Barclays 2009 Annual Report Download - page 163

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 161
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2
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6
2009 2008
% %
1 Control Issues 8 9
2 Financial Results 45 36
3 Internal Audit Matters 13 11
4 External Audit Matters 5 9
5 Business Control
Environment 21 28
6 Other (including governance
and Compliance) 8 7
Fig. 6: Board Audit Committee allocation of time
Board Audit Committee Activities in 2009
The Committee met 11 times in 2009 and Figure 6 illustrates how the
Committee allocated its time at those meetings. The items covered under
each heading in Figure 6 are as follows:
Control Issues
– reviewed internal control and risk management systems;
–considered the effectiveness of the Group’s internal controls over
financial reporting;
– reviewed impairment methodologies; and
– considered the Fraud Risk Control Framework.
Financial Results
– reviewed the full year results, including market understanding and
perception of those results;
– reviewed the Annual Report and Accounts, half-year Results and Interim
Management Statements; and
– reviewed the Group’s accounting policies and the valuation of derivatives
and credit market exposures.
Internal Audit Matters
– received reports from the internal auditors;
–monitored the performance of the Internal Audit function and received
an external assessment review of the Internal Audit function; and
– reviewed the Global Internal Audit Plan.
External Audit Matters
– reviewed the effectiveness and independence of the Group statutory
auditor;
– approved the re-appointment, remuneration and engagement letter
of the Group statutory auditor;
– approved the global audit plan for 2009;
– considered the provision of non-audit services by the Group statutory
auditor – more details can be found in the box on page 162; and
– received reports from the external auditors.
Business Control Environment
– received reports on Group Control Environment Key Trend Data and on the
control environments in each of the following businesses or functions: UK
Retail Banking, Barclays Commercial Bank, Barclays Wealth (Americas),
Barclays Capital (including an update on the integration of the Lehman
Brothers North American business), Barclaycard, Emerging Markets,
Barclays Wealth, Western Europe, GRCB – Technology and Absa.
Governance and Compliance
– considered the information it would require during the coming year to
enable it to discharge its responsibilities given the significant changes in
financial markets and economic conditions and the impact on the areas of
focus for the Committee;
– received reports on matters discussed at the Board Risk Committee, which
included information on mark to market valuations, impairment, capital
and liquidity;
– received regular reports on ‘Raising Concerns’, including whistleblowing;
– received updates on Sarbanes-Oxley Section 404 compliance;
– received updates on ‘Know Your Customer’, Anti-Money Laundering and
Sanctions Compliance audits;
– reviewed the effectiveness of subsidiary audit committees;
– reviewed the recommendations from the Walker Review; and
– reviewed its Terms of Reference to satisfy itself that they enable the
Committee to fulfil its responsibilities.
Other
– received updates on business continuity management; and
–reviewed the regulatory issues.