key elements of good reporting and an independent directors view jeremy beard: haysmacintyre partner...

Key Elements of Good Reporting and an Independent Directors View

Jeremy Beard: haysmacintyrePartner

0207 969 5503email: jbeard@haysmacintyre.com

Contents • Key elements of good reporting:

– Why– When– How– Statutory Accounts

• An independent directors view: – Recent statement from UK Sport/Sport England– Who currently has independent NED’s with finance

background– Why are they different to other Board members?– What should they expect on appointment (finance only)

Key Elements of Good Reporting

• WHY– Indicator of past performance– Indicator of future performance– Current state of affairs– Future state of affairs– Indicates cash availability– Enables decisions (positive and negative) to

be made

Key Elements of Good Reporting

• WHEN– Promptly!– Depends on who reporting to: • SMT• Board

Key Elements of Good Reporting

• HOW– Understandability– Relevance– Reliability– Comparability

Key Elements of Good Reporting

• STATUTORY ACCOUNTS– Purpose of document– Directors’ report– Minimum disclosure?– Voluntary disclosure? – HMRC

An Independent Directors View

• Recent statement from UK Sport/Sport England: “The Board is well balanced, no one individual or group has unfettered powers of decision-making or dominates the Board. At least 25% of the Board – ideally a third – are independent and the Board has an appropriate balance of skills”.

An Independent Directors View

• Who currently has independent NED’s with finance background– UKA– RFU– BTF

– BG– BS– BE

An Independent Directors View• Why are they different to other Board Members? • What should they expect on appointment (finance only)

– Last statutory accounts– Last audit management letter– Latest management accounts and reports– Budgets and forecasts– Recent reports on tax status, financial systems internal controls– Risk register – Articles of Association– Financial policies– Briefing with Head of Finance– UK Sport/Sport England funding agreements

An Independent Directors View• What are a (finance) non-executive directors

responsibilities? – To provide a higher level of expertise than one who

does not have financial background– A corresponding higher degree of responsibility and

potential liability – Should ensure that fellow directors are made aware of

matters for which they are responsible– But is not engaged as a professional advisor to the

Board

An Independent Directors View• What do I expect to see?

– For meetings• A good executive summary for the period;• Results for period against budget, and position at period end;• Expected out-turn [in a form understandable by all the Board]

– Between meetings (on request) • Update on taxes – VAT, PAYE, CT• Cash management • Update on finance section of SA• General discussion (without CEO)

– Annually• Discussion with auditors (closed meeting) • Specific review of risk register• Consider financial policies