Trust Board papers November 2012 - Barking Havering and ...

PRINCIPAL RISK
What could prevent the objective being
achieved
Risk no, Date on Risk Register
& Risk Scoring:
KEY EXISTING CONTROLS
What controls/systems are in
place to assist in securing delivery
of objective and managing
principle risks?
CQC REF:
RESIDUAL RISK
ASSURANCES ON
CONTROLS & IMPACT
Where we gain evidence
that our controls/systems, on
which we are placing
reliance, are effective? The
impact following assurances.
PROGRESS AGAINST
RISKS/ ACTION
PLAN UPDATE
What Actions are undertaken to
mitigate the actual risks?
GAPS IN ASSURANCE
Where we are failing to gain
evidence that our controls /
systems, on which we place
reliance, are effective
GAPS IN
CONTROL
Where are we
failing to put
controls / systems
in place? Where are
we failing in making
them effective?
LEAD
Principal Objective: Meet our in-year financial targets (including net I&E surplus, liquidity, productivity)
Risk no: 104 Failure in
financial management and
budgetary control including
expenditure restrictions,
leading to reputational
damage.
Date on Register: 18.01.2008
Rating Scoring: Impact 4 x
Likelihood:5 = 20
Area: Trust
Impact on:
Patient: Cash shortfalls may lead
to suppliers suspending deliveries
Staff: Cash shortfalls may lead to
delays in payroll
Trust: Financial Risks
Details updated 24.10.12
8.10.12
- Monthly budget statements,
Business Unit financial reports,
Trust financial reports
- Monthly Business Unit
performance review meetings
(including CIP) to review key
financial risks & agree
mitigating actions.
- Budget training provided to
budget holders (April-June)
- CIP governance
arrangements – Work-stream
Accountability review
meetings; weekly pay controls;
weekly vacancy controls;
Transformation Board.
- Non-pay expenditure and
capital expenditure restrictions
in place
4 6 16
Extreme Red
8.10.12
- Internal Audit of
Financial Management
arrangements - limited
assurance given
8.10.12
- Actions have been agreed
through monthly Business Unit
performance review meetings
to address adverse variances,
including CIP
- Actions being progressed
via CIP Accountability
meetings with work-stream
leads to implement further
savings
- Further discussions with
budget holders to resolve
outstanding budget ownership
issues
- Ongoing discussions with
commissioners regarding
transitional funding
24.10.12: This risk is
currently being reviewed
and will be updated as soon
as we have concluded our
conversations with
commissioners.
8.10.12
- Ownership of budgets
by budget holders
remains a key issue, as
identified by the Internal
Audit report.
- Significant risk of c.
£13m in achieving I&E
control total of £40m,
primarily related to high
risk CIPs £6.3m,
unidentified CIP £5.4m
and transitional funding
risk of £4.3m
Mitigation plan
being drawn up
but at significant
risk
CIP non-delivery
by issue
David Gilburt Finance Director / Alan Davies Deputy Director of Finance
No significant change except risk
descriptor has been changed.
*All financial risks will be reviewed
by the newly appointed Finance
Director
BHRUT BAF 2nd Quarter 2012: SB/PS
15