Key aspects of the Audit Committee:
The Committee shall consist of five members of the Corporation and up to two co-opted members who have appropriate expertise in audit matters. In accordance with the Audit Code of Practice membership of the Committee shall not include:
- Any members of the Finance and General Purpose Committee
- The Chair of the Corporation
- The Chair shall be elected on a biennial basis and must be a member of the Corporation.
The internal auditor will be invited to attend and speak at all meetings of the Committee and the financial statements auditor will be invited when business relevant to them is being discussed. They will be expected to attend only for the items that are relevant to them.
The Deputy Principal (Finance and Corporate Planning) and the Head of Finance shall be in attendance at the invitation of members. Other staff may be invited to be in attendance for specific agenda items, with the purpose of answering questions from committee members if it is deemed appropriate.
The Clerk to the Corporation shall be in attendance and be responsible for:
- advising the committee on matters in relation to the Instruments and Articles of Government and other associated regulations;
- taking the minutes of the meetings.
The Committee shall normally meet three times per year.
The quorum for meetings of the committee shall be two members of the committee, both of whom must be members of the Corporation.
3. Access to Meetings
The public shall not be admitted to the meetings.
4. The Role of the Committee
The role of the committee is as follows:-
- to advise the governing body on the adequacy and effectiveness of the FE college’s systems of internal control and its arrangements for risk management, control and governance processes, and securing economy, efficiency and effectiveness (value for money);
- to advise the governing body on the appointment, reappointment, dismissal and remuneration of the financial statements auditor and the internal audit service (IAS)
- to advise the governing body on the scope and objectives of the work of the IAS, the financial statements auditor and the funding auditor (if appointed);
- to ensure effective coordination between the IAS, the funding auditor (if appointed) and the financial statements auditor including whether the work of the funding auditor should be relied upon for internal audit purposes
- to consider and advise the governing body on the audit strategy and annual internal audit plans for the IAS
- to advise the governing body on internal audit assignment reports and annual reports and on control issues included in the management letters of the financial statements auditor and the funding auditor (if appointed), and management’s responses to these
- to monitor, within an agreed timescale, the implementation of agreed recommendations relating to internal audit assignment reports, internal audit annual reports, the funding auditor’s management letter and spot-check reports and the financial statements auditor’s management letter
- to consider and advise the governing body on relevant reports by the NAO, the LSC and other funding bodies, and where appropriate management’s response to these;
- to establish, in conjunction with FE college management, relevant annual performance measures and indicators, and to monitor the effectiveness of the IAS and financial statements auditor through these measures and indicators and decide, based on this review, whether a competition for price and quality of the audit service is appropriate
- to produce an annual report for the governing body and accounting officer, which should include the committee’s advice on the effectiveness of the FE college’s risk management, control and governance processes, and any significant matters arising from the work of the IAS, the funding auditors (if appointed) and the financial statements auditor
- to ensure that all allegations of fraud and irregularity are properly followed up; an
- to be informed of all additional services undertaken by the IAS, the financial statements auditors and the funding auditors (if appointed)
- to review the College’s Health and Safety Policy and reports and to make recommendations as appropriate.