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Agenda Item No. 11

 

The Vale of Glamorgan Council

 

Audit Committee: 28th April 2014

 

Report of the Head of Accountancy and Resource Management

 

Audit Committee - Terms of Reference

 

Purpose of the Report

1.         To present to Members the proposed amendments to the Audit Committee's Terms of Reference for information.

Recommendations

1.         THAT Members note the report and the proposed amended Terms of Reference attached as Appendix A;

2.         That Members note that the proposed amended Terms of Reference will be presented to full Council for approval.

Reason for the Recommendations

1.         To keep the Audit Committee informed and to ensure that the Audit Committee's Terms of Reference are kept up to date.

Background

2.         The Chartered Institute of Public Finance and Accountancy (CIPFA) have published "Audit Committees" - Practical Guidance for Local Authorities and Police 2013 Edition.  This publication sets out CIPFA's guidance on the function and operation of audit committees in local authorities.  The guidance represents CIPFA's view of best practice for audit committees and recognises that audit committees are a key component of governance, within the publication it states:- "The purpose of an audit committee is to provide to those charged with governance independent assurance on the adequacy of the risk management framework, the internal control environment and the integrity of the financial reporting and annual governance process".

Relevant Issues and Options

3.      Taking into consideration the suggested terms of reference as outlined in the CIPFA publication, together with the necessary regulations including the Accounts and Audit (Wales) Regulations 2005; the Accounts and Audit (Wales) (Amendment) Regulations 2010; the Local Government (Wales) Measure 2011 and CIPFA's Delivering Good Governance in Local Government Framework; the current Terms of Reference for the Audit Committee have been amended (using tracked changes) as set out in Appendix A.

4.      The proposed amendments have been necessary to ensure that the Audit Committee's Terms of Reference are aligned to those outlined in the CIPFA publication and to ensure compliance with the Public Sector Internal Audit Standards.  The amended Terms of Reference will be presented to full Council at a future meeting for approval, following which the Constitution will be amended accordingly.

Resource Implications (Financial and Employment)

5.      None as a direct consequence of this report.

Sustainability and Climate Change Implications

6.      None directly from this report

Legal Implications (to Include Human Rights Implications)

7.      Provision of an adequate and effective Internal Audit function is a legal requirement under the Accounts and Audit (Wales) Regulations 2005 as amended. The PSIAS replace the Code of Practice for Internal Audit in Local Government in the United Kingdom, last revised in 2006.  In local government in Wales, the PSIAS is mandatory for all principal local authorities and other relevant bodies subject to the Accounts and Audit (Wales) (Amended) Regulations 2010.

Crime and Disorder Implications

8.      Pursuing initiatives to prevent, detect and deter crime is encompassed within the terms of reference under which the audit function operates.

Equal Opportunities Implications (to include Welsh Language issues)

9.      None as a direct consequence of this report.

Corporate/Service Objectives

10.    The work of audit is intended to assist in the achievement of all corporate and service objectives.

Policy Framework and Budget

11.    The proposals in this report are in accordance with the policy framework and budget.

Consultation (including Ward Member Consultation)

12.    No further consultation is proposed.

Relevant Scrutiny Committee

13.    Corporate Resources.

Background Papers

None

 

Contact Officer

Helen Smith - Operational Manager - Audit Tel: 01656 754901

 

Officers Consulted

External Audit Manager - Grant Thornton UK LLP

 

Responsible Officer:

Alan Jenkins - Head of Accountancy and Resource Management

 

 

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