Agenda item

Report of the Head of Internal Audit and Risk Management.

The Board received a late, separately circulated, report of the Head of Audit and Risk Management prepared in accordance with the HEFCE Code of Practice for Accountability and Audit providing Governors with details of the Internal Audit work undertaken at the School during the academic year ended 31 July 2016.

The Head of Audit and Risk Management reported that three audits had been undertaken and all had resulted in a moderate assurance rating. This had informed the Head of Internal Audit’s opinion that “the Guildhall School’s systems of risk management, control and governance, and economy, effectiveness and efficiency are generally robust and can be reasonably relied upon to ensure that objectives are achieved”.

The Board were informed that work on the 2016/17 Internal Audit Plan had already commenced and would feed into next year’s opinion.

The Chairman stated that he was pleased to see that an audit of ‘Satellite Operations’ was planned for 2016-17.

The Chairman of the Audit and Risk Management Committee highlighted that this report had been circulated to the Audit and Risk Management Committee who were content that this was consistent with the information reported to them throughout the year. This report would be formally received by the Audit and Risk Management Committee at their next meeting.

A Co-opted Governor questioned whether Internal Audit looked at the quality of the data the school provided on an annual basis. The Principal reported that the statutory data returns to HEFCE were regularly checked and audited. This had highlighted that the conversion of hourly paid staff to FTE had been under reported previously and would affect the School’s draw down funding it was therefore important that this was now looked at in greater detail. The Chairman reported that the noticeable difference in the 2017 data (which would now be collated according to the correct formula) would therefore have to be explained.

The Chamberlain reported that the implications of the under reported data on staff would need to be fully understood. If this incident could be isolated and fully explained there would be no further cause for concern. If, however, further issues were uncovered, data quality would need to be looked at more widely by Internal Audit.

The Chairman requested that a report updating the Board on this matter be submitted to the next Board meeting.

RESOLVED – That, the Board note the work of that Internal Audit have undertaken and the Head of Internal Audit and Risk Management’s opinion that “the Guildhall School’s systems of risk management, control and governance, and economy, effectiveness and efficiency are generally robust and can be reasonably relied upon to ensure that objectives are achieved”.