Internal Controls & Assurance - May 2010

Ash Shaw plans to help Independent Trustees prepare their Internal Control Reports using The Internal Controls Reporting System™. A process of 7 simple steps. These steps will cover The Internal Controls Self Assessment Analysis™ through to maximising your investment in your Internal Controls Report.

This month, The Internal Controls Reporting Roadmap™ is to help you plan your project using a path that has helped pension administrators over the last three years. The next issue will look at step 3, The Internal Controls Reporting Roadmap™.

The expected response from the Pensions Regulator on 12 April 2010 following its 'Consultation on the Pensions Regulator's Trustee Register' is delayed while the newly formed government is established.

The key to a successful internal controls report is in the planning. Creating a project plan is the first thing you should do when undertaking any kind of project. Better still, use our Internal Controls Reporting Roadmap™ which shows you the key steps to success, saving you time and money. Here's a taster to get you started.

Step 1 Your Goals
Any project is successful when the needs of the stakeholders have been met. A stakeholder is anybody directly or indirectly impacted by the project.

As a first step it is important to identify the stakeholders in your project. Examples of stakeholders are:

1. The head of your business
2. The project sponsor
3. The Pensions Regulator
4. Prospective clients
5. Your Risk Manager
6. Your sales & marketing team
7. Your other directors, employees and consultants

Once you understand who the stakeholders are, the next step is to establish their needs and how this project will help them. The best way to do this is by conducting stakeholder interviews. Take time during the interviews to draw out the true needs that create real benefits and also the challenges they see.

Once you have established a clear set of goals they should be recorded in the project plan. We would also recommend recording the key stakeholder benefits.

This is the most difficult part of the planning process completed. It's time to move on and face your challenges.

Step 2 Your Challenges
Using the interview notes you obtained above, now create a list of challenges. Acknowledge all those voices you and your team hear from inside yourselves and other parts of the business, telling you why you cannot achieve this project. For example, lack of time, cost, lack of experience, etc. Against each challenge write your ideal result.

Step 3 Project Milestones
Create a list of tasks against each challenge that need to be completed in order to achieve your ideal result. For each task identify the following:

• The amount of effort required to complete the task
• Who will carry out the task
• Other resources

Once you have established the amount of effort for each task, you can work out the effort required and an accurate completion date. Update your Milestone section with more accurate completion dates.

Step 4 Act!
The most important thing you can do now is doing something to get the project moving. Why not arrange a meeting with the head of your business to find out how remaining on The Pension Regulators' register helps them achieve their goals. You can also ask what benefits that brings and also any challenges they can foresee. Whatever you do, do something.

This article looks at a simple practical approach to obtaining your Internal Controls Report. On completion you should have a sound project planning approach that you can use for future projects.

If you would to discuss your situation, then please email Sally Tasker or call her on 020 7917 2987 to arrange a free 45 minute consultation.

Improvement begins with rigorous, honest and robust self evaluation against a set of control objectives.

We have created a self analysis worksheet which may be completed by individuals or in groups. You can then make a judgement against each of the control objectives and use the evidence section to make notes on links between your judgements.

We are currently developing an Internal Controls tool kit to support the production of Internal Controls Reports, and to share effective strategies that reduce the need for exceptions. Our first tool is a Discussion Forum for Independent Trustees. which we believe will be of great interest for those who want to join or remain on the Pension Regulator’s register.

We have created a group on Linked In for independent pension scheme trustees to consider the implications of the Pensions Regulator's '‘Consultation on the Pensions Regulator’s Trustee Register". We will soon send you an invitation to join this group and we look forward to hearing your thoughts on this topic.

We have started our discussion by asking the following question:

Is there an easier way to provide the assurance the Regulator requires rather than produce an Internal Controls Report?

Comment
Would you like to comment? To share your thoughts on this topic please contact Sally Tasker on 0207 7917 2987 or email Sally Tasker.

Downloads

Consultation on the Pensions Regulator's Trustee Register

2 page summary of Internal Controls Report (AAF 01/06)

ICAEW 47 page Guidance on Internal Controls Reporting (AAF 01/06)

TPR 34 page Consultation on the Pensions Regulator’s Trustee Register

Previous Topics

The Internal Controls Self Assessment AnalysisTM

Future Topics

The Internal Controls Reporting RoadmapTM

Links

Ash Shaw home page

Ash Shaw internal controls page

Ash Shaw helpsheets

Ash Shaw publications

Ash Shaw newsletter

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To register for our Internal Controls and Assurance Bulletin you must be currently on the Pensions Regulator's register. If you are on the register and would like to receive your own copy of this mailing please email Sally Tasker.