Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting – Fiscal Year 2017–2018 (Unaudited)

Introduction

In support of an effective system of internal control, Library and Archives Canada (LAC) annually assesses the performance of its financial control to ensure that:

  • financial arrangements or contracts are entered into only when sufficient funding is available;
  • payments for goods and services are made only when the goods and services are received or the conditions of contracts or other arrangements have been satisfied;
  • payments have been properly authorized.

LAC will leverage the results of the periodic core control audits performed by the Office of the Comptroller General. The date of the first LAC audit related to internal controls has yet to be determined. A summary of the work carried out by LAC during the 2017–2018 fiscal year appears below.

Assessment results during the 2017–2018 fiscal year

In 2017–2018, following a risk analysis review, LAC implemented its ongoing monitoring plan and assessed key internal controls for the following processes:

  • Benefits
  • Payable at year-end
  • Value of the collection
  • Financial statements production
  • Acquisitions and amortization of tangible capital assets

This monitoring revealed that the majority of key controls were working well overall. Although some issues were noted with the departmental financial system module supporting asset accounting, the evaluation of compensatory controls that were implemented leads to the conclusion that the system provides reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements.

Assessment plan

LAC will continue to monitor the performance of its system of internal control, with a focus on the core controls related to financial transactions.

Date modified: