Risk management (RMCLHN. Annual Report 2020-21)
Risk and audit at a glance
The RMCLHN Governing Board has an Audit and Risk Committee with an independent external Chairperson to assist the Governing Board fulfil its responsibilities regarding risk management, audit and assurance.
The Audit and Risk Committee meets quarterly and receives regular risk reports from RMCLHN as well as audit reports conducted by the Auditor-General’s office, Department for Health and Wellbeing, and Internal Audits by the RSS.
RMCLHN has a Risk Management Framework which is consistent with the System-Wide Risk Management Policy Directive, providing staff with specific guidance on context, identification, analysis, evaluation, treatment, monitoring and communication of risk.
A consistent Internal Audit Charter has been developed by the RSS and endorsed by all regional LHNs enabling the internal audit function to be delivered by the RSS. The Charter provides guidance and authority for audit activities.
Fraud detected in the agency
Employee claimed hours on timesheet not worked — 1
NB: Fraud reported includes actual and reasonably suspected incidents of fraud.
Strategies implemented to control and prevent fraud
The RMCLHN Governing Board has an Audit and Risk Committee and a Finance Committee to ensure oversight of operational processes relating to risk of fraud. These committees meet on a regular basis and review reports regarding financial management, breaches and risk management. The Chair of the RMCLHN Audit and Risk Committee is an independent member and also liaises with SA Health’s Group Director Risk and Assurance Services.
The terms of reference for these sub-committees include:
- Advise on the adequacy of the financial statements and the appropriateness of the accounting practices used.
- Monitor RMCLHN’s compliance with its obligation to establish and maintain an internal control structure and systems of risk management, including whether RMCLHN has appropriate policies and procedures in place and is complying with them.
- Monitor and advise the Board on the internal audit function in line with the requirements of relevant legislation.
- Oversee RMCLHN’s liaison with the South Australian Auditor-General’s Department in relation to RMCLHN’s proposed audit strategies and plans including compliance to any performance management audits undertaken.
- Assess external audit reports of RMCLHN and the adequacy of actions taken by RMCLHN as a result of the reports.
- Monitor the adequacy of RMCLHN’s management of legal and compliance risks and internal compliance systems, including the effectiveness of the systems in monitoring compliance by RMCLHN with relevant laws and government policies.
- Assess RMCLHN’s complex or unusual transactions or series of transactions or any material deviation from RMCLHN’s budget.
- Monitor the financial performance of RMCLHN.
- Assess key performance and financial risks and review proposed mitigation strategies.
- Provide the Governing Board with advice and recommendations on monitoring and assessment.
- Review the efficiency and effectiveness of the organisation in meeting its accountabilities as prescribed in the annual Service Agreement, including delivering against its strategies and objectives.
An annual financial controls self-assessment review was undertaken to ensure that controls are in place to avoid fraud.
The RMCLHN Governing Board endorses all Policy Directives relating to SA Heath and the RMCLHN has implemented a Policy and Procedure Framework to ensure policies and procedures are reviewed and implemented through operational committees and structures. The SA Health Corruption Control Policy and Public Interest Disclosure Policy Directives are followed relating to risk of fraud. Any allegations of fraud, including financial delegation breaches, are reported to the Governing Board and Audit and Risk Committee. Shared Services SA provide a report to the RMCLHN Chief Finance Officer providing details of any expenditure that has occurred outside of procurement and approved delegations. These breaches are reviewed and reported to the Board.
All Governing Board members and staff with financial delegations are required to declare any actual, potential or perceived conflict of interest, and the register of interests is reviewed regularly by the Audit and Risk Committee. The Board register is a standing item at Board Meetings.
The RMCLHN Governing Board ensure that all employees complete SA Public Sector Code of Ethics training at orientation sessions.
Public interest disclosure
Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018 was 0
Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.