The Road to the SDGs

PURPOSE X As part of the P5P, IsDB prepared for COSO readiness throughout 2020. The initiative’s main objective was to perform a detailed assessment of the existing internal control environment impacting IsDB’s financial reporting and operational risks with a view to implementing the COSO framework for internal controls over financial reporting processes. X Fully implemented by IsDB by the end of 2020, COSO has achieved the following: – Created a system of effective internal controls that are a critical component of IsDB management, and a foundation for its safe operations – Enhanced the control environment to effectively mitigate many financial reporting and operational risks, contributing to greater efficiency and effectiveness of IsDB’s overall financial reporting and risk management activities – Identified and mitigated potential control gaps in the internal control system over financial reporting – Formalised and institutionalised internal control change initiatives – Contributed towards sustaining the AAA rating. X The foundation of every good COSO Internal Controls over Financial Reporting (ICFR) programme is a well-defined strategy that aligns with organisational priorities. It requires understanding how that chosen level of reliance supports broader goals. More mature ICFR strategies aim beyond basic compliance, supporting IsDB’s corporate values and the P5P work programme and strategy. METHOD X IsDB took an effective risk-based approach which was a cumulative and iterative process, rather than following a more linear path. X The project began with a planning and scoping phase, with identifying and understanding significant accounts, disclosures and assertions that present a reasonable possibility of material misstatement to the financial statements. T he Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a comprehensive, integrated framework that aims to improve the quality of financial reporting by focusing on corporate governance, ethical practices and internal control COSO Framework Once the framework is implemented, IsDB will be on par with the leading global organisations and MDBs [ 198 ] SDGs