Audit Committee Handbook - Scottish Government

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ANNEX F: MODEL TERMS OF REFERENCE FOR PORTFOLIO AUDIT COMMITTEES ANNEX F: MODEL TERMS OF REFERENCE FOR PORTFOLIO AUDIT COMMITTEES TERMS OF REFERENCE FOR [NAME OF PORTFOLIO] AUDIT COMMITTEE An Audit Committee has been established to support the Portfolio Accountable Officer[s] (PAO) in his/her/their responsibilities for issues of risk, control and governance over the [programme]/[administration] budget for [name of Portfolio]. This includes reviewing the comprehensiveness of assurances in meeting the PAO’s assurance needs and reviewing the reliability and integrity of these assurances. In formal terms, the Audit Committee reports annually to the overarching Scottish Government Audit Committee (SGAC). Membership The Audit Committee will comprise three [or more] non-executive members, one of whom shall serve as the chair. Details of the current members including the chair are shown in Appendix 1. • The Audit Committee will be provided with a secretarial support service by (XXXXXX). Meetings • The Audit Committee will meet at least four times a year. The Chair of the Audit Committee may convene additional meetings as he/she deems necessary. • The PAO may also ask the Audit Committee to convene further meetings to discuss particular issues on which he/she/they want the Audit Committee’s advice. A minimum of two members of the Audit Committee will be present for the meetings to be deemed quorate. In the absence of the Chairperson, one of the other non-executive members will assume that role for the duration of the meeting. • The Chair of SGAC should be advised of any member who fails to attend two consecutive meetings. • Audit Committee meetings will normally be attended by the PAO and representatives from Internal Audit Division, Audit Scotland and Finance. • The Audit Committee may ask any other officials to attend to assist it with its discussions on any particular matter. • The Audit Committee may ask any or all of those who normally attend but who are not members to withdraw to facilitate open and frank discussion of particular matters. • Papers for Audit Committee meetings should be circulated to members at least one week prior to the meeting date. • A core work programme is attached at Appendix 2. • An Action Point Tracker will be maintained to monitor progress on key issues raised at meetings. 17
18 AUDIT COMMITTEE HANDBOOK: Guidance for audit committee members in the core Scottish Government Access • Internal Audit Division and Audit Scotland will have free and confidential access to the Chair of the committee and vice versa (it is expected, however, that exercise of this right would be on an exceptional basis). Reporting • The Audit Committee will formally report back to the PAO after each meeting – providing a copy of minutes of the meeting may form the basis of the report. • The Audit Committee will also provide SGAC with an Annual Report, in a format agreed by SGAC and in advance of the SGAC meeting timed to review the Scottish Government consolidated accounts and associated Statement on Internal Control (SIC). Responsibilities The Audit Committee will advise the PAO on: • the strategic processes for risk, control and governance • the planned activity and results of both internal and external audit • the adequacy of management response to issues identified by audit activity or by Parliamentary Committees where they affect the portfolio’s overall performance • assurances relating to the corporate governance requirements for the portfolio, e.g. Certificates of Assurance and issues relating to the Permanent Secretary’s signing of the SIC. Information Requirements To achieve the above, for each meeting the Audit Committee will normally be provided with: • a report on the [Portfolio] performance relating to risk management, including a summary of any key changes to the risk register • a progress report from Internal Audit Division detailing, as appropriate: – work performed – key issues emerging from internal audit work – management responses to audit recommendations – progress on the implementation of agreed recommendations – the current internal audit plan including proposed changes – any issues affecting the delivery of internal audit objectives • a progress report from Audit Scotland summarising work done and emerging findings. As and when appropriate, the Committee may also be provided with: • The Terms of Reference of Internal Audit Division agreed by SGAC • The Internal Audit Strategy agreed with SGAC • Internal Audit Division’s annual assurance and report for the [Portfolio]
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Audit Committee Handbook - Scottish Government

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