Audit and Risk Committee Report

The Audit and Risk Committee assisted the Board in the oversight of:

• the quality and integrity of the financial statements; the review and monitoring of the effectiveness of the systems of internal control; the internal audit process and the compliance function; and the review of the outputs from the statutory auditor, the Comptroller and Audit General (C&AG);
• the SBCI’s risk management framework including setting risk appetite; the monitoring of adherence to risk governance and ensuring risks are properly identified, assessed, managed and reported.
  The Committee comprises three non-executive members of the Board:
  • Tom McAleese (Chairperson)
  • Barbara Cotter
  • Eilis Quinlan

There were no changes to the membership of the Committee during 2016.

The Committee met on six occasions in 2016. The principal activities of the Committee in 2016 were as follows:

Financial Reporting

The Committee reviewed the financial statements prior to recommending to the Board. The review focused on the accounting methods, the Companies Act 2014 and the clarity and completeness of disclosures.

Internal Controls

The Committee reviewed the adequacy and effectiveness of the internal control systems and statements to be included in the financial statements concerning internal controls. The Committee’s findings were reported to the Board.

Compliance

The Committee reviewed and recommended to the Board updates to a number of compliance related policies including the Reporting of “Relevant Wrongdoing” and Protected Disclosures Policy. It received the Annual Compliance Report and reviewed the services performed.

Statutory Audit

The Committee reviewed the external audit plan in advance of the audit and met with the external auditor to review findings from his audit of the financial statements. It also reviewed management’s responses to the findings and implementation of the auditor’s recommendations on an ongoing basis. The Committee met privately with the external auditor in 2016.

Internal Audit

The Committee received regular reports from the internal auditor. It reviewed the key findings from the outcome of individual internal audit reviews completed under the 2016 risk based internal audit plan which had been developed focusing on the key risks facing the SBCI. It monitored the implementation of internal audit recommendations and reviewed and approved the 2017 internal audit plan.

The Committee met privately with the NTMA Head of Internal Audit in 2016 and reviewed the effectiveness of the internal auditor.

Risk

The Committee recommended updates to the Risk Management Policy and Framework, and the Risk Appetite Statement to the Board. It received regular reports from the Head of Risk on the SBCI’s risks and the controls in place to mitigate risks. It monitored the progress of the Risk function in developing risk management, including the reporting of emerging risks.

The Committee reviewed its terms of reference and recommended a number of amendments to the Board. These amendments were accepted by the Board. It also undertook a review of its own performance.

The Committee’s priorities in respect of 2017 were approved as part of its Work Programme 2017.

Remuneration Committee update

The Board established a Remuneration Committee in September 2016 to advise the Board on remuneration matters. The Committee comprises three members:

• Rosheen McGuckian (Chairperson)
• Ann Nolan
• Conor O’Kelly

Subsequent to the Board’s decision to establish the Committee, it met on one occasion before end-2016 to consider its terms of reference.

Credit Committee update

The Board established a Credit Committee in February 2017 to assist the Board in reviewing and approving credit decisions, and the oversight and monitoring of credit risk. The Committee comprises two appointed members of the Board, the Chief Executive Officer and no more than two persons who are senior staff members of the SBCI or the NTMA. The Committee comprises four members:

• Richard Pelly (Chairperson)
• Rosheen McGuckian
• Nick Ashmore
• Ray Mangan (Head of Risk, SBCI)

There is currently one vacancy on the Committee.