2010 REGISTRATION DOCUMENT - Iliad

16 Internal
FUNCTIONING OF THE COMPANY’S ADMINISTRATIVE AND MANAGEMENT BODIES
control
The main committees – which are made up of operations, accounting and fi nance staff – are as follows:
the Information Systems Committee, responsible for ensuring that information systems are managed properly, and for recommending and
monitoring developments to be implemented in order to ensure effi cient oversight and optimal understanding of the business;
the Invoicing Committee, in charge of examining the invoicing cycles and analyzing and validating the various components of the Group’s revenues;
It is also responsible for ensuring that any fraud or embezzlement is detected and does not have a signifi cant impact on the fi nancial statements;
the Debt Recovery Committee, which monitors receivables and collection procedures in order to ensure that adequate provisions are set aside to
cover any risks of non-recovery;
the Cash Management Committee, which sets the framework for the Group’s debt management policy, particularly concerning liquidity, interest
rate and currency risks, as well as counterparty risks that may arise on future fi nancial transactions;
the Operators Committee, which examines purchases from operators in order to assess whether proper internal controls are in place in terms of
approvals and accounting treatment. It also examines the Group’s main claims, litigation and commitments in this area, to ensure that there are
adequate provisions to cover the related risks;
the Audiovisual Committee, which analyzes the performance of the Group’s audiovisual operations and related marketing campaigns. It verifi es that
business performance is effectively monitored and that the terms and conditions of contracts entered into with content providers, service suppliers
and subscribers are respected;
the Fiber Committee, tasked with ensuring the effective application of the Group’s strategy for acquiring premises to house optical nodes (ONs),
for the “horizontal” and “vertical” rollouts of the FTTH network, and for connecting subscribers to the network;
the Mobile Committee, headed by the Chief Executive Offi cer, in charge of monitoring the progress of the rollout of the Group’s network, ongoing
negotiations with suppliers, and the levels of fi nancial commitments;
the Manufacturing/Freebox Committee, in charge of analyzing production plans, manufacturing costs and the main manufacturing risks (costs,
leadtimes and quality). It verifi es that production cycles are effectively managed and that all necessary measures are taken to meet the Group’s
targets;
the Accounting Committee, which sets the framework for the Group’s accounts closing procedures and ensures that they are formally documented.
It examines the fi nancial statements and checks that accounting standards are properly applied and adequate provisions set aside to cover any
risks. It also verifi es that the fi nancial statements give a true and fair view of the Group in accordance with the applicable accounting principles.
Lastly, it schedules pre-closes, carries out reviews of the accounts and ensures that fi nancial data is effectively shared, which helps strengthen the
fi nancial control function.
16.4 INTERNAL CONTROL
16.4.1 REPORT ON THE CONDITIONS GOVERNING THE PREPARATION AND ORGANIZATION
OF THE WORK OF THE BOARD OF DIRECTORS AND INTERNAL CONTROL PROCEDURES
The report prepared by the Chairman of the Board of Directors on the conditions governing the preparation and organization of the work of the Board
of Directors and internal control and risk management procedures put in place by Iliad, in accordance with article L. 225-37 of the French Commercial
Code is presented in Appendix A of this registration document.
This report provides that the Group’s internal control procedures and principles are in line with a corporate governance that complies with the AMF’s
reference framework on internal control systems.
16.4.2 STATUTORY AUDITORS’ REPORT ON THE REPORT PREPARED BY THE CHAIRMAN
OF THE BOARD OF DIRECTORS ON INTERNAL CONTROL
The Statutory Auditors’ report on the report prepared by the Chairman of the Board of Directors on the conditions governing the preparation and
organization of the work of the Board of Directors and internal control and risk management procedures is presented in Appendix B of this registration
document.
104 - Registration document 2010