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BOARD RESPONSIBILITIES
The primary responsibility of the Board is
to ensure the adequacy and integrity of
the Group’s system of internal controls
which cover financial, operational and
compliance controls and risk management.
The principal objective of the internal
controls system is to manage business
risks effectively, enhance the value of
shareholder’s investments and safeguards
all assets. The role of Managing Director
and Management are to assist in the design
and implementation of the Board’s policies
on internal control system, identifying and
evaluating the risks faced by the Group and
formulating related policies and procedures
to manage these risks.
As the internal controls system are
designed to manage and reduce risks
rather than eliminating them, the system
can provide only reasonable assurance
to the Management and the Board of
Directors regarding the achievement of
company objectives through:-
• effectiveness and efficiency of
operations
• reliability of financial reporting
• compliance with applicable laws and
regulations
The likelihood of achievement of the
Group’s objectives is affected by limitations
inherent in any internal control systems.
The Management therefore needs to
consider the cost of implementation of
internal controls against the expected
benefit derived.
The Board still relies on the COSO Internal
Control Framework to ensure an appropriate
and sound system of internal controls,
which encompasses five interrelated
components i.e. the Control Environment,
Risk Assessment Framework, Control
Activities, Information and Communication
and Continuous Monitoring process.
CONTROL ENVIRONMENT
Integrity And Ethical Values
The Management is committed to enforce
ethical behaviour in employees and medical
consultants. At the annual staff assembly
or “Pedoman” (Perhimpunan, Dialog dan
Anugerah Tahunan Anggota Pekerja), all
employees and medical consultants are
reminded of the five Core Values adopted
by the Group, which are Safety, Courtesy,
Integrity, Professionalism and Continuous
Improvement. Employees are reminded to
be more transparent in their conduct to
promote high ethical values. All employees
are encouraged to report directly to the
Managing Director of any misconduct or
unethical behaviour committed by any staff
of the Group through the Borang Peradaban
declaration.
The Group has signed the “Corporate
Integrity Pledge”, introduced by the
Malaysian Institute of Integrity (MII) in
support of the Government efforts to
combat corruption and unethical practices.
COMMITMENT TO COMPETENCE
The Group is committed to improve
the skills and competencies of its
management, medical consultants and
employees through various training
programmes, seminars, workshops and
quality initiatives. Currently, 12 hospitals
in the Group received their accreditation
certification from the Malaysian Society
for Quality in Health (MSQH) for the first,
second, third, fourth and fifth cycles. Two
of the Accredited Hospitals namely KPJ
Seremban Specialist Hospital and KPJ
Ampang Puteri Specialist Hospital have
been certified by the “Joint-Commision
International” with the JCI Accreditation for
three (3) years.
To improve staff competency in delivering
services, the Group allocated 1% of the
remuneration as training cost and each
employee is mandatory to undergo at
least 30 hours of training per year on
work related areas such as customer
services, fire safety and corporate culture,
done either internally or through external
moderators.
5
interrelated
components
which is
Control
Environment
Risk
Assessment
Framework
Control
Activities
Information
and
Communication
Continuous
Monitoring
process
Statement On Internal Control
(Pursuant to Paragraph 15.27(b) of the Bursa Malaysia Listing Requirements)
To promote continuous learning and
upgrading of knowledge, the Group had
sponsored eligible executives to further
their studies in Master in Business
Administration (Healthcare Management).
In 2012, 7 of these executives have
graduated and obtained their MBAs from
the University of East London and University
Technology Malaysia respectively. Nurses
are also encouraged to further their studies
either for the Degree in Nursing or Masters
in Science (Nursing) through collaboration
with foreign universities or to take up post
basic courses in operation theatre, ICU,
CICU, renal and midwifery to enhance
their knowledge and skills. The Group also
organizes the KPJ Medical Conference,
Medical Workshop and Nursing Convention
yearly for the medical consultants, nurses
and allied health staff to deliberate and
discuss medical and clinical issues related
to their practices to promote patient safety
and standardization of practices.
ORGANISATION STRUCTURE
The Group is changing the organization
structure, both at the Corporate level as
well as at the Operational level. Due to the
retirement of Datin Paduka Siti Sa’diah
Sh. Bakir as the Managing Director in
December 2012, Tn. Hj. Amiruddin Abdul
Satar has been appointed as the new
President and Managing Director of the
Group. Datin Paduka Siti Sa’diah Sh. Bakir
has been appointed as the Corporate
Advisor of the Group for two (2) years.
The Managing Director is assisted by three
(3) Vice Presidents (1) for the following
functions:
- Business Operations and Clinical
Services
- Corporate and Finance Services
- Project Management and Biomedical
Services.
The whole hospitals within the Group have
been clustered into five (5) zoning, whereby
one hospital at each cluster will acts as the
holding company of the other hospitals
within the cluster.
Annual Report
2012
KPJ Healthcare Berhad