Government Actuary’s Department Audit and Risk Assurance Committee terms of reference
Published 25 January 2023
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1. Aims
1.1 The Audit and Risk Assurance Committee (ARAC) has been established to assure the Accounting Officer and the Management Board as to the adequacy of the processes for risk control, governance and financial management and reporting.
2. Members
2.1 The members of the ARAC are made up of 3 Non-Executive Board Members, one serving as Chair. At least 2 members must be present at an ARAC meeting for it to be quorate.
2.2 ARAC meetings will normally be attended by the Accounting Officer, the Finance Director, and representatives of the internal and external auditors.
2.3 The ARAC may ask any other staff members of GAD to attend to assist it with its discussions on any particular matter. The ARAC 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.
3. Meetings
3.1 The ARAC will meet at least 4 times a year, usually in March, June, September and December. The dates of meetings will be agreed by the ARAC. Meetings will be held either virtually or in person.
3.2 The Chair of the ARAC may convene additional meetings as deemed necessary. The Accounting Officer or Management Board may also ask the ARAC to convene further meetings to consider particular issues on which they want ARAC’s advice.
3.3 The ARAC may ask any other officials of the organisation to attend to assist it with its discussions on any particular matter.
3.4 The ARAC 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.
4. Access
4.1 Representatives of Internal and External Audit will have free and confidential access to the Chair of ARAC.
5. Reporting
5.1 The ARAC Chair will formally report back to the Accounting Officer and the Management Board after each meeting, highlighting key issues and items for approval.
6. Responsibilities
6. 1 The Audit and Risk Assurance Committee will support the Accounting Officer and the Management Board with their responsibilities for issues of risk, controls and governance-related issues, as determined necessary.
6.2 In particular, ARAC will advise on:
| Audit | Risk Assurance | Governance |
|---|---|---|
| Planned activity and results of both internal and external auditors | The identification and the assurances relating to the management of risk and corporate governance requirements for the organisation | Strategic processes for risk, control, governance and the content of the Governance Statement |
| Proposals for the provision of internal audit services; the service provided by the internal audit and whether it meets the standards specified in the Government Internal Audit Standards and the Head of Internal Audit’s annual opinion | Adequacy of and the overall provision of assurances gained from management reporting, assurance maps and other relevant sources | Accounting policies, the accounts and the annual report of the organisation, 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 external auditors |
| Reports received from Internal Audit and offer advice on any risks from these reports | Anti- fraud and anti-corruption policies and lessons learnt from any significant fraud/ irregular activity, raising concerns processes and arrangements for special investigations | The implications of new and revised accountabilities/ accounting issues on governance and risk management |
| Where appropriate, proposals for tendering for either Internal or External Audit services or for purchase of non-audit services from contractors who provide audit services | Information assurance matters, including cyber security policies and standards | |
| Adequacy and timeliness of management response to issues identified by audit activity, including external audit’s management letter | The ARAC will also periodically review its own effectiveness and report the results of that review to the Board |