For the first time in his capacity as chairman of the newly constituted Audit and Compliance Committee and as a follow up to one of the decisions of last year’s Congress in Budapest to extend the Committee’s scope to include compliance, financial and compensation oversight in its tasks, Domenico Scala reported at this year’s Congress on FIFA’s financial consolidated statements for 2012.
According to the FIFA Statutes, the extended responsibilities of the Audit and Compliance Committee include the control on the completeness and reliability of the financial accounting, the review of the consolidated financial statements as well as the external auditors’ report (KPMG).
"While many improvements have taken place in recent years, I am convinced that the Committee can contribute to further enhancing confidence in the integrity of FIFA’s financial reporting, improve organisational processes and standards as well as maintaining an effective compliance programme. My colleagues and I in the Audit and Compliance Committee are committed to fulfilling our oversight role and contribute to the overriding objective of this governance reform process: the strengthening of FIFA’s governance and enhancing the reputation of this unique organisation," said Scala addressing the delegates from FIFA’s 209 member associations.
The new structure and statutory mandate of the FIFA Audit and Compliance Committee is one of the outcomes of the extensive governance reform process that FIFA started two years ago at the proposal of the FIFA President with the objective to put in place measures, enhancing mainly the areas of transparency, compliance and ethics.
In this context, the former Audit Committee has been renamed Audit and Compliance Committee in order to reflect the addition of compliance in its activities with new provisions regarding the composition process and the requirements for its members: the chairman and deputy chairman must fulfil the independence criteria set out in the FIFA Statutes, all members are subject to integrity checks prior to election and must have a specific professional background while their election is conducted directly by the FIFA Congress.
Domenico Scala - first chairman of the new Audit and Compliance Committee, ratified at the FIFA Congress in 2012 on a proposal from the Independent Governance Committee and formally elected this year - expressed his satisfaction on the initiative of this process: "I would like to congratulate the Congress for its support to the FIFA President’s proposal to initiate a governance reform process two years ago".
Within the overall measures aiming at strengthening transparency, compliance and the internal control environment of the organisation, a Compensation Sub-Committee is also put in place composed of the chairman of the Audit and Compliance Committee, the chairman of the Finance Committee and one independent member with duties, among others, the definition of compensation rules of the FIFA President, the members of the FIFA Executive Committee and the FIFA Secretary General as well as to monitor compliance with these rules.