Econocom - 2019 Universal registration document

05 management report

corporate governance statement

Description of 5.3. internal control and risk management procedures in the context of the preparation of the financial information The financial information communicated by the Group refers to its consolidated financial statements and to the management accounting aspects of the financial statements published in compliance with IFRS ژ as adopted by the European Union and approved by the Board of Directors. This financial information is, at every reporting date, presented to the Group’s Audit Committee, and explained to all the Directors. FINANCIAL ORGANISATION 5.3.1. The Group’s financial organisation is both local and global. The Group is organised by business line and country. Financial processes are implemented by finance teams, Finance Directors and financial controllers, all of whom report to the Group Financial Controller. Business and country Financial Controllers ensure that the reporting rules and practices are applied consistently across the business lines, irrespective of the country. COORDINATION OF 5.3.2. REPORTING AND CONSOLIDATION The accounts are consolidated by a dedicated team on a quarterly basis. The consolidated companies send their detailed financial statements via the consolidation tool for inclusion in the consolidated financial statements. Each entity ( i.e ., company or business unit) draws up a budget. Profit forecasts are adjusted several times during the year and are monitored on a monthly basis based on the activity reports provided to Group

Management. These reports are drafted jointly by the entity’s operational manager and Financial Controller. The Group’s Financial Controlling draws up schedules and specific instructions for the various budgets, reports and the items needed for the purpose of consolidation. ACCOUNTING STANDARDS 5.3.3. AND MONITORING The Group’s accounting principles are set out in an accounting principles manual which is used as the basis for preparing financial information. This manual describes the method for recording transactions and presenting financial information. The team in charge of consolidation is also responsible for keeping abreast of changes to IFRSs. IT SYSTEMS 5.3.4. The Information Systems Department oversees the various information systems used by the Group. It ensures the gradual harmonisation of the solutions implemented and the continuity of operations. In the preparation of financial information, information flows from IT tools specific to the various businesses are centralised in a single accounting management and reporting solution. RISK FACTORS, 5.3.5. SURVEILLANCE AND MONITORING The monthly reports enable the various operational and financial managers and the Group’s Management to verify that the Group’s results are accurate and consistent with the targets set. At the end of each quarter, they contain a comparison between the management data and the Group’s consolidated financial statements in order to ensure that the financial information is reliable.

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2019 annual report