Dáil Éireann Debate, Thursday - 27 February 2014
115. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform in view of the wide disparity of arrangements that apply across Departments regarding departmental audit committees, if he has any proposals for a more coherent and co-ordinated set of operational guidelines for the audit committees; and if he will make a statement on the matter. [10133/14]
View answerAudit Committees are an important part of the governance framework in departments and offices and the functions and contribution of audit committees are key in providing assurance to Accounting Officers regarding the adequacy and effectiveness of departmental internal control systems and procedures.
In the context of their internal audit arrangements, each Department and Office is required to have a formally-constituted Audit Committee (or in the case of small Offices that would not justify a separate Committee, they should have access to one, e.g. a Committee that covers a number of smaller Offices). Each Audit Committee is required to
- Operate under a written charter
- Have significant external representation (at least 2 members), including, in the normal course, representatives from the private sector with appropriate expertise. The chairperson of the Committee should come from outside the Department or Office.
- Prepare an annual report to the Accounting Officer reviewing its operations.
- Invite the Comptroller and Auditor General, or his nominee, to meet the Committee at least once a year.
The Department of Public Expenditure and Reform is responsible for the development of internal audit policy for Government Departments and Offices and is currently preparing an Audit Committee Guidance document to provide clarity on the role of the Audit Committee, and to define and promote best practice. Following an initial consultation process, a draft Audit Committee guidance document was circulated, in December 2013, to Accounting Officers, Chairs of Audit Committees and Heads of Internal Audit Units for observations. This guidance document is now at an advanced stage and will be finalised by the end March 2014.
