PAPER B

AUDIT PANEL - TERMS OF REFERENCE

Membership

To comprise 7 (4 Island First, 2 Con, 1 Lab) Select Committee members.

Terms of Reference

To make recommendations to the Resources Select Committee in relation to the following matters :-

1.        Internal Control

           a.        The maintenance of an effective system of internal financial control and management control.

           b.        The Council’s arrangements for securing value for money.

           c.         Corporate Governance

2.        Internal Audit

           a.        The effective operation of the Council’s Internal Audit.

           b.        The Internal Audit programme, initial consideration of major findings of the Council’s Internal Audit investigations and management’s response, and co-ordination between the Council’s Internal and External Auditors.

3.        External Audit

           a.        The effectiveness of the relationship with the Council’s External Auditors.

           b.        The process for the appointment of the Council’s External Auditors, as far as the Audit Commission’s rules permit.

           c.         The nature and scope of any audit by the Council’s External Auditors, before the audit commences, .

           d.        Any initial review of External Auditors reports and management letters.

Procedures

The Panel to be subject to the Select Committee Procedure Rules as contained within the Council’s Constitution save that it will not have the power of call-in and there will be no public or member question time. The quorum will be 4 members.

The Panel will meet in February, to consider the Internal Audit Plan and December, to consider the Management Letter, and on two other dates to be agreed by the Chairman of the Select Committee and the Panel.