Report and Financial Statements Adactus Housing Group Limited

18Operating and financial review combined with the reportof the BoardThe Board is aware of its responsibilities on all matters relating to health and safety. The Group hasprepared detailed health and safety policies and provides staff training and education on health and safetymatters.DonationsDuring the year, the Group made no political donations. Any charitable contributions are made within theGroup's normal activities.Internal Controls AssuranceThe Board acknowledges its overall responsibility for establishing and maintaining the whole system ofinternal control and for reviewing its effectiveness.The system of internal control is designed to manage, rather than eliminate, the risk of failure to achievebusiness objectives, and to provide reasonable assurance against material misstatement or loss.The process for identifying, evaluating and managing the significant risks faced by the Group is ongoingand has been in place throughout the period commencing 1 April 2012 up to the date of approval of thereport and financial statements.Key elements of the control framework include:Formal policies and procedures are in place, including the documentation of key processes andrules for the delegation of authorities. These policies and procedures are reviewed on an agreedcycle.Experienced and suitably qualified staff are responsible for important business functions.A performance management framework is in place to provide monitoring information to theBoard and management. Employee progress against agreed, documented objectives are formallyreviewed. Management report regularly on their review of risks and how these are managed.Forecasts and budgets are prepared which allow the Board and management to monitor financialobjectives and risks. Monthly management accounts are prepared promptly with significantvariances from budget investigated and accounted for.All significant new initiatives and projects are subject to formal authorisation procedures by theappropriate board.An internal audit service is provided by the Group incorporating a team managed by a qualified,full-time employed audit manager. The audit committee approves the audit programme andreviews internal audit reports and reports from management and third-party reviews. The auditcommittee makes regular reports to the Board and reviews the assurance procedures, ensuringthat an appropriate range of techniques are used to obtain the level of assurance required by theBoard.The audit committee reviews and approves this statement of the Group's internal controlsassurance.Risks are identified, assessed and documented in a risk register with details of how each risk willbe managed. The risk register is completed with the approval of the Board. The internal audit