Report of the independent auditor

REPORTING REPORT OF THE INDEPENDENT AUDITOR

Report of the independent auditor

To the Governors of the European Bank for Reconstruction and Development

 

We have examined management’s assessment that the European Bank for Reconstruction and Development (the Bank) maintained effective internal controls over financial reporting as contained in the Bank’s Financial Report 2016, based on the criteria for effective internal controls over financial reporting described in the “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organisations of the Treadway Commission (2013 framework). Management is responsible for maintaining effective internal controls over financial reporting and for the assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express an opinion on management’s assertion over the effectiveness of the Bank’s internal control over financial reporting, based on our examination.

 

We conducted our examination in accordance with the International Standard on Assurance Engagements (ISAE) 3000. Our examination included obtaining an understanding of internal control over financial reporting, evaluating management’s assessment and performing such other procedures as we considered necessary in the circumstances. We believe that our work provides a reasonable basis for our opinion.

 

A bank’s internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A bank’s internal controls over financial reporting include those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the bank; (2) provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the bank are being made only in accordance with the authorisation of the bank’s management; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the bank’s assets that could have a material effect on the financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

 

In our opinion, management’s assertion that the Bank maintained effective internal control over financial reporting, included within the ‘Responsibility for external financial reporting’ section of the Bank’s Financial Report 2016 is fairly stated, in all material respects, based on the criteria for effective internal controls over financial reporting described in the “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organisations of the Treadway Commission (2013 framework).

 

This report, including the opinion, has been prepared for, and only for, the Board of Governors as a body in connection with management’s attestation for maintaining effective internal controls over financial reporting and for no other purpose.

 

We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come, save where expressly agreed by our prior consent in writing.

 

 

Deloitte LLP

Chartered Accountants

London, United Kingdom

8 March 2017

European Bank for Reconstruction and Development

One Exchange Square London EC2A 2JN United Kingdom

Tel: +44 20 7338 6000 Fax: +44 20 7338 6100

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