ANNUAL REPORT 2011 - DONG Energy

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