Common use of Management Audit Clause in Contracts

Management Audit. 3.1 If an audit is required under paragraph 2.5 RSP shall carry out an audit of the Licensee’s management systems against the Licensee Control Objectives (the “Management Audit”). The Management Audit shall report whether or not: (a) the Licensee has in place and is complying with its own controls, objectives, policies and procedures that meet the requirements of this Agreement and the Licensee Control Objectives; (b) the Licensee has reported to RSP in a timely manner any material deficiencies by the Licensee of its obligations under this Agreement, and the Licensee Control Objectives together with any mitigating action taken. 3.2 Save in the event that any fraud or other malpractice is suspected RSP shall, within a reasonable and agreed time, notify the Licensee prior to the commencement of any audit or visit connected with the Management Audit which audit or visit shall not materially disrupt the business operations of the Licensee. 3.3 RSP shall permit the Licensee who is the subject of an audit or visit connected with the Management Audit, to verify the identity of the auditor with RSP. 3.4 Upon completion of the Management Audit, RSP shall forward to the Finance Director (or other similar authorised representative) of the Licensee in draft form a copy of the Management Audit report. 3.5 RSP shall provide an opportunity for the Licensee to attend a review meeting at the end of each audit or visit connected with the Management Audit and to review a copy of the draft Management Audit report. 3.6 RSP shall issue the final Management Audit report to the Licensee addressed to the Finance Director (or other similar authorised representative). 3.7 The final Management Audit report will be presented at the next available meeting of the relevant RSP Board Audit Sub-Committee. If so determined the final Management Audit report, or extracts, will be presented to the RSP Board Audit Committee. 3.8 RSP shall follow-up and initiate an escalation process, within a reasonable and agreed time, to ensure that any key issues flowing from an audit or visit connected with the Management Audit are reported and appropriate action taken. Improvement Action - means the work that the Licensee must carry out pursuant to the Plan to improve performance of their obligations under the Agreement or which the Licensee may be required to carry out. Plan - means the analysis and improvement plan which the Licensee must produce in accordance with the provisions of this Schedule. ATOC Compliance Audit - means the survey and/or audit to determine whether the Licensee is complying with his obligations under the Agreement.