Standing Advisory Committee on Audits
Revised Terms of Reference
(CERN/SPC/939/Rev.2-CERN/FC/5406/Rev2.-CERN/2883/Rev.2)
General remit
The Standing Advisory Committee on Audits (hereinafter referred to as the Committee), a subordinate body established by the Council in accordance with Article V paragraph 12 of the Convention, assists and advises the Council on the effectiveness of the Organization’s audit structure including that of its Pension Fund and on appropriate measures to mitigate risks identified.
I.Terms of reference
External Audit
The Committee shall:
with regard to the certification of the financial statements of the Organization and of its Pension Fund:
1. analyse the External Auditors’ reports and, taking into account the responses from the CERN Management and the Pension Fund Management, advise the Council on appropriate measures;
with regard to other audits:
2. analyse the External Auditors’ audit plans and advise the Council on any additional matters that the External Auditors could be requested to audit;
3. analyse the resulting External Auditors’ reports and, taking into account the response from the CERN Management and the Pension Fund Management, advise the Council on appropriate measures;
and, in general:
4. monitor the action taken by the CERN Management and the Pension Fund Management to follow up the External Auditors’ recommendations and related Council decisions, if any;
5. assist the Council in any other matter pertaining to external audit, including the appointment of the External Auditors.
CERN Internal Audit
The Committee shall also:
6. advise on measures necessary to ensure the independence of the CERN’s internal audit activity;
7. analyse the CERN Internal Audit plan of work and provide input if necessary, prior to the plan’s consideration and approval by the Director-General.
Pension Fund Internal Audit
The Committee shall further:
8. advise on measures necessary to ensure the independence of the Pension Fund’s internal audit activity;
9. analyse the Pension Fund internal audit plan of work and provide input if necessary, prior to the plan’s consideration and approval by the Pension Fund Governing Board.
In addition,
The Committee shall:
10. analyse the Organization’s Annual Progress Report and, within its general remit and taking into account comments by the Scientific Policy Committee, the Finance Committee and the External Auditors, advise the Council on measures to be taken, if any, including targeted audits;
11. advise the Council, on its request, on any other matters related to risks identified.
II. Authority
12. On request, the Committee shall be provided with any information it may require from the CERN Management and the Pension Fund Management to fulfil its remit.
13. The Committee may call on experts to assist it in its work.
III. Composition
14. The Committee shall be composed of a minimum of four and a maximum of six members comprising: − the Chair of the Finance Committee − Council delegate(s) appointed by the Council (at least one) − experts appointed by the Council (at least two).
15. The Committee shall be chaired by the Chair of the Finance Committee.
16. Experts shall be selected by the Chair following a call for applications, and proposed for appointment by the Chair, in consultation with the President of Council, to the Council.
17. The Committee members shall serve for a maximum of three years. However, an exceptional extension of a maximum period of one year beyond the three-year limit can be approved if required for the Committee to function properly, in particular to avoid termination of several appointments on the same date.
18. The President of the CERN Council may attend the Committee meetings.
19. The Head of CERN’s Internal Audit Service shall act as the Secretary of the Committee.
IV. Qualifications and independence
20. The members of the Committee should collectively have the skills, knowledge and experience needed to fulfil the Committee’s duties (e.g. previous responsibilities in management of research laboratories or international organisations, audit functions, financial expertise, etc.).
21. Members of the Committee shall act solely in the best interest of the Organization and independently of their respective constituencies.
V. Reporting
22. The Committee shall regularly report to the Council and, when the Chair considers it appropriate, to its subordinate bodies.
VI. Meetings
23. The Committee shall meet at least three times a year and may convene additional meetings as required.
24. The Committee’s deliberations shall be minuted.