Statement on the System of Internal
Financial Control
This statement is given in respect of the accounts for the Radiocommunications
Agency. As Accounting Officer for the Radiocommunications Agency, I acknowledge
my responsibility for ensuring that an effective system of internal financial
control is maintained and operated in connection with the resources concerned.
The system of internal financial control can provide only reasonable and
not absolute assurance that assets are safeguarded, that transactions are
authorised and properly recorded, and that material errors or irregularities
are either prevented or would be detected within a timely period.
The system of internal financial control is based on a framework of regular
management information, financial regulations, administrative procedures (including
segregation of duties), management supervision, and a system of delegation
and accountability. Development and maintenance of the system is undertaken
by executive managers within the Agency. In particular, the system includes:
comprehensive budgeting systems with an annual budget which is reviewed
and agreed by the Management Board;
regular reviews by the Management Board of periodic and annual financial
reports which indicate financial performance against the forecasts;
setting targets to measure financial and other performance;
the preparation of regular financial reports which indicate actual expenditure
against the forecasts;
capital investment control guidelines and project management disciplines.
The Agency enjoys the services of the DTI's Internal Audit unit, which
operates to standards defined in the Government Internal Audit Manual. The
work of the internal audit unit is informed by an analysis of the risk to
which the body is exposed, and annual internal audit plans are based on this
analysis. The analysis of risk and the internal audit plans are endorsed by
the body's Audit Committee and approved by me. At least annually, the Head
of Internal Audit (HIA) provides me with a report on internal audit activity
in the body. The report includes the HIA's independent opinion on the adequacy
and effectiveness of the body's system of internal financial control.
My review of the effectiveness of the system of internal financial control
is informed by:
Directors of the Agency, who are responsible for the work of the Business
Units within their Executives;
the Agency's Audit Committee;
the work of the internal auditors as described above;
the external auditors in their management letter and other reports.
As Accounting Officer, I am aware of the recommendations of the Turnbull
Committee and I am taking reasonable steps to comply with the Treasury's requirement
for a statement of internal control to be prepared for the year ended 31 March
2002, in accordance with DAO (GEN) 13/2000.
