Arhag Annual Report 2019/2020

The Board has overall responsibility for establishing and maintaining the whole system of internal control and reviewing its effectiveness. The Board recognises that such a system can provide only reasonable and not absolute assurance against material misstatements or loss or eliminate all risks of failure to achieve business objectives. The system of internal controls in Arhag undergoes regular reviews as part of the process of continuous improvement to manage key risks and to provide reasonable assurance that planned business objectives and outcomes are achieved. In the year under review Arhag has introduced several improvements to its internal controls framework which confirms sufficient evidence of systems of internal controls in place. In meeting its responsibilities the Board has adopted a risk-based approach to internal controls which are embedded within the normal management and governance process. This approach includes the regular evaluation of the nature and extent of risks to which the Association is exposed. This approach is consistent with best practice. The Board has delegated the responsibility for managing internal controls to the Audit and Risk Committee. This responsibility is reflected within its terms of reference. The Board has established a business planning, risk and control framework. INTERNAL CONTROLS “Arhag has introduced several improvements to its internal controls frameworkwhich confirms sufficient evidence of systems of internal controls in place.” 26 Arhag