Our audit committee is a key component of Allerdale
Borough Council’s corporate governance. It provides an
independent and high-level focus on the audit, assurance and
reporting arrangements that underpin good governance and financial
The purpose of our audit committee is to provide
independent assurance of the adequacy of the risk management
framework and the internal control environment. It provides
independent review of Allerdale’s governance, risk management
and control frameworks and oversees the financial reporting and
annual governance processes. It oversees internal audit and
external audit, helping to ensure efficient and effective assurance
arrangements are in place. Governance, Risk and Control
To review the council’s corporate governance
arrangements against the good governance framework, including the
ethical framework and consider the local code of
To review the Annual Governance Statement prior to
approval and consider whether it properly reflects the risk
environment and supporting assurances, taking into account internal
audit’s opinion on the overall adequacy and effectiveness of
the council’s framework of governance, risk management and
To consider the council’s arrangements to
secure value for money and review assurances and assessments on the
effectiveness of these arrangements.
To consider the council’s framework of
assurance and ensure that it adequately addresses the risks and
priorities of the council.
To monitor the effective development and operation
of risk management in the council.
To monitor progress in addressing risk-related
issues reported to the committee.
To consider reports on the effectiveness of internal
controls and monitor the implementation of agreed
10.To review the assessment of
fraud risks and potential harm to the council from fraud and
11.To monitor the counter-fraud
strategy, actions and resources.
12.To review the governance and
assurance arrangements for significant partnerships or
13.To approve the internal audit
14.To review proposals made in
relation to the appointment of external providers of internal audit
services and to make recommendations.
15.To approve the risk-based
internal audit plan, including internal audit’s resource
requirements, the approach to using other sources of assurance and
any work required to place reliance upon those other
16.To approve significant interim
changes to the risk-based internal audit plan and resource
17.To make appropriate enquiries of
both management and the Assurance, Risk and Audit Manager to
determine if there are any inappropriate scope or resource
18.To consider any impairments to
independence or objectivity arising from additional roles or
responsibilities outside of internal auditing of the Assurance,
Risk and Audit Manager. To approve and periodically review
safeguards to limit such impairments.
19.To consider reports from the
Assurance, Risk and Audit Manager on internal audit’s
performance during the year, including the performance of external
providers of internal audit services. These will
updates on the work of internal audit including key
findings, issues of concern and action in hand as a result of
internal audit work
regular reports on the results of the
reports on instances where the internal audit
function does not conform to the PSIAS and LGAN, considering
whether the non-conformance is significant enough that it must be
included in the AGS.
20.To consider the
Assurance, Risk and Audit Manager’s annual report:
The statement of the level of conformance with the
PSIAS and LGAN and the results of the QAIP that support the
statement – these will indicate the reliability of the
conclusions of internal audit.
The opinion on the overall adequacy and
effectiveness of the council’s framework of governance, risk
management and control together with the summary of the work
supporting the opinion – these will assist the committee in
reviewing the AGS.
consider summaries of specific internal audit reports as requested.
22.To receive reports outlining the action taken where the
Audit Manager has concluded that management has accepted a level of
risk that may be unacceptable to the authority or there are
concerns about progress with the implementation of agreed
contribute to the QAIP and in particular, to the external quality
assessment of internal audit that takes place at least once every
consider a report on the effectiveness of internal audit to support
where required to do so by the Accounts and Audit
provide free and unfettered access to the audit committee chair
Assurance, Risk and Audit Manager, including the opportunity for a
private meeting with the committee.
26.To support the
independence of external audit through consideration of
auditor’s annual assessment of its independence and review of
any issues raised by PSAA.
27.To consider the
external auditor’s annual letter, relevant reports and the
report to those charged with governance.
28.To consider specific reports as
agreed with the external auditor.
29.To comment on the scope and depth
of external audit work and to
ensure it gives value for money.
30.To commission work from internal
and external audit.
31.To advise and recommend on the
effectiveness of relationships
between external and internal audit
and other inspection agencies or
32.To review the annual statement of
accounts. Specifically, to consider
whether appropriate accounting
policies have been followed and whether there are concerns arising
from the financial statements or from the audit that need to be
brought to the attention of the council.
33.To consider the external
auditor’s report to those charged with
governance on issues arising from the
audit of the accounts.
34.To report to those charged with
governance on the committee’s findings, conclusions and
recommendations concerning the adequacy and effectiveness of their
governance, risk management and internal control frameworks,
financial reporting arrangements, and internal and external audit
35.To report to full council on a
regular basis on the committee’s performance in relation to
the terms of reference and the effectiveness of the committee in
meeting its purpose.
36.To publish an annual report on the
work of the committee.