AnnuAl Accounts - Regulation and Quality Improvement Authority

Statement on Internal Control
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Scope of responsibility
As Accountable Officer, I have responsibility for
maintaining a sound system of internal control that
supports the achievement of the HPSS Regulation and
Improvement Authority policies, aims and objectives,
whilst safeguarding the public funds and departmental
assets for which I am personally responsible, in
accordance with the responsibilities assigned to me in
Government Accounting Northern Ireland.
The accountability arrangements in respect of the
relationship between the Authority and the Department
are to be set out in a Management Statement and
Financial Memorandum which is to be issued by the
Department and agreed with the Authority.
The purpose of the system of
internal control
The system of internal control is designed to manage risk
to a reasonable level rather than to eliminate all risk of
failure to achieve policies, aims and objectives; it can
therefore only provide reasonable and not absolute
assurance of effectiveness. The system of internal control
is based on an ongoing process designed to identify
and prioritise the risks to the achievement of
departmental policies, aims and objectives, to evaluate
the likelihood of those risks being realised and the
impact should they be realised, and to manage them
efficiently, effectively and economically. In the
circumstances of the Authority being in the first few
months of its existence, the system of internal control is in
the process of being put in place and shall accord with
DFP guidance. It is expected that the risk and control
framework should be substantially completed during the
next financial year with control measures being
implemented in accordance with perceived priorities. At
this stage it is expected that the procedures should be in
place to fully comply with DFP guidance during 2006/07.
Capacity to handle risk
Leadership is to be provided to the risk management
process through the Board and Audit Committee with
specific responsibility for the oversight of agreed
measures undertaken by officers being given to a
Governance and Risk Management Sub-Committee of
the Audit Committee.
Guidance on best practice is to be sought from the
Department’s Governance and Risk Management
Advisor. Staff shall be trained to identify and manage risk
in an appropriate fashion according to their duties and
responsibilities.
The risk and control framework
A risk management strategy is to be developed. Senior
managers will identify and evaluate the principal risks
that could adversely affect the achievement of the
objectives of the organisation. The controls assurance
standards issued by DHSSPS which are applicable to the
Authority will be reviewed and compliance with them
evaluated against the criteria. These measures will enable
a risk register to be compiled and action plans drawn up
to implement any controls necessary to mitigate
avoidable risk and ensure compliance with the standards.
Risk management will be embedded in the activities of
the Authority. Executive responsibility for risk management
lies with the Chief Executive who delegates day-to-day
responsibility to the Director of Corporate Services. The
Senior Management Team shall address risk
management issues as part of the business of its regular
periodic meetings. An officer is to be nominated to
oversee the operational aspects of risk management
and to co-ordinate updates on risk management
measures to the Governance and Risk Management
Sub-Committee of the Audit Committee. Appropriate
Service Level Agreements are being drawn up with the
Central Services Agency which is the provider of human
resources, finance, legal and procurement services to
the Authority. Arrangements will be made to manage risk
in these out-sourced services.
Review of effectiveness
As Accountable Officer, I have responsibility for reviewing
the effectiveness of the system of internal control. During
the financial year to 31 March 2005 in the initial stages
of setting up the organisation, the administrative
functions had not been developed to any significant
extent. Henceforward, my review of the effectiveness of
the system of internal control shall be informed by the
work of the internal auditors and the executive managers
who have responsibility for the development and
maintenance of the internal control framework, and
comments made by the external auditors in their
RQIA Annual Report & Accounts 2004/2005