Shaftesbury AR 2017 LR

GOVERNANCE Shaftesbury Annual Report 2017
Audit
committee
report
FINANCIAL AND
BUSINESS
REPORTING
RISK
MANAGEMENT
AND INTERNAL
CONTROL
ACCOUNTABILITY
AUDIT COMMITTEE
AND AUDITORS
KEY RESPONSIBILITIES
• Review in detail the work
of the external auditor and
valuer and any significant
financial judgement made
by management.
Dear shareholder
I am pleased to present the Committee’s report
for the year.
• Monitor the Group’s
reporting process and
financial management.
• Scrutinise the full and half
yearly financial statements.
• Consider the appointment
of the external auditor, their
reports to the Committee
and their independence.
• Review the risk
management framework
and ensure that risks are
carefully identified and
assessed, and that systems
of risk management and
internal control are in place
and effective.
• Review the Group’s
arrangements by which
employees and our supply
chain may raise concerns
about possible improprieties
in financial reporting or
other matters.
The Committee is an important element of the
Group’s governance structure and provides effective
oversight of the performance, independence and
objectivity of the auditor and the audit process.
Our role is to review and advise the Board on
financial reporting including the processes around
the portfolio valuation, which is the most significant
figure in the annual results. This, and other judgements
made by the Board in the preparation of the financial
statements, are discussed in detail below.
The Committee advises the Board on various
statements made in the Annual Report, including those
on viability, going concern, risk and controls and
whether, when read as a whole, the Annual Report is
fair, balanced and understandable and provides the
information necessary for shareholders to assess the
Group’s performance, business model and strategy.
The Committee also oversees the Group’s risk
management framework and processes.
Going concern
The Committee reviewed whether it was appropriate
to adopt the going concern basis in the preparation
of the results. In considering this, we reviewed the
Group’s five-year forecasts, availability of committed
bank facilities and expected headroom under the
financial covenants in our debt arrangements. This
review included sensitivity analyses. Following the
review, it recommended to the Board that it was
appropriate to adopt the going concern basis. The
Board’s confirmation is set out on page 102.
Viability statement
At the request of the Board, the Committee reviewed
the Viability Statement and the period for which the
Board should assess the prospects of the Group.
Last year, the Group considered a five-year period
to be appropriate. Following the review, the
Committee concluded that this period remains
appropriate. The Committee reviewed a report from
management which set out the basis for the conclusions
in the Viability Statement, including scenario analyses.
The Board’s Viability Statement is set out on page 64.
KEY ACTIVITIES
82
• Annual report
• Recommend
re-appointment of auditors
• Committee report
NOVEMBER 2016
• Approved auditor fees
• Objectivity of auditors
• Viability statement
• Going concern
• Risks and internal control