FINANCIAL REPORT AND ACCOUNTS 2011 - States Assembly

STATEMENT ON INTERNAL CONTROL FOR THE YEAR ENDED 31 DECEMBER 2011SIGNIFICANT INTERNAL CONTROL ISSUESIssue Risk Action(s) and statusJersey Teachers’Superannuation Fund(JTSF) – administrationprocess:The JTSF is currentlyadministered on an AccessDatabase with calculationsperformed using Excelspreadsheets.Staff payments – receipt ofdocumentation:Risk of errorIn progress:The JTSF Management Board has agreed theneed to implement an industry standard pensions’administration system and the inherent controlsand processes that such a system would provide.Discussions have taken place with the chosen supplierto firm up costs and specifications, and a detailedplan is in place to deliver the new system in the fourthquarter of 2012.The appropriatedocumentation in respect ofnew starters and leavers isnot always provided by HRand line management to theCentral Payroll Unit in timefor processing.Employees are not paidcorrectlyIn progress:Procedures in relation to the timely receipt ofinformation from HR and line management havebeen reviewed and strengthened, with timescalesdocumented. HR Managers and Line Managerscontinue to be reminded of the importance of timelyaction of all employee documentation and in particularpayroll documents, together with the timeframe forsubmission of appropriate information.Grants issued by JerseyEnterprise (within EDD) –management of:The management ofgrants awarded by JerseyEnterprise has not alwaysbeen effective.Public funds may not alwaysbe used efficiently andeffectivelyImplemented:A number of policies, procedures and controlshave been revised with a view to clarifying andstrengthening the process, including improvementsto the Financial Direction on the grant application andclaim process which have been agreed with SenatorFerguson as the (then) Chairman of the Chairman’sCommittee.58