NORTH YORKSHIRE COUNCIL

 

AUDIT COMMITTEE

 

15 DECEMBER 2025

 

AUDIT COMMITTEE TERMS OF REFERENCE / REVIEW OF EFFECTIVENESS

 

Report of the Corporate Director – Resources

 

 

1.0

PURPOSE OF THE REPORT

1.1

 

To consider whether any changes are required to the Audit Committee’s Terms of Reference. Members are also asked to consider whether a review of the Committee’s effectiveness is required.

 

 

2.0      BACKGROUND

 

2.1      The Committee’s current Terms of Reference were reviewed and updated as part of the process to prepare for local government reorganisation.

 

2.2      It is best practice to formally review the Terms of Reference on a regular basis and to make changes as necessary. This report therefore seeks to identify any further changes that may now be required due to recent legislation, developments in recommended best practice or changes in the Council’s governance arrangements. 

 

2.3      As well as being a requirement of the Terms of Reference, the best practice guidance on audit committees in local government, published by the Chartered Institute of Public Finance and Accountancy (CIPFA) in October 2022, recommends that audit committees should complete a periodic self-assessment of their effectiveness. Alternatively, an independent review can be undertaken. The guidance includes a checklist to support the self-assessment, enabling the Committee to highlight the areas where it has made an impact on the Council’s governance, risk management, control and audit arrangements. The outcomes are intended to support the preparation of the audit committee’s future work programme, training plans and the annual report.           

 

3.0      TERMS OF REFERENCE

 

3.1      A small number of changes are proposed to the Terms of Reference to reflect the new Global Internal Audit Standards (UK Public Sector) and the CIPFA Code of Practice for the Governance of Internal Audit. It is also proposed that the Audit Committee’s existing annual reporting process to Full Council is reflected in the Terms of Reference. These changes are shown as tracked changes in Appendix 1. Members’ views are also sought on whether the Terms of Reference are enabling the Committee to discharge its responsibilities effectively and whether any further changes are required. Once agreed by the Audit Committee, any amendments to the Terms of Reference must be agreed by the Constitution Working Group, Executive and Full Council.

 

 

4.0      REVIEW OF AUDIT COMMITTEE EFFECTIVENESS

 

4.1      A survey of the Audit Committee’s effectiveness was conducted in March 2025 and the results were reported to the Committee on 23 June 2025. The survey was sent to all the Members of the Committee as well as those officers who regularly attend meetings. The results of the survey were discussed at the meeting and Members agreed that no changes were required to the Committee’s operating arrangements. It was also agreed that a more in-depth review of the Committee’s effectiveness was not required. Given the outcome of the survey no further action is proposed at this time.

 

5.0      IMPLICATIONS

 

5.1      This report is for information only. There are no local member, financial, human resources, legal, equalities or climate change implications.

 

6.0      RECOMMENDATION

 

           Members are asked to consider:

 

6.1      the proposed changes to the Terms of Reference of the Committee prior to the submission those changes to the Constitution Working Group, Executive and Full Council.

 

6.2      whether a review of the Committee’s effectiveness is required given the results of the recent survey. 

 

 

GARY FIELDING

Corporate Director – Resources

 

 

County Hall

NORTHALLERTON

 

21 November 2025

 

Background Documents:  

 

None