key elements of good reporting and an independent directors view jeremy beard: haysmacintyre partner...
TRANSCRIPT
![Page 1: Key Elements of Good Reporting and an Independent Directors View Jeremy Beard: haysmacintyre Partner 0207 969 5503 email: jbeard@haysmacintyre.com](https://reader036.vdocuments.us/reader036/viewer/2022072113/56649e8a5503460f94b905db/html5/thumbnails/1.jpg)
Key Elements of Good Reporting and an Independent Directors View
Jeremy Beard: haysmacintyrePartner
0207 969 5503email: [email protected]
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Contents • Key elements of good reporting:
– Why– When– How– Statutory Accounts
• An independent directors view: – Recent statement from UK Sport/Sport England– Who currently has independent NED’s with finance
background– Why are they different to other Board members?– What should they expect on appointment (finance only)
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Key Elements of Good Reporting
• WHY– Indicator of past performance– Indicator of future performance– Current state of affairs– Future state of affairs– Indicates cash availability– Enables decisions (positive and negative) to
be made
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Key Elements of Good Reporting
• WHEN– Promptly!– Depends on who reporting to: • SMT• Board
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Key Elements of Good Reporting
• HOW– Understandability– Relevance– Reliability– Comparability
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Key Elements of Good Reporting
• STATUTORY ACCOUNTS– Purpose of document– Directors’ report– Minimum disclosure?– Voluntary disclosure? – HMRC
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An Independent Directors View
• Recent statement from UK Sport/Sport England: “The Board is well balanced, no one individual or group has unfettered powers of decision-making or dominates the Board. At least 25% of the Board – ideally a third – are independent and the Board has an appropriate balance of skills”.
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An Independent Directors View
• Who currently has independent NED’s with finance background– UKA– RFU– BTF
– BG– BS– BE
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An Independent Directors View• Why are they different to other Board Members? • What should they expect on appointment (finance only)
– Last statutory accounts– Last audit management letter– Latest management accounts and reports– Budgets and forecasts– Recent reports on tax status, financial systems internal controls– Risk register – Articles of Association– Financial policies– Briefing with Head of Finance– UK Sport/Sport England funding agreements
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An Independent Directors View• What are a (finance) non-executive directors
responsibilities? – To provide a higher level of expertise than one who
does not have financial background– A corresponding higher degree of responsibility and
potential liability – Should ensure that fellow directors are made aware of
matters for which they are responsible– But is not engaged as a professional advisor to the
Board
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An Independent Directors View• What do I expect to see?
– For meetings• A good executive summary for the period;• Results for period against budget, and position at period end;• Expected out-turn [in a form understandable by all the Board]
– Between meetings (on request) • Update on taxes – VAT, PAYE, CT• Cash management • Update on finance section of SA• General discussion (without CEO)
– Annually• Discussion with auditors (closed meeting) • Specific review of risk register• Consider financial policies