Audit, Risk and Finance Committee

Role:

The main purpose of the Committee is to assist Council in providing oversight of matters relating to the quality and integrity of financial reporting, independence and performance of the external auditors, effectiveness and objectivity of the internal audit programme, and oversight of business risks and compliance activities.

Scope:

Responsibilities:

• Assist Council in fulfilling its responsibilities for financial statements and external financial reporting.
• Monitor the Council’s external and internal audit process and the resolution of any issues that are raised.
• Review key formal external accountability documents such as the Annual Report in order to provide advice and recommendation in respect to the integrity and appropriateness of the documents and the disclosures made.
• Provide a forum for communication between management, internal and external auditors and the governance level of Council.
• Ensure the independence and effectiveness of Council’s internal audit processes, with oversight of the internal audit programme and findings.
• Oversee the development of the Council’s Annual Report.
• Oversee the development and management of financial policies and delegations.
• Monitor existing corporate policies and recommend new corporate policies to prohibit unethical, questionable or illegal activities.
• Support measures to improve management performance and internal controls.

Responsibilities:

Audit (internal and external):

• Ensure appropriate accounting policies and internal controls are established and maintained and assist Council in ensuring the effective and efficient management of all business risks.
• Ensure an appropriate framework is maintained for the management of strategic and operational risk (including risk appetite).
• Review risk including technical insurance matters and participation in national risk management practices, health and safety risk management and implementation of risk management processes.
• Review the effectiveness of the annual audit.
• Monitor management response to audit reports and the extent to which the external audit recommendations concerning internal accounting controls and other matters are implemented.
• Monitor the delivery of any internal audit work programme and implementation of any significant recommendations including control risk, accounting and disclosure practices.
• Engage with Councils external auditors regarding the external work programme and agree the terms and arrangements of the external audit in relation to the Annual Report.
• Engage with internal and external auditors on any specific one-off audit assignments.
• Review the effectiveness of the control environment established by management including the computer information management systems controls and security. This also includes a review/monitoring role for relevant policies, processes, and procedures

Risk management:

• Review the Risk Management Framework, and associated procedures to ensure they are current, comprehensive and appropriate for the effective identification and management of Council’s financial and business risks including fraud and cyber security.
• Review the effectiveness of the system for monitoring Council’s financial compliance with relevant laws, regulations and associated government policies.
• Review whether a sound and effective approach has been followed in establishing Council’s business continuity planning arrangements.
• Review Council’s Fraud Policy to determine that Council has appropriate processes and systems in place to capture and effectively investigate fraud related information.

Financial:

• To monitor the operational performance of Council’s activities and services against approved levels of service.
• Monitor financial performance against any Council approved joint contracts with other local authorities.
• Report financial outcomes and recommend any changes or variations to allocated budgets including both operational and capital expenditure.
• Provide oversight of legal risks, claims or proceedings (excluding the approval of any legal settlements).
• Recommend the adoption of the Annual Report and the approval of the Summary Annual Report to Council.

Power to act:

The Committee is delegated the authority to:

• Receive and consider external and internal audit reports.
• Receive and consider staff reports on audit, internal control and risk management policy and procedure matters as appropriate.
• To approve the Auditors engagement and arrangement letters in relationship to the Annual Report.

Power to recommend:

• To make recommendations to Council and/or any Committee as it deems appropriate.

Power to sub-delegate:

The Committee may delegate any of its functions, duties or powers to a subcommittee, working group or any other subordinate decision-making body, subject to the restrictions on its delegations and provided any sub-delegation includes a statement of purpose and a specification of task.