Support Build Plan - Dimension Data

corporate governance report
Treasury Committee
Jeremy Ord
Malcolm Rutherford
Patrick Quarmby
Dorian Wharton-Hood
The Treasury Committee is responsible for
the control of a prudent framework
covering Board policies, best practice,
internal controls and reporting systems for
the management of treasury risks within
the Group’s operation. Scott Gibson, the
Group Executive Finance, and John
Cookson, the Group Treasurer, also sit on
this committee.
Communication with Shareholders
The Group is committed to honest, open
and regular communication to all
stakeholders on both financial and nonfinancial
matters.
The Group reports formally to
shareholders when half and full year
results are announced and issued to the
relevant stock exchanges, shareholders
and media. Executive and senior
management also give presentations to
institutional investors, analysts and the
media over the results period.
Regular stakeholder meetings are held to
update the market on the Group’s
strategies, operations and performance.
Executive and senior management attend
these meetings on a regular basis. All
briefings and meetings are conducted in
line with the Group’s written guidelines to
ensure control over price-sensitive
information and equality of disclosure. In
addition, directors are kept informed of the
views of all stakeholders through regular
briefings from the investor relations team
and Executive Chairman.
36 DIMENSION DATA
Shareholders are invited to attend the
Annual General Meeting and to pose
questions to the Board. All executive and
non-executive directors are expected to
attend this meeting.
Financial and other information about the
Group is contained on its website,
www.didata.com. A copy of the Group’s
annual report is sent to stakeholders and
is posted on a dedicated website,
www.ddar.com.
Internal Control
The Board has overall responsibility for the
Group’s internal controls and for reviewing
their effectiveness. The system of internal
control is designed to manage rather than
eliminate risk to which the Group is
exposed and provides reasonable rather
than absolute assurance against material
misstatement or loss. The main features of
the Group’s system of internal control are
described below.
External audit, internal audit, a value-add
audit function and risk management report
to the Audit Committee. The aim of the
value-add audit is to identify specific areas
where systems can be put in place to
improve controls and enhance
performance and productivity. The reports
provided by these functions assist the
Audit Committee in evaluating and
reporting to the Board on the strategic,
operational and financial controls which
the Group has in place. The Board has
conducted a review of the effectiveness of
the Group’s system of internal controls for
the year and up to the date of approval of
the annual report and accounts.
Risk management
There is in place an ongoing risk
management process for evaluation of the
Group’s business risks and the
identification of controls to manage them.
Risk is assessed with reference to the
business objectives of the Group. Risks
identified by the global risk identification
and assessment programme are reviewed
and monitored, and emerging risks are
reported.
Management in each region are
responsible for monitoring and controlling
risk on an ongoing basis, and for reporting
to the Board any factors which will impact
on the achievement of their business
objectives. A Group Risk Manager has
been appointed from November 2003 to
coordinate and monitor regional activity.
The key business, financial, operational
and compliance risks facing the Group are
reported to the Audit Committee, and
reviewed by the Board. The Board has
formally reviewed this process twice
during the year.
Financial reporting
A comprehensive budgeting process takes
place annually throughout the Group,
culminating in regional budgets that are
reviewed and approved by the Board. The
Chief Financial Officer is responsible for
determining financial policy within the
Group and the Group Chief Operating
Officer is responsible for executing these
financial policies and ensuring compliance
with Group strategy. The Group Chief
Operating Officer is also responsible for
establishing the integrity of forecast data
upon which executive decisions are
based.
Each Group operation reports its activity,
turnover, cash position and forecasts
weekly to the Group executive. Actual
results and cashflows are reviewed
monthly, compared with budget, and