The Audit Committee comprises the Non-Executive Directors. It was chaired by Rod Holdsworth throughout 2018 and following his resignation is now chaired by John Grant. The external auditor and the Executive Directors are regularly invited to attend the meetings and the Committee also has access to the external auditor’s advice without the presence of the Executive Directors. The Committee met on five separate occasions during the year.
During the year the Committee considered the adequacy and effectiveness of the risk management and control systems of the Group and requested updates to the Group’s corporate risk register. It also reviewed the scope and results of the annual external audit, its cost-effectiveness and the objectivity and independence of the external auditor.
In 2018 a tender process took place to review the external auditor and following the results of this process, a new external auditor was appointed. The Committee has reviewed the new auditor’s audit plan and considered the final Audit report. In 2018 a landfill tax manager was appointed by the Company in order to provide an internal audit process to ensure landfill tax compliance.
The Committee monitored the integrity of the financial statements of the Company, including its annual financial statements for 2017 and other information included in the 2017 Annual Report, the interim financial statements for 2018, all formal announcements relating to results and all significant financial reporting issues and judgements contain therein. The Committee have reviewed, in depth, the key assumptions around goodwill and other non-current asset impairment reviews, provisions, accounting for landfill tax assessments, deferred tax asset recognition, key assumptions around provisioning and adoption of the going concern assumption.
During the year the Audit Committee reviewed its own performance, its constitution and its terms of reference to ensure it was operating at maximum effectiveness. Recommendations were made to the Board for any changes it considered necessary.