Strategic Report
Governance
Financial
Audit Committee
Chairman’s introduction As Chairman of the Audit Committee I am pleased to present this report on the role and activities of the Audit Committee for the financial year ended 31 March 2014. The primary role of the Committee is to oversee and assist the Board in its responsibility to discharge a set of fair, balanced and understandable group Annual Report and Accounts. Such accounts should provide the information necessary for shareholders to assess the Company’s performance, business model and strategy throughout the year. Over the past year, the Committee has ensured that the group has in place effective financial governance in respect of the group’s financial results, the performance of both the Internal Audit function and the Independent Auditor, and the management of the group’s systems of internal control, business risks and related compliance activities. Who is on the Audit Committee? The Audit Committee comprises independent Non-Executive Directors who are all considered appropriately experienced to fulfil their duties. The Chairman of the Committee is David Jenkins, who continues to be deemed by the Board, as at the date of this report, to have significant, recent and relevant financial experience through his qualifications and ongoing positions. Chairman
David Jenkins
Committee members
Crawford Gillies Larry Hirst Terry Morgan (until 31 October 2013) Graeme Potts (until 9 July 2013) Jack Boyer (from 1 June 2013)
What is the key purpose of the Audit Committee? The Audit Committee provides effective governance over the appropriateness of the group’s financial reporting, and the performance of both the Internal and External Audit functions. The Committee also oversees the management of the group’s systems of internal control, business risks and related compliance activities. The Audit Committee meets independently with the Independent Auditor and the Head of Internal Audit without the Executive Directors. The Chairman of the Committee will be available at the AGM to answer any questions about the work of the Committee. What are the key responsibilities of the Audit Committee? During the year, the Audit Committee considered and reviewed general matters relevant to discharging its responsibilities, including: − monitoring the group’s corporate reporting process and the statutory audit of the Annual Report and Accounts; − reviewing the Half-Yearly Financial Report and Annual Report and Accounts and recommending for Board approval; − reviewing accounting policies and key areas of accounting judgement; − reviewing the Independent Auditor’s audit plan, nature and scope of work and overall summary of key issues and judgements; − reviewing the quality of the group’s Independent Auditor services and the re-appointment of the Independent Auditor; − assessing the effectiveness of the Independent Auditor including the appropriateness and skills of its audit team; − reviewing and monitoring compliance with the Non-Audit Services Policy and maintenance of auditor independence; − reviewing the group’s consolidated risk register prior to its approval by the Board; − approving the group’s assurance framework and the internal audit plan; − reviewing key internal audit reports and findings;
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