You are on page 1of 5

Audit Committee self-assessment checklist

ESTABLISHMENT, OPERATI0N AND DUTIES


Role and remit
Ref
Priority
Issue
Yes
No
N/a
Comments/Action
1
1
Does the audit committee have written terms of reference?

Ref A - Governance and Audit Committee Terms of Reference


2
1
Do the terms of reference cover the core functions of an audit committee as identified in the CIPFA Guidance?

th
Report of the City Solicitor to City Council 10 October 2006 -Ref B pages 11

3
1
Are the terms of reference approved by the council and reviewed periodically?

Minutes of the Council 27 March 2007- Ref C (minute 73) only approved March 2007 not yet due for review
4
1
Has the audit committee been provided with sufficient membership, authority and resources to perform its role
effectively and independently?

th
Report of the City Solicitor to City Council 10 October -Ref B -In accordance with CIPFA Guidance

5
1
Can the audit committee access other committees and full council as necessary?

Ref B item 6 appendix B and Ref A item 6, item 13


6
1
Does the authority's statement on internal control include a description of the audit committee's establishment and
activities?

SIC for 2006/7 referred to the setting up of an Audit Committee in 2007/8. From 2007/8 the SIC is replaced by the AGS
that will make reference to the Governance and Audit Committee
7
2
Does the audit committee periodically assess its own effectiveness?

Meetings
Ref

Priority

16

Issue

Yes

No

N/a

Does the audit committee meet


regularly?

17

18

19

20

21

22

Do the terms of reference set out the


frequency of meetings?
Does the audit committee calendar
meet the authority's business needs,
governance needs and the financial
calendar?
Are members attending meetings on
a regular basis and if not, is
appropriate action taken?
Are meetings free and open without
political influences being displayed?

Yes see Minutes of the


Governance and Audit Committee
Ref E
See Minutes Ref E

Does the authority's s151 officer or


deputy attend all meetings?

Yes see Minutes Ref E

Yes see Minutes Ref E; regular:


Risk Manager, S151 Officer,
Monitoring Officer, CX, Audit
Manager and other officers as
required

Does the audit committee have the


benefit of attendance of appropriate
officers at its meetings?
INTERNAL CONTROL
Ref Priority Issue
23
1
Does the audit committee consider
the findings of the annual review of
the effectiveness of the system of
internal control (as required by the
Accounts & Audit Regulations)
including the review of the
effectiveness of the system of
internal audit?
24
1
Does the audit committee have
responsibility for review and approval
of the SIC and does it consider it
separately from the accounts?
25
1
Does the audit committee consider
how meaningful the SIC is?
26
1
Does the audit committee satisfy
itself that the system of internal
control has operated effectively
throughout the reporting period?
27
1
Has the Audit committee considered
how it integrates with other
committees that may have
responsibility for risk management?
28

Yes

Comments/Action
Is in Terms of Reference. Now
AGS which is on the Agenda for
November 23rd meeting also see
Minutes Ref E

Now AGS- On 23rd November


agenda
Terms of Ref and on Agenda 23rd
November

P
Does the Audit committee ensure
that the "Actions to Counter Fraud
and Corruption" are being
implemented?

N/a

See Minutes, Ref E and Terms of


Reference, Ref A

No

Has the audit committee (with


delegated responsibility) or the full
council adopted "Managing the Risk
of Fraud -Actions to Counter Fraud
and Corruption?"
29

Comments/Action

Meetings set for June 29th 2007,


Sept 21st 2007, November 23rd
2007, February 8th 2008 and 11th
April 2008 for this years cycle and
have been drafted for 2008/9.
No but not an issue as a
programme of forward dates is set
annually
Yes, particularly with Accounts,
programmed by Democratic
Services

Seeking clarity with role of Policy


and Review (Performance) Panel
see Minutes 21st September
requested report to November 23rd
Meeting
The Anti Fraud and Corruption
Policy was approved by the Full
Council on 9th October 2007.
Action:
Audit Manager to progress this
specific document with Risk
Manager, Monitoring Officer and
s151 Officer
Fraud Response Plan has been
drafted and the detailed
investigation procedures are being
drafted.
Action:
Audit Manager to progress with
Risk Manager, Monitoring Officer
and s151 Officer

Is the audit committee made aware


of the role of risk management in the
preparation of the internal audit plan?

30

31

32

Does the Audit Committee monitor


how the authority assesses its risk?

33

Do the audit committee's terms of


reference include oversight of the risk
management process?

Does the audit committee review the


authority's strategic risk register at
least annually?

Report to Members 29 June 2007


meeting Audit Strategy, Ref F
page 4 item 18
Awaiting clarity on role but up date
report on corporate risk register
reported to G&A 21st Sept.
meeting
Seeking clarity of roles to be
discussed at November 23rd
meeting
Terms of ref - Ref A

FINANCIAL REPORTING AND REGULATORY MATTERS


Ref

Priority

34

35

Issue

Yes

Is the audit committee's role in the


consideration and/or approval of the
annual accounts clearly defined?
Does the audit committee consider
specifically;
The suitability of accounting
policies and treatments

No

N/a

Comments/Action

Terms of Reference, Ref A

As far as possible see Minutes 29


June 2007, Ref E

21ST September meeting, Ref E

21ST September meeting, Ref E

As far as possible on advice of


s151 Officer see Minutes 29 June
2007, Ref E
See Minutes 29 June Ref E

Major Judgements made


Large write-offs
Changes in accounting treatment

36

37

38

39

40

The reasonableness of
accounting estimates
The narrative aspects of
reporting?
Is an audit committee meeting
scheduled to receive the external
auditor's report to those charged with
governance including a discussion of
proposed adjustments to the
accounts and other issues arising
from the audit?
Does the audit committee review
management's letter of
representation?
Does the audit committee annually
review the accounting policies of the
authority?
Does the audit committee gain an
understanding of management's
procedures for preparing the
authority's annual accounts?
Does the audit committee have a
mechanism to keep it aware of
topical legal and regulatory issues,
for example by receiving circulars
and/or through training?

There is currently an informal


system carried out by the
Monitoring Officer.
Action:
Monitoring Officer to put a formal
system in place

INTERNAL AUDIT
Ref

Priority

41

42

43

Issue

Yes

Does the audit committee approve,


annually and in detail, the internal
audit strategic and annual plans
including consideration of whether
the scope of internal audit work
addresses the authority's significant
risks?
Does internal audit have an
appropriate reporting line to the
audit committee?
Does the audit committee receive
periodic reports from the internal

See Ref E Minutes of June 29


Meeting

Regular meetings with the Chair,


see also Audit Charter and Terms
of Reference
Ref E Minutes and 21st September
Minutes

No

N/a

Comments/Action

44

45

46

audit service including an annual


report from the Head of Internal
Audit?
Are follow-up audits by internal audit
monitored by the audit committee
and does the committee consider the
adequacy of implementation of
recommendations?
Does the audit committee hold
periodic private discussions with the
Head of Internal Audit?

On-going agenda item

Part of KPIs escalation process of


non-implemented
recommendations see Minutes 21st
September 2007

Action? Audit Chair- invite others?


Not a specific CIPFA requirement
to meet them all just Chair
Regular meetings held between
DA/IA
Action: Internal Audit Manager to
speak to District Audit Manager
about updating Audit Protocol

Is there appropriate cooperation


between the internal and external
auditors?

Ref

Priority

47

48

49

50

Issue

Yes

Does the audit committee review the


adequacy of internal audit staffing and
other resources?
Has the audit committee evaluated
whether its internal audit service
complies with CIPFA's Code of
Practice for Internal audit in Local
Government in the United Kingdom?
Are internal audit performance
measures monitored by the audit
committee?
Has the audit committee considered
the information it wishes to receive
from internal audit?

No

N/a

Comments/Action

Ref E see Minutes of June and


September

Report to members 23rd


November

Ref E Minutes June and Sept

See Minutes 21st Sept and June

EXTERNAL AUDIT
Ref

Priority

51

52

Issue

Yes

Do the external auditors present and


discuss their audit plans and strategy
with the audit committee
(Recognising the statutory duties of
external audit)?

No

S151 Officer and Chief Executive


discuss and agree the audit plan
and strategy with the District
Auditor

Action:
District Auditors details have been
passed to the Chair by the
Internal Audit Manager 30 Oct
2007
See Minutes 21 Sept 2007

Ditto

Action:
Policy and Review (Performance)
Panel currently receives other
inspection agency reports.
Any key issues should be
reported to the G&A from the
Panel
Action:
Annual report from s151 Officer to
G&A on any issues that have
arisen regarding External audit
performance
Action
Annual report from the s151
Officer to G&A on the level and
challenge to the External Audit
fee

Does the audit committee hold


periodic private discussions with the
external auditor?
53

54

55

Does the audit committee review the


external auditor's annual report to
those charged with governance?
Does the audit committee ensure that
officers are monitoring action taken to
implement external audit
recommendations?
Are reports on the work of external
audit and other inspection agencies
presented to the committee, including
the Audit Commission's annual audit
and inspection letter?

56

1
Does the audit committee assess the
performance of external audit?

57

1
Does the audit committee consider
and approve the external audit fee?

N/a

Comments/Action

ADMINISTRATION
Agenda management
Ref

Priority

58

59

60

61

Issue

Yes

Does the audit committee have a


designated secretary from Committee/
Member Services?
Are agenda papers circulated in
advance of meetings to allow
adequate preparation by audit
committee members?
Are outline agendas planned one year
ahead to cover issues on a cyclical
basis?

No

N/a

Yes

Circulated to all members by the


statutory 5 working days notice
period.

Ref G Democratic Services to


provide this to the Chair G&A

Advance notice and requests from


Members for agenda items are
carried out in accordance with
Standing Order 61 as well as
regularly invited from officers.

Are inputs for Any Other Business


formally requested in advance from
committee members, relevant officers,
internal and external audit?

Comments/Action

Papers
Ref

Priority

62

Issue

Yes

Do reports to the audit committee


communicate relevant information at
the right frequency, time, and in a
format that is effective?

Ref

Priority

63

Does the audit committee issue


guidelines and/or a proforma
concerning the format and contents of
the papers to be presented?
Actions arising

Ref

Priority

Issue

Yes

64

Comments/Action
See Minutes

65

st
See Minutes Sept 21 Ref E

66

Are minutes prepared and circulated


promptly to the appropriate people?
Is a report on matters arising made
and minuted at the audit committee's
next meeting?
Do action points indicate who is to
perform what and by when?

Ref E Minutes June 29 Ref E

Issue

Yes

No

N/a

Comments/Action

No

N/a

Comments/Action

Corporate Standard Formats used

No

N/a

REVIEW CARRIED OUT BY:


Lyn Graham Audit Manager and Councilor Richard Jensen, Chair of the Governance and Audit
Committee
28th September 2007

Final
November 2007