The primary task of the Committee is to verify the adequacy of the internal control system and its effective implementation, and to provide any recommendations to the Board that would activate and develop the system in a manner that achieves the club's objectives and protects its interests efficiently, with the aim of:
1. Verifying the sufficiency and adequacy of internal audit activities by reviewing the effectiveness of the arrangements for managing the internal audit and the extent of their sufficiency and adequacy.
2. Verifying the club management's response to the issues identified and monitored by the Committee, while ensuring the independence of the internal audit management.
3. Verifying the club's acceptance and understanding of the role, work, and value of internal audit and the application of the approved mechanisms, such as the annual internal audit report.
4. Measuring and evaluating the level of effectiveness of the internal control and audit systems in the club.
5. Verifying the club's compliance with the laws, standards, and policies related to the scope of work, tasks, and responsibilities of the Committee.
1. Review and reassess the adequacy of the tasks, rules, and controls included in this Regulation periodically, and update the Regulation with the proposed changes and recommendations after obtaining the Minister's approval.
2. Monitor the club's activities and verify the policies and procedures that ensure the integrity and accuracy of the reports and financial statements, as well as the internal control systems, and include this in their annual reports to be presented to the General Assembly.
1. The Committee is formed by a decision of the Minister. It consists of a Chairman and three members, including one specialized in financial and accounting affairs and another specialized in legal affairs.
2. The formation of the Committee must include two members representing the Ministry, one of whom shall be the Chairman.
3. The formation of the Committee must include two members representing the Board of Directors of the club, provided that the club representative is not the Chairman of the Board or his Deputy, or any members of the Board who have executive tasks in the club, or any employees of the club.
4. If the membership of any of the Committee members becomes vacant for any reason, the Minister shall appoint a replacement to complete the remaining term of the Committee's session.
5. In the event of the dissolution of the Council, the two appointed members in the Committee shall continue to serve as representatives of the club in performing their duties to ensure the continuity of the Committee's work until a new Board of Directors is formed and new members representing the club in the Committee are approved.
6. Except as stated in paragraph (5) of this article, if the club representative loses their official capacity held in the club, their membership in the Committee shall automatically terminate.
7. No changes to the membership of the Committee may be made except by a decision of the Minister.
8. The Minister may approve compensation for the members of the Committee, and the club must bear the costs and commit to paying them on their due dates.
The duration of membership in the Committee is four years, coinciding with the beginning of the Council's term. However, this does not apply to newly established committees for the first time, as their duration will end with the conclusion of the current Council's term.
A member of the Committee must adhere to the following:
1. The laws, regulations, and circulars of the Ministry and its decisions, as well as the regulations of sports clubs that comply with the law.
2. Refrain from engaging in or participating in any action that may harm the interests of the clubs.
3. Be aware of the Committee's tasks and responsibilities, and allocate sufficient time to fulfill their role in achieving them.
4. Carry out their duties free from any external influence, whether from within the club or outside it.
5. Prepare for meetings and commit to attending them, and not to be absent except for justified reasons that must be communicated to the Chair of the Committee in advance.
6. Actively participate in Committee meetings by studying the topics on the agenda and discussing them.
7. Work to enhance knowledge of organizational developments related to the club's activities.
8. Maintain the confidentiality of the information obtained through their membership in the Committee, using it solely for the purpose of fulfilling their membership duties, and not to announce or disclose any of that information to any third party, or to exploit it in any form or use it for any purpose, or to deal with it in relation to the media, or to speak on behalf of the Ministry. This obligation also includes maintaining the confidentiality of such information after the termination of membership in the Committee.
The tasks of the Committee include, in particular, the following:
A - Financial Reports:
1. Reviewing the preliminary quarterly and annual financial statements before presenting them to the Council and providing opinions and recommendations regarding them to ensure their integrity, fairness, and transparency.
2. Discussing the financial statements with the external auditor and the financial management and recommending their submission to the Council.
3. Providing technical opinions at the request of the Council regarding whether the Council's annual report and the club's financial statements are fair, balanced, and understandable, and include information that allows the General Assembly to assess the club's financial position, performance, business model, and strategy.
4. Studying any significant or unusual issues included in the financial reports and accounts.
5. Reviewing reports submitted by the financial management regarding budget performance and analyzing variances between actual expenditures and the approved budget.
6. Reviewing the budget and discussing it with the financial management and recommending it before submitting it to the Council.
7. Investigating any issues raised by the club's financial manager or their designee or the compliance officer of the club or the auditor.
8. Studying the accounting policies followed in the club and providing opinions and recommendations to the Council regarding them.
B - Internal Audit:
1. Recommending to the Council the appointment of the Director of the Internal Audit Department and its staff, evaluating their performance, and recommending the dismissal of the audit director when necessary based on clear and written justifications.
2. Supervising the Internal Audit Department, which should be administratively linked to the President of the Council and technically to the Committee, and verifying its effectiveness.
3. Studying and reviewing the internal and financial control systems and risk management in the club and ensuring their effectiveness through periodic reports from the Internal Audit Department or others regarding the efficiency and effectiveness of the internal and financial control systems, and preparing a report that includes proposals and recommendations regarding them to be submitted to the Council.
4. Studying internal audit reports and following up on the implementation of corrective actions for the observations contained therein.
5. Monitoring and supervising the performance and activities of the internal auditor and the Internal Audit Department in the club, to verify the availability of necessary resources and their effectiveness in performing the assigned tasks.
6. Ensuring the independence of the Internal Audit Department and enabling it to perform its work effectively by studying any constraints that may affect its ability to perform its duties and tasks, and providing proposals and recommendations to address them.
7. Studying the internal audit plan, the budget allocated for its implementation, and recommending the Council's approval of it.
8. Reviewing and approving the work regulations, tasks, and responsibilities of the Internal Audit Department.
9. Reviewing and approving the procedures and policies manual for internal auditing and any policy or regulation related to the work of the Internal Audit Department, such as the escalation policy or the code of ethics for the Internal Audit Department, among others.
10. Reviewing the process of selecting internal auditors hired from external sources and recommending to the Council regarding that whenever necessary.
C - Audit Review:
1. Recommending to the Council the nomination of auditors and evaluating their performance and dismissing them, after ensuring their independence and reviewing the scope of their work and the terms of their contracts.
2. Verifying the independence of the auditor and the effectiveness of the audit work, taking into account the relevant rules and standards.
3. Reviewing the club auditor's plan and work, ensuring that there are no violations or deficiencies in the performance of their duties, and verifying that they are not performing tasks outside the scope of the audit work, and providing their views on that.
4. Studying the auditor's reports and observations on the financial statements and providing views on them if any, and following up on what has been done regarding them.
5. Discussing the auditor and inquiring from them if necessary.
D - Compliance and Risk Monitoring:
1. Reviewing the selection of the Compliance Department Manager in the club or their designee.
2. Reviewing the results of the Compliance Department reports and verifying that the club has taken the necessary actions regarding them.
3. Monitoring compliance with regulations, rules, policies, and procedures and the effectiveness of the procedures followed by the club to monitor compliance and update them continuously through compliance reports.
4. Submitting to the Council within its scope of work any issues it deems necessary to address, and providing its recommendations on the steps that need to be taken.
5. Ensuring the extent of risks and studying them.
6. Recommending the approval of compliance and risk management policies and procedures that define the minimum appropriate monitoring and oversight, set limits on risks, and specify reporting requirements from the management's perspective.
7. Receiving annual reports from the internal auditor regarding the implementation of risk management policies and procedures in the club, and providing recommendations for change in case of any issues with the management or internal audit methodologies.
8. Conducting an annual assessment of the club's business strategies and plans from a risk perspective.
9. Discussing policies related to risk assessment and risk management that the club may be exposed to and reviewing the steps taken by the club's management to monitor and oversee exposure to financial risks.
10. Reviewing and evaluating the risks of key activities on a periodic basis.
E - Other Tasks:
1. Executing any other task consistent with these regulations and the applicable rules in the club as assigned by the Council or the President of the Council.
2. The President is responsible for reporting the decisions and recommendations made by the Committee and disseminating them to the relevant parties in coordination with the Trustee.
3. Requesting the assistance of independent consultants such as legal advisors or specialists in strategic studies and ensuring the availability of the allocated budgets for that whenever necessary to assist the Committee in performing its tasks.
4. Reporting to the Council or the Minister of Sports or both in case there are any obstacles hindering the Committee from performing its tasks.
1. Preparation and coordination for meetings, including the preparation of the agenda in coordination with the President, notifying the members, and preparing the agenda to be sent one week prior to the date of the Committee's meeting.
2. Attending Committee meetings, preparing and documenting the minutes of the meetings, in addition to recording votes, supporting and opposing views, and presenting the results of the voting.
3. Providing Committee members and relevant parties with copies of the minutes of the meetings.
4. Inviting parties that the Committee requests to be invited to its meetings.
5. Following up with the relevant departments in case there are decisions or recommendations from the Committee that require procedural steps and monitoring their implementation.
6. Keeping all Committee documents, including agendas, minutes, and records.
7. Executing any other tasks or responsibilities assigned to him by the President of the Committee.
8. Reporting to the President any obstacles facing the Committee's work, including any delays in implementing its decisions and recommendations.