The responsibilities of the Audit and Risk Committee are as follows:

• Review AIIB’s financial statements and accounting, auditing and financial reporting practices, procedures and issues.
• Review the selection procedures for and the qualification and performance of the external auditors; review the reports from the external auditors and ensure appropriate action be taken in respect of major improvement areas identified.
• Review the scope of work and internal audit plan and the effectiveness of the internal audit function.
• Review the effectiveness of internal control system.
• Review AIIB’s financial and risk-related policies; annually review the Bank’s risk management framework and its risk appetite statement.
• Receive reports on violations of the Prohibited Practices Policy (PPP) from the Managing Director of the Complaints-resolution, Evaluation and Integrity Unit (CEIU).

The responsibilities of the Budget and Human Resources Committee are as follows:

• Review the proposed annual administrative budget, taking into account the annual business plan, review the quarterly budget execution update, and report thereon to the Board.
• Review and assess the implementation of the staffing strategies, the compensation and benefits policies and related issues periodically and make recommendations to the Board as appropriate.
• Review the human resources update report semi-annually.
• Undertake the functions of the Committee provided for under the Code of Conduct for Board Officials.
• Receive the summary of the Administrative Review Decision generated as part of Staff Rule 8.01.
• Consider any other aspects of the annual administrative budget and the Bank’s human resources as the Board may request and report thereon to the Board.
• Receive briefings on significant actions proposed by the President under the terms of the Policy on Compensation and Benefits, prior to their implementation.

The responsibilities for the Policy and Strategy Committee are as follows:

• Review AIIB’s operational policies (other than financial and risk-related policies), including but not limited to the environment, social and procurement policies, and report thereon to the Board.
• Advise on the development of AIIB’s strategies and report thereon to the Board.
• Review the proposed annual business plan, taking into account the annual administrative budget, and report thereon to the Board.
• Undertake any other activities consistent with these Terms of Reference as the Board may request and report thereon to the Board.
• Receive updates on the findings of project evaluations, and requests filed by Project-affected People under the Project-affected People’s Mechanism, as part of the Oversight Mechanism.