Assystem - 2015 Registration Document

REPORTS OF THE BOARD OF DIRECTORS

REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS

8.1.3.3 Components of the internal control system The main procedures of the internal control system, in particular those relating to the preparation and processing of accounting and financial information, are described in the section that follows on “Organisation, responsibilities, operating procedures and tools”. 8.1.3.3.1 ORGANISATION, RESPONSIBILITIES, OPERATING PROCEDURES AND TOOLS Organisation By and large, the Group’s organisational structure is largely decentralised, which by definition results in a high degree of delegation. The delegation of operational, functional and legal responsibilities to Assystem’s Company officers and managers requires an internal control system adapted to this type of organisation. Thus, the internal control system and information systems that the Group has chosen to implement contribute to monitoring its operations whilst respecting the principles of decentralisation and delegation. Delegations of authority and responsibilities are drawn up in writing after approval by management. The Group’s Code of Conduct, validated by the Board of Directors, is available to all employees. Responsibilities The responsibilities assigned to employees are set out in writing in job descriptions which are validated by their line managers and supplemented, where applicable, by delegations of authority. Job descriptions help to clarify the nature of the work and transactions for which the employees are responsible by clearly setting out the type and method of supervision applicable and by integrating, where required, the internal control dimension by setting out their responsibilities related to complying with and updating procedures, etc. The delegations of authority describe the permanent or temporary transfer of responsibilities and chiefly relate to the departments involved in financial transactions (incurring and authorising capital expenditure, ceilings set regarding procurement, supplier payments, etc.). The bank signing powers put in place at local level must reflect these delegations of authority as closely as possible. Having suitable resources to achieve its objectives is essential for the Group, owing, in particular, to the high levels of staff turnover. The human resources managers play a key role in guaranteeing this suitability. In conjunction with the operating divisions, they draw up staff training plans and coordinate annual performance appraisals during which the achievements for the past year are reviewed, targets for the following year are set and the skills that need to be acquired or consolidated are identified.

Operating procedures Business operating procedures

The Group has a quality management system (QMS) for operations in place in France, the United Kingdom and in Germany, which are the three main countries in which the Group operates, available on the Group’s intranet. The QMS is also applicable to other significant countries for the Group’s business. This system includes a map of business processes and a set of related procedures and instructions. The quality managers use this system to carry out periodic audits aimed at assessing whether the applicable quality standards are being complied with. Pre-sales and client contracts Pre-sales and client contract processes are defined in the QMS. Before any bid is submitted, an internal decision-making process takes place on whether or not to actually respond to the client’s invitation to tender. If the decision is positive, a technical and commercial bid is drawn up and is then subject to validations concerning its technical, financial, and legal aspects. Performing services and reviewing ongoing projects Contracts are managed by project managers. Monthly reviews involving an examination of the project’s technical status, related costs and revenues, cash flow curve and margin on completion are organised, at an operational level, around major fixed-fee projects. In addition, within the Group, a task force (essentially made up of operations managers) conducts periodic audits covering all of the Group’s business units. Already strengthened at the end of 2014, this team will once again be reinforced at the start of 2016 with the addition of new auditors specially trained for this purpose. This project management system has been reinforced via the creation of the Project Management Community, which now provides a forum for around 500 of the Group’s leading project managers to exchange ideas, share experiences and achieve continuous improvement. Created simultaneously to strengthen the project culture within the Group, the Project Management Institute provides a specific and structured training course each year, allowing the development and assessment of project managers’ skills. In 2015, a new “Earned Value Management” training scheme was added to the catalogue. The risk analysis procedure created in 2013 has now been completely rolled out across all existing offerings and contracts. Around 50 project managers are trained every year in this procedure. Project reviews are also organised on a quarterly basis at the Group’s head office in the presence of the Deputy Chief Executive Officer & Chief Financial Officer and the Executive Vice-President in charge of HR development. These reviews relate to projects that represent amounts exceeding a certain threshold (variable depending on the scopes

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ASSYSTEM

FINANCIAL REPORT 2015