96 | Just Group PLC | Annual Report and Accounts 2023
GROUP AUDIT COMMITTEE REPORT continued
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 Committee considers and approves the Internal Audit plan annually, which is constructed using a risk-based approach taking account of risk assessments, input from senior management and previous external and internal audit findings. Reports from the Director of Group Internal Audit included updates on audit activities, progress of the Internal Audit plan, the results of all audits with a particular focus on any unsatisfactory audits, and the action plans to address those areas. Monitoring and reviewing the scope, extent and effectiveness of the activity of the Group Internal Audit team was regularly reviewed by the Committee. In 2023, the Committee: • continued to oversee the Group Internal Audit function with the Director of Group Internal Audit reporting directly to the Committee Chair; • held private discussions with the Director of Group Internal Audit during the year; • approved the appointment of an acting Head of Internal Audit while the Group undergoes recruitment of a permanent replacement of the Director of Group Internal Audit who left the Group on 31 December 2023; • considered and remained satisfied that the Group Internal Audit function remained appropriately resourced; • oversaw the engagement of EY and Grant Thornton to work with the Group Internal Audit function on the combined internal audit assurance work to complete the audit plan for 2023; • reviewed and approved the rolling 12-month internal audit plan ensuring the alignment to the key risks of the business; • reviewed results from audits performed, including any unsatisfactory audit findings and related actions plans; • reviewed open audit actions and monitored progress against them; • reviewed and approved the Internal Audit Data Analytics Strategy; • reviewed and approved the Just Group Internal Audit Independence and Objectivity Policy; • reviewed and approved the Just Group Internal Audit Charter, which is available to view on the Group’s website; and • reviewed and approved the Internal Audit calendar for 2023. Outside the formal Committee process, the Committee Chair regularly met with the Director of Group Internal Audit and is accountable for the setting and appraisal of their objectives and performance with input from the Group Chief Executive Officer. During the year, the Committee Chair, in conjunction with the Director of Group Internal Audit, set key actions to continue to develop the Group Internal Audit function regarding its effectiveness, impact and influence, and the Committee received updates on the status of those actions. The Chartered Institute of Internal Auditors’ standards require that an External Quality Assessment (“EQA”) of the Internal Audit function is carried out every three to five years. The Committee oversaw the appointment of Deloitte LLP who performed an EQA in May 2023 which assessed the function against the Chartered Institute of Internal Auditors’ standards with an overall rating of Partially Conforms, which judged practices to have deviated from the Standards, but the deficiencies did not preclude the Internal Audit function from performing its responsibilities. A quality assurance and improvement plan was developed by the Group Internal Audit function with a number of deliverables already completed or in progress. The Committee continues to receive regular updates on achievement of agreed milestones.
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 received regular updates on any concerns identified and, where appropriate, what action had been taken to address the issues raised. The Committee received a report on two whistleblowing disclosures received during the year which related to potential fraud and regulatory-related concerns. The Committee noted the steps taken by the Group Company Secretary to investigate the concerns and considered whether the framework remained fit for purpose, from which it was satisfied that there were no material issues. 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 Group whistleblowing policy which is reviewed and approved annually. On behalf of the Group Audit Committee
MARY PHIBBS Chair, Group Audit Committee 7 March 2024
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