ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

The Executive Committee, which comprises the Governor, Deputy Governor and the Managing Director, has the overall responsibility for the internal controls and risk management of the Bank. This Committee guides the system of internal control and ensures that the Bank’s policies are carried out by the various departments, each of which is headed by a senior director or a director. Three senior directors and 10 directors head the 13 departments of the Bank, and they are responsible for ensuring that the departmental objectives are met and that the Bank’s policies and procedures are executed efficiently and effectively. The Internal Audit Department is critical to the Bank’s management of risks; it monitors continuously, the operations of high-risk areas in the Bank. The Director of the Internal Audit Department is required to report any deficiencies in the Bank’s system to the Board Audit Committee and to make recommendations to the Executive Committee and Heads of Department for the protection of the resources and the reputation of the Bank. External Auditors An external auditor is appointed by the Board of Directors from a list of auditors approved by the Monetary Council. The selection is done through a process of tendering and due diligence review and the auditor selected serves for three years. The auditing firm of KPMG was appointed on 1 April 2013 to serve as the external auditor for the Bank. The external auditor conducts an annual audit to provide the assurance that the financial statements fairly represent the Bank’s financial position, and

reports to the Board Audit Committee on its findings and recommendations.

I ntegrity and F inancial R eporting Disclosure and Transparency In keeping with international standards, the Bank publishes its statement of assets and liabilities monthly and the audited annual financial statements by the end of June each year in accordance with statutory requirements.

Approved transparency practices for monetary policy at the ECCB are published on the Bank’s website.

Compliance with International Financial Reporting Standards The Bank has been in compliance with the International Financial Reporting Standards (IFRS) since the beginning of the 2004 financial year. These standards are issued by the International Accounting Standards Board (IASB) and are authoritative pronouncements on how transactions and events should be reflected in financial statements. C ode of C onduct The Bank’s overriding code of conduct is encapsulated in its value statement as follows: “The Bank values a results-focused approach in delivering timely, relevant and high quality output for the benefit of the people of the ECCU.” The behaviour of management and staff is governed by various policy documents including: •  • The Eastern Caribbean Central Bank Corporate Governance Charter; •  • Media Relations Policy;

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ECCB A nnual R eport 2015/2016