Strategic report Governance Financial statements Other information AUDIT COMMITTEE REPORT CONTINUED Summary of audit and non-audit fees: Given the need to allow enough time to enable an incoming auditor 2021 2020 to become independent following any appointment decision, the (£) (£) Company intends to begin the tender process in respect of the Statutory audits financial year ending 30 June 2024 in the next financial year. Hargreaves Lansdown plc and UK subsidiary statutory audit fees 430,000 245,000 The lead audit partner for the period under review was Darren HL Tech (PwC Poland and UK work) 15,000 12,000 Meek, who had shadowed last year’s audit ahead of his Total audit fees (a) 445,000 257,000 appointment for this year’s audit. Audit related assurance services excluded from fee cap Internal controls In conjunction with the Risk Committee, the Committee provides CASS audits – HLAM, HLFM, and HLAS 229,000 154,894 assurance to the Board on the Group’s system of internal controls. Safeguarding Audit – HLS 132,000 – Total audit related assurance services excluded from fee cap (b) 361,000 154,894 A key aspect of this is the review of the financial controls systems that identify, assess, manage and monitor financial risks, which are Audit related assurance services included in fee cap an important aspect of ensuring the integrity of the Group’s Half year review 40,000 27,319 financial statements as a whole. During the period, the Committee Trust audits 15,000 5,464 reviewed and discussed the Department for Business, Energy & Industrial Strategy’s consultation paper on Audit and Corporate Interim profit verifications 35,000 34,653 Governance noting that the output would put further emphasis Total audit related assurance services included in fee cap (c) 90,000 67,436 on the Group’s internal control framework and the Director’s Total non-audit fees 451,000 222,330 responsibility for this. Total 896,000 479,330 As part of its oversight of the Group’s wider system of internal Non-audit fee to audit fee ratio % for the year (b+c/a) 101% 87% controls, the Committee receives reports from management Fee ratio % (c/a) 20% 26% on the effectiveness of those controls, as well as independent assurance on the effectiveness of controls by the Group’s Internal Tenure of the external auditor Audit function and the external auditors. During the period, the The Company has complied throughout the period under review The Group appointed PwC as its external auditor following a Committee has: with the provisions of The Statutory Audit Services for Large tender process in respect of the financial year ending 30 June 2014. Received regular reports from the Group’s Internal Audit function Companies Market Investigation (Mandatory Use of Competitive It will therefore be required, at the latest, to undertake a formal, on the sufficiency of the internal controls in those areas of the Tender Processes and Audit Committee Responsibilities) competitive tender process in respect of the financial year ending business included in the Internal Audit Plan for the period. Specific Order 2014, as regards the tenure of the Group’s external auditor, 30 June 2024, being 10 years from the previous tender process. areas of focus in the period have included operational resilience, IT, the tender process for auditor appointments and Audit The Company considers that, taking account of the controls response to COVID-19, governance and the systems and controls Committee responsibilities. in place to maintain the external auditor’s independence and that support regulatory changes. Reporting to the Committee has objectivity, the relationship the Group has developed with PwC is also included updates on progress against management actions conducive to an efficient and effective audit, and that it is therefore identified and a root cause analysis of internal audit observations in the best interests of the Company’s members as a whole to over the preceding 12-month period. maintain that relationship for the time being. 85 Hargreaves Lansdown Report and Financial Statements 2021