Authorizations & Roles

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Author(s)

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Verification

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Approval

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Angela Fernandes
Joao Matos Machado
RtR I&D
Hugo Vinagre
RtR I&D Team Leader

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Cátia Pinto
RtR SC Transv. Project & Optimization

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Michel Berger
Process Expert WW
Invest & Divest

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18/08/2017

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18/08/2017

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18/08/2017

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Objective and Scope

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Objective of this Procedure

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Application Application

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The purpose of this document is to describe the actions needed to correctly apply the Internal Control FXA.01.02  – Divestment for each maintenance shutdown

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Scope

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Definitions Definitions

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This operating procedure (OP) applies to PF1 PF2 and WP1 WP2 within the Solvay Syensqo Business Services scope of entities.

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Abbreviations

 (N/A)

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Definitions

The process to assuring achievement of an organization's objectives in operational effectiveness and efficiency, which aim is to ensure the compliance with laws, regulations and Group policies and procedures.
The internal control under I&D Team responsibility are:

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Investment / Divestment

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Modification in the assets books (RtR.I&D.01.01)
Anchorh.35nkun2h.35nkun2 The Capitalizations/Divestments above 50k need to be tracked

• Minimum frequency:  At each change/until D-3 of each month
• Control owner function: Rhodia legacy: Each Service Center Team of I&D

EMEA: Lisbon
NAM and LAM: Curitiba
APAC: Bangkok
Solvay legacy: Technical controllers

• Application level: Group - All assets (tangible & intangible) - Period of controls: each Month.

 

• Process description:  SBS RTR I&D Service Center establish a list of all assets above 50 KEUR put into service and commissioned, which should match with project manager requests.

 

• Control description:  Service Centre or technical controllers (depending on which legacy we are dealing) need a proof of authorization from project managers to make modifications > 50k€ to the assets register (creation or deletion).

 

• Risk description:

Misstatement of financial reporting (including non-compliance to IFRS rules): financial statements do not reflect the true value of the company's assets.
Fraud

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Each investment/divestment > 50 KEUR should have a proof of authorization from project managers.
The control can be performed by extracting the information from the system and then checking if there is any proof for each investment/divestment above 50 K Eur.
In WP1 system:
You can use transaction S_ALR_87011990 - Asset History Sheet with following data:
• Company code: All scope
• Asset number: "2*", as the results should only include capitalized fixed assets;
• Report date: Last day of the month of the report;
• Depreciation Area: Group (50 for PF1 companies, 15 for WP1 companies); • Sort variant: ZBFC;
• List assets;
SAP result
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Then you can extract the report to Excel and you will get the following screen:
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The proof of authorization is archived in the tickting tool.
The link between ticketing tool and the fixed asset is the case number.
You can see the case number using transaction Z1A_ASSET_NOTE - Asset Master Data Attachment Note
• Company code: All scope
• Asset number: "2*", as the results should only include capitalized fixed assets;
• Created on: You can put the period what you are analysing
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This transaction will give you in Note title the case number in each asset Image Removed
You can also extrat this list to excel and do a VLOOKUP in order to get the case number into your report by fixed asset.
And you can do a report resume with Pivot Table.
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Investments: F20 Increase + F34 Brought into Service
Dinvestment: F30 Decrease + F33 Out of service
This internal control is also describded in Operational Procedure SBS-OP-DRTR-09-002 Capitalizations -RCS

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Major Repairs

Divestment for each maintenance shutdown (RtRIFA.I&D.01.02)
The aim of major maintenance work is to verify that the asset is being kept in good condition without modifying its life. The costs shouls should be recognized as major maintenance costs. These costs should be considered as a capitalized component if: - They belong to a multi-annual recurring major maintenance operation,- Total costs reach a minimum threshold of 500 kEUR.
Every quarter this process should be performed in order to identify the fixed-asset for Major Repair which should to be removed.

• Minimum frequency: At each quarterly
• Control owner function: Both legacies: Each Service Center Team of I&D

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•  Service Center Management Accounting Service Unit

• Application level: Group - All assets (tangible & intangible) - Period of controls: each quarterly.

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• Control description:  Service Centre extracts,   SU MAC extracts before the 15th of each quarterly , closing month the list of shutdowns (based on asset class) capitalized and checks for each case that a divestment was booked concerning the previous shutdown. If it is not the case, Service Centre SU MAC alerts the SBS RtR SU MAC I&D regional manager Key User who will take corrective actions.

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• Risk description:

Misstatement of financial reporting (including non-compliance to IFRS rules): financial statements do not reflect the true value of the company's assets

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Process:

Go to AR01
Using variant: /I.D MAJOR RD MAJOR R(WP2)   ,  /MAJOR REPAIR(PF2)
You will obtain the following screen

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In this case:
Company code : ZFR9
Plant: 7866
CC: 7866-1201
We can see that we have two situation where the fixed assets have the same description.
In yellow we can see cases where are potencial potential major repairs.
The project manager received our reports (by plant) and decides if they should be removed from the company.



End of document