Download the 2009 annual report in PDF format - ANF

108
INFORMATION ABOUT ANF
Reports and information for the Shareholders’ Meeting
At Coordination Committee level
A Coordination Committee was set up in June 2006 for each site,
each one headed up by its Chief Operating Offi cer. They are made
up of the key managers of the property staff in charge of each site.
They meet regularly, on average once a month, to address current
topics and ensure that Executive Board decisions are being
correctly implemented.
At department level
Real estate management procedures cover all aspects and are
largely based on computerised systems:
• recording leases (start and end dates, reviews, renewals and
transfers);
• issuing payment advice notices;
• payments, outstanding debts and reminders;
• maintenance costs, with annual offsetting of provisions against
actual costs;
• guarantee deposits (reviews, refunds to tenants upon departure
after fi nal inspection and checking of tenant account statements);
• maintenance or investment works.
Tasks are regularly monitored during the various phases described
above.
RISK MANAGEMENT PROCEDURES PUT IN PLACE
BY THE COMPANY
The main risks identifi ed appear in the “Risk Management, risk
factors and insurance” section of the Company’s 2009 Registration
Document.
In addition to risks of a cyclical nature (general economic situation,
the real estate cycle) which are limited by the diversity of the property
portfolio (residential, commercial, professional) and its geographical
distribution, there are essentially two major risks involved in the
property business which are covered by internal control procedures.
ANF seeks to ensure the quality and solvency of its tenants. Nonpayment
risk is managed by means of constant monitoring of
outstanding rents and payments received and by systematically
sending reminder letters after the fi rst missed payment (four days),
and then, if necessary, recourse to debt collection agencies if no
settlement can be reached on an amicable basis.
In addition, risk management in connection with the operation and
preservation of buildings (maintenance, renovation, compliance
with codes and standards, physical security) is ensured by close
attention to the legal obligations of property owners, by insurance
policies to cover losses and professional liability and by contractual
clauses obliging tenants to maintain the rental premises and keep
the landlord informed of any damage or incident.
With a view to legal compliance and to reducing property risk to
a minimum, the Company has taken measures to apply current
regulations.
ANF • 2009 ANNUAL REPORT
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Contents
ORGANISATION OF INTERNAL CONTROL WITH REGARD
TO PREPARATION AND TREATMENT OF FINANCIAL
AND ACCOUNTING INFORMATION
Administrative and accounts management is handled by a Finance
Manager who reports to the Chief Operating Offi cer, and who heads
up the administration and accounting departments. Each accounts
manager has the necessary autonomy to record and check day-today
transactions.
Particular attention is paid to preventing errors and fraud. The
Company has put various rules in place, in addition to its everyday
methods of control and verifi cation. These rules are based on the
general principle of dissociation of tasks, mainly at the level of placing
orders (for property maintenance and investment operations, for
instance), verifying, recording and issuing payments. Such rules
are independent of specifi c procedures relating to Company policy
decisions which cover matters such as the acquisition, construction,
operation, sale or arbitrage of assets.
With this in mind, the Company set up an internal audit process in
the fi rst quarter of 2007 to review and validate procedures at each
site on a periodic basis.
Prior to being submitted to the Executive Board, Audit Committee
and Supervisory Board, the annual and interim fi nancial statements
are double-checked and reviewed systematically by the Finance
department.
Once a month, the Strategic Committee reviews the report prepared
by the Finance department on the Company’s business activities, in
particular, to verify the effective performance of works and check for
any budget variances.
ORGANISATION OF INTERNAL CONTROL OF COMMITMENTS
UNDERTAKEN BY THE COMPANY
Control of Company commitments and delegations
of power – Control of expenditure – Bank signatures.
The Executive Board is invested with the most extensive authority
to act in all circumstances in the name, and on behalf of, the
Company, within the limits of the corporate purpose and subject to
the authority expressly conferred by law, the Articles of Association
and by the Supervisory Board.
No restriction of such authority is binding on third parties, as
concerns the commitments undertaken on its behalf by the
Chairman of the Executive Board or the Chief Operating Offi cer,
provided that their appointments were duly published.
Members of the Executive Board may, with the authorisation of the
Supervisory Board, divide management roles between them. Under
no circumstances, however, may this division relieve the Executive
Board of the obligation to meet and discuss the most pertinent
Company management issues, nor may it be invoked as grounds
for exemption from the joint and several liability of the Executive
Board and each of its members.
All contracts and working documents cannot only be signed
by the Chairman of the Executive Board or the Chief Operating
Offi cer. Consequently, specifi c procedures have been set up for
expenditure commitments (limit on amounts per person, regular
OTHER GENERAL INFORMATION PRO FORMA FINANCIAL INFORMATION ANNUAL FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS INFORMATION ABOUT ANF DESCRIPTION OF THE BUSINESS