Common use of Additional Audit Clause in Contracts

Additional Audit. Where the Trustee has reason for concern that Fund resources provided for any Fund Project may not have been used in accordance with the Instrument and/or the decisions taken by the Fund Council, as applicable, the Trustee will ask the Partner Agency to provide it with information concerning the use of the Fund resources in respect of the Fund Project concerned. If after reviewing any such information provided by the Partner Agency, the Trustee continues to have a concern as to the manner in which the Fund resources provided to the Partner Agency for such Fund Project have been used, the Trustee may request the Partner Agency to cause accounts and reports of such individual Fund Project to be audited by the Partner Agency’s external auditors on terms agreed with the Trustee. The Trustee would require such additional audits only in these exceptional circumstances, and will communicate fully its reasons for such request to the Partner Agency. The costs of such audits will be borne by the Partner Agency; however, should the additional audit by the Partner Agency’s external auditors disclose that the resources were used in accordance with the Instrument and/or the decisions taken by the Fund Council, as applicable, the cost of such audits shall be borne by the Fund.