Local Government (Business Improvement Districts) Act 2006

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Amendment of section 122 (audit committee) of Principal Act.

5.— The Principal Act is amended by substituting the following section for section 122:

“Audit committee.

122.— (1) A local authority shall, within such period as the Minister prescribes by regulations for the purposes of this subsection, establish a committee (in this Chapter referred to as an ‘audit committee’).

(2) The functions of an audit committee shall be to—

(a) review financial and budgetary reporting practices and procedures within the local authority that has established it (the ‘authority’),

(b) foster the development of best practice in the performance by the authority of its internal audit function,

(c) review any auditor’s report or auditor’s special report in relation to the authority and assess any actions taken by management within the authority in response to either such report,

(d) assess and promote efficiency and value for money with respect to the authority’s performance of its functions,

(e) review systems that are operated by the authority for the management of risks, and

(f) make such recommendations to the authority as the committee considers appropriate in relation to the foregoing matters.

(3) The Minister may by regulations make provision in respect of all or any of the following matters regarding an audit committee:

(a) its membership;

(b) the holding by it of meetings, including the frequency of those meetings and the conduct of them;

(c) the preparation of reports by it and the furnishing of them to others;

(d) the performance by it of its functions, whether generally or in particular cases, and the procedures to be followed in relation to that performance; and

(e) matters incidental to, or consequential on, any of the foregoing matters (including provision for privilege to attach to statements made to it or made by members of it in their capacity as such members).

(4) The obligation imposed by subsection (1) applies in relation to a local authority notwithstanding that one or more than one audit committee (a ‘relevant committee’) stands established by the local authority under this section (being this section in the terms as it stood before the amendment of it by section 5 of the Local Government (Business Improvement Districts) Act 2006) and accordingly, on and after the commencement of that section 5 , such a relevant committee shall not constitute an audit committee for the purposes of subsections (1) to (3).”.