AFD - Universal Registration Document 2020

RISK MANAGEMENT 4 Risk management

4.3.2 Internal control procedures and organisation of audit trail for accounting and fi nancial information (Article Ǿ L. Ǿ 225-100-1-5)

The Group’s accounting is audited by two audit firms (KPMG and BDO) which were appointed by the Board of Directors on 2 Ǿ April 2020 for the six financial years in 2020-2025. The Regulatory Accounting Consolidation Department is in contact with the external auditors (statutory auditors, tax authorities, French Prudential Supervisory and Resolution Authority). An accounting procedures manual that includes procedures and accounting schematics for all transactions is available on the intranet site. It includes a procedure for accounting controls. With regard specifically to the audit trail, its functioning is described below. The accounting system is structured around a multi-company (AFD-Proparco-Sogefom) and multi-currency accounting software package powered by business applications and auxiliary accounting systems. The conversion of foreign currency transactions is performed by a specific module of the accounting software package, which publishes control reports at each step of the conversion and calculation of translation adjustments. A procedure describes the controls to be performed at each stage of the conversion treatment for the exchange positions until the determination of translation adjustments. An “Infocentre” application makes it possible to retrieve the accounting information for balances and accountingmovements for each transaction or at the desired aggregated level. In accordance with Article Ǿ 85 of the Decree of 3 Ǿ November 2014, the audit trail allows the unitary event to be traced back to the accounting aggregate or, conversely, from the accounting aggregate to the corresponding unit events. In the case of a grouping of accounting movements within an upstream interface, the audit trail also makes it possible to retrieve the unit events that make up those grouping movements. In addition, all IT applications owned by the Regulatory Accounting Consolidation Department have IT security classification in terms of (i) Ǿ availability (availability required in the event of an extreme shock and current service availability), (ii) Ǿ integrity (capacity to prevent unauthorised modification of the information), (iii) Ǿ confidentiality (ownership of information that should not be available or disclosed to unauthorised individuals, entities or processes) and (iv) Ǿ proof (ability to identify the individual, entity or automated process from whom or which access to information originated). 4.3.3 Credit risk 4.3.3.1 Credit risk measurement and monitoring system The system in place to measure and monitor credit risk is described in Paragraph Ǿ 6.2.5 “Risk Information”. 4.3.3.2 System of operational limits Thesystemof operational limits isdescribed inParagraph Ǿ 6.2.5.1.

The AFD Group’s accounting is handled by the Regulatory Accounting Consolidation Department of the AFD Finance Department (DEF). The activities of this department include: P the accounting registration of transactions initiated at the Head Office on the accounts payable, fixed assets, investments and services functions; P auditing of local office and regional department accounts; P the control of the centralisation in the general accounting of ancillary accounts and the implementation of accounting controls on all sectors; P tax returns with the exception of those relating to wages and the building; P the preparation of the parent company financial statements in accordance with French standards and the consolidated financial statements in accordance with IFRS; P regulatory reporting (mainly SURFI, FINREP and COREP statements); P and, for the subsidiaries, Sogefom, Proparco and Soderag: bookkeeping using French standards, the production of the half-year financial statements (quarterly in the case of Proparco) and of fiscal and regulatory declarations (SURFI – Balance of payments). The accounting recognition of loans, grants and guarantees granted is carried out by the Accounting Controls Support Division of the Funding Financial Management department. Accounting controls are carried out by the Regulatory Accounting Consolidation Department. The accounting recognition of market transactions (borrowings, derivatives and short-term investments) is carried out by the Post-Market Division of the Treasury and Financial Markets Department. Accounting controls are carried out by the Regulatory Accounting Consolidation Department. Personnel expenses and provisions related to personnel expenses are recognised in the accounts by the Compensation, Welfare and Expatriation Division of the Human Resources Department. Accounting controls are carried out by the Regulatory Accounting Consolidation Department. The separation between the engagement, accounting and execution functions for treasury operations is maintained by both the organisation of services and the implementation of procedures. Accounting entry is largely decentralised (international offices, other Head Office services). Accounting control is split between banking operations and general expenses.

104

www.afd.fr

2020 UNIVERSAL REGISTRATION DOCUMENT

Made with FlippingBook Online newsletter