ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
information and communication<br />
<strong>DONG</strong> <strong>Energy</strong>’s information and communication system is<br />
designed to ensure timely and reliable information on operational,<br />
financial and compliance-related matters. The information<br />
and communication system is also designed to enable<br />
timely communication across the entire organisation.<br />
The information and communication system relating to the<br />
financial reporting includes:<br />
• financial management systems<br />
• consolidation system<br />
• system for reporting on internal controls<br />
• fixed meeting structures<br />
• various internal networks<br />
To ensure that the reporting for the consolidated financial<br />
statements is carried out on a uniform basis and is of a<br />
high quality, a financial reporting manual, reporting instructions,<br />
guidelines for the performance of internal controls,<br />
etc., have been prepared that are available to relevant<br />
employees. Changes to these and focus areas are communicated<br />
on a continuous basis via conferences, meetings<br />
with the business areas and via a number of internal networks.<br />
For example, a finance network, an accounting network,<br />
a network for internal control, etc., have been set up.<br />
monitoring<br />
The monthly financial reporting from the business areas is<br />
analysed and monitored by the business areas’ controllers<br />
and management. The business areas’ reporting and the<br />
overall consolidated financial statements are controlled at<br />
corporate level.<br />
To ensure that the internal control and risk management<br />
system is firmly embedded in the business areas, and<br />
to strengthen the reporting process on internal control and<br />
the monitoring of same, <strong>DONG</strong> <strong>Energy</strong> implemented an IT-<br />
based reporting system on internal controls in <strong>2011</strong>. The<br />
business areas’ control catalogues have been incorporated<br />
in the system, and reporting on internal control performed<br />
is now taken care of directly in the reporting system by the<br />
controller performing the control. The persons responsible<br />
in the business areas monitor the performance of internal<br />
control in the system and, on a quarterly basis, report a<br />
conclusion in summary form on the internal control performed<br />
supplemented by any action plans for identified<br />
weaknesses. The results of the internal control performed<br />
are consolidated in the reporting system and reported to<br />
the Audit and Risk Committee. The reporting forms an important<br />
part of the Board of Directors’ monitoring of the internal<br />
control and risk management system.<br />
<strong>DONG</strong> <strong>Energy</strong> has not established internal auditing, but<br />
has set up the Group Risk Control function, which reports<br />
to the Audit and Risk Committee. Group Risk Control has<br />
11 employees and carries out a series of investigations and<br />
tests, particularly within the financial area and IT use.<br />
Group Risk Control plans the year’s investigations in collaboration<br />
with the Audit and Risk Committee and the external<br />
auditor and reports the results of the investigations<br />
carried out to the Executive Board and the Committee.<br />
the future<br />
Internal control and risk management is a continuous process<br />
that is continually developed and improved so that it<br />
meets the requirements of a growth company at all times.<br />
<strong>DONG</strong> <strong>Energy</strong> will therefore continue to focus on improving<br />
its internal control and risk management systems and its<br />
reporting on same. In 2012, <strong>DONG</strong> <strong>Energy</strong> will focus especially<br />
on aligning its internal controls to the updated COSO<br />
framework and on continuing its efforts to identify risks<br />
and determine internal controls relating to IT applications.<br />
28 of the Group’s companies are<br />
included in the reporting process for<br />
internal control. Based on the internal<br />
controls identified, they represent 86%<br />
of revenue and 66% of assets.<br />
<strong>DONG</strong> ENERGY <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2011</strong> – manaGEmEnt’s rEviEw 55