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THE HERITAGE COUNCIL 2009 FINANCIAL STATEMENTS
STATEMENT ON THE SYSTEM OF INTERNAL FINANCIAL CONTROL
On behalf of the members of Council I wish to acknowledge our responsibility for ensuring that an effective system
of internal financial control is maintained and operated.
The system can only provide reasonable and not absolute assurance that assets are safeguarded, transactions
authorised and properly recorded, and that material errors or irregularities are either prevented or would be
detected within a timely period.
Key Control Procedures
i) The council has taken steps to ensure an appropriate control environment is in place by:
- Agreeing a detailed work programme for each year, monitoring and evaluating progress against the work
programme
- Implementing financial procedures to control the significant financial elements of The Heritage Council’s
business
- Maintaining a comprehensive schedule of insurances to protect The Heritage Council’s interest
- Reviewing and approving all Council policies and procedures
- Establishing an Audit and Finance Committee which regularly reviews the effectiveness of the system of
internal financial control. The Committee selects different areas of Council’s financial activities for detailed
review on a rolling basis, in order to assess the effectiveness of controls in these areas.
- Production of regular management information, segregation of duties and a system of delegation and
accountability
- Compliance with all aspects of Government requirements for public procurement and competitive
tender
- Compliance with Department procedures as regards reporting and draw down of funds
- Immediate and positive response to all items drawn to Council’s attention in management letters from the
Comptroller and Auditor General.
ii) The system of internal financial controls is based on a framework of regular management information, a system
of delegation and accountability, a set of financial procedures, administrative procedures including segregation of
duties, and rigorous checks of the finance function. In particular it includes:
- Restricting authority for authorising disbursement of Council monies to designated officers.
- Modern computerised Financial Accounting, Payroll and Fixed Asset Register software systems to underpin the
internal financial controls of The Heritage Council.
- Detailed procedures for engaging consultants.
iii) The Council has an internal audit programme. The services of various independent financial control consultants
are used as and when required.
iv) The Heritage Council is in the process of adopting the 2009 Code of Practice for the Governance of State Bodies.
The requirements under the Code were discussed at a meeting of the Council held on 4th February, 2010. At this
meeting a list of actions arising from the Code was approved for implementation. The Heritage Council is in the
process of adopting a Code of Business Conduct for directors and employees in accordance with the requirements
of the Code of Practice.
Annual Review of Controls
The Council conducted a full external review of the effectiveness of the system of internal financial control in 2009.
This review was examined by the Council in July, 2009.
Mr. Conor Newman Council Chairperson
THE HERITAGE COUNCIL 2009 ANNUAL REPORT 29