Agenda item

            The Committee was advised that the Audit Panel, at its meeting on 11th March, had considered a report on the Revised Terms of Reference of the Audit Panel and agreed that the Strategic Policy and Resources be recommended to approve the terms as set out hereunder:

“Statement of Purpose and Terms of

Reference for the Audit Panel

Purpose of the Audit Panel

      The purpose of BelfastCity Council’s Audit Panel is to provide an independent assurance on the adequacy of the Council’s risk management framework and associated control environment.  It will provide an independent scrutiny of the Council’s financial and non?financial performance to the extent that it exposes the Council to risk and weakens the control environment.  The Panel will also oversee the Council’s financial reporting process.

      The Audit Panel will also have the function of providing scrutiny in relation to the implementation of the Council’s policy decisions for the purpose of ensuring that the Council meets its obligations to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness, pursuant to section 1 of the Local Government (Best Value) (NI) Act 2002.

Audit Activity

1.     To consider the Head of Audit, Governance and Risk Services annual report and opinion, and a summary of internal audit activity (actual and proposed) and the level of assurance it can give concerning the Council’s corporate governance arrangements.

2.     To consider summaries of specific internal audit reports.

3.     To consider reports dealing with the management and performance of Audit, Governance and Risk Services.

4.     To consider reports from Audit, Governance and Risk Services on agreed recommendations not implemented within a reasonable timescale.

5.     To consider the Local Government Auditor’s annual letter, management letter and relevant reports.

6.     To consider all recommendations, reports and declarations of the Local Government Auditor as made under the Local Government (NI) Order 2005.

Scrutiny Role

7.     To scrutinise the Council’s arrangements for ensuring value?for-money, pursuant to section 1 of the Local Government (Best Value) (NI) Act 2002.

8.     To commission work from internal audit (including value-for-money and review of the progress of any improvement plans) and external audit

9.     To comment on the scope and depth of external audit work and to ensure it gives value-for-money.

Regulatory Framework

10.   To maintain an overview of the Council’s constitution in respect of contract procedure rules, financial regulations and codes of conduct and behaviour.

11.   To monitor the effective development and operation of risk management and corporate governance in the Council.

12.   To monitor Council policies on whistleblowing and the anti?fraud and corruption strategy and the Council’s complaints process.

13.   To oversee the production of the Council’s Statement on Internal Control and to recommend its adoption.

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

15.   To consider the Council’s compliance with its own and other published standards and controls.

Accounts

16.   To review the annual statement of accounts.  Specifically, to consider whether appropriate accounting policies have been followed and whether there are concerns arising from the financial statements or from the audit that need to be brought to the attention of the Council.

17.   To consider the external auditor’s report to those charged with governance on issuing arising from the accounts.

Referral

18.   The Audit Panel shall consider any issue referred to it in relation to these terms of reference by the Council or any Committee.  Furthermore, the Audit Panel shall also consider any matter brought to its attention by the Chief Executive.

19.   Where any individual Member wishes to raise an issue under these terms of reference, the Member shall accordingly either raise the matter through the Committee or in the case of urgency with the Chief Executive.”

            The Committee approved the revised Terms of Reference of the Audit Panel and noted that these would be reviewed by the Panel after a period of six months.