Annual Report and Accounts - Hemscott IR

TRAVIS PERKINS ANNUAL REPORT AND ACCOUNTS 2012
Value of work
Non-audit services require approval as follows:
• Up to £5,000 – no formal approval is required provided the work is
permitted under the list referred to on the previous page;
• £5,000 to £25,000 – Finance Director;
• £25,000 to £50,000 – Finance Director and Committee Chairman;
• £50,000 and above – Finance Director and Committee Chairman
following a competitive tender.
Formal approval by the Committee is also required if the aggregated
level of forecast fees for non-audit services exceeds 50% of the
statutory audit fee.
Reporting
The Finance Director reports twice yearly to the Committee on fees
for non-audit services payable to the auditors.
As shown in note 5 to the accounts, during the year the Auditors were
paid £431k (2011; £401k) for audit-related work, and £129k (2011:
£299k) for non-audit work.
The principal items of non-audit fees related to reviewing the
Group’s interim announcement to shareholders and sundry tax
advice. In view of Deloitte’s detailed understanding of the Group’s
operations and accounting policies, and being mindful of future
Auditor reporting obligations, the Audit Committee decided that it
was appropriate for Deloitte to undertake this work. In addition, £347k
(2011: £119k) of fees was paid to other accounting firms for non-audit
work, including advice to the Remuneration Committee.
The Committee understands that the total fees paid by the Group
to Deloitte in 2012 amount to less than, 0.03% of Deloitte’s UK fee
income and considers that the Auditors independence has not been
impaired by the non-audit fees paid in 2012.
Internal audit
As well as its reviews of the internal audit department’s strategy
and processes, as described above, during its meetings in 2012, the
Committee received presentations from the Director of Business
Risk and Assurance, about the results of work undertaken by the
department, and approved its risk-based plans for work in 2013. The
Committee was satisfied with the overall effectiveness of the internal
audit function.
Overview
As a result of our work during the year, and taking into account the
result of the Board and Committee evaluation process described on
page 59, the Committee considers that it has acted in accordance
with its terms of reference and has ensured the independence,
objectivity and effectiveness of the external and internal auditors.
The Committee has also concluded that the Group’s internal control
and risk management systems were effective during the year.
I will be available at the Annual General Meeting to answer any
questions about the work of the Committee.
Chris Bunker
Chairman, Audit Committee
GOVERNANCE
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