Statement on Internal Controls Assurance

The Board has overall responsibility for risk management at settle and acknowledges its role and responsibility for ensuring that we have in place an effective system of internal control that is appropriate for its operations and for reviewing its effectiveness. The system of internal control is designed to manage, rather than eliminate the risk of failure to achieve business objectives and to provide reasonable, but not absolute, assurance that key business objectives will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial information and the safeguarding of assets.

The process of identifying, evaluating and managing significant risk is ongoing and has been in place throughout the period of this Financial Statement. In meeting its responsibilities, the Board has adopted a risk-based approach to internal controls, which is embedded within normal management and governance processes. This approach includes the regular evaluation of the nature and extent of risks.

Whilst the Board has ultimate responsibility for the system of internal control it has delegated authority to the Audit and Risk Committee to regularly review its effectiveness. It does this by reviewing the effectiveness of the systems across the spectrum of the framework and includes, risk registers, internal audit reports, fraud reports, the external audit management letter and specialist reviews.

Key elements of our internal control framework include:

• A formally constituted Board and Committee structure, with approved Rules, terms of reference and scheme of delegation;
• An annual review of compliance with the NHF Code of Governance Review and annual assessment of compliance with the RSH Regulatory Standards to the Board;
• A Code of Conduct for Non-Executive Directors and colleagues in settle, including a Board and Committee Behaviour, Competency and Expertise Framework and Declarations of Interest Policy;
• A comprehensive Non-Executive Director appraisal process and Governance Effectiveness Review. settle commissioned its triannual external effectiveness review at the start of 2024, the results of which will be reported into the 2024/25 financial year. An induction and learning and development programme are in place to ensure Non-Executive Directors remain professionally updated and have the skills to meet the needs of the business.
• Clear responsibilities for the identification, evaluation and control of risk. All Committees and Board consider risks throughout the year. The Chief Executive and the Audit and Risk Committee are responsible for reporting any significant changes to the Board;
• Audit and Risk Committee approved internal audit plan and internal audit reporting at Committee meetings. Our Internal Auditors RSM completed eight audits this financial year, including three advisory audits, and assurance levels for four concluding reasonable assurance and one concluding substantial assurance. The Board receive an annual Internal Audit report from RSM. Following a re-tendering exercise, on expiration of RSM’s contract in November 2023, the Committee also recommended the appointment of new internal Auditors, Beevers & Struthers, commenced working with settle in January 2024. Beevers & Struthers and a new Internal Audit strategy 2024-2027 and an Annual Internal Audit Plan 2024 have been agreed.
• Regular reporting by the appropriate committee or the Board of risk information;
• Quarterly directorate specific internal Control and Risk Assurance Statements, completed by the senior leadership team and reported to the Audit and Risk Committee;