Audit Committee

The role of the Audit Committee is to support the Ombudsman (as Accounting Officer) and the PHSO Advisory Board in monitoring the adequacy of the Office's corporate governance and control systems.

Audit Committee members

Role

The Role of the Audit Committee is to support the Ombudsman (as Accounting Officer) and The Board in monitoring the adequacy of the Office’s corporate governance and control systems through:

  • Offering objective advice on issues concerning the risk, control and governance of the organisation and associated assurances provided by internal and external audit and other processes;
  • From time to time challenging constructively executive decisions to ensure that these are the best possible and achieve value for money in the light of the available evidence;
  • Adding value by helping the Accounting Officer ensure good judgment has been exercised.

Membership

The members of the Audit Committee are:

  • The Ombudsman (as Accounting Officer);
  • Three external members, one of whom shall Chair the Committee.

In attendance at the Audit Committee shall be:

  • The Chief Operating Officer;
  • Director and/or Assignment Manager of the External Auditor (NAO);
  • Head of Internal Audit and/or Internal Audit Manager;
  • Director of Finance, Planning and Performance;
  • Directors if audit reports from their areas of responsibility are being considered;
  • Directors or other officials as required to assist the Committee on specific issues;
  • The Chief Operating Officer’s Office will provide the Secretariat to the Audit Committee. This will usually be the Risk and Assurance Manager.

Access

Internal Audit and the NAO will have free and confidential access to the Chair of the Audit Committee.

Meetings

  • The Committee will meet at least four times a year, to coincide with key points in the delivery of work from Internal Audit and the NAO;
  • The Committee may meet more than four times a year to discuss specific issues with the agreement of the Chair, or at the request of the NAO or Internal Audit;
  • A quorum will be a minimum of two members of the Committee.

Remit

Within its role set out above the Audit Committee will advise the Accounting Officer on:

  • Risk management policies and practices throughout PHSO;
  • The Resource Accounts, accounting policies and practice relevant to the organisation (including compliance with Government Accounting);
  • The plans of Internal and External Audit, including assessing priorities and promotion of understanding of the role of audit within the Office;
  • The results of audit work including: individual audit, progress, follow-up and annual reports; and management letters;
  • Corporate governance assurances provided by Internal and External Audit and other processes (the Committee and its activities shall be included in the Governance Statement);
  • Achievement of value for money by the Office;
  • Adequacy of systems of quality assurance for the Office's core activities;
  • The adequacy of management responses to issues raised by Internal and External Audit;
  • Upholding standards of propriety in PHSO business;
  • Appointment of Internal Auditors;
  • Monitoring the cost and performance of the Internal and External Audit service.

The Audit Committee should be provided with:

  • Internal and External Audit strategy and plans (including audit needs assessment and planned co-operation between Internal and External Audit);
  • Progress reports from the Head of Internal Audit on:
    • work performed since the last meeting (with a comparison with work planned as amended in agreement with the Chief Operating Officer);
    • update on stage reached in each audit planned;
    • results of follow-up work on implementation of audit recommendations;
    • key issues arising from Internal Audit work in the period.
  • The Head of Internal Audit’s Annual Report and opinion (which will include a report, agreed with the NAO, on the co-operation between Internal and External Audit during the year);
  • Copies of all Internal Audit published reports for review and consideration;
  • Appropriate reports from members and attendees on areas covered by the Committee’s remit including risk arrangements, quality assurance etc;
  • PHSO’s draft Resource Accounts for assessment;
  • PHSO’s draft Governance Statement;
  • The External Audit Management Letter;
  • Proposals for changes of accounting policies;
  • A report of any suspected fraud or serious irregularity;
  • A report of any losses and special payments;
  • Minutes of the Board.

The Audit Committee will submit the minutes of its meetings and an annual report on its work to the Board.

Review of PHSO Audit Committee Terms of Reference

  The PHSO Audit Committee Terms of Reference will be reviewed as required on an interim basis from October 2012.

Date: October 2012