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Going concern
The Directors confirm they are satisfied that the Group has
adequate resources to continue in business for the foreseeable
future. For this reason, they continue to adopt the ‘going
concern’ basis for preparing the accounts.
Internal control
The Directors have responsibility for maintaining an effective
system of internal control and for reviewing its effectiveness.
Such a system is designed to manage rather than eliminate
the risk of failure to achieve business objectives, and can only
provide reasonable and not absolute assurance against
material misstatement or loss. Throughout the year ended
31st December 2000 and to date the Group has operated a
system of internal control which provides reasonable
assurance of effective and efficient operations covering all
controls, including financial and operational controls and
compliance with laws and regulations. Processes are in place
for identifying, evaluating and managing the significant risks
facing the Group in accordance with the guidance ‘Internal
Control: Guidance for Directors on the Combined Code’ issued
by the Institute of Chartered Accountants in England and
Wales. The Board regularly reviews these processes through
the Board committees.
The Directors review the effectiveness of the system of internal
control annually. An internal control compliance certification
process is conducted throughout the Group in support of this
review. Quarterly risk reports are made to the Board covering
all risks of Group significance including credit risk, market risk,
operational risk, and legal and compliance risk. In between the
full reports the Board receives a monthly update on any risk
matters that need to be brought to the Board’s attention.
Regular reports are made to the Board Audit Committee by
management, Group Internal Audit, PricewaterhouseCoopers
and the compliance and legal functions covering particularly
financial controls, compliance and operational controls.
Separate audit committees are also established in Retail
Financial Services, Corporate Banking, Barclays Capital, Barclays
Global Investors and in North America and Asia Pacific. Reports
covering risk measurement standards and risk appetite are
made to the Board Risk Committee.
Reports to the Board and Board committees are underpinned
by the executive risk infrastructure. This is overseen by the
Group Risk Management Committee and Group Operating
Committee. Day to day responsibility is vested in the Director
Group Risk (for credit, market and operational risk) and in the
Group General Counsel (for legal risk). Under this structure
quantifiable risks are reported and controlled at varying levels
in the risk and executive hierarchy appropriate to their
magnitude. The key document for the Group’s internal control
processes is the Group Governance Manual which describes
the Group’s governance and control framework and details
Group policies and processes. The Manual is reviewed and
approved on behalf of the Board by the Board Risk Committee.
Further details of risk management procedures are given in
the Financial review on pages 36 to 57.
The system of internal financial and operational controls is also
subject to regulatory supervision in the UK and overseas, as
explained under Supervision and regulation on pages 58 and 59.
Statement of Directors’ responsibilities for accounts
The following statement, which should be read in conjunction
with the Auditors’ report set out on page 75, 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 1985 to
prepare accounts for each financial year which give a true
and fair view of the state of affairs of the Company and Group
as at the end of the financial year and of the profit or loss for
the financial year.
The Directors consider that, in preparing the accounts
on pages 76 to 134 and 156 to 165, and the additional
information contained on pages 68 to 73, the Group has
used appropriate accounting policies, consistently applied
and supported by reasonable and prudent 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 1985.
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.
Signed on behalf of the Board
Sir Peter Middleton
7th February 2001
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