The purpose of the Audit Committee (the Committee) is to foster a positive and effective internal control environment by monitoring and reporting on matters related to financial reporting, proper management oversight, internal control and efficiency and effectiveness of Government programs. The Committee is to provide oversight and support to the internal audit function in their role, which is to provide independent and objective assurance and professional advisory services on government-wide risk management, governance and internal control processes. The Committee will also provide support and oversight to the Public Accounts process. The Committee reports to Treasury Board.
The scope of the Committee would include core Government, i.e. Executive Branch. The Committee shall review financial reporting of Crown entities to the extent it relates to Committee oversight responsibilities for Public Accounts.
The Committee shall carry out the following responsibilities:
The Committee is established via the Audit Committee Charter – October 2016 which was approved by Cabinet in December 2016. The Committee consists of a maximum of eight (8) voting members:
The Comptroller General acts as Secretary of the Committee but is not a voting member of the Committee.
The six additional committee members are to consist of a minimum of one (1), maximum of three (3) additional Committee members external to Government of Newfoundland Labrador and its entities. External members are appointed by the Minister of Finance through a merit based competitive process overseen by the Public Service Commission.
Audit Committee members should collectively possess the following core competencies:
All members must have knowledge of financial management practices and concepts.
Members of the Audit Committee should possess the competencies outlined in the competency profile and the following qualifications:
Knowledge of Government operations and the Executive Branch’s structure.
Members of the Audit Committee should be available to meet at least four times a year or more often as required. Each member is expected to devote the time needed to prepare for and participate in each meeting by reading the reports and background materials provided for the meeting.
As specified in Section 3.1.3 of the Audit Committee Charter:
3.1.3 Each external appointment will be set by the Minister of Finance for a maximum initial term of three years or less after which they may be eligible, for one additional three year term. Terms of members should be staggered to ensure adequate continuity; therefore some terms may be less than three years. Reappointments of both internal and external members shall be at the discretion of the Minister of Finance.