Agenda Item No. 5
THE VALE OF GLAMORGAN COUNCIL
COUNCIL: 7TH MAY, 2014
REFERENCE FROM AUDIT COMMITTEE: 28TH APRIL, 2014
" AUDIT COMMITTEE - TERMS OF REFERENCE (HARM) -
Committee were advised of proposed amendments to the Audit Committee’s Terms of Reference.
The Chartered Institute of Public Finance and Accountancy (CIPFA) had published "Audit Committee’s - Practical Guidance for Local Authorities and Police 2013 Edition". This publication set out CIPFA’s guidance on the function and operation of Audit Committees in local authorities. The guidance represented CIPFA’s view of best practice for Audit Committees and recognised that Audit Committees were a key component of governance. Within the publication, it stated "the purpose of an Audit Committee was to provide those charged with governance independent assurance on the adequacy of the risk management framework, the internal control environment and the integrity of the financial report and annual governance process".
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 were proposed to be amended as set out in Appendix A to the report.
The proposed amendments had been necessary to ensure that the Audit Committee’s Terms of Reference were aligned to those outlined in the CIPFA publication and to ensure compliance with the Public Sector Internal Audit Standards. The amended Terms of Reference would be presented to Full Council for approval, following which the Constitution would be amended accordingly.
Having considered the report, it was
(1) T H A T the report and the proposed amended Terms of Reference attached at Appendix A to the report be noted.
(2) T H A T the proposed amended Terms of Reference be presented to Full Council for approval.
Reason for decisions
(1&2) To keep the Audit Committee informed and to ensure that the Audit Committee’s Terms of Reference were kept up to date."
Attached as Appendix - Report to Audit Committee - 28th April, 2014