REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

16. FUNCTIONING OF THE COMPANY’S ADMINISTRATIVE AND MANAGEMENT BODIES
16.4 INTERNAL CONTROL
Security
The Group has set up procedures to guarantee the security and physical integrity of its network.
Control procedures relating to financial communication
The Company is required to keep its shareholders, the financial community and the general public informed
about its financial position.
All financial information, including press releases, management reports, and financial statements, is drawn up by
the Finance Department and is reviewed by Senior Management, including the Chairman of the Board of
Directors, the Chief Executive Officer, the Senior Vice-Presidents and the Legal Department. In addition, this
information is regularly submitted to the Company’s directors for approval.
In order to restrict the risks relating to erroneous or contradictory information, an internal procedure is used
whereby the Group’s press officer centralizes all strategic, commercial, financial and technical data that is
released outside the Group. The information is supplied directly by Management to the press officer.
Furthermore, in accordance with the aforementioned procedure, the press officer attends any and all interviews in
order to ensure that the information relayed is consistent.
16.4.1.3 Financial information
The following procedures have been set up to implement controls over the Group’s financial management and
ensure that the accounting data provided is correct.
(i) Budgetary process
Each year, the Finance Department – assisted by management accounting control – draws up a forecast business
model for the Group, based on the Group’s strategic decisions, and approved by Management.
The assumptions used for the budgetary process are updated quarterly.
The budget and quarterly reviews are split out into monthly calculations in order to provide a framework for the
Group’s reporting procedures.
Each Group subsidiary uses the same budgetary process.
(ii) Monthly reporting process
A monthly reporting schedule is drawn up by the Group’s financial units. During 2007, management accounting
control tracked the Group’s purchases and investments, notably those relating to the components used in the
Freebox modem. The reports of the management accounting controller are transmitted to the Finance Department
and incorporated into the overall reporting schedule, which contains key data for monitoring the Group’s
operations and results. This process forms one of the cornerstones of the internal control and financial
information system, and it is the key tool used by Management for tracking, controlling and monitoring the
Group’s business activity.
The Board of Directors is informed of the latest available indicators during its meetings.
(iii) Accounts-closing process
The Group’s Finance Department performs a quarterly close for each Group company.
The Group’s organization structure, based on a single Finance Department for all of the Group’s companies and
the use of a common accounting manual, enables consistent use of accounting policies and methods.
In addition, the Group’s Finance Department tasks an external certified public accountant with reviewing the
statutory accounts of each entity on at least a quarterly basis.
Quarterly consolidated financial data are presented to the Board of Directors.
98 - Iliad – Registration Document 2007