Agenda item

This report provided an update on audits in schools, following a report earlier this year (March 2020) to Corporate Committee, which set out the finance and audit training available to schools. The briefing in March also outlined that any school that had a nil-assurance outcome for two consecutive audits would trigger a call from the Assistant Director for Schools and Learning and the Head of Audit to the Head Teacher and Chair of Governors to support the school to move to a more positive outcome without delay. The report was introduced by Head of Audit and Risk Management, along with the AD for Schools and Learning, as set out in the agenda pack at pages 33-36.

Nineteen schools were audited in the financial year 2019/20 and thirteen schools were assigned either substantial or adequate assurance scores and six were assigned limited or nil assurance. Two schools received nil-assurance during 2019-20. The AD for Schools and Learning advised that for one of the schools the issue seemed to be around the loss of the business manager, and a new business manager had now been put in place. It was anticipated that when the school was re-audited in 2020/21, significant improvement would be secured.

The Committee was advised that the other school that received nil-assurance was a primary school with an OFSTED rating of “good”. The reasons for the nil assurance were related to the fact that the school has been through a period of turbulence that included falling rolls and a change in leadership, including an interim head for a period of one term from September 2020. With a new Head Teacher and a new business manager in place, a much more positive outcome was anticipated when the school was next audited.

The following was noted in discussion of this report:

1. In response to a request for further assurance from the Chair, the Head of Audit advised that he was broadly happy overall with the direction of travel but acknowledged that it was important to continue to work with schools to secure ongoing improvements. The Head of Audit commented that there were some concerns about the impact COVID-19 on schools and the impact this could have in terms of ongoing engagement on audit training etcetera.
2. The Committee sought clarification around whether the sum of money   available to schools for a local authority led SLA was separate from the finance and audit training on offer. In response, the Committee was advised that these were two separate processes. The Head of Schools and Learning confirmed to the Committee that schools were taking up the offer for audit training and that the overall response had been positive.
3. The Committee raised concerns with the example of Stamford Hill School, which had seen a rapid decline in its governance standards and had subsequently closed, following a nil-assurance audit score. The Committee enquired whether a similar set of circumstances could befall either of the two schools that had received nil-assurance in 2019/20. In response, the Head of Schools and Learning advised that she was confident that both schools were making significant improvements and that there was no cause for concern around either school becoming ‘the next Stamford Hill’.

RESOLVED

That the Committee noted the report