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Minutes
Meeting of the Audit Committee
Wednesday 6 March 2013 at 9.30am
Principal’s Office
Present :
Mr Malcolm Cameron
Mr Bruce Adams
Mr John Petitt
Chairman
Governor
Governor
Apologies:
Mr Mike Steyn
Mr Bill Grady
Mr Graeme Clarke
Governor
Governor (Principal)
Mazars LLP (Internal Auditors)
In attendance:
Mr Peter Williamson
Mr David Marshman
Mrs T Reeve
Mazars LLP (Internal Auditors)
VP Resources
Clerk to the Corporation
1/13
Chair’s Agenda Item
The Chair and members discussed the operation of the College’s risk and
financial controls system without officers of the College present. It was
confirmed that the internal auditors did not have anything that they wished to
bring to the attention of the meeting. Mr Williamson informed the meeting
that Mazars had just completed a Learner Numbers Audit, (this matched the
format of the SFA audit of the ILR); nothing fundamental had been
discovered and the report would be brought to the next Audit Committee
meeting. A specialist audit of ICT and related security had also just been
undertaken; feedback to follow at the next meeting.
2/13
Apologies for absence
Apologies were received from Mr Steyn.
3/13 Notification of any other business
There was none.
4/13 Notification of any interests
There was none.
5/13
Minutes of the Audit Committee meeting held on 28 November 2012
The minutes were approved and signed by the Chairman as a correct record.
6/13 Matters Arising
 BCA Growth Strategy (page 5 minute 55/12).
It was confirmed that this would be considered at the BCA Governors
Strategy Conference, 12-13th April 2013.
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7/13 Internal Audit Visit Reports, January 2013
Mr Williamson talked members through the draft internal audit reports from
the January 2013 visits of the Internal Audit Service (IAS).
 Governance and Risk Management
The audit on the two areas of corporate governance and risk management
had produced substantial assurance on the effectiveness of internal controls.
There had been 2 ‘housekeeping’ level recommendations on Governance
(relating to enhancing governor training and the possible introduction of egovernance), and 1 ‘housekeeping’ recommendation on Risk Management
(for risk to be a standing item on SMT agendas). The Clerk and the VP
Finance & Corporate Services confirmed that the internal audit had been
useful as it had provided challenge and suggestions regarding best practice
in the sector. The meeting went onto consider Risk Management in more
detail and it was agreed that more involvement of all staff was desirable for a
more embedded Risk Management process; this was being taken forward as
a training element during inset days 2012/13.
 Follow-Up
The meeting was pleased to note that of the 39 recommendations previously
carried forward: 4 had now been superseded; 23 had now been fully
implemented; 8 had progress underway; and only 4 had not yet been
implemented. It was agreed that there had been a concerted effort by
College management to clear outstanding recommendations. The meeting
considered the 12 outstanding recommendations (8 of which were in
progress) which were still carried over for completion. It was confirmed that
these 12 recommendations would be brought back to the next meeting of the
Audit Committee under the standing agenda item Register of Outstanding
Audit Items (in chronological order). Members asked for timescales for
completion to be added to future versions of the Register of Outstanding
Audit Items report. The following ongoing recommendations were
considered in more detail:
Procurement Officer
Members sought, and were given, further clarification on the possible
benefits of a College Procurement Officer (perhaps as a shared resource
with another College). It was noted that this would be considered further
under the agreed Value for Money Strategy during the 2013/14 Budget
Cycle. The meeting agreed that a procurement officer could impact on
several fronts eg. VFM, sustainability, carbon footprint, recycling.
Equality & Diversity
The meeting noted the proposed timescale for the establishment of a
College Equality & Diversity Group as Summer 2013. Mr Petitt informed the
meeting of the Investors in Diversity scheme (DM to investigate further).
Resolved:
i) That the internal audit reports, on Governance & Risk Management
and Follow-Up, January 2013, be approved.
ii) That the Register of Outstanding Audit Items (in chronological
order), with timescales for completion to be brought to the next
Audit Committee meeting, (as a standing agenda item).
iii) That the VPF&CS should investigate the Investors in Diversity
scheme and how it could fit with the College’s Investors in People
status.
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8/13
Risk Management Strategy
The VP Finance and Corporate Services (VPF&CS) presented a BCA Risk
Management Strategy for consideration. This document aimed to ensure
that the College was in compliance with risk management best practice and
with the requirements of the Turnbull guidance. The Risk Management
Strategy also set out the current processes and responsibilities for risk
management in the College; including how the College defined, managed,
controlled and assessed risk. Members were reminded that the driver for
risk management was the College’s Strategic Plan. Members sought clarity
on what was meant by ‘significant stakeholder concern’ and it was agreed
that this included a subjective and emotive element which sometimes made it
more difficult to quantify than simply financial or Teaching & Learning
associated risks; i.e. ‘what kept people awake at night’.
The meeting considered the concept of Risk Appetite and VPF&CS sought
confirmation that the meeting was content with the level of risk appetite
outlined at paragraph 7; that when a raw risk score was at 6 or 9, this was
outside the comfort levels of risk and so further mitigation was required. The
meeting agreed that this level of Risk Appetite should be considered further
and agreed at Corporation level.
Resolved:
That the Risk Management Strategy be taken to Corporation for
approval (20 March 2013), with a specific highlight on gaining full
Corporation approval of BCA’s defined Risk Appetite.
9/13
Risk Register
The meeting noted the Risk Register which reflected the BCA Corporate
Strategy. The VPF&CS informed the meeting that there would be some
further change to scores after discussions at Senior Management Team (1
March 2013). It was noted that risk 2.6 ‘Failure to maintain cash balances’
should be colour coded as red (risk score of 9). The meeting considered all
the risks which remained ‘red’ after mitigation and it was agreed that any
risks which scored 9 or higher after mitigation would require additional
mitigation in order to further reduce the final risk level. The meeting
discussed whether a new category should be added to the Risk Register to
reflect externally driven risks over which the College had no control eg. the
FRS17 pension liability.
The Risk Register was NOTED.
Resolved:
i) That the Risk Register should be updated to reflect SMT changes
and recirculated to Audit Committee members by e-mail.
ii) That the white text headers should be changed to a black font.
iii) That the revised Risk Register to be taken to Corporation (20/03/13).
iv) VPF&CS to consider whether the Risk Register adequately reflected
external risks.
10/13 Date of next meeting
Wednesday 26th June 2013, 9.30am.
Changed after meeting to Wednesday 19th June 2013 at 9.30am.
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11/13 Any Other Business
There was none.
The meeting closed at 10.45am.
Signed...........................................................
Date..............................................................
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