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Audit Committee

Terms of Reference

The role of the Audit Committee of the Office of the Parliamentary and Health Service Ombudsman (PHSO) 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 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 Deputy Ombudsman and Deputy Chief Executive, and Director of Communications and Policy;
  
• Director and/or Assignment Manager of the External Auditor (NAO);
  
• Head of Internal Audit and/or Internal Audit Manager;
  
• Head of Finance;

• Directors or other officials as required to assist the Committee on specific issues.

Corporate Resources will provide the Secretariat to the Audit Committee.

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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.

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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 PHSO
  
• 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 Statement of Internal Control)
  
• Achievement of value for money by PHSO
  
• Adequacy of systems of quality assurance for PHSO'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.

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• 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 Deputy Chief Executive);
  
  
• 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.
  

• 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 Statement of Internal Control
  
• 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 PHSO Advisory Board.

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Last updated: 6 February 2009