|The committee for internal control
On 1st July 2003 the Board of Directors formed an Internal Control Committee in relation to its internal control responsibilities with functions of consultation and to make proposals. More specifically its functions are as follows:
a) it assists the Board of Directors in exercising its responsibility for internal control;
b) it assesses the programme of work prepared by the Internal Auditing Officer and receives his periodic reports;
c) it assesses, in conjunction with the Bank’s administrative managers and external auditors, the adequacy of the accounting principles used and, in the case of groups, that they are uniform for the purposes of preparing the consolidated accounts;
d) it assesses proposals from independent auditing companies applying for appointment, the programme of work for the audit and the results set out in the audit report and in the letter of recommendations;
e) it reports to the Board of Directors on the Committee’s work and on the adequacy of the internal auditing system at least once every six months, at the time of approval of the annual and half-yearly reports and accounts;
f) it performs further tasks assigned by the Board of Directors, especially with regard to relations with the external auditing company.
More precisely, this Committee which has five members, the majority of which are non executive directors, consists of Italo Lucchini, who chairs it, Antonio Bulgheroni, Enio Fontana, Giorgio Frigeri; the Chairman of the Statutory Board of Auditors or another Statutory Auditor nominated by the Chairman of that board and the Internal Auditing Officer who acts as its secretary and, if requested a member of senior management designated to the Committee also take part in the work.
To perform its tasks, the Committee, which meets at least quarterly, makes use primarily of the Bank’s internal auditing function, the head of which is the internal auditing officer.