Financial Statements 2018/19


Review of operations


Corporate governance continued


The Board of Governors has delegated the day to day responsibility to the Vice-Chancellor, as Accountable Officer, for reviewing the adequacy of the system of internal control and making any appropriate amendments.


He is also responsible for reporting to the Board of Governors any material weaknesses or breakdowns in internal control.


The following processes are in place to ensure the effectiveness of the University’s internal control and risk management:


— The Board of Governors meets six times a year to consider the plans and strategic direction of the institution. It is advised by its key committees, receiving regular reports from each committee and other reports from management as required. In addition the Board of Governors holds two away days each year to discuss the strategic plan in greater detail. The assumptions and aims are reviewed against domestic demand, international demand, funding and research and business development.


The Board of Governors ensures that its meeting calendar enables risk management and internal control to be considered on a regular basis during the year. Its review of the effectiveness of the system of internal control is informed by the work of the internal auditors who operate to the standards defined in the Office for Students guidance of audit practice:


— The Executive team receives reports setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms which are embedded within the operational units. The Executive team also ensures that the University is meeting its many statutory and regulatory compliance obligations and provides reports to the Board of Governors as required.


— The Executive team and the Audit and Risk Committee also receive regular reports from internal auditors, who provide independent opinion on the adequacy and effectiveness of the University’s system of internal control, together with recommendations for improvement. The Audit and Risk Committee’s role in this area is to conduct a high level review of the arrangements for internal financial control.


— The Internal Auditors provide the Board of Governors with an independent opinion each year on the adequacy and effectiveness of the University’s risk management, control and governance processes.


— The Internal Controls Committee is responsible for overseeing an assessment of the effectiveness of internal control on a rolling basis and provides periodic reports to the Governors through the Audit and Risk Committee. The Committee identifies and evaluates the key controls required for significant risks faced by the University and to consider a risk-based assessment of effectiveness.


— An organisation-wide risk register is maintained and is available on the University’s intranet. The register is reviewed and updated regularly, and management report on the actions taken to mitigate risks. The register and strategic plan are cross-referenced to each other as an additional mechanism for the identification of risks.


— Departmental plans report on the local management of corporate risks, identify risks at an operational level and include plans for the mitigation of these risks.


— In accordance with our Risk Management Policy, the Strategic Risk Register undergoes a comprehensive annual review. The purpose of this review is to ensure that our strategic risks continue to be articulated appropriately in light of progress during Strategy implementation.


— Monthly management accounts are presented to the Finance Committee and governors. The annual budget and financial forecasts are presented to the Finance committee ahead of formal approval by the Board of Governors.


The Board of Governors is of the view that there is an ongoing process for identifying, evaluating and managing the University’s significant risks, that it has been in place for the year ended 31 July 2019 and up to the date of approval of the annual accounts, and that it is regularly reviewed by the Board.


These processes enable the University to identify those elements of internal control which require further strengthening and these reviews have not identified any significant area of internal control weakness for the University.


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Middlesex University


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