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Corporate Assurance Charter
Purpose Statement
- To provide an independent and objective opinion to the Audit Committee and Chief Executive on risk, control and governance issues.
- To provide independent and objective advice to managers on risk, control and governance issues.
- To provide an independent and objective assurance service to partner organisations on request.
In striving to achieve this purpose, Corporate Assurance aims to achieve the highest possible standards. It does this by being:
Professional
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undertaking continuous training and development.
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adhering to professional and ethical requirements as set out in Government Internal Audit Standards (GIAS) and the Code of Ethics and International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors.
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subjecting ourselves to periodic external review.
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ensuring reports are accurate and timely.
Close to the business
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covering all aspects of risk control and governance within English Partnerships
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keeping up to date with current issues
Facilitators of solutions
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shifting the focus away from inspection towards preventative auditing
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being flexible, helping to fix problems
Agents of change
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developing change
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facilitating discussion and development of best practice
Customer focused
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consulting
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communicating
Nature and Objectives
Corporate Assurance is an independent and objective assurance and consulting activity that brings a systematic and disciplined approach to evaluating the policies, procedures and operations that management put in place to ensure that the risks to the achievement of the Agency’s objectives are effectively managed. It adds value and contributes to the achievement of business objectives through aligning its activities with English Partnerships most important areas of work; covering a suitably broad range of risks, activities, processes and projects in order to be able to provide a robust overall assurance; and providing structured advice in response to management requests.
The prime responsibility and objective of Corporate Assurance is to provide the Chief Executive, as the Accounting Officer, with an independent and objective opinion on the adequacy and effectiveness of the arrangements in place for risk management, control, and governance within English Partnerships.
In fulfilling this objective, Corporate Assurance will assist management by providing an independent and objective consultancy service specifically to help improve the Agency’s risk management, control and governance arrangements.
Corporate Assurance is not, however, an extension of, or a substitute for, management. Responsibility for operational control rests fully with managers who must ensure that appropriate, adequate and effective control arrangements exist without dependence on Corporate Assurance. It is for management to decide whether or not to accept and implement recommendations. The Chief Executive is ultimately responsible for ensuring that prompt and effective action is taken where called for or that the risks of not taking action are recognised and accepted.
Scope
Corporate Assurance covers all activities within English Partnerships (including any subsidiary bodies or other arrangements where their activities are material to the achievement of the Agency’s objectives) and has unrestricted access to all records, information, assets and staff necessary for the performance of its work. Corporate Assurance should achieve its objectives in respect of assurance by systematic review and evaluation of the arrangements established by management to:
- Identify, assess, and manage risks to achieving objectives
- Establish, achieve and monitor organisational objectives
- Formulate policy, or provide policy advice, within the responsibilities of the Accounting Officer
- Ensure the economic, efficient, and effective use of resources
- Ensure compliance with established policies, procedures, laws and regulations
- Safeguard the organisation’s assets and interests from losses of all kinds, including those arising from fraud, irregularity or corruption
- Ensure the integrity and reliability of information, accounts, data, and accountability processes.
In addition, Corporate Assurance will:
- Undertake investigations, management consultancy and independent reviews in areas such as fraud control, risk management and security, or any other areas as determined by the Chief Executive or the Audit Committee;
- Advise on risks and controls within developing systems. Corporate Assurance should therefore be consulted at an early stage, particularly where major or complex systems are proposed.
- Provide assurance services to partner organisations at their request.
Authority and Independence
The Accounting Officer, in conjunction with the Audit Committee, has the responsibility of ensuring that adequate arrangements are in place to provide the necessary level of assurance coverage. This includes the requirement to appoint a Head of Corporate Assurance (HCA) together with appropriately qualified staff or other resources that are considered necessary to achieve the purpose. The HCA shall advise the Accounting Officer if at any time the level of resources is considered insufficient to provide adequate coverage. Removal or dismissal of the HCA is a responsibility reserved for the Chief Executive in consultation with the Audit Committee. Pay and grading issues for the HCA are to be determined by the Director of Organisational Development in consultation with the Audit Committee within the context of the overall terms and conditions in operation within English Partnerships.
The HCA takes his authority from the Chief Executive, to whom he reports, and has direct access to the Chairman of the Audit Committee and to the Board. On matters of fraud or irregularity the HCA is required to make a full report to the Audit Committee and to the DCLG. The HCA has no executive management responsibilities, other than for the management of the Corporate Assurance function.
Corporate Assurance is organisationally and functionally independent of the activities, processes and projects it reviews and will objectively report its findings to the appropriate level of management in order to ensure any required corrective action is taken on a timely basis.
Responsibilities
The HCA will prepare plans to meet the assurance needs of English Partnerships based upon an assessment of risk. The scope of assurance work will be regularly reviewed in line with business requirements and changing priorities and any necessary changes to agreed plans will be recommended to the Audit Committee. Work plans and periodic progress reports, including summaries of key findings, recommendations and progress on implementation will be submitted to the Chief Executive and to the Audit Committee.
Draft reports will be discussed with appropriate levels of management and final reports will incorporate responses together with management’s plans for implementation of agreed actions. Senior management is charged with a duty to ensure that actions are implemented to a time scale agreed with the HCA. For this reason, final reports will be sent to those Directors who are in a position to ensure that corrective action is taken on a timely basis. Copies of all final reports will be made available to the NAO as External Auditors and to DCLG on request and may also be released to the European Court of Auditors in appropriate circumstances. Requests to release Corporate Assurance reports, and associated work, under the terms of the Freedom of Information Act 2000 will be dealt with in accordance with agreed procedures in place within English Partnerships.
Annual Assurance Report
The prime objective of Corporate Assurance is to provide the Chief Executive, as the Accounting Officer, with assurance on the adequacy and effectiveness of arrangements in place for risk management, control and governance. To this end, the HCA will provide the Chief Executive with an annual report containing:
- An account of assurance activity and results, which will compare actual activity with that planned;
- An assessment of the extent to which the total assurance needs of English Partnerships have been met; and
- A formal opinion on the extent to which the Chief Executive can rely on the arrangements in place to achieve Agency objectives.
Standards
Corporate Assurance is required to meet the standards laid down by H.M. Treasury in Government Internal Audit Standards (GIAS) the Code of Ethics and International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors. It is assessed annually, by the External Auditors, on the extent to which it achieves these standards. Additional measures are in place to ensure continuous review and improvement within Corporate Assurance with the intention that operations exceed the standards required. Auditors who are members of a professional body are required to comply with the code of ethics and professional standards of that body, and additionally each member of the team will formally sign a Statement of Ethics declaring their commitment to ethical conduct and performance of work within Corporate Assurance.
Review and Update
This Charter will be formally reviewed every two years as part of the review of the overall Corporate Assurance Strategy. This does not preclude however interim reviews should the need for such a review arise.
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John Walker |
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Robert Napier |
April 2007
