Internal control

Internal control

The Directors acknowledge that they have overall responsibility for the Group systems of internal control and for reviewing the effectiveness of these controls.
The Board has taken into account the relevant provisions of the Code, the Turnbull report and the Listing Rules and an ongoing process has been established for identifying, managing and evaluating the risks faced by the Group.
The systems are designed to manage rather than eliminate risk of failure to achieve the Group’s objectives.  The systems provide reasonable, not absolute, assurances against material mis-statement or loss.  Such systems are reviewed by the Board to deal with changing circumstances.
The Group does not have an internal audit function, although this is continually under review by the Board and Audit Committee.  The Board is presently of the view that having reviewed considered the current control environment it is still adequate given the Group’s size and range of businesses.
The Group has a Group finance function that reports to the Group Finance Director and is independent of the business units to ensure objectivity and control when preparing Group financial information.
The Group finance function undertakes financial reviews of the regional finance functions on an ad hoc basis and provides technical and commercial support when required.

Assessment of Business Risk

A system of business risk identification, assessment and evaluation has been in place during the year within the management process throughout the Group through a formal risk management framework led by the Group Director of Risk Management. The Board regularly reviews strategic risks.

Control Environment

The Group's operating procedures include a comprehensive system for reporting financial and non-financial information to the Board, including:

  • The definition of authorisation limits, both financial and otherwise. Detailed appraisal documents are produced for any major capital requests;
  • A review of annual budgets and forecasts against this budget that are produced at least twice a year;
  • A review of monthly management accounts at Group and operational level, including financial performance, together with balance sheet and cash flow analysis which are reported against budgets, forecasts and prior year, with major variances explained; and
  • A risk management report for each Board meeting, focusing on any new risks arising and management of existing risks.

On an annual basis the Group finance function undertakes a review of financial controls as part of its year end process, which is considered by the Board. The annual review gives a comprehensive update on the previous year’s report and outlines actions taken to redress any weaknesses in each regional business and across Group functions. The review also highlighted areas where improved controls have been implemented and key actions to be addressed in the coming financial year, which are monitored by both the Board and the Audit Committee.

Control Procedures

Detailed operational procedures that embody key controls have been developed for each of the Group's businesses. The implications of change in law and regulations are taken into account within those procedures.

Monitoring Process

There are clear procedures for monitoring the system of key controls. The significant components are:

  • Cyclical and random reviews of operational and financial controls by the Director of Risk Management, the Group’s Quality Managers, the Head of IT, Senior Finance Managers and reviews by the Group Finance team
  • Review by the Audit Committee of the process for identifying and assessing risks and of the effectiveness of controls via the work of external audit and direct access to Group and Operational Management.

The Board confirms that it has considered the effectiveness of the Group’s system of internal controls described above for the financial year.

Compliance Statement

The Company applied all of the principles set out in the code for the period under review and has throughout the year complied with the detailed provisions set out therein. The Company’s auditors, KPMG Audit plc, are required to review whether the above statement reflects the Company’s compliance with the provisions of the Code specified for its review by the Listing Rules of the UK Listing Authority and to report if it does not reflect such compliance. No such report has been made.

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Synergy Health Europe/Middle East Head Office

Synergy Health Nederland B.V., Fokkerstraat 574
3125 BE Schiedam, The Netherlands
Postbus 109, 3100 AC
Schiedam, The Netherlands

Telephone:+31 (0) 10 232 26 66


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