24 City of Glasgow College Annual Report & Accounts 2020-21
Audit and Assurance
Audit and Assurance Committee
Report 2019-20
Introduction
The Board of Management is accountable for the
stewardship of funds under its control, and is therefore
responsible for:
• Safeguarding assets and ensuring the regularity of
transactions by establishing adequate systems of
internal control;
• Maintaining proper accounting records;
• Preparing financial statements which show a true
and fair view and comply with relevant accounting
standards;
• Taking reasonable steps for the prevention and
detection of fraud and other irregularities; and
• Managing its affairs to secure the economic, efficient
and effective use of resources
The Audit and Assurance Committee has the unique
role among all Board and College committees and other
fora, of maintaining a degree of independent overview
of the effectiveness of financial and other internal control
systems and functions. This relates to all aspects of
College activity, and the Committee's priority is to ensure
that the College's systems and processes operate
efficiently and economically, as well as effectively.
To assist the Committee in this task, the Committee
has responsibility for selecting and recommending to
the Board both an Internal and an External Auditor.
The Committee plans and oversees the planning
and operation of the auditors' work, monitoring its
effectiveness, and receives internal and external audit
reports on the agreed scope of their reviews. These may
cover any aspect of College operation, and are designed
to provide the Board of Management, the Principal, and
other managers with assurance on the adequacy of the
College's arrangements for:
• Risk Management
• Corporate Governance, and
• Internal Control
• Effective Operation
The Committee has a specific responsibility to consider
the College's annual financial statements, after review by
the Finance and Physical Resources Committee and prior
to submission to the Board. Any changes to accounting
policy, major decision matters, or significant audit
adjustments, are closely scrutinised by the Committee.
Compliance with accounting standards, and the Funding
Council's Financial Memorandum, is also a priority.
The Audit and Assurance Committee maintains oversight
of the management of Data Protection, and since
2018 has particularly focused upon the requirements
and duties placed upon the College under the General
Data Protection Regulations (GDPR), together with
commensurate strategic risk. The Committee also
scrutinises matters relating to potential fraud and
cybersecurity breaches.
In 2020-21 the College's External Auditors were Azets.
Henderson Loggie have been the College's Internal
Auditors since September 2016, concluding their
contract, following a one-year extension, at 31 July 2021
(to the conclusion of the 2020-21 audits). A full tender
process was undertaken in session 2020-21, following
which Henderson Loggie agreed a further contract with
the College as Internal Auditors from 1 August 2021 for
three years, with a further two-year option.
Committee Review of 2020-21
Internal Audit
The role of the internal auditor is to provide an
independent, objective assurance and consulting
service. This is designed to improve performance,
enhance processes, add value, and improve the
College's operations across the full range of the College's
activities and functions. The auditor's approach is to
help the College accomplish its objectives through a
systematic, objective, evaluative approach - to improve
the effectiveness of risk management, control, assurance,
and governance processes. To this end, the internal
auditor also advises best practice gained from their
cross- sectoral experience.
In March 2017, Henderson Loggie had provided the
Committee with an Audit Needs Assessment (ANA),
including a proposed internal Audit Plan covering the
period 2016 - 2020. The ANA was prepared following a