Annual Reports - RTÉ

RADIO TELEFÍS ÉIREANNCorporate Governance (continued)Internal controlThe Authority has overall responsibility forthe Group’s systems of internal control andfor reviewing their effectiveness. Thesesystems are designed to provide reasonablebut not absolute assurance against materialmisstatement or loss.The Authority confirms that an ongoingprocess for identifying, evaluating andmanaging RTÉ’s significant risks hasoperated throughout the year and up to thedate of approval of the financial statements.The key components of the system ofinternal control currently in place are:• A clearly defined organisation structure,with formally defined authority limits andreporting mechanisms to higher levels ofmanagement and to the Authority;• Established procedures to identify, controland report on key risks;• Comprehensive budgeting systems, withannual financial budgets approved by theAuthority;• Timely monthly reporting, with actual resultsreported against budget and considered bythe Authority on a monthly basis; and• Comprehensive policies and proceduresrelating to operational and financialcontrols, including capital expenditure.Large capital projects require the approvalof the Authority.These controls are reviewed systematicallyby internal audit, on a risk based approach.The Authority confirms that, through theAudit Committee, it has conducted a reviewof the effectiveness of the system of internalcontrol up to and including the date ofapproval of the financial statements andreported thereon to the Authority.The process adopted by the Authority toundertake the review of the effectiveness ofthe system of internal controls included:• Consideration of the authority, resourcesand co-ordination of those involvedin the identification, assessment andmanagement of significant risks faced byRTÉ;• Review and consideration of the outputof the risk assessment and managementprocess;• Monitoring of risk reports frommanagement;• Review of the programme of internal auditand consideration of major findings; and• Review of the report of the externalauditors, who, as part of their normalprocedures, test aspects of the systems ofinternal control and report any significantweaknesses to the Audit Committee.Going concernAfter making enquiries, the members of theAuthority have a reasonable expectation thatRTÉ has adequate resources to continue inoperational existence for the foreseeablefuture. For this reason, they continue toadopt the going concern basis in preparingthe financial statements.Emoluments of Authority members 12007 2006€’000 €’000Mary Finan 35 30Emer Finnan 18 17Maria Killian 18 17Patricia King 18 17Ian Malcolm 2 18 17Paddy Marron 18 17Úna Ní Chonaire 2 18 17Joe O’Brien 3 18 17Stephen O’Byrnes 2 18 17Payments to a formerAuthority member 4 - 2179 168Emoluments of Director-General2007 2006€’000 €’000Cathal Goan- Basic salary 283 268- Performance related pay 108 44- Pension contributions 23 22- Other benefits 27 26441 360Performance related pay in 2007 above wasin respect of 2006 performance, in additionto payment under the 2004 – 2006 LongTerm Performance Scheme.Pension benefits earned during the year andtotal accrued pension at 31 December 2007were as follows:€’000Increase in accrued pensionduring 2007 1 4Transfer value of increase 2 68Total accrued pension at year end 3 1321 The increase in accrued pension during the year excludesinflation.2 The transfer value of the increase in accrued pension hasbeen calculated on the basis of actuarial advice. This transfervalue does not represent sums paid or due, but is the amountthat the pension scheme would transfer to another pensionscheme in relation to the benefits accrued in 2007 in theevent of the member leaving service.3 Accrued pension shown is that which would be paid annuallyon normal retirement date, based on service to the end ofthe year.1 All members of the Authority are non-executive.2 In addition to their Authority fees, Stephen O’Byrnes, Úna NíChonaire and Ian Malcolm received immaterial amounts forcontributions to RTÉ programmes.3 In addition to his Authority fees, Joe O’Brien was paid as anemployee of RTÉ.4 Fintan Drury resigned as Chairman with effect from 19January 2006.RTÉ complied with the guidelines coveringthe payment of fees to the Chairpersonsand Directors of State Bodies, issued by theMinister for Finance in July 1992.36