Corporate Audit Committee Chair’s Report to the Principal Accounting  Officer and the Corporate Management
12 pages
English

Corporate Audit Committee Chair’s Report to the Principal Accounting Officer and the Corporate Management

-

Le téléchargement nécessite un accès à la bibliothèque YouScribe
Tout savoir sur nos offres

Description

Corporate Audit Committee Chair’s Report to the Principal Accounting Officer and the Corporate Management BoardJuly 2008Corporate Audit Committee | e | Chair’s Report to the Principal Accounting Officer and the Corporate Management Board ContentsParagraphs PagesIntroduction 1-2 1Terms of Reference 3 1Corporate Audit Committee Membership 4-7 1Other Ministry of Justice Audit Committees 8-9 2Corporate Audit Committee Activity and 10-11 2Observations Corporate Audit Committee Assurance 12-15 6Acknowledgements 16 7Terms of Reference Annex A 8Value for Money Reports Annex B 9iiChair’s Report to the Principal Accounting Officer and the Corporate Management Board | Corporate Audit CommitteeIntroduction. As Chair of the Corporate Audit Committee, I am pleased to present the Committee’s annual report, which has been produced in line with the latest Treasury guidance. The Corporate Audit Committee’s purpose is to provide support and advice to the MoJ Principal Accounting Officer and the Corporate Management Board on their responsibilities for governance, risk management and internal control. This report covers Corporate Audit Committee activity since the last report to the Justice Board in July 2007.2. The Committee plans to publish its annual report after its consideration by the Corporate Management Board on 29 July 2008.Terms of Reference3. The Committee’s Terms of Reference are informed by HM Treasury’s Audit Committee Handbook, which defines ...

Sujets

Informations

Publié par
Nombre de lectures 153
Langue English
Corporate Audit Committee Chair’s Report to the Principal Accounting Officer and the Corporate Management Board
July 2008
Corporate Audit Committee|Chairs Report to thePrincipal Accounting Officer and the Corporate Management Board
Contents
Introduction
Terms of Reference
Corporate Audit Committee Membership
Other Ministry of Justice Audit Committees
Corporate Audit Committee Activity and Observations
Corporate Audit Committee Assurance
Acknowledgements
Terms of Reference
Value for Money Reports
ii
Paragraphs
1-2
3
4-7
8-9
10-11
12-15
16
Annex A
Annex B
Pages
1
1
1
2
2
6
7
8
9
Chair’s Report to the Principal Accounting Officer and the Corporate Management Board| Corporate Audit Committee
Introduction
1.
2.
As Chair of the Corporate Audit Committee, I am pleased to present the Committee’s annual report, which has been produced in line with the latest Treasury guidance. The Corporate Audit Committee’s purpose is to provide support and advice to the MoJ Principal Accounting Officer and the Corporate Management Board on their responsibilities for governance, risk management and internal control. This report covers Corporate Audit Committee activity since the last report to the Justice Board in July 2007.
The Committee plans to publish its annual report after its consideration by the Corporate Management Board on 29 July 2008.
Terms of Reference
3.
The Committee’s Terms of Reference are informed by HM Treasury’s Audit Committee Handbook, which defines the policy principles for Audit Committees in central government bodies. The Committee’s terms of reference are reproduced at Annex A. The Committee acts in an advisory capacity and has no executive powers. MoJ Internal Audit provides the Audit Committee secretariat.
Corporate Audit Committee Membership
4.
5.
6.
The Committee’s membership is as follows:
Anne Bulford
Professor Georges Selim
James Turner
Jane Tozer MBE
Non-Executive member of Corporate Management Board and Audit Committee Chair from 21 April 2008
Non-Executive member of Justice Board and Audit Committee Chair until 9 April 2008
Independent external member
Independent external member
The Committee’s Chair is a Non-Executive member of the Corporate Management Board. The other membership is composed of independent external members. Regular attendees at Committee meetings are:
Marco Pierleoni
Nick Sharman
Alan Rummins/ Derek Darnell
Director General, Finance & Commercial
Head of Finance Operations
Internal Audit
1
Corporate Audit Committee |Chair’s Report to the Principal Accounting Officer and the Corporate Management Board
7.
Eddie Fitzgerald/ Paul Curtis Paul Keane Rahini Mylvaganam
Aileen Murphie
Corporate Risk and Assurance
National Audit Office
National Audit Office
National Audit Office
Senior managers are invited to attend Committee meetings to assist on matters of specific interest or relevance to the discharge of the Committee’s responsibilities. In the period covered by this report, these included Roger Hill (Director of Probation), Sam Sundaram (Commercial Director), Loveday Ryder (Divisional Head of Change), Karen Wheeler (HMCS Change Programme Director), and Martin Jacobs (Finance Service Management Organisation).
Other Ministry of Justice Audit Committees
8.
9.
Arrangements for promoting information exchange and sharing matters of common interest have operated over the reporting period between the Chair of the Corporate Audit Committee and those for the Ministry’s Executive Agencies/ NDPBs and for the Scotland and Wales Offices. These arrangements include circulation of Audit Committee minutes to the Corporate Audit Committee and periodic meetings of the Chairs of the MoJ Audit Committees to consider matters of mutual interest and common applicability. The Chairs of the Ministry’s Audit Committees met in July 2007 to consider additional annual reporting requirements and in February 2008 to discuss audit issues raised in regard to services provided by Liberata and to be briefed on the future role required of Audit Committees in relation to Information Assurance - personal data security.
The Corporate Audit Committee and other Audit Committees will need to seek assurance on the effective management of information risks for the 2008-09 financial year onwards. Accounting Officers will, additionally, have to report explicitly on information risk as part of their Statement on Internal Control. To help discharge their responsibilities the Audit Committees will need to consider application of the latest Cabinet Office guidance, which will complement existing expert guidance on Information Assurance and on handling of ‘restricted’ or ‘confidential’ material.
Corporate Audit Committee Activity and Observations
10.
2
The Corporate Audit Committee met in October and December 2007, and April and July 2008. It has reviewed: the Ministry’s accounts; risk management arrangements; audit plans and activity; management responses to audit findings and recommendations; and the Principal Accounting Officer’s annual Statement on Internal Control including the disclosure of significant control issues.
Chair’s Report to the Principal Accounting Officer and the Corporate Management Board| Corporate Audit Committee
11. Committee activity and observations are as follows: Accounts Reviewed  • 2007/08 Resource Accounts 11.1 The Committee reviewed the Accounts including the Statement on Internal Control, NAO’s ISA 260 report and the annual internal audit report on 10 July. The Committee complimented the progress made by all parties to have reached this point, especially given the complexities created following the machinery of government change. The Committee noted the reported adjusted errors and unadjusted misstatements reported by NAO and the letter of representation. The Committee recognised the risk to achieving pre-Summer recess completion of the accounts relating to the provision of audit certificates from local authority pension scheme auditors and noted the work that was taking place to try and resolve this issue. The Committee recommended that the Accounts should be signed subject to the resolution of this issue.  • 2007/08 Judicial Pensions Scheme Accounts 11.2 The Committee reviewed the Accounts, including the Statements on Internal Control and the external auditors ISA 260 report on the 10 July. The Committee noted there were no adjusted errors and unadjusted misstatements reported by the external auditors and the letter of representation. The Committee recommended that the Accounts should be signed subject to resolution of an outstanding issue raised at its meeting that could affect the timing of publication.  • 2007/08 White Paper Accounts - Funds in Court Parts A and C 11.3 The Committee reviewed the Part A and Part C Accounts including the Statements on Internal Control, the external auditors ISA 260 reports and the annual internal audit report. The Committee noted the adjusted errors and unadjusted misstatements reported by the external auditors and the letter of representation. The Committee recommended that both sets of Accounts could be signed by the Accountant General of the Supreme Court.  • 2006/07 Office Official Solicitor and Public Trustee Stewardship Accounts 11.4 The Committee reviewed the Accounts including the Statement on Internal Control and the NAO’s ISA 260 report. The Committee noted the adjusted errors and non-adjusted misstatements reported by the external auditors and the letter of representation. The Committee recommended that the Accounts should be signed. It also noted that the 2007/08 Accounts would be ready for review later in the year.  • Returning Officers’ Election Expenses Accounts 11.5 The accounts for a number of previous elections have been qualified by NAO since 2002. In support of action commissioned by the former Permanent Secretary, internal audit carried out a follow-up exercise, which involved contacting those Local Authorities/Constituencies who had outstanding election claims. The Committee has been advised that this exercise has been
3
Corporate Audit Committee |Chair’s Report to the Principal Accounting Officer and the Corporate Management Board
successful and that claims for the 2007/08 account should be settled by the end of the year. The Committee will seek assurance on final resolution of this issue and will review the next set of accounts.
Other issues considered by the Committee Fraud and Irregularity 11.6 The Committee provided comments on an updated MoJ Fraud Policy, which recognised the May 2007 machinery of government changes and the implementation of the Fraud Act 2006. The Committee discussed the 2006/07 Annual Treasury Fraud Report with regard to any common risks and exposures to the MoJ and received information on the level of incidents reported for the MoJ 2007/08. The Committee will continue to receive reports from internal audit on incidents of fraud and will encourage promotion of a strong counter fraud culture.
C-NOMIS 11.7 In October 2007, the Committee received a presentation from Roger Hill, Director of Probation, on the C-NOMIS project (a single interactive database underpinning the reform programme in NOMS by supporting end-to-end offender management). Roger Hill, as SRO for the project had commissioned a health check of the project and a formal audit of the financial governance. This work identified, among other things, an urgent need to tighten financial control. Further work was done on reducing the dissonance between the project board and the NOMS board, effectively closing the gap between scope and available funds. A further internal audit was commissioned by the Minister (David Hanson) to identify lessons learnt, the summary of which was considered by the Committee. 11.8 The Committee has noted that there have since been a number of changes to the Programme. They include development of Prison-NOMIS (a version of C-NOMIS), which is underway to a national roll-out to all public prisons; and work on progressing replacing/improving legacy case management systems in the National Probation Service. The Committee has also noted that the NAO are proposing to conduct a study on the NOMIS project in 2008/09.
Shared Services 11.9 In October 2007, Sam Sundaram, Commercial Director, provided an update to the Committee on Shared Services. He explained that strategic work had been carried out, to provide MoJ with a clear concept of what shared services means to the new Ministry as a whole and the need to achieve a common understanding of this across the Ministry. The Committee is conscious of the future impact this may have on the delivery of existing and future services to the MoJ and the considerable potential value for money considerations. It is an area that the Committee will continue to maintain an interest in and will request further updates including assurance on the effectiveness of arrangements for the management of key risks.
4
Chair’s Report to the Principal Accounting Officer and the Corporate Management Board| Corporate Audit Committee
LIBRA (provision of IT support to magistrates’ courts) 11.10 In December 2007, Karen Wheeler, HMCS Change Programme Director, provided the Committee with an update of progress being made on the national roll-out of Libra. She advised that the national rollouts were progressing well, Libra had gone live in its first large court, generally, users are content with the system and the latest OGC Gateway Review gave a green rating. The Committee was informed that key issues, in the near future, for the project revolved around IT performance.
Finance Service Management Organisation 11.11 In December 2007, Martin Jacobs, FSMO Operations, provided an update to the Committee on the Finance Service Management Organisation (FSMO). He outlined its objectives and core operating principles, the key roles in the process, including governance arrangements, escalation processes and structure. The Committee was particularly interested in the effectiveness of monitoring Liberata (external supplier) performance and resolving the various issues raised by the audit process.
Ministry of Justice Organisational Review 11.12 In April 2008, Loveday Ryder, Divisional Head of Change, provided an update on the implementation of the MoJ Organisational Review. She informed the Committee that from 1 April 2008, a new Corporate Management Board (CMB) replaced the existing Departmental Management Board and that the new MoJ structure is made up of four Business Groups and Corporate Performance. The Committee was provided with a summary of the responsibilities for the new Business Groups and further information was given in a set of slides distributed at the meeting. Loveday advised that the Organisational Review was now regarded as complete and that future work will be under the remit of a Change Programme. Loveday confirmed that the Programme will be subject to an OGC Gateway Review with a follow-up in a year’s time and that critical success factors were being defined. The Committee will be interested in actions to promote and achieve a common MoJ culture and on the outcome of the planned Gateway Review.
Audit Arrangements Internal Audit 11.13 The Committee reviewed and approved internal audit strategies and plans and monitored their delivery. The Committee received regular reports on audit activity, findings, recommendations and related matters concerning governance, control and risk management arrangements. It was pleased to note the attention paid by senior managers to ensuring appropriate action is taken to respond to significant control, governance and risk management issues identified by the internal audit process. At its meeting on the 10 July, the Committee reviewed the Internal Audit Annual 2007/08 Report and endorsed the reasonable level of assurance provided on the adequacy and effectiveness of systems of internal control and the supporting findings.
5
Corporate Audit Committee |Chair’s Report to the Principal Accounting Officer and the Corporate Management Board
External Audit - National Audit Office 11.14 The NAO was represented at all meetings of the Committee and submitted regular reports including ISA 260 reports. The Committee also received regular updates from the NAO on their value for money studies that directly impact upon the MoJ or that have common applicability across central government bodies. Annex B provides summary details of these reports provided by NAO for the period covered by this report. The Committee has considered and endorsed the external audit accounts certification audit strategies including the identification of key risks and action taken on issues raised in ISA 260 reports.
Audit/PAC Recommendations 11.15 The Committee has tracked progress on implementing NAO/PAC recommendations for the former DCA. Following the PAC hearing on the Criminal Injuries Compensation Authority, the Committee has noted the action being taken to improve tracking of recommendations from all business areas now forming MoJ. The Committee has also asked to be kept informed of progress on the current NAO study on action taken on recommendations made on a sample of NAO vfm/PAC hearings over the past four years. The Committee endorsed action being taken to strengthen previous arrangements and will continue to seek assurances on the implementation of recommendations. The Committee has also received regular reports on internal audit recommendations and on progress made on implementation.
Corporate Audit Committee Assurance
12.
13.
6
The Committee commends the high quality and standard of work undertaken to produce the accounts it has reviewed and recognises the challenging time scales involved with faster closing, which have been accentuated by the machinery of government changes. It is pleased that the Ministry has achieved unqualified audit opinions for the Resource Accounts (subject to resolution of the issue raised at paragraph 11.1 above) and the other accounts it has reviewed. The Committee welcomes the full reporting in the Ministry’s Statements on Internal Control and the action taken to respond to significant control issues.
The Committee recognises that there are a number of factors that may impact on the continued stability of corporate governance, control and risk management arrangements over the coming months. Amongst these is the need for continued effective and co-ordinated change management and for the setting of clear accountability and performance management structures for sponsored bodies and corporate functions. As part of this process, there is a need to keep the effectiveness of corporate governance infrastructure arrangements under regular review as these evolve. The Committee recognises the contribution the Organisational Review and the Capability Review has made in this respect.
Chair’s Report to the Principal Accounting Officer and the Corporate Management Board| Corporate Audit Committee
14.
15.
The Committee acknowledges the investment made by the MoJ in developing its risk management arrangements and notes further improvements are planned. It is important that an effective corporate and integrated approach to risk management is maintained and that risk management is effectively embedded and operates in a cohesive way throughout the Ministry.
The Corporate Audit Committee is able to provide positive assurance on the adequacy of audit arrangements (internal and external) and on the reliance that can be placed on the assurances provided to the Committee in respect of governance and control arrangements operated in the MoJ.
Acknowledgements
16.
The Committee commends the open and candid relationship that exists between its members and the Head of Internal Audit, the NAO external auditors, the Director General Finance & Commercial, the Head of Finance Operations and members of Corporate Risk and Assurance Branch.
Anne Bulford Chair of the Corporate Audit Committee July 2008
7
Corporate Audit Committee |Chair’s Report to the Principal Accounting Officer and the Corporate Management Board
Annex A
Corporate Audit Committee - Terms Of Reference
Purpose The Corporate Audit Committee is an advisory body. It supports the Permanent Secretary, as Principal Accounting Officer, and the Corporate Management Board (CMB) in their responsibilities for issues of risk, control and governance by reviewing the comprehensiveness of assurances on meeting MoJ assurance needs and reviewing the reliability and integrity of these assurances. The terms of reference for the Committee are informed by the guidance set out in the Treasury Audit Committee Handbook for Audit Committees in Central Government bodies.
Role and Objectives The Corporate Audit Committee will advise the Principal Accounting Officer and CMB on the: • processes for risk management, control and governance and the Statement on Internal Control • accounting policies and accounts for the Ministry • planned activity and results of both internal and external audit • adequacy of management responses to issues identified by audit activity including external audit’s management letter • assurances relating to the Ministry’s corporate governance requirements • anti-fraud policies, whistle blowing processes, and arrangements for special investigation Membership • Independent non executive chairman ( Non-Executive Member of CMB) • Three independent, non-executive members • Two members will constitute a quorum. Attendees • Director General, Finance and Commercial • Representative from Corporate Finance • Representatives of the National Audit Office • Head of MoJ Internal Audit • Head of Corporate Risk and Assurance • Other senior managers on invitation by the Committee for specific issues
8
Chair’s Report to the Principal Accounting Officer and the Corporate Management Board| Corporate Audit Committee
Annex B
NAO Value for Money Reports
During the period covered by this report the Committee received updates from the National Audit Office on the following studies:
VfM Reports 2007-08
Criminal Injuries Compensation Authority National Probation Service - the supervision of community orders in England and Wales Protecting the public: the work of the Parole Board Meeting needs? The Offenders’ Learning and Skills Service The Offenders’ Learning and Skills Service
VfM Reports planned for delivery in 2008-09
HMPS procurement Crown Courts Administration NOMIS Prison Maintenance
9