Financial Operational and Audit Committee Mandate
The purpose of the Financial Operations and Audit Committee is to assist the Board of Directors in fulfilling its oversight responsibilities and to ensure compliance with laws and regulations, oversee the financial systems and internal controls. It is also to ensure that the external audit is conducted in an efficient and cost- effective manner, review the budget and financial statements and bring forth recommendations for the appointment of the external auditors and the appropriate fee.
More specifically the purpose of the Committee is to satisfy itself that:
- The organization’s financial statements are reviewed in accordance with generally accepted accounting principles and to recommend approval of the statements to the board;
- The organization has appropriate systems of control over the safeguarding of assets and financial reporting to ensure compliance with legal requirements and to manage financial and asset related risks;
- The external audit function has been effectively carried out and that any matter which the external auditors wish to bring to the attention of the Committee or Board of directors has been addressed. The Committee is also responsible for appointing and overseeing the external auditors, monitoring the external auditors’ qualifications and independence, pre-approving all substantive audit services and non- audit services performed by the external auditors, and determining the appropriate level of remuneration for the external auditors. The external auditor will report directly to the Financial Operations and Audit Committee and the committee will report the Board of Directors.
- The internal audit function is being effectively carried out and that the Committee is meeting regularly with the Executive Director.
Terms of Reference
Creation: The Board of Directors created the Finance Committee in 2003 expanded its role and renamed it the Financial Operations and Audit Committee in 2005.
Status: The Committee is a standing committee and reports directly to the Board of Directors.
Functions: The Financial Operations and Audit Committee’s responsibility is to provide assistance to the Board of Directors in fulfilling its legal and fiduciary obligations with respect to matters involving the accounting, auditing, financial reporting, internal control and financially related legal compliance of the organization.
The Financial Operations and Audit Committee will review, comment upon and / or recommend to the Board of Directors regarding:
1. Financial Reporting
- Review the annual financial statements of the Kamloops Sports Legacy Fund Society and ensure:
2. External Audit
- The scope of the external auditor’s examination of the annual financial statements;
- The content of any management letters received from the external auditor, and management’s responses and action plans;
- The external auditor’s opinion addressed to the Board of Directors;
- The annual appointment of the external auditor and the remuneration to be paid for the regular annual audit;
- The confirmation of the external auditor’s independence and
- The monitoring of the quality and effectiveness of the external auditor’s relationships with management.
3. Internal Audit
- The policies and procedures for internal audit , to ensure that they meet the audit requirements of the organization as determined by the Financial Operations and Audit committee and approved policies by the Board of Directors;
- Adequate coordination and cooperation between the internal and external audit functions;
- The terms of reference, the budget, the policies and procedures of the internal auditor and
- The specific reports of the Executive Director as required, including recommendations, and follow up on actions plans.
4. Risk Management:
The Kamloops Blazers Sports Society recognizes that risk management is an integral part of good management practice and considers it an integral part of good governance.
The organization is committed to achieving best practices in risk management and applying these principles throughout the organization. As a result of this process the organization will be able to demonstrate, that it has in place a strategy, structure and process to effectively identify and manage its exposure to risk. Risk management is recognized as an integral part of day- to day operations.
The main policy objectives for managing risks are to:
- Assist the organization in achieving strategic objectives and goals;
- Safeguard the organization’s assets- people, reputation, finances, property and information.
Responsibilities: As a committee of the Kamloops Sports Legacy Fund Society, the Financial Operations and Audit Committee retains the responsibility within the overall risk management framework on behalf of the Board.
Composition: The Financial Operations and Audit Committee shall consist of a minimum of three (3) Board members and the Executive Director. All members shall be financially literate and sufficiently versed in financial matters to understand the organization’s accounting practices and policies.
The Board Chairman appoints the members annually.
Operating Procedures: The Financial Operations and Audit Committee will meet regularly to support its responsibilities and report to the Board at its regular meetings.