Annual Report 2008 - Securitas

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130 Corporate Governance Board of Directors report on corporate Governance and Internal control Organization of Internal Control cEO SvP Finance Group Management Divisional Management Operating Management (country/region, branch office) C. Functional committees Group Legal Group risk Organization Divisional controllers Local controllers Shareholders Board of Directors Direct line of reporting coordination responsibility D. F. G. Management Assurance Function for monitoning the Internal control E. Group Activities risk and control diagnostics performed by external party Divisional activities Local activities Audit committee External audit Division audit Local audit 1. Ownership of risk 2. A strong controller organization 3. Monitoring of internal control 4. Audit A. – G. correspond to the descriptions on pages 129–131. Securitas Annual report 2008 A. B.
E. Management Assurance – Function for Monitoring the Internal Control The Group has established an objective coordinating function in relation to certain internal control activities at Group level reporting directly to the Senior vice President Finance with an open line of communication to the Audit committee. The results of the function’s work during the year are presented at the Audit committee meetings. In line with one of the Group’s fundamental principles, this function has continued to develop step-by-step and improve the Group internal control through different activities during the year. Specific focus has been put on improvement of follow up procedures and reporting as well as identification of risks related to financial reporting. Experiential exchange through the different activities is also a key part of improvement of control environment. The function works with a combination of internal resources and resources in form of external auditors and consultants depending on the specific situation/area. The current responsibilities include: · Assistance in the control self-assessment process specifically ensuring follow-up where required · Monitoring the results of the risk and control diagnostics undertaken during the year and ensuring appropriate follow-up of agreed actions · Assistance in risk management development, implementation and coordination processes. · Determine and plan for areas of specific focus and/or control diagnostics based on risk assessments made, discussions with divisional management and audit findings · Monitoring communication from the external auditors and ensuring prompt follow-up and implementation of any recommendations impacting the internal controls of the company · Support Group management in reviewing and discussing audit plans with external auditors in order to internally coordinate and communicate matters such as; scoping, timing, documentation requirements, etc · coordinating the process of updating and renewing the Group Policies and Guidelines, contributing with feedback on the reporting Manual and the IT Security Manual. F. Group Legal Function The legal function is responsible for maintaining an adequate infrastructure to ensure that legal matters are appropriately and in a timely manner brought to the attention of the Group management. The function is headed by the Senior vice President chief Legal counsel – a member of the Group management. The legal function further monitors and manages legal risk exposures identified by the operating units. A report on outstanding legal disputes is provided to Group management monthly. A comprehensive report on major legal matters is provided by the legal function to the Audit committee on a quarterly basis. G. Group Risk Organization The Group Risk Organization is responsible for providing Securitas with opportunities to take and manage the risks that are necessary in order to ultimately achieve Securitas strategies and goals. risk management is an integral part of the Securitas culture. The risk management process continuously evolves as a process. The risk management of the Group is further described on pages 38–41. Internal Audit Function Assessment Basis for Assessment In compliance with the requirements of section 10.6 of the Swedish code of corporate Governance, the Board has developed a process for evaluating the need for the Group to develop an internal audit function. The foundation of the Board’s assessment has been to evaluate how the Board and Group Management manage risks and monitor operations in the most effective way. In this assessment it was considered if an internal audit function further would help the Board to acheive its objectives and add shareholder value. The assessment process highlighted certain inherent risks in the Group’s business model and organizational structure such as the decentralized structure and the result-driven culture. The assessment process also involved analyzing the major control mechanisms in place to address these inherent risks. The Board´s analysis shows that there are several control activities, summarized on pages 128–129, that are carried out within the company in a way that reduce the need to develop an internal audit function. Furthermore there is a strong common culture and monitoring activities in place, including the Model for Financial control (Securitas Six Fingers), implemented at all levels in the organization. These factors in combination with a well established allocation of responsibilities ensures accuracy and completeness of financial reporting. All of these components including the development of the activities undertaken by the Management Assurance function enables a well-functioning monitoring structure. The current Management Assurance solution also entail greater flexibility and responsiveness to the risks faced by the company which fits our business model. Assessment In the light of the assessment made as described above, it has not been deemed necessary to create a special Internal Audit Function. The assessment performed by the Board of Directors will be carried out on yearly basis as a part of the corporate governance process within the Group. Stockholm, March 10, 2009 The Board of Directors of Securitas Corporate Governance Board of Directors report on corporate Governance and Internal control Securitas Annual report 2008 131
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Annual Report 2008
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Securitas in short Sales by busines
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” Business relationships are loca
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during the second half of the year.
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The cornerstones of our strategy Hi
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The Business model for Specialized
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Industry/Manufacturing - Case #1 pa
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Our Security officer Andy Price per
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Estuardo Turcios, one of Securitas
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Euclides Vieira, a mobile services
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Our security officer Marc Jessen he
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Security Services North America pro
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Events and key figures for 2008 ·
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Leading the Specialization in Europ
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Events and key figures for 2008 Acq
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Events and key figures for 2008 Acq
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Growing in New Markets A cornerston
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services. Asia is the third-largest
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Securitas’ monitoring services ar
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work with independent and strong lo
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Volume-related factors The first tw
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Business Risk Evaluation Model Secu
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A Securitas risk management case to
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an environmental impact from a life
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Turnover The turnover of Securitas
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DATA PER SHARE SEK/share 2008 2007
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Taxes, net income and earnings per
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Acquisitions have increased acquisi
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GRB Security, United Kingdom Securi
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Germany - U.S. Army Securitas Germa
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Items affecting comparability For t
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Proposed allocation of earnings The
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Securitas’ financial model - cons
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Note 1 General corporate informatio
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IFRS 8 Operating segments The Group
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Joint ventures (IAS 31) The proport
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Items affecting comparability This
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Employee benefits (IAS 19) The Grou
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Free cash flow in relation to net d
Page 83 and 84: After the services had been substan
Page 85 and 86: Interest rate fixing It is the poli
Page 87 and 88: AccOUNTS rEcEIvABLE AND AGEING ANAL
Page 89 and 90: are transferred from the individual
Page 91 and 92: Shareholdings The Board of Director
Page 93 and 94: JANUAry - DEcEMBEr 2007 MSEK Income
Page 95 and 96: AUDIT FEES AND rEIMBUrSEMENTS MSEK
Page 97 and 98: DEFERRED TAx ASSETS WERE ATTRIBUTAB
Page 99 and 100: Acquisitions GRB Security, United K
Page 101 and 102: Purzeczko, Poland Securitas has acq
Page 103 and 104: Impairment testing For the purpose
Page 105 and 106: Note 20. Tangible non-current asset
Page 107 and 108: Note 29. Changes in shareholders’
Page 109 and 110: Note 32. Provisions for pensions an
Page 111 and 112: MAIN AcTUArIAL ASSUMPTIONS 2008 200
Page 113 and 114: Globe and other Securitas companies
Page 115 and 116: Annual report Parent Company financ
Page 117 and 118: Balance sheet MSEK Note 2008 2007 2
Page 119 and 120: Note 40. Accounting principles The
Page 121 and 122: Note 44. Personnel AvErAGE NUMBEr O
Page 123 and 124: cHANGE ANALySIS OF SHArES IN SUBSID
Page 125 and 126: To the annual meeting of the shareh
Page 127 and 128: Significant Shareholders The princi
Page 129 and 130: The Work of the Board of Directors
Page 131 and 132: Insider Policy and Records The Boar
Page 133: 3. Financial Reporting controllers
Page 137 and 138: Sofia Schörling Högberg b. 1978 D
Page 139 and 140: Bart Adam Bart Adam b. 1965 Divisio
Page 141 and 142: MSEK 2004 2005 2006 2007 2008 CAPIT
Page 143 and 144: Statement of income 2007 MSEK q1 20
Page 146: Securitas AB Box 12307 SE-102 28 St
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Annual Report 2008 - Securitas

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