For audit and risk committees overseeing charities, regular self-assessment is crucial to ensure they are operating effectively and meeting governance, risk management, and audit standards. BDO’s recent Charity Audit and Risk Committee Checklist offers a practical tool designed specifically for committees to evaluate their performance, identify any gaps, and strengthen their oversight.
The checklist encourages committees to regularly review their effectiveness by assessing key areas such as their terms of reference, work plans, and communication forums. The process offers a useful tool to help committees spot opportunities for improvement, and highlights any skills or knowledge gaps among members.
Some core responsibilities covered by the checklist include:
- Ensuring the charity maintains a robust system of integrated governance, risk management, and internal controls
- Monitoring that risks are appropriately mitigated to avoid impacting objectives
- Securing assurance from internal and external audits
- Overseeing the preparation of the Annual Governance, Risk and Control statement within the financial accounts.
The checklist also stresses the importance of escalating significant issues to the board of trustees, reinforcing strong governance and accountability throughout the organisation.
BDO recommends that the self-assessment be completed by all committee members, alongside key senior management figures who regularly report to the committee - such as the Finance Director - and include feedback from internal and external auditors.
This inclusive approach provides a rounded perspective on committee effectiveness and supports a culture of continuous improvement. The checklist is based on charity best practices, aligned with the Charity Governance Code, and reflects direct feedback from committees and staff, ensuring it’s a relevant and comprehensive tool.
Learn More:
Access the full insight and checklist here.