John Lewis Partnership plc Annual Report and Accounts 2014
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–Regulatory risk management and compliance, including, health & safety, product and food safety. An external professional services firm was instructed during the year, to undertake a review of the Partnership’s regulatory compliance framework and included a “deep dive” into the Partnership’s policies and procedures for three specific areas of risk, anti-bribery and corruption, distance selling and competition law;
– The continued oversight and development of the financial control and information technology environment for the Partnership and its divisions and considered improvements in the areas of financial control and information technology. This includes the process for Directors and senior management confirming compliance and disclosure;
– Waitrose’s compliance report with the Groceries (Supply Chain Practices) Market Investigation Order 2009 (‘the Order’) and the Groceries Supply Code of Practice (‘GSCoP’) and reviewed the report to be submitted to the Office of Fair Trading on 16 April 2013; and
– The Partnership whistleblowing procedures that allow Partners to raise, in confidence, any concerns about possible improprieties including matters of financial reporting, risk issues, fraud, internal controls and auditing issues.
Qualifications of Audit and
Risk Committee members Details of the members financial and accounting qualifications are given on their biographies on pages 62 to 63.
Composition of the Audit
and Risk Committee During the year, the Audit and Risk Committee comprised the following members:
– Three Non-Executive Directors; – Two Elected Directors; – One Partners’ Counsellor; and – One external independent member.
Baroness Hogg, Non-Executive Director and Chair of the Audit and Risk Committee
The composition, including the Partners’ Counsellor and Elected Directors, reflects the Constitution and the co-owned structure of our business.
Training During the year, the Directors have continued to receive induction training on Audit and Risk Committee matters. Training has been provided by external training providers and also internally. It has been linked to the Partnership Board agenda and covers the Partnership’s financial risks and financial reporting.
An induction programme has been arranged for the two new Non-Executive Directors who joined the Committee after the year-end.
Committee evaluation During the year, the Committee, facilitated by Board Intelligence, undertook an externally facilitated evaluation of its own effectiveness. The key recommendations of the evaluation were to review the role of the Committee and the role of management that supports and provides assurance to the Committee so that they are clearly defined and reflected within the Committee’s Terms of Reference.
As a result of its work during the year, the Committee has concluded that it has acted in accordance with its terms of reference and operating effectively.
On behalf of the Audit and Risk Committee
Comply or explain
COMPOSITION OF THE AUDIT AND RISK COMMITTEE
Code Provision C.3.1 – The Board should establish an Audit Committee of at least three independent Non-Executive Directors. This provision supports the Code principle that the Audit Committee should be independent of executive management.
During the year, the Partnership Board’s Audit and Risk Committee comprised three Non-Executive Directors, two Elected Directors, the Partners’ Counsellor and an external independent member. This composition ensures that the assurance and critical analysis of the business systems, operations and financial probity is conducted with appropriate objective and independent scrutiny, whilst also mindful of Partners’ interests.
THE JOHN LEWIS PARTNERSHIP
OUR PERFORMANCE
GOVERNANCE
FINANCIAL STATEMENTS
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