Notices

Calendar

17 January, Tuesday. Full Term begins.

21 January, Saturday. Congregation of the Regent House at 2 p.m.

24 January, Tuesday. Discussion at 2 p.m. in the Senate-House (see below). End of first quarter of Lent Term.

5 February, Sunday. Preacher before the University at 11.15 a.m., Professor M. W. Dube, of the University of Botswana.

Discussions at 2 p.m.	Congregations
24 January	21 January, Saturday at 2 p.m.
7 February	18 February, Saturday at 2 p.m.
21 February	24 March, Saturday at 10 a.m.
6 March
20 March

Statute approved: Notice

19 December 2011

The Registrary has received notice from the Clerk at the Privy Council Office that Her Majesty the Queen, at a Council held on 14 December 2011, was pleased to approve an amendment of Statute A, VII (Board of Scrutiny) which was submitted under the Common Seal of the University in accordance with Grace 2 of 28 April 2011.

The amendment to Statute A, VII, 3(c) authorized under this Grace replaces a reference to an age-limit for two of the members of the Board of Scrutiny elected by the Regent House by reference to the period of time for which a person has been a member of the Regent House or Senate (see the Report of the Council on amendments to the composition of the Board of Scrutiny and of the Nomination Board, Reporter, 2010–11, p. 597).

Installation of the Chancellor: Notice

9 January 2012

The Vice-Chancellor gives notice that the installation of The Lord Sainsbury of Turville as Chancellor will take place on Wednesday, 21 March 2012. A Congregation will be held in accordance with Statute A, VIII, 2, and further details will be published in due course.

Conferment of Honorary Degrees: Notice

9 January 2012

The Vice-Chancellor gives notice, in accordance with Statute A, VIII, 2, that a Congregation will be held on Wednesday, 20 June 2012, for the conferment of Honorary Degrees. Further details will be published in due course.

Notice of a Discussion on Tuesday, 24 January 2012

The Vice-Chancellor invites those qualified under the regulations for Discussions (Statutes and Ordinances, p. 107) to attend a Discussion in the Senate-House, on Tuesday, 24 January, at 2 p.m., for the discussion of:

1. Annual Report of the Council for the academical year 2010–11, dated 21 November 2011 (Reporter, 2011–12, p. 216).

2. Annual Report of the General Board to the Council for the academical year 2010–11, dated 2 November 2011 (Reporter, 2011–12, p. 222).

3. Reports and Financial Statements for the year ended 31 July 2011 (Reporter, 2011–12, p. 227).

4. Joint Report of the Council and the General Board, dated 28 November 2011 and 2 November 2011, on the provision of sites and buildings regulations (Reporter, 2011–12, p. 269).

5. Joint Report of the Council and the General Board, dated 12 December 2011 and 30 November 2011, on a retirement policy for University staff (Reporter, 2011–12, p. 347).

6. Report of the Faculty Board of Clinical Medicine, dated 28 November 2011, on the M.D. Degree (Reporter, 2011–12, p. 314).

Flying of the University Flag and ‘scarlet days’ in 2012: Notice

The Vice-Chancellor publishes for information the following list of dates in 2012 on which it is expected that the University Flag will be flown from the Old Schools:

6 February	Accession of HM The Queen
21 March	Installation of the Chancellor
21 April	Birthday of HM The Queen
23 April	St George’s Day
2 and 3 June	Diamond Jubilee of HM The Queen
10 June	Birthday of HRH The Duke of Edinburgh
16 June	Official Birthday of HM The Queen (tbc)
20 June	Congregation for Honorary Degrees
28, 29, and 30 June	General Admission to Degrees
1 October	Address by the Vice-Chancellor and Election and Admission of the Proctors
14 November	Birthday of HRH The Prince of Wales

'Scarlet days'

Members of the University may also find it convenient to be reminded of the days appointed annually for the wearing of festal gowns, which are also days on which the academical dress of other universities may in general be worn. In 2012 these are:

8 April	Easter Day
17 May	Ascension Day
27 May	Whitsunday
3 June	Trinity Sunday
28, 29, and 30 June	General Admission to Degrees
1 November	All Saints Day
4 November	Commemoration of Benefactors
25 December	Christmas Day

In addition, the Vice-Chancellor has also designated as ‘scarlet days’, 21 March (Installation of the Chancellor) and 20 June (Honorary Degree Congregation).

Annual Report of the Audit Committee for the financial year 2010–11: Notice

The Council has received the Annual Report of its Audit Committee for 2010–11. The report is published for the information of the University.

1 Executive Summary

This report follows the model advised by HEFCE to provide a comprehensive overview of the Committee’s business during the Financial Year 2010–11.

This section provides a summary of the key opinions, assurances, and issues considered by the Audit Committee during this year.

1.1 Opinion – Risk Management, Control, and Governance

The Audit Committee has monitored the effectiveness of the University’s risk management, control, and governance arrangements and financial controls throughout the period and has noted that there have been continuous improvements across the University’s activities: the University, individual institutions, and subsidiary companies are making transparent and sustained efforts to understand and incorporate best practice in risk management, governance, and internal controls. The Committee places value on the importance of clear and assessable arrangements for the Governance of the University. These must be appropriate, dynamic, and beneficial to a responsible, self-governing higher education, research, and collegiate institution. The Committee is satisfied that progress in this regard is consistent and incremental.

1.2 Opinion – Economy, Efficiency, and Effectiveness (Value For Money)

The Committee has monitored the effectiveness of the University’s financial controls throughout the period. It is satisfied that there is good evidence of the continuing adoption and improvement of arrangements throughout the University for promoting economy, efficiency, and effectiveness.

1.3 Opinion – Data Integrity

The Audit Committee has monitored the effectiveness of the University’s management and quality assurance of data submitted to HESA, to HEFCE, and to other finding bodies. Internal audit reviews of various aspects of data management have been conducted in the year, for which substantial assurance was given. The Committee is satisfied that the management control and quality assurance of data submitted are effective.

1.4 Internal Auditor

Deloitte LLP replaced Grant Thornton LLP as the University’s internal auditors in January 2010. This is the first full financial year for which they have acted as internal auditors to the University since their appointment.

1.5 Internal Audit Reports

The Committee has considered thirty-five internal audit reports in the 2010–11 financial year. Where a rating was given, 94% of reports were given Satisfactory or Full assurance.

1.6 External Auditor

PricewaterhouseCoopers LLP were re-appointed as the University’s external auditor.

2 Introduction

The Audit Committee is required to prepare an annual report for submission to its own governing body and, in England, subsequently to HEFCE. The Audit Committee Annual Report should be supported by the internal audit annual report (Appendix A – not published with this report).

The contents and structure of this report follow the guidance set out in Appendix 6 of HEFCE’s Handbook for Members of Audit Committees in Higher Education Institutions.

This Audit Committee Annual Report is for the Financial Year 1 August 2010 – 31 July 2011 and includes the opinion of the Audit Committee as to the extent to which reliance can be placed on the internal control and reporting systems of the University. The opinion is based on the Committee’s consideration of the internal auditors’ annual reports, a draft of the external auditor’s Management Letter, other work commissioned by the Committee during the year, and on discussions at its meetings and workshops.

A copy of this report will be published in the Reporter for the information of the University.

3 Membership

3.1 Constitution of the Audit Committee

Revisions to the membership structure of the Audit Committee were approved by the University Council and by the Regent House following submission of a Grace on 15 December 2010, reproduced in Appendix B. The revisions related to:

Regulation 1 (membership)
Regulation 1(d) (co-opted members)
Regulation 5 (quorum)
New regulation 6 (Acting Chairman)

For the Council Notice, see http://www.admin.cam.ac.uk/reporter/2010-11/weekly/6208/section1.shtml#heading2-4. The Constitution of the Audit Committee is set out in the Statutes and Ordinances of the University of Cambridge.

3.2 Membership 2010–11

Chairman:	Mr Nigel Brown OBE (to 31 December 2010)
	Mr John Shakeshaft (from 1 January 2011)
Secretary:	Dr Jonathan Nicholls, Registrary
Assistant Secretary:	Dr Holly Kinnear (October 2010)
	Dr Kirsty Allen (interim, to January 2011)
	Mrs Iris Hunter (interim, to February 2011)
	Mrs Tamsin Mann (from 1 February 2011)

Table 1: Membership of the Committee, 2010–11

Class of membership	Name of member	Limit of tenure
(a)	Mr Nigel Brown OBE	31 December 2010
	Mr John Shakeshaft (from 1 January 2011)	31 December 2013
(b)	Mr Robert Dowling	31 December 2012
	Dr David Good	31 December 2012
(c)	Mr John Shakeshaft	31 December 2010
	Mr Nicholas Martin	31 December 2012
	Mr Michael Starkie	31 December 2012
	Mr John Dix	31 December 2013
	Dr Andrew Cates	31 December 2013
(d)	Prof. Lindsay Greer	31 December 2011
	Dr Susan Lintott	31 December 2011
	vacancy

3.3 Process of Appointment

Members are appointed to the Audit Committee by the Council of the University of Cambridge. Following a change in procedure at the end of FY2009–10, the Audit Committee now makes membership nominations to the University’s Council’s Advisory Committee on Committee Memberships and External Nominations.

3.4 University Officers and Auditors

The Audit Committee invites certain senior University officers and the University’s external and internal auditors to attend unreserved meetings. On occasion it may also invite other colleagues to attend for a specific agenda item.

Following recommendations made in the previous financial year, the Audit Committee also invited the Chair of each of the audit committees of Cambridge Assessment and Cambridge University Press to attend all meetings and to make biennial reports.

The Vice-Chancellor is invited to address the Audit Committee annually.

Table 2: Senior Officers, Auditors, and other colleagues invited to attend meetings during 2010–11

Position	Name
Director of Finance	Mr Andrew Reid
Senior Pro-Vice-Chancellor (Planning and Resources)	Professor Steve Young
Internal Auditor – Deloitte LLP	Mr Richard Evans Mr Richard Neal Ms Kirsty Searles
External Auditor – PricewaterhouseCoopers LLP	Mr Clive Everest Mr John Minards Mr Simon Ormiston Mr Stephen Wyborn
Chair of the Audit Committee of Cambridge Assessment	Mr Bruce Picking
Chair of the Audit Committee of Cambridge University Press	Dr Richard Barker
Director of the Management Information Services Division (MISD)	Mr Paul Dampier
Joint Head of the Legal Services Office	Mrs Joanna Cheffins
Chair of the Cambridge Overseas Trust/Cambridge Commonwealth Trust Audit Committee	Mr Peter Davison
Chair, Subsidiary company governance review committee	Mr Nigel Brown

4 Meetings

The table below provides information on meeting dates, those members who attended the meetings, and colleagues and auditors who attended at the invitation of the Committee.

Table 3: Attendance at meetings, FY2010–11

	Members in Class (a)	Members in Class (b)	Members in Class (c)	Members in Class (d)	Senior Officers and Guests	Auditors	Apologies	Quorate
14/10/10	1	2	2	2	5	Internal: 3	1	Yes
18/11/10	1	2	3	2	4	Internal: 2 External: 4	0	Yes
20/01/111	1	1	1	1	4	Internal: 2	6	No
10/03/11	1	2	3	2	4	Internal: 1 External: 2	2	Yes
12/05/11	1	2	3	1	2	Internal: 2	5	Yes
07/07/112	1	2	4	2	6	Internal: 2 External: 1	0	Yes

5 Terms of Reference

The Audit Committee’s Term of References are set out in Statutes and Ordinances of the University of Cambridge,3 and are as follows:

(a)to keep under review the effectiveness of the University’s internal systems of financial and other control;

(b)to advise the Council on matters relating to the external and internal auditors, including their appointment, the provision by the auditors of any additional services outside the scope of their regular responsibilities, the remuneration of the auditors, and any questions relating to the resignation or dismissal of auditors;

(c)to ensure that sufficient resources are made available for internal audit;

(d)to approve proposals for internal audit put forward by the internal auditors;

(e)to review annually with the external auditors the nature and scope of the external audit;

(f)to consider any reports submitted by the auditors, both external and internal;

(g)to monitor the implementation of any recommendations made by the internal auditors;

(h)to satisfy themselves that satisfactory arrangements are adopted throughout the University for promoting economy, efficiency, effectiveness, and risk management;

(i)to establish appropriate performance measures and to monitor annually the performance and effectiveness of the external and internal auditors;

(j)to consider, in consultation with the external auditors, (i) any financial statements annexed to the abstract of accounts, including the auditors’ report, and (ii) any statement provided by the Council on the governance of the University;

(k)to ensure that all significant losses are properly investigated and that the internal and external auditors, and where appropriate the Higher Education Funding Council for England, are informed;

(l)to oversee the University’s policy on fraud and irregularity, and to ensure that they are informed of any action taken under that policy;

(m)to make an annual report to the Council, the Vice-Chancellor, and the Higher Education Funding Council for England;

(n)to receive reports from the National Audit Office and the Higher Education Funding Council for England, and to advise the Council thereon;

(o)to forward minutes of their meetings to the Council.

6 Internal Audit

6.1 Provider

Deloitte LLP were appointed as internal auditors for the University with effect from 1 January 2010 until 30 June 2013, subject to satisfactory contractual arrangements.

6.2 Review of appointment

The performance of the internal auditors and their lead partner is considered annually by the Committee.

6.3 Review of internal audit annual report

The annual report for the period 1 August 2010 to 31 July 2011 was received by the Audit Committee at its meeting of 17 November 2011 (Appendix A – not published with this report).

Subject to the limitations of the work described in Deloitte LLP’s report, the internal audit opinion given was ‘We provide reasonable assurance that the University has an adequate and effective system of internal controls for the year ended 31 July 2011. The control issues identified during our work do not materially impact upon the statement to be provided in respect of the adequacy and effectiveness for the University’s arrangements for corporate governance, risk management, internal control, and value for money.’

6.4 Review of audit risk assessment and strategy

Internal audit plans are planned annually by department and function on the basis of the weighted risks and ownership identified in the University’s key risk register.

6.5 Review of audit reports

The Committee considers all reports submitted by the internal auditor. Each internal audit report is assigned to a member of the Committee for detailed consideration. The member then presents the findings to the Committee, highlighting any key points and/or concerns.

This report refers only to those final reports that were received and considered by the Audit Committee for the financial year under consideration (these are detailed in Appendix 1 of the internal audit annual report (see Appendix A)). Other reports have been issued in draft and fieldwork has been carried out for other reviews, which will report to the Committee in the 2011–12 financial year.

Deloitte LLP provide an assessment of the adequacy and effectiveness of systems using the following definitions:

Full	There is a sound system of internal control designed to achieve the University’s objectives. The control processes tested are being consistently applied.
Substantial	While there is basically sound system of internal control, there are weaknesses, which put some of the University’s objectives at risk. There is evidence that the level of non-compliance with some of the control processes may put some of the University’s objectives at risk.
Limited	Weaknesses in the system of internal controls are such as to put the University’s objectives at risk. The level of non-compliance puts the University’s objectives at risk.
Nil	Control processes are generally weak leaving the processes/systems open to significant error of abuse. Significant non-compliance with basic control processes leaves the processes/systems open to error or abuse.

Deloitte LLP classify their recommendations as follows:

Priority 1	Issues that are fundamental to the University, for the attention of senior management and the audit committee.
Priority 2	Issues that are fundamental to the area subject to internal audit, for the attention of senior management and the audit committee.
Priority 3	Important issues to be addressed by management in their areas of responsibility.
Priority 4	Housekeeping issues or good practice suggestions.

6.6 Fees

Fees paid for work completed in FY2010–11 are shown in Appendix C.

7 External audit

7.1 Provider

PricewaterhouseCoopers LLP were re-appointed as external auditors for the University for the financial year 2010–11.

7.2 Review of appointment

In accordance with HEFCE’s Financial Memorandum an external auditor is appointed or re-appointed annually. The Statutes and Ordinances of the University of Cambridge also require that ‘the accounts of the University shall be audited annually by qualified accountants appointed by Grace on the nomination of the Council’ (Statues and Ordinances of the University of Cambridge, Statue F, Chapter II, Item 5).

A Grace submitted to the Regent House on 23 February 2011 recommending the re-appointment of PricewaterhouseCoopers LLP was approved on 4 March 2011.

7.3 Details of non-audit services

During 2010–11 the external auditor carried out work in the following areas for the University:

(a)Tax compliance services

(b)Advice on overseas business restructuring and investment

(c)External projects/events administered by departments

7.4 Review of the Management Letter

The external audit management letter 2010/11 submitted by PricewaterhouseCoopers LLP was received by the Audit Committee at its meeting on 17 November 2011.

The Audit Committee considered the report’s remarks on auditing and accounting matters, detailed control observations, and other observations from around the University group, and the management’s responses to the recommendations, which were considered satisfactory.

7.5 Fees

Fees paid for work completed in 2010–11 are shown in Appendix D.

8 Other work undertaken

8.1 Statement of internal control

The Council of the University of Cambridge has the responsibility for reviewing the effectiveness of the system of internal control. The Audit Committee plays a role in supporting the Council in this role through the following processes:

(a)The Council receives periodic reports from the Chairman of the Audit Committee concerning internal control and receives the minutes of all meetings of the Audit Committee.

(b)The Audit Committee receives regular reports from the internal auditor, which include the internal auditor’s independent opinion on the adequacy and effectiveness of the University’s system of internal control and risk management, together with recommendations for improvement.

(c)The Council’s review of the effectiveness of the system of internal control is informed by the work of the internal auditor. They operate to the standards defined in Accountability and Audit: HEFCE Code of Practice.

Through the consideration of reports from the internal auditor and other investigations the Audit Committee is assured that the University’s system of internal control is currently effective and is able to report its reassurance to the Council for the year 2010–11.

8.2 Review of assurances received

Deloitte LLP has confirmed its reasonable assurance that the University has an adequate and effective system of internal controls for the year ending 31 July 2011. The control issues identified during their work do not materially impact upon the opinion to be provided in respect of the University’s arrangements for corporate governance, risk management, internal control, and value for money.

8.3 Review of institution’s Risk Management Strategy

(a)The University’s approach to risk management

The University of Cambridge follows good practice in Risk Management as given in the Turnbull Committee guidance, and endeavors to fully comply with HEFCE requirements.

The University’s view of acceptable risk is based on a balanced view of all the risks in its operating environment. It aims to ensure an appropriate balance between risk aversion and opportunity and gains.

Risks are prioritized drawing on qualitative and quantitative measures.

The strategy to achieve this is:

(i)A Risk Steering Committee (RSC) oversees the risk management process as a whole, on behalf of Council.

(ii)A Risk Policy was approved in 2002 and is reviewed and revised annually.

(iii)The fundamental risks affecting the University were identified and quantified in 2002 and are reviewed annually ensuring that the full scope of the University’s activities is covered.

(iv)The extent and categories of the risks that the University regards as acceptable have been reviewed.

(v)Arrangements to manage fundamental risks have been put in place and the effectiveness of those arrangements has been examined. Where risk management is judged weak or limited in effect, controls have been and will be enhanced.

(vi)Responsibility for the management of risks has been allocated to senior University officers.

(vii)The review of risks and their management has been and will continue to be carried out at least annually.

(b)Risk Management Policy – the role of the Audit Committee and its auditors

The Audit Committee reports to the Council on internal controls and alerts it to any emerging issues. In addition, the Audit Committee oversees internal audit, external audit, and management as required in its review of internal controls. The Audit Committee provides advice to the Council on the effectiveness of the Risk Steering Committee and on the internal control system, including the University’s system for the management of risk.

(i)Internal Audit Programme

The internal audit process is responsible for aspects of the annual review of the effectiveness of the internal control system within the University. The internal audit strategy will be developed around the University’s objectives and use the assessment of the fundamental risks. The work programme includes an assessment of the effectiveness of the risk management process.

(ii)External Audit

The external audit informs the Audit Committee on the operation of the internal financial controls reviewed as part of the annual audit.

(c)The Audit Committee’s Role – 2010–11

(i)Risk Steering Committee

At its second meeting of the year (November) the Audit Committee received copies of the annual report of the Risk Steering Committee and an up-to-date version of the University’s key risk register.

The Chair of the Risk Steering Committee is the Senior Pro-Vice-Chancellor who is in attendance at Audit Committee meetings.

Furthermore, the Chair of the Audit Committee is now one of three University Council representatives on the Risk Management Committee. This has served to strengthen the link between audit and risk management.

(ii)Risk Register

At its meeting on 12 May 2011 the Audit Committee received the minutes of the Risk Steering Committee and a summary copy of the interim revised key risk register.

Members of the Audit Committee are invited to bring their copies of the key risk register to all meetings, to help inform discussions of audit reports and the impact on risk management.

(iii)Internal Audit

The internal auditor now considers risk management arrangements as a standard and continuing aspect of all departmental audits.

8.4 Other work

The Audit Committee has a number of standing agenda items: Value for Money, Fraud, Risk Management, and HEFCE. For each of these items it asks for updates from senior University officers and also seeks assurance from the internal auditors.

(a) Value For Money (VFM)

Following recommendations made by the Senior Pro-Vice-Chancellor (Planning and Resources) and supported by the Audit Committee, the University’s Value for Money Committee was dissolved in June 2010. The University’s Resource Management Committee (RMC) now oversees VFM reporting for the University. The Senior Pro-Vice-Chancellor attends Audit Committee meetings and provides statements on behalf of the RMC.

The internal auditors consider VFM as a standard item in institution or system audits as well as conducting specific VFM audits as part of the annual plan.

(b) Fraud

No cases of fraud were brought to the Committee’s attention during the financial year under review.

(c) HEFCE

(i)Model Financial Memorandum between HEFCE and Institutions

The Committee received a copy of the Memorandum and welcomed the changes that had been made following consultation on the draft document earlier in 2010.

(ii)Audit of Higher Education Students Early Statistics Survey 2009–10 (HESES10)

The Committee received a copy of a letter from HEFCE confirming that this audit was now closed following a review of the University’s response to recommendations.

(iii)HEFCE’s Assessment of institutional risk

The Committee received a copy of the letter from HEFCE stating its opinion that the University is ‘not at higher risk’. This was the first year of new accountability requirements under the Charities Act 2006.

(iv)Annual accountability exchange

Following the Quinquennial Review of 30 June 2008, HEFCE had been convinced, to a considerable degree, that the University of Cambridge was an institution without significant risk. However, due to the differences of the University’s governance systems compared with the usual HEFCE approved model, the Council had requested an annual assurance visit for a period of three years. The second visit took place in March 2011.

It has been agreed that the programme of visits will end as planned in 2012, at which point the University will participate in assurance arrangements which apply to all Higher Education Institutions. (See Appendix E.)

(v)Assurance on Colleges’ use of HEFCE funds

In order to discuss the proper use and value for money aspects relating to the Colleges’ use of HEFCE funds, there is an annual meeting between the Chairman of the Audit Committee, the Chairman of the Colleges’ Committee, the Registrary, and the Chairman of the Bursars’ Committee. An agreed note of the meeting is submitted to the Audit Committee. The annual report of the Resources Sub-Committee of the Bursars’ Committee on Value for Money will also be submitted to the Audit Committee.

The first such report and submission was made to the Audit Committee at its meeting in March 2011. The Committee affirmed that it was content that the notes of the meeting provided it with sufficient assurance on the transfer of the monies when considered alongside the established practice of the receipt of audit certificates from each College. It was also noted that there was an agreed protocol for investigation in the event that any such certificate did not provide assurance that the monies transferred had been used entirely for educational purposes. (See Appendices F(i) and F(ii)).

(d)Non-standard items

In addition to these standing agenda items, the Audit Committee has considered the following items as part of its business during the 2010–11 financial year:

(i)Review of subsidiary company governance

At the request of the Audit Committee, important work to review the assurance arrangements for the University’s nine wholly-owned subsidiary companies was undertaken by a review sub-committee. The review found that governance was generally sound, with examples of best practice, but that a watching brief was needed and some strengthening of the relationship between the University and some of its subsidiaries. Recommendations were submitted to the Audit Committee, Finance Committee, and the Council and will be followed up by the review committee after six months with a report back to the Audit Committee.

(ii)Review of provisions against bribery and corruption

The Committee commissioned a review to assess the robustness of the University’s policies against bribery and corruption in response to the new Bribery Act, July 2011.

(e) Workshops

Audit Committee workshops are opportunities to discuss strategic issues in more depth, often based around an expert presentation. These workshops operate in part as professional development opportunities for the Committee’s members. During the financial year 2010–11 three workshops were held and the following issues discussed.

(i)Data Integrity: a senior officer in the University’s Planning Office gave a presentation.

(ii)Accounting treatment of income from Cambridge University Endowment Fund: the University’s Director of Finance gave a presentation.

(iii)Sponsor assurance: Simon Jeffreys, COO, Wellcome Trust gave a presentation.

9 Opinion

9.1 Risk Management, Control, and Governance

The Audit Committee has monitored the effectiveness of the University’s risk management, control, and governance arrangements and financial controls throughout the period and has noted that there have been continuous improvements across the University’s activities: the University, individual institutions, and subsidiary companies are making transparent and sustained efforts to understand and incorporate best practice in risk management, governance, and internal controls. The Committee places value on the importance of clear and assessable arrangements for the Governance of the University. These must be appropriate, dynamic, and beneficial to a responsible, self-governing higher education, research, and collegiate institution. The Committee is satisfied that progress in this regard is consistent and incremental.

9.2 Economy, Efficiency, and Effectiveness

The Committee has monitored the effectiveness of the University’s financial controls throughout the period. It is satisfied that there is good evidence of the continuing adoption and improvement of arrangements throughout the University for promoting economy, efficiency, and effectiveness.

9.3 Data Integrity

The Audit Committee has monitored the effectiveness of the University’s management and quality assurance of data submitted to HESA, to HEFCE and other finding bodies. Internal audit reviews of various aspects of data management have been conducted in the year, for which substantial assurance was given. The Committee is satisfied that the management control and quality assurance of data submitted are effective.

APPENDIX B

AUDIT COMMITTEE

Amended by Grace 1 of 15 December 2010

1. There shall be a standing committee of the Council, called the Audit Committee, which shall consist of:

(a)a member of the Council in class (e) appointed by the Council to serve as Chairman of the Committee,

(b)two members of the Council appointed by the Council from among its members who are members of the Regent House, provided that neither the Vice-Chancellor, a Pro-Vice-Chancellor, nor the Chairman of a Council of a School shall be eligible to serve

(c)four persons, not being members of the Regent House or employees of the University, appointed by the Council with regard to their professional expertise and experience in comparable roles in corporate life, including at least two members with experience of finance, accounting, or auditing,

(d)not more than three persons co-opted by the Committee, of whom

(i)the first person co-opted shall be a member of the Regent House, such person not being a member of the Council,

(ii)not more than two co-opted persons shall be members of the Regent House, such persons not being members of the Council,

(iii)not more than two co-opted persons shall be external members, one but not more than one of whom may be a member of the Council in class (e),

provided that it shall not be obligatory for the Committee to co-opt any person or persons.

For the purpose of these regulations, external members are defined as the following members of the Audit Committee:

(i)persons who are members of the Council in class (e);

(ii)persons who are not employees of the University or any of its companies or of a College, and who do not hold College Fellowships which qualify them for membership of the Regent House.

2. Members in classes (a), (b), and (c) shall be appointed in the Michaelmas Term to serve for three years from 1 January next following their appointment. No member in class (a), (b), and (c) may serve for more than eight consecutive years. Co-opted members shall serve until 31 December of the year in which they are co-opted or of the following year, as the Committee shall decide at the time of their co-optation.

3. No person may be a member of the Audit Committee who is a member of the Finance Committee of the Council. If a member of the Audit Committee becomes a member of the Finance Committee, his or her place shall thereupon become vacant.

4. The Audit Committee shall meet at least twice in each financial year. It shall be the duty of the Committee: