Management of Student Housing The Audit Approach

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Management of Student HousingThe Audit Approach

• UUK/Guild HE Annual Meeting

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Contents

• Introduction
• Internal Audit
• Management of Student Housing and Internal Audit
• Principal Audit Objectives
• Documents provided by UUK/Guild HE
• Detailed Audit Objectives
• Methodology

• Scoring system/use of results
• Overall Impressions to date
• Areas of good practice
• identified
• Areas for improvement
• Going Forward
• Comments on the Code
• Conclusions and questions

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Introduction

• Richard Bott
• Bristol based, London born. Fellow of the ICAEW
  and member of the HEFCE audit liaison group.
• Internal audit partner for 6 HE institutions and
  two Colleges
• External audit partner for 3 HE institutions
• The Chair of the firms National Education Focus
  Group.
• Laura Hallez
• Internal Audit Manager South Coast
• Already completed two reviews

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Introduction - Mazars

• 10th largest audit firm in the UK. 111 partners
  and over 1100 staff in 18 offices
• Unique international partnership in over 55
  countries worldwide
• Higher education
• Internal audit
• External audit
• Risk management services
• Grant audits
• Taxation
• Human resources
• Marketing and branding
• Further education
• Other education related bodies
• Schools

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Internal Audit

• The IIA definition of Internal Audit is
• Internal auditing is an independent, objective
  assurance and consulting activity designed to add
  value and improve an organisation's operations.
  It helps an organisation accomplish its
  objectives by bringing a systematic, disciplined
  approach to evaluate and improve the
  effectiveness of risk management, control and
  governance processes.
• Necessary evil
• Here to help, not hinder
• Adequacy and effectiveness of systems and
  controls
• Informed by risk

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Management of Student Housingand internal audit

• Housing Act 2004
• Act introduced system of licensing for multiple
  occupancy houses
• HE/FE managed or controlled establishments may be
  excepted provided managed in conformity with
  approved code of practice
• Hence, the UUK/Guild HE Code of Practice
• Requires that internal audit include the
  establishments management of its student
  accommodation in relation to the Code within
  audit scope
• A full audit every 3 years, lighter touch in
  between
• Results reported annually to Audit Committee and
  UUK/Guild HE

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Audit Objectives

• Two principal audit objectives. To assess
  whether
• The University is in compliance with the
  mandatory elements of the Code
• The University follows good management practice
  in respect of its student housing, in accordance
  with the aspirational elements of the Code.
• Enshrined in 7 detailed objectives

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Documents provided by UUK/Guild HE

• Terms of reference
• Useful guide
• Scoring system
• Auditor Checklist
• Clear link between the Code and the checklist
• 100 questions, but they are only guidance
• Difficult to establish the mandatory and
  aspirational elements from the shading

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Detailed Audit Objectives
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Detailed Audit Objectives (contd)
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Methodology

• Draft auditor checklist
• Sample based on campus location(s) and size
• Interviews with accommodation office staff,
  residence managers, student representatives
• Examination of documents, e.g.
• Fire safety assessments
• Terms of Residency
• Examination of residences, e.g.
• Window stops
• Adequate signage
• Clearance with relevant institutional contact
• Report to University (Audit Committee)
• University report to UUK

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Scoring System/Use of results

• Requirement included in draft terms of reference
  issued by UUK/Guild HE, but
• Yet to be developed
• Scoring system
• Balanced Scorecard approach?
• Prioritise between must have/aspirational
  elements (e.g. emergency procedures vs snow and
  ice clearance timetable)
• Different levels of compliance say 0 to 3
• Database of notable practice
• Quality assurance process essential to enable
  comparison
• Assist universities and auditors in their
  assessments

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Overall Impressions to date

• 5 completed to date
• Good awareness of requirements
• Good preparation by University staff
• Responsive to recommendations
• Willing to change policies as a result of the
  code and the audit (Transport Plans, Health
  Emergency Procedure Plans)
• Full compliance/mandatory compliance

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Areas of good practice identified

• Detailed self-assessments
• Ensuring compliance of residences not directly
  controlled by institution
• Completing a self-assessment in conjunction with
  the management company
• Retaining copies of fire safety assessments and
  other vital documents held by the management
  company
• Up to date checklist detailing all relevant
  documents held by the management company and
  their location
• Quarterly meetings with the management company to
  monitor compliance with the code.
• Good environmental policies in place for
  recycling and transport

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Areas for improvement

• User instructions for electrical appliances
  supplied by the University
• Recycling initiatives where the local authority
  does not provide a free service
• Snow and ice clearance policies
• Complaints procedure and referral to UUK Code
  Management Committee
• Ensuring all residences that are required to be
  signed up to the code are monitored effectively

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Going Forward

• Audit can take between 4 to 8 days
• Total time depends on scope, size etc
• Not a mere box ticking process
• Prior preparation vital
• Complete a self-assessment of compliance for all
  residences
• Have a file prepared of all supporting evidence
• Ensure management companies are aware of code and
  audit process

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Comments on the Code

• Student complaints and the UUK Code Management
  Committee reporting line not clear
• Clarification in the code of mandatory elements
• Non-mandatory or aspirational any difference?
• Reporting instances of non-mandatory
  non-compliance. Is this a breach of the code?
• Notifiable diseases what are they
• Annual or tri-annual audit?

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Conclusions and questions

• Code is a detailed document providing adequate
  guidance (just needs clarification in places)
• Documents provided by UUK CoP have bee useful
• Universities have been proactive in implementing
  the code
• A rational approach to audit
• Several areas of good practice identified
• Good response to audit from Universities

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Conclusions and questions

• Over to you
• richard.bott_at_mazars.co.uk
• laura.hallez_at_mazars.co.uk