SCIENCE FOUNDATION IRELAND ANNUAL REPORT 2015
49
Statement on Internal Financial Control
On behalf of the Board of Science Foundation Ireland
I acknowledge our responsibility for ensuring that
an effective system of internal financial control is
maintained and operated.
The system can only provide reasonable and not
absolute assurance that assets are safeguarded,
transactions authorised and properly recorded,
and that material errors or irregularities are either
prevented or detected in a timely period.
The Board has taken steps to ensure an appropriate
control environment is in place by:
Clearly defining and documenting management
responsibilities and powers;
Establishing formal procedures for monitoring
the activities and safeguarding the assets of the
organisation;
Developing a culture of accountability across all
levels of the organisation.
The Board has also established processes to identify
and evaluate business risks by:
Working closely with Government and various
Agencies to ensure that there is a clear
understanding of Science Foundation Ireland
goals and support for the Agencies’ 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 targets for each area of our
business followed by regular reporting on the
results achieved;
The system of internal financial control is based on
a framework of regular management information,
administration procedures including segregation of
duties and a system of delegation and accountability.
In particular, it includes:
A comprehensive budgeting system with an
annual budget which is reviewed and agreed by
the Board;
Regular reviews by the Board of periodic and
annual financial reports which indicate financial
performance against forecasts;
Setting targets to measure financial and other
performance;
Formal project management disciplines;
Clearly defined capital investment control
guidelines.
Science Foundation Ireland has established an
Internal Audit function, in accordance with the
Framework set out in the Code of Practice on the
Governance of State Bodies, which reports directly to
the Audit Committee. An annual Internal Audit work
plan is agreed by the Audit Committee. The work of
internal audit is informed by analysis of the risks to
which the body is exposed. The Audit Committee
meets six times a year and reviews the outcome of the
specific internal audits and the on-going adequacy
and effectiveness of the system of internal financial
control. These reports highlight deficiencies or
weaknesses, if any, in the system of internal financial
control and the recommended corrective measures to
be taken where necessary.
A Risk Management Committee meets on a regular
basis to review and manage risks identified
throughout the Foundation. These risks are ranked
and updated on a comprehensive SFI Risk Register,
which is reported as a standing item on the SFI Audit
Committee and reported periodically to the Board.
The Board’s monitoring and review of the
effectiveness of the system of internal financial
control is informed by the work of Internal Audit and
the Audit Committee which oversees the work of
Internal Audit, the control exercised by the Executive
managers within SFI who have responsibility for
the development and maintenance of the financial
framework and comments by the Comptroller and
Auditor General in his Management Letter.
I confirm that the Board conducted a review of the
effectiveness of the system of internal financial
controls for 2015.
On behalf of the Board of Science Foundation Ireland:
Ms Ann Riordan
Chairman
Date: 17 May 2016