WAPIC INSURANCE PLC INTERNAL CONTROL FRAMEWORK - Microsoft

WAPIC INSURANCE PLC

INTERNAL CONTROL FRAMEWORK

Prepared By

Name

Muyiwa Oke

Reviewed By

Peter Ehimhen

Reviewed By

Segun Balogun

Approved By

Ratified By

BRMC

Board

Directors

Document History

Prepared By

Muyiwa Oke

2

DESIGNATION

Head, Compliance

& Internal Control,

Wapic Insurance

CRO, Wapic

Insurance

Managing

Director

SIGN

DATE

of

Date

Mar 31, 2013

Version

1

Comment

This document is subject to

periodic

review

and

approvals to reflect changes

in business environment

Table of Contents

.I

1.1

1.2

1.3

1.4

2.

2.1

2.2

2.3

2.4

2.5

2.6

3

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

WAPIC INSURANCE PLC Internal Control Framework Policy

Overview

Definition

Objectives of internal control

Internal control environment

WAPIC INSURANCE Internal Control Framework Overview

Joint responsibility for internal control

Division management quarterly report on the financial

Statement and internal control system

Guiding principles and internal control standards

WAPIC INSURANCE Policies & procedures

Code of conduct/sanction grid

Generally accepted accounting/fair presentation

Guiding Principles and Internal Control Standards

Introduction

Compliance with applicable laws and regulations

of other regulating agencies

Other legal requirements

Reasonable assurance

Mitigating limitations in internal controls

Role of internal auditor

key success factor for internal audit and internal

Control officer

Work ethics required for internal control officer

Authority of internal control officer

Linkage of internal control and quality

Responsibilities of managers and employees

Internal control standards

Documentation

Quarterly certification

Human resources ¨C selection & development

Segregation of responsibilities

Approval of transaction

Reconciliation and verification of transactions

Safeguarding of assets & other company property

Policies and procedures

Risk assessment/review

Information technology

Financial controls and records

Assessment of the internal control framework

5

5

5

5

7

14

15

15

15

16

16

16

18

18

19

19

19

20

21

21

21

22

22

22

24

24

24

24

24

25

25

25

26

28

29

29

29

5

Policy on business conduct

30

5.1

5.2

5.3

Company funds, assets, record & payment

Conflicts of interest

Out-sourced business

30

30

31

6

WAPIC INSURANCE PLC internal control framework

Employee responsibilities ¨C daily control activities.

6.1 Approval

6.2 Documentation

6.3 Segregation of duties

6.4 Recording of transactions

6.5 Proofing, Recording & Verifying

6.6 Open Items on suspense accounts & Nostro /

Our Accounts Reconciliation reports

6.7 General Ledger account ownership/management

Of the company¡¯s other assets provision

6.8 Safeguarding of assets

6.9 Compliance

6.10 Control/Risk based perfection measurement

32

32

32

33

33

33

34

34

35

35

35

I.0 Internal Control Framework Policy

1.1Overview

The WAPIC INSURANCE Internal Control Framework provides a common

understanding of the internal control responsibilities of all WAPIC INSURANCE

employees. This policy outlines basic principles of internal controls, covering many

broad areas of the business, and applies to all business units worldwide. All WAPIC

INSURANCE employees must comply not only with the letter of this policy, but also its

spirit. An effective internal control system is a basic standard for both the operational and

financial integrity of results, and is an integral component of a well-managed, quality

operation.

1.2 Definition

The term "internal controls" refers to the overall operating framework of practices,

systems, organizational structures, management philosophy, code of conduct, policies

and procedures and actions which exist in the company and designed to:

? Ensure that essential business objectives are met, including the

effectiveness and efficiency of operations and the safeguarding of assets

against loss.

? Ensure the reliability of financial reporting and compliance with general

accounting principles.

? Ensure compliance with applicable laws and regulations.

? Ensure systematic and orderly recording of transactions.

? Provide reasonable assurance that undesired events will be prevented or detected

and corrected.

1.3Objectives of internal control

The primary objective of internal control system in an insurance company is to help

the company perform better through the use of its resources. Through internal control

system, the company identifies its weaknesses and takes appropriate measures to

overcome the same. The main objectives of internal control are as follows:

? Efficiency and effectiveness of activities (performance objectives).

? Reliability, completeness and timelines of financial and management

information (information objectives)

? Ensure adherence to policies and procedure put in place by the management

? Compliance with applicable laws and regulations (compliance

objectives)

1.3.1 General WAPIC INSURANCE Internal Control Objectives

? Achievement of Business Objectives.

? Safeguarding of assets

? Reliability of financial records.

? Customer and Regulation-Centric Internal Control Measures.

? Automation of Operational Control and Reconciliation activities in Wapic

insurance Plc

? Elimination of Prudential provision on other asset

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