Internal Control

The Directors are responsible for reviewing the effectiveness of the Group’s internal controls on an annual basis. There is an ongoing process to identify, evaluate and manage risk, which has been in place throughout the period and up to date of approval, in accordance with the Turnbull guidance, and it is regularly reviewed by the Board. The system is designed to manage rather than eliminate risk of failure to achieve business objectives. The system includes internal controls covering financial, operational and compliance areas, and risk management. There are limitations in any system of internal control, which can provide reasonable but not absolute assurance with respect to the preparation of financial information, the safeguarding of assets and the possibility of misstatement or loss.

The additional key procedures designed to provide an effective system of internal control are the:

• annual review of the control environment and procedures;
• review and update of the Group’s policy and procedures;
• review of external audit plans;
• review of significant issues arising from the external audit; and
• discussions with management on risk areas identified by the management and the Board.

A risk assessment and review of internal controls was carried out during the year in compliance with the Turnbull guidelines. Risks were categorised by level of impact and likelihood of occurrence and for the high impact and high likelihood risks identified, the associated internal controls were reviewed and approved by the Board.