1. Purpose

1.1 This report outlines the areas of business that fall within the remit of this Committee.

The responsibilities of the Audit committee are well-defined, with clear delegations for the approval of the annual accounts.

It is important to highlight however that Members have a clear responsibility to integrate strategy and service delivery within the scope of the Scrutiny Committee’s remit. Additionally, Members contribute to achieving the priority outcomes set forth in the 2024 - 2028 Corporate Plan.

It is therefore proposed that where scrutiny of performance and allocation of resources is required this will be reported to the Audit and Scrutiny Committee.

1.2 This is in line with the decisions taken at Council on 13 May 2024 with regards to good governance changes and the Scheme of Delegation.

The focus of this is to ensure that Council and Committees, through all Members, can drive the strategic direction, resource allocation against priorities and compliance where needed, but enabling officers to deliver services on a day-to-day basis in a streamlined and seamless way.

1.3 Whilst the distinct functions of Audit and Scrutiny sit within the remit of a single Committee, it is important to acknowledge however they are two committees with two distinct areas of responsibility.

It is important to acknowledge when each Committee is in operation and define the role clearly.

2. Background

2.1 The committee’s purpose is to provide an independent and high-level focus on the adequacy of governance, risk and control arrangements.

2.2 The following are the service areas that fall within the remit of the Audit and Scrutiny committee:

2.2.1 Key Functions (Audit)

• Annual Governance Statement
• Annual sign off for accounts
• To consider the Report to those charged with governance
• Value for Money (VFM) approach
• Risk management and assurance, internal controls
• Fraud, Counter Fraud, Raising Concerns
• Oversight of the Internal Audit provision
• Review of the internal audit reviews and actions.

2.2.2 Key Service Areas (Audit)

• Internal Audit
• Compliance

2.2.3 Current delegated Powers (Audit)

• Writing off a loss of money (including bad debts) and loss of stores, obsolete equipment and materials in accordance with Financial Management Policy to the values determined by Council policy (any individual amount in excess of £3,000).
• Approving the Annual Statement of Accounts.
• Approving (but not directing) the internal audit strategy and annual plan and for receiving assurance over the effectiveness of systems, risk management and internal control.

2.2.4 Key Functions (Scrutiny)

• Deep dive scrutiny reviews into specific council services
• Scrutiny of identified service areas prior to decision making

2.2.5 Key Service Areas (Scrutiny)

• All services may fall within this remit.

3. Key Issues for Consideration

3.1 The role of the Audit Committee and Scrutiny Committee combines two separate functions into one Committee, though the meeting takes effect in two distinct parts.

3.2 With regards to the Audit role which is set in legislation and has specific responsibilities which supports important governance assurance, the following is an outline of responsibilities:

• Approve, review, and monitor the Internal Audit Strategy.
• To approve the Internal Audit Charter
• Consider specific Internal Audit reports.
• Consider any recommendations from reports on investigation of fraud
• Monitor the actions taken in response to Internal Audit recommendations.
• Receive the annual report from the Audit provider (internal) outlining Internal Audit activity during the year and an opinion on the level of assurance as to the Council’s corporate governance, risk management and internal control arrangements.
• To consider any impairments to the independence or objectivity of internal audit and to approve any safeguards to limit such impairments.
• Consider specific reports from the external Auditor and other inspection/assurance agencies.
• Monitor the actions taken in response to recommendations of external bodies.
• Consider the external Auditor’s Annual Letter, relevant reports and the ‘Report to Those Charged with Governance.’
• Consider the effectiveness of the Council’s risk management arrangements, the control environment, and associated anti-fraud and anti-corruption arrangements.
• Write off any debt in excess of £3,000 where it is recommended to do so
• Monitor the effective development and operation of risk management strategies and policies, reviewing the Corporate Risk Register and associated arrangements and action plans.
• Approve the Annual Accounts.
• To report to those charged with governance on the committee’s findings, conclusions and recommendations concerning the adequacy and effectiveness of the governance, risk management and internal control arrangements.

With regards to the scrutiny role, this is an important component of ensuring that Mid and East Antrim Council is making decisions that are open, transparent, and following the values and behaviours expected in local government decision making.

It should be seen and operate as a critical friend to the decision making in the interests of improving services for our residents and communities.

Based on both planned and responsive work the following role therefore follows:

• A programme of scrutiny reviews to consider service delivery against good practice and expected performance (2 or 3 per year), set out at the start of each municipal year.
• Responding to issues of challenge where formal or significant but informal – requiring relevant examination of issues and reporting with recommendations.