AUDIT & RISK COMMITTEE
Terms of Reference
changes agreed at Annual Council 19 May 2022)
Audit & Risk Committee is a key component of the
Council’s corporate governance framework. The Committee
reports to the Council and its purpose is to provide those charged
with governance independent assurance on the adequacy of the risk
management framework, the internal control environment and the
integrity of the financial reporting and governance
fulfils the role of ‘the Board’ for the purposes of the
Public Sector Internal Audit Standards.
Terms of Reference of the Committee will comply with Part 4a of the
Constitution unless explicitly detailed below.
The Committee shall comprise nine Members, made up of eight Non- Executive Elected
Councillors and one Independent Person. A quorum of at least three
Councillors will be required at all meetings. The Independent
Member shall be a non-voting co-optee of the Committee.
The Committee must remain apolitical, displaying
unbiased attitudes, treating auditors, officers, the executive and
The Director of Finance (S151) or their nominated
officer(s) and the designated Head of Internal Audit Service shall
normally attend meetings. There is a standing invitation to the
Council’s appointed External Auditor to attend all
officers who will attend as required, including at the request of
of meetings and agendas
shall be held not less than four times a year.
The duties of the Committee shall be as set out in
the annexed schedule to these Terms of Reference.
To support and assist Committee members undertaking
their duties and extending their knowledge, regular briefings or
training will be provided by officers.
The Committee has the responsibilities detailed in
Annex 1. The Committee is authorised by the Council to investigate
any activity within its terms of reference.
It is authorised to seek any information it requires
from any officer and all officers are directed to co-operate with
any request made by the Committee. The Chair will advise the
Chief Operating Officer as the Head of Paid Service if it has exercised
this authority to seek information (other than routine information)
from any officer, setting out the information required and the
circumstances underlying the request.
The Committee is authorised by the Council, if
considered necessary, to secure the attendance of third parties
with relevant experience and expertise provided that the Chair
notify the Chief Operating Officer as the Head of Paid Service
before any fees for such attendance are agreed.
The Committee will undertake an annual review of its
effectiveness (including where it has added value and supported
The outcome of this annual review and the
Committee’s activity will be reported to the Council each
Duties of the Audit & Risk Committee
fulfil the role of ‘the Board’ for the purposes of the
Public Sector Internal Audit Standards(the PSIAS).
• To review
and approve: -
§ The Internal Audit
which defines the purpose of the internal audit
§ The risk-based internal audit
plan, including resource requirements.
§ The Head of Internal Audit
Service’s annual report containing an opinion on the overall
adequacy and effectiveness of the Council’s control
environment, and conformance to the PSIAS.
receive regular reports on progress against the internal audit
plan, containing activity undertaken, summaries of key findings,
issues of concern and action in hand.
review conformance to the principles of the CIPFA Statement on the
Role of the Head of Internal Audit in Public Service Organisations, and to support
any improvements required.
contribute to and support an external quality assessment of the
internal audit function which is a requirement of PSIAS to take
place at least once every five years.
review any proposals made in relation to the appointment of
external providers of internal audit services and to make
consider, comment upon and note the arrangements chosen by the
Council to select and appoint its statutory external
review the External Auditor’s disclosure of independence and
objectivity. To satisfy itself that no issues with compliance with
ethical standards or problems with audit quality have been
consider and note the annual audit fees letter and the assumptions
supporting the fees.
consider the scope and depth of all external audit plans, reports
and audit risk assessments.
consider the External Auditor’s ISA260 Report to ‘Those
Charged with Governance’. This contains:
§ key findings arising from the
audit of the Council’s financial statements;
§ the Auditor’s assessment
of the Council’s arrangements to secure value for money
(VFM)in its use of resources; and
§ the requirement for members of
the Committee to authorise the Director of Finance to sign the
letter of representation to the External Auditor from the Council
in connection with the audit of the Council’s financial
note the External Auditor’s annual report on the claims and
returns certified for the Council.
ensure that non-audit work by the External Auditor is in accordance
with the Council’s Policy for Engagement of External
Auditors for Non-Audit Work and report any such instances to
Fraud and Investigations
review and approve, on a triennial basis (unless significant
changes in legislation or circumstances dictate otherwise),the
Council’s policy and procedures for: -
i. Anti-Fraud (including
Bribery and Corruption)
note the outcomes of any review of the Council’s conformance
to the CIPFA Code of Practice on Managing the Risk of Fraud and
receive and note reports on the performance of the counter fraud
function and outcomes
from the Council’s participation in the National Fraud
consider regular reports on the Council’s application of the
Regulation of Investigatory Powers Act (RIPA) and the outcomes of
any inspections and approve the adoption of any related
• To review
and approve the annual statutory statement of accounts and the annual Letter of
Representation on behalf of the Council.
• To bring to the attention of the Council any
concerns arising from the financial statements or from the
• To receive periodic reports providing
updates on accounting and financial developments.
Management and Insurance
review and challenge the adequacy and effectiveness of the
Council’s overall risk management framework, specifically
and approve, on an annual basis, the Council’s Corporate Risk
Management Policy Statement& Strategy.
ii. Consider and
approve, on an annual basis, the Council’s Corporate Business Continuity
Management Policy Statement and Strategy, ensuring it
is compliant with the statutory duties required by the Civil
Contingencies Act 2004and continues to align to international and national
standards and good practice
reports in respect of the status of key current and emerging risks
and internal controls relating to those risks, including the
Operational and Strategic Risk Registers and partnerships with
and note the annual report on the
Council’s insurance arrangements and its claims
and Assurance Frameworks
satisfy itself that the Council’s assurance statement
including the Annual Governance Statement, properly reflect the
risk environment and any actions required to improve it and
demonstrate how governance supports the achievement of the
Council’s objectives. The Committee’s responsibilities
the adequacy of the Council’s assurance framework through the
annual review of its system of internal control.
ii. Review and approve
the Council’s Local Code of Corporate Governance prepared in accordance
with the CIPFA/SOLACE Good Governance Framework and the statutory
requirement for producing an Annual Governance
any reports providing updates on assurance, risk or governance
consider an annual report on complaints, including the Local
Government and Social Care Ombudsman’s annual review letter
consider and decide on appropriate actions relating to the
Council’s compliance with its own and other published or
regulatory policies, Acts, standards and controls.
consider ad-hoc LGSCO reports.
receive and note the annual report setting out the Council’s
performance against the Procurement Plan and compliance with the
Contract Procedure Rules(including data on waivers).
consider any proposals for changes to the Rules to be made to
Full Council and to
review any changes to the Rules made by the City Barrister or any
changes to thresholds.
seek assurance that the Council has appropriate arrangements to
identify and manage risks, ensure good governance and obtain
assurance on compliance in its procurement activity.
consider, approve or make recommendations in respect of any other
matters referred to it by the City Mayor, Chief Operating
Officer(as the Head of Paid Service)or a Director or any Council
relevant matters reserved for Member-level decision as detailed in
Rules of Procedure.
Leicester City Council
115 Charles Street
(0116) 454 6350