This document has been subject to redactions

Date

Wednesday 3 July 2024                                                                             

Time

9:00am

Attendees

Board

Susan Barratt

Sir Ian Bauckham CBE, Chief Regulator

Hardip Begol CBE

Mark Farrar

Cindy Leslie (V)

Dr Catherine McClellan (V)

Eileen Milner

Chris Paterson

Clare Pelham (V)

Matt Tee

Frances Wadsworth CBE, Chair

Ofqual

David Bowden, Executive Director, Finance and Operations

Tom Bramley, Executive Director, Research and Analysis

Daniel Gutteridge, General Counsel

Michael Hanton, Deputy Chief Regulator 

Catherine Large OBE, Executive Director, Vocational and Technical Qualifications

Dr Ian Stockford, Executive Director, Standards

Amanda Swann, Executive Director, General Qualifications

Matt Trimmer, Executive Director, Strategy

Also present

Tom Barcham, Associate Director, Risk and Markets (Item 09/24)

Senior Manager, Strategy (Item 09/24)

 Deputy Private Secretary

Danielle Cartwright, Associate Director, General Qualifications Policy and Strategic Relationships (Items 11/24 and 12/24)

Richard Garrett, Director of Policy and Strategic Relationships for General Qualifications (Items 11/24 and 12/24)

James Lynch, Associate Director, Legal Operations (Item 11/24)

Board Secretary

Lydia Waine, Director of Legal Affairs and Governance

Private Secretary

Note: (V) denotes virtual attendance

02/24         Welcome and apologies for absence

The Chair welcomed everyone to the meeting and, in particular, the new Executive Director, Research and Analysis who was attending his first Board meeting. 

There were no apologies for absence.

03/24         Declarations of interest

i.       Register of interests 2024 to 2025

The Board was presented with the register of interests following the annual declaration of interests.

The Register of Interests for 2024 to 2025 was approved.

ii.      Declaration of interests

There were no declarations of interest for this meeting. 

04/24         Minutes and matters arising

i.       Approval of minutes of meeting held on 13 March 2024.

With no amendments, the minutes of the Board meeting held on 13 March 2024 were approved.

ii.      Matters arising from previous Board meetings

One matter remains open:

1. In relation to matter 46/23, the Board was advised that the requested update will be provided at the October Board meeting.

All other matters arising have been closed.

iii.     Reports and recommendations from Board committees

The Chair of the People, Resources and Finance Committee (PRF) gave a brief verbal update to the Board on the most recent meeting. The Board was asked to note that congratulations had been passed to the Facilities Team on Ofqual’s successful move to its new office in Friargate. The Committee had also discussed the challenges presented by the new headcount cap and the need to start planning for the expected Spending Review. 

The Chair of the Audit and Risk Assurance Committee (ARAC) gave a brief verbal update to the Board on the most recent meeting. The Board was advised that ARAC had also discussed the headcount cap.

iv to vi.  Minutes from Board Committee meetings

The approved Minutes from all previous Board Committee meetings that had taken place since the last Board meeting were received and noted.

05/24         Decisions taken by electronic business

The Board noted one item of electronic business since the previous Board meeting:

i. E01/24: Updating the Interpretation Condition in VTQ QLCs - (approved 04 April 2024).

06/24         Chief Regulator’s report

The Board received an update from the Chief Regulator.

The Board was advised that the summer series had progressed smoothly. Any incidents reported had been dealt with very quickly and had not become serious problems. The Board noted that there had not been any difficulties with marker recruitment. 

The Board was advised that regular discussions were continuing with awarding organisations on any issues with schools and colleges impacted by RAAC. 

The Board was reminded that the approach to awarding of general qualifications for summer 2024 would be in the main undertaken in the normal way. The Board was advised that some small adjustments had been made to grading standards in GCSE French and German to better align them with Spanish, and also in GCSE computer science following research into standards over time. 

The National Reference Test was successfully delivered and details of any resultant decision to adjust grading standards in English and maths will be published in August.

Following the spring insight polls, the Board was advised that confidence in the qualifications system and in exams remains strong. 

The Board was advised that National Assessments were delivered in May with no significant issues identified.

The Board was updated on the regulatory action that Ofqual is currently undertaking.

Ofqual’s graduate scheme was launched in February 2024 and the Board was advised that this had been extremely successful with a large number of applications. The 2 graduate scheme vacancies had now been filled and the appointees will start in September 2024. 

07/24         Ofqual Annual Report and Accounts 2023 to 2024

i.       Financial position report

The Board was presented with the completed position for the financial year 2023 to 2024. The Board noted that there had been some adjustments following ongoing work with the auditors. The Board noted the full year Resource Departmental Expenditure Limit (RDEL) was less than the amount of additional funds requested and that the outturn was delivered to 0.9% of the forecast at Period 6 in line with HM Treasury requirements. The underspend in Capital Departmental Expenditure Limit (CDEL), mainly caused by the relocation of the IFRS16 funding from RDEL, was also noted by the Board. 

The Executive Director, Finance and Operations gave a verbal update on the current financial position. The Board was advised that careful budget monitoring would be needed in the light of the reduction of the planned headcount over the course of the financial year to ensure spending remains on track. Ofqual will be looking at how to utilise any associated savings to make processes and systems more efficient. 

ii.      Annual report on governance, risk management and control

Following the Audit and Risk Assurance Committee meeting on 24 June 2024, the Board received the annual report on governance, risk management and control from the Chair of ARAC. This outlined the work of ARAC in providing assurance of the management systems and controls applied in Ofqual during the period 1 April 2023 to 31 March 2024.

iii.     Ofqual annual report and accounts 2023 to 2024

The Executive Director, Finance and Operations advised that the Ofqual annual report and accounts had been presented to ARAC on 24 June 2024 and that it had also been endorsed by the People, Resources and Finance Committee at their meeting on 19 June 2024. 

The Board discussed and noted the issue of the qualification in relation to regularity arising from the interpretation of IFRS16. 

iv.     Audit completion report and draft management representation letters

The Board received the Audit Completion Report and was advised by the Executive Director, Finance and Operations that a small number of adjustments had been worked through. The Board was advised that the internal control recommendation on consideration of technical accounting matters was largely due to the very specific issue caused by the interpretation of IFRS16.

The Board asked if there were any management reviews outstanding (as noted in the Audit Completion Report). The Executive Director, Finance and Operations will clarify this with the auditors. The Chair of ARAC advised that numbers have changed since the reports seen by ARAC and this was due to continuing work and requests by the auditors to which Ofqual had reacted promptly and efficiently.

The Chief Regulator, as Accounting Officer, confirmed to the Board that there were no material matters of which Ofqual was aware that had not been disclosed to the Board, as well as to the external auditors.

v.      Receive the recommendation of the Audit and Risk Assurance Committee to approve the annual report and accounts

The Chair of ARAC advised the Board that the qualification in relation to regularity had arisen because of a technical breach and a difference in interpretation of IFRS 16 and assured the Board that it was not a result of any failure of controls or governance on the part of Ofqual.

The Chair of ARAC communicated the Committee’s recommendation that the Board approve the draft annual report and accounts.

RESOLVED

The Board agreed to:

i.       Note the financial position presented.

ii.      Note the scale and scope of the Audit and Risk Assurance Committee’s activity during the year.

iii.     Note the scale and scope of the assurance activity undertaken by the Audit and Risk Assurance Committee during the year.

iv.     Receive and approve the annual report on governance, risk management and control.

v.      Receive the draft annual report and accounts 2023 to 2024.

vi.     Receive the report from the external auditors and the management representation letter.

vii.    Receive the recommendation from the Audit and Risk Assurance Committee on the draft annual report and accounts 2023 to 2024.

viii.   Approve the draft annual report and accounts 2022 to 2023 with the caveat that the amendments noted will be dealt with.

ix.     Delegate final sign-off of the annual report and accounts 2023 to 2024 to the Chief Regulator prior to publication.

08/24         Annual report on health and safety

The annual report on health and safety was presented to the Board by the Executive Director Finance and Operations.

The Board noted that the general decreasing trend in both sickness and absence was positive. 

A Health and Safety Framework internal audit had been carried out during the year. The Board was advised that all the recommendations and actions contained in the audit report had been carried out.

The Board asked how Ofqual’s duty of care to those employees working from home is discharged and was assured that mandatory training and checks are the same as for office-based employees. However, further reflection will be given to ensure everything possible is being done for those employees working from home and that appropriate safeguards are in place.

RESOLVED

The Board resolved to approve the annual Report on health and safety.

09/24         Strategic risk 

The Board was advised that one new risk had been introduced to the Register since it was last presented. 

All the risks had been reviewed in light of the announcement of the general election. 

RESOLVED

The Board noted the changes in the Strategic Risk Register and endorsed the proposed risk tolerance for the new Risk. 

10/24         Update on progress with the capacity, capability and governance strategy

The Board welcomed the work that was being done with this programme and recognised the positive impact already made. 

11/24         Introducing principles into Ofqual’s regulatory framework

The Board was given an overview of the work that had been undertaken, starting with a reminder of the theory and rationale as to why a set of Principles should be introduced into the General Conditions of Recognition (GCR).

The Board was advised that extensive research had been undertaken, both with internal staff and with external legal colleagues. As a conclusion of the research, 6 Draft Principles were presented to the Board together with proposed Statutory Guidance. The Board was advised that the Principles were designed to complement each other and they were not in any hierarchy. The Board was further advised that Ofqual had been conscious of potential regulatory burden but were keen to assist AOs to understand what is required of them by the regulatory framework. 

The Board discussed the benefits of providing guidance and offered steers around the language within the drafts. There was also recognition of the need to find the correct timing for the consultation following the outcome of the general election. Ofqual will reflect further on all the points raised before the final consultation document is produced. 

In principle, the Board welcomed the initiative and were content with this now being taken to consultation.

RESOLVED

The Board 

a.      agreed that Ofqual should consult on the introduction of a set of principles into the General Conditions of Recognition (GCR) that will:

     i.       Support AOs and stakeholders to interpret the regulatory framework in an appropriate and consistent manner, and

     ii.      allow Ofqual to enforce against a condition when applying a principles-based approach to regulation;

b.      agreed that the principles and statutory guidance to be consulted on should be based on the drafting in Annex A;

c.      agreed to delegate sign off of the final drafting of the principles and statutory guidance to be consulted on, and the consultation document, to the Chief Regulator, in consultation with the Chair. 

12/24         DfE and Ofqual framework document

The Board agreed to delegate the final submission of the framework document and that it would be circulated to all Board Members in due course. 

ACTION: DC

RESOLVED

The Board agreed to delegate to the Chief Regulator, in consultation with the Chair, sign off for the final submission of the framework document to HM Treasury. 

With apologies, Chris Paterson left the meeting at 11:58am

13/24         Publication of papers

The Board agreed to publish Open Papers.

14/24         Any other business

i. Urgency procedure – subject to legal privilege

Next Board meeting       

The next Board meeting will be held on Wednesday 9 October 2024.

The meeting ended at 12:02pm.