Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting - Fiscal Year 2012-2013 (unaudited)
Return to 2012-2013 Departmental Performance Report
In support of an effective system of internal control, the Canadian Radio-television and Telecommunication Commission (CRTC) annually assesses the performance of it financial controls to ensure:
- financial arrangements or contracts are entered into only when sufficient funding is available;
- payments for goods and services are made only when the goods or services are received or the conditions of contracts or other arrangements have been satisfied; and
- payments have been properly authorized.
The CRTC will leverage the results of the periodic Core Control Audit performed by the Office of the Comptroller General. Below is a summary of the results of the assessment conducted during fiscal year 2012-2013.
2. Assessment results during fiscal year 2012-2013
During 2012-2013, the CRTC completed all design effectiveness testing of key control areas and material business processes, including Financial Close and Reporting; Procure to Payment; Payroll; Capital Assets and Revenues. The CRTC also commenced planning for operating effectiveness testing for the 2013-2014 fiscal year.
For the most part, controls related to payment for goods and services and payment authority were functioning well and form an adequate basis for the CRTC system of internal control. As a result of the design effectiveness testing for these financial controls, the CRTC identified the following remediation action that is required: improvements in the monitoring and approval of transactions and accounts; improvements to segregation of duties and strengthened system access controls. Remediation is currently in progress.
Revenues are a significant and material component of the CRTC's financial statements. Design effectiveness testing for the revenue process in 2012-2013 concluded that there are effective key controls in place.
3. Assessment plan
The CRTC will continue to monitor the performance of its system of internal control with a focus on the core controls related to financial transactions.
The CRTC is also planning to perform the operating effectiveness testing of key controls and to develop an on-going monitoring plan in the 2013-2014 fiscal year.
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