1. The Audit, Risk, and Governance Committee is a key component of the Lancashire Combined Fire Authority’s governance framework. The committee’s purpose is to review and scrutinise the Authority’s financial affairs; review and assess the Authority’s risk management, internal control and governance arrangements; review and assess the economy, efficiency and effectiveness with which resources have been used in discharging the Authority’s functions; and make reports and recommendations to the Authority in relation to these matters.
2. The powers of this committee are set out below. They are delegated to this committee by the Authority and (unless stated otherwise) they are empowered to make final decisions on matters within their remit. Minutes of this committee should be sent to the full Authority at its next meeting, or a subsequent one if that is not possible, for noting. In exceptional circumstances, the committee may instead refer issues to the full Authority for a decision.
3. Consider and approve all matters relating to internal and external audit, including, but not limited to:
3.1 Internal Audit Monitoring Report.
3.2 Internal Audit Plan.
3.3 Internal Audit Annual Report (includes Audit Charter and Quality Assurance and Improvement Programme and National Fraud Initiative).
3.4 External Audit - Letter of Representation.
3.5 External Audit - Audit Findings Report.
3.6 External Audit - Audit Report and Sector Update.
3.7 External Audit - Auditors Annual Report.
3.8 External Audit - Understanding How the Audit Committee Gains Assurance from Management.
3.9 External Audit - Audit Plan.
3.10 External Audit - Interim Audit Findings Report.
3.11 Appointment of External Auditors (five-yearly).
3.12 Inspection agency reports.
3.13 Expenditure outside of budget (up to £200,000 in each financial year).
4. Consider and approve all matters relating to internal and external risk, including but not limited to:
4.1 Receiving and proposing action on any reports related to whistleblowing complaints.
4.2 Considering the effectiveness of the Authority’s risk management arrangements, the control environment and associated anti-fraud and anti-corruption arrangements.
4.3 Receiving assurances that action is being taken on risk related issues identified by auditors and inspectors.
4.4 Being satisfied that the Authority’s assurance statements properly reflect the risk environment and identify the proportionate actions required to improve it.
4.5 Receiving and proposing action on any reports related to any other risk to the governance of or public confidence in the Authority.
4.6 Monitoring business continuity management systems.
5. Review of contract standing orders, financial regulations, (procedural) standing orders and the scheme of delegation. These form the bulk of the Authority’s constitution (along with the terms of reference of the various committees and other miscellaneous documents). Minor and inconsequential changes including inflationary increases in financial thresholds and limits, or changes that are mandated by law, or some other guidance or best practice that must or should be followed, can be authorised by the Monitoring Officer under delegated powers. This committee will make final recommendations on any more substantial changes to the full Authority.
6. Consider and approve the Annual Governance Statement (part of year end processes).
7. Monitor and ensure compliance with the Internal Governance and Assurance Fire Standard.
8. Receive the Compliments and Complaints Report.
9. Oversee financial management and value for money by considering and approving the annual accounts and work of external audit (noting that the Resources Committee will also monitor the financial position throughout each financial year, including the year-end out-turn position) including the following documents:
9.1 Accounting estimates.
9.2 Financial statements update.
9.3 Statement of Accounts.
9.4 Revisions to the Statement of Accounts.
10. Advise the Authority on any revisions to the Members’ Code of Conduct through monitoring its operation and overall effectiveness.
11. Determine the truth of allegations made under the Members’ Code of Conduct Procedure and impose any necessary sanctions.
12. Refer any appeal from this process to the Authority’s Appeals Committee.
13. The committee may also consider any items referred to it by the Authority or Strategy Forum.
14. This committee ordinarily meets four times each year. The dates of these meetings will usually be set at the annual general meeting of the full Authority but can be amended by the Chair of this committee, in consultation with the Vice-Chair and for good reason.
15. When dealing with complaints made under the Members’ Code of Conduct Procedure, the committee is empowered to set additional meetings as necessary to deal with these issues expeditiously.
16. The number of seats for voting members is seven drawn from the full Authority. Political balance rules and regulations apply. A member cannot sit on both the Audit, Risk and Governance Committee and the Resources Committee.
17. In addition, there will be one co-opted independent member. This co-opted independent member will provide technical expertise and specialist subject matter knowledge in relation to the matters brought to this committee under the audit, risk, governance and financial headings above. They will not have voting rights with regards to these matters.
18. For matters relating to standards (the Members’ Code of Conduct), the co-opted independent member will sit as Chair and will have voting rights and in case of equality of votes, a second or casting vote.
19. This committee will only be quorate and therefore constitutionally able to conduct business and make decisions if there are at least three voting members present. If the co-opted independent member has not in fact been appointed or is not present, this shall not affect quoracy. Should the committee be inquorate it shall stand temporarily adjourned for 30 minutes and if, thereafter, there is still not a quorum the meeting shall stand finally adjourned. At the point of adjournment, or subsequently, the Chair may agree arrangements for the meeting to be reconvened.
20. It is also recommended that members of the committee (and any substitutes) attend appropriate training where possible.
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