BT 2010 Annual Report Download - page 83

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81BT GROUP PLC ANNUAL REPORT & FORM 20-F
ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS REVIEW OF THE YEAR OVERVIEW
REPORT OF THE DIRECTORS BUSINESS POLICIES
We comply with the legal and regulatory requirements introduced
pursuant to this legislation, in so far as they are applicable.
It is the opinion of the Board that the
Audit Committee
includes in
the person of Phil Hodkinson a member who is an ‘audit committee
financial expert’ and who is independent (as defined for this
purpose). The Board considers that the Committee’s members
generally have broad commercial knowledge and extensive
business leadership experience, having held – between them –
various prior roles in major business, government, financial
management, treasury and financial function supervision and that
this constitutes a broad and suitable mix of business, financial,
management and IT experience on the Committee. The code of
ethics adopted for the purposes of the Sarbanes-Oxley Act is
posted on the company’s website at www.bt.com/ethics The code
applies to the Chief Executive, Group Finance Director and senior
finance managers.
Disclosure controls and procedures
The Chief Executive and Group Finance Director, after evaluating
the effectiveness of BT’s disclosure controls and procedures as of
the end of the period covered by this Annual Report & Form 20-F,
have concluded that, as of such date, BT’s disclosure controls and
procedures were effective to ensure that material information
relating to BT was made known to them by others within the group.
The Chief Executive and Group Finance Director have also provided
the certifications required by the Sarbanes-Oxley Act.
Internal control over financial reporting
BT’s management is responsible for establishing and maintaining
adequate internal control over financial reporting for the group
including the consolidation process. Internal control over financial
reporting is designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial
statements for external reporting purposes in accordance with
IFRS. Management conducted an assessment of the effectiveness
of internal control over financial reporting based on the framework
for internal control evaluation contained in the Turnbull Guidance.
Based on this assessment, management has concluded that as at
31 March 2010, BT’s internal control over financial reporting was
effective.
There were no changes in BT’s internal control over financial
reporting that occurred during the 2010 financial year that have
materially affected, or are reasonably likely to have materially
affected, the group’s internal control over financial reporting. Any
significant deficiency, as defined by the US Public Company
Accounting Oversight Board (PCAOB), in internal control over
financial reporting, is reported to the
Audit Committee
.
PricewaterhouseCoopers LLP, which has audited the
consolidated financial statements for the 2010 financial year, has
also audited the effectiveness of the group’s internal control over
financial reporting under Auditing Standard No.5 of the PCAOB.
Their report is on page 86.