Audit Committee

Remit
Composition

Contact : Mrs Ruth MacLure
Telephone : 01224 273239
Fax : 01224 273984
Email : r.m.maclure@abdn.ac.uk

Remit

Audit

To provide the University Court with advice on the Internal and External auditors’ assessment of the effectiveness of the University’s financial and other internal control systems, including controls specifically to prevent and detect fraud or other irregularities as well as those for securing economy, efficiency and effectiveness
To advise the Court on its compliance with corporate governance requirements and good practice guidance, and to review the University’s Statement of Corporate Governance
To advise the Court on compliance with the Code of Audit Practice as laid down by the Funding Council and with the University Code of Audit Practice
To examine and report on any matters referred to it by Court, making recommendations as may be appropriate
To produce an annual report to the Court
To review reported cases of impropriety to establish whether they have been appropriately handled

Internal Audit

To advise the Court on the terms of reference for the internal audit service (IAS)
To advise the Court on, the criteria for selection, appointment, or reappointment and remuneration, or removal of the internal audit provider
To review the scope, efficiency and effectiveness of internal audit considering the adequacy of the resourcing of internal audit and advising the University Court on these matters
To ensure compliance with recommendations made by the Auditors reviewing the IAS’s monitoring of management action on the implementation of recommendations reported in internal audit assignment reports and internal audit annual reports
To consider salient issues arising from internal audit assignment reports, progress reports and management’ response thereto and informing the University Court thereof
To advise the University Court of the Committee’s approval of the basis for and the results of the internal audit needs assessment and the strategic and operational planning processes
To approve the criteria for grading recommendations in assignment reports as proposed by the Head of the Internal Audit Service
To inform the University Court of the Committee’s approval of the internal audit service’ annual Report
To respond appropriately to notification of fraud or other improprieties received from the Head of the IAS or other persons
To monitor the effectiveness of the IAS and the external audit provision
To ensure and monitor appropriate liaison and co-ordination between internal and external audit and between the Committee

External Audit

To advise the Court on the selection, appointment, annual reappointment and remuneration, or removal of the external audit provider, and the scope of their work
To review the external auditor’s Management Letter and to monitor management’s action on the implementation of the agreed recommendations contained therein
To consider the institution’s annual financial statements and the external auditors’ report prior to submission to the Court
To advise the Court of salient issues arising from the external auditor’s management letter and any other external audit reports, and of management’s response thereto
To review the external audit strategy and plan
To consider the objectives and scope of any non-statutory audit work undertaken by the external auditor’s firm and advising the University Court of any potential conflict of interest

Value For Money (Vfm)

To advise the Court on a programme of Value for Money (VFM) reviews and to provide guidance on the most appropriate agents to undertake individual assignments
To establish and oversee a review process for evaluating the effectiveness of the University’s VFM arrangements for securing the economical, efficient and effective management of the institutions resources and the promotion of best practice and protocols, arising from internal and relevant external VFM studies of best practice, and the reporting to the University Court thereon

Other

To review and advise the University Court of relevant reports from the Council and NAO and successor bodies and, where appropriate, management’s response thereto

Composition

The Audit Committee is a committee of the Court, composed of two lay members of Court (including Convener) and two external members appointed by Court on the advice of the Nominating Committee in consultation with the two lay members.

In order to ensure independence and objectivity, members should not have executive authority and should not normally be members of the Finance Committee.

The Committee may from time to time co-opt additional members, who must be independent and must not be connected in any way with the provision of financial services to the University.