Statement of Internal Control 1. Introduction In accordance with the terms of reference and the best practice referred to in the Welsh Government’s Housing Association Circular RSL 02/10 Internal controls and reporting, the Deputy Chief Executive on behalf of the Audit & Risk Committee presents an annual report to the Board covering the period from 1 April 2020 to 31 March 2021. The purpose of this report is to record an assessment of the adequacy and effectiveness of the Association’s system of internal control during this period.
2. Internal Control framework
2.1 In accordance with the Welsh Government’s Housing Association Circular RSL 02/10 Internal Controls and reporting, the MHA Board acknowledges its responsibilities for the Association’s system of internal control and for reviewing their effectiveness. The Board also acknowledges its responsibility for the wider aspects of risk management. 2.2 The Association’s systems are 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, regarding the safeguarding of assets, the maintenance of proper accounting records, the reliability of financial information and the management of risks, any of which could adversely affect the Association’s ability to achieve its Business Plan objectives. 2.3 The following mechanisms constitute the key elements of the framework designed and implemented by management to provide effective internal control in key areas of the business.
2.4 The Internal Controls are categorised under the 6 risk pillars:
Delivery • Policies & Procedures in place to manuals for staff which are regularly reviewed & updated • Performance management information presented to SMT, Committees and Board • Anti-Fraud, Theft and Corruption policy • Emergency plans which are tested and reviewed by external consultants
Governance and Regulation • An established programme of external audit activities derived from an assessment of key business risks • An established programme of internal audit activities from an assessment of the key financial risks • The Audit Committee review and monitor reports from management, from Internal Audit and from External Audit to provide reasonable assurance that control procedures are in place and are being followed • The following table provides details of the internal audit completed for the 2020/21 period together with the assurance rating in each area:
Audit area
Assurance Level
Asbestos management Risk management Business continuity Responsive repairs Fire safety Development Governance
Substantial Adequate Needs improvement Adequate Adequate Substantial Substantial
Annual Accounts 2020-21 33
