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