Annual Report 2005 - The Heritage Council

THE HERITAGE COUNCIL
2005 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 four 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 and uses the services of various independent financial
control consultants as and when required to carry out this and report on their findings to Council.
The last consultant was engaged in 2003.
iv) The Heritage Council has adopted the Code of Practice for the Governance of State Bodies and has
adopted 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 did not conduct a review of the effectiveness of the system of internal financial
control during 2005. It is intended that this review would take place during 2006.
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Dr. Tom O’Dwyer
Council Chairperson
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