ANNUAL REPORT ARCELOR 2003 - paperJam

3.3. Internal control procedures governingthe preparation and processing ofaccounting and financial informationThe consolidated quarterly financial information is producedby the Accounting Department on the basis of a generalcalendar that takes into account the requirements of themarkets on which the Group is listed (target date) andthe process of internal validation and approval within theGroup (Management Board, Audit Committee, Board ofDirectors, General Meeting of shareholders).The tracking and processing of the accounting informationcollected from the consolidated entities is organised onthe basis of a division of labour between the local entitiesthat are responsible for the reporting package, includingall restatements to ensure conformity with the Group’saccounting standards, and the Accounting Departmentwhich handles the review and ensures that all informationis included in the consolidated accounts.In this respect, since mid-2003 the local entities haveattested to their assumption of responsibility in respectof the completion of the reporting packages for eachquarterly closing in compliance with the Group’s accountingguidelines and procedures by means of a letter ofdeclaration sent to the Senior Executive Vice-PresidentFinance.The Group has chosen a single, centralised informationsystem that is common to all accounting and managementcontrol departments for the preparation of the consolidatedquarterly information and the monthly reporting indicators.This software package is used by most large Europeangroups. It allows for integrated, standardised, securedand totally automated data reporting and processing.The consolidated quarterly reporting is prepared withina consistent procedural framework that includes thereference documents made available throughout theGroup (GRCM – the Reporting and ConsolidationManual detailing all of the Group’s accounting andvaluation rules; the Information System User’s Manual)and annual training programmes designed for the localentities.To complement this general process, the ManagementBoard decided in 2003 to set up a Group AccountingCompliance team located within the AccountingDepartment, whose objective is to define and developa standardised, secure accounting environment for theconsolidated financial statements. To this end, the GroupAccounting Compliance team has established a networkof expertise (local experts) whose role is to roll outthe communication and application of the accountingpolicies adopted by the Group. This network will be infull operation by 2004.The Accounting Department cooperates fully, in all itsfunctions, with the many other internal departments.Some work is recurring as part of periodic crossreporting (with the departments of Management Control,Taxation, Legal, Treasury and Human Resources) orperiodic based on current projects, for example with theMergers and Acquisitions Department.The Group’s consolidated financial statements aresubject to a six-monthly review by the outside auditorsin compliance with Luxembourg law and market regulationsin force in the countries where Arcelor is listedfor trading.30ANNUAL REPORT ARCELOR 2003