AUDIT & RISK COMMITTEE (ARC)
The Audit & Risk Committee is one of two standing committee of the Board. Its duties include monitoring the operation of internal controls, governance, audit, financial reporting, risk and compliance arrangements.
The Audit & Risk Committee is responsible for:
- Monitoring and reviewing the Authority’s financial obligations, including compliance with the related policies, standards and the pension fund’s Annual Report & Accounts
- Overseeing and advising the LPFA Board on the future risk strategy and current risk exposures of the Authority
- Overseeing the effectiveness and stringency of the Authority’s risk management system
- Receiving assurance that the Authority has robust internal controls
- Overseeing and monitoring the Authority’s governance and compliance arrangements
- Appointing the internal and external auditors and monitoring and evaluating their ongoing effectiveness
- Receiving reports on the above matters and making recommendations to the Board as necessary.
TERMS OF REFERENCE
The Audit & Risk Committee’s terms of reference outline the composition, function and duties of the Committee. These include:
- Review of financial reporting and monitor financial statements including recommendations to the Board on pension fund annual report and statement of accounts
- Internal control systems, governance, compliance and regulatory standards
- Internal and external audit
- Advise the Board on the Authority’s overall risk appetite, tolerance and strategy
- Oversee and advise the Board on the current risk exposures of the Authority and future risk strategy
- Review the Authority’s capability to identify and manage new risks and types of risk.
The Audit & Risk Committee Terms of Reference can be found in the LPFA’s Constitutional Document, which is available in our Library (under ‘Our policies & procedures’).
ARC ANNUAL REPORT
The ARC terms of reference require a report to be prepared, reviewed by the LPFA Board and published on an annual basis. The report provides assurance on the work undertaken by the Committee, specifically the effectiveness of the external audit; significant issues considered during the year; details of risk management and reviews of internal controls.
The 2021-2022 Audit and Risk Committee Annual Report can be found here.