Risk management (LCLHN Annual Report 2020-2021)

Risk and audit at a glance

Risk and audit at a glance

The Limestone Coast Local Health Network (LCLHN) has an established Audit and Risk Committee (ARC) who report directly to the Governing Board. The purpose of the ARC is to assist the LCLHN Governing Board (the Board) in fulfilling its oversight responsibilities for the:

• Integrity of the financial statements,
• Compliance with legal and regulatory requirements,
• Independent auditor’s qualification and independence,
• Performance of the internal audit function, and
• Efficient and effective management of all aspects of risk.

The Committee consists of at least two (2), but no more than three (3) members of the Board, and one (1) external qualified member. All Committee members are appointed by the Board. Standing Invitees include selected LCLHN Executive, the Risk Management Consultant, Rural Support Service, the Group Director, Risk and Assurance Services from the Department for Health and Wellbeing (as an independent observer); and a representative from the Auditor-General’s Department.

The Committee meetings are held quarterly. The ARC has approved an annual reporting calendar to ensure that all requirements are overseen as required across the year. These topics are categorised under the following areas of risk: Risk Management, Internal Control, Financial Statements, Compliance Requirements, Internal Audit, External Audit, Audit Reporting Matters, Corruption Control, and Other.

LCLHN have developed and implemented a local Risk Management Procedure 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 Audit Charter has been developed by the RSS and implemented in LCLHN 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

NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

Strategies implemented to control and prevent fraud

The Limestone Coast Local Health Network (LCLHN) Governing Board has an established Audit and Risk Committee and a Finance and Performance Committee to ensure oversight of operational process relating to the risk of fraud. These Committees meet on a regular basis and review reports regarding financial management, breaches and risk management. The Chair of the LCLHN Audit and Risk Committee is a Governing Board member who liaises closely with SA Health’s Group Director Risk & Assurance Services and a representative from the Auditor Generals Department. The Audit and Risk Committee additionally has an external (independent) member as part of the membership and who is a Certified Fraud Examiner.

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 Board by Management. Shared Services SA provide a report to the LCLHN 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 Governing Board. The Audit and Risk Committee’s reporting calendar ensures compliance with Fraud & Corruption policy and procedure and are reviewed on a regular basis.

All Board members and senior management are required to declare any actual, potential or perceived conflict of interest and the register of interest is reviewed regularly.

The Audit and Risk Committee Terms of Reference define the Scope and Function as below:

The Committee will:

• Advise on the adequacy of the financial statements, having regard to the following:
  • the appropriateness of the accounting practices used;
  • compliance with prescribed accounting standards under the Public Finance and Audit Act 1987;
  • external audits of the financial statements; and
• Information provided by LCLHN about the accuracy and completeness of the financial statements.
• Monitor LCLHN’s compliance with its obligation to establish and maintain an internal control structure and systems of risk management, including whether the LCLHN has appropriate policies and procedures in place and is complying with them
• To monitor and advise the Governing Board on the internal audit function in line with the requirements of relevant legislation
• Oversee LCLHN’s liaison with the South Australian Auditor-General’s Department in relation to LCLHN’s proposed audit strategies and plans including compliance to any performance management audits undertake
• Assess external audit reports of LCLHN and the adequacy of actions taken by LCLHN as a result of the reports
• Monitor the adequacy of LCLHN’s management of legal and compliance risks and internal compliance systems, including the effectiveness of the systems in monitoring compliance by LCLHN with relevant laws and government policies
• Undertake any other function given to the Committee by the Governing Board, if the function is not inconsistent with the above

Data for previous years is available at: https://data.sa.gov.au/data/dataset/limestone-coast-local-health-network-lclhn

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: 

Nil disclosures

Data for previous years is available at: https://data.sa.gov.au/data/dataset/limestone-coast-local-health-network-lclhn

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.