Board Meeting 28th May 2002

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Board Meeting 28th May 2002 Powered By Docstoc
					Board Meeting
1 March 2007



 PCT GOVERNANCE - BOARD ASSURANCE FRAMEWORK

1. Purpose of the Report

To provide the Board with the latest version of the Board Assurance Framework.



2. Summary

The PCT’s Board Assurance Framework links key risks, performance and
compliance with the achievement of strategic objectives. A detailed Board Assurance
Framework was presented to the Risk Management sub Committee on 25 January
2007 highlighting those key areas of risk impacting on performance and compliance
with the Core Standards for Better Health.



3. Recommendation

For the Board to ensure that these key risks and performance targets that affect the
achievement of strategic objectives are effectively mitigated.



Andrew McGrath
Head of Integrated Governance                                     19 February 2007


List of attachments:

Board Assurance Framework & Process documents




Page 1 of 4                                    PCT Governance - Board Assurance Framework
Document Reference: 07/03/0858                     Oldham PCT Board meeting 1 March 2007
                           Board Assurance Framework

                                     Process

The PCT’s Risk Management Strategy scores risks for Impact (between 1 – 5) and
Likelihood (between 1 – 5), which are then multiplied together to give an overall risk
score. The PCT uses 2 software systems to manage risks, which are;

Performance Accelerator – This system manages the Board Assurance
Framework process and holds strategic risks, risks with a residual score of between
16 – 25, performance targets and audit recommendations which links them to the
achievement of strategic objectives.

Ulysses – This system is used for managing operational risks such as health and
safety and any risks with a residual risk score of less than 16.


Risks on both systems are managed in line with the PCT’s Risk Management
Strategy.

Using the PCT’s integrated governance approach, once a risk has been identified
and assessed, it is allocated a risk Sponsor (usually, but not exclusively, a member
of the PCT’s Executive Team), with the ultimate responsibility for managing the risk,
and a risk Owner, the person best placed within the PCT with the sufficient
knowledge and authority to manage the risk on a day to day basis.

Once a risk has been identified the respective Sponsor and Owner identify actions
and controls. These are then scored for effectiveness. If the residual risk scores
between 16 – 25 then this is entered onto the Board Assurance Framework and is
identified by a red colour in the ‘Residual Risk’ column of the Board Assurance
Framework report.

Risks, and mitigating actions are subject to ongoing monitoring by the respective
Sponsors and Owners ,PCT’s Executive Team, and the Audit Committee in the
following instances:

      Risks that have entered the Board Assurance Framework due the residual
       risk scoring between 16 – 25.
      Risks that have moved off the Board Assurance Framework due the risk being
       more effectively mitigated, for example if agreed audit recommendations are
       fully implemented
      Risks that have remained on the Board Assurance Framework since the last
       report to the Board




Page 2 of 4                                     PCT Governance - Board Assurance Framework
Document Reference: 07/03/0858                      Oldham PCT Board meeting 1 March 2007
Worked example

On the Board Assurance Framework reported to the Board in July 2006 the PCT’s
internal auditors had identified 6 high risk areas relating to the Joint Loan Equipment
Stores and made recommendations for the PCT to implement, which would address
these areas of high risk. These risks would impact on the PCT’s strategic objective
to ‘Develop strengthened clinical services across all provision services for the
population of Oldham’. Through continual Sponsor and Owner management of the
risk, for example by putting actions plans in place to address the recommendations
made, as well as a review by the PCT’s Executive Team in January 2007, the risk
was deemed to be sufficiently controlled to move the risk off the Board Assurance
Framework because the residual risk now scored less than 16, due to the increased
effectiveness of the mitigating actions and controls.

This is an iterative process, for all risks on the Board Assurance Framework, which
has been externally assured by the PCT’s internal and external auditors and the
NHS Litigation Authority.

This process, adopted by Oldham PCT is being benchmarked by other Trusts
nationally as a source of good practice.


Andrew McGrath
Head of Integrated Governance

19.2.07




Page 3 of 4                                      PCT Governance - Board Assurance Framework
Document Reference: 07/03/0858                       Oldham PCT Board meeting 1 March 2007
                                       GLOSSARY OF TERMS


ICATS ................................ Integrated Care and Treatment Centre

CMs .................................... Community Matrons

WIC .................................... Walk In Centre

NPfIT .................................. National Programme for Information Technology

SHA .................................... Strategic Health Authority

ECDL ................................. European Computer Driving License

OTHIS ................................ Oldham and Tameside Health Informatics Service

GMSC ................................ Greater Manchester Surgical Centre

GP ...................................... General Practitioner

PBC .................................... Practice Based Commissioning

C&B .................................... Choose and Book

SLAs .................................. Service Level Agreements

DoH .................................... Department of Health

LIFT .................................... Local Improvement Finance Trust

RDS.................................... Room Data Sheet

WDP................................... Works Delivery Plan

KPMG ................................ (external auditors)

ISIP .................................... Integrated Service Improvement Plan




Page 4 of 4                                                      PCT Governance - Board Assurance Framework
Document Reference: 07/03/0858                                       Oldham PCT Board meeting 1 March 2007

				
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