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Ramsay Health Care Limited Annual Report 2016

Sustainability Central to The Ramsay Way and the Company’s desire to retain its status as one of the world’s most sustainable organisations is its commitment to the environment. The Company has in place an Environmental Sustainability Policy, setting out the principles underpinning the Company’s commitment towards environmental sustainability which are intended to form part of, and to support, all Ramsay activities. The Company’s Environmental Management System (EMS) aims to implement the Policy and procedures developed under it, and to establish individual roles, a reporting structure and a programme for monitoring and auditing performance. The Company has been included in the FTSE4Good Index every year since 2011. The FTSE4Good Index is an international ratings index identifying companies that demonstrate strong environmental, social and governance practices (ESG), measured against globally recognised standards. Inclusion in the 2016 FTSE4Good Index demonstrates the Company’s sustained commitment to global ESG standards. Further details of the Company’s environmental indicators can be found in the Company’s Performance and Sustainability Reports for Australia and the UK, published on the Company’s website (www.ramsayhealth.com/Sustainability/ Environment). The Performance and Sustainability Reports also detail the Company’s performance using indicators of patient safety and quality, workplace health and safety, human resources and governance and social indicators. 15. Financial Reporting Audit Committee The Audit Committee is responsible for assisting the Board in discharging its responsibilities to safeguard the integrity of the Company’s and the Group’s financial reporting and the system of internal control. A key component of the Committee’s role is to provide appropriate advice and recommendations to the Board to assist the Board to fulfil its responsibilities in regard to financial reporting, the internal control environment and audit management across the Group. The Audit Committee Charter, which was reviewed and updated in FY2016, takes into account the roles and responsibilities of the Audit Committee, the Company’s internal audit structure (which has developed in recent years with the appointment of a General Manager - Audit & Risk and an in-house internal audit team) as well as contemporary governance practices. The Audit Committee Charter includes details on the appointment and oversight of the external auditor. The Audit Committee’s current membership, the independence of the members and details of Audit Committee meetings and attendance by each Committee member are set out earlier in this Corporate Governance Statement. Furthermore, the relevant experience and qualifications of the Audit Committee members are set out in the Board of Directors’ section of this Annual Report. Internal Audit The Company has established an Internal Audit function to assist in the management of the Company’s risks. Internal Audit undertakes internal reviews of risk management by conducting a series of audits on the systems, processes and controls within the Company. A risk-based plan is agreed with management and the Audit Committee on annual basis and may include reviews in the areas of financial reporting and management application of accounting policies, asset protection systems and compliance with regulatory regimes, laws and standards. The results of these reviews are reported to the Audit Committee and RMC by the General Manager, Audit & Risk (who is also a member of the RMC). Assurance Prior to the Board’s approval of the Company’s FY2016 financial statements and in accordance with s295A of the Corporations Act 2001 (Cth) and the ASX Recommendations, the Managing Director and the Group Finance Director provided a declaration to the Board that: • in their opinion, the Company’s financial records have been properly maintained and that the financial statements comply with the appropriate accounting standards, give a true and fair view of the financial position and performance of the Company; and • their opinion has been formed on the basis of a sound system of risk management internal control which is operating effectively. A similar declaration was provided by the Managing Director and the Group Finance Director prior to the Board’s approval of the Company’s HY2016 financial information. The Company’s external auditor, Ernst & Young, will again attend the Company’s 2016 AGM and be available to answer shareholder questions concerning the audit of the Company’s FY2016 financial statements. 16. Risk Management The Company has developed a governance structure for oversight of risk whereby material business risks can be identified at an operational level and managed and reported, ultimately to Board level, via the Global Risk Management and Audit Committees. The structure also allows for top-down management of risks identified at Board or Board Committee level. The Company’s system of reporting encompasses both formal and informal channels. 26 RAMSAY HEALTH CARE LIMITED


Ramsay Health Care Limited Annual Report 2016
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