sain t-gobain annu al report 2008 annual report

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being applied. The TAS framework document dated November
29, 2006 describes the background to the TAS, its objectives
and how its application guides and dedicated tools should be
used. Since the pilot crystalline silica project, three new TAS
application guides have been published concerning:
construction, renovation and maintenance of melting
furnaces, the handling of nanomaterials at the Research
and Development centers (updated in 2008) and the use
of fibrous materials.
The standard dealing with the implementation
of a broad-based approach to assessing industrial risks covers
the identification, measurement and prioritization of potential
health and safety risks at Group sites, in order to set priorities
and develop action plans for reducing and controlling
those risks.
The accident analysis standard defines the required
characteristics of any methods used by the Group
to analyze the causes of accidents.
Lastly, in 2008, four safety standards were prepared dealing
with work at height, the management of outside contractors
working on-site, permits to work and lockout/tagout
procedures. These standards have been deployed since January
2009.
Information systems security
The Information Systems Department has compiled a set
of rules and best practices concerning information systems
and networks, comprising general principles and technical
standards that are updated from time to time to keep pace
with technological advances.
The department leads and coordinates twice-yearly
self-assessment exercises in these areas, supported by
a reporting system that provides a basis for measuring
the advances made by the various units and initiating any
necessary action. The self-assessment covers the 130 control
points provided for in ISO 27002. The 2008 exercise covered
713 units. The self-assessment is also used to fill
out the Information Systems section of the general internal
control questionnaire, thereby ensuring that action plans
are fully aligned.
Organization of internal control and risk
management processes related to the preparation
and processing of financing and accounting
information for shareholders
Parent company financial statements
The Accounting Department is responsible for producing
financial information for shareholders, partners and other
third parties in accordance with French legal requirements.
This information is prepared in accordance with generally
accepted accounting principles, including the going concern
principle, the principles of consistent application of accounting
policies, alignment of the opening balance sheet with the prior
period closing balance sheet, recognition of expenses
in the same period as the revenue to which they relate,
segregation of accounting periods and substance over form.
Accounting organization
The accounting organization is based on the rules, methods
and procedures set out in the Group’s doctrine briefs.
It facilitates the monthly reconciliation and substantiation
of the accounts and the creation of an audit trail. It is also
geared to anticipating material events, in order to apply
the most appropriate accounting treatment in each case and,
where possible, detecting potential problems before
they occur.
The chart of accounts is aligned with the company’s needs
in terms of transaction classifications and complies
with the materiality principle. It is linked to the Group’s
financial information system.
Internal control
In addition to performing controls over compliance
with payment procedures and the double signature rule
for secure payment media, the Accounting Department
contributes to internal control through a cost accounting
system that tracks expenses by cost center. Cost center
managers receive monthly schedules listing the expenses
incurred under their signature, allowing them to check
these expenses and also to compare actual and year-to-date
expenses with the budget.
A summary of these cost accounting reports is sent
to the Finance Department and Group senior management
at the end of each month.
Consolidated financial statements
The consolidated financial statements are prepared
by the Consolidation and Group Reporting Department.
This department is responsible for updating consolidation
procedures, training and integrating subsidiaries in the scope
of consolidation, processing information, and maintaining
and developing consolidation systems for the Group
and all the Sectors.
Saint-Gobain - 2008 Annual Report