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REPORTS OF THE BOARD OF DIRECTORS
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REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
and countries) as well as projects that have specific characteristics
or are exposed to specific risks. They are used to assess the technical
and financial progress of projects and update the understanding of
associated risks, and if needed, define appropriate action plans and
determine the ways and means to implement them (both for clients and
in-house).
Human resources, recruitment, and payroll management
Human resource requirements are determined by line management, and
the corresponding recruitment procedures are defined and managed
by each country’s Human Resources Department. Overall budgets for
remuneration increases are managed at the level of each operating
entity and each country and are reviewed and validated by the
management team.
Administrative procedures
Sales
All customer account openings in France are subject to an enquiry to
assure the client’s solvability (supported by a monitoring process to
alert the Company to any major changes in solvability). All customer
accounts are integrated into a recovery procedure based on adapted
reminder scenarii.
For this, the Company uses customer account and recovery management
software in France. This application is engaged at different levels from
the moment the invoice is issued: pre-reminders before the due date,
reminders, identification of payment delays, identification of disputes
and monitoring of their resolution, inventory of payment promises (and
verification of invoice payment at the announced dates).
Similar procedures, adapted on a case-by-case basis to the specific
businesses and countries, are implemented in the Group’s other entities
abroad. The resources thus engaged to prevent client risks and to
improve the effectiveness of trade receivables recovery allow the
Group, as far as possible, to limit losses on the latter, and ensure
good generation of operational cash flow.
In addition, strict internal rules applicable to all consolidated entities
state, depending on the type of projects (mainly time and materials,
work packages and fixed rate) and activites, stipulate the revenue
recognition procedures.
The Group has implemented reinforced General Conditions of Service,
which are systematically integrated into responses to calls for tender.
Real estate
The expression of needs in the search for new premises is formalised
by each operational manager, validated by the appropriate Business
Unit director and transmitted to the Group’s general services and/or the
country for processing and examination of the corresponding business
case. The study of the project and the dimensioning and cost of premises
selected come under the responsibility of the General Management.
The Procurement and General Resources Department then intervenes at
the different levels of negotiation to ensure the monitoring of leases in
France, and if necessary outside of France. Regular budgetary reviews
on premises, both inside and outside of France, enable a regular
exchange of information to take place between the General Services
and Management Control Departments to update data on the existing
premises and analyse on-going and future projects.
Delegations of authority
The principles of delegations of authority implemented meet a triple
objective:
●
raise awareness of operational directors on their responsibilities in
terms of health and safety;
●
create a power of representation for the Assystem Group for the
benefit of operational directors;
●
fix a precise framework within which the operational directors’
authority is exercised (including the possibility for sub-delegation).
The delegations mainly concern commitments directly linked to
operational areas (hiring of consultants or sales managers, signature
of customer contracts, dispute management, etc).
Bank signatures are only partly delegated, in France and abroad, and
for limited amounts.
Budgeting and management control
The Group’s different operational units draft and present their strategy
and annual budget to the General Management. The Group’s annual
budget is then approved by the Audit Committee and the Board of
Directors.
The Group Finance Department carries out a monthly analysis and cross-
check of the content of key reporting indicators in order to identify any
variation from forecasts and detect any significant shortfalls (notably
in terms of the gross margin on contracts, operating gross margin and
the operational non-billing rate and client payment times), and propose
remedial measures if required.
Purchases
Purchasing procedures are subject to independent controls:
●
issue of the need by the internal client;
●
purchase of the material or service by the concerned department
(general services, IT…);
●
validation of the service and/or delivery by the concerned service;
●
validation of the payment authorisation and invoice by the Accounting
Department based on the different documents.
Payment of invoices is organised by the Accounting Department, which
ensures that upstream controls have been carried out and by survey
also checks the information that enabled the invoices to be validated.
The Group has strengthened its General Purchase Conditions.
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ASSYSTEM
FINANCIAL REPORT
2015