standards. Inclusion in the 2017 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
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 last 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.
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 riskbased
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 Global RMC by the General Manager, Audit & Risk (who is also a
member of the Global RMC).
During FY2017, the Audit Committee commissioned an independent review of the Company’s Internal Audit function. As a result of this
review, enhancements to the Internal Audit function will be made during FY2018.
Prior to the Board’s approval of the Company’s FY2017 financial statements and in accordance with s295A of the Corporations Act 2001 (Cth)
and the ASX Recommendations, the Managing Director and the 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 Finance Director prior to the Board’s approval of the Company’s HY2017
The Company’s external auditor, Ernst & Young, will again attend the Company’s 2017 AGM and be available to answer shareholder questions
concerning the audit of the Company’s FY2017 financial statements.
As part of the Company’s commitment to transparency and being a responsible tax payer, the Board resolved during FY2017 that the
Company would voluntarily disclose against the Australian Board of Taxation’s Voluntary Tax Transparency Code. A copy of the Company’s
Australian Tax Governance Report can be found on the Company’s website (http://www.ramsayhealth.com/Investors/Australian-Tax-
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.
The Board has ultimate responsibility for the oversight of enterprise risk management and satisfying itself that the risk management
framework is sufficiently robust and sound. The Board has allocated responsibility for managing the Company’s risks as follows:
• The Board is responsible for managing strategic and political risks (including those associated with merger and acquisition activity).
• The Audit Committee is responsible for managing direct financial risks to the Company and for matters relating to tax and accounting.
• The Global RMC is responsible for managing all other enterprise risks, with particular focus on clinical, workplace health and safety,
operational technology and environmental risks.
24 RAMSAY HEALTH CARE LIMITED