F146[40I.— (1) The audit committee shall, on and after the relevant day—

(a) advise the chief executive officer on financial matters relating to his or her functions,

(b) report in writing at least once in every year to the chief executive officer on those matters and on the activities of the committee in the previous year, and

(c) provide a copy of that report to the Board and the Minister.

(2) The audit committee shall, on and after the relevant day—

(a) advise the Board on financial matters relating to its functions,

(b) report in writing at least once in every year to the Board on those matters, and

(c) provide a copy of that report to the Minister.

(3) The audit committee’s functions under subsections (1)(a) and (2)(a) include advising on the following matters:

(a) the proper implementation by the Executive of Government guidelines on financial issues;

(b) compliance by the Executive with—

(i) sections 33 and 33B, and

(ii) any other obligations imposed by law relating to financial matters;

(c) compliance by the chief executive officer with section 34A;

(d) the appropriateness, effectiveness and efficiency of the Executive’s procedures relating to—

(i) public procurement,

(ii) seeking sanction for expenditure and complying with that sanction,

(iii) the acquisition, holding and disposal of assets,

(iv) risk management,

(v) financial reporting, and

(vi) internal audits.

(4) Subject to subsection (7), the audit committee shall meet at least 4 times in each year and may invite any person it considers appropriate (whether that person is or is not an employee of the Executive) to attend a meeting of the committee.

(5) The chief executive officer shall—

(a) ensure that the audit committee is provided with all of the Executive’s audit reports, audit plans and monthly reports on expenditure, and

(b) if he or she has reason to suspect that any material misappropriation of the Executive’s money, or any fraudulent conversion or misapplication of the Executive’s property, may have taken place, report that matter to the audit committee as soon as practicable.

(6) The chief executive officer shall furnish to the audit committee information on any financial matter or procedure necessary for the performance of its functions by the committee when requested to do so by the audit committee and where such information relates to—

(a) any contract that the Executive proposes to enter into involving expenditure of an amount in excess of a threshold specified by the committee, and

(b) any legal proceedings taken or threatened against the Executive that may give rise to potential financial liability.

(7) A meeting of the old audit committee held in the same year as the year in which the relevant day falls shall count as a meeting of the new audit committee for the purposes of subsection (4).]]