the more negative points. Whilst an improvement in pay was difficult to achieve for most staff, the importance of ensuring recognition was given to staff for a job well done was agreed. The committee agreed also that staff needed to be confident that some action would be taken in response to this survey and members asked for an update on progress at its next meeting.
Action: PP
PP left the meeting after this item.
160-16 RISK MANAGEMENT
Document No 16/115 refers, introduced by Nick Letchet (NL). He referred to the two changes which had been made to the Risk Register since the committee last met. He suggested also that Brexit had introduced a new level of uncertainty for the sector generally.
The committee discussed the reasons for an upgrade in the level of risk of falling HE student numbers in 2016/17.The future potential of degree apprenticeships was agreed. Members noted that 16-18yr old recruitment was under pressure due to the high level of local competition, at a time when the cohort numbers were still falling.
161-16 RISK REVIEW: DISASTER RECOVERY – LESSONS FROM THE FIRE IN THE GEMINI BUILDING.
Document No 16/116 refers, introduced by NL.He summarized the two key review processes undertaken and the main lessons learnt. He directed the committee’s attention also to the two annexes to his report, namely a separate Evacuation Report prepared by the college’s Health and Safety Officer, and a risk assessment report prepared by the college’s insurers, Zurich.
In all, NL felt that a most thorough assessment had been undertaken and invaluable lessons learnt, whilst recognizing that the college’s procedures and their application by staff had been highly competent and appropriate in nearly all respects. Of particular value were meetings held with the fire crews involved and with the insurers. The Curriculum Area Manager had reviewed the incident fully with staff and some new practices were agreed.
NL updated the committee on the disciplinary process and outcome for the two students involved. He concluded his report by stating that there was a higher awareness of fire risk now and all areas of the college would be assessed thoroughly in the weeks ahead.
The committee thanked NL for a full report and members expressed their appreciation of the efforts of all staff involved both at the time of the incident and subsequent to it.
a)Lessons from Project Argus – Document No 16/116A refers. DF reported on 10 key issues which arose from the very impactful visit by the local counter-terrorism security advisers. His report summarized both current and new PREVENT initiatives being undertaken. The college’s Emergency Lockdown Procedures and Health and Safety Procedures had been reviewed and amended. At present, DF stressed that FE colleges generally and Swindon specifically were deemed to be low risk but a ‘lone wolf’ attack could never be discounted.
The committee discussed DF’s report in detail. It was noted that the specific meaning of each of the 4 Emergency Codes would be put onto the back of staff and student ID cards. The committee was pleased to note that testing of procedures by building would take place as soon as pagers had been delivered.
Members thanked DF for his report and for overseeing such a thorough process and supporting procedures.
162-16 INTERNAL AUDIT PLAN 2015/16: PROGRESS REPORT
Document No 16/117 refers. RS was pleased to inform the committee that, with the issue of the report on Key Financial Controls, all planned assignments for 2015/16 had been completed. There was one on-going report into IT which was due to be presented to the committee in 2016/17. No ‘High’ priority findings had emerged from any of the assignments.
163-16 AUDIT REPORTS
a)Key Financial Controls – Document No 16/118 refers. RS presented an overview of the key findings of this assignment which audited selected controls on Income and Debtors and Creditors and Payments only. There were five ‘Low’ priority findings with supporting actions. The committee noted that finding 2.1b. on Income and Debtors was not agreed by college management. This was discussed with RS and, based upon his assurance, members agreed the management response. NL reminded the committee that electronic sign-offs would be introduced when the new financial system came into operation for 2016/17.
b)Framework for Compliance with Legal and Regulatory Requirements – Document No 16/119 refers. RS reported that there were three ‘Medium’ priority findings and DF confirmed that all had been accepted and, indeed, already implemented. DF agreed that the finding that Partner Contracts did not make reference to the Prevent Duty was important and this had been remedied. The committee asked for a benchmarking report on this assignment to be presented at the next meeting.
Action: LT
c)Financial Planning, Budget Setting and Control – Document No 16/120 refers. RS informed the committee that a different approach had been adopted for this assignment for which the risk of the college failing to achieve its financial projections or to comply with financial guidelines had been the matter under review. The usual data surveys had been supplemented with staff interviews and the respective outcomes had been triangulated. RSM had found this approach informative for its audit practice. A clean bill of health was accorded to the college with no recommendations made.
RS told members that a partner within RSM always cross-checked an assignment where no recommendations were made and this had been done in this case.
164-16 DRAFT INTERNAL AUDIT PLAN 2016/17
Document No 16/121 refers. RS summarized the process undertaken in developing an internal audit assignment plan for 2016/17 and asked the committee to consider whether the areas selected were appropriate and whether they covered sufficiently the college’s key risks. He noted the earlier discussion with CM and agreed that a changed audit brief for Governance should be developed in line with the FE Commissioner’s comments on Governance, possibly with a different proposed timing too.
Action: LT/JAM
The committee agreed the proposed plan but asked that:
-Some consideration be given to the new Finance System within the Key Financial Controls’ audit; and
-That the timing of the audits ensured that an even spread of reports came to the committee; to this end, it was suggested that the Marketing assignment be brought forward.
Action: LT/NL
SG would recommend the Internal Audit Plan to the Governing Body for approval at its meeting on 19 July 2016.
Action: SG
165-16 MANAGEMENT ACTIONS FOLLOW-UP REPORT
Document No 16/122 refers. The committee noted that there was just one outstanding action, as already discussed – see minute 159-16 above.
Action: JAM
166-16 FRAUD, IRREGULARITY and WHISTLEBLOWING REPORT
No matters were brought to the committee’s attention.
Andrew Miller left the meeting at this point.
167-16 ANNUAL REVIEW OF THE IMPLEMENTATION OF THE COLLEGE POLICY FRAMEWORK
Document No 16/123 refers. The clerk to the committee (JAM) reported that only three policies had not been approved to date in accordance with the framework, namely the two policies relating to senior post holders and the Student Admissions’ policy. Jo Kelly informed members that the Student Admissions’ policy had been updated and was going to the SMT for approval. It would be brought to the Q&S Committee in early 2016/17.
JAM agreed to review progress with the senior post holder policies. He also agreed to add a new policy - the Sub-Contractors’ Fees Policy - to the list and to bring an updated report, showing the dates of the most recent reviews, to the committee at its next meeting. This report should be brought to the committee annually in future.
Action: JAM
a)Fraud Policy – Document No 16/123A was tabled.
The committee approved the Fraud Policy. The committee asked that a status report be brought to it on ‘academic fraud’ i.e. cheating and/or plagiarism in examinations/assessments.
Action: LP
169-16 INTERNAL AUDITORS’ ANNUAL PERFORMANCE REVIEW 2015/16 AND RE-APPOINTMENT
Document No 16/125 refers. The committee discussed the satisfaction ratings suggested by the Vice Principal, Finance and Resources.
The committee agreed to recommend to the Board the re-appointment of RSM as the college’s internal auditors for the academic year 2016/17.
Action: SG
170-16 LOOKING AHEAD
The committee asked JAM to initiate a search for a member of staff to replace Paul Sealey.
Action: JAM
The committee agreed also that an additional governor should be recruited to the committee.
Action: JAM
171-16 DATE AND TIME OF NEXT MEETING
The next meeting of the Audit Committee was scheduled in the draft meetings’ calendar for 4 October 2016.
The meeting concluded at 1800hrs.
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