The U.K. Financial Reporting Council (FRC) imposed sanctions against Deloitte LLP and Deloitte’s audit engagement partner, Helen George, in relation to audits of the 2011 and 2012 financial statements of Serco Geografix Ltd. According to the FRC, Deloitte and George “failed to act in accordance with the fundamental principle of professional competence and due care.” Deloitte was fined £4.2 million (US$5.3 million) and was severely reprimanded. Deloitte also paid £300,000 (US$375,000) toward the cost of FRC’s investigation. George paid a £97,500 (US$122,000) fine and was severely reprimanded. (In a separate matter, Serco Geografix paid the British government more than $28 million to settle fraud and false accounting claims involving the company’s financial statements between 2010 and 2013.)