Audit and risk committee: requirements (academies)
You must have an audit and risk committee with oversight of the trust's finances and internal scrutiny. Be clear on what the requirements are so your committee is compliant.
Academy trusts must establish an audit and risk committee (appointed by the board).
It can be a:
- Dedicated committee: you must have a dedicated audit and risk committee if your trust's annual income is over £50 million
- Combined committee: other trusts can include the functions of an audit and risk committee within another committee, such as the finance committee
The committee should meet at least 3 times a year.
You can find this in sections 3.6 and 3.7 of the Academy Trust Handbook (ATH) 2021.
What does this committee do?
The committee must:
- Oversee and approve the trust's programme of internal scrutiny
- Ensure that risks are being addressed appropriately through internal scrutiny
- Report to the board on the adequacy of your trust's internal control framework (this includes financial and non-financial controls and management of risks)
Have a written terms of reference describing its remit Agree an annual programme of work to deliver internal scrutiny Review the ratings and responses