Committee details

ABERDEEN CITY COUNCIL

AUDIT AND RISK COMMITTEE

ORDERS OF REFERENCE

1.         The Committee will:-

(a)          receive an annual review of the risk management process, and an update every six months on the risk register and related action plans;

(b)          approve the risk management strategy and implementation plan;

(c)          monitor risk management and internal control arrangements; and

(d)          commission and review annual assessments of the effectiveness of the risk management and control framework.

2.         The Committee is charged with responsibility for ensuring that there is an effective Internal Audit function.  This to be achieved through the following:-

(a)          the approval of the Internal Audit Annual Plan;

(b)          the consideration of all reports issued by Internal Audit with the exception of those on the Pension Fund;

(c)          responsibility for ensuring that there is an adequately resourced Internal Audit service; and

(d)          the consideration of performance reports on Internal Audit activity.

3.         To receive all reports prepared by the Council's External Auditor with the exception of those on the Pension Fund.

4.         To consider the Council’s Annual Report, Annual Accounts and Trading Services Annual Report and Accounts and refer these to Council for approval.

5.         To ensure the Council meets its legal obligations through:-

(a)          reviewing the reliability and robustness of financial information;

(b)          ensuring compliance with audit legislation; and

(c)          the preparation of reports of avoidable losses.

6.         To review minuted actions from all main Committees with the exception of the Planning Development Management and Licensing Committees to ensure compliance with legal requirements and good practice.  The Committee will not prevent any decision being taken and will only review a decision.

7.         To require Heads of Service and managers to be available to answer questions at each meeting on matters set out on the agenda.

8.         The Committee may wish to call all Senior Councillors to attend meetings.

9.         The Committee may, on occasion, seek information from partner organisations, contractors or other stakeholders such as Community Councils or groups of interest in any particular issue.

10.      The Committee will make its recommendations by way of its minutes of meetings which will be submitted to Council Minority views will also be put forward to Council in the minute.

11.      The Committee will consider any previously unscrutinised issue, process or practice provided the matter has been the subject of a report to Council or Committee and the consideration of the subject matter concluded by Council or said Committee.

12.      The Committee will ensure, through consideration of a quarterly report from the governance hub, that each tier 1 Arm’s Length External Organisation has an effective system of risk management in place, covering strategy, structure, skills, system, staff and shared values.  The Committee will use this to determine the level of assurance it can place on the effectiveness of that system and its ability to achieve the organisational objectives.

13.      The Committee will consider reports from the governance hub on such other matters as may be presented in areas such as audit, roles and responsibilities of the board, legislation, following the public pound and breaches of governance.

14.      The Committee will consider such reports on tier 2, 3 and 4 organisations as may be submitted from the governance hub.

15.      The Committee can require representatives of organisations to attend its meetings.