FINANCIAL REPORT AND ACCOUNTS 2011 - States Assembly

STATEMENT ON INTERNAL CONTROL FOR THE YEAR ENDED 31 DECEMBER 2011SIGNIFICANT INTERNAL CONTROL ISSUESto the Audit Committee. Any outstanding recommendations are picked up by the external auditors as part ofthe audit for the following year. Reference can be made to the Auditors’ Report in the 2011 Financial Reportand Accounts for further information on the responsibilities of the external auditors.The Comptroller and Auditor General (C&AG):The C&AG examines how public money is spent, and looks at how best value for money can be achieved bymanaging finances to the highest standards. Specifically, the C&AG considers and reports to the States on:(a) the effectiveness of the internal financial controls; (b) economical, effective and efficient use of resources;and (c) the corporate governance arrangements. In each case, the Comptroller makes recommendationsto bring about any necessary improvement. Reports published during 2011 include ‘Jersey International AirDisplay Relationship with the States’ (February 2011), ‘The States’ Management of Remuneration For SeniorPosts‘ (March 2011) and ‘Management of Bus Contracts’ (July 2011),Public Accounts Committee (PAC):The role of the PAC is to improve the efficiency and effectiveness of States departments by examiningaudit reports, investigating the use of resources and public funds, and by challenging the adequacy ofthe corporate governance arrangements. The PAC also reports directly to the States Assembly. Reportspublished in 2011 include ‘The States Control of Senior Management Remuneration – Report’ (May 2011) and‘Report on the Accounts of the States of Jersey for the year ended 31st December 2010’ (November 2011).Scrutiny panelsThe role of the Scrutiny panels is to protect the public interest by examining policy decisions. ScrutinyReports acknowledge good practice and, where necessary, recommend change and improvement toservices or government policies. Scrutiny Reports are followed up by the relevant panel to establish whetherrecommendations have been implemented. Reports published during 2011 range from ‘Lime Grove House:Failure to Complete Transaction’ (Corporate Services Panel, September 2011) to ‘Social Housing WaitingLists’ (Health, Social Security and Housing Panel, August 2011).Departmental processesAccounting Officers also rely on mechanisms implemented at departmental level to gain comfort overthe effectiveness of internal control within their department, including compliance/sample testing, internalreviews by Senior Management teams, external reviews, dedicated compliance teams, and the completion ofAssurance Statements by key budget holders.5.6 Significant internal control issuesThe Treasurer of the States has determined the most significant internal control issues to include in thisStatement on Internal Control, based on her awareness of the major issues facing the organisation. Thesignificant issues that have arisen in 2011 are shown in Table (2) below.55