1 Development Programme complete
Renfrewshire Council · 13 June 2022
Back to Audit, Risk and Scrutiny Board — 13 June 2022 and its agenda
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1 ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 13 June 2022 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Development Programme for Audit, Risk and Scrutiny Board Members ___________________________________________________________________ 1. Summary 1.1 The national guidance produced by the Chartered Institute of Public Finance and Accountancy (CIPFA) on the implementation of Audit Committee Principles in Scottish Local Authorities recommends that training on audit and risk related matters is provided to members of the Audit, Risk and Scrutiny Board. 1.2 Attached at Appendix 1 is the proposed programme of development briefings, which would be delivered at Board Meetings throughout the year. Appendix 2 is the current briefing on the “Role of Audit Committee”. ___________________________________________________________________ 2. Recommendations 2.1 Members are asked to approve the programme of development briefings and note the content of the current briefing. __________________________________________________________________
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2 Implications of the Report 1. Financial - None 2. HR & Organisational Development - None 3. Community Planning – Safer and Stronger – an effective audit committee is an important element of good corporate governance. 4. Legal - None 5. Property/Assets - None 6. Information Technology - None 7. Equality & Human Rights - None 8. Health & Safety – None 9. Procurement - None 10. Risk - training for elected members on audit and risk-related matters reflects audit committee principles 11. Privacy Impact – None 12. COSLA Implications – None 13. Climate Risk - None __________________________________________________________________ Author: Karen Campbell 07768354651
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3 Appendix 1 Development Programme Date Topic June 2022 Role of Audit Committee tbc Role of Internal Audit tbc Risk Management Arrangements
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Briefing for Audit, Risk and Scrutiny Board Members Role of the Audit Committee 13 June 2022 Appendix 2
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Overarching Governance Arrangements • Good Practice for a local authority to establish an audit committee • Local authority should determine the arrangements which best suit its circumstance Audit, Risk and Scrutiny Board
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Audit Committee Principles •The Control Environment •Independent assurance of the adequacy of the risk management framework and the associated control environment within the authority Principal 1 •Risk Related Performance •Independent scrutiny of the authority’s financial and non-financial performance to the extent that it affects the authority’s exposure to risk and weakens the control environment Principal 2 •Annual Accounts and the External Auditor •Assurance that any issues arising from the process of drawing up, auditing and certifying the authority’s annual accounts are properly dealt with. Principal 3
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High Level Objectives Concerned with governance, risk and control across the Council Focus on controls that protect against the highest risks Gain assurance that the critical risks are being managed appropriately Should be satisfied that the work of InternalAudit is properly focussed
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Risk Related Performance Effectiveness of the corporate risk assessment process Significant risk related performance issues raised by auditors/inspectors Implementation of improvement action plans
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The Control Environment Approval of the annual internal audit plan Monitoring achievement of the internal audit plan Review of summary findings, main issues and implementation of recommendations Audit risk assessment has been carried out Annual Report and assurance statement Relationship between internal audit, external audit and inspection agencies Promote the value of the audit process
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Annual Accounts and the External Auditor Audit certificate and consideration of matters arising Annual report to members Implementation of agreed action plans External audit reports, main issues and implementation of recommendations
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Administration Formally constituted committee, reporting to council Terms of reference Political balance Training and development Timely agenda and papers Attended by internal and external audit
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Members of the Audit Committee Good understanding of the council as a whole Good understanding of internal control Objective and independent of mind Mix of skills (including financial expertise) Participate in development sessions Challenging and seek assurance
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Benefits of Effective Audit Committees Raising awareness of internal control Public confidence in financial and other reporting Reinforce the importance and independence of internal and external audit Provide additional assurance through objective and independent review Reduce the risk of illegal or improper acts
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