Terms of Reference

AUDIT AND GOVERNANCE COMMITTEE

(Delegated Powers)

Audit

The Audit and Governance Committee shall comprise of 6 elected Members of the Authority – including 2 Minority Party Members and, ideally those Members who do not sit on the Performance and Scrutiny Board. It will also include up to 3 independent members and will exclude the Chair and Vice-Chair of the Authority.

The Committee will meet six times per year including:

• May - to review the internal control & governance issues prior to the drafting of the Authority’s Annual Governance Statement.  This is achieved via the Audit and Governance Committee’s work programme through the receipt of Internal Audit progress reports, Risk Management reports etc.
• July – to approve the Authority’s Annual Governance Statement prior to it being signed off by the Chair of the Authority & Statement of Accounts prior to it signed off by the Chair of Audit and Governance Committee.
• September – to receive and consider the external Auditor’s Annual Governance report.
• November / January – to consider and approve planned progress reports on items related to the Committee’s functions.

Audit Activity
To consider the following internal audit reports:

• Annual plan and strategy and performance measures;
• Progress reports (actual against the plan) including summaries of the results of individual audits, internal control issues arising, and action plans implementation (including external audit action plans);
• Annual report on internal audit activity and performance achievements and the opinion on the Authority’s internal control arrangements.
• To consider the external auditor’s governance report and annual audit letter and other significant reports.
• To commission work from internal and external audit.

Regulatory Framework

-      To review and receive assurance on the effectiveness of the Authority’s Constitution in respect of:-

• Contract standing orders and procedures;
• Financial regulations and procedures;
• Codes of conduct and behaviour.

-   To monitor the effective development and operation of risk management.

-    To approve the Authority’s anti-fraud and anti-corruption strategy and “whistle-blowing” policy, and to monitor the arrangements for those and the complaints process.

-    To oversee the production of, and approve, the Authority’s Annual Governance Statement.

-      To consider the Authority’s arrangements for corporate governance and agreeing necessary actions to ensure compliance with best practice.

Accounts
-    To approve the annual Statement of Accounts focussing on:-

• The suitability of, and any changes in, accounting policies;
• Major judgmental issues, e.g. provisions.

-          To receive and agree the response to the external auditor’s report to those charged with governance on issues arising from the audit of the accounts, focussing on significant adjustments and material weaknesses in internal control reported by the external auditor.

Treasury Management

- To scrutinise and make recommendations to the Authority on the Treasury Management Strategy and policies, and to monitor the implementation of policies and practices.