Ms Laverne McGuinness:

I will give an example. St. James’s Hospital has its own board, its own financial systems and data. It uses SAP financial software. Its accounts are audited independently every year. It has its own internal audit function as well because it is also required to have a system of internal controls in place that satisfies it and its board that its accounts are as accurate as possible, and to detect any error or fraud, as is required by our financial regulations. Likewise, it is required to have its accounts signed off by an auditor who has formed a view that the accounts are true and fair. The HSE has an arrangement with the section 38 agency set out in the service level arrangement asking whether it has complied with all the financial regulations it should have complied with to reassure us about the money we provide.