Strategic Report
Corporate Governance Audit Committee Report/Continued
Financial Statements
Finsbury Food Group Annual Report and Accounts 2020
51 Risk Management and Internal Controls
The risk management process this year was improved by incorporating it into the early stage of the strategic planning process. A report was prepared that identified the risks, the procedures in place to mitigate those risks and uncertainties and the potential impact on the Group. The Committee reviewed this report and reported its views to the Board. The principal risks and uncertainties to which the Group is exposed are set out in the Strategic Report on pages 30 to 33.
During the year the Committee completed a full review and refresh of the Group’s internal Control Framework, across five key process risk areas and approved revised delegated authorities. Related IT controls have been implemented, following the completion of the roll out of the new Financial M3 system. Policies and controls have now been harmonised across all sites and a process of a regular review of the Consolidated Statement of Financial Position has been introduced. It was agreed that the revised Controls Framework would provide a robust structure for future internal audit reviews.
A programme of rolling internal audit reviews was reviewed by the Committee together with follow up actions required. In particular the reviews this year focused on the implementation of the new M3 financial system and there were no material matters arising. The Committee agreed new internal audit procedures based on compliance with the new internal Control Framework.
Whistleblowing
The Committee considered reports of whistleblowing from the independent service provider and during the year approved a new policy to clarify the circumstances in which it is appropriate to use the whistleblowing procedure and to explain the legal protection for employees.
Other Matters During the year the Committee completed a deep dive into cyber-security and received an independent assessment from Willis Tower Watson. The NCSC Cyber Essentials accreditation was achieved and the business is working to obtain the Essentials plus rating in 2021.
The Committee also received a presentation from the Group’s Health and Safety Manager, outlining progress on the strategy. HSE engagement has increased significantly and goals agreed for all sites. Workplace is now used for inter-site communications and sharing best practices. The Committee recognised significant improvement during the past year.
Additional duties were to review foreign exchange, interest rate and commodity hedging policies, review the Group’s insurance policies and a review of the Audit Committee’s effectiveness.
Conclusion
Having given due and full consideration to all the matters referred to above, the Committee is satisfied that the Group has in place effective internal control systems and risk management process. The Committee is also satisfied that the Financial Statements present a fair, balanced and understandable view and provide shareholders with the necessary information to assess the Group’s position and performance, strategy and business model.
Bob Beveridge Chairman of the Audit Committee
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