The Board of Directors has appointed, pursuant to Art. 24 of the Bylaws and Art. 154 bis of Italian Legislative Decree 568/1998, up to expiry of the mandate and therefore up to approval of the financial statements as at 31 December 2017, the Group Head of Finance, Procurement and IT Systems as the Manager in charge of financial reporting, simultaneously assigning all necessary powers, even in terms of expenditures, in order to carry out the relative functions.

Operational framework of the Manager in charge of financial reporting

In the performance of his duties, the Manager in charge of financial reporting implemented and coordinated a series of organisational and operational measures aimed at meeting the requirements of the regulations in force.
Specifically, one of the most significant measures taken was the establishment of a Standard Operational Framework within the Group. This is modelled on the “Internal Control Framework” developed by the Committee of Sponsoring Organisations of the Treadway Commission, which is the most widely-adopted standard in the world for internal control systems.

The framework’s objective is to ensure reliability in financial reporting, achieved by identifying a series of controls to be implemented during accounting and administrative procedures, and in particular during the preparation of the separate financial statements, the consolidated financial statements, the semi-annual financial report and any kind of financial report in general.

The framework also regulates the methods used to monitor the adequacy of accounting and administrative procedures, as well as the checks in place to verify that these procedures are actually being implemented.

Role of the Board of Directors

With the support of the Control and Risks Committee, the Board of Directors ensures that the powers and resources granted to the Manager in charge of financial reporting are appropriate to his task, and that accounting and administrative procedures are respected in practice.

Specifically, the Board has:

  • formalised a set of rules for the manager in charge of financial reporting, which establish procedural and organisational terms for the following:
    • roles and functions of the manager in charge of financial reporting, which are to be exercised in relation to the tasks and responsibilities legally assigned to him. Specifically, the powers granted to him by the Board of Directors are broken down into specific categories, namely spending power, use of internal resources and use of corporate functions. Particular reference is made to administrative processes and group administration and accounts for all work related to the designing, implementation and monitoring of accounting procedures, and to Internal Audit for what concerns the checks in place to ensure that those same procedures are being implemented correctly;
    • the main information flows, and how to coordinate the respective activities of the manager in charge of financial reporting, the Board of Directors, the Board of Statutory Auditors and the various corporate functions.
  • verified the operational framework, which regulates the methods used to monitor the adequacy of accounting and administrative procedures, as well as the checks in place to verify that these procedures are actually being implemented.