5. To oversee the financial and other relevant reporting processes implemented by management.

6. To work with the Trustees in setting appropriate standards of financial management and in overseeing compliance.

7. To keep under review the effectiveness of the systems for internal financial control, financial reporting and risk management, including compliance with the legal and regulatory environment.

8. Prior to consideration and approval of the annual report and accounts of the Unincorporated Entities by the Trustees, the Committee shall consider the integrity of the annual accounts, reviewing significant financial reporting issues and judgments which they contain. In particular, the Committee shall review and challenge where necessary:

a)The suitability, consistency of, and any changes to, accounting policies on a year by year basis;

b)The methods used to account for significant or unusual transactions where different approaches are possible;

c)Whether the Unincorporated Entities have followed applicable financial reporting standards and made appropriate estimates and judgements, taking into account the views of the external auditor;

d)The clarity of disclosure in the accounts of the Unincorporated Entities and the context in which the accounts are to be published; and

e)All narrative reports presented with the accounts.

9. To monitor and review the effectiveness of the Unincorporated Entities' internal audit and compliance functions in the context of the Unincorporated Entities' overall arrangements.

10. To consider and make recommendations to the Trustees on the appointment, re-appointment and removal of the internal auditors.

11. To oversee the relationship with the internal auditors, including approval of their terms of engagement and remuneration and assessing their effectiveness and compliance with relevant professional and regulatory requirements.

12. To consider and approve the remit of the internal audit and compliance functions and programme of work, ensuring that it is adequately resourced and has appropriate access to information to enable it to perform their functions effectively and in accordance with relevant professional standards.

13. To receive reports on the internal audit and compliance work on a periodic basis.

14. To review and monitor management's responsiveness to internal audit and compliance findings and recommendations.

15. To meet with the internal auditors at least annually without the presence of management to discuss their remit and findings.

16. To oversee the relationship with the external auditors, including: the terms of their engagement; proposed scope of work; remuneration; provision of any non-audit services; and assessing their effectiveness and compliance with relevant professional and regulatory requirements.

17. To consider and make recommendations to the Trustees on the appointment, re-appointment and removal of the external auditors.

18. To review with the external auditors: the findings of their work, including any major issues that arose during the course of the audit and have subsequently been resolved and those issues that have been left unresolved, key accounting and audit judgements, levels of errors identified during the audit. They shall obtain explanations from management and, where necessary, the external auditors as to why certain errors might remain unadjusted.

19. To review the audit representation letter before consideration by the Trustees, giving particular consideration to matters that relate to non-standard issues.

20. To assess, at the end of the audit cycle, the effectiveness of the audit process.

21. To review and monitor the content of the external auditors’ management report in order to assess whether it is based on a good understanding of the business of the Unincorporated Entities and establish whether recommendations have been acted upon and, if not, the reasons they have not been acted upon.

22. To meet with the external auditors at least annually without the presence of management to discuss their remit and findings.

23. To review procedures established by management for detecting fraud and whistle blowing and ensure that arrangements are in place by which staff may, in confidence, raise concerns about possible improprieties in matters of financial reporting or financial control.

24. In the event of the review raising a matter of concern, to raise the matter with the Trustees or their Governance Group.

25. The minutes of meetings of the Committee, once approved, shall be circulated to the Trustees or their Governance Group.

26. The Committee shall prepare an annual report to the Trustees on its role and responsibilities and the actions taken to discharge those responsibilities, including, if appropriate, such information as may be required for inclusion in the annual report of the Unincorporated Entities.

27. Minutes of the meetings of the Trustees and of the Trustees' Governance Group, once approved, will be exhibited to the committee; under exception of any confidential paper apart on matters such as employment which will be disclosed by the Administrative Trustee in confidence to the Convener of the Committee.