Strategic Report
Financial Statements
Governance
103
INTERNAL AUDIT Group Internal Audit is an internal function that provides independent and objective assurance to the Committee that the Group’s risk management, governance and internal control processes are operating effectively. The purpose, scope and authority of Internal Audit is defined in its Charter, which is reviewed and approved each year by the Committee and published on the Group’s website. INTERNAL AUDIT PLAN The Committee annually reviews and approves the Internal Audit Plan, which employs a risk-based approach aligned with the Group’s risk profile, control environment, and assurance arrangements. The Plan incorporates input from senior management and takes into account previous external and internal audit findings. The Internal Audit Plan is kept under review and any proposed changes are discussed with and, if thought appropriate, approved by the Committee. The Committee was satisfied with the progress made of the Internal Audit Plan in 2024/2025. Quarterly reports from the Director of Group Internal Audit include updates on audit activities, progress of the Internal Audit Plan, the results of all audits, with a particular focus on those requiring significant improvement, and plans to address the recommended remediations. The Committee regularly monitors and reviews the scope, extent and effectiveness of the activity of Group Internal Audit. The Committee regularly receives reports from Group Internal Audit concerning the resource requirements of its function and monitors steps and contingency plans to ensure it is adequately resourced and equipped with the necessary skills and experience to perform its role effectively. External providers may be engaged to support delivery of the Internal Audit Plan where specific skills and expertise are required. During the year, the Committee approved the appointment of the Director of Group Internal Audit, who joined the Group in September 2024, and oversaw the transition of responsibilities from the interim Head of Internal Audit. During the year, the Committee held private discussions with the interim Head of Internal Audit and latterly the new Director of Group Internal Audit. Additionally, the Committee Chair frequently meets with the Director of Group Internal Audit outside the formal Committee meetings. The Chair is responsible for setting and appraising their objectives and performance, with input from the Group Chief Executive Officer.
INTERNAL AUDIT EFFECTIVENESS The Committee determined that the Group Internal Audit function continues to be effective, delivering an appropriate level of assurance through its programme of work. The Group Internal Audit function continues to comply with the International Professional Practices Framework (“IPPF”) that provides authoritative guidance promulgated by the Institute of Internal Auditors (“IIA”). The standards require that an External Quality Assessment (“EQA”) of the Group Internal Audit function is carried out every three to five years. The Committee oversaw the appointment of an independent firm who performed an EQA in May 2023 which assessed the function against the IIA standards with an overall rating of Partially Conforms. The Committee oversaw progress made by the Group Internal Audit on addressing observations raised, leading to completion of all major items during the year. WHISTLEBLOWING The Group has a whistleblowing framework that is designed to enable colleagues to raise concerns confidentially about conduct they consider contrary to the Group’s values such as unsafe or unethical practices. Any concerns can be reported directly to the Group Company Secretary or by contacting an external confidential dedicated telephone hotline or via a secure web portal. The concern can be given anonymously. The Committee receives regular updates on any concerns identified and, where appropriate, what action has been taken to address the issues raised. The Chair of the Committee is the Group’s whistleblowing champion and is responsible for ensuring and overseeing the integrity, independence, autonomy and effectiveness of the Group’s policies and procedures on whistleblowing including the Just Whistleblowing Policy which is reviewed and approved annually. On behalf of the Group Audit Committee
MARY PHIBBS Chair, Group Audit Committee 6 March 2025
ACTIVITIES CARRIED OUT DURING THE YEAR In 2024, the Committee:
• approved the appointment of the Director of Group Internal Audit; • continued to oversee the Group Internal Audit function with the Director of Group Internal Audit reporting directly to the Committee Chair; • approved and reviewed progress against the annual Internal Audit Plan ensuring alignment to the key risks of the business; • oversaw progress against the implementation of the new Internal Audit Report rating approach; • reviewed results from audits performed, including any audit findings that required significant improvement and related action plans; • monitored progress against open audit management actions; • reviewed the conclusions from the Group Internal Audit’s Internal Control Framework effectiveness review; • reviewed and approved the Just Group Internal Audit Independence and Objectivity Policy; • reviewed and approved the Internal Audit Charter; and • conducted an assessment of the Group Internal Audit function.
Powered by FlippingBook