Report of the audit committee

Membership

The committee is chaired by Mr Neathercoat and was served throughout 2009 by Messrs Corbyn, Farnes and Newell and Mrs de Moller. All members are considered independent by the company having no day-to-day involvement with the company. Mr Neathercoat is a member of the Institute of Chartered Accountants of England and Wales and considered to have appropriate recent and relevant financial experience. The committee has access to further financial expertise at the company’s expense, if required.

Roles and responsibilities

The terms of reference for the committee are available on the company’s website.

Meetings

The committee meets at least three times a year to discharge its responsibilities. Meetings are attended by the group’s external auditors and members of the group’s senior management when invited. During 2009, four meetings were held.

Work of the committee

During the year, the committee has carried out the following:

  • reviewed the interim and annual financial statements and considered the appropriateness of the accounting policies used, assumptions adopted and estimates made;
  • reviewed the group’s published interim management statements;
  • held meetings with the group’s external valuers;
  • reviewed the scope of the annual audit and the level of associated fees;
  • considered the adequacy of the auditors’ statement of independence and monitored the operation of the group’s policy regarding the use of the external auditors for non-audit work which helps to protect the auditor’s independence and objectivity;
  • after due consideration of the conduct of the audit and the matters raised in the management letter, recommended the re-appointment of the group’s external auditors;
  • liaised with the company over the appointment of a new audit partner;
  • considered the need for an internal audit function;
  • reviewed the group’s conflict of interest register;
  • reviewed, commented upon and approved the preparation of the group’s risk register; and
  • reviewed an external report regarding the operation of the group’s property management department.

S.J. Neathercoat
Chairman of the audit committee
17th March 2010

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