§ Dr. TongeTo ask the Secretary of State for Education and Skills what arrangements she has made for the audit of management practice in universities. [4565]
§ Margaret HodgeThe Financial Memorandum between the Higher Education Funding Council for England (HEFCE) and each institution it funds requires institutions to have sound systems of internal control and to demonstrate they are securing good value for money. The HEFCE Audit Code of Practice states that these systems should be audited by the institution's internal and external auditors, and that the institution's audit committee should report annually on their effectiveness. In addition, the HEFCE Audit Service reviews high-level 251W management arrangements as well as the effectiveness of institutions' governance and audit arrangements by means of a programme of audit visits. In line with corporate governance changes nationally, institutions will in future be required to include a statement of internal control, including risk management, in their published and audited financial statements every year.