Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
The board has reviewed the effectiveness of
the group’s system of internal control and has
taken account of material developments which
have taken place since September 30 2011. It
has considered the major business and financial
risks, the control environment and the results of
internal audit. Steps have been taken to embed
internal control and risk management further
into the operations of the group and to deal
with areas of improvement which have come to
management’s and the board’s attention.
Key procedures which the directors have
established with a view to providing effective
internal control, and which have been in place
throughout the year and up to the date of this
report, are as follows:
The board of directors
● the board normally meets six times a year to
consider group strategy, risk management,
financial performance, acquisitions, business
development and management issues;
● the board has overall responsibility for the
group and there is a formal schedule of
matters specifically reserved for decision by
the board;
● each executive director has been given
responsibility for specific aspects of the
group’s affairs;
● the board reviews and assesses the group’s
principal risks and uncertainties at least
annually;
● the board seeks assurance that effective
control is being maintained through
regular reports from business group
management, the audit committee and
various independent monitoring functions;
and
● the board approves the annual forecast
after performing a review of key risk
factors. Performance is monitored regularly
by way of variances and key performance
indicators to enable relevant action to
quarter. The board considers longer-term
financial projections as part of its regular
discussions on the group’s strategy and
funding requirements.
A risk committee, comprising the company’s
chairman, managing director and finance
director, is responsible for managing and
addressing risk matters as they arise.
During the year and up to the approval of this
annual report and accounts the board has not
identified nor been advised of any failings or
weaknesses in the group’s system of internal
control which it has determined to be significant.
Therefore a confirmation of necessary actions
has not been considered appropriate.
Investment appraisal
The managing director, finance director and
business group managers consider proposals
for acquisitions and new business investments.
Proposals beyond specified limits are put to
the board for approval and are subject to due
diligence by the group’s finance team and,
if necessary, independent advisors. Capital
expenditure is regulated by strict authorisation
controls. For capital expenditure above specified
levels, detailed written proposals must be
submitted to the board and reviews are carried
out to monitor progress against business plan.
Accounting and computer systems
controls and procedures
Accounting controls and procedures are
regularly reviewed and communicated
throughout the group. Particular attention is
paid to authorisation levels and segregation of
duties. The group’s tax, financing and foreign
exchange positions are overseen by the tax and
treasury committee, which meets at least twice
a year. Controls and procedures over the security
of data and disaster recovery are periodically
reviewed and are subject to internal audit.
Internal audit
The group’s internal audit function is managed
by DMGT’s internal audit department, working
closely with the company’s finance director.
Internal audit draws on the services of the
group’s central finance teams to assist in
completing the audit assignments. Internal audit
aims to provide an independent assessment as
to whether effective systems and controls are in
place and being operated to manage significant
operating and financial risks. It also aims to
support management by providing cost effective
recommendations to mitigate risk and control
weaknesses identified during the audit process,
as well as provide insight into where cost
efficiencies and monetary gains might be made
by improving the operations of the business.
Businesses and central departments are selected
for an internal audit visit on a risk-focused basis,
taking account of the risks identified as part
of the risk management process; the risk and
materiality of each of the group’s businesses;
the scope and findings of external audit work;
and the departments and businesses reviewed
previously and the findings from these reviews.
This approach ensures that the internal audit
focus is placed on the higher risk areas of the
group, while ensuring an appropriate breadth
of coverage. DMGT’s internal audit reports
its findings to management and to the audit
committee.
Corporate Governance
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Our Performance
be taken and forecasts are updated each
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