Revised ICS Tool for the Public Sector

About the job

EU significantly eases reporting obligations. How does Switzerland respond?

Less obligation, less effort: The EU is easing its sustainability guidelines. Switzerland is caught between the Corporate Responsibility Initiative and ...

The fiduciary and auditing firm Mattig-Suter and Partner has had its own Excel-based tool for documenting the internal control system (ICS) since 2008.

As part of a HSLU student project, the tool was revised. The simplified operation makes it easier for our clients to implement and annually update the ICS.

The following decrees form the framework conditions for the Internal Control System in the canton of Schwyz:

§ 5 1. Controlling and Internal Control System

3 An internal control system (ICS) must be maintained, which includes regulatory, organisational and technical measures.

§ 50 3. Audit Committee

a) Tasks and powers

Para. 1 The audit committee examines the municipality's financial budget and its institutions.

Para. 2 It audits the budget and accounting and the financial statements in formal, legal and material respects and checks the existence of the ICS.

§ 8 2. Internal Control System

Para. 1 The municipal council ensures an appropriate and risk-oriented internal control system (ICS).

Para. 2 It takes the necessary regulatory, organisational, operational and technical measures to:

In particular, the following objectives are to be pursued with the Internal Control System:

The entry point to our ICS tool is the ICS cockpit, which distinguishes the following three blocks:

In this area, the fundamentals for the ICS are recorded in writing, which significantly shape the ICS. This includes, on the one hand, the ICS concept manual, which covers the following points and is approved by the municipal council:

The control environment forms the basis for every functioning ICS. If controls and their perception in the organisation are given little or no importance, even the best control system will never "come to life".

The control environment includes a checklist of ICS-relevant documents, whether they are available or not. This includes, among others, a description of the following documents:

Furthermore, the control environment records how the following areas are regulated internally within the municipality:

The important area "Information & Communication" on the other hand includes internal and external communication as well as the IT environment, which is becoming increasingly important nowadays.

As part of the annual revision, based on a critical assessment of the annual financial statements and the defined materiality, the key positions of the annual financial statements are determined.

Subsequently, within the process matrix, the connection of key processes with the key positions of the annual financial statements takes place. It is important that the focus is on the significant risks in order to enable appropriate and efficient ICS documentation.

The key processes are presented using flowcharts, which also show the identified risks and the defined controls. The tool offers you standard process templates, which should be adapted to individual needs. Our standard process templates include, among others:

In addition, there is the possibility to annually review your own ICS within the framework of a self-audit regarding adequacy and implementation.

Among the evaluations is, among others, the action plan, which serves as a to-do list and shows where there is still a need for action regarding the ICS. In addition, parts or the entire ICS can be downloaded or printed as a PDF.

Similar to the old ICS tool, our ICS tool offers you an organisation-specific and manageable ICS documentation without the purchase or maintenance of special software. Thanks to new functionalities, the recording of the ICS fundamentals as well as the linking of the key positions of the annual financial statements with the individual processes can be documented more simply and user-friendly.

The ICS remains an important topic for all public sector institutions to meet accountability requirements. We are happy to be available for the ICS tool presentation.