FINANCIAL REPORT - Française des Jeux

Internal Audit, Internal Control and Quality Assurance
Internal audit
Based on the mapping of the company’s major risks, the Group’s
Audit, Internal Control and Quality Division prepares an annual
audit plan, approved by the Audit Committee, facilitating the
periodic evaluation of the main activities of la Française des Jeux
Group. In addition to this au dit plan, unscheduled audits are
also conducted during the fi nancial year stemming from new
needs or any irregularities to be analysed.
Reference framework
Although it is exempted from any legal requirement regarding
internal control, la Française des Jeux has chosen to structure its
approach based on the recommendations of the French fi nancial
markets authority, the Autorité des Marchés Financiers (AMF). In
addition, because of the particular requirements relating to fraud
that apply to la Française des Jeux (Perben Act, reputational risk
strongly linked to the risk of fraud, etc.), the Group has opted to
supplement this reference with the elements specifi c to fraud
prevention issued by the COSO (the Committee of Sponsoring
Organizations of the Treadway Commission).
Diagnostic of internal control maturity
In addition to its audits ass ignments aiming at periodically
assessing the way the Group functions, the Audit, Internal Control
and Quality Division has for several years implemented a recurring
internal control and quality assurance process that encompasses:
– a review of accounting and fi nance processes in the broad sense
– a review of la Française des Jeux’s core business processes
– an evaluative description of the “internal control environment”,
through an ongoing diagnostic of management and governance
controls.
Within this context, in 2010 the Audit, Internal Control and
Quality department launched an internal control maturity
diagnostic of la Française des Jeux Group which notably responds
to the objective of “reliability of fi nancial information” proposed
by the AMF.
The purpose of this diagnostic is to assess the maturity level of
the internal control mechanisms of la Française des Jeux Group
and to identify possible areas of progress as compared to the
expectations of the marketplace.
It should be noted that in December 2010, la Française des Jeux
received the “Best Internal Control System” award, one of the
fi ve awards of the fi rst edition of the Internal Control Awards
(Trophées du contrôle interne), organised by the French Institute
of Audit and Internal Control (IFACI) and Bearing Point consultancy.
These awards, handed down by a jury of experts from the world
of fi nance, internal control and audit, are designed to reward best
practices in the fi eld of internal control, risk management and
auditing. La Française des Jeux is one of fi ve winners from among
more than 200 companies and public entities, coming from 15
different sectors.
Quality Management System
LA FRANÇAISE DES JEUX — 91
In 2010, the Audit, Internal Control and Quality Division continued
its quality assurance work based on the standard ISO 9001:
– coordination of the Quality Management System, process
updates, quality assurance audits, monitoring of corrective and
preventative actions follow-up, etc.
– implementation of a “decentralised” system allowing entities
wanting to get further involved in a quality assurance process—
and in particular the Network Administration department in
charge of issuing licences to retailers—to obtain ISO 9001
certifi cation.
In 2010, la Française des Jeux’s sustainable development initiative
relied notably on the operating processes of the Quality
Management System. This system applies to all business processes
and will gradually be extended to increase the Group’s level of
corporate social responsibility towards all its stakeholders (internal
and external). The processes management resulting from this
approach is a monitoring tool designed to be used at all levels of
the company.
The objectives, indicators and actions management regarding the
sustainable development of the company is incorporated into the
Quality Management System, ensuring the continuity and the
constant questioning of the company in meeting the challenges
of sustainable development.
2.3.5. Legal and operational controls exercised by the
parent company on its subsidiaries
The companies of la Française des Jeux Group, with the exception
of Société de Gestion de l’Échappée, Beijing Zhongcai Printing
Co. Ltd., Services aux Loteries en Europe, and Laverock von Shoultz
(LVS), are managed by employees of la Française des Jeux. Business
strategy is coordinated with la Française des Jeux strategy.
Subsidiaries report on a quarterly basis, although decisions
concerning structural operations are made within the management
bodies of la Française des Jeux. Subsidiaries use la Française des
Jeux’s support services as they need to, such as accounting,
procurement, legal affairs, and human resources. Their activities
also fall automatically within the scope of the Audit, Internal
Control and Quality Division.
2.4. INTERNAL CONTROL RELATING TO
THE PREPARATION OF THE PARENT COMPANY’S
FINANCIAL AND ACCOUNTING INFORMATION
2.4.1. Organisation of the accounting and fi nance
function
The Finance and Control Division, reporting directly to the
Executive Management of la Française des Jeux, includes the
following entities within its Finance department: