Akademiska Hus Annual Report

GovernanceAn important channel for the Group’s communication is the intranet.This includes:• Directives and guidelines for areas such as property valuationfinancing.• Liability and authorisation procedures.• Attestation instructions.• Organisation of the accounting functions.• Reporting and accounting instructions.• Time schedules for reporting and the audit.Within the Group employees meet regularly within the establishedprocesses at network meetings in order to develop a common groupview on different issues. Systems and routines are in place to providethe Board and the Executive Management with reports in relation toestablished objectives. The financial reporting takes place through acommon group reporting system with a common group reportingpackage used by all units. All reporting units use the same accountingplan/code plan and the same accounting system.Follow-upOngoing follow-up takes place to ensure that internal control isappropriate and effective based on established policies, directivesand guidelines. Shortcomings in the system must be reported to animmediate superior.At each Board meeting the Board receives financial informationand an analysis as well as a report from the most recent meetings ofthe different committees. The financial reports are followed up quarterlyand with a year-end report.The Audit Committee follows up audit matters and more extensivematters of principle with regard to financial reporting, includingproperty valuation.The Group Management handles result follow-up through areporting system, which includes a budget, past results, key figures,deviations, textual comments etc.The Akademiska Hus Group has a common finance and humanresource unit. This unit, which has mainly transaction-intensiveduties, acts as a control function in relation to regional core operationsas it is organisationally separate.In addition to internal controls, recommendations by the auditorsare taken into account. These recommendations are followedup and action is taken.The follow-up of processes and quality is an internal process atAkademiska Hus.Income statementItemRisksControl structure –directives etc.Control structure –process supportControl structure –system supportRental income– Renewal structure– All rental income is not debited– Correct rental income is not debited– Process description of the leasingprocess– Process description of the sales ledger/debitingof rent– System controls in therent systemOperating costs– Guideline for electricitytrading– Process description, electricity trading– Organisationally separate back-officefunction– Energy follow-upsystemChanges in value,investment properties– Incorrectly calculated marketvalues– Property valuationdirective– Valuation manual and processdescription produced. Delimitationbetween what is an asset and what isto be expensed– Reconciliation of thefixed assets register– Standardised systemsupportNet financial items– Interest risk– Refinancing risk– Credit and counterparty risk– Financing directive– Guideline for the backofficefunction– Process description, financing– Organisationally separate back-officefunction– Reconciliation in thefinance system– Currency riskBalance SheetItemRisksControl structure –directives etc.Control structure –process supportControl structure –system supportInvestment properties– Assurance that all investmentproperties are reported– Assurance of correct valuation– Property valuationdirective– Valuation manual and processdescription produced. Delimitationbetween what is an asset and whatis to be expensed– Reconciliation of thefixed assets register– Standardised systemsupportInterest-bearingliabilities– Interest risk– Refinancing risk– Credit and counterparty risk– Financing directive– Guideline for the backofficefunction– Process description, financing– Organisationally separate back-officefunction– Reconciliation in thefinance system– Currency risk70 Akademiska Hus Annual Report 2007 | Group corporate governance report