The Audit and Budget Sub-Committee

1. Responsibilities
   1. To review the HKMA’s financial statements, the composition and accounting principles adopted in such statements, whether these are intended to be audited or published or not;
   2. To advise on the form and content of the financial statements of the HKMA;
   3. To examine and review with both the external and internal auditors the scope and results of their audits;
   4. To review the findings, recommendations or criticisms of the auditors, including their annual management letter and management’s response;
   5. To review the HKMA’s management procedures to ensure the effectiveness of internal systems of accounting and control, and management’s efforts to correct deficiencies discovered in audits;
   6. To initiate investigations or audit reviews into any activities of the HKMA which may be of concern or interest to the Sub-Committee;
   7. To formulate recommendations to the Financial Secretary through the Exchange Fund Advisory Committee (EFAC) on the HKMA’s three-year plan and annual budget; and
   8. To consider any other matters referred to it by EFAC; and to report on all such matters to EFAC.
2. Authority

   The Sub-Committee shall be entitled to obtain any information it requires from any member or employee of the HKMA, and all such members and employees shall be instructed to assist the Sub-Committee to the fullest extent possible. The Sub-Committee may also take such independent legal or other professional advice as it considers necessary. The Sub-Committee shall have no executive powers as regards its findings and recommendations.

3. Meetings

   The Sub-Committee shall meet at least twice a year. The Secretary to EFAC shall attend its meetings and take minutes, copies of which shall be circulated to EFAC. The Chief Executive of the HKMA shall be entitled to attend the Sub-Committee’s meetings. In all other respects, the Sub-Committee shall decide its own procedures.

Note : Formerly known as the "Audit Sub-Committee".