Reporting

REPORTING RESPONSIBILITY FOR EXTERNAL FINANCIAL REPORTING

Responsibility for external financial reporting

Management’s responsibility

 

Management’s report regarding the effectiveness of internal controls over external financial reporting

 

The management of the European Bank for Reconstruction and Development (the Bank) is responsible for the preparation, integrity, and fair presentation of its published financial statements and associated disclosures presented in this Financial Report 2015. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board.

 

The financial statements have been audited by an independent accounting firm, which has been given unrestricted access to all financial records and related data, including minutes of all meetings of the Board of Directors and committees of the Board. Management believes that all representations made to the external auditor during its audit were valid and appropriate. The external auditor’s report accompanies the audited financial statements.

 

Management is responsible for establishing and maintaining effective internal control over external financial reporting for financial presentation and measurement in conformity with IFRS. The system of internal control contains monitoring mechanisms, and actions are taken to correct deficiencies identified. Management believes that internal controls for external financial reporting – which are subject to scrutiny and testing by management and are revised, as considered necessary, taking account of any related internal audit recommendations – support the integrity and reliability of the financial statements.

 

There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and the circumvention of overriding controls. Accordingly, even an effective internal control system can provide only reasonable assurance with respect to financial statements. Furthermore, the effectiveness of an internal control system can change with circumstances.

 

The Bank’s Board of Directors has appointed an Audit Committee, which assists the Board in its responsibility to ensure the soundness of the Bank’s accounting practices and the effective implementation of the internal controls that management has established relating to finance and accounting matters. The Audit Committee is comprised entirely of members of the Board of Directors. The Audit Committee meets periodically with management in order to review and monitor the financial, accounting and auditing procedures of the Bank and related financial reports. The external auditor and the internal auditor regularly meet with the Audit Committee, with and without other members of management being present, to discuss the adequacy of internal controls over financial reporting and any other matters that they believe should be brought to the attention of the Audit Committee.

 

The Bank has assessed its internal controls over external financial reporting for 2015. Management’s assessment includes the Special Funds and other fund agreements referred to in notes 31 and 32 of the Financial Report 2015, and the retirement plans. However, the nature of the assessment is restricted to the controls over the reporting and disclosure of these funds/plans within the Bank’s financial statements, rather than the operational, accounting and administration controls in place for each fund.

 

The Bank’s assessment was based on the criteria for effective internal controls over financial reporting described in the “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organisations of the Treadway Commission (2013 framework). Based upon this assessment, management asserts that at 31 December 2015 the Bank maintained effective internal controls over its financial reporting as contained in the Financial Report 2015.

 

The Bank’s external auditor has provided an audit opinion on the fair presentation of the financial statements presented within the Financial Report 2015. In addition, it has issued an attestation report on management’s assessment of the Bank’s internal control over financial reporting, as set out here.

 

Suma Chakrabarti

President

András Simor

Vice President and Chief Financial Officer

European Bank for Reconstruction and Development

London

24 February 2016

 

European Bank for Reconstruction and Development

One Exchange Square London EC2A 2JN United Kingdom

Tel: +44 20 7338 6000 Fax: +44 20 7338 6100

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