The North / South Language Body Annual Report & Accounts 2009

STATEMENT ON INTERNAL FINANCIAL CONTROLResponsibility for the System of Internal Financial ControlAs Chief Executive Officer of Foras na Gaeilge, I acknowledge my responsibility for ensuring that an effective system ofinternal financial control is operated and maintained.The system can only provide reasonable and not absolute assurance that assets are safeguarded, transactions are authorised andproperly recorded and that relevant errors or irregularities are either prevented or would be detected in a timely period.Key Control ProceduresThe system of internal control operated is based on detailed administrative procedures, segregation of duties, specificauthorisations and monthly management review of reports outlining the actual and budgeted results of programmes operated byForas na Gaeilge. In particular, it includes:• An established organisation structure with clearly defined lines of responsibility;• The Programme Manager for Finance and Information Technology is a qualified accountant who is responsible for thefinancial procedures of the organisation and who reports to the Director of Corporate Services;• A professionally qualified Internal Auditor who monitors compliance with policies and procedures and theeffectiveness of internal controls within the Organisation. The internal auditor reports simultaneously to the Chairmanof the Audit Committee and the Chief Executive Officer;• An Audit Committee consisting of three Board members (one of whom acts as Chairperson), and two externalappointees which meets approximately six times each year to review the internal auditor’s reports;• The implementation of a comprehensive budgeting system, with bespoke software designed to monitor grantexpenditure. The Corporate Services Directorate carries out monthly reviews of all budgets. All budgets are reviewedand agreed by the Board at each meeting.;• A review by the internal auditor of the recommended accounting structure for Colmcille’s transactions, on its transferto Foras na Gaeilge and to Bòrd na Gàidhlig on 1 April 2009.Annual Review of ControlsForas na Gaeilge is committed to operating an efficient, effective and economic internal control system. A review of the internalstructures of the organization and of the effectiveness of the internal financial controls for the year 2009 was completed in 2010.My review of the effectiveness of the System of Internal Financial Control is informed by the work of the internal auditor, theAudit Committee which oversees the work of the internal auditor, the managers within Foras na Gaeilge (who haveresponsibility for the development and maintenance of the control processes and framework) and by the comments made by theexternal auditors in the form of their management letter and other reports.I have been advised on the implications of the result of my review of the effectiveness of the system of Internal FinancialControl by the Internal Auditor, managers within Foras na Gaeilge and the Audit Committee.As a result, steps to mend the weaknesses of the Internal Financial Control System and to ensure its continuous improvementwere taken during the year. These included:• A plan for extra staff to tackle weaknesses and ensure continuing improvement of the system;• Implementation of Conflict of Interest Policy and the associated procedures;• A quarterly review of the Risk Register to be carried out by the Board;• The Audit Committee discuss matters arising around the risk register and advise the Board accordingly.Ferdie Mac an Fhailigh 7/11/2012Chief ExecutiveDate13