Mandate for the Executive Board’s Audit Committee
Laid down by Norges Bank’s Executive Board on 16 August 2006 and last amended on 8 February 2023 with effect from 1 June 2023.
1. Authorisation and background
The mandate has been laid down pursuant to Section 2-4, fifth paragraph, of the Central Bank Act, the instructions on risk management and internal control at Norges Bank and Section 2-2 of the Rules of Procedure for Norges Bank’s Executive Board.
The Audit Committee is a preparatory and advisory working committee for the Executive Board. The Committee shall contribute to strengthening and streamlining the Executive Board’s work on the follow-up, supervision and control of financial reporting, operational risk, compliance and risk management and internal control systems.
3. Appointment and organisation
The Audit Committee comprises three members, of which one member is designated as chair. Members of the Audit Committee are elected by and from among the Executive Board’s external members. Members are appointed for one-year terms.
Internal Audit shall provide the Audit Committee with the necessary assistance and function as the Committee’s secretariat.
The Audit Committee meets whenever the Committee deems it necessary. The Committee shall prepare a schedule for the year’s meetings.
The Committee itself decides who from the administration shall attend meetings. The external auditor attends by arrangement.
At least once a year, the Committee shall have a separate meeting with an external auditor, without the participation of executive management or administration. Corresponding meetings should also be held with internal audit.
Joint meetings may be held with other committees as necessary.
5. Responsibilities and authorisations
The Audit Committee is answerable to the Executive Board for the performance of its tasks. The Committee’s activities do not change the responsibilities of the individual Executive Board members or of the Executive Board as a whole.
To perform its tasks, the Committee may examine all activities and circumstances related to the Bank’s activities and may ask the employees of the Bank, including the Governor and the CEO of Norges Bank Investment Management (NBIM) to provide access to information and personnel.
The tasks of the Audit Committee are focused on strengthening and streamlining the Executive Board’s work relating to follow-up, supervision and control of financial reporting, operational risk, compliance and risk management and internal control systems.
On the basis of reporting from the administration, Internal Audit and/or the external auditor, the Audit Committee shall prepare matters for discussion by the Executive Board that pertain to:
- Processes for external financial reporting
- External auditor’s plans and reporting
- Internal Audit’s independence, resources, plans and reporting
- Other matters that the Executive Board or the Audit Committee themselves decide or wish Internal Audit or the external auditor to address
The Audit Committee shall:
- Assist with the necessary coordination between Internal Audit and the external auditor
- Give an opinion on the appointment or termination etc of the head of Internal Audit and on determining his or her terms of employment
- Assist with the Executive Board’s working relationship and information exchange with the Supervisory Council within the Audit Committee’s remit
Each year, the Committee shall evaluate its own performance.
7. Distribution, minutes, reporting, etc
To the extent possible, discussion documents shall be made available to Committee members five days prior to Committee meetings.
The Audit Committee submits written recommendations to the Executive Board in individual matters with an account of what has been discussed in particular and otherwise reports from its meetings at subsequent Executive Board meetings. A possible recommendation may be that a matter be sent back to the administration for further discussion.
The minutes of meetings of the Audit Committee shall be submitted at Executive Board meetings for information.