Statement on comments made at the Public Accounts Committee

The Internal Audit function is an independent and objective appraisal function within the Central Bank. Its role is to provide audit assurance that the system of risk management and internal control is adequate to manage and control those risks to which the Central Bank is exposed. It also assists the Central Bank in its pursuit of efficiency and effectiveness. The Head of Internal Audit reports directly to the Governor and has unrestricted access to the Audit Committee and members of the Senior Management Committee.

The Internal Audit function submits four-monthly written reports to the Governor, the Audit Committee and the Senior Management Committee giving an assessment of how effectively the Central Bank’s objectives are being met. The Internal Audit function also reports to the Internal Audit Committee of the ECB on the outcome of ESCB audits and other audit issues.

In January 2015 the Internal Audit function prepared a report 'Assessment of Compliance with the Code of Practice for the Governance of State Bodies', which was shared with the Office of the Comptroller & Auditor General. The Report provided an assessment of the Central Bank’s level of compliance with the Code and was undertaken in accordance with normal auditing procedures.

The Report identified some deviations from the Code which were consistent with existing Central Bank policy and some areas of control weakness which required remedial action. These issues were reported to the Bank’s Audit Committee and the majority of these remediation actions have now been completed.

In line with established procedures the Bank’s Internal Audit Division routinely follow up on all issues raised in their reports, the outcome of which is reported to the Audit Committee and shared with the Office of the Comptroller & Auditor General.

The report was co-authored by the Head and Deputy Head of Internal Audit along with one of the Central Bank’s senior auditors.

The Central Bank expects the highest standards of corporate governance in the firms it regulates and also applies those high standards to itself. We are committed to identify areas where improvements can be made that will improve the efficiency and effectiveness of our operations.

The Central Bank is committed to the principle of public accountability and to developing a culture where it is safe and acceptable for all its employees to raise their concerns about what is happening at work if they have a reasonable belief of wrongdoing.

Employees have an important role in identifying and reporting concerns about wrongdoing which has come to their attention in connection with their employment. The Central Bank investigates all concerns raised by its staff through the Central Bank’s Confidential Disclosure Policy relating to perceived wrongdoing in the Central Bank and ensures that employees are not discriminated against or suffer detriment as a result of raising a concern.