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REPORTS OF THE BOARD OF DIRECTORS
8
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