Annual Report 2006 - Euromaint

Board report into internal control regarding
financial reporting for the 2006 financial year
under the annual accounts act and Swedish Code of Corporate Governance, the Board of Directors is responsible
for internal control. This report has been prepared in accordance with sections 3.7.2 and 3.7.3 of the Swedish Code of
Corporate Governance and is thereby restricted to internal control with regard to financial reporting.
Control environment
The Board mainly exercises its control by drawing up policy documents
and instructions for the President, along with the business plan and
budget.
The control is governed by the organisation, decision paths and
a decision-making process which is documented and communicated
in steering documents such as policies, guidelines and manuals,
including the allocation of work between the Board and President,
instructions for authorisation rights, as well as auditing and reporting
instructions.
Risk assessment
EuroMaint has a structured process for risk assessment and risk
management in order to identify and ensure that the risks EuroMaint
is exposed to are handled within set frameworks.
Control activity
The Audit Committee assesses the internal control and reports to the
Board. The auditors report their observations regarding the audit at
the Board meeting which deals with the annual accounts.
Each Board meeting monitors financial development against budget,
and checks that the development of decided investments and sales is
following set plans. The President reports any major deviations to the
Board. The Group uses the Movex business system and Jeeves.
EuroMaint has chosen to outsource all management of operating
issues to Siemens and to handle system development itself. EuroMaint
Industry is to be phased into the established concept.
Two Executive vice Presidents
The company has two Executive Vice Presidents. One is responsible for
satisfactory internal control procedures, ensuring that the company’s
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control processes have been implemented and that any risk exposure
is reported. The company has procedures for monitoring internal
control.
The other Executive Vice President is responsible for developing
business plans and business strategies. The company has introduced
information and communication paths with the aim of promoting
completeness and accuracy in financial reporting.
EuroMaint produces annual reports, interim reports and other
ongoing information in accordance with legal requirements and
accepted practice in Sweden. The reports are published on the
company’s own website and are distributed to owners and other
stakeholders who have registered an interest in receiving this information.
Reports and press releases are available on the company’s website
www.euromaint.se
Information on policies, instructions and manuals regarding financial
reporting is provided to the relevant personnel.
Follow-up
Each Board meeting monitors financial development against budget,
and checks that the development of decided investments is following
set plans.
If there are major deviations from the budget and the decided
investments are deemed more costly, the President reports to the
Board.
The company prepares monthly accounts, including a budget
comparison, where all significant differences are analysed. Forecasts
are drawn up three times a year and an annual budget is prepared.
EuroMaint has no internal audit, instead the internal control is
scrutinised by the company’s external auditors on an ongoing basis.