The North / South Language Body Annual Report & Accounts 2009

STATEMENT ON INTERNAL CONTROLScope of ResponsibilityAs Accountable Person, I have responsibility for maintaining a sound system of internal control that supportsthe achievement of the Ulster-Scots Agency’s policies, aims and objectives, whilst safeguarding the publicfunds and assets for which I am personally responsible, in accordance with the responsibilities assigned to me inManaging Public Money Northern Ireland and Public Financial Procedures.As the Agency’s Chief Executive, appointed on 5 July 2011, I am directly responsible to the respectiveMinisters in the North and South and the sponsor Departments, for the Agency’s performance and operations.The Ministers determine the policy framework under which the Ulster-Scots Agency operates and the scope ofits activities. The Ministers also determine the resources to be made available to the Agency and approve theCorporate and Business Plans.Through Working Group meetings, I consult with Departments on the handling of operational matters that couldgive rise to significant public or parliamentary concern, including the nature, scale and likelihood of risks.The Accounting Officer of DCAL has designated me by letter, in a form approved by the Department of Financeand Personnel and the Department of Finance, as the Accounting Officer for the Agency. This letter and theNorth/South Language Body Financial Memorandum define my role and responsibilities and our relationship.The Purpose of the System of Internal ControlThe system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk offailure to achieve policies, aims and objectives; it can therefore only provide reasonable assurance and notabsolute assurance of effectiveness. The system of internal control is based on an ongoing process designed toidentify and prioritise the risks to the achievement of the Agency’s policies, aims and objectives; to evaluate thelikelihood 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 further developed in the Agency for theyear ended 31 December 2009 and up to the date of approval of the annual report and accounts, and accordswith the Finance Departments’ guidance.Capacity to Handle RiskThe Agency Board provides strategic direction and leadership to the organisation within the parameters ofpolicy set by, and in consultation with the Ministers. The Executive Team has responsibility for the day to daymanagement of operations, staff and budgets to ensure that the business targets set by the Board are progressedon a timely basis. The Board’s primarily function is therefore to set the corporate business agenda and ensurethat the organisation delivers in terms of its strategic goals. The Board reviews performance against targetsincluding any consequent corrective actions, risk implications and contingency measures.The identification and impact of risk is incorporated into the corporate planning and decision making processesof the Agency. Consequently the Agency ensures that there are procedures in place for verifying that internalcontrol and aspects of risk management are regularly reviewed and reported on and are supplemented bydetailed best practice guidelines on whistle-blowing and fraud management policies among others.The Agency’s Audit Committee receives periodic reports concerning internal control and steps are taken tomanage risks in significant areas of business and to monitor progress on key projects and targets. TheCommittee is authorised by the Board to investigate any activity within the scope of its terms of reference. Themain objective is to contribute independently to the Board’s overall process for ensuring that an effectiveinternal control system is maintained.The Audit Committee has lead responsibility for the periodic review of the risk framework and other records ofrisk. Management of risk categories has been allocated appropriately within the organisation. Any revision tothe framework is discussed within the Audit Committee and recommended to the Board.The Audit Committee also agrees the internal audit work schedule and all internal audit reports are reviewed bythe Committee. Finally, the Audit Committee reviews the final reports and accounts and the ensuingmanagement letter. The Audit Committee met on three occasions in 2009.37