CRC Annual Report 2017

Financial Review and Performance
Internal Auditors
Since 2015 Deloitte has been carrying out
internal audits of the CRC. During 2017
the Audit Committee was presented with
reports of four internal audit modules.
These modules were on Data Protection,
Governance, IT Vulnerability and Clinical
Audit Governance. During 2016 the Audit
Committee was presented with reports on
the first three internal audit modules. Since
these reports have been issued the Senior
Management Team has been implementing
agreed actions in response to issues
identified in the internal audit. During 2017
the Senior Management Team continued to
implement agreed actions in the response to
the three internal audit modules from 2016
on Procurement, Internal Controls and Cash
Management. These actions are monitored
by the Audit Committee.
Internal Controls
The Board of Directors are responsible for
the Internal Controls of the CRC. The Audit
Committee reviews the adequacy and
effectiveness of the CRC’s internal financial
controls and financial risk management
systems, alongside the compliance
requirements of the HSE, which underpins
this area. If the Committee considers it
necessary, it then makes recommendations
to the Board on the management of
internal financial controls and governance
processes across the CRC. A system of
Internal Controls can only provide reasonable
assurance against material error, it cannot
provide absolute assurance.
delegated to management with particular
responsibility assigned to the Head of
Finance and the CEO. The HSE Interim
Administrator’s report of May 2014 found
that “the CRC has sound systems of
financial control in place and no issues of
concern have been identified…” Although
the Directors have no reason to believe that
internal controls within CRC are ineffective,
it is always prudent to independently test
that such controls are (1) in existence and (2)
operating as intended.
As noted above a programme of internal
audit commenced at the end of 2015
and this continued in 2016 and 2017. The
internal audit modules, completed during
2017, focused primarily on non-financial
matters. Work continued in 2017 to improve
and strengthen financial processes and
procedures. The Head of Finance completed
a review of the CRC Accounts Department
during 2017. In January 2018 the Head of
Finance prepared an assessment of internal
controls. While this report confirms that
there remains a sound system of financial
controls in place, it did identify areas for
further improvement in future years. As part
of the Internal Audit plan for 2018/2019,
the Board of Directors intend on a follow
up audit of the Internal Controls, to assess
the effectiveness of the improvements
implemented to date, and ensure ongoing
progression is achieved in all areas of internal
control.
The operation of Internal Controls is
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