FINANCIAL REPORT - Française des Jeux

92 — 2010 FINANCIAL REPORT
– Accounting and Finance is responsible for the preparation of
the Group’s parent company fi nancial statements and the Group’s
annual and interim consolidated fi nancial statements. It ensures
and guarantees the integrity of the recognition of game-related
transactions and payments to gaming benefi ciaries, and the
collection of receivables from retailers.
– Treasury and Financing manage all movements and investments
of funds.
– Management Control, aided by the management controllers
assigned to each department and subsidiary, analyses results with
an analytical approach
– Finance Information Systems Project Management handles
project management tasks for the accounting and finance
information systems of la Française des Jeux.
The Act of 12 May 2010 requires online game operators to
establish, in their internal accounting, separate accounts for the
gaming and betting services offered by virtue of the licences
granted on the basis of this Act and for the company’s other
activities in France and abroad. For operators with exclusive rights,
such as la Française des Jeux, the separation of accounts refers to
the separation of the accounts for its monopoly activities from
those for its competitive activities.
The Regulation department ensures compliance of the
management of la Française des Jeux with the rules set by the
regulatory authorities and the fi nancial integrity of the games.
2.4.2. Organisation of accounting and fi nance
information systems
The real-time posting of draw-based games is done electronically.
Daily data from IT systems: player stake, cancellations and
payments of recorded prizes are reconciled with the data from
the accounting system.
For scratch games, the IT system provides centralised information
on prizes paid and ensures that winnings are only paid once.
Revenue is based on fi gures declared by sale agents, verifi ed at
the closing of tickets issuance and by monitoring the physical stock
of tickets during inventories carried out with the sale agents by
an appointed fi rm. For a very small portion of retailers, la Française
des Jeux has been calculating daily revenue since 2009 based on
ticket books activated and prizes paid.
For draw-based and scratch games, the reconciliation of data from
the IT systems those from the accounting systems makes allows
to validate the consistency of government levies and commissions
paid to the distribution network.
Fixed assets are managed in a software interfaced with the general
accounting information system.
The information necessary for payroll calculation is entered in an
application that allows salaries to be processed by a third party
service provider.
2.4.3. General information
The consolidated fi nancial statements of la Française des Jeux
Group have been prepared since 31 December 2008 in accordance
with International Financial Reporting Standards (IFRS) as adopted
by the European Union. Previously, they were prepared according
to French GAAP.
Financial closing procedure
A closing report is produced each year. It indicates the dates of
key deadlines and describes any legislative changes affecting the
closing. Outstanding items are reported to ensure that there are
no bottlenecks and to monitor their follow-up.
Closing dates
The Accounting and Finance department prepares the parent
company fi nancial statements, the annual and interim consolidated
fi nancial statements. The fi nancial closing of la Française des Jeux
and its subsidiaries takes place on 31 December of each year.
Procedures for management and processing
of off-balance sheet commitments
The procedures call for the systematic updating of off-balancesheet
commitments when a new contract, agreement or other
signifi cant operation to be declared is signed.
Procedures for tracking physical assets
Inventories of fi xed assets are facilitated by the electronic tracking of
equipment. Physical inventories are carried out every six months for
equipment such as terminals. Inventories are periodically carried out
for other assets.
Physical inventories of spare parts are carried out every six months
and are followed by continuous inventories.
Physical inventories of scratch games allocated to sale agents are
audited by the Finance department. This control consists in a
reconciliation between physical stocks and accounting stocks, which
is then audited by the independent auditors. At the close of each
issuance, the accounting stocks are reconciled with destroyed stocks
and declared sales.
All of these assets are regularly audited during physical inventories.
The independent auditors take part in any inventory that they consider
signifi cant.
Specifi c procedures to control fraud or errors
La Française des Jeux is organised in such a way as to ensure the
segregation of duties both through the distribution of fonctions
between different divisions and departments and through the
internal organisation of each unit. Monthly reporting by the
Accounting and Management Control department's enables