AH ANNUAL REPORT 2018

The Committee discussed the approach taken by the
Trust in relation to income recognition. The Trust has
robust processes in place which ensure that income
is actively monitored and debtors are followed up
on a timely basis. The Trust also acknowledges that
there is no specific risk in relation to fraudulent income
recognition.
The Committee discussed the approach taken by
the Trust in relation to valuation of land and buildings.
The Trust has robust processes in place to assess for
impairments and appropriate valuation arrangements.
The Committee also discussed the significant
transaction risk in relation to management override of
controls and is satisfied that there are no issues arising
from the work of internal audit that would suggest that
this could lead to a material misstatement within the
accounts.
The Audit Committee contributed to the risk
assessment to inform and subsequently approve the
content of the Internal Audit Plan for 2017/18. This plan
was structured to provide the Director of Audit Opinion
which gives an assessment of the:
• design and operation of the underpinning Assurance
Framework and supporting processes;
• range of individual opinions arising from risk-based
audit assignments contained within internal audit
risk-based plans that have been reported throughout
the year, this assessment has taken account of the
relative materiality of these areas and management’s
progress in respect of addressing control
weaknesses; and
• effectiveness of the overall governance and
assurance processes operating within the Trust.
The key conclusion from their work for 2017/18 as
provided in the Director of Audit Opinion and Annual
Report was that ‘Substantial Assurance’, can be given
that there is a good system of internal control designed
to meet the organisation’s objectives, and that controls
are generally being applied consistently.
NOMINATIONS COMMITTEES
The Trust has established a separate Nominations
Committees to oversee the appointment of Executive
and Non-Executive Directors.
• The Nominations Committee of the Council of
Governors is responsible for the appointment and
removal of Non-Executive Directors. It is chaired
by the Trust Chair apart from when it is concerned
with the appointment or re-appointment of the Trust
Chair. Other members of the Committee are Barbara
Murray, Kate Jackson, Glenna Smith and Louise
Shepherd.
During 2017/18 the Committee considered:
• The request for re-appointment of Non-Executive
Director Anita Marsland for a second three year term.
• A further twelve month extension for Non-Executive
Director Steve Igoe.
• A further twelve month extension for Non-Executive
Director Ian Quinlan.
• A further twelve month extension for the Trust
Chairman Sir David Henshaw.
These extensions were based on the need for
continuity and stability on the Board coupled with
strong track record of performance.
• The Appointments and Remuneration Committee
of the Board of Directors is responsible for the
appointment of Executive Directors. It is chaired by
the Trust Chair; other members are a minimum of
three other Non-Executives and the Chief Executive,
as appropriate to the post under consideration.
During 2017/18 the Committee substantively
appointed Mark Flannagan as the Trust’s Director of
Communications, Dani Jones as Director of Strategy
and Adam Bateman as Chief Operating Officer.
REGULATORY RATINGS
NHS IMPROVEMENT’S SINGLE
OVERSIGHT FRAMEWORK
NHS Improvement’s Single Oversight Framework
provides the framework for maintaining providers’
performance and identifying potential support needs.
The framework looks at five themes:
• Quality of care
• Finance and use of resources
• Operational performance
• Strategic change
• Leadership and improvement capability (well-led)
Based on information from these themes, providers
are segmented from 1 to 4 where ‘4’ reflects providers
receiving the most support and ‘1’ reflects providers
with maximum autonomy. A foundation trust will only
be in segments 3 or 4 where it has been found to be in
breach or suspected breach of its Licence.
Alder Hey Children’s NHS Foundation Trust 67
Annual Report & Accounts 2017/18