Governance

The Board closely oversees and supports the Group’s strategy. That’s why we’re confident in driving long-term, sustainable value for all our stakeholders. We also understand how vital it is to keep engaging with our stakeholders to make sure our priorities mirror those of our wider community.

The Group aims to comply with all the main principles of the UK Corporate Governance Code, which is available at www.frc.org.uk. Find a summary of our compliance with the UK Corporate Governance Code in the annual report and accounts.

The Group has a policy to ensure the provision of non-audit services doesn’t impair the external Auditor’s independence or objectivity. In determining the policy, the Audit Committee has accounted for possible threats to the external Auditor’s independence and objectivity.

Our policy on non-audit services

• When considering using the external Auditor for non-audit work, the Chief Financial Officer should consider the provisions of the FRC Guidance on Audit Committees regarding the preservation of independence and objectivity.
• The external Auditor must certify that they are acting independently.
• In providing a non-audit service, the external Auditor should not:
  • audit their own work
  • make management decisions for the Group
  • create a mutuality of interest
  • find themselves in the role of advocate for the Group
• Before commissioning non-audit services, the Audit Committee or the Chief Financial Officer, as appropriate, must make sure this is a permitted service and that the external Auditor is satisfied there are no issues regarding independence and objectivity.
• The Audit Committee has pre-approved the Chief Financial Officer’s authority to commission the external Auditor to undertake non-audit work where there’s a specific project with a cost not expected to exceed £50,000. This work has to be reported to the Audit Committee at its next meeting. If the cost is expected to exceed £50,000, the agreement of the Audit Committee is required before the work is commissioned. In either case, other potential providers must be adequately considered.
• The total non-audit fees for any financial year should not exceed 70% of the average of the external audit fee over the last three years. In practice the non-audit fees are normally significantly below this level.
• The Chief Financial Officer monitors all work done by the external Auditor.