Busitema University Audit Committee Charter

About audit committee charter intro...

Purpose

The primary role of the Audit committee is to assist the  University Council in fulfilling its oversight responsibilities  for  financial reporting, enforcement of the system of internal control, support the audit process, institute risk management system, and  monitor the University's system for Compliance with laws, regulations and code of conduct. The charter provides guidance to members of the Audit Committee in discharging their respective duties. It sets out the Committee's objectives, authority, composition, roles and responsibilities and provides a channel of communication with the different stakeholders.
 

Authority

The Audit Committee derives its  authority  from the University Council  as  well as the  National laws  and auditing standards. The rights and obligations of  the Audit Committee are enshrined in the Public Finance  Management  Act 2015 and regulations and  the standards  for professional practice on internal auditing. The Audit Committee has  authority  to  conduct or authorize investigations into all University matters. The  Audit Committee; in discharging its responsibilities, has powers to seek information from any University officer as circumstances may deem fit. It also has the power to access the services of a professional  counsel, and seek advice information  from relevant  University  and Government organs.
 

Membership

The Audit Committee will consist of five members. The Chairperson  shall be appointed by the University Council. 

Members of  the, Audit Committee shall  be  financially literate, independent in offering technical advice,  cognizant of the interests of the stakeholders and familiar with operations of the University. At least  two members shall be qualified  Accountants  as defined in the Accountants Act 2013. The other members shall be professionals in the  field of training targeted by the University, Iaw, and /or information technology. The Audit Committee members shall collectively possess  sufficient knowledge of audit, finance, public administration, lCT, the law, systems of risk management and control- issues relevant to the environment in which the University operates. The term of office for an Audit Committee member is four years renewable once.
 

Meetings

Members of the Audit Committee shall meet at least quarterly,  with authority to convene additional meetings as circumstances may require. The Committee may invite members of Management, Auditors or other persons to attend meetings, provide pertinent information, and discuss relevant agenda items as and when the need arises, However, any such members invited  shall have no voting powers. The agenda and other discussion papers shall be circulated to members of the Audit Committees at least one week before the scheduled meeting, date. The quorum at all meetings shall be three members.
 

Responsibilities

In accordance with  the Public Finance Management Act 2015,  the International Professional Practice Framework 2017"  developed,  by the  Global  Institute of Internal  Auditors,  the responsibilities of the Audit Committee shall be to:

  • Approve annual and operational plans of the Directorate of Internal Audit
  • Review adequacy  of  Internal Audit Directorate, its adherence to professional standards, particularly independence, good standing, Wide scope, efficient resources   utilisation, and good reporting arrangements:
  • Consider objectives and scope-of-any-additional. work undertaken by internal auditors to ensure there  are no conflicts of Interest and that independence   is not compromised;
  • Review   arrangements established  by  Accounting  Officer for compliance with regulatory and financial reporting requirements and ensuring that there are adequate internal control systems
  • Present concerns of the  internal audit  to  the Vice  Chancellor Accounting Officer, Internal Auditor General, and University Council;
  • Assist  the  Accounting  Officer in carrying  out the oversight responsibilities relating  to financial practices, internal controls, corporate  governance   issues, compliance   with  laws, ethics  and audit  matters;
  • Review the-arrangements-established by the  Accounting Officer for  compliance  with  the  regulatory  and financial reporting requirements;
  • Review  the financial statements prepared by the Accounting Officer to ensure that the disclosure in the financial statements is adequate and that fair representation is achieved.
  • Facilitate risk assessment to  determine  the  amount  of  risk exposure of the assets of the Vote and the possibility of loss that may occur; with a view  to mitigating-risks; and
  • Reports submitted by the' Internal Auditor to.  the Accounting Officer under Section  48 of  the PFM  Act 2015  and make recommendations on the findings  of the  Internal  Auditor.

In addition to other provisions in the PFM Act 2015, the Audit committee shall:

  • Conduct periodic self-assessments;
  • Develop.an annual work plan for its activities;
  • Liaise with the Of pee of the Internal  Auditor General to ensure coordination of audit efforts;
  • Review the extent of implementation of the recommendations made by External auditors; and
  • Present quarterly  reports to the  University  Council  about Committee activities; findings and related recommendations 

Secretariat

The Head of Internal Audit is responsible for making available the services of the secretariat; for drawing up the  agenda, and keeping the minutes of the meetings of the Audit Committee

The Chairperson of the Audit Committee will take lead in initiating the appraisal  of the performance  of the Committee on self-assessment basis, or otherwise,  as  determined by the University Council with appropriate  input from the Vice Chancellor, Accounting  Officer, and the Head of Internal Audit. This shall be done at least once during the term of the Audit committee.

  • Each  member of the Committee  shall take personal responsibility to  proactively declare any  conflict of interest  arising out of the business included on the agenda of any meeting or from changes in the member's personal  circumstances.
  • The Chair of the committee shall then determine the appropriate course   of  action   with  the  member who declares his  or  her conflict of interest. If it  is the Chair that has a conflict  of interest, members  will elect any member from among themselves to chair the  meeting
     

Induction and Capacity Building

A person appointed as an Audit Committee member shall receive relevant information and briefings on the functions of the Committee so as to assist him or her to meet the individual's responsibilities. All Members should participate in periodic capacity building, and continuous professional development, programs necessary for the discharge of their functions. These programs shall be arranged by the University.

The Committee shall  in consultation with the  Vice  Chancellor  and  the Head  of internal  Audit; review this charter  at least once in every two years, and make any changes deemed necessary for the proper functioning  and better  performance of the Committee