APC 2015 Annual Report Download - page 170

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC168
CORPORATE GOVERNANCE
3INTERNAL CONTROL AND RISK MANAGEMENT
•signifi cant fi nancial, management and operating information is
accurate and reliable;
•compliance with laws and regulations and with the Group’s
policies, standards, procedures is ensured;
•compliance with the instructions of the head of the Group is
ensured;
•acquisition of resources is carried out at a competitive cost, and
theirprotection is ensured;
•correct integration and control of acquisitions is ensured.
Annual internal audit plans are drawn up based on risk and control
concerns identifi ed by Senior Management, taking into account the
results of past audits, the work performed by the statutory auditors
and the results of internal control self-assessments returned by the
units. When necessary, the audit plan is adjusted during the year
to include special requests from Senior Management. The internal
audit process is described in the Section «Control procedures »
below.
After each internal audit, a report is issued setting out the auditors’
fi ndings and recommendations for the units or function audited.
Measures are taken to monitor implementation of recommendations
and specifi c audits are conducted if necessary.
The audit reports and the implementation of its recommendations
are distributed to Senior Management and to the Audit Committee.
The statutory auditors also have access to the reports.
Internal Control Department
The Internal Control Department, which reports to the Internal Audit
Department, is responsible particularly for:
•defi ning and updating the list of Key Internal Controls in close
cooperation with the Global Functions and in line with the
recommendation of the AMF reference framework;
•maintaining and leading a network:
–they follow implementation by the units within their scope
of the internal control action plans defi ned following self-
assessments or internal control missions,
–29 regional internal controllers carry out training in the units
and on-site control of the accuracy of self-assessments and
the effi ciency of the remediation plans implemented as a
result of the previous year’s self-assessments, by the units
coming within their geographic scope. After each internal
control mission, a report is issued setting out fi ndings and
recommendations for the attention of the persons in charge
of the unit audited;
•organizing and monitoring the roll-out of self-assessment
campaigns, internal control missions and the implementation of
set action plans following self-assessments or internal control
missions.
The team work to improve internal control and adapt procedures in
light of the results of self-assessments and changes in the business
environment or organization.
Finance and Control– Legal Affairs
Department
The Finance and Control – Legal Affairs Department is actively
involved in organizing control and ensuring compliance with
procedures.
Within the department, the Management Control and Accounting
unit plays a key role in the internal control system by:
•drafting and updating instructions designed to ensure that
statutory and management accounting practices are consistent
throughout the Group and compliant with applicable regulations;
•organizing period-end closing procedures;
•analyzing performance and tracking the achievement of targets
assigned to the operating units.
The Management Control and Accounting unit is responsible for:
•the proper application of Group accounting principles and
policies;
•the integrity of the consolidation system database;
•the quality of accounting and fi nancial processes and data;
•training for fi nance staff by developing and leading specifi c
seminars on the function;
•drafting, updating and distributing the necessary documents for
producing quality information.
The unit drafts and updates:
•a glossary of terms used by the Management Control and
Accounting unit, including a defi nition of each term;
•the chart of accounts for reporting;
•a Group statutory and management accounting standards
manual, which includes details of debit/credit pairings;
•a Group reporting procedures manual and a system user’s guide;
•a manual describing the procedures to be followed to integrate
newly acquired businesses in the Group reporting process;
•an intercompany reconciliation procedure manual;
•account closing schedules and instructions.
The Management Control and Accounting unit monitors the reliability
of data from the subsidiaries and conducts monthly reviews of the
various units’ primary operations and performance.
The Finance and Control – Legal Affairs Department oversees
tax and legal affairs, to provide comprehensive management of
theserisks.
Within the Finance and Control – Legal Affairs Department, the
Finance and Treasury Department is responsible for:
•centralized management of cash and of all long-term Group
fi nancing;
•centralized management of currency risk and non-ferrous metals
risk;
•monitoring of Group trade accounts receivable risk and the
defi nition of the hedging policy to be implemented;
•the distribution of rules for fi nancial risk management and the
security of incoming and outgoing payments;