Risk and Audit CommitteeKomiti Kaute me te Aukati Mōreareatanga
The Risk and Audit Committee assists Council to discharge its responsibilities for the robustness of the internal control framework, the robustness of risk management systems, process and practices, the independence and adequacy of internal and external audit functions and, compliance with applicable laws, regulations, standards and best practice guidelines
To assist Council to discharge its responsibilities for:
the robustness of the internal control framework to ensure appropriate controls to safeguard the Council’s financial and non-financial assets, the integrity and appropriateness of internal and external reporting and accountability arrangements;
the robustness of risk management systems, process and practices;
the independence and adequacy of internal and external audit functions;
compliance with applicable laws, regulations, standards and best practice guidelines
Areas of Responsibility
The Risk and Audit Committee shall have responsibility for:
Internal Control Framework and Audit
Review whether management’s approach to maintaining an internal the internal control framework is current, sound and effective.
Consider whether management has taken steps to embed a culture that is committed to probity and ethical behaviour.
Review whether there are appropriate processes or systems in place to capture and effectively investigate fraud or material litigation should it be required.
Approve the internal audit coverage and annual work plans, ensuring these plans are based on the Council's risk profile.
Review the adequacy of management's implementation of internal audit recommendations.
Review the internal audit charter to ensure appropriate organisational structures, authority, access, independence, resourcing and reporting arrangements are in place.
Consider the processes for ensuring the completeness and quality of financial and operational information being provided to Council.
Seek advice periodically from internal and external auditors regarding the completeness and quality of financial and operational information that is provided to the Council.
Review whether management has in place a current and comprehensive risk management framework and associated procedures for effective identification and management of the Council's significant risks.
Review the risk appetite established by management, ensuring the risk appetite aligns with Council’s strategy, plans and commitments to the public.
Consider whether appropriate action is being taken by management to mitigate Council's significant risks.
Ensure that management is kept appraised of the Council's governance body's views on uncontrolled risk.
External Reporting and Accountability
Consider the appropriateness of the Council's existing accounting policies and principles and any proposed changes.
Enquire of external auditors for any information that affects the quality and clarity of the Council's financial statements, and assess whether appropriate action has been taken by management.
Satisfy itself that the financial statements are supported by appropriate management signoff on the statements and on the adequacy of the systems of internal control (i.e. letters of representation), and recommend signing of the financial statements by the Chief Executive/Mayor and adoption by Council.
Confirm that processes are in place to ensure that financial information included in the entity's annual report is consistent with the signed financial statements.
Satisfy itself that the Statement of Service Performance is supported by appropriate management signoff on the statement and on the adequacy of the systems of internal management and control.
Receive and consider the Summary Financial Statements for consistency with the Annual Report.
Confirm the terms of the appointment and engagement, including the nature and scope of the audit, timetable and fees, with the external auditor
Receive the external audit report(s) and review action to be taken by management on significant issues and audit recommendations raised within.
Compliance with Legislation, Standards and Best Practice Guidelines
Review the effectiveness of the system for monitoring the Council's compliance with laws (including governance legislation, regulations and associated government policies), Council's own standards, and Best Practice Guidelines.
Receive the six monthly legal compliance report from management and review any proposed actions to address any non-compliance matters.
Long Term Plan
Confirm the terms of appointment and engagement, including the nature and scope of the audit, timetable, and fees with the External Auditor.
Receive and consider the contents of the LTP and the Auditors report pursuant to section 94 of the LGA 2002.
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