Page 22 - NEHA Annual Report 2023

OUR DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The board has established six sub-committees to assist it in carrying out its responsibilities. They are:
• Risk & Governance
• Finance, Investment & Audit
• Development & Property Services
• Tenant Services & Engagement
• People Resource
• Collaboration
Each committee has clear terms of reference which are reviewed biennially to ensure they are fit for purpose. The board is provided with regular reports regarding committee activities, findings and recommendations. The board and the committees are supported by a suite of policies and procedures which provide a formal, structured framework for decision-making. These are regularly reviewed and updated.
INTERNAL FINANCIAL CONTROLS ASSURANCE
The board acknowledges its ultimate responsibility for ensuring that the association has in place a system of internal financial controls that are appropriate to the business environment in which it operates. This is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.
These internal financial controls address key business, treasury and financial risks and are monitored by the CEO and CFO. They comprise:
• A clear organisational structure and well-defined management responsibilities
• Comprehensive budgeting systems with an annual budget that is approved by the
board
• Regular review of actual results compared to budgets
• Defined investment control policies approved by the board
• Clearly defined risk protocols and appetite approved by the board and monitored
by the Risk & Governance Committee
• External statutory auditor review and test the systems of internal financial control
and the data contained in those statements to the extent necessary to express their audit opinion.
The board operates a risk mapping process both at a strategic level and with all our business operations and this is reviewed by the association’s Risk & Governance Committee. New risks are reviewed by the committee and approved by the board and a deep dive into the risk register is conducted on an annual basis.
The association engages a firm of chartered accountants independent of the external statutory auditor to conduct regular internal audit reviews of the company’s activities under the direction of the Finance, Investment & Audit Committee.
20 Annual Report 2023