WindarPhotonics AnnualReport 2018 All - Flipbook - Page 27
Guidance to Directors of UK Companies on internal control procedures and good practice on risk
management is provided by the Financial Reporting Council.
The Audit Committee reviews the effectiveness of the internal controls on an annual basis on behalf of
the Board and considers that they comply throughout the year ended 31 December 2018 with those
provisions of the Code which they consider to be practicable and appropriate for a relatively
small public company.
The key elements of the system, which are designed to meet the specific needs and business risks of
the Group, include:
• clearly defined organisation structures with segregation of duties wherever practicable;
• agreement of Group short term financial objectives and business plans;
• monthly review by the Board of Group management accounts and monitoring of results
against budgets;
• Board control over treasury, taxation, legal, insurance and personnel issues;
• Board control over appraisal, review and authorisation of capital expenditure.
In common with organisations of similar size the Executive Director is heavily involved in the day to
day running of the business. The directors believe that although the Group’s controls may be slightly
less formal than those of larger groups, the close involvement of the Executive Directors more than
compensates for this.
The Board believes that it is not currently appropriate for the Group to maintain an internal audit
function because of the small size of the Group.
The Audit Committee considers the independence and objectivity of the external auditor on an annual
basis, with particular regard to non-audit services. The split between audit and non-audit fees for the
year and information on the nature of the non-audit fees appear in note 9 to the financial statements.
The non-audit fees are considered by the Committee not to affect the independence or objectivity of
the auditor. The Audit Committee monitors such costs in the context of the audit fee for the year,
ensuring that the value of non-audit services does not increase to a level where it could affect the
auditor’s objectivity and independence. The Audit Committee also received an annual confirmation
of independence from the auditor.
GOING CONCERN
After making enquiries, the Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future. For this reason, they continue
to adopt the going concern basis in preparing the financial statements. Further information in respect
of the Director’s consideration of going concern is included in note 3 to the financial statements.
Windar Photonics - Annual Report and Accounts 2018
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