Vodafone 2014 Annual Report Download - page 69

Resolutions
a Voting on all resolutions at the AGM is on a poll. The proxy votes
cast, including details of votes withheld, are disclosed to those
in attendance at the meeting and the results are published on our
website and announced via the Regulatory News Service.
A summary of our share and control structures is set out in “Shareholder
information” on pages 182 to 189.
How do we deal with internal control
and risk management?
The Board has overall responsibility for the system of internal control.
A sound system of internal control is designed to manage rather than
eliminate the risk of failure to achieve business objectives and can
only provide reasonable and not absolute assurance against material
misstatement or loss.
The Board has established procedures that implement in full the
Turnbull Guidance “Internal Control: Revised Guidance for Directors
on the Combined Code” for the year under review and to the date of this
annual report. These procedures, which are subject to regular review,
provide an ongoing process for identifying, evaluating and managing
the signicant risks we face. See page 89 for management’s report
on internal control over nancial reporting.
Monitoring and review activities
There are clear processes for monitoring the system of internal control
and reporting any signicant control failings or weaknesses together
with details of corrective action. These include:
a the local Chief Executive and Chief Financial Ofcer of each operating
business formally certifying the operation of their control systems
each year and highlighting any weaknesses. These results are
reviewed by regional management, the Audit and Risk Committee,
and the Board;
a local Chief Executives certifying compliance with high risk policies
in their companies, with Group Compliance reviewing evidence
of compliance;
a the Group’s Disclosure Committee reviewing the appropriateness
of disclosures and providing an annual report to the Group’s Chief
Executive and the Chief Financial Ofcer on the effectiveness of the
Group’s disclosure controls and procedures;
a maintaining “disclosure controls and procedures”, as such term
is dened in Rule 13a-15(e) of the Exchange Act, that are designed
to ensure that information required to be disclosed in reports that
we le or submit under the Exchange Act is recorded, processed,
summarised and reported within the time periods specied in the
SEC’s rules and forms, and that such information is accumulated
and communicated to management, including our Chief Executive
and Chief Financial Ofcer as appropriate to allow timely decisions
regarding required disclosure; and
a the Group Internal Audit department periodically examining business
processes on a risk basis throughout the Group and reporting to the
Audit and Risk Committee.
In addition, the Board reviews any reports from the external auditor
presented to the Audit and Risk Committee and management in relation
to internal nancial controls.
a evaluating the risks we face in achieving our objectives;
a determining the risks that are considered acceptable to bear;
a assessing the likelihood of the risks concerned materialising;
a identifying our ability to reduce the incidence and impact on the
business of risks that do materialise; and
a ensuring that the costs of operating particular controls are
proportionate to the benet.
Risk management
An overview of the Group’s framework for identifying and managing risk,
both at an operational and strategic level, is set out on pages 46 and 47.
Review of effectiveness
The Board and the Audit and Risk Committee have reviewed the
effectiveness of the internal control system including nancial,
operational and compliance controls, and risk management
in accordance with the Code for the period from 1 April 2013
to 20 May 2014 (the date of this annual report). No signicant failings
or weaknesses were identied during this review. However, had there
been any such failings or weaknesses, the Board conrms that
necessary actions would have been taken to remedy them.
The directors, the Chief Executive and the Chief Financial Ofcer have
evaluated the effectiveness of the disclosure controls and procedures
and, based on that evaluation, have concluded that the disclosure
controls and procedures were effective at the end of the period covered
by this report.
What is our approach to other governance matters?
Group policy compliance
Each Group policy is owned by a member of the Executive Committee
so that there is clear accountability and authority for ensuring the
associated business risk is adequately managed. Regional chief
executives and the senior leadership team member responsible for each
Group function have primary accountability for ensuring compliance
with all Group policies by all our markets and entities. Our Group
Compliance team and policy champions support the policy owners and
local markets in implementing policies and monitoring compliance.
Code of Conduct
All of the key Group policies have been consolidated into the Vodafone
Code of Conduct. This is a central ethical and policy document
applicable to all employees and those who work for or on behalf
of Vodafone. It sets out the standards of behaviour expected in relation
to areas such as insider dealing, bribery and raising concerns through
the whistle-blowing process (known internally as ‘Speak Up’).
67Overview Strategy review Performance Governance Financials Additional information