Royal Mail's regulatory reporting audit for the year ending 31 March 2013

In March 2012, we set out the basis for a new regulatory framework in the postal sector in the ‘Securing the Universal Postal Service decision on the new Regulatory Framework’ statement (PDF, 1.5 MB) (‘the March Statement’). As part of the new framework we put in place new regulatory financial reporting requirements on Royal Mail Group Ltd (‘Royal Mail’).

The new regulatory financial reporting requirements were set out in the USP Accounting Condition (‘USPAC’) which was published as Annex 10 of the March Statement.

The USPAC requires Royal Mail to select and appoint an auditor upon Ofcom giving their approval to the appointment and the terms of the engagement.¹ Royal Mail have advised us that they propose to select Ernst & Young LLP (‘Ernst & Young’) as auditor for the financial year ending 31 March 2013.

In the February Consultation (PDF, 183.1 KB) we proposed to approve the appointment of Ernst & Young as auditor for the financial year ending 31 March 2013, and their terms of engagement.

We consulted on this matter in accordance with para 4(3) of Schedule 6 to Postal Services Act 2011.

This Statement sets out our final decision to approve the appointment of Ernst & Young as auditor for the financial year ending 31 March 2013, and their terms of engagement.

1. Securing the Universal Postal Service decision on the new Regulatory Framework’, Annex 10 Notification of the USP accounting obligation (PDF, 133.6 KB), para 1.3.5, 1.4.5 and 1.6.5.