Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Question 137: To ask the Minister for Communications, Marine and Natural Resources if he will provide a list of the membership of his Department's audit committee; and if he will make a statement on the matter. [17018/06]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

The Department has had in place an Audit Committee since July 1999. The Committee is chaired by an external member and there are two other external members on the committee (see list of current members below). In addition there are three internal staff members including the Chief Engineer and two Assistant Principal Officers. There is currently one vacancy to be filled. The Committee is set up under a written charter dated and signed by the Secretary General and the then chair of the Committee in February 2003 (see copy below). The Committee has met 37 times to date and has recently presented to the Secretary General, a formal report for 2005.

Department of Communications, Marine and Natural Resources

Audit Committee Charter and Terms of Reference

This document sets out the Charter and Terms of Reference of the Audit committee of the Department of Communications, Marine and Natural Resources.

Role of the Audit Committee

1.The Audit Committee is part of the on-going systematic review of the business control and corporate governance procedures within the Department. It considers the adequacy of the control framework within the Department of Communications, Marine and Natural Resources and such organisations under its aegis. The role of the Audit Committee is to oversee and advise on matters relating to (a) the operations and development of the internal audit function; (b) the annual audit plan ensuring that it complies with the stated role of internal audit in relation to public funding (National and EU), (c) the business control and risk management environment, and (d) the relationship with external audit and other relevant consultancies.

2.The Audit Committee is not responsible for any executive function and is not vested with any executive powers.

Membership

3.The Audit Committee shall consist of a Chair and not less than four ordinary members who shall be appointed by the Secretary General by virtue of their experience in fields of expertise relevant to the function of the Committee.

4.Appointments to the Committee shall normally be, unless otherwise decided by the Secretary General, for a period of three years but should not exceed a period of five years.

Duties of the Audit Committee

5.The duties of the Audit Committee shall be:

∙To consider the draft annual Internal Audit Plan.

∙To monitor implementation of the Plan.

∙To protect the independence of the Internal Audit Function, within the Department.

∙To review the significant findings and the recommendations of the Internal Audit Unit and to monitor the action taken by management to resolve any issues that have been identified.

∙To monitor the performance of the Internal Audit Unit, within the Department.

∙To approve a charter for Internal audit which clearly defines its mission, authority, roles, responsibilities and other reporting relationships.

∙To request special reports from Internal Audit as considered appropriate.

∙To advise and make recommendations to the Secretary General and the Management Committee on any matters pertaining to the internal audit function within the Department that the Committee considers necessary or appropriate including its overall effectiveness, organisation, resources, training, use of technology, etc.

∙To communicate with the Secretary General and Management Committee in relation to any significant shortfalls in the business control and/or risk management environments that 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 published in their annual report on the Appropriation account and other C&AG 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 in relation to co-financed expenditures within this Department.

∙To review any Value for Money Reports that are undertaken by Internal Audit or any other Division within the Department.

Meetings

6.Not less than four meetings of the Audit Committee shall take place in each calendar year.

7.A quorum of five with no less than two external members will be required for each meeting.

8.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.

9.The Head of Internal Audit and such other officials from the Department as the Committee may require shall attend Committee meetings.

10.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 to the Secretary General.

Reporting

11.Within three months of the end of each calendar year, the Audit Committee shall formally report in writing to the Secretary General outlining its activities during the year together with such advice and recommendations, as it may deem appropriate.

Authority/Independence

12.The Audit Committee shall exercise an advisory role in relation to its duties and functions within the Department.

13.The Committee may, following agreement with the Department, obtain outside legal or other independent professional advice and secure the attendance at Committee meetings of outsiders with relevant experience and expertise, if it considers this necessary.

14.The Audit Committee shall be independent in the performance of its duties and the Committee and its members shall not be subject to the direction of any person in the performance of their duties.

15.The members of the Audit Committee shall be fully briefed and kept up to date on any significant matters relating to their role and duties.

16.The Audit Committee shall have the right of access to the Secretary General.

Amendment of Charter

17.The Charter may be amended or updated in joint consultation between the Secretary General and the Audit Committee.