Good corporate governance requires the company to maintain a sound system of internal control to safeguard the Company’s assets and at least annually to conduct a review of the effectiveness of HCVAC's system of internal controls.  The compnay relies on the Audit and Risk Committee to assist this process. The Audit and Risk Committee reviews the process by which risks are identified and assessed and the effectiveness of the system of internal controls, management representations and assertions including reviewing reports on risk management and internal control from the Head of Internal Audit together with any reports from the external auditors on internal control matters noted as part of their work.

The internal control systems have been designed to manage rather than eliminate the risk of failure to achieve business objectives and provide reasonable assurance against material misstatement or loss.

Internal control

The financial control framework includes the following features: an annual strategic planning process; an annual budget; a system of monthly reporting which involves comparison of actual results with the original budget, updating full year forecasts; monthly reporting of performance and the external audit of annual financial statements. 

Internal audit

Internal audit is an important element of the overall process by which each of the Board and EMB obtain the assurance required that risks are being properly identified, managed and controlled. Risk based internal audit plans are approved by the Audit and Risk Committee annually. The Internal Audit function reports to the Chairman of the Audit and Risk Committee.