Audit Committee report
Delivering a robust control environment
NCC continues to maintain a strong focus on control, risk management and governance.
Chris Batterham Committee Chair
The Audit Committee’s key objectives The purpose of the Audit Committee is to assist the Board in the discharge of its fiduciary duties of stewardship of the Group’s assets. The Committee particularly focuses on systems and processes of management control, and the reporting of internal management information and externally reported financial information. The Committee also provides a forum for reporting by the external auditor.
2021/22 key activities • Monitoring integration of IPM business including associated risks and costs of integration • Ensuring adequate controls exist as the Iron Mountain’s IPM business is consolidated into the Group’s results and that the existing Group controls have been implemented within the newly acquired business • Ensuring the Iron Mountain’s IPM business fair value accounting including the assessment of deferred revenue is appropriately accounted for and disclosed • Review of SGT progress and time/cost overruns and ensuring any lessons learned are adequately captured • Focus on future accounting technical announcements • Reviewing proposed Task Force on Climate-Related Financial Disclosures (TCFD) • Review of key assumptions used in Group annual impairment review • Continued focus on quality of earnings and adherence to Individually Significant Items accounting policy 2022/23 priorities • Ensuring continued improvement of the effectiveness of the Group’s risk management and internal control systems in preparation for potential UK SOX requirements • Planning for regulatory changes arising from the BEIS whitepaper, “Restoring trust in audit and corporate governance”, including ensuring that we review and consider all UK governance changes following the establishment of Audit Reporting and Governance Authority (ARGA) • Undertaking a thorough and comprehensive auditor tender process, leading to the reappointment of KPMG, or the onboarding of a new auditor • Monitoring ESG reporting, including progress on TCFD, and embedding sustainability into the business
The Audit Committee’s responsibilities The Committee’s main responsibilities include:
• Monitoring the integrity of the Financial Statements relating to the Group’s financial performance and their compliance with the provisions of IFRS, the UK Corporate Governance Code, the Disclosure Guidance and Transparency Rules and other regulations • Reviewing material information and significant accounting judgements contained in the Annual Report and Accounts • Advising the Board on the continuing appropriateness of the Group’s existing accounting policies and the application of any new or modified accounting and reporting standards • Advising the Board on the effectiveness of the processes ensuring that the Annual Report and Accounts, when taken as a whole, is fair, balanced and understandable • Reviewing the audit findings with the external auditor including discussing any major issues that arise during an audit, the accounting and audit judgements made, the level of any errors identified during the audit and the effectiveness of the audit process itself • Reviewing the effectiveness of the Group’s internal control systems • Reviewing the nature and extent of significant financial risks and how they can be mitigated • Making recommendations to the Board in relation to the appointment of the external auditor, approving its remuneration and terms of engagement
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