Barclays 2010 Annual Report Download - page 150

Directors’ report
continued
Internal control over financial reporting includes policies and procedures
that pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect transactions and dispositions of assets; provide
reasonable assurances that transactions are recorded as necessary to
permit preparation of financial statements in accordance with IFRS and
that receipts and expenditures are being made only in accordance with
authorisations of Management and the Directors ; and provide reasonable
assurance regarding prevention or timely detection of unauthorised
acquisition, use or disposition of assets that could have a material affect
on the financial statements.
Internal control systems, no matter how well designed, have inherent
limitations and may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk
that internal controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Management has assessed the effectiveness of internal control over
financial reporting as of 31st December 2010. In making its assessment,
Management has utilised the criteria set forth by the Committee of
Sponsoring Organisations of the Treadway Commission in Internal Control
– Integrated Framework. Management concluded that, based on its
assessment, the internal control over financial reporting was effective
as of 31st December 2010.
Our independent registered public accounting firm has issued a report on
Barclays Group internal control over financial reporting which is set out
on page 186.
The system of internal financial and operational controls is also subject
to regulatory oversight in the United Kingdom and overseas. Further
information on supervision by the financial services regulators is provided
under Supervision and Regulation in the Risk Management section on
pages 139 to 142.
Changes in internal control over financial reporting
There have been no changes in the Group’s internal control over financial
reporting that occurred during the period covered by this report which
have materially affected or are reasonably likely to materially affect internal
control over financial reporting.
Statement of Directors’ responsibilities for accounts
The following statement, which should be read in conjunction with the
Auditors’ report set out on page 185, is made with a view to distinguishing
for shareholders the respective responsibilities of the Directors and of the
auditors in relation to the accounts.
The Directors are required by the Companies Act 2006 to prepare accounts
for each financial year and, with regards to Group accounts, in accordance
with Article 4 of the IAS Regulation. The Directors have prepared individual
accounts in accordance with IFRS as adopted by the European Union.
The accounts are required by law and IFRS to present fairly the financial
position of the Company and the Group and the performance for that
period. The Companies Act 2006 provides, in relation to such accounts,
that references to accounts giving a true and fair view are references to
fair presentation.
The Directors consider that, in preparing the accounts on pages 187 to
270, the Group has used appropriate accounting policies, supported by
reasonable judgements and estimates, and that all accounting standards
which they consider to be applicable have been followed.
The Directors have responsibility for ensuring that the Company and the
Group keep accounting records which disclose with reasonable accuracy
the financial position of the Company and the Group and which enable
them to ensure that the accounts comply with the Companies Act 2006.
The Directors have general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Group and
to prevent and detect fraud and other irregularities.
Disclosure controls and procedures
The Chief Executive, Bob Diamond, and the Group Finance Director,
Chris Lucas, conducted with Group Management an evaluation of the
effectiveness of the design and operation of the Group’s disclosure
controls and procedures as at 31st December 2010, which are defined
as those controls and procedures designed to ensure that information
required to be disclosed in reports filed or submitted under the US
Securities Exchange Act of 1934 is recorded, processed, summarised
and reported within the time periods specified in the US Securities and
Exchange Commission’s rules and forms. As of the date of the evaluation,
the Chief Executive and Group Finance Director concluded that the design
and operation of these disclosure controls and procedures were effective.
The Directors confirm to the best of their knowledge that:
(a) The financial statements, prepared in accordance with the applicable
set of accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of Barclays PLC and the
undertakings included in the consolidation taken as a whole; and
(b) The management report, which is incorporated into the Directors’
Report on pages 143 to 148, includes a fair review of the development
and performance of the business and the position of Barclays PLC
and the undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and uncertainties
that they face.
Signed on behalf of the Board
Marcus Agius
Group Chairman
10th March 2011
Registered in England. Company No. 48839
148 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10