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The Committee discussed the approach taken by the During 2017/18 the Committee considered:
Trust in relation to income recognition. The Trust has
• The request for re-appointment of Non-Executive
robust processes in place which ensure that income
Director Anita Marsland for a second three year term.
is actively monitored and debtors are followed up
on a timely basis. The Trust also acknowledges that • A further twelve month extension for Non-Executive
there is no specific risk in relation to fraudulent income Director Steve Igoe.
recognition.
• A further twelve month extension for Non-Executive
Director Ian Quinlan.
The Committee discussed the approach taken by
the Trust in relation to valuation of land and buildings. • A further twelve month extension for the Trust
Chairman Sir David Henshaw.
The Trust has robust processes in place to assess for
impairments and appropriate valuation arrangements.
These extensions were based on the need for

The Committee also discussed the significant continuity and stability on the Board coupled with
transaction risk in relation to management override of strong track record of performance.
controls and is satisfied that there are no issues arising
from the work of internal audit that would suggest that • The Appointments and Remuneration Committee
this could lead to a material misstatement within the of the Board of Directors is responsible for the
accounts. appointment of Executive Directors. It is chaired by
the Trust Chair; other members are a minimum of
The Audit Committee contributed to the risk three other Non-Executives and the Chief Executive,
assessment to inform and subsequently approve the as appropriate to the post under consideration.
content of the Internal Audit Plan for 2017/18. This plan During 2017/18 the Committee substantively
was structured to provide the Director of Audit Opinion appointed Mark Flannagan as the Trust’s Director of
which gives an assessment of the: Communications, Dani Jones as Director of Strategy
• design and operation of the underpinning Assurance and Adam Bateman as Chief Operating Officer.
Framework and supporting processes;
• range of individual opinions arising from risk-based REGULATORY RATINGS
audit assignments contained within internal audit
risk-based plans that have been reported throughout
the year, this assessment has taken account of the NHS IMPROVEMENT’S SINGLE
relative materiality of these areas and management’s OVERSIGHT FRAMEWORK
progress in respect of addressing control
weaknesses; and NHS Improvement’s Single Oversight Framework
• effectiveness of the overall governance and provides the framework for maintaining providers’
assurance processes operating within the Trust. performance and identifying potential support needs.
The framework looks at five themes:
The key conclusion from their work for 2017/18 as
provided in the Director of Audit Opinion and Annual • Quality of care
Report was that ‘Substantial Assurance’, can be given • Finance and use of resources
that there is a good system of internal control designed
to meet the organisation’s objectives, and that controls • Operational performance
are generally being applied consistently. • Strategic change

NOMINATIONS COMMITTEES • Leadership and improvement capability (well-led)

Based on information from these themes, providers
The Trust has established a separate Nominations
are segmented from 1 to 4 where ‘4’ reflects providers
Committees to oversee the appointment of Executive
receiving the most support and ‘1’ reflects providers
and Non-Executive Directors.
with maximum autonomy. A foundation trust will only
• The Nominations Committee of the Council of be in segments 3 or 4 where it has been found to be in
Governors is responsible for the appointment and breach or suspected breach of its Licence.
removal of Non-Executive Directors. It is chaired
by the Trust Chair apart from when it is concerned
with the appointment or re-appointment of the Trust
Chair. Other members of the Committee are Barbara
Murray, Kate Jackson, Glenna Smith and Louise
Shepherd.

Alder Hey Children’s NHS Foundation Trust 67 Annual Report & Accounts 2017/18