Assembly Commission Audit and Risk Committee

Terms of Reference

The Northern Ireland Assembly Commission (Assembly Commission) has established the Assembly Commission Audit and Risk Committee ("ACARC") to support the Clerk/Chief Executive (in her role as Accounting Officer), the Assembly Commission and Senior Management Team in their responsibilities for governance, risk management and control by reviewing the comprehensiveness of assurances in meeting the Assembly Commission and Accounting Officer's assurance needs and reviewing the reliability and integrity of these assurances.

 

MEMBERSHIP

The members of ACARC include:

  • One Member of the Assembly Commission; and
  • Three independent external members.

ACARC will be chaired by an independent external member.

ACARC will be provided with an administrative function by the Directorate of Legal, Governance and Research Services.

 

REPORTING

After each ACARC meeting, ACARC members and attendees will be provided with the draft minutes and action points arising from the meeting. Copies of approved minutes will be sent to all Assembly Commission Members and will be tabled at Assembly Commission meetings.

ACARC will provide the Assembly Commission, Accounting Officer and the Senior Management Team with a written Annual Report, timed to support the finalisation of accounts and the Governance Statement, summarising its conclusions from the work it has done during the year.

The Annual Report will summarise ACARC's work for the year past, and present ACARC's opinion regarding:

  • the effectiveness of governance, risk management and control, specifically including the Assembly Commission's proposed disclosure on compliance with the Orange Book including the Risk Control Framework;
  • the comprehensiveness of assurances in meeting the Assembly Commission's and Accounting Officer's needs;
  • the reliability and integrity of these assurances;
  • whether the assurance available is sufficient to support the Assembly Commission and Accounting Officer in their decision taking and their accountability obligations;
  • the implication of these assurances for the overall management of risk;
  • any issues ACARC considers pertinent to the Governance Statement and any long-term issues the Committee thinks the Assembly Commission and/or Accounting Officer should give attention to;
  • financial reporting for the year;
  • the quality of both Internal and External Audit and their approach to their responsibilities; and
  • ACARC's view of its own effectiveness, including advice on ways in which it considers it needs to be strengthened or developed.

The Chairperson of ACARC is generally invited to attend meetings of the Assembly Commission as an observer.

The Chairperson of ACARC has a right of access to the Speaker in their role as Chairperson of the Assembly Commission and, as such, may at any time make a request to the Speaker to address the Assembly Commission on specific matters.

The Independent Chairperson and Members of ACARC will undergo an annual appraisal with the Speaker.

 

RESPONSIBILITIES

ACARC will advise the Assembly Commission, the Accounting Officer and the Senior Management Team on:

  • the strategic processes for governance, risk management and control and the Governance Statement;
  • the accounting policies, the accounts and the annual report of the Assembly Commission, including the process for review of the accounts prior to submission for audit, levels of error identified and management's letter of representation to the Northern Ireland Audit Office (NIAO);
  • the planned activity and results of both Internal and External Audit;
  • the adequacy of management response to issues identified by audit activity, including the Report To Those Charged With Governance from the NIAO;
  • assurances relating to the management of risk and corporate governance requirements for the Assembly Commission;
  • the effectiveness of the internal control environment;
  • (where appropriate) proposals for tendering for either Internal or External Audit services[1] or for purchase of non-audit services from contractors who provide audit services;
  • anti-fraud policies, whistle-blowing processes and arrangements for special investigations; and
  • ACARC will annually review its own effectiveness by way of a self-assessment exercise and report the results of that review to the Assembly Commission. The Chairperson may consider commissioning an external review if considered necessary.

 

RIGHTS

ACARC may:

  • co-opt additional members for a period not exceeding a year to provide specialist skills, knowledge and experience; and
  • procure specialist ad-hoc advice at the expense of the Assembly Commission, subject to approval of the budget in advance by the Assembly Commission.

 

ACCESS

The Head of Internal Audit and the representative of the Northern Ireland Audit Office should have confidential access to ACARC and ACARC should hold bilateral meetings with each annually.

 

MEETINGS

ACARC will meet at least four times a year. The Chairperson of ACARC may convene additional meetings, as deemed necessary.

A minimum of two Members of ACARC will be present for the meeting to be deemed quorate. In the absence of the Chairperson, an Independent Member will preside. ACARC Members nominated to represent the Assembly Commission may nominate another Member of the Assembly Commission to attend on their behalf.

ACARC meetings will normally be attended by the Accounting Officer, the Director of Corporate Services, the Director of Legal, Governance and Research Services, the Director of Parliamentary Services, the Head of Internal Audit, the Head of Finance and a representative from the NIAO.

ACARC should act collectively as a Committee and make decisions by consensus where possible.

ACARC may ask any other officials of the Assembly Commission to attend to assist it with its discussions on any particular matter.

ACARC may ask any or all of those who normally attend but who are not members to withdraw to facilitate open and frank discussion of particular matters. All such meetings will be minuted.

The Assembly Commission, the Accounting Officer or Senior Management Team may ask ACARC to convene further meetings to discuss particular issues on which they want ACARC's advice.

At the discretion of the Chairperson, minor matters which require attention between scheduled meetings of ACARC may be dealt with by correspondence and reported to the next scheduled meeting.

 

INFORMATION REQUIREMENTS

For each meeting ACARC will be provided with:

  • A report summarising any significant changes to the Assembly Commission's strategic risks and a copy of the Corporate Risk Register;
  • A progress report from the Head of Internal Audit summarising:
    • Work performed (and a comparison with work planned);
    • Key issues emerging from the work of Internal Audit;
    • Management responses to audit recommendations;
    • Changes to the agreed Internal Audit Plan; and
    • Any resourcing issues affecting the delivery of the objectives of Internal Audit.
  • A progress report (written/verbal) from the NIAO representative summarising work done and emerging findings;
  • Copies of all Internal Audit Reports.

As and when appropriate, ACARC will also be provided with:

  • Proposals for the review of Terms of Reference of Internal Audit / the Internal Audit Charter;
  • The Internal Audit Strategy;
  • The Head of Internal Audit's Annual Opinion and Report;
  • Quality Assurance reports on the Internal Audit function;
  • The draft annual report and accounts of the Assembly Commission;
  • The draft Governance Statement;
  • A report on any changes to accounting policies;
  • The NIAO Audit Strategy;
  • The NIAO's Report To Those Charged With Governance;
  • A report on any proposals to tender for audit functions;
  • A report on co-operation between Internal and External Audit;
  • Relevant reports from other assurance providers, for example, Gateway reviews;
  • Reports on the management of major incidents, "near misses", fraud and whistleblowing cases and lessons learned;
  • The Assembly Commission's Risk Management Strategy; and
  • Stewardship Statements.

 

REGISTER OF INTERESTS

Members of ACARC will record in the ACARC Register of Interests any issues on which they might have a conflict or perceived conflict of interest. ACARC as a whole should consider how matters on which a member may have a conflict of interest will be handled.

Members of ACARC must declare any change of circumstances which may create a potential conflict of interest in respect of the performance of their functions and obligations to the Clerk/Chief Executive.

The Clerk/Chief Executive will hold all information in relation to potential conflicts of interest and this information may be disclosed to the public under the Freedom of Information Act 2000 if requested.

 

ADMINISTRATIVE SUPPORT

The Data Protection and Governance Officer (within the Directorate of Legal, Governance and Research Services) will provide administrative support services to ACARC. The Assembly Commission will be responsible for ensuring compliance with procedures and maintenance of a Register of Interests.

An agenda will be agreed with the Chairperson and papers will be circulated one week in advance of each meeting.

The Assembly Commission will endeavour to send draft minutes and a summary of action points to the Chairperson within ten working days of the meeting. The formal minutes will be posted on the Assembly website within five working days of their approval. Approved action points will be issued to relevant staff.

 

INDUCTION AND TRAINING

The Assembly Commission will prepare an induction pack for new members and all members are required to attend mandatory governance training, including risk management training.

 

REVIEW

ACARC will review its Terms of Reference annually and any proposed revisions will be submitted to the Assembly Commission for consideration and approval.

 

[1] Where appropriate and with due regard to NIAO's statutory role to carry out the external audit of the Northern Ireland Assembly Commission.