Richard Bruton (Dublin North Central, Fine Gael)
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Question 365: To ask the Minister for Communications, Marine and Natural Resources the membership of his Department's audit committee; the chairperson and the number of occasions on which it has met in the past twelve months and the agenda of the meetings. [32569/05]

Noel Dempsey (Meath, Fianna Fail)
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The Department has had an audit committee, chaired by an external member, since July 1999. There are three other external members and three internal staff members, including the chief engineer and two assistant principal officers, on the committee. The committee was established under a written charter dated and signed by the Secretary General and the Assistant Secretary General, who was the chair of the committee at that time, in February 2003. The committee meets five times per annum and presents a formal report to the Secretary General on the business of the committee each year. The following table gives details of the current membership of the audit committee:

Members of the internal audit unit attend audit committee meetings to give detailed background information that is requested from time to time by the members of the committee on various issues. The audit committee has met on four occasions so far in 2005, on Thursday, 3 March; on Monday, 30 May; on Thursday, 23 June; and on Thursday, 13 October. It is expected that the committee will meet once more before the end of the year, on 2 December next.

The agenda for the departmental audit committee meeting held on Thursday, 3 March at 2.30 p.m. was (1) the adoption of the minutes of the previous meeting and any matters arising; (2) a presentation by the assistant secretary, Dr. Cecil Beamish; (3) risk assessment; (4) the draft audit plan for 2005; (5) the implementation of the Mullarkey report; (6) the presentation of the training audit and audit of carryover scheme reports for discussion; and (7) any other business — the network for internal auditors in State sponsored bodies.

The agenda for the departmental audit committee meeting held on Monday, 30 May at 2.30 p.m. was (1) the adoption of the minutes of the previous meeting and any matters arising; (2) risk assessment; (3) the audit plan for 2005; (4) the presentation of the ICT audit, helicopter audit and fleet renewal audit reports for discussion; (5) the report to the Secretary General on the enhancements to financial control procedures; and (6) any other business — the IPA/IAA SSB internal audit network, the inaugural meeting of which took place on 23 March.

The agenda for the departmental audit committee meeting held on Thursday, 23 June at 2.30 p.m. was (1) the adoption of the minutes of the previous meeting and any matters arising; (2) risk assessment; (3) the presentation of the ICT audit, fleet renewal audit, marathon, 5% Údarás na Gaeltachta, aquaculture and miscellaneous reports for discussion; and (4) the report to the EU Commission on EU Structural Funds.

The agenda for the departmental audit committee meeting held on Thursday, 13 October at 2.30 p.m. was (1) the adoption of the minutes of the previous meeting and any matters arising; (2) risk assessment; (3) the presentation of the miscellaneous audit, sustainable energy review, Killybegs review, training review, foreshore review and aquaculture review reports for discussion; and (4) the Article 13 report to the EU Commission on EU Structural Funds expenditure for 2004.

I will now set out the charter, terms of reference and role of the audit committee of the Department of Communications, Marine and Natural Resources. The audit committee is part of the ongoing systematic review of the Department's business control and corporate governance procedures. It considers the adequacy of the control framework within the Department of Communications, Marine and Natural Resources and organisations under its aegis. The role of the audit committee is to advise on matters relating to the operations and development of the internal audit function; to ensure that the annual audit plan complies with the stated role of internal audit in respect of national and EU funding, to oversee the business control and risk management environment, and to advise on the relationship with external audit and other relevant consultancies. The audit committee is not responsible for any executive function and is not vested with any executive powers. The audit committee consists of a chair and not less than four ordinary members who are appointed by the Secretary General by virtue of their experience in fields of expertise relevant to the committee's functions. Appointments to the committee are normally, unless otherwise decided by the Secretary General, for a period of three years and do not exceed a period of five years.

The duties of the audit committee are to consider the draft annual internal audit plan; to monitor the implementation of the plan; to protect the independence of the Department's internal audit function; to review the significant findings and recommendations of the internal audit unit; to monitor the action taken by management to resolve any issues which are identified; to monitor the performance of the Department's internal audit function; to approve a charter for internal audit that clearly defines its mission, authority, roles, responsibilities and other reporting relationships; to ask for special reports from the internal audit function as considered appropriate; to advise and make recommendations to the Secretary General and the management committee on matters pertaining to the Department's internal audit function that the committee considers necessary or appropriate including its effectiveness, organisation, resources, training and use of technology; to communicate with the Secretary General and the management committee on any significant shortfalls in the business control and-or risk management environments which come to the attention of and are of concern to the audit committee; to consider the findings and comments of the Comptroller and Auditor General in his annual report on the appropriation account and his other reports; to consider and where appropriate advise on the procedures and policies used in the preparation of the annual appropriation account; to consider any reports from the European Court of Auditors or the European Commission about co-financed expenditures within the Department; and to review any value-for-money reports which are undertaken by the internal audit division or any other division in the Department.

Not less than four meetings of the audit committee take place in each calendar year. A quorum of five members, with no less than two external members, is required for each meeting. If a vote is required on any issue, a simple majority of all the members present, including the chair, will carry the motion, with the chair having a casting vote in the event of a tie. The head of internal audit and such other officials from the Department as the committee may require shall attend committee meetings. The minutes of the meetings shall be approved by the chair and circulated as early as possible after the meeting to members of the audit committee and the Secretary General. Within three months of the end of each calendar year, the committee formally reports in writing to the Secretary General, outlining its activities during the year and such advice and recommendations as it may deem appropriate. The committee exercises an advisory role in relation to its duties and functions within the Department.

The audit committee may, following agreement with the Department, obtain outside legal or other independent professional advice and secure the attendance at committee meetings of outside interests with relevant experience and expertise, if it considers it necessary. The committee is independent in the performance of its duties. The committee and its members are not subject to the direction of any person in the performance of their duties. The members of the committee are fully briefed and kept up to date on any significant matters relating to their role and duties. The committee has the right of access to the Secretary General. The charter may be amended or updated in joint consultation between the Secretary General and the committee.