Aer Lingus 2013 Annual Report Download - page 76

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74
The FRC’s guidance to audit committees also requires that the Audit Committee’s report include those matters that have informed its
conclusion, and the Board’s determination that it is appropriate to adopt the going concern basis of preparation for the 2013 financial
statements. In making this determination, the Audit Committee and Board had regard to the Group’s five year plan (which includes an
assessment of likely capital expenditure on aircraft over the period), the budget for 2014 (which has been approved by the Board), the level
and terms of the Group’s gross cash balance available to the Group (totalling €897.4 million at 31 December 2013). The Audit Committee
and Board also included in their considerations the possible disbursement of €140 million in relation to the continuing efforts to deal with
the deficit in the IASS pension scheme.
Link to remuneration
The Audit Committee considers the response of the executive directors and senior management of the Company in respect of issues falling
within the terms of reference of the Audit Committee as material to remuneration levels generally and to the award of performance related
pay in particular. To that end the Audit Committee has established with the Remuneration Committee a protocol whereby, on an annual
basis, the Audit Committee will notify the Remuneration Committee of any issues it considers material to the work of the Remuneration
Committee in determining the remuneration of the executive directors and senior management of the Company.
In so notifying the Remuneration Committee, the Audit Committee considers which, if any, matters should be advised to the Remuneration
Committee in the context of both (i) matters arising in a given financial year that should be considered in the context of aggregate
remuneration levels for that year and (ii) matters arising in a given financial year that should be considered in the context of longer term
performance reviews or incentives.
Yours faithfully,
NICOLA SHAW
Chairman
Audit Committee
27 March 2014