The financial control procedures are described under the following five headings:
1. Financial reporting – The Group has a comprehensive system for reporting financial results to the Board; each trading company prepares monthly results with a comparison against budget. The Board reviews these for the Group as a whole and determines appropriate action. Towards the end of each financial year the operating units prepare detailed budgets for the following year. Budgets and plans are reviewed and necessary changes made by the Board before being adopted formally.
2. Quality and integrity of personnel – One of the Group’s core values is integrity; this is regarded as vital to the maintenance of the Group’s system of internal financial control and is reflected in the quality and experience of the Group’s financial staff.
3. Operating unit financial controls – Key controls over major business risks include reviews against performance indicators and exception reporting. The trading companies regularly assess their exposure to major business risks and appropriate action is taken both at operating and Group level in order to ensure that risk is minimised as far as possible.
4. Computer systems – The Group’s financial and management information is processed by and stored on data systems. Accordingly, the Group has established controls and procedures over the security of data held on computer systems. The Group has put in place arrangements for computer processing to continue and data to be retained in the event of complete failure of any system.
5. Controls over central functions – A number of the Group’s key functions, including treasury, taxation, acquisitions and insurance are dealt with centrally. Each of these functions has clear and detailed procedures and is required to report to the Board on a regular basis; the treasury details are reported daily to the Finance Director.
