Administration Estimate Audit Committee Terms of Reference

Remit

The Administration Estimate Audit Committee pursues its objectives and fulfils its responsibilities on behalf of the Commission and, as it deems appropriate, shall draw any matters arising within these terms of reference to the attention of the Commission.

Membership

The membership of the Committee shall be:

  • 3 MP members, including:
    - A Member of the House of Commons Commission
    - A Member of the Finance & Services Committee
  • 3 External Members, appointed by the Commission

The Chairman should be appointed by the Commission from amongst the external members of the Committee.

Objectives

The Audit Committee has been established to support the Accounting Officer in discharging his responsibilities under the Administration Estimate, particularly with regard to the maintenance of an effective system of internal control.  The Committee’s objective is to give assurance to the Accounting Officer on:

  • The effectiveness of the system of governance, risk management and internal control (referred to collectively as the “system of internal control”)
  • The integrity of the annual Resource Accounts
  • The work of the internal audit service
  • The external audit by the external auditor
  • Other matters as may be referred to it by either the Accounting Officer or the Commission

Responsibilities

Governance, Risk Management and Internal Control

The Committee is responsible for monitoring governance, risk management and internal control (“the system of internal control”).  This monitoring will include:

  • The effectiveness of the design and operation of the system of internal control
  • The development and operation of the system of risk management, in accordance with the overall risk management policy
  • The level and range of assurances on the management of risks
  • The adequacy and implementation of proposed management actions to improve the effectiveness of internal controls

Annual Resource Accounts

The Committee is responsible for reviewing the annual Resource Accounts before their submission to the Accounting Officer.  This review to include:

  • any significant changes in the accounting policies or treatments
  • major financial reporting judgements or estimates
  • consistency of the Annual Governance Statement 
  • resolution of any matters raised by the external auditor
  • significant adjustments resulting from the audit by the external auditor

Internal Audit

The Committee is responsible for monitoring the work of the internal audit service.  This includes:

• Involvement in the appointment of the Director of Internal Audit and the audit partner
• Agreement to the annual internal audit plan and monitoring of progress
• Consideration of the results and findings from internal audit work and the adequacy of management responses
• Consideration of the Director of Internal Audit’s annual report and opinion

External Audit

The Committee is responsible for monitoring and reviewing the work of the external audit.  This review to include:

  • Recommendations on the appointment and scope of work of the external auditor
  • Consideration of the external audit strategy
  • The results of the external audit work, including any reports to those charged with responsibilities for governance, and the adequacy of management responses
  • Representations made by management to the external auditor
  • Annual review of the external auditor’s independence and effectiveness

Further information

The House of Commons Estimate Audit Committees leaflet (PDF PDF 887 KB) provides a quick guide to the work and membership of the Committee.

For more information regarding the Administration Estimate Audit Committee please contact:

Louise Clarke - Committee Assistant
Tel: 020 7219 3758
Email: [email protected]

John-Paul Flaherty - Committee Secretary
Tel: 020 7219 3759
Email: [email protected]

For general enquiries please contact:

Governance Office
Tel: 020 7219 1707
Email: [email protected]