THE UNITE GROUP PLC Annual Report and Accounts 2024 103 have been taken into consideration when preparing this Annual Report. The Committee notes the FRC’s review does not provide assurance that the Annual Report is correct in all material respects as the FRC’s role is not to verify the information provided, but to consider compliance with reporting requirements. SIGNIFICANT ISSUES CONSIDERED After discussion with both management and the external auditor, the Committee determined that the key risk of misstatement of the Group’s 2024 financial statements related to property valuations. PROPERTY VALUATIONS The Group’s principal assets are investment properties and investment properties under development that are either owned on balance sheet or in USAF or LSAV. The investment properties are carried at fair value based on an appraisal by the Group’s external valuers, who carry out the valuations in accordance with the RICS Red Book valuation guide, taking into account transactional evidence during the year. The valuation of property assets involves significant judgement and changes in the core assumptions could have a significant impact on the carrying value of these assets. Management discusses the underlying performance of each asset with the external valuers and provides detailed performance data including rents, university lease agreements, occupancy, property costs and costs to complete (for development properties). Management receives detailed reports from the valuers and performs a detailed review of the valuations to ensure that management considers the valuations to be appropriate. The valuation report is reviewed by the Chief Financial Officer prior to sign-off. The Committee considered the extent property valuations reflected anticipated future spend on properties, including to remediate cladding. Updates to the UK Corporate Governance Code, in particular the recent changes to provision 29, were monitored, including consideration of the impact beyond January 2026. While the provision applies to financial years beginning on or after 1 January 2026, the Audit & Risk Committee has considered the impact of this. The Audit & Risk Committee has considered the frameworks that form our material controls and how we are assured they are operating effectively. The Audit & Risk Committee will continue to review the potential impact on the Group with management to ensure that suitable reporting is delivered. FINANCIAL REPORTING The primary focus of the Committee, to financial reporting for the year ended 31 December 2024, was to review with both management and the external auditor the appropriateness of the half-year and annual financial statements, concentrating on: • The quality and acceptability of accounting policies and practices • The clarity of the disclosures and compliance with financial reporting standards and relevant financial and governance reporting requirements • Material areas in which significant judgements have been applied or where there has been discussion with the external auditor • Whether the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group’s position and performance, business model and strategy. The Committee’s assessment of the Annual Report to ensure that it is fair, balanced and understandable and took into account the following considerations: • The high level of input from the Chief Executive Officer and Chief Financial Officer with early opportunities for the Board to review and comment on the Annual Report • Ensuring consistency in the reporting of the Group’s performance and management information (as described on pages 16-17), risk reviews (as described on pages 52-71), business model and strategy (as described on pages 10-13 and 4-5) • A cross-check between Board Minutes and the Annual Report is undertaken to ensure that reporting is balanced • Whether information is presented in a clear and concise way, illustrated by appropriate KPIs to facilitate shareholders’ access to relevant information. To aid our review, the Committee considers reports from the Group Finance Team and reports from the external auditor on the outcomes of their half-year review and annual audit. We support Deloitte in displaying the professional scepticism its role requires. INTERACTIONS WITH THE FINANCIAL REPORTING COUNCIL (FRC) In December, the FRC’s Corporate Reporting Review (CRR) team notified us that the Group’s FY2023 Annual Report and Accounts had been selected for review and confirmed there were no queries to raise following this review. There were some matters which the FRC believed could be improved for the benefit of users, and these “ During 2024, the Committee continued to focus on the quality and integrity of the financial statements alongside its oversight of risk and internal controls.” ROSS PATERSON CHAIR OF THE AUDIT & RISK COMMITTEE