Simon Liversedge

Financial handbook for independent training providers


I would like to better understand our requirements for 3.4 to have an independent audit and risk committee. The handbook says it needs to be independent but could be at group level. Does this mean I can create a committee internally as long as myself (Funding and Compliance) does not take part in this group? 

It asks for a minimum of 3 people and that these people have the relevant skills to carry out the responsibilities. However being independent the people with these skills would be some of the senior leaders which are involved in both finance and operations/audit. 

Would it be acceptable for these members to work in a quality/operations/customer account setting as they would be separate from an audit and finance function although they are involved in some of the decision making processes? 

The funding compliance scrutiny function I am assuming would be the work that my team carry out and that being the audit and compliance team?

Being a large provider these are required and I believe it is only the committee we don't currently have in a formal independent structure so any suggestions as to how others are approaching this would be welcome.  


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Chris Roberts

Our committee is made up from MIS Management, Financial Managers/Accountants who are employed by our Organisation plus 1 non exec Finance Director. 

Membership of the audit & risk committee
3.6. Where an ITP has an audit and risk committee, it is recommended the 
committee includes:
• A minimum of 3 people.
• Non-executive directors, where appointed.
• People with the relevant skills to carry out the responsibilities listed 
• If possible, people with experience relevant to the organisation.

Simon Liversedge

Thank you Chris that is really helpful, much appreciated. 

Darren Vidler

Ours is our CEO, Director of Quality & Compliance and one of our NEDs so we've got some expertise from within the business function, then SLT representation and NED which I believe meets the requirements as outlined in Chris' response above.

Simon Liversedge

Thanks Darren Vidler it says it needs to be independent so I did not think I would be able to contribute to this group, would assume that would be the same for your compliance director? Have asked the ESFA if they can expand a bit more on it and have an AELP webinar to catch up on so hopefully that will give some thoughts too.