Annual Report and Accounts 2015


John Lewis Partnership plc 109


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 was arranged for the two new Non-Executive Directors and one Elected Director who joined the Committee during the year.


Committee evaluation


During the year, the Committee undertook an internal evaluation of its own effectiveness facilitated through the ‘Thinking Board’ on-line self-assessment tool provided by Independent Audit Limited and supported by interviews with Committee members conducted by the Interim Director of Legal Services.


Key recommendations of the 2014/15 evaluation


The key recommendations of the 2013/14 evaluation had been to review the role and responsibilities 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. The Terms of Reference for the Committee were subsequently reviewed in light of this recommendation. As a result one of the key areas the 2014/15 evaluation was designed to assess was how effective this review had been. This year’s evaluation concluded that the new Terms of Reference for the Committee provided the greater clarify identified as being required in the previous year’s evaluation.


Baroness Hogg Non-Executive Director and Chair of the Audit and Risk Committee


Other key results of the 2014/15 evaluation included agreement that the priorities of the Committee are clear, the Committee facilitates high quality discussions in meetings and has the right mix of skills, experience and diversity of perspectives. One area for development and focus for improvement in 2015/16 was identified as continuing to look at the scope of information that the Committee receives to ensure reports presented to the Committee provide appropriate information to enable the Committee to fulfil its responsibilities.


The Committee concluded that it has acted in accordance with its terms of reference and is performing its duties to the Board effectively.


The new General Counsel and Company Secretary is reviewing the main themes from the evaluation and will make recommendations to the Board during the course of the year.


On behalf of the Audit and Risk Committee


Comply or explain?


Composition of the audit and risk committee


Code Provision C.3.1 states that 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, three Elected Directors, the Partners’ Counsellor and, until 30 April 2014, 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 Partnership has voluntarily adopted the UK Corporate Governance Code on a comply or explain basis. For more information: Go to page 84,


Introduction


Partnership difference


Principles


Strategy


Performance


Governance


Financial statements


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