Qantas 2012 Annual Report Download - page 65

FOR THE YEAR ENDED 30 JUNE 2012
Directors’ Report continued
ENVIRONMENTAL OBLIGATIONS
The Qantas Group’s operations are
subject to a range of Commonwealth,
State, Territory and international
environmental legislation. The Qantas
Group is committed to environmental
sustainability with high standards for
environmental performance. The Board
places particular focus on the
environmental aspects of its operations
through the Safety, Health, Environment
and Security Committee, which is
responsible for monitoring compliance
with these regulations and reporting
to the Board.
The Directors are satisfied that adequate
systems are in place for the management
of the Qantas Group’s environmental
exposures and environmental performance.
The Directors are also satisfied that relevant
licences and permits are held and that
appropriate monitoring procedures are
in place to ensure compliance with those
licences and permits. Any significant
environmental incidents are reported
to the Board.
The Directors are not aware of any breaches
of any environmental legislation or of any
significant environmental incidents during
the year which are material in nature.
INDEMNITIES AND INSURANCE
Under the Qantas Constitution, Qantas
indemnifies, to the extent permitted by
law, each Director, Company Secretary
and Assistant Company Secretary of
Qantas against any liability incurred
by that person as an officer of Qantas.
The Directors listed on page 37, the
Company Secretary and Assistant Company
Secretary listed on page 39 and certain
individuals, who formerly held any one
of these positions, have the benefit of
the indemnity in the Qantas Constitution.
Members of the Qantas Executive Committee
and certain former members of the
Executive Committee have the benefit
of an indemnity to the fullest extent
permitted by law and as approved by the
Board. In respect to non-audit services,
KPMG, Qantas’ auditor, has the benefit
of an indemnity to the extent KPMG
reasonably relies on information provided
by Qantas which is false, misleading or
incomplete. No amount has been paid
under any of these indemnities during
2011/2012 or to the date of this Report.
Qantas has insured against amounts which
it may be liable to pay on behalf of Directors
and Officers or which it otherwise agrees
to pay by way of indemnity.
During the year Qantas paid a premium
for Directors’ and Officers’ liability insurance
policies, which cover all Directors and
Officers of the Qantas Group. Details of
the nature of the liabilities covered, and
the amount of the premium paid in respect
of the Directors’ and Officers’ insurance
policies, are not disclosed, as such disclosure
is prohibited under the terms of the contracts.
NONAUDIT SERVICES
During the year KPMG, Qantas’ auditor,
has performed certain other services
in addition to its statutory duties.
The Directors are satisfied that:
a The non-audit services provided
during the 2011/2012 financial year by
KPMG as the external auditor were
compatible with the general standard
of independence for auditors imposed
by the Corporations Act 2001
b Any non-audit services provided
during the 2011/2012 financial year by
KPMG as the external auditor did not
compromise the auditor independence
requirements of the Corporations Act
2001 for the following reasons:
— KPMG services have not involved
partners or staff acting in a
managerial or decision-making
capacity within the Qantas Group
or being involved in the processing
or originating of transactions
— KPMG non-audit services have
only been provided where Qantas
is satisfied that the related function
or process will not have a material
bearing on the audit procedures
— KPMG partners and staff involved
in the provision of non-audit services
have not participated in associated
approval or authorisation processes
— A description of all non-audit
services undertaken by KPMG and
the related fees have been reported
to the Board to ensure complete
transparency in relation to the
services provided
— The declaration required by section
307C of the Corporations Act 2001
confirming independence has been
received from KPMG
A copy of the lead auditor’s independence
declaration as required under section 307C
of the Corporations Act 2001 is included
on page 64.
Details of the amounts paid to the auditor
of Qantas, KPMG, for audit and non-audit
services provided during the year are set
out in Note 7 to the Financial Statements.
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