This extract from the Halma plc 2016 Annual Report & Accounts has not been updated since publication in June 2016.
Internal control statement
The Board's responsibilities
The Board has overall responsibility to the shareholders for the Group’s system of internal control and risk management, and the review of the system’s effectiveness is carried out with the assistance of the Audit Committee. Whilst not providing absolute assurance against material misstatements or loss, this system is designed to identify and manage those risks that could adversely impact the achievement of the Group’s objectives. The Group’s risk management structure and process is detailed on pages 28 and 29 of the Annual Report. The Group’s principal risks and uncertainties are detailed on pages 30 to 33.
The Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Group and for determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives. The Board, advised by the Audit Committee, regularly reviews the process, which has been in place for the year under review and up to the date of approval of the Annual Report and Accounts. This process is in accordance with the Guidance on Risk Management, Internal Control and Related Financial and Business Reporting. The Board has continued to improve and embed controls throughout the Group and will continue to keep the systems under review to ensure that the internal control and risk management framework remains fit for purpose.
Review of internal control effectiveness
The Board regularly reviews the effectiveness of the Group’s risk management and internal control systems, including financial, operational and compliance controls. The review is principally based on reviewing reports from management to consider whether significant risks have been identified, evaluated, managed and controlled. The Group’s external Auditor, Deloitte LLP, has audited the financial statements and has reviewed the financial control systems to the extent considered necessary to support the audit report.