A hundred-year balance Annual Report 2010 - Uzin Utz AG

Internal control and risk management system
with regard to the financial reporting process
A major component for the avoidance of risks, particularly
in accounting and financial reporting, is the internal
control system. This provides the following features:
» In the Uzin Utz Group, the management and company
structures are clearly defined. Department-wide key
functions are controlled centrally by Uzin Utz AG, although
the individual subsidiary companies retain a high
degree of independence.
» The main functions in the financial reporting process
– book-keeping, finance and accounting and controlling
– are clearly separated. Areas of responsibility are clearly
assigned.
» An adequate system of guidelines is in place (e.g.
Group balance sheet guidelines, travelling expenses guidelines
etc.), and is continually updated.
» The financial systems used are protected as far as
possible against unauthorised access by corresponding
authorisation procedures and access restrictions.
» The financial systems used are based essentially on
the SAP standard. The application programme Excel from
the MS Office suite is used for presentation and further
evaluations.
» Received or transmitted accounting data are continually
checked for completeness and accuracy. Programmed
plausibility checks are carried out by the software
used.
» The control system with regard to the financial reporting
process is designed so as to ensure prompt and
correct accounting of all business processes and transactions.
Changes in legislation, financial reporting standards
and other official requirements are continually analysed
with regard to their relevance and effects on the
group financial statements, and the resulting changes
reflected in the internal Group guidelines and systems.
The control of the group financial reporting process at
Uzin Utz AG is carried out by the central department of
Group Controlling.
» The group companies compile their financial statements
locally and forward them using a data model which
is defined in standard form throughout the Group. The
group companies are responsible for the observation of
the Group guidelines and procedures, and the correct
and timely operation of their financial reporting processes
and systems. The local companies are supported
in the complete financial reporting process by central
contact partners. The consolidated accounts are compiled
centrally on the basis of the data of the subsidiary
companies included in the consolidation group. During
this process, manual checks are continually carried out
by Group Controlling in order to ensure the plausibility
of the forwarded and the consolidated data.
» Internal Audit regularly checks business processes of
both the subsidiary companies and central departments
for correctness, efficiency and security. Internal Audit
reports as an independent body direct to the Board.
» The objective of our risk management system and
our internal control system is to ensure the effectiveness
of business activity and compliance with the relevant
legal regulations.
56