Annual Report and Accounts 2009-10 - Welfare Reform impact ...

Statement on Internal Control
for the year ended 31 March 2010
Scope of responsibility
As Accounting Officer for the Independent Living Fund (2006) (the ILF),
I have responsibility for maintaining a sound system of internal control
that supports the achievement of its policies, aims and objectives, whilst
safeguarding the public funds and assets for which I am personally
responsible, in accordance with the responsibilities assigned to me in
Managing Public Money, the Management Statement, Trust Deed and
Conditions of Grant Agreement for the ILF, and the letter of delegation
received from the Principal Accounting Officer of the Department for
Work and Pensions (DWP).
Strategic aims and objectives are agreed with the ILF Trustees and with
DWP as the sponsor Department. There is also a meeting twice a year
with the Senior Accounting Officer (SAO) in DWP with responsibility for the
ILF, to discuss ILF issues and address significant risks related to the ILF.
The Board of Trustees also has responsibility for maintaining a sound
system of control to address key financial and other risks, ensuring that
the requirements of the constituting Executive Non-Departmental Public
Body (NDPB) documents are met, that high standards of corporate
governance are demonstrated, and for reviewing the effectiveness of
the internal control system.
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 both departmental and the ILF’s 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. The system of internal control has been in place in the
ILF for the year ended 31 March 2010 and up to the date of approval of
the Annual Report and Accounts, and accords with Treasury guidance.
60 Independent Living Fund (2006)