Consistent with CHE’s Core Values of Stewardship and Integrity, CHE maintains an Internal Audit Function (“IA Function”) that assists CHE in fulfilling its commitment to excellence and accountability by promoting a risk-aware organization and assisting the board of directors in fulfilling its oversight responsibilities and management with respect to CHE’s: (i) system of internal controls; (ii) operating process and practices generally; and (iii) compliance with legal, business ethics and regulatory requirements.

In general, CHE’s IA Function helps manage risk, prioritize goals and activities, eliminate complexity and redundancy, streamline operations, and drive down cost. The IA Function discharges its responsibilities in accordance with the International Standards for the Professional Practice of Internal Auditing that are issued by The Institute of Internal Auditors. The key tenants of CHE’s IA Function are:

• Demonstrate perspective and understanding of, and respect for, the organization, the Regional Health Corporations (RHCs), the audit areas being reviewed and the people responsible for those audit areas;
• Engage in open communications and promulgate a “no surprises” attitude throughout the internal audit process;
• Operate in an open and transparent manner that is inclusive of all key stakeholders;
• Be available, responsive and helpful at all times—internal audit is a resource to all;
• Engage in proactive collaboration and knowledge-sharing with the audit process owners;
• Provide the right experience, industry knowledge, insights and perspective to address specific audit areas as they arise; and
• Exemplify CHE’s Core Values at all times.

The IA Function uses a formal, disciplined approach to developing, planning and executing a risk-based internal annual audit plan that is designed to add value to the organization. The approach is flexible and scalable and all members of the IA Function are trained on this approach.

On an annual basis, the IA Function conducts an enterprise-wide risk assessment for purposes of understanding CHE’s risk profile both at an overall “enterprise” level and at the RHC level. The risk assessment process includes facilitated interviews with key stakeholders, surveys, educational webinars and presentations to various governance committees throughout the organization. The risk assessment is a contributing element to the development of the annual internal audit plan.

Recognizing the shared mission, overall goals and the perceived benefits, the IA Function is closely aligned with the CHE Compliance Function. In addition, both the IA and Compliance Functions work closely with CHE’s financial statement auditor in order to better leverage knowledge, drive efficiencies and identify risks facing CHE.

For more information, please contact Kim Lansford, Vice President of Compliance & Internal Audit at 610-355-2177.