Page 95 - EXIM-Bank_Annual-Report-2023

Management Discussion and Analysis Ensuring Sustainability Commitment to Lead Upholding Accountability Financial Statements 93

STATEMENT ON

iNTERNAl CONTROl

IntERnAL ContRoL
Internal Control is defined as a process, performed by EXIM Bank’s Board of Directors, management, and personnel, designed to
provide reasonable assurance of the achievement of the following objectives:
• The reliability and integrity of information
• Compliance with policies, plans, procedures, laws and regulations and contracts
• The safeguarding of assets
• The economical and efficient use of resources
• The accomplishment of established objectives and goals for operations or plans
The Board recognises the importance of maintaining a sound system of internal control and risk management practices, as well as
good corporate governance. The Board exercises overall responsibility in identifying, evaluating and reviewing the adequacy and
effectiveness of the Bank’s risk management, governance and internal control. The Board recognises that risks cannot be eliminated
completely and as such, systems and processes have been put in place to provide reasonable and not absolute, assurance against
material misstatement of financial information or against losses and fraud. The Board is of the view that the internal control
framework instituted throughout the Bank is sufficient to safeguard stakeholder’s investments, customer’s interests, and the Bank’s
assets. Reviews are continuously carried out by the Bank to ensure effectiveness of the system.

BoARD AuDIt CoMMIttEE

The Board Audit Committee (BAC) was established to further strengthen the Bank’s internal audit processes, and therefore, meets
regularly with the objective of assisting the Board in managing the Bank’s range of inter-related risks in an integrated manner. The
key responsibilities that the BAC execute as established by the Board to ensure the integrity of the systems of the internal controls
are as follows:
a) Reviews the adequacy and integrity of the Bank’s internal control systems and management information system, including
systems for compliance with applicable laws, regulations, rules, directives, and guidelines, as identified by the internal auditors,
the external auditor, and regulatory authorities;
b) Reviews the adequacy and comprehensiveness of the internal audit process, scope of audit, competency of the auditors
and the independence of the Internal Audit function. The Audit & Assurance Department (AAD) reports to the BAC,
performs regular reviews of the processes to assess their effectiveness and highlights any significant risks affecting the Bank.
The BAC reviews the internal auditor’s auditable areas and resources annually, via the Annual Audit Plan;

c) Regularly reviews and holds discussions with the Management on actions taken to address lapses in internal control and issues
identified in reports prepared by the internal auditors, external auditors and regulatory authorities;

d) Reviews all related party transactions, audit and non-audit related fees proposed by the Bank’s external auditors;
e) Reviews the financial statements of the Bank (half-yearly and annually), preliminary results release and any other formal release
relating to its financial performance prior to escalation to the Board for approval to ensure accuracy and appropriateness of the
financial reporting;
f) Reviews the adequacy and effectiveness of the Integrity and Investigation Department (IID) function in ensuring the
implementation of integrity and governance programmes, initiatives and activities, including the Organisational Anti-Corruption
Plan;
g) Reviews IID’s Annual Plan on the sufficiency, as well as efficacy of IID’s role with regard to competency, resources and authority
in carrying out its functions;
h) Review of IID’s investigation reports for recommendation to the Board for approval and ensure necessary corrective and timely
action have been taken by Management; and

i) Reviews the Bank’s whistleblowing arrangements and updates on the status of whistleblowing arrangements and their
outcomes.