Arhag Annual Report 2019/2020

Auditors The Board has implemented the necessary measures so that internal and external auditors are able to access any information they may require so that the audits are carried out in time and with full access to any documentation or explanations as required. The directors do not know of any information which the auditors are unaware of. Risk Management The Board reviews the Association’s financial performance regularly and in light of this, assesses the risks facing the Association through a structured risk management process. We are committed to ensuring that consideration of risks is part of the everyday management process across the organisation and helps to improve our decision making, optimise opportunities, promote innovation, deliver value for money and avoid loss. Our risk register is updated annually and kept under regular review. Sensitivity analysis is carried out on our high-level risks and probability is factored into the financial plan. The risk register is reviewed quarterly by the Senior Management Team (“SMT”) and by the Association’s Audit and Risk Committee. An in- depth review of risk and mitigation is carried out annually at the Board and SMT strategic planning day. This year the Board and the SMT conducted a comprehensive review of our approach to risk management and mitigation, with a specific emphasis on the management of project risk. The Board are continuing to develop the approach towards management by risk, with the implementation of assurance statements from the senior management teams to be able to identify any new areas of risk. Fraud The Board continues to adopt a robust policy covering avoidance, recognition and recording of fraud and this has been regularly communicated to employees. Internal Audit Our internal audit approach is driven from our risk register to ensure all key areas of risk are covered on a regular basis. The Association’s Audit & Risk Committee review all recommendations from the Internal Auditors and monitor the implementation of their recommendations. Policies and Procedures Arhag has a structure of policies and procedures which outline the internal controls. Information and Financial Reporting Systems The Board has reviewed the long- term financial plan, budget, and cashflow, and reviews this position quarterly when they meet. This is all considered along with Arhag’s objectives and outcomes, so that they are carefully considered together. INTERNAL CONTROLS “Audits are carried out in time andwith full access to any documentation or explanations as required.” Annual Report 2019-2020 27