TR 07- FI- 02 INTERNAL CONTROL Basic Course - MONITORING build in from the start January 2010 EU Twinning Project TR 07-FI-02

TR 07- FI- 02 COSO MONITORING MODEL ESTABLISH Atone at the top FOUNDATIONorganisational structure baseline understanding of IC effectiveness DESIGN &prioritise tasks EXECUTEidentify controls identify persuasive information on controls implement monitoring procedures ASSESS &prioritise findings REPORTreport results to the appropriate level follow up on corrective action SUPPORTED CONCLUSIONS RE- CONTROL EFFECTIVENESS

TR 07- FI- 02 ESTABLISH A FOUNDATION TONE AT THE TOP* communicate expectations * take action when control problems identified STRUCTURE* identify who does what at what level: &* monitors risk (who ‘owns’ the risk?) ROLES* oversees quality & reliability * oversees audit activities with Competence and Objectivity BASELINE* understand ic system design UNDERSTANDING* implemented fully? OF IC EFFECTIVENESS * identify changes ~ risk assessment (external environment, control operation) * manage change – establish new baseline * control revalidation/update – for continuous baseline assurance

TR 07- FI- 02 DESIGN & EXECUTE 4 Develop & implement 1 Understand & prioritise cost-effective procedures risks to organisational to evaluate the objectives evidenced information 3 Identify reliable information 2 Identify key controls across that will indicate whether the the internal control system internal control system is that address those operating effectively prioritised risks

TR 07- FI- 02 EVIDENCED INFORMATION Evidenced information: * Relevant * Reliable * Timely * Sufficient

TR 07- FI- 02 IMPLEMENTING MONITORING DECISIONS * Integrate with operations * Provide objective assessments * Use knowledgeable personnel * Consider feedback * Adjust scope & frequency

TR 07- FI- 02 ASSESS & REPORT RESULTS Findings:to individual who owns the process & related controls to (at least) 1 management level above Deficiencies:report significant to top management Corrections:timely actions internal & external sources PRIORITISE AND COMMUNICATE: Risk of achievement of objective(s) Effectiveness of compensatory controls Aggregate effect of multiple deficiencies

TR 07- FI- 02 ASSESS & REPORT RESULTS QUESTIONS: How can the right people receive the right information? How can management provide sufficient oversight to gain assurance corrective actions have been taken?

TR 07- FI- 02 INTERNAL CONTROL & INTERNAL AUDIT Support Management: a helpful not combatitive service Planned System Reviews: including those related to FMC e.g. activity reports, assurance declarations Plan & Implement Sampling: throughout the year Regular unrestricted Reporting: all relevant levels of management, incl. Top Managers Source of advice & help: to all internally

TR 07- FI- 02 SDUs/CHU & INTERNAL CONTROL at organisational & national levels respectively Coordinate:standards & appropriate practices implementation guidance training needs & delivery Communicate:standards & appropriate practices implementation guidance training needs & delivery Monitor:standards & appropriate practices implementation guidance training needs & delivery

TR 07- FI- 02 GROUP SESSION 8 monitoring 1 introduce & organise yourselves 2 address the questions in the outline FOCUS YOUR THOUGHTS & RESPONSES ON: THE MONITORING MODEL & SDUs/CHU, INFO & COMMUNICATION & THE OTHER SESSIONS ANY QUESTIONS?