LEP Audit and Risk Committee
Terms of Reference
Purpose
To ensure the development and implementation of the LEP’s polices on strategic risk management,
financial reporting, audit process, system of internal controls, providing oversight and monitoring the
integrity of these systems and ensuring compliance with the assurance framework.
Responsibilities
Ensure that appropriate procedures are in place to identify, assess and manage risk from a
strategic and operational perspective, to monitor implementation of Risk Management
procedures and to report to the LEP Board as necessary.
Manage strategic risk and have oversight of the operational risk which is managed by the
Management Committee.
Oversee the company’s relations with the external auditor and has primary responsibility for
making a recommendation on the appointment, reappointment and removal of the external
auditors.
Assess the independence and objectivity of the external auditor annually, taking into
consideration relevant UK law, regulation and professional requirements.
Review the effectiveness of the company’s internal financial controls (that is, the systems
established to identify, assess, manage and monitor financial risks.
To review, and challenge where necessary, the actions and judgements of management in
relation to the annual financial statement.
to review and to provide advice on whether the Annual Report and financial statements, taken
as a whole, are fair, balanced and understandable and provide the information necessary to
assess the company’s performance, business model and strategy.
Oversees the development, implementation annual review of the LEP’s Assurance
Framework.
Membership and Appointment
The committee will consist of four members. An independent Chair will be appointed by the LEP
board, the Accountable Body s151 Officer and two LEP Board members who are also appointed by
the LEP Board. The LEP Chairman, members of the Investment Appraisal Committee and members
of the Leadership Team shall not be members of the Committee. The accountable body s151 officer
be allowed to delegate authority to a suitable representative from the Suffolk County Council team.
Quorum
The quorum necessary for the transaction of business shall be three of which include the
independent Chair and the Accountable Body s151 Officer, or authorised representative. Substitutes
may only be accepted in exceptional circumstances and only for public sector members at the
discretion of the Chair.
Attendance of non-members at meetings
The LEP COO will provide management support. Other attendees include the Financial Controller,
other individuals with oversight of risk, and a representative of the external auditor shall attend
meetings at the invitation of the Committee. Other members of LEP Leadership Team may also be
invited to attend meetings when required.
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Meeting Frequency
Meetings shall be held twice a year and, where appropriate, will coincide with key dates in the LEPS’s
financial reporting cycle. The Chair of the Audit & Risk Committee, LEP COO or external auditor may
request a meeting if they consider that one is necessary.
Delegated Authority including limits
The Committee is authorised by the LEP Board to investigate any activity within the Committee’s
terms of reference and, within its scope of responsibilities, to seek any information it requires and to
ensure the attendance of management representatives at meetings as appropriate. The Committee
has the authority to obtain outside legal or independent professional advice. The advisers may attend
meetings as necessary and the cost of the advisers shall be within budgetary constraints.
Reporting procedures
Relevant key points will be reported through the LEP Board and recorded in the Board minutes which
are published on the LEP website.
Review
The Committee shall, review its own performance once a year and terms of reference to ensure it is
operating at maximum effectiveness and recommend any changes it considers necessary to the
LEP Board for approval.
The membership of the Committee will be reviewed annually.
Approved by LEP Board: 30 January 2019
Last Updated: 3 January 2019
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