Terms of reference

Membership

The committee shall comprise three members of the Board (of whom one will chair the committee) and at least two independent members. A quorum shall consist of at least two members.

Purpose & remit

To monitor the integrity of the published financial statements of QCA and any formal announcements relating to QCA’s financial performance, reviewing significant financial reporting judgements contained in them.

To monitor the arrangements set out in the QCA Public Interest Disclosure Policy by which QCA staff may, in confidence, raise concerns about possible improprieties in matters of financial reporting or other such matters, and that they operate effectively and are then independently investigated.

To monitor the adequacy and effectiveness of corporate governance within QCA, considering any action necessary by management to counter identified deficiencies.

To advise the Board on the adequacy and effectiveness of QCA’s risk management systems, internal controls and related practices, and to propose modifications to management as appropriate.

To approve the annual internal audit plan, ensuring it accords with QCA management’s analysis of the risks facing its work.

To ensure that internal audit work is properly focused, monitored and implemented, and that follow-up action is carried out as necessary, and to advise the Board accordingly.

To consider and recommend courses of action to management from: issues arising from internal audit work, including promotion of understanding about audit requirements; the planned internal audit programme and action necessary to remedy key weaknesses revealed by it.

To review and commend the NAO audit strategy and related fee for the QCA annual accounts each year, and to consider the audit report and management letter(s) from the external auditors along with the management response(s), bringing any relevant issues to the attention of the QCA Board.

To note the audit report on the QCA (Enterprises) annual accounts and to consider the management letter(s) from the external auditors along with the response(s) from management, bringing any relevant issues to the attention of the QCA Board.

To ensure that internal audit work is carried out in accordance with proper practice.

To recommend to the Board the appointment and termination of the internal audit service.

To review annually the operation of QCA’s code of practice for Board members and code of conduct for staff, and recommend any changes to the Board.

Reporting arrangements

To report formally to the Board, five times per annum, on the discharge of the duties set out in the remit above.

Frequency of meetings

Meets five times annually at key points in the financial year.