This Committee was
formerly known as the Audit
Committee. It was renamed at
Council on 18 October 2007.
The Governance Audit
and Risk Management Committee was amalgamated with the Standards
Committee on 12 June 2014 and has the following powers and
duties:
1.
Statement of purpose
1.1 The Governance, Audit,
Risk Management and Standards Committee is a key component of
Harrow 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 standards.
1.2 The purpose of the
committee is to provide independent assurance to the members of the
adequacy of Harrow Council’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. It also acts as the Standards
Committee.
1.3 The Governance, Audit,
Risk Management and Standards Committee has the following powers
and duties:
2.
Governance
2.1 To review the
council’s corporate governance arrangements against the good
governance framework, including the ethical framework and consider
the local code of governance.
2.2 To review the Annual
Governance Statement (AGS) prior to approval and consider whether
it properly reflects the risk environment and supporting assurances
and legal and financial advice, taking into account internal
audit’s opinion on the overall adequacy and effectiveness of
the council’s framework of governance, risk management and
control.
2.3 To monitor the
progress of agreed actions to close significant governance
gaps.
2.4 To consider the
council’s arrangements to secure value for money and review
assurances and assessments on the effectiveness of these
arrangements.
2.5 To consider the
council’s framework of assurance and ensure that it
adequately addresses the risks and priorities of the
council.
2.6 To review the governance
and assurance arrangements for significant partnerships.
3.
Risk Management
3.1 To review the
Council’s risk management strategy.
3.2 To monitor the effective
development and operation of risk management in the council via the
review of the Council’s Corporate Risk Register on a regular
basis.
3.3 To monitor progress in
addressing risk-related issues reported to the
committee.
4.
Countering Fraud and Corruption
4.1 To review the assessment
of fraud risks and potential harm to the council from fraud and
corruption.
4.2 To monitor the
counter-fraud strategy, actions and resources and the
Council’s approach to tackling fraud and corruption and
promote an anti-fraud culture.
4.3 To review and
approve the annual Corporate Anti-Fraud Team Plan.
4.4 To consider reports
from the Head of Internal Audit/ Corporate Anti-Fraud Manager on
the Corporate Anti-Fraud Team’s performance at mid-year and
at year-end.
5.
Internal audit
5.1 To approve the internal
audit charter and support the independence of Internal
Audit.
5.2 To review proposals made
in relation to the appointment of external providers of internal
audit services and to make recommendations.
5.3 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
sources.
5.4 To approve significant
interim changes to the risk-based internal audit plan and resource
requirements.
5.5 To make appropriate
enquiries of both management and the Head of Internal Audit to
determine if there are any inappropriate scope or resource
limitations.
5.6 To consider any
impairments to independence or objectivity arising from additional
roles or responsibilities outside of internal auditing of the Head
of Internal Audit.
5.7 To approve and
periodically review safeguards to limit such
impairments.
5.8 To consider reports from
the Head of Internal Audit on internal audit’s performance at
mid-year and year-end, including the performance of external
providers of internal audit services.
5.9 To consider Red and
Red/Amber assurance reports and summaries of specific internal
audit reports as requested.
5.10 To contribute to the Quality Assurance
Improvement Programme and in particular, to the external quality
assessment of internal audit that takes place at least once every
five years.
5.11 To consider the report on the
effectiveness of internal audit contained within the
AGS.
5.12 To provide free and unfettered access
to the GARMS Committee Chair for the Head of Internal Audit,
including the opportunity for a private meeting with the
committee.
6.
External audit
6.1 To support the
independence of external audit through consideration of the
external auditor’s annual assessment of its independence and
review of any issues raised by Public Sector Audit Appointments
(PSAA).
6.2 To consider the external
auditor’s annual letter, relevant reports and the report to
those charged with governance.
6.3 To consider specific
reports as agreed with the external auditor.
6.4 To comment on the scope
and depth of external audit work and to ensure it gives value for
money.
6.5 To advise and recommend on
the effectiveness of relationships between external and internal
audit and other inspection agencies or relevant bodies.
6.6 To
scrutinise/comment on the External Audit plan and fees.
6.7 To monitor progress
against the External Audit plan and receive summaries of audit work
completed and key recommendations.
6.8 To review the
management response to external audit recommendations and progress
on implementation of recommendations.
6.9 To recommend action
where external audit recommendations are not being
implemented.
7.
Financial reporting
7.1 To review the annual
statement of accounts prior to approval and satisfy themselves that
appropriate steps have been taken to meet statutory and recommended
professional practices. Specifically
to:
·
review the narrative report to ensure consistency
with the statements and the financial challenges and risks facing
the authority in the future
·
review whether the narrative report is readable and
understandable by a lay person
·
review the key messages from each of the financial
statements and evaluating what that means for the authority in
future years
·
monitor trends and review for consistency with what
is known about financial performance over the course of the
year
·
review the suitability of accounting policies and
treatments
·
seek explanations for changes in accounting policies
and treatments
·
review major judgemental areas, eg provisions or
reserves
·
seek assurances that preparations are in place to
facilitate the external audit.
7.2 To consider the external
auditor’s report to those charged with governance on issues
arising from the audit of the accounts.
8.
Treasury Management
8.1 To review the
Treasury Management strategy and monitor progress on treasury
management in accordance with CIPFA codes of practice.
9.
Health & Safety
9.1 To review the
Council’s Health and Safety arrangements and oversee progress
on Health and Safety.
10.
Accountability arrangements
10.1 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
functions.
10.2 To report to full council on an annual
basis on the committee’s performance in relation to the terms
of reference and the effectiveness of the committee in meeting its
purpose.
10.3 To publish an annual report on the
work of the committee.
11.
Standards
11.1
Promoting and
maintaining high standards of conduct by Councillors,
co-opted members and “church” and parent governor
representatives.
11.2
Assisting Councillors, co-opted members and
“church” and parent governor representatives to observe
the Members’ Code of Conduct.
11.3
Advising the
Council on the adoption or revision of the Members’ Code of
Conduct.
11.4
Monitoring the
operation of the Members’ Code of Conduct.
11.5
Developing and
recommending local protocols to the Council to supplement the
Members’ Code of Conduct.
11.6
Enforcing local
protocols and applying sanctions in respect of breaches as
appropriate.
11.7
Advising,
training or arranging to train Councillors,
co-opted members and “church” and parent governor
representatives on matters relating to the Members’ Code of
Conduct.
11.8
Granting dispensations to Councillors,
co-opted members and “church” and parent governor
representatives from requirements relating to interests set out in
the Members’ Code of Conduct.
11.9 To
keep under review and
amend, as appropriate, the Protocol on Councillor/Officer Relations.
11.10 To keep under review the Officer
Code of Conduct and, after consultation with unions representing
staff, make recommendations to Council for amendment or
addition.
11.12 To receive reports and keep a
general overview of probity matters arising from ombudsman
investigations, Monitoring Officer reports, reports of the Chief
Financial Officer and Audit Commission.
11.13 To have oversight of the
Council’s Whistleblowing Policy.
11.14 To agree the policy for decisions on
payments to those adversely affected by Council maladministration
(under section 92 Local Government Act 2000).
11.15 To establish sub-committees and
working groups to deal with complaints that a member or a co-opted
member has failed to comply with the Council’s Code of
Conduct.
11.16 To consider any application received
from any officer of the Authority for exemption from political
restriction under Sections 1 and 2 of the Local Government and
Housing Act 1989 in respect of the post held by that officer and
may direct the Authority that the post shall not be considered to
be a politically restricted post and that the post be removed from
the list maintained by the Authority under Section 2(2) of that
Act.
11.17 Upon
the application of any
person or otherwise, consider whether a post should be included in
the list maintained by the Authority under Section 2(2) of the 1989
Act, and may direct the Authority to include a post in that
list.
11.18 On referral from the Monitoring Officer, to
decide whether to take action against a member for breach of the
Code of Conduct and if so, to decide what action should be
taken.
12.
Membership rules
12.1 An Elected
Mayor, the Leader or a member of the Executive may not be
Members;
12.2 The Chair of the Committee must
not be a Member of the Executive;
12.3 The appointment of
co-opted/independent members can be considered;
12.4 The Independent Persons are not
members of GARMS and shall be invited to meetings only if there is
a Standards item on the agenda.
Information on how to
submit a petition,
deputation or public question is available on the council
website.