APPROVED DRAFT
MINUTES OF THE MEETING OF THE AUDIT COMMITTEE
HELD ON 18 SEPTEMBER 2014
Present
Fiona Armer
Peter Clark
Derrick Palmer
Janet Tyas
Governor
Governor
Governor
Governor (Staff)
The quorum for the meeting was three Members.
In attendance
Ron Hill
Denise Cheng-Carter
Derrick Jones
Rachel Pearson
Clerk to the Corporation
Vice Principal (Finance and
Resources)
KPMG
KPMG
The meeting was held in the Boardroom, Calderdale College and started at 4.45pm.
1. Apologies
1.1 Apologies were received from Sarah Jones.
2. Appointment of Chair and Vice Chair of the Audit Committee 2014/15
2.1 Sarah Jones was nominated (JT) and seconded (FA) for the office of Chair of the
Audit Committee.
RESOLVED [AC 15/14]
The Audit Committee resolved to appoint Sarah Jones as the Chair of the Audit
Committee for the year to 31 July 2015.
2.2 Fiona Armer was nominated (PC) and seconded (JT) for the office of Vice Chair
of the Audit Committee.
RESOLVED [AC 16/14]
The Audit Committee resolved to appoint Fiona Armer as Vice Chair of the Audit
Committee for the year to 31 July 2015.
2.3 In the absence of Sarah Jones, Fiona acted as Chair for the meeting.
3. Declaration of Interests
Audit Committee: 18 September 2014
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3.1 The Chair reminded Members to declare their interests as and when necessary
on the agenda.
4. Minutes of the Meeting of the Audit Committee held on 12 June 2014 and
any matters arising
4.1 The minutes were agreed as a true and correct record and were duly signed by
the Chair.
4.2 As matters arising
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New reporting standards (SORP) have now been issued for colleges and
universities introduction in the financial year 2015/16, using the financial year
2014/15 as the comparator year;
Financial benchmarking data for colleges had now been circulated by KPMG;
The Clerk to the Corporation informed that the revised Whistleblowing Policy
and Procedure is now on the College website;
With respect to the progress of the Gender Balance thematic review, the Vice
Principal informed that learner data would be reviewed for 2013/14 and there
would be particular scrutiny by Curriculum Managers in the forthcoming
College self-assessment process for 2013/14. In addition there is promotion
of key events aimed at addressing gender imbalance and new MIS reporting
to aid monitoring;
The Vice Principal informed that the Health and Safety Executive was
satisfied with the College’s response to the specific concerns raised. The Vice
Principal added that the initiative to review Health and Safety practices was
now being extended throughout the College;
Further to reflections on the College’s Risk Register, samples from a number
of colleges were circulated for interest. The Vice Principal informed that more
expansive commentary had been added to the College Risk Register to aid
Members. Governors believed the College Risk Register was now very good
and was an important aid to Audit Committee understanding.
5. Determination of Any Other Business
5.1 There were no items of ‘any other business’.
6. Audit Committee Terms of Reference and Workplan 2014/15
6.1 The Clerk to the Corporation presented the written report, which included the
terms of reference for the Audit Committee and the related workplan for the
period 2014/15.
6.2 Members focused on the aspect of para 4.1 of the terms of reference regarding
‘governance’ and queried whether a review of governance, including decision
making and governance structure, should be included.
(Derrick Jones joined the meeting at 5.05pm)
6.3 Members supported this approach and wanted to interpret the ‘sources of
assurance’ theme for the meeting on 12 March 2015 to address this topic.
6.4 Members suggested that the flexibility to pursue a ‘deep dive’ on an identified risk
should be remembered during the year. This would provide similar benefits to
thematic reviews but be derived from the College Risk Register.
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6.5 Derrick Jones (KPMG) commended the thematic review approach used by the
Audit Committee as innovative and effective audit practice.
RESOLVED [AC 17/14]
The Audit Committee resolved to note the Audit Committee terms of reference and
to approve the Audit Committee workplan 2014/15.
7. (a) Internal Audit Service Annual Report : Year ending 31 July 2014
7.1 Derrick Jones (KPMG) presented the Internal Audit Service Annual Report : Year
ending 31 July 2014 and highlighted the opinion
‘the College has adequate and effective risk management, control and
governance processes to manage the achievement of its objectives. We are also
satisfied that, based on the work completed, management has implemented
adequate arrangements in respect of economy, efficiency and effectiveness’
7.2 36 out of 38 audit days were delivered, with the two contingency days not utilised.
Derrick Jones highlighted two matters
 the review of work place learning resulted in a ‘requires improvement’
opinion. Following management actions, it was expected that the next
internal audit review would demonstrate improvements;
 the governance review remained to be completed and, following
Members consideration and request, was expected by 30 September
2014. The Clerk to the Corporation added that, on receipt of the internal
audit report, he would be leading a structured review of the new
governance arrangements.
RESOLVED [AC 18/14]
The Audit Committee resolved to recommend the Internal Audit Service Report :
Year ending 31 July 2014 to the Board for approval.
(Derrick Jones and Rachel Pearson left the meeting at 5.23pm)
7. (b) Review of Performance – Internal Audit Service (2013/14)
7.3 Using the criteria approved by the Audit Committee, a review of the performance
of KPMG as internal audit service providers for the year to 31 July 2014 was
undertaken.
7.4 Members believed that the key performance indicators had been achieved (with
the exception of the completion of the governance review at the time of the Audit
Committee meeting). Members believed that appropriate professional relations
and contribution had been maintained.
RESOLVED [AC 19/14]
The Audit Committee resolved to record that KPMG had achieved an adequate
standard as the Board’s internal audit service for the period to 31 July 2014.
(Derrick Jones and Rachel Pearson re-joined the meeting at 5.30pm)
7. (c) Determination of Performance Indicators – Internal Audit Service for the year
to 31 July 2015
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RESOLVED [AC 20/14]
The Audit Committee, noting the proposal of 36 audit days and a fee of £17,640
plus VAT, resolved to approve the performance indicators to be applied to KPMG
as internal audit service providers to the Board for the year to 31 July 2015.
8. Risk Management Annual Report 2013/14 and Updated Risk Register
(Janet Tyas declared her interest as a member of staff in the College External Funding
team)
8.1 The Vice Principal presented the written report and reviewed each corporate risk.
Points arising from this process were
 Re Work Place Learning, monthly claims are now rising to a monthly average of
£1.9m
 Re Adult Skills Funding, there are continuing concerns regarding changes to
Government policy;
 Members suggested that in the process of monitoring risks it could be helpful for
Members to have an improved understanding of the intentions of key competitors
to Calderdale College;
 Members requested an opportunity to consider ‘deep dive’ themes at the next
meeting of the Audit Committee (27 November 2014);
 Members were pleased to note that a College I.T. network health check had been
commissioned (Strategic risk 6 – service excellence)
8.2 Members commended the quality of reporting on risk management together with
the format and content of the revised risk register.
RESOLVED [AC 21/14]
The Audit Committee resolved to approve the Annual Risk Management Report
2013/14 and endorse the revised Risk Register 2014/15.
9. Audit Recommendations and Actions (Composite Report)
9.1 The Vice Principal presented the written report which informed that five low
priority recommendations had been implemented, two recommendations had
been partially implemented and four recommendations (two low priority and two
medium priority) remained to be implemented.
9.2 Members recognised that the use of ProMonitor I.T. operating software was
important for the effective implementation of a number of recommendations and
requested an introduction to ProMonitor as a aspect of governor development
e.g. a session on the forthcoming Strategic Development Day in November 2014.
RESOLVED [AC 22/14]
The Audit Committee resolved to note the College management progress in
addressing the audit recommendations.
10. Internal Audit Strategy and Annual Plan 2014/15
10.1 Derrick Jones (KPMG) presented the proposed Internal Audit Strategy and
Annual Plan 2014/15. He explained that the planned assumed 36 audit days
plus 2 audit days for contingencies. The audit fee for 2014/15 will be £17,640 for
36 days plus outlays and VAT.
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10.2 Members discussed the timing of a review of marketing and, in conclusion,
confirmed their support for 2015/16.
10.3 Members requested a final review of the Internal Audit Strategy and Annual Plan
2014/15 by KPMG in the light of the revised Risk Register for 2014/15.
RESOLVED [AC 23/14]
The Audit Committee resolved, subject to final amendments to the documentation,
to recommend the Internal Audit Strategy and Annual Plan 2014/15 to the Board for
approval.
11. Date and Time of Next Meeting
11.1
The next meeting of the Audit Committee will be held on 27 November
2014 (4.45pm). The Principal (as Accounting Officer) will be invited to this
meeting with respect to the financial statements for the year to 31 July 2014 and
management letter.
Aide Memoire: (i) ; reference to (learner-focused) thematic reviews; improving learner achievement;
ProMonitor and learner data; audit plan priorities and risk; tutors and deployment (audit
recommendation); Health and Safety Executive response; learner gender balance; and (ii) very good
(iii) current thematic review underway.
The meeting closed at 6.20pm.
Ron Hill
Clerk to the Corporation
Calderdale College
Audit Committee: 18 September 2014
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