Appendix 1

AUDIT COMMITTEE

TERMS OF REFERENCE

1. In respect of Internal Audit

· to ensure that the Council’s arrangements for Internal Audit comply with the CIPFA Code of Practice for the Governance of Internal Audit

· to approve the Internal Audit Charter, Annual Audit Plan and performance criteria for the Internal Audit Service.

· to review summary findings and the main issues arising from internal audit reports and seek assurance that management action has been taken where necessary.

· to review the effectiveness of the anti-fraud and corruption arrangements throughout the Council.

· to meet in private with the Head of Internal Audit at least annually and to enquire about any restrictions on internal audit’s scope, access, authority or resources that may limit its ability to carry out its responsibilities effectively

· consider the annual report from the Head of Internal Audit.

· to obtain assurance that the work of internal audit conforms to the Global Internal Audit Standards (UK Public Sector)Public Sector Internal Audit Standards.

2. In respect of External Audit

· to ensure the independence of External Audit is maintained

· to review the annual audit plan and monitor its delivery

3.         To review, and recommend to the Executive, changes to Procurement and Contract, Finance and Property Procedure Rules.

4.         In respect of financial statements

            For both the Council and the North Yorkshire Pension Fund

· to approve the respective annual Statements of Final Accounts

· to receive and review the Annual Audit Letters and associated documents issued by the External Auditor

· to review changes in accounting policy

5.         In respect of Corporate Governance

· to assess the effectiveness of the Council’s Corporate Governance arrangements

· to review progress on the implementation of Corporate Governance arrangements throughout the Council

· to approve Annual Governance Statements for both the Council and the North Yorkshire Pension Fund

· to liaise, as necessary, with the Standards and Governance Committee on any matter(s) relating to the Codes of Conduct for both Members and Officers

· to work with the Standards and Governance Committee to promote good ethical standards within the Council

· to review the arrangements in place for ensuring good governance in the Council’s key partnerships and owned companies

6.         In respect of Risk Management

· to assess the effectiveness of the Council's Risk Management arrangements.

· to review progress on the implementation of Risk Management throughout the Council.

7.         In respect of Information Governance

· to review all corporate policies and procedures in relation to Information Governance.

· to oversee the implementation of Information Governance policies and procedures throughout the Council.

8.         In respect of Treasury Management

· to be responsible for ensuring effective scrutiny of the Council’s Treasury Management strategy and policies as required by the CIPFA Treasury Management Code of Practice.

· To review these Treasury Management strategies, policies and arrangements and make appropriate recommendations to the Executive.

9.         In respect of Value for Money

· to have oversight of the arrangements across the Council in securing Value for Money.

10.       To consider any other relevant matter referred to it by the Council, Executive or any other Committee. In addition any matter of concern can be raised by this Committee to the full Council, Executive or any other Member body.

11.       To exercise all functions in relation to the making and changing of policy relating to such audit and counter-fraud matters which fall within the remit of the Committee (save as may be delegated otherwise).

12.       To periodically review the effectiveness of the Audit Committee itself.

13.       To meet not less than four times a year on normal business and review its Terms of Reference on an annual basis.

14.       To report to Full Council at least annually on the work of the Audit Committee and how it has discharged its responsibilities.