Page 85 - ar2010

Ongoing monitoring of internal control effectiveness is appropriately and suffciently done through not only normal daily supervision by immediate supervisors, but also by the Internal Auditors and Quality Auditors, who make both scheduled and surprised audit visits to ensure compliance. Any discrepancy and irregularity will be reported to the Management for correction and improvement. The Management also monitors the performance of the hospitals and companies through regular meetings and reports.

All hospitals certifed with the MSQH accreditation have to undergo stringent surveillance audit by the respective surveyors and audit teams to ensure compliance. Standard set by MSQH place emphasis on patient safety and infection control issues.

For those certifed with MS ISO 9001:2000 certifcations, the audit team will ensure the hospitals comply with their own standards based on certain generic elements. As such, the audit will focus on documentation and work process.

The Group’s Internal Auditors also visits the hospitals from time to time to monitor and evaluate their activities and performance and report back to the Audit Committee quarterly.

As mentioned above, the Group also monitors the effectiveness of internal controls through Borang Peradaban, the declaration form used by employees to report any defciency or dishonest act directly to the Managing Director of the Group.

For the year 2010, the Group has also introduced an ‘Asset Declaration Form’ for all Managers to monitor their integrity and to curb any fraudulent act.

The Board is of the view that the system of internal controls instituted throughout the Group is sound and effective and provides a level of confdence on which the Board relies for assurance. In the year under review, there was no signifcant control failure or weakness that would result in any material losses, contingencies or uncertainties that would require separate disclosure in the Annual Report. The Board ensures that the internal controls system and the risk management practices of the Group are reviewed regularly to meet the changing and challenging operating environment.

The Board is therefore pleased to disclose that the state of internal controls of the Group is suffcient, appropriate and effective and in line with the Malaysian Code of Corporate Governance and the Statement of Internal Control – Guidance.