Audit Committee report continued
Financial reporting The Group maintains robust internal control and risk management systems designed to ensure the integrity and reliability of its financial reporting. These systems encompass clearly defined roles and responsibilities, segregation of duties, and regular oversight by senior management and the Audit Committee. Key controls include automated and manual checks embedded within financial systems, reconciliations, and formal review processes for financial statements and disclosures. The Group’s risk management framework identifies, assesses, and monitors financial reporting risks, with mitigation strategies implemented accordingly. Internal audit performs independent evaluations of control effectiveness, and findings are reported to the Audit Committee. These measures collectively support the accuracy, completeness, and timeliness of reported financial information. The Committee reviewed the areas of judgement set out below in relation to the Group’s Annual Report and Accounts for the year ended 30 June 2025. Discussions were held with management throughout the year and the Committee is comfortable the Consolidated financial statements included within the Annual Report and Accounts address the judgements and estimates applied, as well as the disclosures agreed. These significant judgment areas were also reviewed with the External Auditors with the Committee’s conclusions being in line with those of the Auditors.
Focus for FY26 As well as considering the routine items of business, the Committee will also focus on the following matters during the next financial year: • Monitor the Group’s transition to Workday, the core finance and HR system due to go live in FY26 as well as implementation and effectiveness of enhanced financial internal controls enabled by the new system; • Oversee the implementation of the enhanced reporting requirements around internal control effectiveness under the UK Corporate Governance Code which will apply for the financial year beginning 1 July 2025. Approval This report, in its entirety, has been approved by the Committee and the Board of Directors on its behalf by:
Goodwill (see note 17)
The Committee reviewed the output of the value-in-use calculations presented by management supporting the value of goodwill held on the Group’s balance sheet in respect of previously acquired businesses. The Committee is satisfied that the goodwill value is adequately supported by the respective value-in use calculations. The Committee reviewed the assumptions made in the valuation of client relationships acquired as part of the acquisitions in the year. The Committee is satisfied that assumptions applied in the valuation are adequately supported. The Committee reviewed the valuation of deferred contingent consideration payable for the acquired financial planning businesses. The Committee is satisfied that assumptions applied in the valuation are adequately supported. In determining the useful economic life of the Group’s client relationship intangible assets, the Committee reviewed relevant analysis presented by management. The Committee was in agreement and satisfied that the client relationship intangible assets are adequately supported by the respective impairment tests and reviews.
James Rawlingson Audit Committee Chair 3 September 2025
Valuation of acquired intangible assets (see note 14)
Deferred contingent consideration (see note 26)
Amortisation of client relationships (see note 17)
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Brooks Macdonald Group plc Annual Report and Accounts 2025
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