Audit Committee

Department

Authority

Remuneration

Purpose:

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 management and reporting, risk management, internal controls, effectiveness of the internal audit function and accountability of public funds to Treasury Board. 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 and internal audit.

The Committee shall carry out the following responsibilities: 

• Provide advice and support to the Office of the Comptroller General (OCG) in fulfilling its Government-wide assurance and advisory services mandate;
• Recommend approval of the annual internal audit plan brought forward by the Comptroller General;
• Request OCG to complete special internal audit reviews regarding areas of specific concern to the Committee;
• Review internal audit reports or summaries at the Committee’s discretion or as provided by the OCG and may report to Treasury Board as required in respect of matters arising from those reports;
• Review progress of departments in implementing recommendations of internal audit and the Auditor General;
• Review the Province’s Public Accounts with the Auditor General, Comptroller General and other senior management as determined by the Committee to discuss any significant audit findings identified through the course of the audit;
• Review matters identified in the management letter and the related recommendations issued by the Auditor General arising from the audit of the Public Accounts, including management’s response to the recommendations; 
• Review matters identified in entity management letters and the related recommendations issued by their respective auditors, including the entity’s response to the recommendations;
• Monitor the effectiveness of the Fraud Management Program to prevent and detect fraud.
• Provide visible support to principles of sound financial management and accountability; and
• Monitor compliance with established ethics and values standards.

Structure:

The Committee shall be comprised of the following members:

1. Secretary of Treasury Board, who serves as the Chair;
2. Deputy Minister of Finance, who serves as the Vice Chair;
3. Maximum of three (3) other internal committee members;
4. One (1) external committee member;
5. Deputy Clerk of the Executive Council or delegate, who serves as an ex-officio member of the committee; and
6. The Comptroller General, who serves as the Secretary.

Internal committee membership will include:

1. One (1) Deputy Minister from the social sector;
2. One (1) Deputy Minister from the resource sector; and

One (1) Executive level position (i.e. Deputy Minister equivalent) from a Government Agency, Board and Commission or Government Business Enterprise.

Competency Profile:

Audit Committee members should collectively possess the following core competencies: 

• Understanding of the objectives of the Government’s policies, procedures, and significant current issues;
• Understanding of the Executive Branch’s structure including key reporting relationships;
• Understanding of the Executive Branch’s culture.

All members must have a strong knowledge of financial management practices and concepts.  The Committee should collectively possess knowledge, skills and experience in:

• Accounting and financial reporting; 
• Auditing;
• Risk management; and
• Technical or specialist issues relevant to the operation of the Executive Branch.  

Qualifications:

Members of the Audit Committee should possess the competencies outlined in the competency profile and the following qualifications: 

• Knowledge and experience with financial management practices and concepts;
• Knowledge and experience in dealing with internal and external audit issues and practices;
• Knowledge of Public Sector Accounting Standards;
• Knowledge and experience in risk management and assessment; and
• Knowledge of Government operations and the Executive Branch’s structure.

Time Commitments:

Members of the Audit Committee should be available to meet at least two 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. 

Term:

As specified in Section 4.6 of the Audit Committee Charter: 

4.6   Internal and external appointments will be set for a maximum term of three years after which they may be eligible, for one additional three-year term.  Terms of members should be staggered to ensure adequate continuity; therefore terms may be less than three years. Reappointments of these members shall be at the discretion of the Board.