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REPORTS OF THE BOARD OF DIRECTORS
8
REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
The overall system also involves the participation of external players,
including the Statutory Auditors. It is not part of the legal engagement
of the Statutory Auditors to assume ownership of the internal control
and risk management systems. Their responsibility is to review these
systems and to issue an independent opinion on their suitability. Each
year the Statutory Auditors perform a Group audit as part of their legal
engagement to certify the consolidated financial statements and to audit
the separate financial statements of Group companies. In compliance
with French commercial law, the certification of Assystem’s consolidated
and parent company financial statements is carried out by two Statutory
Auditors, who jointly examine all the financial statements, the methods
used for their preparation and specific internal control procedures
related to the preparation of accounting and financial information. The
Statutory Auditors present their observations concerning the Chairman’s
report and the internal control procedures relating to the preparation
and processing of accounting and financial information, and they certify
that the other information required by law has been disclosed.
8.1.3.2
Internal control objectives
The Group’s internal control system aims to provide appropriate and
reasonable assurance of:
●
the reliability of financial information;
●
compliance with the applicable legislation and regulations;
●
the proper functioning of internal processes, such as those used to
safeguard the Company’s business and assets;
●
the application of instructions and guidelines stipulated by the Board
of Directors.
More generally, it helps the Group manage its business activities and
ensure the effectiveness of its operations and processes and the efficient
use of its resources.
In line with the above, the internal control system has five main objectives which can be summarised as follows:
Objective
Reasonable assurance
Finance
That the financial information produced and published is reliable.
Compliance
That the applicable laws, regulations, standards and all other obligations are respected.
Operations
That operations, activities and processes work effectively and efficiently.
Integrity
That assets (human, tangible and intangible) are secure and protected.
Strategy
That the Group’s strategy and the resources put in place to implement it contribute to achieving the objectives
of growth, profitability and business sustainability.
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 below, “Organisation,
responsibilities, operating procedures and tools”.
8.1.3.3.1 ORGANISATION, RESPONSIBILITIES, OPERATING PROCEDURES
AND TOOLS
Organisation
The Group’s organisational structure is largely decentralised, which
by definition results in a high degree of delegation of operational,
functional and legal responsibilities to company officers and managers.
Its internal control system and information systems therefore need to be
adapted to this structure in order to effectively contribute to monitoring
its operations.
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 describing 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, notably due to the high levels of staff turnover. The Human
Resources Departments play a key role in guaranteeing this suitability.
In conjunction with the Operations Departments, 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.
ASSYSTEM
REGISTRATION DOCUMENT
2016
166