Statement on Internal Financial Control for the year ended 31 December 2010

On behalf of the Board of the National Disability Authority, I acknowledge our responsibility for ensuring that an effective system of internal financial controls is maintained and operated

The systems can provide only reasonable, and not absolute, assurance that the assets are safeguarded, transactions authorised and properly recorded, and that material errors or irregularities are either prevented or would be detected in a timely manner.

The Authority has taken steps to ensure an appropriate control environment is in place by:

  • Establishing formal procedures through various committee functions to monitor the activities and safeguard the assets of the organisation
  • Clearly defining and documenting management responsibilities and powers
  • Developing a strong culture of accountability across all levels of the organisation
  • Authority has also established processes to identify and evaluate business risks. This is achieved in a numbers of ways including:
  • Identifying the nature, extent and financial implications of risks facing the National Disability Authority
  • Assessing the likelihood of identified risks occurring. The NDA has prepared a risk register including strategic, operational, information technology, financial and reputational /compliance risks. In addition, risk analysis is completed at project planning and scoping stage
  • Assessing the National Disability Authority's ability to manage and mitigate the risks that do occur
  • Working closely with Government and various agencies and institutions to ensure that there is a clear understanding of the National Disability Authority's goals and support for the Authority's strategies to achieve those goals
  • Carrying out regular reviews of strategic plans both short and long term and evaluating the risks to bringing those plans to fruition
  • Setting annual and longer term targets for each area of our business followed by the regular reporting on the results achieved
  • Establishing and enforcing extensive standard procedures and provision under which financial assistance may be made available to projects, including provisions requiring repayment if the project does not fulfil commitments made by the promoter

The system of internal financial control is based on a framework of regular management information, administrative procedures including segregation of duties, and a system of delegation and accountability. In particular it includes:

  • A comprehensive budget system with an annual budget which is reviewed and agreed by the Authority
  • Regular reviews by the Authority of periodic and annual financial reports which indicate financial performance against forecasts
  • Setting targets to measure financial and other performances
  • Clearly defined capital investment control guidelines
  • Formal project management disciplines.

The Authority has outsourced an Internal Audit Service, which operates in accordance with the Framework Code of Best Practice, set out in the Revised Code of Practice on the Governance of State Bodies 2009. During 2010 the Internal Audit Service was carried out by the Department of Justice Equality and Law Reform. The NDA returned to the Department of Justice, Equality and Defence on 1 April 2011 from the Department of Community, Equality and Gaeltacht Affairs and during 2011, the Internal Audit Service will be carried out by the Department of Justice, Equality and Defence.The Internal Audit Service reports regularly to the Audit Committee. In the current year, Internal Audit has completed a report in the area of Fixed Assets. No major issues were identified in the report.

The Authority has responsibility for overseeing the implementation of the Internal Audit Service recommendations to ensure proper and effective financial control procedures are maintained and oversees the internal audit function and related plans to include any new identified areas.

The Authority's monitoring and review of the effectiveness of the systems of internal financial control is informed by:

  • the work of the Internal Audit Service and the contribution of the Audit Committee which oversees the work of the Internal Auditor and of the corporate governance environment;
  • the executive managers with the National Disability Authority who have responsibility for the development and the maintenance of the financial control framework ;
  • the Finance committee who report at least quarterly on financial expenditure and related issues and
  • the issues raised by the Comptroller and Auditor General.

I confirm that the Authority has carried out a formal review of the effectiveness of the systems of internal financial controls in 2010.

Peter Mc Kevitt

Chairman

16 June 2011

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