As a Community Interest Company, Bromley Healthcare must file annual accounts and returns at Companies House.
Here we present Bromley Healthcare’s Financial Account for the financial year 2017-18:
In 2018 KPMG undertook an audit of our organisation. Here’s what they had to say in their Executive Summary:
“We have reviewed and tested the processes and controls in relation to accounts receivable and income, non-pay expenditure, treasury, and the general ledger, and have given these areas an assurance rating of SIGNIFICANT ASSURANCE WITH MINOR IMPROVEMENT OPPORTUNITIES (AMBER–GREEN). This is consistent with management’s expectation.
Process and controls around accounts receivable and income are well designed and controlled, in particular in relation to contracted income, which is monitored and invoiced through the use of a tracker. We found this to be easy for staff to use and a very efficient way of controlling this income. All invoices sampled were reviewed before issue, helping ensure that they are accurate, which ultimately assists in swifter debt collection and improved customer relationships. Credit notes and ad hoc income are also well managed. We reviewed bad debts, which apart from a known issue with one organisation, are well controlled and we did not identify any areas of concern.
Through our non-pay expenditure work, we reviewed processes and conducted testing controls in place over purchase order (PO) expenditure, non-PO expenditure, payment runs, and urgent or irregular payments. We sample tested these areas, and found all necessary approvals had been sought and segregation of duties has been appropriately maintained. This helps to ensure that the risk of financial loss through expenditure is minimal.
Treasury management is generally functioning well, with bank reconciliations conducted thoroughly and on a timely basis. The bank mandate was also found to be up-to-date and appropriate, in terms of the signatories included. However, we are raising a recommendation in relation to the documented review of bank reconciliations (and other control account reconciliations).
General ledger controls were reviewed including additions and removals of staff access to the GL system, control account reconciliations and journal approvals. All journals sampled were approved by someone from the finance team within their authorisation thresholds, although we did find some ‘cyclical’ reviewing, whereby the same individuals often reviewed and approved each other’s postings. Through our testing, we discovered that there is currently no control in place to ensure agency workers are removed from Oracle on a timely basis, which could open up BHC to a risk of financial loss. We have raised one recommendation to this end however this is a low priority recommendation as we note that it is only in exceptional circumstances that agency staff are given access to Oracle and therefore this limits the risk of financial loss.
We have also raised two best practice points to recommend that the Company’s Standing Financial Instructions include all necessary information as well as ensuring that ad hoc income is controlled and monitored as well as regular income.”