Audit and Risk Committee

The Audit and Risk Committee will advise the Board and Accounting Officer on:

• the strategic processes for risk control and governance and the governance statement;
• the accounting policies, the accounts and the annual report of the organisation including the process for review;
• planned activity and results of both internal and external audit; adequacy of management respond to issues identified by audit activity including external audit’s management letter;
• assurances including outsources or shared service partners, relating to the management of risk and corporate governance requirements for the organisation;
• proposals for tendering for internal or external audit services or for purchase of non-audit services from contractors who provide audit services;
• counter-fraud and bribery policies, whistle-blowing processes, and arrangements for special investigations;
• and consider other topics as defined by the Board.

Current committee members (as at 16 May 2017) are:

• Diana Garnham - chairperson and CITB trustee
• Maureen Douglas - CITB trustee
• Chris Richardson - co-optee
• Richard Plumb - co-optee

2018

February, May, June, September, November

2017

March, May, June, October

Attendance 

February 2018

1.  The Committee received an update on Strategic Risks and were provided with an overview of the process taken to refresh them as part of the Business Planning process.  Updates were also received in relation to operational risks and reviewed the updated Change Programme Risk Register.
2. The Committee received internal audit reports on Income, Procurement, Accounts Payable, Cash & Banking, Learner Support & Welfare, Performance Management & Reporting, a Follow Up of Payroll, an Investigation and Go Construct.  A revised approach to reporting recommendation implementation and follow up was also agreed.
3. The National Audit Office (NAO) presented their Audit Planning Report incorporating their key focus areas. The Committee also discussed the impact of the 15-month financial year, including the impact on reserves, remuneration and the Audit Fee.
4. The Committee reviewed Strategy documents and the supporting policies relating to Report Concerns, Capital Expenditure, Information Security, Safeguarding, Equality & Diversity, and Health, Safety & Environment. These were approved in principle, subject to a number of minor amendments.

October 2017

1. The Committee received an update on Strategic Risks and a summary of operational risks.  The Committee also discussed risks in relation to CCTV and how these were being managed and reported.  It also received a paper on Change Programme risks from the Change Director and agreed on the principle of setting up a new Change Board.
2. The Committee received reports on Legacy Funds, Payroll and an investigation, together with a briefing note on Accounts Payable from the Head of Audit, Risk & Governance.  An oral update was also provided by the NAO, and discussions held relating to the treatment of Charitable Expenditure and the External Audit Fee.
3. A paper was provided giving an overview of Strategic Policies, summarising which should come to the Board or one of its sub-committees for approval.  The need for a consistent corporate format was agreed.
4. A paper was presented on the Impact of the Charity Governance Code; it was agreed that this should be included on the agenda for the Board.

June 2017

1. Prior to the commencement of the formal meeting, members were provided with the opportunity to tour the offices at Thurmaston, and were given an overview of the work undertaken by the teams based there.
2. The Committee received an update on the Annual Report & Accounts and the organisation’s Key Strategic Risks from the Head of Audit, Risk & Governance.
3. The Committee discussed the results of a Counter-Fraud Self-Assessment exercise and received Internal Audit reports on Investments, Research, CCTV, Trust Funding, IT Hardware, IR35 and Levy Administration.  The Committee were also joined by the Head of Apprenticeships to discuss the approach to the forthcoming audit review in his business area.
4. The Committee also agreed a revised meeting schedule, including topic areas planned to be reviewed at each meeting, received an update on Investment Management and an update on the current vacancy for a co-opted Committee member.

May 2017

1. The Committee received and discussed the Draft Annual Report & Accounts.  Amendments to some information relating to the Strategic Priorities, the presentation of the Governance Statement and reserves was agreed.
2. The Committee also agreed to the finalisation of the Annual Report & Accounts for the CITB Chair and the Committee Chair to sign.

March 2017

1. An update from the Head of Audit, Risk and Governance on risk management through 2016 showed the approach to risk management, the consolidated information, strategic and operational risks facing CITB, together with the 2017 Plan. The document would feed into the Annual Governance statement. The draft Annual Report and Accounts were reviewed and would look back towards 2016 and provide detail on CITB’s future offer.
2. The Risks Register was being well managed and the number of risks on the register reducing. Opinion was also provided on the Internal Audit 2016 Annual Report, concerning the system of internal control operating throughout the year. In 2017 changes would be implemented to show high risk internal audit areas against business critical areas to increase transparency and identify strategic risks.
3. The Committee received reports on funds governance; the Welsh Language Scheme together with Employer Portal expenditure regarding monitoring, development and review of process, controls in place and procurement. The introduction of ISO27001 and implementation of the General Data Protection Regulations (GDPR) would support information governance; the team would further utilise the COBIT5 Frameworks (IT Governance Framework).
4. The National Audit Office provided their update as to the progress and status of the end of year audit of the financial statements for the year ended 31 December 2016.

November 2016

1. The Committee received an update from the Head of Audit, Risk and Governance on Risk Management, which reviewed the organisations key ‘strategic risks’ including delivery of change, consensus, funding management and fraud. This was followed by the Internal Audit Update; approval of the Internal Audit Charter; review of the composition of the Committee and any vacancy with recommendations for training opportunities.
2. A draft of the Annual Report and Accounts including the Annual Governance Statement were reviewed.
3. The National Audit Office presented details of the end of year audit review which would specifically focus on identifying areas of material risk due to fraud in revenue recognition or management override control.

September 2016

1. The Head of Audit, Risk and Governance presented a report concerning the ‘Assurance on the Adequacy of Risk and Issue Management’. The Committee also were advised of the use of in respect of fraud. 
2. The Apprenticeship Levy and Brexit were creating anxiety in construction and therefore CITB should look to provide information to the industry through the CSN Network and other avenues. The immediate risks associated with the Apprenticeship Levy and the CITB Levy had been managed through the proposed transition package.
3. The Committee were informed of how internal audit breadth of scope was managed to meet requirements changing throughout the year and how this contributed to development of a culture of continuous improvement. They also received reports on specifically discussing information governance, competition law and procurement controls.

June 2016

1. The CITB external audit for 2016 would be undertaken by the National Audit Office. A copy of the updated error schedule 2015 Accounts was presented for information.
2. The Committee reviewed the risk management process which included a newly constituted internal risk group. They also discussed the progress report on change portfolio management, in which projects are sense checked against the ‘future offer’, and the shared key accountabilities and principles. Members would receive a regular progress/status report on change portfolio management; and a ‘deep dive’ would be undertaken into one project to track through assumptions/process/assurances, with the presence of the Change Director.
3. The internal audit and control update report was reviewed; it was noted that a key aim would be to achieve transparency of end-to-end process in procurement-contract management. The Committee would be updated on any delays or overdue actions.
4. An overview of the structure for polices and the underpinning values would be provided and the Board invited to comment on the strategic stance.
5. The Committee was advised of the findings from the government’s Apprenticeship Study which was awaiting government clearance for publication (expected to be July). The study examined how the Department for Business, Innovation and Skills (BIS) had been managing the process towards the Apprenticeship Levy.
6. The recent version of the HM Treasury's (HMT) Audit Committee Handbook provided a useful guide in delivering best practice, reviewing Committee arrangements and development.

March 2016

1. The Committee received an overview of risk management within the year and discussed the organisation’s risk maturity cycle and the culture of embedding the risk management approach. Members reviewed the strategic risk dashboard and discussed the importance of reflecting upon all the high risk areas.
2. Members reviewed the outcomes of internal audit work and the Head of Internal Audit’s opinion on the overall assessment for the 2015 financial year that controls were satisfactory. Amendments to plan were agreed and process confirmed.
3. The external auditors (Moore Stephens) confirmed that they had no significant outstanding issues on the accounts and would anticipate recommending to the Comptroller and Auditor General (C&AG) that he should certify the 2015 financial statements with an unqualified audit opinion, without modification, on the basis of any outstanding matters being resolved satisfactorily; there were few recommendations and actions and these have been resolved.
4. The Committee reviewed the governance statement 2015 which was shorter, compliant and more dynamic in its narrative than previously.
5. The draft Annual Report and Accounts 2015 was reviewed and a number of recommendations made with advice sought on timeframes for the laying before Parliament, given purdah restrictions.