Review of the Governance and Accountability Arrangements for the Northern Ireland Assembly Audit Office (NIAO) and Northern Ireland Public Services Ombudsman (NIPSO)

Draft Terms of Reference

Background:

The main role of the Audit Committee (‘the Committee’) is to consider the estimates of the Northern Ireland Audit Office (NIAO) and the Northern Ireland Public Services Ombudsman (NIPSO) and to lay the agreed estimates for both bodies before the Assembly. The Committee carries out this function in place of the Department of Finance in recognition of the independence of these non-ministerial public bodies.

The statutory function of the Committee in respect of the NIAO is set out in Article 6(2) of the Audit (Northern Ireland) Order 1987 (‘the 1987 Order’) and section 66(1) of the Northern Ireland Act 1998. In addition, the Committee is responsible for tabling any motion for a resolution of the Assembly relating to the salary payable under Article 4(1) of the 1987 Order to the holder of the office of the Comptroller and Auditor General (C&AG). The Committee’s functions in respect of the NIPSO are provided for in paragraph 18 of Schedule 1 to the Public Services Ombudsman Act (Northern Ireland) 2016. The aforementioned statutory functions of the Committee are reflected in Standing Order 58.

In addition, the Committee has agreed separate Memoranda of Understanding (MoU) with the NIAO and the NIPSO which describe the corporate governance and accountability frameworks that shall apply between the Committee and the respective bodies.   

Arising from its consideration of related matters in September and October 2020, the Committee has agreed to undertake a review of this area.

Purpose:

To establish the scope for improving the governance and accountability arrangements for the NIAO and the NIPSO and the appropriate avenues for implementing any future improvements in the context of the Committee’s defined statutory functions in relation to both bodies.

Objectives:

While recognising the statutorily independent position of both the C&AG/NIAO and NIPSO, the review will:

1) consider the level of scrutiny and interchange which is necessary between the Committee and both the NIAO and the NIPSO to enable the Committee to exercise its related statutory functions effectively, including in terms of agreeing, or as necessary proposing modifications to, the estimates for the respective bodies;

2) examine the following areas with a view to identifying potential improvements in light of experience and evidence:

• the Committee’s existing statutory functions in relation to the NIAO and the NIPSO;
• the MoU which have been agreed between the Committee and the NIAO and the Committee and the NIPSO; and
• the comparative governance and accountability arrangements in the UK jurisdictions in terms of counterpart committees/commissions, C&AGs/equivalents, audit offices and ombudsman offices; and

3) set out the appropriate avenues for implementing any identified improvements to the governance and accountability arrangements for the NIAO and the NIPSO.

Sources:

The sources of information and evidence which the review will draw upon will include: documentation on existing arrangements; comparative research and legal advice; evidence from expert witnesses on applicable governance and accountability models in other jurisdictions; and focused evidence sessions with the C&AG/NIAO and the NIPSO.

Output:

The findings and any recommendations arising from the review will be set out in a special report to the Assembly which the Committee will make under Standing Order 46(7).