AUDIT & RISK COMMITTEE (ARC)
The Audit & Risk Committee is the only 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’).