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Financial Regulations

Article

Financial Management and Control

Section 13: Audit Requirements

13.1 General

External auditors and internal auditors shall have authority to:

  • access College premises at any time;
  • access all assets, records, documents and correspondence relating to any financial and other transactions of the College;
  • require and receive such explanations as are necessary concerning any matter under examination;
  • require any employee of the College to account for cash, stores or any other College property under his/her control;
  • access records belonging to third parties, such as contractors, when required.

The Director of Finance is responsible for drawing up a timetable for final accounts purposes and will advise staff and the external auditors accordingly. The Financial Statements should be reviewed by the Audit Committee. On the recommendation of the Audit Committee (advised by Finance and Resources Committee as set out in the terms of reference of that Committee) they will be submitted to Council for approval.

13.2 External Audit

The appointment of external auditors is the responsibility of Council. Council will be advised by the Audit Committee. The primary role of external audit is to report on the College's Financial Statements, and to carry out such examination of the statements and underlying records and control systems as are necessary to reach their opinion on the statements and to report on the appropriate use of funds. Their duties will be in accordance with advice set out in the HEFCE's Audit Code of Practice (now an Annex to the Financial Memorandum) and the Auditing Practices Board's Statements of Auditing Standards.

13.3 Internal Audit

The internal auditor is appointed by Council on the recommendation of the Audit Committee. The College's Financial Memorandum with the HEFCE requires that it has an effective internal audit function, the duties and responsibilities of which must be in accordance with advice set out in the HEFCE Audit Code of Practice (now an Annex to the Financial Memorandum). The main responsibility of internal audit is to provide Council, the Warden and Senior Management with assurances on the adequacy of the internal control system and measures to secure efficiency, effectiveness and value for money. The internal audit service remains independent in its planning and operation but has direct access to Council, the Warden and the Chair of the Audit Committee. The internal auditor will also comply with the Auditing Practices Board's auditing guideline Guidance for Internal Auditors.

13.4 Fraud and Corruption

It is the duty of all members of staff, management and Council to notify the Director of Finance immediately whenever any matter arises which involves, or is thought to involve, irregularity, including fraud, corruption or any other impropriety. The College's Fraud Policy should be followed.

13.5 Value for Money

It is a requirement of the Financial Memorandum that Council of the College is responsible for delivering value for money from public funds. It should keep under review its arrangements for managing all the resources under its control, taking into account guidance on good practice issued from time to time by HEFCE, the National Audit Office, the Public Accounts Committee or other relevant bodies.To fulfil this responsibility, the Senior Management Team will present to Audit Committee each year a plan for value for money work that will provide evidence of compliance with HEFCE's requirements. It will be used to enable the Audit Committee to refer to value for money in their annual report.

13.6 Other Auditors

The College may, from time to time, be subject to audit or investigation by external bodies such as the funding body, National Audit Office, European Court of Auditors, and HM Revenue and Customs. They have the same rights of access as external and internal auditors.

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