Introduction
1. HM Treasury guidance provides that the Board should ensure that effective arrangements are in place to provide assurance on risk management, governance and internal control. In this respect, the Board should be independently advised by:
2. The Audit and Risk Assurance Committee is an advisory body with no executive powers. The provision of assurances to the Board should be reviewed by the Audit and Risk Assurance Committee. The Audit and Risk Assurance Committee is more than a processing centre for the range of assurances available in the organisation; rather the Audit and Risk Assurance Committee should constructively challenge:
3. The above adds to the value and usefulness of assurances by enhancing confidence in their reliability. The Audit and Risk Assurance Committee should also be proactive in commissioning assurance work from appropriate sources if it identifies any significant risk, governance and control issues which are not being subjected to sufficient review, and in seeking assurance that weaknesses identified by reviews that have been conducted are actually remedied.
Constitution
4. The Horserace Betting Levy Board has resolved to establish a committee of the Board to be known as the Audit and Risk Assurance Committee.
Membership and attendance
5. The Chair and members of the Audit and Risk Assurance Committee shall be non-executive Board members and shall be appointed by the Board. The Chair should be a Government Appointed Member of the Board other than the Chairman of the Board.
6. Board members who are not members of the Audit and Risk Assurance Committee should have the right of attendance.
7. The Chief Executive in his role as Accounting Officer, the Chief Finance Officer and the Financial Controller will normally attend meetings of the Audit and Risk Assurance Committee. The Board Secretary and Compliance Officer will act as Secretary to the Audit and Risk Assurance Committee and will circulate minutes of meetings of the Audit and Risk Assurance Committee to all members of the Board.
8. The current composition of the Board’s Audit and Risk Assurance Committee is as follows:
9. The Audit and Risk Assurance Committee may co-opt additional members for a period not exceeding a year to provide specialist skills, knowledge and experience.
Frequency of meetings
10. The Audit and Risk Assurance Committee should meet at least four times a year according to HM Treasury guidance though, given the size of the Horserace Betting Levy Board, compared to other Government entities, a minimum of three meetings per year is considered sufficient. The Chair of the Audit and Risk Assurance Committee may convene additional meetings, as deemed necessary.
Meetings
11. While the membership of the Audit and Risk Assurance Committee is four, a minimum of three members of the Committee will be present for the meeting to be deemed quorate.
12. The Audit and Risk Assurance Committee may ask any other officials of the organisation to attend to assist it with its discussions on any particular matter.
13. The Audit and Risk Assurance Committee may ask any or all of those who normally attend but who are not members to withdraw to facilitate open and frank discussion of particular matters.
14. The Board or the Chief Executive may ask the Audit and Risk Assurance Committee to convene further meetings to discuss particular issues on which they want the Committee’s advice.
15. The Internal Auditors and External Auditors will be invited to Committee meetings and have free and confidential access to the Chair of the Audit and Risk Assurance Committee. The External Auditor may request a meeting if considered necessary.
16. The Chair may convene discussions, for Members only, as required.
Communication
17. The work of the Audit and Risk Assurance Committee needs to be effectively communicated if it is to be effective. After each meeting of the Audit and Risk Assurance Committee a report will be prepared for the Board and Chief Executive to:
18. The Audit and Risk Assurance Committee will also provide an Annual Report, which will summarise the Audit and Risk Assurance Committee’s work for the year past, and present the Audit and Risk Assurance Committee’s opinion about:
Authority
19. The Audit and Risk Assurance Committee is an advisory body with no executive powers. However, it is authorised by the Board to investigate any activity within its terms of reference and to seek any information it requires from the Executive and staff, who are requested to cooperate with the Audit and Risk Assurance Committee in the conduct of its enquiries. Request for work, and reports received, from Internal Audit will be channelled through the Chief Executive or the Chief Finance Officer.
20. The Audit and Risk Assurance Committee is authorised to obtain independent professional advice if it considers this necessary and these advisors may attend the meetings from time to time.
Duties and Responsibilities
21. The Audit and Risk Assurance Committee will advise the Board and Chief Executive on:
22. The Audit and Risk Assurance Committee will also periodically review its own effectiveness and report the results of that review to the Board.