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ANNUAL REPORT 2010

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Skip Navigation LinksFinancial Report > Notes to the Consolidated Financial Statements > Note 24. Auditors’ Remuneration

Note 24. auditors’ remuneration

The auditor of the Paladin Energy Ltd Group is Ernst & Young.

CONSOLIDATED
2010
US$’000
2009
US$’000
Amounts received or due and receivable by Ernst & Young (Australia) for:
·       Audit or review of the financial report of the consolidated Group and audit related services776470
·       Taxation services:
       Tax compliance services97282
       International tax consulting 205189
       Tax advice on mergers and acquisitions2103
       Other tax advice5853
       Sub-total1,1381,097
Amounts received or due and receivable by related practices of Ernst & Young (Australia) for:
·       Audit or review of the financial report of subsidiaries20955
·       Other assurance services:
       Malawi Development Agreement58-
·       Taxation services:
       Tax compliance services555
       Sub-total272110

The level of non-audit related fees that the Company paid to its independent auditor, Ernst & Young relative to the audit /audit related fees reduced significantly from 2009 to 2010, with non-audit fees now lower than the audit/audited related fees.

The level of non-audit related fees was driven by the tax compliance requirements of multiple jurisdictions, establishing new operations and by the specialist advice requirements of potential acquisitions. The appointment of a tax manager during the year is expected to reduce the level of external advice going forward.

Whilst always striving to meet the highest corporate governance standards, Paladin is also cognisant of the need to retain the value of the best available specialist advice. The establishment of the new Kayelekera mining operation in Malawi necessitated setting up robust internal controls and processes and systems. After a thorough search Paladin decided to engage Ernst & Young because of their specialised experience in both Africa and the mining sector and Ernst & Young’s detailed understanding of the Paladin Group. These costs included under other assurance services are considered to be set up costs and are not anticipated to be incurred in future periods.

In terms of the Company’s Corporate Governance Policy all non-audit services are reviewed and approved by the audit committee prior to commencement to ensure that they do not adversely affect the integrity and objectivity of the auditor and that the nature of the services provided does not compromise the Code of Ethics for Professional Accountants APES 110 issued by the Accounting Professional and Ethical Standards Board.

All non-audit services provided by Ernst & Young were allowable services that received the sign off of the audit partner confirming that, in his professional opinion, they do not in any way impair the independence of the firm. Where any service might be perceived to be subjective, Ernst & Young policy requires approval by the Oceania Independence and Conflicts Leader.