National Institutions Measure 1998

4 In section 6—

(a) for subsection (1) there shall be substituted—

“(1) There shall be two committees, one to be known as the Assets Committee and the other as the Audit Committee, which shall be constituted as follows—

(a) the Assets Committee shall comprise the First Church Estates Commissioner, two Commissioners being clerks in Holy Orders (at least one being a Commissioner elected by the House of Clergy of the General Synod) appointed for three years by the Board and not less than four nor more than six lay Commissioners appointed for three years by the Archbishop of Canterbury (at least one being a Commissioner elected by the House of Laity of the General Synod) being persons who in his opinion are well qualified to assist in the management of the assets of the Commissioners;

(b) the First Church Estates Commissioner shall be the chairman of the Assets Committee and a deputy chairman shall be elected annually by that committee and shall act as chairman at any meeting at which the chairman is not present;

(c) if a member of the Assets Committee appointed by the Board ceases to have the qualifications by virtue of which he was qualified for his appointment, he shall vacate his appointment;

(d) the Audit Committee shall comprise not less than four nor more than six persons appointed by the Board for three years, of whom at least one shall be an elected Commissioner and at least two shall be persons who are not Commissioners;

(e) the Board, with the agreement of the Archbishop of Canterbury, shall appoint a member of the Audit Committee to be the chairman of that committee;

(f) the Church Estates Commissioners, the chairman of the Board and the acting chairman of the Board (elected under section 5(2) above to act as chairman, when required during the following period of twelve months) shall not be eligible to be members of the Audit Committee.”;

(b) subsection (2) shall be omitted;

(c) after subsection (3A) there shall be inserted—

“(3B) The Audit Committee shall have the following functions—

(a) a duty to review the Commissioners' accounting policies and practices, their annual accounts and any reports made and advice given to the Commissioners by the auditor appointed under section 11(2) below;

(b) a duty to keep under review the effectiveness of the Commissioners' internal control system;

(c) a duty to consider any representations made to them;

(d) a duty to advise on the appointment of an auditor under section 11(2) below and to discuss with the auditor the conduct of the audit;

(e) a duty to report to those Commissioners who are not members of the Board on any matter relating to the functions and business of the Commissioners which causes the committee grave concern and about which the Board has been unable to satisfy the committee.

(3C) The Commissioners' officers shall supply the Audit Committee with such information in their possession as the Committee may require to enable the Committee to exercise their functions.”;

(d) in subsection (4) the words “of the General Purposes Committee or” shall be omitted.