Purpose

The Audit Committee oversees the Internal Audit Bureau (IAB) in accordance with its approved Charter (IB 206.02).

Authority

This Committee is established under the Financial Administration Act, section 40, which provides the Financial Management Board (FMB) with authority to:

1. Establish an Audit Committee to oversee the operations of the IAB.
2. Define the Committee’s mandate and terms of reference.
3. Approve related internal audit policies and the IAB Charter, on the recommendation of the Audit Committee.

The Audit Committee derives its functional authority from the FMB under this section.

Composition

The Audit Committee shall include the following members:

• Comptroller General (Chair) – permanent member
• Secretary to Cabinet – permanent member
• Secretary of the Financial Management Board – permanent member
• Deputy Minister of Justice – permanent member
• Deputy Head, Housing NWT
• Deputy Minister, Industry, Tourism, and Investment
• Up to two independent members, approved by the FMB

At least one member must have expertise in internal auditing, accounting, or financial management. All members are expected to exercise independent judgment and be free from conflicts of interest.

Meetings

• A quorum consists of the Chair and at least three other members.
• Meetings are typically held four times per year, scheduled by the Chair.
• Members may attend in person or via teleconference; substitutions are not permitted.
• The Auditor General of Canada and other individuals may be invited at the Chair’s discretion.
• In-camera sessions may be held with the IAB Director, external auditors, or other officials to preserve independence and confidentiality.
• The IAB Director provides administrative support, including preparation of agendas and materials, coordination of logistics, minute-taking, and tracking of action items.

Responsibilities

The Audit Committee shall:

Oversight of the Internal Audit Function

• Review the IAB Charter and recommend it to the FMB for approval.
• Confirm annually that the IAB conforms to the IIA Global Internal Audit Standards, including the IIA Code of Ethics.
• Ensure the IAB’s independence and objectivity are maintained in accordance with GNWT policies.
• Approve the IAB’s risk-based audit plan and resource allocations.
• Inquire into any limitations on the IAB’s scope, access, or resources.
• Monitor the IAB’s performance and effectiveness across GNWT entities and recommend improvements where needed.
• Oversee implementation of the IAB’s Quality Assurance and Improvement Program (QAIP) and review the results of internal and external quality assessments.

Strategic Advice and Risk Insight

• Identify and elevate systemic or cross-government themes from audit findings.
• Recommend enterprise-level improvements to governance, risk management, and control frameworks.
• Support alignment between IAB priorities and broader GNWT strategic and operational objectives.
• Approve changes to the audit plan and monitor progress on implementation of audit recommendations

Leadership and HR Oversight

• Review the performance and remuneration of the IAB Director in accordance with GNWT HR policy.
• Provide recommendations on the appointment or removal of the IAB Director to ensure sustained independence and leadership effectiveness.

Special Projects and Requests

• Recommend special audit or advisory projects to address priority governance or risk management concerns.
• Respond to requests from the Financial Management Board as needed.

Reporting

• The IAB Director functionally reports to the Audit Committee and administratively to the Comptroller General.
• The Committee serves as a conduit for communication among GNWT management, internal auditors, external auditors, and the Financial Management Board.
• The Committee provides regular updates to the Senior Management Committee of Deputy Ministers on significant matters.
• At least annually, the Committee reports to the Financial Management Board on:
  • Key findings related to governance, risk management, and internal control
  • The independence and performance of the IAB
  • The IAB’s conformance with the IIA Global Internal Audit Standards

Review and Revision

The Audit Committee shall review these terms of reference at least annually, or more frequently as needed, to maintain alignment with the IIA Standards, GNWT policy, and emerging governance requirements.

Amendments to the Audit Committee’s mandate, terms of reference, or internal audit policy shall be reviewed by the Audit Committee and recommended to the FMB for approval.