Part VI Reorganisation of Endowments

111 Accounts and audit of educational endowments.

1

It shall be the duty of the governing body of every educational endowment administered under a scheme made by the Court of Session which provides for the audit of the accounts of that endowment F1, or administered under a provisional order made under the Act of 1878, or under a scheme made under the Act of 1882, the Acts of 1928 to 1935, Part VI of the Act of 1946, Part VI of the Act of 1962 or under this Part of this Act, other than any such endowment to which section 106(1) of the M1Local Government (Scotland) Act 1973, applies, to comply with the following provisions of this section.

2

The governing body of every endowment to which this section applies shall keep proper accounts and other records in relation to the functioning of that body, and shall prepare in respect of each financial year a statement of account F1

3

The accounts of every endowment to which this section applies shall be audited each year by an auditor appointed by the governing body F1; and no person shall be qualified to be appointed auditor as aforesaid unless he is a member of one or more of the following bodies:—

a

the Institute of Chartered Accountants of Scotland;

b

the Institute of Chartered Accountants in England and Wales;

c

the Association of Certified Accountants;

d

the Institute of Chartered Accountants in Ireland;

e

any other body of accountants established in the United Kingdom and for the time being recognised for the purposes of F2section 389(1)(a) of the Companies Act 1985 by the Secretary of State;

but a Scottish firm may be so appointed if each of the partners therein is qualified to be so appointed.

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

6

F4The governing body of each endowment to which this section applies shall make the audited accounts of that endowment available for public inspection at all reasonable times.

7

Any provision in a governing instrument referred to in subsection (1) above prescribing the financial year of an endowment shall remain in operation notwithstanding the repeal by the Act of 1962 of section 11(2) of the M2Education (Scotland) Act 1956.