Annual Report and Accounts 2012/13 - Royal Bournemouth Hospital

Financial AccountsThe Head of Internal Audit providesan annual opinion, based upon andlimited to the work performed, on theoverall adequacy and effectiveness ofthe organisation’s risk management,control and governance processes. Thisis achieved through a risk-based planof work, agreed with the managementand approved by the Audit Committeewhich should provide a reasonable levelof assurance. The Head of Internal Auditopinion states that ‘There is generallya sound system of Internal Control,designed to meet the organisation’sobjectives and that controls are generallybeing applied consistently. However,some weaknesses in the design and/orinconsistent application of controls, putsthe achievement of particular objectivesat risk. Using the terminology set outin the Department of Health guidanceto Heads of Internal Audit, this opinionwould equate to ‘Significant Assurance’.Internal Audit identified 3 high risk reportsto improve weaknesses in the design ofcontrols and /or operating effectiveness.The first item relates to InformationGovernance and this has been set outearlier in the statement and the seconditem related to the governance ofsoftware asset management and whilethere is a general awareness withinthe IT function of the requirementsfor appropriately managing softwarelicensing and the associated risks,policies and procedures are generallyinformal and immature in nature. TheDirector of Informatics is addressing thisshortfall. The other area of risk, relatesto the patient experience and the lackof a formal mechanism for reporting andmonitoring completion of the actionsand appropriateness of the plans atCommittee level. The opinion alsosuggests that further improvement can bemade to the Board dashboard to includetargeted focus on areas taken from thereal time patient feedback. The Trust willimplement the recommendations.As part of their role, the external auditorreviews the work of the internal auditorin order to determine what reliance canbe placed on the internal audits carriedout during the year. The external auditorwill conclude their overall work throughtheir annual report and present this to theAudit Committee for recommendation tothe Board of Directors.A non-executive director chairs the AuditCommittee. It met five times duringthe year. Representatives of externalaudit and internal audit attended. Thecommittee reviewed and accepted theaudit plans of both internal and externalaudit. The plans specifically includeeconomy, efficiency and effectivenessreviews. The committee received regularupdates on counter fraud matters. TheAudit Committee also met separatelywith representatives of external auditand internal audit without any executivemanagement present.A non-executive director chairs theHealthcare Assurance Committee. TheCommittee met twelve times during theyear and received reports related tointernal control, risk management andassurance and ensured that action plans,where remedial action was required, wereimplemented.A non-executive director chairs theFinance Committee. The Committeemet fourteen times during the yearand reviewed the Trust’s businessplans, budgets, cash flow, treasurymanagement, reporting arrangementsand efficiency savings programme.The Board of Directors receivedperformance and financial reports duringthe year at its meetings and received theminutes of the following sub-committeesto which it has delegated powers andresponsibilities:l Audit Committeel Trust Management Boardl Healthcare Assurance Committeel Infection Control Committeel Finance Committeel Patient Experience andCommunications Committeel Workforce Strategy Committee12Annual Report and Accounts 2012/13