Nevertheless, we have worked to establish and maintain an internal management framework based on the principles of sound resource management followed in the public service.

Delegated acts should also be adopted to specify the risk management functions to be employed; the appropriate frequency for review of the risk management system; how the risk management function should be functionally and hierarchically separated from the operating units, including the portfolio management function; the specific safeguards against conflicts of interest; and the risk management requirements to be employed by AIFMs.

1. Member States shall require management companies, where appropriate and proportionate in view of the nature, scale and complexity of their business and the nature and range of collective portfolio management activities undertaken in the course of that business, to establish and maintain an internal audit function which is separate and independent from the other functions and activities of the management company.

To ensure that a management company has an adequate control mechanism, a permanent compliance function and an internal audit function are necessary.

A series of initiatives, including requiring that internal audits be posted on websites and submitted to the Treasury Board Secretariat, was undertaken in that period so that there would be greater public reporting of the internal audit function to provide light on management issues.

The evaluation is a task that falls primarily to the operational DGs. - Financial Control develops the internal audit function in depth and scope, on the basis of an annual work programme covering audits of system, management, performance and accounting. - The Commission asks departments to ensure, when drafting a regulation, that it is clear and amendable to control and contains safeguards against attempted fraud. -Since there is a need to establish integrated resource management, the Commission agreed to set up a human resource management system similar to and synchronized with the system already in place for finan ...[+++]cial resources.