Agenda Item No 8
The Vale of Glamorgan Council
Audit Committee 25th April 2016
Report of the Head of Finance / Section 151 Officer
Audit Committee - Terms of Reference
Purpose of the Report
To present to Members the Audit Committee's Terms of Reference for information as set out in the Council's Constitution.
THAT Members note the report and the Terms of Reference attached as Appendix A;
Reason for the Recommendation
To keep the Audit Committee informed and to ensure that the Audit Committee's Terms of Reference are up to date.
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 2014; 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 reviewed and no amendments have been made; therefore, the current Terms of Reference as contained within the Council's Constitution is attached at Appendix A.
Resource Implications (Financial and Employment)
4. None as a direct consequence of this report.
Sustainability and Climate Change Implications
5. None directly from this report
Legal Implications (to Include Human Rights Implications)
6. Provision of an adequate and effective Internal Audit function is a legal requirement under the Accounts and Audit (Wales) Regulations 2014 . 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
7. 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)
8. None as a direct consequence of this report.
9. The work of audit is intended to assist in the achievement of all corporate and service objectives.
Policy Framework and Budget
10. The proposals in this report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
11. No further consultation is proposed.
Relevant Scrutiny Committee
12. Corporate Resources.
Helen Smith - Operational Manager - Audit Tel: 01656 754901
Wales Audit Office
Carys Lord - Head of Finance / Section 151 Officer