Audit Committee Annual Report 2022/23

Chair’s Report 2022/23

  1. The audit committee oversees the PSAA Board’s financial reporting process on behalf of the Board. PSAA officers have the primary responsibility for producing the financial statements and for internal control.
  2. The audit committee met in April, June and October of 2022. All members of the committee attended all of those meetings.
  3. The meetings of the audit committee are designed to facilitate and encourage communication among the committee, PSAA’s internal auditors (TIAA) and the appointed external auditor, MHA.
  4. All members of the committee are appraised in line with the PSAA corporate governance framework. The committee has recent and relevant financial experience through the Chair (Marta Phillips) and independent member (Alan Edwards), both have professional backgrounds in financial reporting.
  5. The committee discussed with the internal auditors (TIAA) and external auditors (MHA) the overall scope and plans for their respective audits. The committee also met with the auditors with and without officers present and discussed the results of their work and evaluations of internal control and the overall quality of PSAA’s financial reporting. In addition, the approach for assessing the effectiveness of internal audit and external audit has been formalised. This is carried out in the form of a private meeting between audit committee and board members covering a set of appropriate and proportionate questions.
  6. MHA had no matters of concern to raise with the committee and are proposing an unqualified audit opinion on the financial statements. They confirmed the accounting policies selected by PSAA were appropriate.
  7. The internal auditors provided substantial assurance for the area (fee variation system) reviewed for 2022/23.
  8. In fulfilling its oversight responsibilities, the committee reviewed and discussed the annual report and accounts, including a discussion of the appropriateness of the accounting policies proposed, the reasonableness of significant judgements and estimates and the clarity of disclosures made.
  9. The committee met its terms of reference.
  10. The committee has received assurances from the Chief Executive about the operation of internal controls, including those that inform the annual report and accounts.
  11. The committee oversaw PSAA’s risk management arrangements and reviewed treasury management performance/policy on behalf of the Board.
  12. The audit committee recommends the annual report and accounts to the Board for approval.
  13. The committee has received assurances from MHA confirming independence from PSAA. The Board has a policy of not buying non-audit services from MHA with the exception of work on ‘tagging’ the accounts for tax return purposes. This policy has been adhered to.
  14. The audit committee effectiveness survey completed by members and attendees showed consistently positive responses, with all scores being either ‘strongly agree’ or ‘agree’.
  15. The above points confirm that the audit committee is effective.

Marta Phillips
Audit Committee Chair PSAA
19 June 2023