Internal control
Fasadgruppen’s work with internal governance and control aims to ensure that the financial reporting
is appropriate, correct and reliable and in accordance with applicable laws and regulations.
Control environment
The control environment constitutes the basis for internal governance and control with regard to financial reporting. It is defined via policies, instructions and guidelines and is maintained with the help of Fasadgruppen’s organisational structure, with clear responsibilities and powers based on common values. Fasadgruppen’s Board has established clear processes and rules of procedure for its work and the division of work between the Board of Directors and the CEO. The Board has established an Audit Committee for financial reporting. Fasadgruppen’s most important financial policy documents include an investment policy, finance policy, attestation instructions, information and insider policy, policy for risk management and internal control, financial handbook and corporate governance policy.
Risk assessment
Fasadgruppen performs an annual risk analysis with the aim of ensuring correct and reliable financial reporting and accounting in accordance with applicable laws, regulations and accounting standards. The risk analysis is performed as part of business planning in order to obtain an overall risk assessment where the purpose is to identify, evaluate and manage risks that threaten the Group’s business concept, vision and goals. Fasadgruppen bases this on the definition of risk as ‘A possible future event that threatens the organisation’s ability to achieve its vision and long-term goals’. The risk assessment is performed within the following risk categories:
- External risks
- Operational risks
- Financial risks
The Auditors’ observations from the management audit and elsewhere are also taken into account. The identified risks are assessed based on:
- Impact on business concept, vision and goals
- Likelihood of the risk occurring during the plan period
- Effectiveness of existing controls
The risk assessment includes identifying risks that may arise if the basic requirements for financial reporting (completeness, accuracy, valuation and reporting) in the Group are not met, as well as the risk of loss or misappropriation of assets. For identified critical risks, the processes and associated internal controls are reviewed in order to minimise the risk. The CEO reports identified risks to the Audit Committee and the Board of Directors, who make decisions about which risks are most material to take into account in order to ensure good internal control within financial reporting.
Examples of areas that are considered most material to focus on are assumptions linked to the percentage of completion method within project accounting, the accounting of acquisitions and the valuation of goodwill and brands.
Control activities
Fasadgruppen has established a number of control activities for each main process for whatever must be established and function in the risk management work. The activities are an important tool that enables the Board of Directors to manage and evaluate information from the Company Management, ensure the effectiveness of the Group’s processes and take responsibility for identified risks. Examples include transaction-related checks linked to authorisation and investments, payment routines and account reconciliation. The follow-up of results functions as an important complement to the controls implemented in the financial processes.
Assessment and reporting
Fasadgruppen has a Group-wide monitoring process through which operations and functions follow up the control activities and report back on the status. A selfevaluation of the effectiveness of internal control is to be performed annually for all processes. The CEO is responsible for presenting the results to the Audit Committee and the Board of Directors.
Information and communication
Fasadgruppen’s communication must be long-term and compatible with the Group’s brand, vision, business concept, strategies, goals and values. The information must be accurate, relevant and clear in accordance with applicable laws and regulations. In order to promote complete and correct disclosure of information in its financial reporting, Fasadgruppen has an information and insider policy adopted by the Board of Directors which, among other things, contains guidelines for handling insider information and other external information obligations. All governing documents are available via Fasadgruppen’s intranet.
