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APPENDIX B
Isle of Man Financial Services Authority Annual Report 2016/17 • 37
The Authority’s CEO is responsible for
ensuring that the Authority’s business is
conducted in accordance with the law and
proper standards, and for developing and
operating internal controls to ensure that
public money is safeguarded, properly
accounted for, and used economically,
efficiently and effectively.
In discharging these responsibilities and
reporting to the Board, the CEO and
Executive of the Authority are required to
put in place adequate arrangements for the
governance of the Authority’s affairs and
the stewardship of resources at its disposal.
This is also embraced within the Isle of
Man Government’s Corporate Governance
Principles and Code of Conduct. That code
requires there to be in place a framework
governing activity and ensuring that:
•
decisions are taken properly
•
channels of communication are open
•
performance is monitored
•
standards are upheld.
The Authority is required to submit an
annual ‘Statement on Internal Control’ to
Government which covers implementation of
the above arrangements.
The control environment within which the
Authority operates includes:
•
adherence to the Government’s
Financial Regulations
•
arrangements for functions and
responsibilities delegated by the Board
to individual officers via job descriptions
and monitored by a regular review
process
•
a staff handbook (including codes of
conduct, etc.)
•
an internal reporting mechanism
through the senior management team
to the CEO and to the Board.
The control environment sets the overall
structure for internal control and the exercise
of the responsibilities of the Authority’s Board
Members, CEO, senior management and
officers in regard to all matters, including such
areas as the:
•
accomplishment of established goals
and objectives
•
appropriate exercise of powers and
delegated authorities within the
Authority
•
compliance with policies, plans,
procedures, law and other requirements
•
management of conflicts of interests
•
reliability and integrity of management
information
•
economical and efficient use of all
resources
•
safe-guarding of all assets.
Whilst responsibility and accountability
for internal control is vested with the
CEO, the Treasury has a role in reviewing
the adequacy of the Authority’s internal
controls through the use of internal audit
processes. The Authority has entered into a
new memorandum of understanding with
Treasury to set out the framework for
co-operation between the Treasury and the
Authority. The memorandum establishes
arrangements to ensure that the Authority
is accountable to Treasury for its actions and
clarifies the circumstances in which liaison
and dialogue can flow between the parties.
CORPORATE GOVERNANCE